AB 2525: State highways: property leases.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2024-09-27
Current Status:
Passed
(2024-09-27: Chaptered by Secretary of State - Chapter 721, Statutes of 2024.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill lets the state transportation department lease up to 25 parcels of airspace under freeways or other highway property in the City of Los Angeles for $1 per month so the city (or its agencies) can run emergency shelters, feeding programs, or secure vehicle lot programs. A secure vehicle lot is a place to store vehicles owned by people getting services to relieve homelessness; stored vehicles must be uninhabited, pass a safety assessment, and not contain hazardous materials.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law vests the Department of Transportation with full possession and control of the state highway system, including associated property. Existing law authorizes the department to offer leases to the City of Los Angeles on a right of first refusal basis for any airspace under a freeway or certain real property acquired for highway purposes located in the city for purposes of an emergency shelter or feeding program for a lease amount, for up to 10 parcels, of $1 per month, and a payment of an administrative fee not to exceed $500 per year, as specified.
This bill would expand the purposes for which these leases may be issued to include an emergency shelter or feeding program, a secure vehicle lot program, or any combination of those purposes. The bill would define secure vehicle lot program to mean the use of the leased property to store a vehicle belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness. The bill would specify conditions for a vehicle stored in a secure vehicle lot program. The bill would also increase the number of parcels that may be leased for $1 per month to 25 parcels.
Existing law vests the Department of Transportation with full possession and control of the state highway system, including associated property. Existing law authorizes the department to offer leases to the City of Los Angeles on a right of first refusal basis for any airspace under a freeway or certain real property acquired for highway purposes located in the city for purposes of an emergency shelter or feeding program for a lease amount, for up to 10 parcels, of $1 per month, and a payment of an administrative fee not to exceed $500 per year, as specified.
This bill would expand the purposes for which these leases may be issued to include an emergency shelter or feeding program, a secure vehicle lot program, or any combination of those purposes. The bill would define secure vehicle lot program to mean the use of the leased property to store a vehicle belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness. The bill would specify conditions for a vehicle stored in a secure vehicle lot program. The bill would also increase the number of parcels that may be leased for $1 per month to 25 parcels.
Existing law vests the Department of Transportation with full possession and control of the state highway system, including associated property. Existing law authorizes the department to offer leases to the City of Los Angeles on a right of first refusal basis for any airspace under a freeway or certain real property acquired for highway purposes located in the city for purposes of an emergency shelter or feeding program for a lease amount, for up to 10 parcels, of $1 per month, and a payment of an administrative fee not to exceed $500 per year, as specified.
This bill would expand the purposes for which these leases may be issued to include an emergency shelter or feeding program, a secure vehicle lot program, or any combination of those purposes. The bill would define secure vehicle lot program to mean the use of the leased property to store a vehicle belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness. The bill would specify conditions for a vehicle stored in a secure vehicle lot program. The bill would also increase the number of parcels that may be leased for $1 per month to 25 parcels.
Existing law vests the Department of Transportation with full possession and control of the state highway system, including associated property. Existing law authorizes the department to offer leases to the City of Los Angeles on a right of first refusal basis for any airspace under a freeway or certain real property acquired for highway purposes located in the city for purposes of an emergency shelter or feeding program for a lease amount, for up to 10 parcels, of $1 per month, and a payment of an administrative fee not to exceed $500 per year, as specified.
This bill would expand the purposes for which these leases may be issued to include an emergency shelter or feeding program, a secure vehicle lot program, or any combination of those purposes. The bill would define secure vehicle lot program to mean the use of the leased property to store a vehicle belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness. The bill would specify conditions for a vehicle stored in a secure vehicle lot program. The bill would also increase the number of parcels that may be leased for $1 per month to 25 parcels.
Existing law vests the Department of Transportation with full possession and control of the state highway system, including associated property. Existing law authorizes the department to offer leases to the Cities City of Los Angeles and San Jose on a right of first refusal basis for any airspace under a freeway or certain real property acquired for highway purposes located in each the city for purposes of an emergency shelter or feeding program for a lease amount, for up to 10 parcels, of $1 per month, and a payment of an administrative fee not to exceed $500 per year, as specified.
This bill would make nonsubstantive changes to the latter provisions. expand the purposes for which these leases may be issued to include an emergency shelter or feeding program, a secure vehicle lot program, or any combination of those purposes. The bill would define secure vehicle lot program to mean the use of the leased property to store a vehicle belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness. The bill would also increase the number of parcels that may be leased for $1 per month to 25 parcels.
Existing law vests the Department of Transportation with full possession and control of the state highway system, including associated property. Existing law authorizes the department to offer leases to the Cities of Los Angeles and San Jose on a right of first refusal basis for any airspace under a freeway or certain real property acquired for highway purposes located in each city for purposes of an emergency shelter or feeding program for a lease amount, for up to 10 parcels, of $1 per month, and a payment of an administrative fee not to exceed $500 per year, as specified.
This bill would make nonsubstantive changes to the latter provisions.
(a)(1)Any airspace under a freeway, or real property acquired for highway purposes, in the City of Los Angeles, that is not excess property, may be offered for lease on a right of first refusal by the department to the city, or to a political subdivision of the city, for purposes of an emergency shelter or feeding program, for purposes of a secure vehicle lot program, or for any combination of these purposes.
(2)For up to 25 parcels, the lease amount for emergency shelter or feeding programs or secure vehicle lot programs shall be for one dollar ($1) per month. The lease amount may be paid in advance of the term covered in order to reduce the administrative costs associated with the payment of the monthly rental fee. The lease shall require the payment of an administrative fee not to exceed five hundred dollars ($500) per year, unless the department determines that a higher administrative fee is necessary, for the departments cost of administering the lease.
(3)The Legislature finds and declares that the lease of real property pursuant to this subdivision serves a public purpose.
(b)(1)Any airspace under a freeway, or real property acquired for highway purposes, in the City of San Jose, that is not excess property, may be offered for lease on a right of first refusal by the department to the city, or to a political subdivision of the city, for purposes of an emergency shelter or feeding program.
(2)For up to 10 parcels, the lease amount for emergency shelter or feeding programs shall be for one dollar ($1) per month. The lease amount may be paid in advance of the term covered in order to reduce the administrative costs associated with the payment of the monthly rental fee. The lease shall require the payment of an administrative fee not to exceed five hundred dollars ($500) per year, unless the department determines that a higher administrative fee is necessary, for the departments cost of administering the lease.
(3)The Legislature finds and declares that the lease of real property pursuant to this subdivision serves a public purpose.
(c)A vehicle stored in a secure vehicle lot program pursuant to subdivision (a) shall comply with all of the following:
(1)It shall be uninhabited.
(2)Prior to storage in a secure vehicle lot program, it shall be assessed for safe storage, as defined by the department and in consultation with the City of Los Angeles.
(3)It shall not contain hazardous material, as defined in Section 25501 of the Health and Safety Code, unless otherwise specified in the terms of the lease entered into between the City of Los Angeles and the department.
(d)For purposes of this section, secure vehicle lot program means the use of the leased property to store a vehicle, including, but not limited to, a recreational vehicle, belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness.
