Sabha, Tamer
From:
Sent:
To:
Subject:
Attachments:
Christopher Sutton
Monday, July 29, 2024 12:00 PM
Sabha, Tamer; Stevenson, Garrett
2024-07-30 Pasadena Legislative Policy Committee - Items 2 & 3 2024-07-26 Caltrans Regulations Notice (black & white).pdf Some people who received this message don't often get email fronri important
Learn why this is
^] CAUTION: This email was delivered from the Internet. Do not click links or open attachments unless you know the content is safe. Report phish using the Phish Alert Button. For more information about the Phish Alert Button view article "KB0010263" on the DolT portal.
Dear Pasadena Legislative Policy Committee Members:
The Caltrans Affordable Purchase Regulations under the Roberti Law (Government Code 54235 - 54238.9) are undergoing amendments, and on 7-26-2024 Caltrans released some limited re-revised draft changes to the more extensive proposed amended regulations.
Comments now are due August 11,2024.
These proposed changes and the more extensive proposed changes released in March 2024, harm the interests of potential tenant-buyers of these properties. They also harm the interests of the three cities where these properties are located (100+ in Pasadena), (65+ in South Pasadena), (260+ in the El Sereno area of Los Angeles). The current regulations expire on 9-30-2024 under the terms of prior legislation enacted in 2021 and 2022: SB51 (El Sereno), SB381 (South Pasadena), and SB959 (Pasadena).
This Committee should amend its 7-30 agenda, discuss this matter, and recommend that the staff and City lobbyist provide a report to the City Council so that the City can submit its comments by the August 11th deadline. This matter arose since the agenda was posted and presents an urgent legislative issue that needs addressing immediately.
On April 24, 2024, a lengthy public hearing on the earlier extensive draft regulations was held by Cattrans at South Pasadena High School. Dozens of attendees provided written and oral comments and 1 objections. Caltrans Largely ignored the comments and objections. The earlier extensive proposals remain pending and were largely unaltered in response to comments.
New comments should mention Caltrans' practice of using illegal "underground regulations" which undermine the ownership-based affordable housing goals of the Robert! Law. These practices never went through the APA review process. These practices include requiring onerous and disqualifying Large down-payments from buyers (despite CaL-HFA guaranteeing 100% buyer financing of Roberti Law purchases without down-payments), among other illegal practices.
In addition, tenant-buyers and City-buyers should be allowed to construct Accessory Dwelling Units in the future on these properties. Caltrans seeks to ban future ADU's and seeks to control the future incomes of tenant-buyers. Caltrans seeks to avoid repairing the properties and shift the burden to the cities and other buyers.
Between 1950 and 2020 Caltrans destroyed over 200,000 units of California affordable housing in constructing highways and never replaced these units. Many highway routes, including the 710 and 210 in Pasadena, were specifically selected to displace residents and businesses based on their race or national origin. See SB512 (Holden - 2022) (Stats 2022 ch 940) and testimony in the 1979-1981 voting rights lawsuit against the City of Pasadena, Interdenominational Ministerial Alliance v. City of Pasadena, Los Angeles Superior Court. Caltrtans must not continue to evade its affordable housing duties under the Robert) Law.
See attached Caltrans Regulatory Notice dated 7-26-2024. - - - Christopher Sutton, attorney for United Caltrans Tenants [Release my email and telephone number in the Public Records versions of my message]. 2 l...
CALIFORNIA STATE TRANSPORTATION AGENCYGAVIN NEWSOM, GOVERNOR California Department of Transportation
DIVISION OF RIGHT OF WAY AND LAND SURVEYS
1120 N STREET, MS-37 | P.O. BOX 942873, MS-37
SACRAMENTO, CA 94273-0001
(916) 654-4790 | FAX (916) 654-6378 HY 711
www.dot.ca.gov
Vh
CaHmns
NOTICE OF MODIFICATIONS TO TEXT
OF PROPOSED REGULATIONS
Pursuant to the requirements of Government Code section 11346.8[c), and section 44 of Title 1 of the California Code of Regulations, the Department of Transportation (Caltrans) is providing notice of changes made to proposed regulations in sections 1475, 1476; 1477.3/and 1483 which was the subject of a regulatory hearing on April 26, 2024. The text of the regulations and proposed modifications are attached to this notice.
