BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: SB 580 Hearing Date: 4/21/2015
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|Author: |Liu |
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|Version: |2/26/2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Alison Dinmore |
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SUBJECT: Surplus properties in the State Route 710 corridor
DIGEST: This bill makes changes to the Roberti Act governing
the sale of surplus properties in the State Route (SR) 710
corridor.
ANALYSIS:
Existing law identifies the California state highway system
through a description of segments of the state's regional and
interregional roads that the Department of Transportation
(Caltrans) owns and operates. Under current law, whenever
Caltrans determines that any real property acquired for highway
purposes is no longer necessary, it may sell or exchange the
property upon terms, standards, and conditions established by
the California Transportation Commission (CTC). Proceeds from
the sale are returned to the State Highway Account.
For decades, Caltrans has proposed extending SR 710 to close a
roughly 4.5 mile unconstructed gap in the freeway between SR 10
in Los Angeles and SR 710 in Pasadena. This gap affects the
cities of Alhambra, Pasadena, South Pasadena, and a portion of
Los Angeles. The project has been in the planning stage since
1953 for a variety of reasons related to the federal
environmental review process. Caltrans currently owns over 460
homes within the original surface route corridor, 97 of which
are declared to be of federal or state historical significance.
More than 400 homes are occupied by tenants for whom Caltrans
serves as landlord.
SB 580 (Liu) Page 2 of ?
Existing law, known as the Roberti Act, establishes priorities
and procedures for the disposition of surplus residential
properties in the SR 710 corridor. Under the Act, Caltrans must
offer surplus property in the following priority order:
1.First, at fair-market value (market rate) to all single-family
residences presently occupied by the former owners.
2.Second, at an affordable price to current low- or
moderate-income occupants who meet minimum length-of-occupancy
standards.
3.Third, to public or private housing-related entities at a
price necessary to make the housing affordable to present
tenants and households of low or moderate income. The sale is
conditioned upon the entity rehabilitating and developing the
property as a limited-equity cooperative housing with first
right of occupancy to present tenants. If cooperative housing
is not feasible, the purchasing agency shall use the property
for low- and moderate-income rental or owner-occupied housing,
with the first right of occupancy to present tenants.
4.Fourth, at market rate to present occupants in good standing,
next to former tenants, and lastly to persons who intend to be
owner-occupants.
In 2013, SB 416 (Liu, Chapter 468) expedited the sale of surplus
residential properties in the cities of Los Angeles, South
Pasadena, and Pasadena that do not fall within the boundaries of
any alternate route being considered in the North Route 710
Project Draft Environmental Impact Report/Environmental Impact
Statement. SB 416 also removed the originally proposed surface
route from further consideration and increased opportunities for
current and former tenants to purchase surplus properties owned
by Caltrans. Caltrans recently published and is presently
receiving public comments on draft regulations that set forth
procedures to dispose of surplus residential properties
originally acquired for the SR 710 extension in accordance with
the Roberti Act.
This bill makes changes to the Roberti Act governing the sale of
surplus properties in the SR 710 corridor. Specifically, this
bill:
SB 580 (Liu) Page 3 of ?
1.Requires all non-historic surplus residential properties that
are not purchased by former owners or the present occupants to
be offered to a public or private housing-related entity at a
reasonable price to allow the property to be used as
affordable housing for low- and moderate-income individuals.
If that housing entity is a public entity, the entity may
resell the property, and the profits realized from the sale
must be used for the construction of affordable housing within
its jurisdiction. If the housing entity is a private entity,
the property must be developed as limited-equity cooperative
housing, with first right of occupancy to present occupants.
If development of a cooperative is not feasible, the
purchasing entity shall use the property for low- and
moderate-income rental or owner-occupied housing, with first
right of occupancy to the present tenants.
2. Requires all historic surplus residential properties that
are not purchased by former owners or the present occupants to
be offered first to a housing-related public entity or a
nonprofit private entity dedicated to rehabilitating and
maintaining the home for public and community access and use.
