How do redevelopment agencies support affordable housing?
California Community Redevelopment Law requires that no less than 20 percent of tax increment revenue derived from a redevelopment project area be used to increase, improve, and preserve the supply of housing affordable to very low- low- and moderate-income households. Possible uses of the funds include financial assistance to upgrade existing units, the construction of new housing, and improvements to public facilities and infrastructure that service low- and moderate-income neighborhoods. Whenever residential units housing persons of low- or moderate-income are removed from the market as part of an agency sponsored project, the agency is required by law to rehabilitate or construct an equal number of replacement dwelling units within the jurisdiction of that agency, within four years of removal. The replacement units must be affordable to the same income level (very low-, low-, or moderate-) as the persons displaced from the removed units.