(a)(1)Any airspace under a freeway, or real property acquired for highway purposes, in the City of Los Angeles, that is not excess property, may be offered for lease on a right of first refusal by the department to the city, or to a political subdivision of the city, for purposes of an emergency shelter or feeding program, for purposes of a secure vehicle lot program, or for any combination of these purposes.
(2)For up to 25 parcels, the lease amount for emergency shelter or feeding programs or secure vehicle lot programs shall be for one dollar ($1) per month. The lease amount may be paid in advance of the term covered in order to reduce the administrative costs associated with the payment of the monthly rental fee. The lease shall require the payment of an administrative fee not to exceed five hundred dollars ($500) per year, unless the department determines that a higher administrative fee is necessary, for the departments cost of administering the lease.
(3)The Legislature finds and declares that the lease of real property pursuant to this subdivision serves a public purpose.
(b)(1)Any airspace under a freeway, or real property acquired for highway purposes, in the City of San Jose, that is not excess property, may be offered for lease on a right of first refusal by the department to the city, or to a political subdivision of the city, for purposes of an emergency shelter or feeding program.
(2)For up to 10 parcels, the lease amount for emergency shelter or feeding programs shall be for one dollar ($1) per month. The lease amount may be paid in advance of the term covered in order to reduce the administrative costs associated with the payment of the monthly rental fee. The lease shall require the payment of an administrative fee not to exceed five hundred dollars ($500) per year, unless the department determines that a higher administrative fee is necessary, for the departments cost of administering the lease.
(3)The Legislature finds and declares that the lease of real property pursuant to this subdivision serves a public purpose.
(c)A vehicle stored in a secure vehicle lot program pursuant to subdivision (a) shall comply with all of the following:
(1)It shall be uninhabited.
(2)Prior to storage in a secure vehicle lot program, it shall be assessed for safe storage, as defined by the department and in consultation with the City of Los Angeles.
(3)It shall not contain hazardous material, as defined in Section 25501 of the Health and Safety Code, unless otherwise specified in the terms of the lease entered into between the City of Los Angeles and the department.
(d)For purposes of this section, secure vehicle lot program means the use of the leased property to store a vehicle, including, but not limited to, a recreational vehicle, belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness.
(a)(1)Any airspace under a freeway, or real property acquired for highway purposes, in the City of Los Angeles, that is not excess property, may be offered for lease on a right of first refusal by the department to the city, or to a political subdivision of the city, for purposes of an emergency shelter or feeding program, for purposes of a secure vehicle lot program, or for any combination of these purposes.
(2)For up to 25 parcels, the lease amount for emergency shelter or feeding programs or secure vehicle lot programs shall be for one dollar ($1) per month. The lease amount may be paid in advance of the term covered in order to reduce the administrative costs associated with the payment of the monthly rental fee. The lease shall require the payment of an administrative fee not to exceed five hundred dollars ($500) per year, unless the department determines that a higher administrative fee is necessary, for the departments cost of administering the lease.
(3)The Legislature finds and declares that the lease of real property pursuant to this subdivision serves a public purpose.
(b)(1)Any airspace under a freeway, or real property acquired for highway purposes, in the City of San Jose, that is not excess property, may be offered for lease on a right of first refusal by the department to the city, or to a political subdivision of the city, for purposes of an emergency shelter or feeding program.
(2)For up to 10 parcels, the lease amount for emergency shelter or feeding programs shall be for one dollar ($1) per month. The lease amount may be paid in advance of the term covered in order to reduce the administrative costs associated with the payment of the monthly rental fee. The lease shall require the payment of an administrative fee not to exceed five hundred dollars ($500) per year, unless the department determines that a higher administrative fee is necessary, for the departments cost of administering the lease.
(3)The Legislature finds and declares that the lease of real property pursuant to this subdivision serves a public purpose.
(c)A vehicle stored in a secure vehicle lot program pursuant to subdivision (a) shall comply with all of the following:
(1)It shall be uninhabited.
(2)Prior to storage in a secure vehicle lot program, it shall be assessed for safe storage, as defined by the department and in consultation with the City of Los Angeles.
(3)It shall not contain hazardous material, as defined in Section 25501 of the Health and Safety Code, except those commonly found in vehicles. unless otherwise specified in the terms of the lease entered into between the City of Los Angeles and the department.
(d)For purposes of this section, secure vehicle lot program means the use of the leased property to store a vehicle, including, but not limited to, a recreational vehicle, belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness.
(a)(1)Any airspace under a freeway, or real property acquired for highway purposes, in the City of Los Angeles, that is not excess property, may be offered for lease on a right of first refusal by the department to the city, or to a political subdivision of the city, for purposes of an emergency shelter or feeding program, for purposes of a secure vehicle lot program, or for any combination of these purposes.
(2)For up to 25 parcels, the lease amount for emergency shelter or feeding programs or secure vehicle lot programs shall be for one dollar ($1) per month. The lease amount may be paid in advance of the term covered in order to reduce the administrative costs associated with the payment of the monthly rental fee. The lease shall require the payment of an administrative fee not to exceed five hundred dollars ($500) per year, unless the department determines that a higher administrative fee is necessary, for the departments cost of administering the lease.
(3)The Legislature finds and declares that the lease of real property pursuant to this subdivision serves a public purpose.
(b)(1)Any airspace under a freeway, or real property acquired for highway purposes, in the City of San Jose, that is not excess property, may be offered for lease on a right of first refusal by the department to the city, or to a political subdivision of the city, for purposes of an emergency shelter or feeding program.
(2)For up to 10 parcels, the lease amount for emergency shelter or feeding programs shall be for one dollar ($1) per month. The lease amount may be paid in advance of the term covered in order to reduce the administrative costs associated with the payment of the monthly rental fee. The lease shall require the payment of an administrative fee not to exceed five hundred dollars ($500) per year, unless the department determines that a higher administrative fee is necessary, for the departments cost of administering the lease.
(3)The Legislature finds and declares that the lease of real property pursuant to this subdivision serves a public purpose.
(c)A vehicle stored in a secure vehicle lot program shall comply with all of the following:
(1)It shall be uninhabited.
(2)Prior to storage in a secure vehicle lot program, it shall be assessed for safe storage, as defined by the department and in consultation with the City of Los Angeles.
(3)It shall not contain hazardous material, as defined in Section 25501 of the Health and Safety Code, except those commonly found in vehicles.
(c)(d)For purposes of this section, secure vehicle lot program means the use of the leased property to store a vehicle, including, but not limited to, a recreational vehicle, belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness.
(a)(1)Any airspace under a freeway, or real property acquired for highway purposes, in the City of Los Angeles, that is not excess property, may be offered for lease on a right of first refusal by the department to the city, or to a political subdivision of the city, for purposes of an emergency shelter or feeding program. program, for purposes of a secure vehicle lot program, or for any combination of these purposes.
(2)For up to 10 25 parcels, the lease amount for emergency shelter or feeding programs or secure vehicle lot programs shall be for one dollar ($1) per month. The lease amount may be paid in advance of the term covered in order to reduce the administrative costs associated with the payment of the monthly rental fee. The lease shall require the payment of an administrative fee not to exceed five hundred dollars ($500) per year, unless the department determines that a higher administrative fee is necessary, for the departments cost of administering the lease.
(3)The Legislature finds and declares that the lease of real property pursuant to this subdivision serves a public purpose.
