According to the ruling documents, Assembly Bill 1X 26 was in response to a declared state fiscal emergency this past summer 2011. The California Legislature enacted measures "intended to stabilize school funding by reducing or eliminating the diversion of property tax revenues from school districts to the state's community redevelopment agencies."

According to a statement by Governor Jerry Brown: "Today's ruling by the California Supreme Court validates a key component of the state budget and guarantees more than a billion dollars of ongoing funding for schools and public safety."

Here's an excerpt on the ruling to eliminate the Redevelopment Agencies in California: "Assembly Bill 1X 26, the dissolution measure, is a proper exercise of the legislative power vested in the Legislature by the state Constitution. That power includes the authority to create entities, such as redevelopment agencies, to carry out the state's ends and the corollary power to dissolve those same entities when the Legislature deems it necessary and proper."

So what does a redevelopment agency do?

They were created in 1945 to help eliminate blight from communities by collecting property taxes increases from these areas. In turn, they take this money and reinvest it back into the community with projects that would get rid of blight and enhance the area.

So what did this mean for the NoHo Arts District?

Since 1979, the CRA has invested in select local arts and civic groups, street medians, façade improvement programs, the colored cross walks, the buildings along the 5200 block of Lankershim Blvd., NoHo Commons, a large amount of housing projects, the NoHo Gateway and many more. You can visit their website HERE to find out what projects they've worked on in the North Hollywood area.

For more information on Assembly Bill 1X 26 and to learn more about Assembly Bill 1X 27, visit the LA Weekly blogs