BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 580|
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UNFINISHED BUSINESS
Bill No: SB 580
Author: Liu (D), et al.
Amended: 8/15/16
Vote: 27 - Urgency
SENATE TRANS. & HOUSING COMMITTEE: 10-0, 4/21/15
AYES: Beall, Cannella, Allen, Bates, Galgiani, Leyva, McGuire,
Mendoza, Roth, Wieckowski
NO VOTE RECORDED: Gaines
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/4/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SENATE FLOOR: 36-0, 5/18/15
AYES: Allen, Anderson, Bates, Beall, Block, Cannella, De León,
Fuller, Gaines, Galgiani, Hancock, Hernandez, Hertzberg, Hill,
Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire,
Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen,
Nielsen, Pan, Roth, Runner, Stone, Vidak, Wieckowski, Wolk
NO VOTE RECORDED: Berryhill, Hall, Pavley
ASSEMBLY FLOOR: 79-0, 8/18/16 - See last page for vote
SUBJECT: Surplus residential property: affordable housing:
historic buildings
SOURCE: Author
DIGEST: This bill makes changes to the Roberti Act governing
the sale of surplus properties in the State Route (SR) 710
corridor.
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Page 2
Assembly Amendments state that the net proceeds from a
subsequent sale of surplus residential property shall be
deposited into an Affordable Housing Trust Account to benefit
families of low and moderate income residing exclusively in
Pasadena, South Pasadena, Alhambra, La Canada Flintridge, and
the 90032 postal ZIP code and add an urgency clause.
ANALYSIS:
Existing law:
1) 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.
2) Establishes, pursuant to the Roberti Act, 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:
a) First, at fair-market value (market rate) to all
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Page 3
single-family residences presently occupied by the former
owners.
b) Second, at an affordable price to current low- or
moderate-income occupants who meet minimum
length-of-occupancy standards.
c) 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.
d) Fourth, at market rate to present occupants in good
standing, next to former tenants, and lastly to persons who
intend to be owner-occupants.
3) Expedites, pursuant to SB 416 (Liu, Chapter 468, Statutes of
2013), 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:
1)Requires all non-historic surplus residential properties that
are not purchased by former owners or the present occupants to
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Page 4
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.
3)Requires the net proceeds from a subsequent sale of surplus
residential property shall be deposited into an Affordable
Housing Trust Account to benefit families of low and moderate
income residing exclusively in Pasadena, South Pasadena,
Alhambra, La Canada Flintridge, and the 90032 postal ZIP code.
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.
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Page 5
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.
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, this 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.
This 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 Roberti 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
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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 historical 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
bill will allow nonprofit entities to purchase and convert an
otherwise dilapidated home into a community park or other
neighborhood use.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
According to the Assembly Appropriations Committee, minor
one-time costs to Caltrans to update regulations regarding the
sale of surplus property in the SR 710 corridor. (State Highway
Account)
SUPPORT: (Verified8/18/16)
None received
OPPOSITION: (Verified8/18/16)
None received
ASSEMBLY FLOOR: 79-0, 8/18/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,
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Page 7
Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,
Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth
Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,
Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper,
Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine,
Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty,
Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell,
Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas,
Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner,
Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Roger Hernández
Prepared by:Alison Dinmore / T. & H. / (916) 651-4121
8/19/16 19:21:45
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