BILL ANALYSIS Ó
SB 580
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Date of Hearing: July 8, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 580
(Liu) - As Introduced February 26, 2015
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|Policy |Housing and Community |Vote:|7 - 0 |
|Committee: |Development | | |
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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.
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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highway route location is rescinded, existing law requires
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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
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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
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