California Faces RDA-Free Future

Bond Buyer reported on January 6, 2012, that California Supreme Court upheld legislation that would abolish the state's 400 redevelopment agencies. The legislation would unwind the agencies as of February 1 and transfer all existing obligations to other agencies.

"I think folks are really wrestling with the reality that RDAs are really gone," said Stephen Ryan, an attorney with Cox Castle & Nicholson in San Francisco who focuses on redevelopment law. "The real question is what really is an obligation and what is not." Ryan added that any obligations approved by redevelopment agencies in 2011 will be up in the air until the approval process outlined in the bill fleshes them out.