Use of redevelopment funds by a city-formed nonprofit organization to develop school administrative buildings and a housing project with units reserved for low- and very low-income residents was valid and did not require voter approval, the Second District Court of Appeal has ruled.
In reaching its decision, the court had to interpret the various restrictions in redevelopment law as well as Article 34 of the state constitution.
Article 34 as part of the California Constitution, adopted by voters in 1950, had the effect of requiring voter approval of "low rent housing projects." Over time, the Legislature has codified various interpretations of Article 34, excluding from the voter approval process certain types of affordable projects. On a parallel path, the Legislature has modified redevelopment law to ensure that cities spend a certain amount of their tax increments on affordable housing.