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City to Sue State Over Redevelopment Funds

The state ruled against a Temecula affordable housing grant—prompting officials to sue California.

The city of Temecula will sue the state government after it rejected a $4 million affordable housing grant, according to a North County Times report.

City officials say the lawsuit "will be filed within the next 30 days," according to the newspaper.

Read the full report here.

TVOR December 28, 2012 at 05:43 PM
What about some details? Is this supposed to be some kind of teaser? If you don't have the info you should wait to publish the article.
LetsBfair December 29, 2012 at 01:24 AM
(Here is what H.D. Palmer from the State Dep. of Finance) The state is saying the agency did not have the authority to extend the agreement. The city has responded by saying the state Department of Finance doesn't have the authority to disapprove the $4 million payment. In the event of what the department terms "non-compliance," the state has the authority to dock the city's sales and use tax allocation as well as its property tax allocation, said H.D. Palmer, the department's deputy director for external affairs. "In addition, failure to remit funds could also potentially result in criminal penalties under existing law," he stated in an email to The Californian. (Did he say Criminal penalties?)

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