Oakland decided to keep its affordable housing program after redevelopment agencies were dissolved last year.
But the San Francisco Chronicle reports (http://bit.ly/UFMk8o) that the California Department of Finance says Oakland can't use $9.6 million in redevelopment funds to pay for affordable-housing staff. State officials also say the city can't keep an additional $8.5 million of redevelopment funds in reserves.
Mayor Jean Quan says state officials are breaking a promise to allow the city to continue affordable housing. She says the decision threatens 30 affordable-housing projects involving 2,000 units. The impact on Oakland's $400 million general fund budget is not yet clear.
Information from: San Francisco Chronicle, http://www.sfgate.com