BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1338|
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THIRD READING
Bill No: AB 1338
Author: Hernández (D)
Amended: 6/16/11 in Senate
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 9-0, 06/22/11
AYES: Wolk, Huff, DeSaulnier, Fuller, Hancock, Hernandez,
Kehoe, La Malfa, Liu
ASSEMBLY FLOOR : 76-0, 05/26/11 - See last page for vote
SUBJECT : Redevelopment
SOURCE : Author
DIGEST : This bill requires a redevelopment agency to
obtain an appraisal from a qualified independent appraiser
to determine the property's fair market value before a
redevelopment agency acquires or purchases real property.
ANALYSIS : When condemning property, public entities must
follow the Eminent Domain Law and the state laws on
relocation assistance. The relocation assistance statutes
require public entities to appraise real property before
beginning negotiations and the property owner must be able
to accompany the appraiser who inspects the property.
These statutes protect the private property owner's
interests against public officials' condemnation powers.
This bill requires a redevelopment agency to obtain an
CONTINUED
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appraisal from a qualified independent appraiser to
determine the property's fair market value before a
redevelopment agency acquires or purchases real property.
Comments
Real estate appraisals are essential when public officials
condemn private property for public use, but they're also
valuable to both parties in negotiated purchases. Having
an independent appraiser determine a property's fair market
value protects redevelopment agencies from overpaying when
negotiating a sales price. Redevelopment officials should
exercise due diligence, especially when buying property in
volatile real estate markets. Real estate appraisals are
essential when public officials condemn private property
for public use, but they're also valuable to both parties
in negotiated purchases. Having an independent appraiser
determine a property's fair market value protects
redevelopment agencies from overpaying when negotiating a
sales price. Redevelopment officials should exercise due
diligence, especially when buying property in volatile real
estate markets.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/25/11)
California Building Industry Association
California Redevelopment Association
Housing California
Howard Jarvis Taxpayers Association
Western Center on Law & Poverty
City of West Covina
ASSEMBLY FLOOR : 76-0, 05/26/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Chesbro, Conway, Cook, Dickinson, Donnelly, Eng,
Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines,
Galgiani, Garrick, Gatto, Gordon, Grove, Hagman,
Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill,
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Huber, Hueso, Huffman, Jeffries, Knight, Lara, Logue,
Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan,
Perea, V. Manuel Pérez, Portantino, Silva, Skinner,
Smyth, Solorio, Swanson, Torres, Valadao, Wagner,
Wieckowski, Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Cedillo, Davis, Gorell, Jones
AGB:nl 6/25/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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