California dissolves redevelopment agencies (2012)
California lawmakers dismantled all redevelopment agencies, which had channeled tax increment revenue into affordable housing for decades. San Francisco lost its single largest dedicated housing funding stream, forcing the city to find new sources.
Hundreds of planned affordable units stalled as the city scrambled to replace lost funds.
The city turned to voter-approved bonds, the Housing Trust Fund, and impact fees — a more fragmented funding system that relies on gap financing to close deals.
The five retroactive grants reflect the aftermath: with no single stable funding source, projects patch together multiple capital streams, and retroactive approvals close the final gaps.
