San Diego City Attorney

Jan I. Goldsmith
NEWS RELEASE
FOR IMMEDIATE RELEASE December 28, 2012
Contact: Jonathan Heller, (619) 533-4782 jheller@sandiego.gov

HOMELESS SERVICES FUNDING RESTORED

The City of San Diegos planned permanent homeless shelter which is about two weeks away from opening will receive its full allotment of redevelopment funding after the state yesterday reversed a funding cut that placed the project in jeopardy. The City filed a lawsuit in Sacramento Superior Court on December 21 seeking to restore $4.3 million in funding for the Connections Housing project that was rejected on Dec. 18 by the state Department of Finance (DOF), which assumed control of redevelopment funding after two state laws dissolved local redevelopment agencies earlier this year. The denial of funding would have had a domino effect that could have triggered a catastrophic loss of up to $15 million for the project, according to the lawsuit. On December 27, the DOF issued a letter reversing its denial and restoring the $4.3 million. The City Attorneys Office will now dismiss the lawsuit without prejudice. Adapting to the new world of redevelopment has been very challenging for the City, and we decided to file the lawsuit to test the boundary of redevelopment law in this state, said City Attorney Jan Goldsmith. We are heartened that the DOF has since reversed its decision which would have placed the Citys homeless population the third-highest of any city in the country in jeopardy, Goldsmith said. The DOF earlier this year denied funding for Connections Housing based on what it perceived as an impermissible increase in the cost of the project. The original cost of the $32 million project did rise to $36 million after the extent of asbestos and structural issues became evident. However, the projects developer and City officials worked hard to secure alternative sources of funding to reduce the amount that must come from redevelopment dollars, resulting in no net increase in the overall redevelopment subsidy toward the project.
Recent City Attorney media releases can be accessed on the San Diego City Attorneys home page located on the Internet at http://www.sandiegocityattorney.org

1200 Third Avenue, Suite 1620, San Diego, California 92101-4188 (619) 236-6220

Homeless Services Funding Restored

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The lawsuit was filed only after an exhaustive meet and confer process lasting nearly two months failed to prompt the DOF to change its decision on Connections Housing, according to Deputy City Attorney Kevin Reisch, this offices point person on the matter. The DOF yesterday also reversed its denial of $20.2 million for a planned affordable housing project at Ninth Avenue and Broadway, allowing that project to move forward.

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Recent City Attorney media releases can be accessed on the San Diego City Attorneys home page located on the Internet at http://www.sannet.gov/city-attorney

1200 Third Avenue, Suite 1620, San Diego, California 92101-4188 (619) 236-6220