Caltrans will accept written comments on the proposed changes between July 26, 2024, and August 11, 2024. All written comments should be submitted to Caltrans at the following address:
, .;„,
Mail:
Email:
Division of Right of Way and Land Sun/eys
Attn: Carolyn Dabney - SR 710 Sales Program
California Department of Transportation
1120 N Street, MS 37
Sacramento, CA 95815
[email protected]
All written comments received by August 11,2024, which pertain to the indicated changes will be reviewed by Caltrans and will be summarized and responded to in the Final Statement of Reasons as part of the compilation of the rulemaking file.
Please limit your comments to the modifications to the text. |^@BSW1
JUL 27 2024
BY; .......—""••""•
"Provide a safe and reliable transportation network that serves all people and respects the environment" State Route 710 Sales Program
Proposed Modified Text
The below proposed regulations have been modified to address comments received during the public comment period. Proposedmodified text is shown in bold underline or double strikethrough:
KEY:
Modified text = bold underline
Modified deleted text = double otrikothrough
5 ^475. General.
{aLApjo//ca?iro/?^This_chapter only appliesjo properties purchased by the Department for the purpose of closing the SR-710 North Gap between SR-10 and SR-210 in Los Angeles County.
(b) L/m/'teyoh. Nothing in this chapter limits the Department's discretion regarding when to sell its Droperties, except as specified by statute. Nothing in this chapter creates, ex&ands, or confers any riaht or entitlement to purchase prop^rtv that does not already exist in law,
(c) Time Extensions. The Department may extend any time to perform an action aroyided for in this chapter upon a fihdjna of good cause in furtherance of Government Code section 54238.4 and upon notice to the persons or entities affected by the extension by written correspondence.
(d\CTC Approval Reauired. All sales under this chapter a-e_subjectto aDproval by the California Transportation CommissiQn,
ie) Lender Limitations. Except as otherwise provided in this chapter, a lender shall not have or anticipate an interest in or stand to gain financially from any Surplus Residential Property other than in the lender's capacity as a mortgage lender. (f) Historical Covenants. In addition to the Use and Resale Restrictions described in §§_U81.1,1483.1.1484.1. and 1485.1. the Department shall impose historical covenants to preserve and maintain ismDerties with architectural, historical, or cultural sianificance to comDlvwith the California Environmental Quality Act fCEQA).lfthe Department determines a historical Govehant is required for a DroDerty, then the Department will Drovidea historical covenant wjthjhe aDDlicable sales contract. If a buyer fails to sian aDplicable historical covenants, thenjhesales contract is void. (a)JThis chapter does not apDlv to the gyalificatjQn criteria to obtain a loan. The elmlbilitv criteria discussed in this Ghapter has no relation to the qualification criteria that ajender may reauire.
(h)_Diisqualification. The Department may shall Dermanenflv disqualify all TonQnto or Occupants in a household from purchasing a Surplus Residential Propertvjjnderthis chapter if they knowinalv provide false information regarding household income or household size, or partjciDate in any strategy to manipulate household income,
household size. or eligibility criteria. The Department will provide a written disqualification notice identifying the reason for the disqualification and will include information regarding the process for obtainina a review of the disqualification. An Occupant may request to have the disaualification reviewed and reconsidered within 3Q days from the postmarked date of the written notice bv providing a written explanation along with supDortina documentation, if anv. to refute the disqualification. The review will be conducted bv an impartial desianee from the Department's District 7 and/or HeadQuarterstafLThedesjgneemav be a committee. The desianee shall review and consider:
1). All material upon which the Department based its original determination:
2). Any written or relevant documentation submitted by the Occupant: and 3). Any further information which the Department in its discretion. obtains bv request. investigation, or research to ensure a fair and full review.
A final determination will be provided in writing to the Occupant within 60 days receiDt of the OccuDant's written exDlanation and will include, if the disqualification is upheld, a statement indicating administrative remedieshave been exhausted and judicial review may be sought.
Note: Authority Cited: Section 54237. Government Code.
Reference: Sections 54236. 54238.3 and 54238.4. Government Code: Sections 5024, 5024.5 and 21000 through 21189.70.10. Public Resources Code: Section 118. Streets and Highways Code.
S 1476. Chapter Definitions.
