The California Supreme Court, in a decision issued on December 29, 2011 (California Redevelopment Association et al. v. Ana Matosantos et al), upheld a bill passed by the California Legislature, ABX1 26, that abolishes redevelopment agencies, and invalidated as unconstitutional a companion bill, ABX1 27, that would have permitted redevelopment agencies to continue operation if their sponsoring jurisdiction agreed to make certain payments to the State for the benefit of schools. As a result, the Redevelopment Agency of the City of Santa Rosa along with all redevelopment agencies in California were dissolved on February 1, 2012.
On January 10, 2012, the City Council adopted Resolution No. 28029, electing the City of Santa Rosa as the Successor Agency to the former Redevelopment Agency. The Successor Agency is responsible for winding down the affairs of the former Agency.
State law also requires that each Successor Agency have a seven-member Oversight Board with representatives from affected local taxing agencies, K-14 districts, the county, the city and special districts. The Oversight Board has certain fiduciary responsibilities and reviews and directs certain successor agency actions.
On January 24, 2012, the City Council selected the Housing Authority of the City of Santa Rosa to retain the affordable housing assets and functions of the former Redevelopment Agency.
Pending legislation in the California Legislature would modify some of the provisions of ABX1 26.