- January 27, 2012
- All California Issuing Offices
- California Redevelopment Agencies
In 2011, the California Legislature passed AB1X26 and AB1X27. AB1X26 eliminated Redevelopment Agencies. AB1X27 allowed the ‘reconstitution’ of Redevelopment Agencies by making voluntary payments to schools and special districts. A legal challenge was brought (California Redevelopment Association vs. Matosantos) and the California Supreme Court agreed to hear the case on an expedited basis. The Supreme Court filed their opinion on December 29, 2011.
The Court upheld AB1X26, thereby allowing the dissolution of Redevelopment Agencies. The Court struck down and overturned AB1X27 thereby cutting off the only legislative avenue to reconstitute a Redevelopment Agency. California Redevelopment Agencies are gone, they no longer exist.
There are hundreds of Redevelopment Agencies in
Therefore, any proposed real estate transactions involving a Redevelopment Agency are most likely not insurable at this time. Any request for title insurance to be issued in any transaction involving a Redevelopment Agency or any alleged successor to a Redevelopment Agency must be referred to STG Underwriting as soon as you have knowledge that a Redevelopment Agency or Successor is involved in the transaction in any manner or held title to the property subject of the request for insurance any time after January 1, 2011. There will be no local exceptions to this requirement.
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