(a) Terms. This chapter uses the definitions of the following tenns:
f1)"Above-Moderate Income Households" mean persons or families whose jnGomeexeeeds that of Moderate-lncome Households but does not exceed 150 percentof area median income adjusted for family size. "Area median income" is defined in Health and Safety Code § 50093.
(2) "Affordable Housing Cost" is defined in S 1481.2(cy4l C3) "Affordable Price" is defined in §1481.2rcV1).
f4) "Affordable Rent" means rent calculated in a manner consistent with Government Code § 54236^0) and 25 Cal. Code Regs. § 6922. f5) "CalHFA" means the California Housing Finance Aaencv. a public instrumentality and political subdivision of the State of California created by the Zenovich-Moscone-Chacon Housina and Home Finance Act, division 31 of the Health and Safety Code.
(6) "Decent. Safe. and Sanitary" means meeting all the minimum requirements listed in 2 Cal. Code Regs. §1872.
(7) "Department" means the CaUfornia Department of TransDortation.
f8) "Fair Market Value" means the most probable price that real propertv should bring in a competitive and open market under all conditions requisite to a fair sale in accordance with Government Code § 54236ff). the buyer and seNeiLeach acting prudently and knowledgeablv. and assumina such price is noLaffected_by undue stimuli. Included in this definition is the consummation of a sale of the real property as of a specified date with title oassina from sellerto^yverLinder .condittons whereby: , ,i , - -
(A) the buyer and seller are typically motivated; and
(B) the buyer and seller arewell informed or well advised, and each is acting in what they consider their best interest; and
(C) a reasonable time is allowed for exposure of the real Dropertv in the open market: and
(D) pavment is made in cash in United States dollars or in terms of a financial arrangement comparable thereto; and
(EMhe sale price represents the normal consideration for the property yjiaffected by special or creative financina, sales conGessions, or Use and Resale Restrictions.
(9) "Fair Market Value at Time of Purchase" means the appraised FairMarket Value fora DroDertv offered at an Affordable Price. It shall be determined by a California certified Real Estateaopraiserand is subiectto review and acceptance by the Department for compliance with the Uniform Standards of Professional Abpraisal Practice. The appraisal shall be updated at the opening of escrow if it is more than six months old.
(10) "Housina-Related Private Entity" is defined in § 1485. (11) "Housina-Related Public Entity is defined in S 1483 ). (12) "Lower Income Households" has the meaning set forth in Health and Safety Code §50079.5. Lower I ricome Householdsare typically characterized as having incomes not exceeding 80% of area median ihcomeadjusted for family size. (13) "Minimum Sales Price" is the price the Department paid for the Dropertv without any inflation adjustment, and no Drobertv shall be sold pursuant to this article for less than the Minimum Sales Price.
f14)"Moderate Income Households" has the same meaning as "middle-income families" set forth in Health and Safety Code S 50093. Moderate Income Households are tvDicallv characterized as having incomes exceeding that of Lower Income Households but not exceeding 120% of area median income adjusted for family size. ,
(15) "Net ADDFeciation" is the difference betweenjhe subsequent Fair Market Value sales price and the Fair Market Value at Time of Purchase minus 20% of the difference for each full calendar vearofowjiership with nothing owed after five years of ownership. Net Appreciation is due and payable to CalHFA upon resale of the Dropertv pursuant to S 1481.1(c).
.""
(16) "Net Equity" is the difference between the Fair Market Value at Time of Purchase and the Affordable Price oaid for a Surolus Residential Property. Net Equity is due and payable to CalHFA upon resale of the Dropertv pursuant to § 1481.1fc), upon the Net Equity Maturity Date. or when the Surplus Residential Property ceases to be owner-occupied .
(17) "Net Equity Maturity Date" is the date that is 45 years from the close of escrow date for Surplus Residential Properties soid at Affordable Prices under this chapter.
(18) "Occupant" means a person 18 years or older who uses the Surplus ResjdentiaLProperty as their PrinciDal Place of Residence and who is listed on the lease or rentalaareement with the Department as of the date of the tetter described in S 1478(aV1).