(b)(1)Any airspace under a freeway, or real property acquired for highway purposes, in the City of San Jose, that is not excess property, may be offered for lease on a right of first refusal by the department to the city, or to a political subdivision of the city, for purposes of an emergency shelter or feeding program.
(2)For up to 10 parcels, the lease amount for emergency shelter or feeding programs shall be for one dollar ($1) per month. The lease amount may be paid in advance of the term covered in order to reduce the administrative costs associated with the payment of the monthly rental fee. The lease shall require the payment of an administrative fee not to exceed five hundred dollars ($500) per year, unless the department determines that a higher administrative fee is necessary, for the departments cost of administering the lease.
(3)The Legislature finds and declares that the lease of real property pursuant to this subdivision serves a public purpose.
(c)For purposes of this section, secure vehicle lot program means the use of the leased property to store a vehicle, including, but not limited to, a recreational vehicle, belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness.
(a)(1)Any airspace under a freeway, or real property acquired for highway purposes, in the City of Los Angeles, that is not excess property, may be offered for lease on a right of first refusal by the department to the city, or to a political subdivision of the city, for purposes of an emergency shelter or feeding program.
(2)For up to 10 parcels, the lease amount for emergency shelter or feeding programs shall be for one dollar ($1) per month. The lease amount may be paid in advance of the term covered in order to reduce the administrative costs associated with the payment of the monthly rental fee. The lease shall require the payment of an administrative fee not to exceed five hundred dollars ($500) per year, unless the department determines that a higher administrative fee is necessary, for the departments cost of administering the lease.
(3)The Legislature finds and declares that the lease of real property pursuant to this subdivision serves a public purpose.
(b)(1)Any airspace under a freeway, or real property acquired for highway purposes, in the City of San Jose, that is not excess property, may be offered for lease on a right of first refusal by the department to the city, or to a political subdivision of the city, for purposes of an emergency shelter or feeding program.
(2)For up to 10 parcels, the lease amount for emergency shelter or feeding programs shall be for one dollar ($1) per month. The lease amount may be paid in advance of the term covered in order to reduce the administrative costs associated with the payment of the monthly rental fee. The lease shall require the payment of an administrative fee not to exceed five hundred dollars ($500) per year, unless the department determines that a higher administrative fee is necessary, for the departments cost of administering the lease.
(3)The Legislature finds and declares that the lease of real property pursuant to this subdivision serves a public purpose.
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Date
|
Status
|
|---|---|
| Sep 27, 2024 | Chaptered by Secretary of State - Chapter 721, Statutes of 2024. |
| Sep 27, 2024 | Approved by the Governor. |
| Sep 9, 2024 | Enrolled and presented to the Governor at 3:30 p.m. |
| Aug 28, 2024 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 61. Noes 16.). |
| Aug 28, 2024 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77. |
| Aug 28, 2024 | Assembly Rule 77 suspended. |
| Aug 27, 2024 | Read third time. Passed. Ordered to the Assembly. (Ayes 31. Noes 9.). |
| Aug 26, 2024 | Read second time. Ordered to third reading. |
| Aug 22, 2024 | Read third time and amended. Ordered to second reading. |
| Aug 19, 2024 | Read second time. Ordered to third reading. |
| Aug 15, 2024 | From committee: Do pass. (Ayes 4. Noes 2.) (August 15). |
| Aug 5, 2024 | In committee: Referred to APPR suspense file. |
| Jun 26, 2024 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 3.) (June 25). Re-referred to Com. on APPR. |
| Jun 5, 2024 | Referred to Com. on TRANS. |
| May 23, 2024 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 22, 2024 | Read third time. Passed. Ordered to the Senate. (Ayes 58. Noes 12. Page 5487.) |
| May 20, 2024 | Read second time. Ordered to third reading. |
| May 16, 2024 | From committee: Do pass. (Ayes 11. Noes 4.) (May 16). |
| May 8, 2024 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 9, 2024 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 4.) (April 8). Re-referred to Com. on APPR. |
| Apr 4, 2024 | Re-referred to Com. on TRANS. |
| Apr 3, 2024 | From committee chair, with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended. |
| Mar 19, 2024 | Re-referred to Com. on TRANS. |
| Mar 18, 2024 | Referred to Com. on TRANS. |
| Mar 18, 2024 | From committee chair, with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended. |
| Feb 14, 2024 | From printer. May be heard in committee March 15. |
| Feb 13, 2024 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 28, 2024 | AB 2525 Zbur Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 27, 2024 | Assembly 3rd Reading AB2525 Zbur By Durazo | Senate Floor |
Passed |
|
| Aug 15, 2024 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 5, 2024 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 25, 2024 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Transportation |
Passed |
|
| May 22, 2024 | AB 2525 Zbur Assembly Third Reading | Assembly Floor |
Passed |
|
| May 16, 2024 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 8, 2024 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Transportation |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Cd1 Coalition for Human Rights | ** Against | |
| City Of Los Angeles | ** Support | |
| Los Angeles Mayor | * Support | Apr 8, 2024 |
| Office of Los Angeles Mayor Karen Bass | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 2525
Author:(Zbur)
As Amended Ver:August 22, 2024
Majority vote
SUMMARY
Expands the purposes that the California Department of Transportation's (Caltrans') airspace may be leased to the city of Los Angeles to include a secure vehicle lot program and increases the number of eligible parcels that can be leased for $1 per month to 25.
Senate Amendments
Clarify a vehicle in the secure lot program shall not contain hazardous material, unless otherwise specified in the terms of lease entered into between the City of Los Angeles and Caltrans.
COMMENTS
Airspace is the property under or within the right-of-way of an existing operating highway, and includes all Caltrans owned and operated facilities that are used to support the transportation system. Caltrans leases airspace within the state highway right-of-way if it can safely accommodate a secondary use. Caltrans is responsible for managing those airspace properties. Airspace is not property held for a future transportation use nor is it available for sale as it is not excess or surplus to the state's needs. By leasing airspace sites and licensing wireless facilities within freeway right-of-way, airspace generates revenue that is deposited into the State Highway Account.
In 2018, Caltrans was authorized to lease airspace or real property acquired for highway purposes for homeless services in specified cities for $1 per month. Clarifying language was also included that, for the purposes of a park, or recreational use of airspace leases, Caltrans must find that the lease is for public access. In 2019, Caltrans authority was expanded to allow it to lease airspace or real property acquired for highway purposes for the purpose of conducting a temporary emergency shelter or feeding program statewide.
In 2019, the California Transportation Commission (CTC) passed a resolution on the procedure for leasing airspace to public entities (Resolution G-19-43), which authorized Caltrans to enter into leases with public agencies without specific CTC approval. It also required Caltrans to provide an annual report to the Commission on the active airspace leases.
The authority for Caltrans to enter into airspace leases is in existing law and Caltrans is generally obligated to secure fair market value lease rates for airspace under freeways or other available parcels, based on the estimated highest and best use of the property. Notable exceptions to the fair market value requirement authorize Caltrans to lease unused parcels of land below market rates to various cities and counties for the purposes of emergency shelters and feeding programs. In each of these exceptions, the Legislature has found that below-market rate leases for these particular uses serve a public purpose.
