BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 576 Hearing Date: 6/28/2016
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|Author: |Ting |
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|Version: |6/21/2016 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Alison Dinmore |
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SUBJECT: State highways: excess property
DIGEST: This bill encourages Caltrans to find property with a
maintenance facility to be excess and to sell that excess
property at fair market value to a housing developer for the
purposes of adding both market rate and very low-, low-, and
moderate-income rental units if a portion of the Caltrans
property is immediately contiguous to the housing project and is
not independently developable, and if specified conditions are
met.
ANALYSIS:
Existing law states that, whenever Caltrans determines that
property acquired by the state for highway purposes is no longer
necessary for those purposes, Caltrans may sell the property,
subject to terms, standards, and conditions established by the
California Transportation Commission (CTC).
This bill:
1) Encourages Caltrans to find property with a maintenance
facility to be excess and to sell that excess property at fair
market value to a housing developer for the purposes of adding
both market rate and very low-, low-, and moderate-income
rental units if a portion of the Caltrans property is
immediately contiguous to the housing project and is not
independently developable, at the owner's request, provided
the following conditions are met:
AB 576 (Ting) Page 2 of ?
a) A fair market value appraisal is prepared for the portion
of the property to be sold. The determination of the fair
market value shall be based on the value of the property at
its highest and best use. Caltrans and the contiguous
property owner shall jointly agree upon a professional,
qualified appraiser to determine a fair market value for
the property.
b) The purchaser of the property shall ensure that, of the
incremental residential units constructed as a result of
the acquisition of the property, 25% of the units, or
whatever percentage of the inclusionary zoning ordinance of
the city in which the project is located requires, shall be
very low-income, low-income, or moderate-income rental
units, and that constructing housing units on the acquired
property is consistent with the general plan of the
jurisdiction in which the property is located.
c) The purchaser of the property shall agree to pay for the
reconstruction of any existing buildings located entirely
or in part on the property being acquired, at a suitable
location as determined by Caltrans on the remaining
property owned by Caltrans. The reconstruction shall be of
like kind in material and functionality and the cost of the
replacement shall be deducted from the fair market value of
the land.
d) This sale shall not be finalized until the (CTC) has
certified that the terms and conditions listed above have
been met.
2) This bill also requires Caltrans and the CTC to complete any
transaction on or before January 1, 2020.
COMMENTS:
1)Purpose. According to the author, California is in the midst
of an unprecedented housing affordability crisis caused by a
severe lack of new housing construction, both market rate and
affordable. In the Bay Area, there is not enough housing to
keep pace with the growing economy. Facilitating more private
housing development is needed to make housing more affordable
for working families. Increasing the supply can help
alleviate competition for the severe shortage of housing and
AB 576 (Ting) Page 3 of ?
reduce housing costs. This bill encourages Caltrans to sell a
portion of a maintenance facility for the purposes of adding
market rate and affordable housing to a proposed housing
project if the property is next to the project, the property
is not independently developable, and the sale is at market
rate.
2) Excess property. Under existing law, Caltrans may determine
that its property is no longer needed for state purposes and
may sell the excess property, subject to terms set by the CTC.
Excess land is sold at auction, either by an oral public
auction or a sealed bid auction. Under certain circumstances,
excess property may be offered for sale directly to adjoining
property owners. It may also be offered for direct sale to
public agencies if the property is to be used for a public
purpose.
3) Words of encouragement. Existing law already permits
Caltrans to sell its excess property. This bill encourages
Caltrans to find property in excess for the purposes of
selling it to a housing developer if the housing project is
immediately contiguous to the project and is not independently
developable. Given that Caltrans already has discretion to
sell its excess property, the committee may wish to consider
why a bill merely providing further "encouragement" is
necessary.
4) San Francisco housing development. While this bill applies
statewide, it should be noted that there is a housing
developer in San Francisco that is eager to purchase land
adjoining its property that is currently owned and utilized by
Caltrans. The Caltrans property is not excess; in fact, there
is a maintenance facility operating on it. The committee was
not able to obtain further information given that the bill was
gut-and-amended a week before this hearing, but understands
that the housing developer has been in contact with Caltrans
about this property. The committee may wish to consider the
need for a statewide bill when the apparent need is for a
single project.
5) Gutted and amended. This bill was gut-and-amended from a
bill dealing with the Building Standards Commission on June
21, 2016.
Assembly Votes:
AB 576 (Ting) Page 4 of ?
Floor:77-0
Appr:17-0
B&P: 14-0
Prior votes not relevant.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes
Local: No
POSITIONS: (Communicated to the committee before noon on
Wednesday,
June 22, 2016.)
SUPPORT:
None received
OPPOSITION:
None received
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