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Committee advances resolution to extend time to evaluate AB27 redevelopment payment
Summary
The committee approved forwarding a resolution that gives the city an additional month to determine how to comply with AB27’s requirements and to calculate a remittance estimated at about $26 million to keep redevelopment activities; staff warned the payment and ongoing obligations could delay or reduce future housing projects and are subject to state calculation and pending litigation.
The Budget and Finance Committee voted to forward to the full Board a resolution giving the City and County of San Francisco additional time to evaluate the mechanics and funding for a remittance tied to Assembly Bill 27, which would allow certain redevelopment activities to continue.
Amy Lee, Deputy Executive Director of the Redevelopment Agency, described the resolution as a procedural item to buy the city up to one more month to assemble the exact remittance calculation and to coordinate with the Mayor’s Office and other stakeholders. Lee said the agency currently estimates the one-time payment at roughly $26 million but believes that amount could change after the Department of Finance issues its calculations on August 1 and the agency files appeals if appropriate.
Supervisors discussed the trade-offs: redevelopment financing can yield market advantages compared with other tools such as infrastructure financing districts, but a large remittance would require reprogramming housing funds and could push some projects into delay. Committee members also noted an active lawsuit brought by the League of Cities and the California Redevelopment Association challenging AB26 and AB27, which adds legal uncertainty to bond and financing decisions.
The resolution forwarded by the committee does not commit the city to any payment; it authorizes additional procedural time for the agency to return with a detailed plan, including potential sources for the remittance and the long-term fiscal impacts on housing and other projects.
What happens next: The Redevelopment Agency will return to the Board after receiving Department of Finance figures and completing a proposed funding plan; the Board will ultimately decide whether to make the remittance and whether to continue redevelopment activities under AB27.