Inside Safe LA. The most recent point-in-time count data from the Los Angeles Homeless Services Authority (LAHSA) showed that nearly 6,500 people experiencing homelessness in the city of Los Angeles are living in approximately 4,000 recreational vehicles (RVs). That number, which has grown by 40% since 2018, represents 22% of the city of Los Angeles' total unsheltered homeless population.
While some RV dwellers are unemployed, some have jobs, but cannot afford to pay rent in Los Angeles where the average one-bedroom apartment costs $2,000 to $2,500 a month. This has led to large encampments of RVs on local streets.
In 2022, Los Angeles launched a program called Inside Safe, which seeks to voluntarily bring people experiencing homelessness inside from tents and encampments. To date, the program has addressed more than 39 encampments and has brought more than 2,100 people experiencing homelessness inside, where they receive case management, supportive and housing navigation services.
In December 2023, an Inside Safe operation in the San Fernando Valley focused on an encampment of more than 50 RVs on Forest Lawn Drive in Los Angeles. About 20 RVs and 31 people experiencing homelessness accepted housing and turned their vehicles over to the city of Los Angeles.
The city of Los Angeles is seeking additional locations to store the RVs that are taken off the streets as people experiencing homelessness who participate in Inside Safe are moved into interim housing. As of early 2024, 95% of the city's 325 spots for RVs were full.
This bill expands the uses Caltrans may lease airspace to the city of Los Angeles to include a "secure lot program," which is defined as, "the use of the leased property to store a vehicle, including, but not limited to, a recreational vehicle, belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness." The bill specifies that the vehicles must be uninhabited, and not contain hazardous materials, as defined in state law, except for those commonly found in vehicles.
According to the Author
"AB 2525 will give the City of Los Angeles (the City) additional tools to address the City's homelessness crisis and will make it easier for the City to provide services to people experiencing homelessness. Mayor Bass has championed a voluntary program called Inside Safe, which brings unhoused Angelenos into interim housing and connects them to case management, supportive services, and housing navigation services. To date, the program has brought more than 2,100 Angelenos inside, and the City's storage lots are 95% occupied by RVs that are taken off the streets as Angelenos move into interim housing through the program. In order to continue the success of Inside Safe, the City is in need of additional locations to store RVs while their former inhabitants receive services to relieve homelessness. AB 2525 updates the law to allow the City to lease specified property from the California Department of Transportation for $1 a month for this purpose."
Arguments in Support
Los Angeles Mayor Karen Bass writes, "I write as the proud sponsor of AB 2525 (Zbur), which will make it easier for the City of Los Angeles to provide services to people experiencing homelessness by allowing the City to lease additional space to store recreational vehicles (RVs) while their former inhabitants are placed in interim housing and receive services.
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Senate Appropriations Committee:
- Caltrans estimates ongoing administrative costs of approximately $154,000 annually for 1.0 PY of staff time for workload associated with up to 15 additional leases. (State Highway Account)
- Unknown future loss of Caltrans lease revenues, potentially in the mid- to high-hundreds of thousands of dollars annually, which may increase in future years to the extent that the gap between lease payments and fair market value increases. Actual lease revenue losses would depend upon the fair market lease value of the specific properties in question and lease terms. Staff notes that these revenue losses would be a General Fund impact because Caltrans lease revenues are currently used to partially offset General Fund payments for transportation-related debt service.
VOTES:
ASM TRANSPORTATION: 11-4-0
YES: Wilson, Aguiar-Curry, Berman, Juan Carrillo, Hart, Jackson, Lowenthal, Papan, Ting, Ward, Wicks
NO: Davies, Hoover, Sanchez, Wallis
ASM APPROPRIATIONS: 11-4-0
YES: Wicks, Arambula, Bryan, Calderon, Wendy Carrillo, Mike Fong, Grayson, Haney, Hart, Pellerin, Villapudua
NO: Sanchez, Dixon, Jim Patterson, Ta
ASSEMBLY FLOOR: 58-12-10
YES: Addis, Aguiar-Curry, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Connolly, Mike Fong, Gabriel, Garcia, Gipson, Grayson, Haney, Hart, Irwin, Jackson, Jones-Sawyer, Kalra, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Waldron, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO: Alanis, Davies, Dixon, Vince Fong, Gallagher, Hoover, Lackey, Jim Patterson, Joe Patterson, Sanchez, Ta, Wallis
ABS, ABST OR NV: Calderon, Cervantes, Chen, Megan Dahle, Essayli, Flora, Friedman, Holden, Mathis, Luz Rivas
SENATE FLOOR: 31-9-0
YES: Allen, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dodd, Durazo, Eggman, Glazer, Gonzalez, Hurtado, Laird, Limón, McGuire, Menjivar, Min, Newman, Padilla, Portantino, Roth, Rubio, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener
NO: Alvarado-Gil, Dahle, Grove, Jones, Nguyen, Niello, Ochoa Bogh, Seyarto, Wilk
UPDATED
VERSION: August 22, 2024
CONSULTANT: Julia Kingsley / TRANS. / (916) 319-2093 FN: 0004822
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 2525 |
THIRD READING
Bill No: AB 2525
Author: Zbur (D)
Amended: 8/22/24 in Senate
Vote: 21
SENATE TRANSPORTATION COMMITTEE: 11-3, 6/25/24
AYES: Cortese, Allen, Archuleta, Becker, Blakespear, Dodd, Gonzalez, Laird, Limón, Newman, Umberg
NOES: Niello, Nguyen, Seyarto
NO VOTE RECORDED: Dahle
SENATE APPROPRIATIONS COMMITTEE: 4-2, 8/15/24
AYES: Caballero, Ashby, Becker, Wahab
NOES: Jones, Seyarto
NO VOTE RECORDED: Bradford
ASSEMBLY FLOOR: 58-12, 5/22/24 - See last page for vote
SUBJECT: State highways: property leases
SOURCE: Office of Los Angeles Mayor Karen Bass
DIGEST:
This bill expands the number and purpose of Department of Transportation (Caltrans) leases of airspace under a freeway, or certain real property acquired for highway purposes, to include a secure vehicle lot program
Senate Amendments of 8/22/24 allow storage of hazardous materials in the vehicles stored in the lot only if they are specified in the terms of the lease entered into between the city of Los Angeles and Caltrans.
ANALYSIS:
Existing law:
- Authorizes Caltrans to offer up to 10 parcels to the City of Los Angeles and to the City of San Jose on a first right of refusal basis for any airspace under a freeway or certain real property acquired for highway purposes for the purposes of an emergency shelter or feeding program. (SHC 104.26)
- Caltrans may offer the parcels for $1 per month, and a payment of an administrative fee not to exceed $500 per month.
This bill:
- Increases the number of parcels that may be leased in the City of Los Angeles from up to 10 parcels to up to 25 parcels.
- Increases the purposes of the leases to include a secure vehicle lot program.
- Defines secure vehicle lot program to mean the use of the leased property to store a vehicle, including, but limited to, a recreational vehicle, belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness.
- Provides that a vehicle stored in a secure vehicle lot program shall comply with all of the following:
- It shall be uninhabited.
- Prior to storage in a secure vehicle lot program, it shall be assessed for safe storage, as defined, by Caltrans and in consultation with the City of Los Angeles.
- It shall not contain hazardous material, unless otherwise specified in the terms of the lease entered into between the City of Los Angeles and Caltrans.
