BILL ANALYSIS Ó AB 1880 Page 1 Date of Hearing: April 12, 2016 ASSEMBLY COMMITTEE ON VETERANS AFFAIRS Jacqui Irwin, Chair AB 1880 (Irwin) - As Amended March 9, 2016 SUBJECT: State real property: reversion SUMMARY: This bill would authorize the Director of General Services to revert a specified parcel of state real property to the City of San Buenaventura pursuant to these provisions. This bill would make legislative findings and declarations as to the necessity of a special statute for the City of San Buenaventura. EXISTING LAW: The law regarding state surplus property may be found at Government Code section 11000 - 11019.11. FISCAL EFFECT: Unknown at this time. COMMENTS: According to the Author: In 2004, the City of Ventura deeded land to the state in order AB 1880 Page 2 to allow the state to build a veterans' home. At the time, the state had funding to build a 100 bed facility, but there was a possibility that more funding would become available; so the deed contemplated an expansion of the facility onto an additional 11 acres. If the state did not build this expansion by 2020, these 11 acres would revert back to the city. Currently, the state has no plans or resources to build an expansion. The City would like this property back as soon as possible so that they can compete for Prop 41 funding to build veteran housing. CalVet and DGS are currently working with the city to change the terms of the deed. The purpose of this bill is to ensure that CalVet and DGS work in good faith to return the property as soon as possible. According to the City of Buenaventura: ? Through the entitlement approvals for the adjacent Archstone Community, this land was transferred to the City of Ventura through an executed development agreement which required the land to be subsequently transferred to the State of California for the construction of a Veterans' Facility. This transfer to the State was completed in 2003. The State's interest in the property will revert to City ownership if construction of a minirnum 100 space Veterans' care facility on the property is not commenced by January 1, 2020. Although a 60 space Veterans' Home has been constructed, the State has not yet met this obligation and does not expect to do so before this deadline. Therefore, it is expected that the property will revert to City ownership on January 1, 2020. The City could simply wait until this deadline passes and has control of the property to pursue additional Veterans' facilities at that time. However, there is clearly a need for additional veterans' housing in the Tri-County Area (Ventura, Santa Barbara and San Luis Obispo) which this property serves. Additionally, the voters of California passed AB 1880 Page 3 Proposition 41which provides up to $600 million in capital funds for the construction of additional veterans' housing in California. These funds are being allocated now. The second Notice of Funding Availability (NOFA) was just issued and a third is expected in mid-2016. These funds will most likely be exhausted by 2020. ? Should this land transfer occur, the City could then take a leadership role in seeking a qualified affordable housing partner to pursue Veterans' housing and Proposition 41funding while these opportunities still exist. Although this issue has not been a City Council priority, the timing of the Proposition 41 funds makes this an important issue for the City staff to devote some time to. ? CalVet does not have an official position on this bill. However, CalVet has informed staff that it does not have or anticipate having any plans to expand the veterans home in Ventura. The most recent round of funding for VHHP was oversubscribed and there is no current plan for additional funding, so, there is some evidence to support Ventura's concern that there is a limited opportunity for taking advantage of the VHHP. This property is of very limited use to the state. It should not be subject to the surplus property process because it may only be used for expansion of the veterans home or else it reverts back to City ownership. CalVet does not plan to expand the veterans home. The bill simply causes the reversion to happen when the bill takes effect, as opposed to waiting approximately 4 years for time on CalVet's option to expand to run out. REGISTERED SUPPORT / OPPOSITION: AB 1880 Page 4 Support None on File. Opposition None on File. Analysis Prepared by:John Spangler / V.A. / (916) 319-3550