Governor Signs Senator Liu’s Bill to Sell State-Owned Houses on 710 Route

Governor Brown has signed into law a bill expediting the sale of state-owned houses that will never be needed for a proposed State Highway Route 710 extension in Los Angeles, Alhambra, South Pasadena, and Pasadena, Sen. Carol Liu announced Wednesday (October 2, 2013).

Liu authored SB 416, which streamlines the process for the California Department of Transportation to sell as surplus residential and non-residential properties that were purchased more than 50 years ago for the 710 extension route. Revenue from the sales will benefit local transportation projects, and local governments will benefit from property taxes and the restoration of neighborhoods degraded by houses that are vacant or poorly maintained.

“Caltrans can finally get out of the property management business and focus on its core mission of developing and maintaining a multi-modal transportation system to move people and goods around our state,” said Liu, D-La Canada Flintridge and a member of the Senate Transportation and Housing Committee.

Liu thanked Assemblymembers Mike Gatto, D-Burbank, and Chris Holden, D-Pasadena, who co-authored the legislation and spoke in support during Committee hearings and on the Assembly Floor.

The 4.5-mile uncompleted portion of Route 710 transects neighborhoods and communities. Caltrans owns 587 homes within the original surface route corridor. Almost 400 of these homes are occupied by tenants for whom Caltrans serves as landlord, but many houses remain vacant and in disrepair.

Existing law known as the Roberti Bill requires single-family residences to be first offered to current occupants who may qualify to purchase their homes at an affordable price. Under this law Caltrans must make repairs to the property required by lenders or government assistance programs or provide the occupants with a replacement dwelling. SB 416 gives Caltrans the ability, upon agreement with the buyer, to sell the property “as is.”

Properties not sold at an affordable price will then be offered to affordable housing entities. Per SB 416, remaining homes will be offered at fair market values that reflects their “as is” condition. Current and then former tenants in good standing will have an opportunity to purchase a home before it is offered in the open market. SB 416 also gives current tenants priority to purchase the non-residential properties they occupy.

Sen. Liu represents about 930,000 people in the 25th Senate District, which includes Pasadena, La Cañada Flintridge, Altadena, San Marino, South Pasadena, and Sierra Madre.