Comments
- Authors Statement. According to the author, “AB 2525 will give the City of Los Angeles (the City) additional tools to address the City’s homelessness crisis and will make it easier for the City to provide services to people experiencing homelessness. Mayor Bass has championed a voluntary program called Inside Safe, which brings unhoused Angelenos into interim housing and connects them to case management, supportive services, and housing navigation services. To date, the program has brought more than 2,100 Angelenos inside, and the City’s storage lots are 95% occupied by Recreational Vehicles (RVs) that are taken off the streets as Angelenos move into interim housing through the program. In order to continue the success of Inside Safe, the City is in need of additional locations to store RVs while their former inhabitants receive services to relieve homelessness. AB 2525 updates the law to allow the City to lease specified property from the California Department of Transportation for $1 a month for this purpose.”
- Inside Safe. Through the Inside Safe program, the City of Los Angeles has sought to move the city’s homeless population to safe, indoor locations. The most recent count from the Los Angeles Homeless Services authority showed approximately 6,500 people experiencing homelessness in the City of Los Angeles are living in approximately 4,000 recreational vehicles (RVs). The City of Los Angeles has attempted to house those living in RVs but is struggling to find secure spaces to store such vehicles and has identified Caltrans airspace as one storage option, but existing law does not allow airspace parcels to be leased for this purpose at a discounted price.
- San Jose, Too. As noted above, a similar lease program for up to ten parcels for the purposes of an emergency shelter or feeding program is operated in the City of San Jose.
- Airspace and airspace leasing. Airspace is the property under or within the
right-of-way of an existing operating highway, and includes all Caltrans owned and operated facilities that are used to support the transportation system. The Streets and Highways Code authorizes Caltrans to lease the use of airspace above or below state highways to private or public entities in accordance with procedures prescribed by the California Transportation Commission (CTC) and various sections of the Code of Federal Regulations. The Caltrans Division of Right of Way manages the statewide airspace program and is responsible for developing policies and procedures governing all aspects of airspace leases. Airspace is not property held for future transportation use nor is it available for sale as it is not excess or surplus to the state's needs. Leasing airspace, and licensing wireless facilities within freeway right-of-way, generates revenue that is deposited into the State Highway Account.
Specifically, Caltrans district offices are responsible for drafting and
negotiating airspace leases (auction or direct negotiation), conducting
inspections on leased properties, collecting rent payments from tenants, and
filing notices of unlawful detainer in court for eviction (if warranted). There are several types of airspace leases. The District Airspace Review Committee is responsible for reviewing all proposals to lease an airspace site and conducts conceptual, preliminary, and final phase reviews to ensure previous concerns have been addressed. Certain leases require the Commission's and the Federal Highway Administration’s approvals.
In 2018, Caltrans was authorized to lease airspace or real property acquired for highway purposes for homeless services in certain cities for one dollar per month. Clarifying language was also included that, for the purposes of a park, or recreational use of airspace leases, Caltrans must find that the lease is for public access.
In 2019, the California Transportation Commission (CTC) passed a resolution on the procedure for leasing airspace to public entities (Resolution G-19-43), which authorized Caltrans to enter into leases with public agencies without specific CTC approval. It also required Caltrans to provide an annual report to the Commission on the active airspace leases.
3) I-10 fire. On November 11, 2023, a fire erupted in the airspace under the I-10 Freeway (I-10) in Los Angeles, in a pallet yard in the 1700 block of E. 14th Street near downtown Los Angeles. The fire quickly consumed the yard, multiple trailers, and a second pallet yard. The I-10 was closed to traffic from November 11 to November 19, 2023. Caltrans had been leasing the airspace to Apex Development Inc., since 2008. The fire highlighted some gaps and shortcomings of Caltrans’ airspace leasing program. At the time of the fire, Caltrans did not have an up-to-date inventory of their active airspace leases. Caltrans has since committed to reviewing their active airspace sites and to take action on any sites that might pose a safety risk. In late November 2023, Caltrans released an initial assessment of their 600 active airspace sites. The initial findings highlighted key information on each site such as location, lessee, lease dates, and use type.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee, “Caltrans estimates ongoing administrative costs of approximately $154,000 annually for 1.0 PY of staff time for workload associated with up to 15 additional leases. (State Highway Account)
Unknown future loss of Caltrans lease revenues, potentially in the mid- to high-hundreds of thousands of dollars annually, which may increase in future years to the extent that the gap between lease payments and fair market value increases. Actual lease revenue losses would depend upon the fair market lease value of the specific properties in question and lease terms. Staff notes that these revenue losses would be a General Fund impact because Caltrans lease revenues are currently used to partially offset General Fund payments for transportation-related debt service”
SUPPORT: (Verified 8/14/24)
Office of Los Angeles Mayor Karen Bass (source)
City of Los Angeles
OPPOSITION: (Verified 8/14/24)
Cd11 Coalition for Human Rights
ARGUMENTS IN SUPPORT: According to the Office of Los Angeles Mayor Karen Bass, “Shortly after assuming office, I launched Inside Safe, which takes city-wide action to voluntarily bring people experiencing homelessness inside from tents and encampments. As of March 2024, the program has addressed more than 39 encampments and has brought more than 2,100 Angelenos inside, where they benefit from case management, get connected with supportive services, and receive housing navigation services. In order to continue the success of Inside Safe, the City of Los Angeles is in need of additional locations to store the RVs that are taken off the streets as Angelenos are moved into interim housing. Currently, the City’s storage lots for RVs are about 95 percent full.
“Current law allows the California Department of Transportation to lease property under a freeway, or property acquired for highway purposes, to a local government for $1 per month if the property is used for emergency shelter or a feeding program. AB 2525 will add storage of RVs belonging to people receiving governmental services to relieve homelessness as an eligible category under which the City can lease property from Caltrans for $1 per month. This will allow Inside Safe to continue to bring Angelenos inside by expanding the City’s capacity to store RVs”
ARGUMENTS IN OPPOSITION: According to Cd11 Coalition for Human Rights “This bill is ostensibly designed to securely store vehicles belonging to people receiving housing and homeless services: subsection (d) of the proposed amendment limits use of the leased property to storing “a vehicle belonging to a person receiving services . . . for the purpose of relieving homelessness.
“However, LA City’s track record of criminalizing, displacing and otherwise harming low-income people in RVs without providing adequate housing or services underscores the actual purpose of the proposed legislation: to make it easier to confiscate people’s homes without providing safe or stable long-term housing.”
ASSEMBLY FLOOR: 58-12, 5/22/24
AYES: Addis, Aguiar-Curry, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Connolly, Mike Fong, Gabriel, Garcia, Gipson, Grayson, Haney, Hart, Irwin, Jackson, Jones-Sawyer, Kalra, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Waldron, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NOES: Alanis, Davies, Dixon, Vince Fong, Gallagher, Hoover, Lackey, Jim Patterson, Joe Patterson, Sanchez, Ta, Wallis
NO VOTE RECORDED: Calderon, Cervantes, Chen, Megan Dahle, Essayli, Flora, Friedman, Holden, Mathis, Luz Rivas
Prepared by: Jacob O'Connor / TRANS. / (916) 651-4121
8/23/24 21:36:27
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 2525 |
THIRD READING
Bill No: AB 2525
Author: Zbur (D)
Amended: 4/3/24 in Assembly
Vote: 21
SENATE TRANSPORTATION COMMITTEE: 11-3, 6/25/24
AYES: Cortese, Allen, Archuleta, Becker, Blakespear, Dodd, Gonzalez, Laird, Limón, Newman, Umberg
NOES: Niello, Nguyen, Seyarto
NO VOTE RECORDED: Dahle
ASSEMBLY FLOOR: 58-12, 5/22/24 - See last page for vote
SUBJECT: State highways: property leases
SOURCE: Office of Los Angeles Mayor Karen Bass
DIGEST:
This bill would expand the number and purpose of Department of Transportation (Caltrans) leases of airspace under a freeway, or certain real property acquired for highway purposes, to include a secure vehicle lot program.
