By Ursula Hyman and Daniel Van Fleet

On December 29, 2011, in California Redevelopment Association v. Matosantos, the California Supreme Court (“Court”) upheld the constitutionality of AB 1X 26, a statute ending redevelopment agencies in the state.  In the same decision, the Court rejected AB 1X 27, which would have allowed a carve out for redevelopment agencies to continue to exist if certain requirements were met.  This decision will have significant ramifications on existing development projects involving redevelopment agencies