Updated Redevelopment Successor Agency Expenditure Limits for 2026
Existing law dissolved redevelopment agencies and community development agencies as of February 1, 2012. As a result, successor agencies are designated to wind down the affairs of the dissolved agencies, including making the payments due for enforceable obligations and performing duties required by enforceable obligations. These actions include monitoring and preservation of long-term affordable units subject to affordability restrictions or covenants and homelessness prevention and rapid rehousing services.
Health and Safety Code Section 34176.1(a)(1) specifies, in part, that housing successors may annually expend up to $200,000 to monitor and preserve long-term affordability of units subject to affordability restrictions or covenants and administer certain activities. Section 34176.1 (a)(2)(A) specifies, in part, that housing successors that have fulfilled all obligations pursuant to Sections 33413 and 33418, may annually expend up to $500,000, plus any percentage change in the cost of living, per fiscal year for homelessness prevention and rapid rehousing services for individuals and families who are homeless or would be homeless but for this assistance.
To provide guidance on the maximum expenditure limits, HCD is required to publish on its website an adjustment to the amount that may be expended by a housing successor to reflect any percentage change in the cost of living (Health and Safety Code Section 34176.1)