There are 18 redevelopment agencies in California. Gov. Jerry Brown has proposed eliminating the agencies and directing their funds toward schools, police, firefighting and other services.
The 18 agencies cost taxpayers $5.5 billion each year, and represent 16 percent of the state's redevelopment spending.
Chiang called the review's findings troubling.
Different cities define blight differently. Some cities direct funds toward urban cleanup, for example, while others, like Palm Desert, used redevelopment money to renovate golf courses.
The Associated Press contributed to this report.