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Proposed State Bill Sponsored by City of Glendale Clears First Hurdle

Post Date:04/12/2019

Media Contact
Dan Bell, Public Information Officer
dbell@glendaleca.gov
Office: (818) 548-4844
Cell: (626) 298-4297 

Proposed State Bill Sponsored by City of Glendale Clears First Hurdle

Sacramento, CA - On April 10, 2019, the California Senate Government and Finance Committee voted 5-2 to approve SB 532, a bill sponsored by the City of Glendale and authored by State Senator Anthony Portantino (D-La Cañada Flintridge). The proposed bill would allow Glendale to repurpose bond funds originally intended for Redevelopment activities, and apply them towards the development of much needed affordable housing in Glendale. 

Currently, Glendale has 2011 Subordinate Taxable Tax Allocation Bonds in the amount of approximately $27 million from its former Redevelopment project area. Following the elimination of Redevelopment by the State in 2012 and subsequent actions and amendments, cities with former Redevelopment agencies that issued bonds in 2011 were prevented from spending a large percentage of their bond revenues. For Glendale, this accounted for approximately $27 million in stranded funding. Rather than defease and retire the funding without any benefit to residents, the Glendale City Council and Glendale Housing Authority voted in July 2018 to sponsor state legislation that would allow the City to keep that funding if it were “repurposed” exclusively for affordable housing development. 

A Glendale delegation led by Mayor Ara Najarian testified at the hearing in support of the proposal. “This would provide a significant one-time source of funds that would be locally controlled. These funds could be used for affordable housing for lower income households in Glendale,” said Mayor Najarian. “This legislation will provide a big boost to our efforts to expand our affordable housing portfolio. I would like to thank Senator Portantino for authoring this very important and impactful legislation for all of our constituents.”

Presenting the bill   to the Committee, Senator Portantino, who originally opposed the State’s elimination of Redevelopment, pointed to Glendale’s long track record of producing quality affordable projects for lower income households as one of the reasons why this bill should be adopted. “Glendale is one of the best in doing this kind of important work and we should help them continue that.”

The Senate Housing Committee will hear SB 532 on April 22.

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