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