You got it wrong. Since when does a conservative advocate doing away with local control. You might not like what your local city council via its redevelopment agency is doing, but at least at the local level you have a fighting chance to correct the situation.
This take from the cities simply puts more money in Sacramento’s hands to spend - unless you think they will use it responsibly to reduce the deficit?
You are corect that a side benefit will be to reduce the amount of money that cities are required to spend on low income housing using redevelopment agency funds. The smart cities will use these funds to send to the state.
In case you are not aware, that low income housing is a state requirement imposed on cities out of Sacramento.
A lot of money or redevelopment was raised by bonds. Be warned those will be the first to default if cities go broke(they are now).