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Successor Agency

As one of the final projects under the former Redevelopment Agency, the Naval Training Center (NTC) was redeveloped into Liberty Station. 

 

Dissolution of Former Redevelopment

In 2011, the state of California approved the dissolution of over 400 Redevelopment Agencies (including San Diego). As a result of the elimination of the Redevelopment Agencies, property tax revenues would now be to used to pay required payments on existing bonds, other obligations, and pass-through payments to local governments. The remaining property tax revenues that exceed the enforceable obligations would now be allocated to cities, counties, special districts and school and community college districts, thereby providing critical resources to preserve core public services. More information about the dissolution of Redevelopment can be found on the State’s website by clicking here. 

Creation of Successor Agency for City of San Diego

To help facilitate the wind-down process at the local level, Successor Agencies were established to manage redevelopment projects currently underway, make payments on enforceable obligations, and dispose of redevelopment assets and properties. At the local level, each Successor Agency in the San Diego region is supervised by the County of San Diego Oversight Board, which can be viewed here. 

Affordable Housing Master Plan (AHMP)

In 2013, Civic San Diego, on behalf of the City of San Diego, prepared the first Affordable Housing Master Plan (AHMP) The AHMP provided a framework of strategies for the effective utilization of the Housing Assets in the wake of the dissolution of redevelopment agencies. The first update to the AHMP was approved by City Council on January, 26 2016, and a second update was approved on September 27, 2018. The City Council recently approved the third update on October 9, 2023. The full report and attachments can be found below:

*Please note that the AHMP is primarily focused on Housing Assets for the former Redevelopment Agency and does not capture all of the affordable housing activities for the City of San Diego, 

Recognized Obligation Payment Schedule (ROPS)

The City is responsible for submitting a governing document as to payments allowed to be made by the Successor Agency during each year, which is called the Recognized Obligation Payment Schedule (ROPS). Each ROPS is approved on a forward-looking basis for the upcoming fiscal year. The City of San Diego submits the ROPS to the County of San Diego’s Oversight Board for review prior to submittal to the State Department of Finance. The most recent City Council approved ROPS (ROPS 17) can be found below:

Please note, State legislature is very clear in statue AB126, and has reiterated the intent in SB107. Section 34177.3(a) of the Health and safety codes which states the following:

“Successor agencies shall lack the authority to, and shall not, create new enforceable obligations or begin redevelopment work, except in compliance with an enforceable obligation that existed prior to 2011.” 

 

Additional Successor Agencies Activities
 In addition to managing the ROPS, the Successor Agency manages and oversees the following activities:

  • Refinancing previous Redevelopment related loans
  • Property management of former Redevelopment projects
  • Low-Mod Income Housing Asset Fund (LMIHAF): The LMIHAF was established to pay off any remaining debts owed to former Redevelopment Projects. A requirement in monitoring the LMIHAF is submitting the SB 341 report, which is prepared by the Department of Finance and can be found here:

A portion of the LMIHAF is being allocated towards the “Bridge to Home” program. The Bridge to Home program uses a combination of LMIHAF, CDBG,and PLHA funds and created a rolling Notice of Funding Availability (NOFA) for housing developers. For more information about the Bridge to Home program, please visit the webpage. 

  • Disposing of former redevelopment properties: As part of the Long Range Property Management Plan, the City is responsible for disposing of former Redevelopment properties. In 2020, the State of California passed the Surplus Land Act (SLA), which is intended to spur affordable housing development. The City abides by the regulations in the SLA when disposing of former Redevelopment properties.  

To view properties that are currently in or have completed the SLA process related to Successor Agency, please visit our Notice of Availability Surplus Land webpage for more information.