Redevelopment Successor Agency

The Redevelopment Agency of the City of Healdsburg, along with all 400 redevelopment agencies in California, was dissolved on February 1, 2012, by order of the California Supreme Court in a decision issued on December 29, 2011 (California Redevelopment Association et al. v. Ana Matosantos).

Staff from the former agency will be working closely with our elected officials and members of the Oversight Board to ensure as orderly a transition as possible that preserves as many projects and programs as possible. The assets and obligations of the former Redevelopment Agency will be disposed of in accordance with the provisions of the law. For more information contact Heather Ippoliti, Assistant City Manager, at 707-431-3319.

On June 28, 2011, the Governor approved 2 bills, AB 26 and AB 27, to amend the California Community Redevelopment Law which regulates the activities of redevelopment agencies. AB 26 was the dissolution bill, which set November 1 as the date to dissolve all redevelopment agencies. The companion legislation AB 27, the reinstatement bill, allowed cities to keep their agencies in place by committing to substantial community remittances to be paid to the State.

AB 26 put the agency into a state of suspension under which no new contracts, obligations or redevelopment plans could be approved. In July, a lawsuit was filed challenging the constitutionality of both AB 26 and AB 27. The Supreme Court accepted the case and issued a stay under which agencies remained in place but in the suspended state pending a decision by the court.

On December 29, 2011, the California Supreme Court issued its decision: it upheld AB 26, which eliminates redevelopment agencies, but struck down AB 27, which would have allowed cities to agree to community remittance payments to keep their agencies in place. As a result, under the schedule set by the Supreme Court, the Healdsburg Redevelopment Agency was dissolved as of February 1, 2012. AB 26 provides that the city may become the successor to the Redevelopment Agency, and continue to implement enforceable obligations which were in place prior to the suspension-existing contracts, bonds, leases, etc. - and take title to all of the Agency’s housing and other assets.

Successor Agency Legislation
The City of Healdsburg has elected to become successor to the Redevelopment Agency. Some of the requirements of the successor agency include:
  1. Acting as successor to the Redevelopment Agency of the Agency's affordable housing assets and functions upon the Agency's dissolution, including all funds in the Agency's Low and Moderate Income Housing Fund, and to manage all affordable housing assets and to exercise the housing functions that the Agency previously performed
  2. Acknowledging that upon the Agency's dissolution the city as successor agency shall accept the transfer of all of the Agency's non-affordable housing assets
  3. Providing for the required payment and performance of enforceable obligations, the transfer and establishment of funds and accounts, and for the administration of funds and other assets, all associated with the city's exercise of its responsibilities as successor agency to the Agency under state law
  4. Creating an Oversight Board to oversee certain fiscal management of former Agency assets other than affordable housing assets
Draft Recognized Obligation Payment Schedule
On March 19, 2012, the City of Healdsburg in its capacity as Successor Agency for the Redevelopment Agency of the City of Healdsburg adopted a resolution approving the draft Recognized Obligations Payment Schedule (PDF) for the period ending June 30, 2012.

Oversight Board for the Redevelopment Successor Agency
The Oversight Board for the Redevelopment Successor Agency of the City of Healdsburg is established pursuant to language in AB1x26 which states, "Each Successor Agency shall have an oversight board composed of 7 members." Questions regarding the Oversight Board should be directed to Heather Ippoliti, Assistant City Manager at 707-431-3319.