Cal. Health and Safety Code § 33515

(a) A redevelopment agency shall not, either directly or indirectly, use its funds to file or maintain an action or proceeding in either of the following circumstances: (1) Against a public agency that does not have jurisdiction to conduct its governmental activities within the jurisdiction of the redevelopment agency. (2) The subject matter of the action involves real property outside the jurisdictional boundaries of the redevelopment agency. (b) The prohibition in subdivision (a) shall not preclude a redevelopment agency from using its funds to: (1) Defend itself against any action. (2) File or maintain an action against a public agency or private entity regarding the interpretation or enforcement of a written agreement between the redevelopment agency and that public agency or private entity. (c) No funds of a redevelopment agency shall be loaned or granted to any person, corporation, or public agency to finance, in whole or in part, an action the financing of which by a redevelopment agency is prohibited by subdivision (a). In addition, a redevelopment agency shall not borrow funds from its community or any other source to file or maintain an action which is prohibited by subdivision (a). (d) Nothing in this section shall prohibit a community from filing or maintaining an action on behalf of the community and its redevelopment agency as long as funds of the redevelopment agency are not used, either directly or indirectly, on behalf of the lawsuit. (e) For purposes of this article: (1) “Finance” includes, but is not necessarily limited to, the payment of filing fees, attorneys’ fees, service fees, expert witness fees, consultants’ fees, or any other expenses or costs incurred in connection with an action. (2) “Public agency” includes a local agency as defined in Section 54951 of the Government Code and includes a joint powers agency or authority and a redevelopment agency.