SB 697, as introduced, Evans. Department of Transportation: sale of excess state highway property.
Existing law provides that the Department of Transportation shall have full possession and control of the state highway system and associated real property. Existing law, if the department determines that real property, or an interest in the property, acquired for highway purposes is no longer necessary for those purposes, authorizes the department to sell or exchange the property or property interest in the manner and upon terms, standards, and conditions established by the California Transportation Commission, as specified.
This bill would make a nonsubstantive change to these provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 118 of the Streets and Highways Code
2 is amended to read:
(a) If the department determines that real property or an
4interest therein, previously or hereafter acquired by the state for
5highway purposes, is no longer necessary for those purposes, the
6department may sell, contract to sell, sell by trust deed, or exchange
7the real property or interest therein in the manner and upon terms,
P2 1standards, and conditions established by the commission. The
2payment period in a contract of sale or sale by trust deed shall not
3extend longer than 10 years from the time the contract of sale or
4trust deed is executed, and a transaction involving a contract of
5sale or sale by trust deed to private parties shall require a
6downpayment of at least 30 percent of the purchase price, except
7as follows:
8(1) For improved and unimproved real property sold or
9exchanged for the purpose of housing for persons and families of
10low or moderate income, as defined in Section 50093 of the Health
11and Safety Code, the payment period shall not exceed 40 years
12and the downpayment shall be at least 5 percent of the purchase
13price. All contracts of sale or sales by trust deed, for the purpose
14of housing for persons and families of low or moderate income
15shall bear interest. The rate of interest for the contract or sale shall
16be computed annually, and shall be the same as the average rate
17returned by the Pooled Money Investment Board for the past five
18fiscal years immediately preceding the year in which the payment
19is made. The contract of sale and sales by trust deeds shall not be
20begin delete utilizedend deletebegin insert usedend insert if the proposed
development or sale qualifies for
21financing from other sources and if the financing makes feasible
22the provision of low- and moderate-income housing.
23(2) Improved residential property sold to a local public agency
24pursuant to paragraph (1), if subsequently sold or transferred to a
25nonprofit housing organization, shall have the endorsement of the
26city in which the parcels are located, or the county if the parcels
27are located in an unincorporated area, that the housing shall remain
28at affordable housing costs to persons and families of low or
29moderate income and very low income households for the longest
30feasible time, but for not less than 15 years, as determined by the
31city or county, as applicable. By endorsing the sale, the city or
32county accepts the responsibility of ensuring the housing remains
33affordable. The local public agency shall record in the office of
34the county recorder covenants or restrictions implementing this
35subdivision.
Notwithstanding any other provision of law, the
36covenants or restrictions shall run with the land and shall be
37enforceable against the original purchaser from the department
38and successors in interest.
39(b) A conveyance under this section shall be approved by the
40commission and shall be executed on behalf of the state by the
P3 1director and the purchase price shall be paid into the State Treasury
2to the credit of any fund, available to the department for highway
3purposes, which the commission designates.
4(c) Any such real property or interest therein may in like manner
5be exchanged, either as whole or part consideration, for any other
6real property or interest therein needed for state highway purposes.
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