Redevelopment Agency SERAF Payment Requirements Upheld

In a setback for redevelopment agencies, Judge Lloyd Connelly ruled today to deny petitions seeking to overturn AB 26x4 which mandates a statewide contribution from redevelopment agencies equal to an aggregate $1.7 billion during fiscal year 2009-10 and an additional $350 million in fiscal year 2010-11. The 2009-10 payments are due to county auditor-controllers on May 10. In the ruling, the court denied the California Redevelopment Association’s (CRA) petition to stay the transfer of funds; however, the CRA Board of Directors has announced that it will file an appeal to the ruling, and may again seek a stay pending the appeal. Redevelopment agencies should be advised that as detailed in prior e-alerts, the legislation imposes a number of sanctions on redevelopment agencies that fail to timely pay or arrange for payment of the SERAF payment on the agency’s behalf. Meyers Nave is monitoring developments and will provide updated information via our Web site.