On December 29, 2011, the California Supreme Court ruled that ABX 126, the Redevelopment Dissolution Act, was constitutional. This decision means that all redevelopment agencies in the State of California were dissolved as of February 1, 2012.
As provided for under the new law, each city may choose to form a Successor Agency for the purposes of winding down the affairs of the previous Redevelopment Agency. Additionally, an Oversight Board, constituted by appointed members, would also be formed to oversee the activities of the newly created Successor Agency.