The Governor's current budget proposes to eliminate Redevelopment Agencies throughout our State.  This elimination would be disastrous for affordable housing.  The 20% of tax increment funds that must, by law, go to fund affordable housing is the primary source of housing subsidy from municipalities such as San Jose.  Without redevelopment tax increment, hundreds of thousands of lower-income Californians would not have reasonable rent payments, decent apartments, newly-purchased homes, or homes rehabilitated to fix safety hazards.

At a time when the economy is suffering and more Californians than ever need reasonably-priced housing, redevelopment housing funding is vital.  And of course, housing construction would continue to support the economy by benefitting local construction companies, suppliers, and other local businesses. 

Attached is a two-page fact sheet about Redevelopment - how vitally important it is for our State, and how it has benefitted housing in San Jose since our Housing Department was formed in 1988.