Craig

Plaintiff Cheri L. Craig, a low-income resident of the City of Poway, brought an action against Poway, Poway’s city council, and the Poway Redevelopment Agency (collectively Agency), challenging various aspects of the Agency’s implementation of its redevelopment plan. Craig claimed inter alia (1) the Agency had not properly funded its low- and moderate-income housing fund (LMI Housing Fund or Fund) and (2) the Agency had improperly used money from the LMI Housing Fund to pay for a series of improvements to Pomerado Road, known as the Pomerado Road Improvement Project (Pomerado Road Project or Project). The court sitting without a jury found the Agency had adequately funded its LMI Housing Fund, but issued a writ of mandate ordering the Agency to refund $239,949 plus interest to the LMI Housing Fund, reflecting the amount of LMI Housing Fund expenditures used for the Pomerado Road Project. Both parties appeal.

For the reasons explained below, we conclude the Agency’s method of funding its LMI Housing Fund was improper and, accordingly, we reverse the portion of the judgment pertaining to the funding issue. We remand for the trial court to determine the amount, if any, the…