(19) "Pereons and Families of Low or Moderate Income" has the meaning set forth in Health and Safety Code §50093.
f 20) "Principal Place of Residence" means the place which is a person's primary home, A_Dersoh's temDorarv absence from their Drimarv home does not effect a change with respect thereto. On the other hand. if a person moves to another place, other than as a mere transient or soiourner, the^erson shall be treated as having changed the location of their primar/ home.
f21) "Priority X". where "X" is a numberO to 9. is soecified in §§ 1477.1.1477.2 and 1477.3.
(22} "Reasonable Price" means the price that is best suited to the ecohomicallv feasible use of the Dropertv as Decent, Safe, and Sanitary housing at Affordable Rents or when used for affordable homeownership. at a price that will not exceed the Affordable Housing Cost calculated in a manner consistent with the provisions of Health and Safety Code S 50052.5 as implemerited bv25 Cal.
Code Reas. S6924. When used in Priority 4. "Reasonable Price" means the price bestsuited to the ecohomicallv feasible, use of the Dropertv as a historic home for pyblk; and community access and use. The Reasonable Price may not be less than the Minimum Sales Price.
f 23) "Siriale-Familv Residence" means a Surplus Residential Property that is either used as a dwellina unit for one family_pr intended by the Department to be used as a dwelling unit for one family,
(24) "Surplus Nonresidential Properties" means real Dropertv including land and structures owned by the Department that are not Surplus Residential Property. f25) "Surplus Residential ProDertv" means real Dropertv including land and stryctyres owned by the Department that:
<A) the Departmeht has determined to be excess pursuant to Streets and Highways Code § 118.6: and
(B) the Department has determined to be no longer necessary for the Department's use: and
r
!
!;
(C) were developed as sinale-familv or muttifamilv housing but do not include property being held bv the Deoartment for the pumoseof exchange.
(26) "Tenant" means an Occupant of a Surplus Residential Property who is a signatory to the lease or rental agreement as of the date of the letter described in §1478(3)n).
{27T"Use and Resale Restrictions" means the terms, conditions, and restrictions imposed by the Department for DroDerties sold for less than Fair Market Value.
Use and Resale Restrictions run with the land and are equitable servitudes. They applv^to the entirety of the proDertv, includina everv unit of a multi-unit Dropertv and every new unit added to a property.
(b) Plurals and Pdssessives. The definitions Drovided in fa) abplv to the plural and possessive forms of the defined terms.
Note: Authority Cited: Section 54237. Government Code.
Reference: Sections 54236. 54237. 54239.1. 54239.4and 54239.5. Government Code:
Section 3517, Civil Code.
1 § 1477.3. Priority of Sale for Properties in the City of South Pasadena. (a) Surplus Residential Properties. All Surplus Residential ProDerties in the City of South Pasadena must be offered for sale in this order;
(1) Sincile-Familv Residences to Occupants who are formeLQwners of the Sinale- Family Residence at Fair Market Value. This is Priority 0 and is governed by S 1480.
(2) Single Family Residences to the OccuDants at either an Affordable Price or Fair MarketValue. This is Priority 1 and is aoverned bv§§ 1481 through 1481.4. (3) Single Family Residences to the Occupants at either an Affordable Price or Fair Market Value. This is Priority 2 and is governed by S 1482. (4) Surplus Residential Properties to the Tenant at Fair Market Value. This is Priority 6 and is governed by § 1486.
(5) Unoccupied SB 381 Properties to the City of South Pasadena at the Minimum SalesPrice. This is Priority 4SP and is aovemed by S 1484.3. (6) Surplus Residential Properties to the City of South Pasadena at a Reasonable Price. This is Priority 3and is governed by §§ 1483 through 1483.1. (7) Surplus Residential Properties to a Housina-Related Private Entity at a Reasonable Price. This is Priority 5 and is doverned bv §§ 1485 throuah 1485.1. (8) Surplus Residential Properties to the Tenant at Fair Market Value. This is Priority 6 and is governed by §1486.
(9) Surplus Residential Properties Jo a former Tenant aLFair Market Value. This is Priority 7 and is governed by S 1487.
Pages
(10) Surplus Residential Properties to any buyer pursuant to Streets and Highways Code §118. This is Priority 8 and is governed by § 1488. fb) Surplus Nonresidential Properties. All Surplus Nonresidential Properi:ies in the City of South Pasadena, except those described in S 1477.4, must be offered for sale Jn this order:
(1) To current Tenants at Fair Market Value. This is Priority 9 and is governed by §1489.
