The Redevelopment Agency of the City of Oroville was established in 1980 to provide affordable housing, revitalize the community, eliminate blight, and fuel economic growth through focused reinvestment of local funds back into local projects and programs that supported job growth and private investment.

Over the years, the Agency was active in implementing housing programs, business incentive programs, commercial improvement programs, planning and development projects, capital improvement projects, and property acquisition in the Project Areas. Additionally, the Agency funded other activities such as graffiti abatement, code enforcement and design review activities to alleviate physical blighting conditions within the Project Areas.

On June 29, 2011, Governor Brown signed Assembly Bill 1X27 (AB 1X 26) eliminating redevelopment agencies throughout the State and Assembly Bill 1X 27 (AB 1X 27), allowing for a Voluntary Alternative Redevelopment Program by which Agencies could avoid elimination by agreeing to voluntary payments to the State. On July 18, 2011, the California Redevelopment Association and the League of California Cities filed a lawsuit against the State of California in response to the passage of AB 1X 26 and 27.

On December 29, 2011, the Supreme Court upheld the major provisions of AB 1X 26 and invalidated AB 1X 27 in its entirety.  The effect of the ruling is that redevelopment agencies throughout the State have been abolished and will not be able to be resurrected under the provisions of AB 1X 27. As part of the Court ruling, certain time frames for dissolution activities were extended and the dissolution of the Agency became effective on January 30, 2012. The City of Oroville is the Successor Agency to its Redevelopment Agency pursuant to Council actions taken on January 9, 2012.

While the wind down of the Redevelopment Agency has already been initiated through the cancelation of funding for graffiti abatement, code enforcement, new commercial improvement projects, and housing grants, there are still active projects that must be completed. Additionally, the Redevelopment Agency has many properties that were acquired to eliminate blight and facilitate economic growth. These properties are either under contract for development, awaiting development, or are intended to be transferred to the City for their continued use as public facilities. The wind down activity will be overseen by an Oversight Board comprised of individuals appointed by various government agencies and the City of Oroville as Successor Agency to the former Redevelopment Agency.