Report 2011-120 Recommendation Responses
Report 2011-120: California Department of Transportation: Its Poor Management of State Route 710 Extension Project Properties Costs the State Millions of Dollars Annually, Yet State Law Limits the Potential Income From Selling the Properties (Release Date: August 2012)
Recommendation for Legislative Action
To ensure that the State properly manages its resources, the Legislature should consider amending the state law known as the Roberti Bill to allow Caltrans to sell SR 710 properties that have a high market value at fair market prices
Description of Legislative Action
Senate Bill 416 (Chapter 468, Statutes of 2013) enacts changes to the Roberti Bill to authorize the sale of state-owned surplus residential properties to income-qualified buyers in as is condition at the buyers request. The statute also creates the SR 710 Rehabilitation Account into which Caltrans must deposit proceeds from Roberti Bill sales of properties, continuously appropriates funds in the SR 710 Account to make required repairs to homes being purchased by income-qualified buyers, and limits the total funds that can be maintained in the account to $500,000.
- Legislative Action Current As-of: February 2014
California State Auditor's Assessment of Annual Follow-Up Status: Legislation Enacted
Description of Legislative Action
SB 416 (Chapter 468, Statutes of 2013) was signed by the governor on October 1, 2013, and amends the Roberti Bill as follows:
-Provides that the "fair market value" for surplus residential properties must reflect the as-is condition of the property and take into account any repairs needed to make the property habitable.
-Allows Caltrans, at the request of an income-qualified person, to offer a residence or property for sale in "as-is" condition.
-Gives first priority for purchase of certain surplus residential properties to current tenants in good standing with all rent current and paid in full, rather than any current tenant, and second priority to former occupants who were in good standing at the time they left the home, with priority given to the most recent tenants first, before the home can be offered to purchasers who intend to be owner-occupants.
-Gives tenants of non-residential properties who are in good standing priority to purchase the property at fair market value.
-Creates the SR-710 Rehabilitation Account and requires Caltrans to deposit proceeds from Roberti Bill sales into the account.
-Continuously appropriates funds in the SR-710 Rehabilitation Account for the purpose of making required repairs to homes being purchased by income-qualified residents, and limits the total funds that can be maintained in the account to $500,000.
-Requires any funds exceeding the $500,000 amount in the SR-710 Rehabilitation Account or remaining in the account after the last property is sold, less any reimbursements due to the federal government, be transferred to the State Highway Account to be used by the California Transportation Commission exclusively to fund projects located in Pasadena, South Pasadena, Alhambra, La Caņada Flintridge, and the 90032 postal ZIP Code.
- Legislative Action Current As-of: October 2013