COMMENTS:
1. Purpose. According to the author, the purpose of the
Roberti Act was to preserve thousands of mostly low- to
moderate-income homes. Caltrans published regulations in
April 2014 to implement the amended Roberti Act (pursuant to
SB 416, Chapter 468, Statutes of 2013) and expedite the sale
of homes in the SR 710 corridor. After substantial input from
current tenants and the impacted cities, stakeholders, and
elected officials, earlier this year Caltrans issued revised
regulations. The revised regulations address major concerns
with the originally proposed regulations. One issue remains,
however, that requires legislative action to resolve:
disposition and preservation of designated historical homes.
Many of these historical homes remained vacant and boarded up
for decades and require substantial restoration. Even then,
they may be too large and costly for conversion into
affordable housing or for an affordable housing owner to
maintain. Amending the bill to allow cities to buy and sell
homes, both historical and otherwise, will provide a financial
incentive to generate more affordable housing and preserve
neighborhoods and community historical assets.
SB 580 (Liu) Page 4 of ?
2. Priority of sale for non-historic homes. The Roberti Act
establishes a priority of sales for the disposal of surplus
rental property within the SR 710 corridor. The Act states
that after a non-historic surplus property has been offered to
former owners and present occupants, it shall then be offered
to a public or private housing-related entity at a reasonable
price to establish affordable housing for low- and
moderate-income people. This bill also allows a public
housing-related entity to resell the property and requires
profits realized from that sale to fund the construction of
affordable housing within its jurisdiction. If the housing
entity is a private entity, the bill states that the property
shall be developed as a cooperative with first right of
occupancy to the present tenants. If the development of a
cooperative is not feasible, the private entity shall use the
property for low- and moderate-income rental or owner-occupied
housing with first right of occupancy to the present tenants.
The bill seeks to realize the original intent of the Roberti
Act by preserving and creating affordable housing for low- and
moderate-income individuals. The changes to the Act will allow
a public housing entity to purchase, rehabilitate, and resell
a home and requires the profits from that sale to be used for
building affordable housing in the same area.
3. Historic home sales. This bill establishes a priority of
sale of surplus historic homes in the SR 710 corridor. After
historic surplus property has been offered to former owners
and present occupants, that property shall be offered first to
a public housing-related public entity or other public entity
at a reasonable price for purposes of rehabilitating and
reselling the home at fair market value. The bill requires
profits from that sale to be dedicated to the construction of
affordable housing in that area. Next, the home will be
offered to a non-profit dedicated to rehabilitating and
maintaining the home for public and community access.
As noted above, this bill seeks to realize the original intent
of the Roberti Act. Many of these historic homes are in such
a state of disrepair that rehabilitation of the existing
structure may not be economically feasible. Where possible,
the bill gives priority to public entities to rehabilitate the
home for resale and use the profits to construct affordable
housing in the entities' jurisdiction. Alternatively, the
SB 580 (Liu) Page 5 of ?
bill will allow nonprofit entities to purchase and convert an
otherwise dilapidated home into a community park or other
neighborhood use.
4. Caltrans regulations. Caltrans issued revised draft
regulations earlier this year to accommodate public input and
is presently receiving feedback from the public on those
regulations. This bill is a work in progress; once the public
comment period has ended, the author is committed to working
with Caltrans to make any necessary changes to the bill to
address outstanding issues raised from the public feedback.
Related Legislation:
SB 416 (Liu, Chapter 468, Statutes of 2013) - Expedited the sale
of surplus residential properties in the cities of Los Angeles,
South Pasadena, and Pasadena that do not fall within the
boundaries of any alternate route being considered in the North
State Route 710 Project Draft Environmental Impact
Report/Environmental Impact Statement.
SB 204 (Liu, 2012) - Would have required the sale of
Caltrans-owned surplus properties in the North Route 710
Project. This bill was vetoed by the Governor.
AB 1617 (Liu, 2006) - Would have given cities priority over
affordable housing entities to purchase, rehabilitate, and
resell Caltrans-owned surplus residential properties in the
North State Route 710. This bill failed passage in the Senate
Transportation and Housing Committee.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes
Local: No
POSITIONS: (Communicated to the committee before noon on
Wednesday,
April 15, 2015.)
SUPPORT:
None received.
OPPOSITION:
SB 580 (Liu) Page 6 of ?
None received.
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