CRA Lawsuit Update
Agencies Notice to County Auditor-Controllers Regarding No ERAF Payment
 

On April 30, Sacramento Superior Court Judge Lloyd Connelly ruled in CRA's favor and found unconstitutional a provision in the current state budget, which would have required redevelopment agencies statewide to transfer $350 million to be used to fund State obligations.  A judgment was signed by the Court on May 7, 2009, forbidding any of the defendants from taking any actions to carry out or enforce any of the payment requirements in Health and Safety Code Sections 33685 through 33689.  Agencies should not send their ERAF payment to their county auditor, but instead send to their county auditor a letter stating the following:

"On April 30, 2009, Judge Lloyd Connelly of the Sacramento Superior Court ruled that Health and Safety Code Section 33685 is unconstitutional.  (Sacramento Superior Court Case No. 34-2008-00028334-CU-WM-GDS.)  Judgment was entered on May 7, 2009, forbidding any of the defendants from taking any actions to carry out or enforce any of the payment requirements in Health and Safety Code Sections 33685 through 33689.  These are the section of the Community Redevelopment Law requiring redevelopment agencies to make payments to county auditors for deposit in the county ERAF for fiscal year 2008-09.
 

The county auditor for [                    ] County is a member of the defendant class of county auditors in that action and subject to the Court's jurisdiction.  Based on Judge Connelly's ruling, the [        ] Redevelopment Agency will not be depositing the sum of [$    ] with the county auditor for deposit in the county ERAF."