In California, the elimination of local redevelopment agency (RDA) funding will result in an average annual loss of 4,500 to 6,500 new affordable housing units, estimates the Department of Housing and Urban Development (HUD) in a new working paper on the history and demise of the RDAs.
The estimated loss represents what would have likely been delivered under RDA financing had the agencies continued operating and includes both agency-specific developments as well as projects that used RDA gap financing.
The agencies, which were required to allocate at least 20 percent of their annual revenues to create, rehab, or preserve affordable housing, were eliminated in 2012.
Redevelopment Agencies in California: History, Benefits, Excesses, and Closure looks at the successes and failures of RDAs over the years and details how the loss of the agencies will affect affordable housing production. Prepared by HUD’s Office of Policy Development and Research, the paper provides case studies of Los Angeles and San Jose.