In a 4-0 vote on Friday afternoon, the City of Santa Ana officially responded to the state Department of Finance’s demand for $56 million in housing funds. Council members Michele Martinez, Sal Tinajero and Angie Amezcua were unable to attend the special emergency meeting called when the state issued its demand earlier last week.
The funds originally came from redevelopment funding and the state claims that the funds are theirs because they were unencumbered when development agencies were dissolved at the beginning of the year. The City claims that the funds are committed to housing projects and to give the money to the state would place the liability on the city general fund. Having just dug itself out of a $30 million budget hole this year, the city does not have reserves to cover the loss of funding.
Other Orange County cities, as well as the County of Orange, are facing similar demands. Some, such as Anaheim and Brea have met the demand from the state.
Read more on the story at the Voice of OC here.