HOLTVILLE — As redevelopment agencies continue their demise, the City Council decided to keep the housing function of its RDA by creating a housing authority on Monday.
The idea behind this is that the private real estate market has failed to provide new single-family owner-occupied housing in the last 20 years, said City Manager Alex Meyerhoff.
The housing authority represents an opportunity to meet this demand by developing new housing in the city, he said.
Before RDAs were dissolved, they had the authority to finance housing development, as well as economic development programs, through bonds.
With the unwinding process, these capabilities ceased while assets are expected to be sold and turned over to the state.
But the law does allow for RDA resources to be used within a housing authority.
And there are some resources available in bond proceeds and fund balances from the RDA, that the housing authority can take advantage from, said Meyerhoff.
Mayor Jerry Brittsan asked if the resources were potential funds or already available.
These are funds that the city already has, Meyerhoff responded and added that if the City Council decided against establishing a housing authority “then these funds will leave the city.” This would include property assets.
The matter was approved unanimously.
Staff Writer Alejandro Davila can be reached at 760-337-3445 or adavila@ivpressonline.com
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