The Sacramento County Board of Supervisors approved a $170 million budget Tuesday for the Sacramento Housing and Redevelopment Agency next year a 28 percent cut from the current year budget.
The biggest reason for the reduction is the 2011 decision by state lawmakers that ultimately took redevelopment funds across California.
SHRA has not changed its name since it lost its redevelopment funds and became mostly a housing agency. The agency owns and manages about 3,500 housing units.
Most of its funding comes from the U.S. Department of Housing and Urban and Development.
SHRA estimates that it will lose about $54 million a year for blight elimination and community development as the result of the state redevelopment action.
But that's not the only problem for the agency. Cuts in federal programs will continue next year for the Community Development Block Grants, housing vouchers and other funds.
The agency anticipates another 8.2 percent across-the-board cut if lawmakers fail to reach an agreement on next year's federal budget, Executive Director LaShelle Dozier told supervisors.
That could mean the loss of housing vouchers for many county residents, she said. It's unclear how such cuts would be handled.
The 2013 budget keeps the number of full-time positions at 253, but recommends that 38.8 be left unfunded. Along with other cost-saving measures, the agency expects to reduce operational costs by $4.2 million.
The agency has taken responsibility for 15 redevelopment areas, including "the payment of all enforceable obligations, the disposition of property and the servicing of loans," according to its budget.
Nine of the properties are in Sacramento, three are in the unincorporated county and three are jointly held by the city and county.