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Senator Liu’s 710 Freeway Properties Bill Approved by State Senate

Published on Tuesday, September 10, 2013 | 5:20 pm
 

California State Sen. Carol Liu’s bill on 710 freeway properties has been approved by the Senate on a 38-0 votation and was sent to Gov. Jerry Brown, who has 30 days to sign or veto the proposed law.

The bill would help Caltrans sell state-owned houses no longer needed for construction of a proposed State Highway Route 710 extension in Los Angeles, Alhambra, South Pasadena, and Pasadena.

SB 416 was co-authored by assemblymembers Chris Holden of D-Pasadena and Mike Gatto of D-Burbank.

“This bill gets Caltrans out of the real estate management business, generate revenues for local transportation projects, and returns these properties to our local tax rolls,” said Liu, who represents about 930,000 people in the 25th Senate District including Burbank, Glendale, Pasadena and La Cañada Flintridge. “I want to thank Mr. Gatto and Mr. Holden for their support of this important measure,” Liu said. SB 416 passed the Assembly 77-0 last week.

The Assembly unanimously voted in favor of the passage of the bill last week with 77-0 votation.

The North Route 710 project comprise a 4.5-mile, uncompleted segment transects neighborhoods and communities. Caltrans owns over 500 homes, about 400 of which are occupied by tenants for whom Caltrans serves as landlord, but many houses remain vacant and in disrepair.

Liu said that in the last decade, attention has shifted to the construction of a tunnel to connect the 710 freeway between State Routes 10 and 210 because it would require less surface area and fewer properties to be destroyed. Liu suggested that Caltrans declare all other properties excess and sell them, thereby returning them to private ownership and the tax rolls.

However, Roberti Bill requires the state to pay for costly repairs prior to any sale. It requires that homes first be offered for sale at an affordable price to eligible tenants and then to an affordable housing entity. Remaining properties are to be sold at fair market value. Under the law, Caltrans must make repairs to the property required by lenders or government assistance programs or provide a comparable replacement dwelling, Liu said.

SB 416 would retain Caltrans’ authority to offer a replacement dwelling, would revise the definition of “fair market value” to reflect the existing “as is” condition of the property, and would delete the requirement for costly repairs to be made prior to sale. SB 416 would also give first right of refusal for purchase of residential properties at fair market value to former tenants in good standing and for purchase at fair market value to tenants of non-residential properties before they are offered on the open market.154

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