(2) To the City of South Pasadena at a Reasonable Price if the Dropertv is unimproved. This is Priority Sand is aoverned by §§ 1483 throuah 1483,1. (3) To a Housina-Related Private Entity at a Reasonable Price if the proDertvis unimproved. This is Prjonty 5 and is aoverned bv §§ 1485 throuah 14^5..L (4) To any buyer pursuant to Streets and Highways Code § 118. This is PrioritvS and is governed by § 1 488.
Note: Authority Cited: Sections 54237 and 54239.4. Government Code.
Reference: Sections 54237. 54237.3. 54239.1 and 54239.4. Government Code.
S 1483. Priority 3: Housina-Related Public Entities.
(a) OfferatPr/orf(K3. When Priority 3 is specified asthenext priority by S 1477.2 fa)f5) then all unoGcupied Surplus Residential ProDerties, including unoccupied SB 580 Droperties located in the City of Pasadena and identified in § 1484.2, shall be offered to the City of Pasadena at the Minimum Sales Price.
When Priority 3 is specified as the next priority by § 1477.2(a)f6) or 1477.3(a)(6), then all Surplus Residential Properties not already sold shall be next offered to a Housina- Related Public Entity at a Reasonable Price pursuant to this section. Sinale-Familv Residences identified in § 1481.4 cannot besold at Priority 3 until after all PriontyJ_and 2 sales have closed escrow.
When Priority 3 is specified as the next Drioritv by S 1477.2(b) and § 1477.3rb). then all Surplus Nbnresidential ProDerties not already sold shall next be offered to the city in which the property is located at a Reasonable Price pursuant to this section.
Q^fiREs. The Housina-Related Public Entities who may purchase at Priority 3 are the City of Pasadena, the City of South Pasadena, and the County of Los Anaeles, (c) Soliciting Interest. The Department will Drovide to each Housina-Related Public Entity identified in (bla written list of Surplus Residential Proberties and. if applicable.
Surplus Nonresidential Properties to be offered for sale within its iurisdictional boundaries. For eaeh such Surplus Residential Property on the list, the Department will provide the following information:
{D The address: and
(2} The Reasonable Price, which for Priority 3, is set at the Minimum Sales Price:
and
• ,?-;• -.
(3) A copy of the current lease or rental aareement,JLanyLand (4) Copies of all repair records for the prior three yearsLand (5) Copy of the Use and Resale Restrictions.
(d) Response. If a Housina-Related Public Entity wants to purchase any of the properties identjfied^n the list provided to it pursuant to (c), then it shall notifv the Department in writing of the Droperties from the list it wants to purchase within 30 calendar days from the DO^tmarked date of the letter sentpyrsyanttoIcL (e) Sa/es Contracts. The Department will send a sales contract to a Housina-Related Public Entity for each proDertv identified bv the entity Dursyantto fd), subject to the following:
CU^roeertjes identified pursuant to (d) shall be on the list provided to the entity pursuant to (c).
(2) The sales contract shall be executed and returned to the Department within 60 calendar days of the date the Department sends the contract. (3) If the County of Los Angeles identifies a Dropertvthat is also identified by the City of Pasadena or the City of South Pasadena, then the Department will first offer the property to the City of Pasadena or the Citv of South Pasadena. If the City of Pasadena or the City of South Pasadena does not purchase the propertv, it will then be offered to the County of Los Angeles.
(f) Escrow. Upon execution of the sales contract, the Hoysina-Related Public Entity will have 120ceiiendar days to close escrow. UpQrLwntten request, the Department will provide an additional 30 calendar days to close escrow. The City of Pasadena must also comply with Government Code § 54239.5(b)(4) before closing escrow on the purchase of unoccupied Surplus Residential Properties under § 1477.2 (a)(5). (a) Closing Costs and Escrow Fees. The purchasing Housina-Related Public Entity shall pay all closing costs and escrow fees.
(h) No Warranty. Any Priority 3 sale is "as-is" and without warranty.
Note: Authority Cited: Section 54237. 54237.10. 54239.4 and 54239.5. Government Code.
Ref^renceLSections 54236, 54237. 54239.4 and 54239.5. Government Code. •- • ': ^' •
.£ ; ••"».'.•»
•^ •
;..
. •:.'(.-.^