City of Hercules logoOn February 27, the Hercules City Council voted unanimously to assume the role of housing successor to the former Hercules Redevelopment Agency. This landmark Council action effectively unlocks millions of dollars in former Redevelopment Agency assets that the City can now invest in new affordable housing solutions in Hercules.

“Becoming the housing successor agency presents us with a golden opportunity to provide assistance and housing to our most vulnerable residents,” said Hercules Mayor Dan Romero. “That is exactly what our City Council has been looking forward to by taking this important step: we are going to be able to help a lot of people in Hercules.”

A housing successor is an agency that takes over any housing assets from former redevelopment agencies. Following the dissolution of the Hercules Redevelopment Agency in 2012, the City of Hercules opted not to become the successor agency, and its duties and assets were transferred to the Contra Costa County Housing Authority. However, the Housing Authority declined to accept those responsibilities, leaving the agency’s $5.3 million in loan deposit funds and $4.3 million in outstanding loans in limbo for the past 12 years.

At the February 27 meeting, Hercules Finance Director Edwin Gato presented a staff report contextualizing Hercules’ path towards becoming the housing successor agency. In September 2022, the Hercules City Council authorized staff to initiate a discussion and negotiate an agreement with the Housing Authority to legally transfer the role of housing successor back to the City. The City then sent a letter informing the Housing Authority of the City’s intent to become housing successor.

As housing successor, the City can leverage its $5.3 million in assets to advance local affordable housing initiatives, including to fund new affordable housing construction, acquisition, rehabilitation and direct assistance programs.

“The City is proud to move forward as the housing successor agency, and I thank our City staff and Council for their hard work to achieve this milestone,” said Hercules City Manager Dante Hall. “Housing is a top priority for the City, and we look forward to leveraging these funds to create lasting housing solutions that support our at-risk residents.”