The California Redevelopment Association (CRA) on Tuesday, Oct. 20 filed a lawsuit in the Sacramento Superior Court to challenge the constitutionality of the state’s seizure of redevelopment funds for the state budget. The funds were raided through ABX4-26, the state budget trailer bill which authorized the use of redevelopment agency funds, $1.7 billion from the current budget year and $2.05 billion in FY 2010-11.

The same court in April 2008 ruled the state’s seizure of $350 in redevelopment funds for the FY 2008-09 budget unconstitutional. When the state dropped its appeal on Sept. 30, the Sacramento Superior Court’s April 2009 decision became final and binding.

Two redevelopment agencies are joining CRA as plaintiffs in the new lawsuit: the Union City Redevelopment Agency in Alameda County and the Fountain Valley Redevelopment Agency in Orange County. The Superior Court will be asked to certify all redevelopment agencies as a class of plaintiffs in the lawsuit.

The lawsuit filed on Oct. 20 challenges the constitutionality of ABX4-26 and seeks to prevent the state from taking redevelopment funds for non-development purposes.

CRA has posted information about the lawsuit, including FAQs and the ABX4-26 language on its Web site.

Please contact John Shirey or Lillian Henegar of CRA at (916) 448-8760 with any additional questions.