As a result of a recent ruling by the California Supreme Court, Redevelopment Agencies and their associated funding will be eliminated statewide as of February 1, 2012. The elimination of Redevelopment funding, combined with simultaneous reductions in federally funded Community Development Block Grant (CDBG) and Section 8 housing assistance programs, will result in the loss of over $1,000,000 in annual funding which the City of Redondo Beach has relied upon in the past to provide a variety of improvement programs.
In response to this funding crisis, the City of Redondo Beach has reduced staffing and eliminated the following programs and activities:
Deferred Payment Loan Program – A low interest home improvement loan program for qualifying low income homeowners – ended February 1, 2012;
Handyperson Program – Less extensive home repairs for qualifying low income homeowners – ended February 1, 2012;
Commercial Rehabilitation Program – a shared funding program for storefronts – ended February 1, 2012.
The end of these long-standing assistance programs was unavoidable due to the severity and the immediacy of the funding reductions -- cities are required to take action by the State imposed deadline of February 1, 2012.
In terms of the Section 8 Housing Assistance Program, the City is in the process of implementing a restructuring plan with reduced staffing in order to operate the City’s Housing Authority within available federal funding levels. While service levels will be affected (reduced hours, etc.) no households currently receiving Section 8 Housing Assistance will be displaced.
The January 17, 2012 Administrative Report provides additional information related to the elimination of Redevelopment funding and reductions in CDBG and Section 8 funding levels.
