Redevelopment Glossary of Terms
Absentee Owner:Property owner who owns property at one location but lives or operates a business at another location.
Adaptive Reuse:The rehabilitation of older properties for a new purpose.
Affordable Housing:Housing that is affordable to households earning at or below 120% of area median income (AMI)as defined in California law. (See Chapter 8 of the Community Guide to Redevelopment for agency obligations and definition of AMI.)
Assessed Value (AV):The amount used by the county tax assessor to value real property for tax purposes. Assessed value multiplied by the tax rate determines property tax.
Base Year:The year in which the redevelopment plan is adopted.
Base Year Assessed Value, Base Value or Frozen Base:The total assessed value of property within a project area in the year in which the redevelopment plan is adopted.
Blighted Areas:Areas that exhibit substantial and prevalent adverse physical, and economic conditions requiring redevelopment assistance.
California Community Redevelopment Law:Redevelopment law contained in California Health and Safety Code, Division 24, Part 1 (Section 33000 et seq.).
Economic Development:A general term indicating projects to stabilize and enhance an area’s economy and create or maintain jobs.
Eminent Domain:Authority of a government agency to acquire property for public purposes, with payment of just compensation. "Public purposes" include the elimination of blight in the case of redevelopment agencies. Also known as condemnation. (See Chapter 7 of the Community Guide to Redevelopment for limitations on use of eminent domain.)
Housing Production/Inclusionary Housing:Within a redevelopment project, a specified percentage of housing units built or substantially rehabilitated, required by law to be available at an affordable housing cost to very low-, low- and moderate-income persons. Within cities or counties, a specified percentage of new housing that is required to be affordable pursuant to ordinance or policy.
Infrastructure:Public improvements which support development, including street improvements, lighting, sewers, flood control facilities, water lines, and gas lines.
Market Value:What a willing seller could reasonably expect to receive if he/she were to sell his/her property on the open market to a willing buyer.
Mixed-Use Project:Developments that combine uses, such as retail on the ground floor and residential above.
Negotiated Sale:When the price to be paid for land and improvements is mutually agreed upon by the buyer and seller.
Project Area:The area that is designated in the redevelopment plan for redevelopment and revitalization.
Project Area Committee (PAC):Elected committee composed of project area residents, businesspersons and representatives of organizations who consult with and advise the agency.
Property Tax:The amount of tax which a property owner pays on the assessed value of his/her property. The tax is calculated by multiplying the assessed value of the property by the tax rate, which is one percent plus any voter-approved rate.
Redevelopment:Planning, development, redesign, site preparation and improvement, reconstruction and/or rehabilitation of all or part of a project area.
Redevelopment Agency Board:The governing body created to designate redevelopment project areas, supervise and coordinate planning for a project area and implement the revitalization program.
Redevelopment Plan:Plan for revitalization and redevelopment of land within the project area in order to eliminate blight and remedy the conditions which caused it.
Rehabilitation:To improve, alter, modernize and/or modify an existing structure to make it safer and healthier, bring it up to building code standards and create more usable space.
Relocation:The provision of new housing and/or business locations for residents, businesses or organizations that must move as a result of redevelopment activities.
Relocation Assistance:Aid for those who relocate, including assistance in finding and paying for a new location, payments to cover moving costs, and additional payments for certain other costs.
Tax Allocation Bond:A bond or financial obligation issued by the agency in order to generate funds to implement the redevelopment plan. The bond is repaid with tax increment revenues flowing to the agency.
Tax-Exempt Bond:A bond on which the interest payments are not subject to federal taxation.
Tax Increment:The increase in property taxes within the redevelopment project area that result from increases in the project area assessed value that exceed the base year assessed value. |
