What is this service?
This report focuses on redevelopment projects. The Community Redevelopment Act in 1945 provided a mechanism to create Redevelopment Agencies (RDAs) and established a form of “tax-increment financing” whereby cities and counties were given the authority to declare areas within their boundaries as in need of urban renewal. The growth in property tax revenue (known as “tax increment”) within the RDA project areas is diverted from the local taxing agencies (county, cities, schools and special districts) to pay back any bonds issued to fund the needed improvements made by the RDA. Effective February 1, 2012 the State of California passed legislation to gradually dissolve RDAs. Once all debt obligations of each RDA are paid in full, the tax increment that is currently being diverted to pay those obligations will be returned to the local taxing agencies.