ANALYSIS:
Existing law:
- Authorizes Caltrans to offer up to 10 parcels to the City of Los Angeles and to the City of San Jose on a first right of refusal basis for any airspace under a freeway or certain real property acquired for highway purposes for the purposes of an emergency shelter or feeding program. (SHC 104.26)
- Caltrans may offer the parcels for $1 per month, and a payment of an administrative fee not to exceed $500 per month.
This bill:
- Increases the number of parcels that may be leased in the City of Los Angeles from up to 10 parcels to up to 25 parcels.
- Increases the purposes of the leases to include a secure vehicle lot program.
- Defines secure vehicle lot program to mean the use of the leased property to store a vehicle, including, but limited to, a recreational vehicle, belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness.
- Provides that a vehicle stored in a secure vehicle lot program shall comply with all of the following:
- It shall be uninhabited.
- Prior to storage in a secure vehicle lot program, it shall be assessed for safe storage, as defined, by Caltrans and in consultation with the City of Los Angeles.
- It shall not contain hazardous material, except those commonly found in vehicles.
Comments
- Authors Statement. According to the author, “AB 2525 will give the City of Los Angeles (the City) additional tools to address the City’s homelessness crisis and will make it easier for the City to provide services to people experiencing homelessness. Mayor Bass has championed a voluntary program called Inside Safe, which brings unhoused Angelenos into interim housing and connects them to case management, supportive services, and housing navigation services. To date, the program has brought more than 2,100 Angelenos inside, and the City’s storage lots are 95% occupied by Recreational Vehicles (RVs) that are taken off the streets as Angelenos move into interim housing through the program. In order to continue the success of Inside Safe, the City is in need of additional locations to store RVs while their former inhabitants receive services to relieve homelessness. AB 2525 updates the law to allow the City to lease specified property from the California Department of Transportation for $1 a month for this purpose.”
- Inside Safe. Through the Inside Safe program, the City of Los Angeles has sought to move the city’s homeless population to safe, indoor locations. The most recent count from the Los Angeles Homeless Services authority showed approximately 6,500 people experiencing homelessness in the City of Los Angeles are living in approximately 4,000 recreational vehicles (RVs). The City of Los Angeles has attempted to house those living in RVs but is struggling to find secure spaces to store such vehicles and has identified Caltrans airspace as one storage option, but existing law does not allow airspace parcels to be leased for this purpose at a discounted price.
- San Jose, Too. As noted above, a similar lease program for up to ten parcels for the purposes of an emergency shelter or feeding program is operated in the City of San Jose.
- Airspace and airspace leasing. Airspace is the property under or within the
right-of-way of an existing operating highway, and includes all Caltrans owned and operated facilities that are used to support the transportation system. The Streets and Highways Code authorizes Caltrans to lease the use of airspace above or below state highways to private or public entities in accordance with procedures prescribed by the California Transportation Commission (CTC) and various sections of the Code of Federal Regulations. The Caltrans Division of Right of Way manages the statewide airspace program and is responsible for developing policies and procedures governing all aspects of airspace leases. Airspace is not property held for future transportation use nor is it available for sale as it is not excess or surplus to the state's needs. Leasing airspace, and licensing wireless facilities within freeway right-of-way, generates revenue that is deposited into the State Highway Account.
Specifically, Caltrans district offices are responsible for drafting and
negotiating airspace leases (auction or direct negotiation), conducting
inspections on leased properties, collecting rent payments from tenants, and
filing notices of unlawful detainer in court for eviction (if warranted). There are several types of airspace leases. The District Airspace Review Committee is responsible for reviewing all proposals to lease an airspace site and conducts conceptual, preliminary, and final phase reviews to ensure previous concerns have been addressed. Certain leases require the Commission's and the Federal Highway Administration’s approvals.
In 2018, Caltrans was authorized to lease airspace or real property acquired for highway purposes for homeless services in certain cities for one dollar per month. Clarifying language was also included that, for the purposes of a park, or recreational use of airspace leases, Caltrans must find that the lease is for public access.
In 2019, the California Transportation Commission (CTC) passed a resolution on the procedure for leasing airspace to public entities (Resolution G-19-43), which authorized Caltrans to enter into leases with public agencies without specific CTC approval. It also required Caltrans to provide an annual report to the Commission on the active airspace leases.
3) I-10 fire. On November 11, 2023, a fire erupted in the airspace under the I-10 Freeway (I-10) in Los Angeles, in a pallet yard in the 1700 block of E. 14th Street near downtown Los Angeles. The fire quickly consumed the yard, multiple trailers, and a second pallet yard. The I-10 was closed to traffic from November 11 to November 19, 2023. Caltrans had been leasing the airspace to Apex Development Inc., since 2008. The fire highlighted some gaps and shortcomings of Caltrans’ airspace leasing program. At the time of the fire, Caltrans did not have an up-to-date inventory of their active airspace leases. Caltrans has since committed to reviewing their active airspace sites and to take action on any sites that might pose a safety risk. In late November 2023, Caltrans released an initial assessment of their 600 active airspace sites. The initial findings highlighted key information on each site such as location, lessee, lease dates, and use type.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee, “Caltrans estimates ongoing administrative costs of approximately $154,000 annually for 1.0 PY of staff time for workload associated with up to 15 additional leases. (State Highway Account)
Unknown future loss of Caltrans lease revenues, potentially in the mid- to high-hundreds of thousands of dollars annually, which may increase in future years to the extent that the gap between lease payments and fair market value increases. Actual lease revenue losses would depend upon the fair market lease value of the specific properties in question and lease terms. Staff notes that these revenue losses would be a General Fund impact because Caltrans lease revenues are currently used to partially offset General Fund payments for transportation-related debt service”
SUPPORT: (Verified 8/14/24)
City of Los Angeles
Office of Los Angeles Mayor Karen Bass
OPPOSITION: (Verified 8/14/24)
Cd1 Coalition for Human Rights
ARGUMENTS IN SUPPORT: According to the Office of Los Angeles Mayor Karen Bass, “Shortly after assuming office, I launched Inside Safe, which takes city-wide action to voluntarily bring people experiencing homelessness inside from tents and encampments. As of March 2024, the program has addressed more than 39 encampments and has brought more than 2,100 Angelenos inside, where they benefit from case management, get connected with supportive services, and receive housing navigation services. In order to continue the success of Inside Safe, the City of Los Angeles is in need of additional locations to store the RVs that are taken off the streets as Angelenos are moved into interim housing. Currently, the City’s storage lots for RVs are about 95 percent full.
