BILL ANALYSIS                                                                                                                                                                                                    



                                                                     SB 580  


                                                                    Page  1





          Date of Hearing: July 8, 2015  


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 580  
          (Liu) - As Introduced February 26, 2015


           ----------------------------------------------------------------- 
          |Policy       |Housing and Community          |Vote:|7 - 0        |
          |Committee:   |Development                    |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
           ----------------------------------------------------------------- 


          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY: This bill would make changes to the Roberti Act, which  
          governs the sale of surplus property in the corridor of state  
          highway route (SR) 710, to specify procedures for the sale of  
          historic homes, and to allow for the resale of certain  
          properties purchased by a public housing entity, under specified  
          circumstances. 









                                                                     SB 580  


                                                                    Page  2






          FISCAL EFFECT:


          Minor one-time costs to the Department of Transportation  
          (Caltrans) to update regulations regarding the sale of surplus  
          property in the SR 710 corridor.  (State Highway Account)


          COMMENTS:


          1)Purpose.  According to the author, the Roberti Act is intended  
            to both preserve neighborhoods and provide affordable housing.  
             The author states, "Caltrans' revised regulations  
            implementing the Act, as amended by SB 416 (Liu), to a great  
            extent addressed major concerns with the originally proposed  
            regulations.  However, one issue remains that requires  
            legislative action to resolve: disposition and preservation of  
            the historical homes.  Many of these homes have remained  
            vacant and boarded up for decades.  They require substantial  
            restoration in accordance with historical designation  
            protocols.  Even if it were economically feasible to restore  
            and convert a property into affordable housing, it would  
            likely be too expensive for an affordable housing owner to  
            maintain. Amending the Act to allow cities to buy and flip  
            homes, both historical and otherwise, will provide a financial  
            incentive to 'do it right,' generate more affordable housing  
            than might otherwise be created, and preserve neighborhoods  
            and community historical assets."


          2)Background.  Under existing law, whenever Caltrans determines  
            that real property acquired for highway purposes is no longer  
            necessary, that property may be sold or exchanged upon terms,  
            standards, and conditions established by the California  
            Transportation Commission (CTC).  Proceeds from the sale are  
            returned to the State Highway Account.  If a proposed state  
            highway route location is rescinded, existing law requires  








                                                                     SB 580  


                                                                    Page  3





            Caltrans to sell any excess real property acquired for the  
            rescinded route location and use the proceeds to fund the  
            state highway project that is proposed as the alternative to  
            the rescinded route.



            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  
            single-family residences in a specified priority order. The  
            Roberti Act further requires that proceeds from the sale of  
            surplus residential properties in the SR 710 corridor must be  
            used for providing repairs to other properties in the corridor  
            prior to sale and for allocation by the CTC to fund projects  
            located in Pasadena, South Pasadena, Alhambra, La Canada  
            Flintridge, and the 90032 postal ZIP code, as specified.  The  
            Los Angeles County Metropolitan Transportation Authority must  
            submit a proposed program of projects to be funded with these  
            proceeds, and CTC has final authority to approve these local  
            projects.  No funds can be used to advance or construct any  
            proposed SR 710 tunnel. 





            For decades, Caltrans has proposed extending SR 710 to close a  
            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.  Beginning in 1953, when the location of the SR 710  
            Gap Closure Project was originally identified, Caltrans  
            acquired nearly 600 properties in the corridor with the intent  
            to eventually remove structures and construct the freeway  
            project.  The proposed project has engendered considerable and  
            ongoing controversy over the years, evoking both strong  
            support and opposition from various parties, and has been the  
            subject of numerous lawsuits.  Caltrans has been an unwilling  








                                                                     SB 580  


                                                                    Page  4





            long-term property manager for years, which was the subject a  
            2012 Bureau of State Audits report that criticized Caltrans'  
            management of over 400 rental properties.  Among the over 460  
            homes that Caltrans currently owns in the corridor, 97 have  
            been declared to be of federal or state historical  
            significance.  


          3)Prior Legislation.


             a)   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.



             b)   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.



             c)   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. 



          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081











                                                                     SB 580  


                                                                    Page  5