Press ReleasesJanuary 07, 2013
Judge's Order Protects $38 Million in City of Industry Funds for Affordable Housing
LOS ANGELES – A court has protected more than $38 million in funds for affordable homes in eastern Los Angeles County.
Sacramento County Superior Court Judge Michael P. Kenny authorized a temporary restraining order on Tuesday, January 2, to prevent the State of California from taking the City of Industry Funds, a crucial source of funding for affordable housing in the Los Angeles region. Since the program began in the mid-1990s, over $200 million has been allocated for the development of more than 8,000 units of affordable housing. The judge’s order prohibits the funds from being disbursed for purposes other than affordable housing for low and moderate income people.
Attorneys representing the Southern California Association of Non-Profit Housing (SCANPH) requested the temporary restraining order on December 27. SCANPH is a nonprofit membership organization dedicated to producing, preserving, and managing affordable homes for Los Angeles County residents.
SCANPH is represented by Public Counsel, Katten Muchin Rosenman LLP, and the California Affordable Housing Project of the Public Interest Law Project.
"City of Industry affordable housing funds have fueled the construction of thousands of homes for seniors, veterans, and people with disabilities," said Annie Marquit, staff attorney at Public Counsel. "The Court’s order was an important step to preserve these funds for vulnerable people as state law requires."
"Every day someone has to endure another day with no housing or living in substandard or overcrowded conditions they suffer an irreparable harm," said Katten partner Allan Abshez. "We are extremely gratified that the Court’s order protects critical funds that have been set aside by the State to minimize that harm."
The order protects more than $38 million that must be transferred to the Housing Authority of the County of Los Angeles and spent on affordable housing within 15 miles of the City of Industry.
Although Industry’s redevelopment agency, like all redevelopment agencies in the state, has been dissolved, the law that dissolved the redevelopment agencies requires “successor agencies” to fulfill the legal obligations of the former agencies. Attorneys argued that because a 1992 law requires the former redevelopment agency to make these payments to the County, and because Industry and its redevelopment agency agreed to do so in a binding contract with the County Housing Authority, the successor agency must continue this important program.
The Court will consider attorneys’ request for a preliminary injunction in mid-January.