CONFLICT OF INTEREST-REDEVELOPMENT COMMISSION

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OFFICE OF THE CITY ATTORNEY OPINION N0. 76-11 December 7, 1976 SUBJECT: Conflict of Interest--Redevelopment Commission REQUESTED BY: Executive Director, Redevelopment Agency OPINION BY: Keith L. Gow, City Attorney Richard E. Lay, Deputy QUESTION: What conflict of interest problems are presented to a Member of the Redevelopment Commission who also is a real estate salesman with sale oppor- tunities in the project area? ANSWER: The Member should make immediate disclosure of any right he may acquire to receive a sales commission from sale of property anywhere in the project area. The Member should disqualify himself from partici- pating in any decision to be made by the Redevelop- ment Commission which could affect the purchase price of any property in which either the Member or the broker with whom he is associated has obtained a right to receive brokerage fees or sales commission and the purchase price of the property has not yet been fixed. I GENERAL Both the Community Redevelopment Law (Health and Safety Code Sections 33130-33130.5) and the Political Reform Act of 1974 (Government Code Sections 87100-87312) impose conflict of inter- est requirements on members of the Redevelopment Commission. The two laws set forth requirements which are quite distinct from each other and which must be analyzed separately. The Redevelopment Law contains two primary restrictions: (1) an absolute prohibition against acquisition of "any interest in any property within a project area;" and (2) a requirement that a Redevelopment officer immediately disclose any property in the project area which he "owns" or in which he has "any direct or indirect financial interest." The Political Reform Act, on the other hand, is, for the present time, concerned only with insuring that public officials