After California kept community redevelopment organizations from continuing their operations, many cities sought investments that they had expected that the state would reimburse.
The redevelopment law after the Second World War was meant to aid citizens in revitalizing blighted areas. Huntington Beach city was doing just that as its RDA (redevelopment agency) offered funds to the developer Jamboree Housing, which focuses on affordable housing.
Then, the developer rehabilitated an old apartment complex situated along Parktree Circle in Huntington Beach, a project that is now low-cost senior housing.
However, Huntington Beach did not get reimbursed by the California Department of Finance (DOF) for many projects, including those apartments.
Unless an appeal happens, it seems like the city will soon get back a part of the amount it paid to aid in the remodeling of the apartment complex. In a verdict made public last month, Judge James Arguelles of the California Supreme Court ruled that this state owes the city $5.2 million, including accumulated interest.
Almost all the amount is designated for specific applications, but Huntington Beach spokesperson Jennifer Carey stated that around $1.5 million would go to the general funding. Carey added that almost all the amount is restricted for projects on moderate- and low-income housing. However, Carey said, there are many ways to use the money to help the community.
Mayor of Huntington Beach Barbara Delgleize described the court verdict as a great windfall. As per Delgleize, there are buildings across the community that need attention.
The city litigated California in 2018 as it sought reimbursement of $75 million associated with 12 real estate developments, which included the Waterfront Beach Resort.
The court found that most of those developments listed failed to qualify as loan agreements that could be enforced, for which California owed money. When it came to the so-called Waterfront loan, it chose not to give a judgment in a party’s favor pending further documentation.
Huntington Beach Lawyer Michael Gates described the age-old redevelopment act as an incredible law on paper. As per Gates, the law allowed developers and cities to make blighted pieces of property in California better. Gates regards the Waterfront Beach Resort hotel as the poster boy for redevelopment agencies while stating that the development program was costly for California.
Yorba Linda and Irvine are among the other cities in Orange County that have recovered RDA funds from the US state.
