The La Habra Redevelopment Agency, along with all 400 redevelopment agencies in California, was dissolved on February 1, 2012, by order of the California Supreme Court in a decision issued on December 29, 2011 (California Redevelopment Association et al. v. Ana Matosantos). On June 27, 2012, the California Legislature passed and the Governor signed AB 1484, a bill making technical and substantive changes to AB 26, the dissolution bill that was found largely constitutional by the Supreme Court on December 29, 2011.
In response to the requirements of AB 26 and AB 1484 the City has created the Successor Agency to the Dissolved Redevelopment Agency for the City of La Habra. AB 26 provides that cities may create successor agencies and continue to implement “enforceable obligations” which were in place prior to the suspension—existing contracts, bonds, leases, etc.—and take title to all of the former redevelopment agencies’ housing and other assets. Pursuant to state legislation, the Successor Agency is governed by the Oversight Board of the Successor Agency. The Oversight Board of the Successor Agency, which is required by AB 26, oversees certain fiscal management of former Redevelopment Agency assets other than affordable housing assets.