BILL ANALYSIS Ķ
SB 580
Page 1
SENATE THIRD READING
SB
580 (Liu)
As Amended September 4, 2015
Majority vote
SENATE VOTE: 36-0
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+-----------------------+---------------------|
|Housing |7-0 |Chau, Steinorth, | |
| | |Burke, Chiu, Beth | |
| | |Gaines, Lopez, Mullin | |
| | | | |
|----------------+-----+-----------------------+---------------------|
|Appropriations |14-0 |Gomez, Bigelow, Bloom, | |
| | |Bonta, Calderon, | |
| | |Chang, Eggman, | |
| | |Gallagher, Eduardo | |
| | |Garcia, Jones, Quirk, | |
| | |Rendon, Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Makes changes to the Roberti Act (Act) governing the
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sale of surplus properties in the State Route (SR) 710 corridor.
Specifically, this bill:
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,
subject to the following:
a) Provides that 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.
b) Provides that 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 surplus historic homes that are not purchased by
former owners or the present occupants to be offered first to
a housing-related public entity, for purposes of
rehabilitating and reselling the home at fair market value, or
a nonprofit private entity dedicated to rehabilitating and
maintaining the home for public and community access and use.
3)Defines "historic home" as property that is listed on, or for
which an application has been filed for listing on, at least
one of the following by January 1, 2015:
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a) The California Register of Historical Resources, as
established pursuant to Public Resources Code Division 5,
Chapter 1, Article 2;
b) The National Register of Historic Places, as established
pursuant to 54 United States Code (US.C.) Chapter 3021; or
c) The National Register of Historic Places, as previously
established pursuant to the National Historic Preservation
Act (16 U.S.C. Sections 470 et seq.).
4)Creates the Affordable Housing Trust Account within the
Housing Finance Fund.
5)Provides that net proceeds from a subsequent market sale of
surplus residential property sold pursuant to regulations
implementing the Roberti Act at an affordable or reasonable
price, as specified in regulations adopted by the Department
of Transportation (Department), shall be deposited into the
Affordable Housing Trust Account within the Housing Finance
Fund. The moneys in this account shall, upon appropriation by
the Legislature, be made available to the California Housing
Finance Agency (CalHFA) to carry out any authorized activities
for the benefit of persons and families of low and moderate
income residing exclusively in Pasadena, South Pasadena,
Alhambra, La Caņada Flintridge, and the 90032 postal ZIP Code.
The priority for distribution of proceeds from subsequent
sales shall be established pursuant to regulations adopted by
the Department.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, minor one-time costs to the Department of
Transportation (Caltrans) to update regulations regarding the
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sale of surplus property in the SR 710 corridor. (State Highway
Account)
COMMENTS:
Background: 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.
Purpose of this bill: The author points out that, according to
Senator Roberti, the Act was intended both to preserve
neighborhoods and provide affordable housing. According to the
author, "Caltrans revised regulations to implement 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."
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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 must 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, or to a non-profit dedicated to
rehabilitating and maintaining the home for public and community
access. If the home is sold by a public-housing-related public
entity, profits from that sale must be dedicated to the
construction of affordable housing in that area.
The author notes that many of these historic homes are in such a
state of disrepair that rehabilitation of the existing structure
may not be economically feasible. After the property has been
offered to former owners and present occupants, this 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, this bill will allow
nonprofit entities to purchase and convert an otherwise
dilapidated home into a community park or other neighborhood
use.
Priority of sale for non-historic homes: The 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, this
bill requires the property to be developed as a cooperative with
first right of occupancy to the present tenants. If the
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development of a cooperative is not feasible, the private entity
must use the property for low- and moderate-income rental or
owner-occupied housing with first right of occupancy to the
present tenants.
Affordable Housing Trust Account: Assembly Floor amendments
create the Affordable Housing Trust Account within the Housing
Finance Fund. Net proceeds from a subsequent market sale of
surplus residential property sold pursuant to regulations
implementing the Roberti Act at an affordable or reasonable
price must be deposited into the Affordable Housing Trust
Account. The moneys in this account shall, upon appropriation
by the Legislature, be made available to CalHFA to carry out any
authorized activities for the benefit of persons and families of
low and moderate income residing exclusively in Pasadena, South
Pasadena, Alhambra, La Caņada Flintridge, and the 90032 postal
ZIP Code. The priority for distribution of proceeds from
subsequent sales will be established pursuant to regulations
adopted by the Department.
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
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Transportation and Housing Committee.
Analysis Prepared by:
Rebecca Rabovsky / H. & C.D. / (916) 319-2085
FN:
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