Perhaps this is why the city is in a RUSH to build Senior Villas?
http://www.sen.ca.gov/locgov/REDEVELOPMENTPAPER.DOC
Housing Obligations And Performance
Redevelopment agencies must deposit 20% of their annual property tax increment revenues into a Low- and Moderate-Income Housing Fund (L&M Fund), and spend the money to increase, improve and preserve the community's supply of low- and moderate-income housing. Several agencies dedicate more than the required 20% of tax increment funds to housing activities.
Statewide in 2000-01, this set-aside requirement resulted in the deposit of $225 million in property tax increment revenues into the agencies' L&M Funds. An additional $337 million came from accrued interest, transfers, and bond proceeds.
Effectiveness. Beyond the issue of spending L&M funds by the statutory deadline is the question of how effectively redevelopment officials spend these funds. Many agencies report spending more than 50% of their L&M income on planning and administration. HCD's audits of redevelopment agencies have uncovered other problems. For example, the redevelopment agency in Grand Terrace (San Bernardino County) underfunded its L&M Fund by $1.2 million, plus interest. Grand Terrace officials used their L&M funds to construct and rehabilitate city offices, and to pay for the entire payroll and equipment costs of the City's code enforcement office.
