Local News in Brief : Deukmejian OKs Home Buy-Back Bill
A bill broadening the authority of the Los Angeles Community Redevelopment Agency to buy back homes damaged by soil subsidence in the Monterey Hills housing complex has been signed by Gov. George Deukmejian.
The bill, authored by Assemblyman Richard Polanco (D-Los Angeles), was designed to force the agency to establish a claims-settlement program for owners of homes in the ill-fated CRA project. But, as amended, it only strengthens the community redevelopment laws to explicitly authorize agencies to buy back property that they had previously owned. CRA officials have contended that they were precluded from buying back property the agency had developed, then sold to homeowners.
The bill requires the agency to report to the Legislature by Jan. 1 on whether funding is available for such a program to buy back and repair the sinking units. An Assembly committee estimated after hearings last year that it would cost the agency nearly $25 million to buy back the affected properties and $50 million to $70 million to repair damage.
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