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Planning staff briefs commission on governor's proposed elimination of tax-increment financing, warns of local impacts
Summary
Staff told the commission that Governor Brown's budget proposed eliminating tax-increment financing for redevelopment agencies, a move staff warned would harm the city's ability to fund infrastructure and affordable housing; staff said no legislation yet and the mayor and redevelopment executive Fred Blackwell are exploring alternatives.
Planning department staff briefed the commission on a state-level budget proposal discussed by the governor that would eliminate tax-increment financing (TIF) as a funding mechanism for redevelopment agencies. Staff warned that removal of TIF, without a replacement funding mechanism, would significantly curtail the city's ability to finance infrastructure and affordable-housing projects in redevelopment areas.
Staff noted that the proposal was announced in the governor's budget address and that no specific legislation had yet been introduced; consequently many details remain unclear. The department pointed to local implications: in San Francisco redevelopment-area TIF historically subsidizes infrastructure and roughly half of redevelopment TIF has been used for affordable housing in redevelopment zones, and some projects and developer agreements could be disrupted if entitlements and grandfathering are not clarified.
Staff said Fred Blackwell at the Redevelopment Agency is examining options and working with the mayor's office and counterparts in other large California cities to identify alternatives that would preserve critical project funding. Commissioners asked technical questions about existing entitlements, possible grandfathering of projects not yet commenced, and the share of increment flowing back to the general fund versus redevelopment obligations. Staff said they will monitor developments and report back as legislation emerges.
Quote: "If that funding mechanism goes away and is not replaced, there would be a severe impact on the city's ability to do these projects," planning department staff told the commission.
Ending: Staff urged continued monitoring; commissioners asked to be kept apprised and staff committed to follow-up when legislative text becomes available.