“Current law allows the California Department of Transportation to lease property under a freeway, or property acquired for highway purposes, to a local government for $1 per month if the property is used for emergency shelter or a feeding program. AB 2525 will add storage of RVs belonging to people receiving governmental services to relieve homelessness as an eligible category under which the City can lease property from Caltrans for $1 per month. This will allow Inside Safe to continue to bring Angelenos inside by expanding the City’s capacity to store RVs”
ARGUMENTS IN OPPOSITION: According to Cd11 Coalition for Human Rights “This bill is ostensibly designed to securely store vehicles belonging to people receiving housing and homeless services: subsection (d) of the proposed amendment limits use of the leased property to storing “a vehicle belonging to a person receiving services . . . for the purpose of relieving homelessness.
However, LA City’s track record of criminalizing, displacing and otherwise harming low-income people in RVs without providing adequate housing or services underscores the actual purpose of the proposed legislation: to make it easier to confiscate people’s homes without providing safe or stable long-term housing.”
ASSEMBLY FLOOR: 58-12, 5/22/24
AYES: Addis, Aguiar-Curry, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Connolly, Mike Fong, Gabriel, Garcia, Gipson, Grayson, Haney, Hart, Irwin, Jackson, Jones-Sawyer, Kalra, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Waldron, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NOES: Alanis, Davies, Dixon, Vince Fong, Gallagher, Hoover, Lackey, Jim Patterson, Joe Patterson, Sanchez, Ta, Wallis
NO VOTE RECORDED: Calderon, Cervantes, Chen, Megan Dahle, Essayli, Flora, Friedman, Holden, Mathis, Luz Rivas
Prepared by: Jacob O'Connor / TRANS. / (916) 651-4121
8/19/24 17:46:27
**** END ****
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anna Caballero, Chair
2023 - 2024 Regular Session
AB 2525 (Zbur) - State highways: property leases
Version: April 3, 2024 | Policy Vote: TRANS. 11 - 3 |
Urgency: No | Mandate: No |
Hearing Date: August 5, 2024 | Consultant: Mark McKenzie |
Bill Summary:
AB 2525 would expand existing authority for the Department of Transportation (Caltrans) to lease airspace and parcels acquired for highway purposes in the City of Los Angeles for specified homelessness purposes to allow additional leases for a secure vehicle lot program, as specified.
Fiscal Impact:
- Caltrans estimates ongoing administrative costs of approximately $154,000 annually for 1.0 PY of staff time for workload associated with up to 15 additional leases. (State Highway Account)
- Unknown future loss of Caltrans lease revenues, potentially in the mid- to high-hundreds of thousands of dollars annually, which may increase in future years to the extent that the gap between lease payments and fair market value increases. Actual lease revenue losses would depend upon the fair market lease value of the specific properties in question and lease terms. Staff notes that these revenue losses would be a General Fund impact because Caltrans lease revenues are currently used to partially offset General Fund payments for transportation-related debt service.
Background:
Existing law authorizes Caltrans to lease areas above or below state highways (airspace) to public or private entities for a term not to exceed 99 years, and generally requires leases to private entities to be competitively bid and at fair market value.
Existing law authorizes Caltrans to lease specified parcels of property in the City of San Diego and the Counties of Santa Barbara and San Joaquin for emergency shelter or feeding program purposes. Existing law also provides more general authority for Caltrans to lease on a first right of refusal basis airspace or property acquired for highway purposes to the City and County of San Francisco and the Cities of Los Angeles, Oakland, and San Jose for emergency shelter or feeding programs. These provisions generally limit the lease amount to $1 per month and an administrative charge of up to $500 per year for up to 10 parcels in each jurisdiction, unless Caltrans determines that a higher administrative fee is necessary to cover its costs.
Existing law, until January 1, 2029, authorizes Caltrans to lease certain airspace or real property to a local or state agency for the purpose of conducting a temporary emergency shelter or feeding program, at a monthly charge of $1 a month, plus an annual administrative fee of up to $5,000, or as high as $15,000, to cover its administrative costs, as specified. Existing law requires lease revenues to be deposited into the State Highway Account, but these revenues are currently used to partially offset General Fund payments for transportation-related debt service.
Proposed Law:
AB 2525 would expand the number of parcels and the purposes of Caltrans leases of airspace, or property acquired for highway purposes, in the City of Los Angeles. Specifically, this bill would:
- Increase the number of parcels that may be leased in the City of Los Angeles for $1 per month from 10 to 25 parcels.
- Expand the purposes of those leases to include a secure vehicle lot program, an emergency shelter or feeding program, or any combination of those purposes.
- Define a “secure vehicle lot program” as the use of the leased property to story a vehicle, including a recreational vehicle, belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness.
- Require a vehicle stored in a secure vehicle lot program to be uninhabited and assessed for safe storage prior to storage, as specified, and prohibit the vehicle from containing hazardous material, except those commonly found in vehicles.
Related Legislation:
SB 2333 (Santiago), which is currently pending on this Committee’s Suspense File, would require Caltrans to submit an annual report to the Legislature that includes specified information on every airspace site leased by the department.
SB 519 (Beall), Chap. 444/2019, authorized Caltrans to offer for lease on a first right of refusal to the Cities of Los Angeles and San Jose any airspace under a freeway, or real property acquired for highway purposes, for an emergency shelter or feeding program. For up to ten parcels in each jurisdiction, the lease amount is limited to $1 per month, plus an administrative fee of up to $500 per year, as specified.
Staff Comments:
The City of Los Angeles has established the Inside Safe program, a voluntary program that provides interim housing for unhoused Angelinos and connects them to case management, supportive services, and housing navigation services. According to this bill’s author, the program has taken in more than 2,100 unhoused individuals, and the City’s storage lots are 95% occupied by recreational vehicles that are taken off the streets as those persons are moved into interim housing through the program. This bill is intended to provide an option for additional secure storage of recreational vehicles while their former inhabitants receive homelessness services.
Caltrans currently leases approximately 600 parcels to public and private entities throughout the state for various purposes, which generates revenues that are used to partially offset General Fund payments for transportation-related debt service. By authorizing Caltrans to enter into an additional 15 airspace and real property leases with the City of Los Angeles at below market-rates, this bill would result in unquantifiable future revenue losses, and increased General Fund payments for transportation-related debt. Actual revenue losses would depend upon the number of leases that the City of Los Angeles opts to pursue as a result of the bill and the market rate of specific parcels chosen for purposes of a secure vehicle lot program, an emergency shelter or feeding program, or any combination of those purposes.
-- END --
SENATE COMMITTEE ON TRANSPORTATION
Senator Dave Cortese, Chair
2023 - 2024 Regular
Bill No: Hearing Date: 6/25/2024
Author: | Zbur | ||
Version: | 4/3/2024 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Bob Franzoia | ||
SUBJECT:
DIGEST: This bill would expand the number and purpose of Department of Transportation (Caltrans) leases of airspace under a freeway, or certain real property acquired for highway purposes, to include a secure vehicle lot program.
ANALYSIS:
Existing law:
- Authorizes Caltrans to offer up to 10 parcels to the City of Los Angeles and to the City of San Jose on a first right of refusal basis for any airspace under a freeway or certain real property acquired for highway purposes for the purposes of an emergency shelter or feeding program. (SHC 104.26)
- Caltrans may offer the parcels for $1 per month, and a payment of an administrative fee not to exceed $500 per month.
