A Sacramento judge today refused to grant a stay to stop the state from shuttering more than 400 local redevelopment agencies to stave off a financial crisis.
Judge Lloyd G. Connelly ruled against municipalities that had argued they serve a "fundamental" promise to spur economic opportunity and develop affordable housing.
The redevelopment agencies face a Feb. 1 deadline to dissolve under state legislation signed last year.
The California Supreme Court last month appeared to deliver a death knell to the local offices that subside construction in blighted areas, such as Sacramento's downtown rail yard and K Street corridor.
Handing a victory to Gov. Jerry Brown, who has counted on elimination of redevelopment agencies to deliver more money for schools and public safety, the court ruled Dec. 29 that lawmakers could legally dissolve them.
But in a continued challenge, a coalition of cities from Southern California charged charged that eliminate the redevelopment agencies violate state community development law mandates.
Their lawsuit said the state has a obligation to support local agencies working to "expand the supply of low-and-moderate-income housing" and increase opportunities for "jobless, under-employed and low income persons."
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