Bill Poised to Confer Polanco Act-Like Powers on Cities and Counties in California

A bill on its way to Governor Brown’s desk for signature promises to offer California’s local agencies, including cities, counties, and some housing authorities, authority and liability protection similar to that previously conferred on the former redevelopment agencies under the Polanco Redevelopment Act.  Assembly Bill 440 passed out of the state Senate on September 12, 2013 and tracks the key provisions of the Polanco Redevelopment Act, which authorized the state’s now dissolved redevelopment agencies to clean up contaminated properties and recover costs from responsible parties. 

The bill seeks to fill the gap left by the dissolution of redevelopment agencies in 2011 by enabling cities and counties to undertake environmental investigation and remediation activities on “blighted properties” located within “blighted areas,” as defined by the bill, that have been impacted by hazardous materials, in the event responsible parties fail to undertake the cleanup activities themselves. 

If  the investigation and cleanup efforts are consistent with the bill’s requirements, AB 440 protects the local agency, persons that enter into agreements with the local agency to develop or clean up the contaminated property, subsequent owners, and lenders by limiting their liability associated with the historic release of hazardous materials on the property.  The bill also allows local agencies to recover costs and attorney’s fees incurred during the investigation and cleanup activities from responsible parties.

--Nicole Martin

For more information, please contact Nicole Martin at (415) 228-5435, nmm@bcltlaw.com.