Copyright© 2007 by School Services of California, Inc.

                                      Volume 20                   For Publication Date: August 17, 2007             No. 18

Ask SSC . . .

Could You Clarify How the Timing Works
for Redevelopment Agencies? 

Q.                I read your Update article that addresses the changes in law and how redevelopment agency funds are to be recognized by school districts (see “Focus on Redevelopment Agency Payments” in the August 3, 2007, Update, page 301). The article states that agreements established or amended after January 1, 1994, are subject to the revenue limit offset. Our attorney states that it depends on when the project area was created, which can be different from the date of the agreement. Is this correct? 

A.                 Yes, it is correct. While this may seem to be a minor distinction, it can mean a significant difference in how the payments are treated. Health and Safety Code Section 33607.5(a)(1) states that it is the redevelopment project area—when it was adopted, or when it was last amended to include new territory—that must be measured against the date of January 1, 1994, and not the agreement. We stand technically corrected. Thank you for asking the question.

The subject of redevelopment agencies, including how they affect the distribution of property taxes and the impact on school agencies, can be very complicated. The Fiscal Crisis and Management Assistance Team has done significant work in this area and has published information that can be very helpful to school agencies trying to understand how all this works. The publications can be found at:  www.fcmat.org. 

[Posted to the Internet 8/17/07]                                                                                   —Sheila G. Vickers