CA SB438

Deems a loan agreement between a redevelopment agency and the City of Atascadero entered into between January 1, 1999, and January 1, 2003, to be an enforceable obligation binding on the successor agency.

Overrides existing law that generally invalidates agreements between cities and their former redevelopment agencies, except for loans entered into within 2 years of agency formation.

Makes the specified Atascadero loan agreement enforceable by the successor agency despite not meeting the standard 2-year window for enforceable obligations.

Legislature declares that a special statute is necessary due to unique fiscal circumstances in the City of Atascadero related to loans made to its former redevelopment agency.