California's redevelopment agencies are feeling pressure on numerous fronts these days. Some may go out of business next year. Still, state lawmakers are considering giving the agencies authority to buy out subprime mortgages.
California has more subprime mortgages than any other state, and redevelopment agencies are already in the business of financing housing, so the marriage may be a natural one. Plus, the subprime mess is hitting low-income neighborhoods where redevelopment agencies already operate.
While redevelopment agencies' move into "solving" the subprime loan and foreclosure situation might help struggling homeowners, it could also bolster the agencies themselves, which are trying to defend their budgets from a potential state raid.
Thanks to Paul Shigley
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Planning for Universal Design
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City of Albany
UCLA Lewis Center for Regional Policy Studies
Mpact (formerly Rail~Volution)
Chaddick Institute at DePaul University
City of Piedmont, CA
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research