This bill:
- Would increase the number of parcels that may be leased in the City of Los Angeles from up to 10 parcels to up to 25 parcels.
- Would increase the purposes of the leases to include a secure vehicle lot program.
- Would define secure vehicle lot program to mean the use of the leased property to store a vehicle, including, but limited to, a recreational vehicle, belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness.
- Would provide that a vehicle stored in a secure vehicle lot program shall comply with all of the following:
- It shall be uninhabited.
- Prior to storage in a secure vehicle lot program, it shall be assessed for safe storage, as defined, by Caltrans and in consultation with the City of Los Angeles.
- It shall not contain hazardous material, except those commonly found in vehicles.
COMMENTS:
- Authors Statement. According to the author, “AB 2525 will give the City of Los Angeles (the City) additional tools to address the City’s homelessness crisis and will make it easier for the City to provide services to people experiencing homelessness. Mayor Bass has championed a voluntary program called Inside Safe, which brings unhoused Angelenos into interim housing and connects them to case management, supportive services, and housing navigation services. To date, the program has brought more than 2,100 Angelenos inside, and the City’s storage lots are 95% occupied by Recreational Vehicles (RVs) that are taken off the streets as Angelenos move into interim housing through the program. In order to continue the success of Inside Safe, the City is in need of additional locations to store RVs while their former inhabitants receive services to relieve homelessness. AB 2525 updates the law to allow the City to lease specified property from the California Department of Transportation for $1 a month for this purpose.”
- Inside Safe. Through the Inside Safe program, the City of Los Angeles has sought to move the city’s homeless population to safe, indoor locations. The most recent count from the Los Angeles Homeless Services authority showed approximately 6,500 people experiencing homelessness in the City of Los Angeles are living in approximately 4,000 recreational vehicles (RVs). The City of Los Angeles has attempted to house those living in RVs but is struggling to find secure spaces to store such vehicles and has identified Caltrans airspace as one storage option, but existing law does not allow airspace parcels to be leased for this purpose at a discounted price.
- San Jose, Too. As noted above, a similar lease program for up to ten parcels for the purposes of an emergency shelter or feeding program is operated in the City of San Jose.
- Airspace and airspace leasing. Airspace is the property under or within the
right-of-way of an existing operating highway, and includes all Caltrans owned and operated facilities that are used to support the transportation system. The Streets and Highways Code authorizes Caltrans to lease the use of airspace above or below state highways to private or public entities in accordance with procedures prescribed by the California Transportation Commission (CTC) and various sections of the Code of Federal Regulations. The Caltrans Division of Right of Way manages the statewide airspace program and is responsible for developing policies and procedures governing all aspects of airspace leases. Airspace is not property held for future transportation use nor is it available for sale as it is not excess or surplus to the state's needs. Leasing airspace, and licensing wireless facilities within freeway right-of-way, generates revenue that is deposited into the State Highway Account.
Specifically, Caltrans district offices are responsible for drafting and
negotiating airspace leases (auction or direct negotiation), conducting
inspections on leased properties, collecting rent payments from tenants, and
filing notices of unlawful detainer in court for eviction (if warranted). There are several types of airspace leases. The District Airspace Review Committee is responsible for reviewing all proposals to lease an airspace site and conducts conceptual, preliminary, and final phase reviews to ensure previous concerns have been addressed. Certain leases require the Commission's and the Federal Highway Administration’s approvals.
In 2018, Caltrans was authorized to lease airspace or real property acquired for highway purposes for homeless services in certain cities for one dollar per month. Clarifying language was also included that, for the purposes of a park, or recreational use of airspace leases, Caltrans must find that the lease is for public access.
In 2019, the California Transportation Commission (CTC) passed a resolution on the procedure for leasing airspace to public entities (Resolution G-19-43), which authorized Caltrans to enter into leases with public agencies without specific CTC approval. It also required Caltrans to provide an annual report to the Commission on the active airspace leases.
3) I-10 fire. On November 11, 2023, a fire erupted in the airspace under the I-10 Freeway (I-10) in Los Angeles, in a pallet yard in the 1700 block of E. 14th Street near downtown Los Angeles. The fire quickly consumed the yard, multiple trailers, and a second pallet yard. The I-10 was closed to traffic from November 11 to November 19, 2023. Caltrans had been leasing the airspace to Apex Development Inc., since 2008. The fire highlighted some gaps and shortcomings of Caltrans’ airspace leasing program. At the time of the fire, Caltrans did not have an up-to-date inventory of their active airspace leases. Caltrans has since committed to reviewing their active airspace sites and to take action on any sites that might pose a safety risk. In late November 2023, Caltrans released an initial assessment of their 600 active airspace sites. The initial findings highlighted key information on each site such as location, lessee, lease dates, and use type.
Related Legislation:
AB 2333 (Santiago). Requires Caltrans to annually submit a report to the Assembly and Senate Transportation Committees on every airspace site leased by Caltrans. AB 2333 passed Senate Transportation 15-0 on May 28, 2024.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
POSITIONS: (Communicated to the committee before noon on Wednesday,
June 19, 2024.)
SUPPORT:
Office of Los Angeles Mayor Karen Bass
OPPOSITION:
None received
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 2525
Author:(Zbur)
As Amended Ver:April 3, 2024
Majority vote
SUMMARY
Expands the purposes that the California Department of Transportation's airspace may be leased to the city of Los Angeles (LA) to include a secure vehicle lot program and increases the number of eligible parcels that can be leased for $1 per month to 25.
Major Provisions
- Authorizes Caltrans to lease to LA any airspace under a freeway for a secure vehicle lot program
- Defines as the use of the leased property to store a vehicle, including, but not limited to, a recreational vehicle, belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness.
- Specifies that a vehicle stored in such a lot be a) uninhabited, b) assessed by Caltrans in consultation with LA for safe storage prior to storage and c) not contain hazardous material, except those hazardous materials commonly found in vehicles.
COMMENTS
Airspace is the property under or within the right-of-way of an existing operating highway, and includes all Caltrans owned and operated facilities that are used to support the transportation system. Caltrans leases airspace within the state highway right-of-way if it can safely accommodate a secondary use. Caltrans is responsible for managing those airspace properties. Airspace is not property held for a future transportation use nor is it available for sale as it is not excess or surplus to the state's needs. By leasing airspace sites and licensing wireless facilities within freeway right-of-way, airspace generates revenue that is deposited into the State Highway Account.
In 2018, Caltrans was authorized to lease airspace or real property acquired for highway purposes for homeless services in specified cities for $1 per month. Clarifying language was also included that, for the purposes of a park, or recreational use of airspace leases, Caltrans must find that the lease is for public access. In 2019, Caltrans authority was expanded to allow it to lease airspace or real property acquired for highway purposes for the purpose of conducting a temporary emergency shelter or feeding program statewide.
In 2019, the California Transportation Commission (CTC) passed a resolution on the procedure for leasing airspace to public entities (Resolution G-19-43), which authorized Caltrans to enter into leases with public agencies without specific CTC approval. It also required Caltrans to provide an annual report to the Commission on the active airspace leases.
The authority for Caltrans to enter into airspace leases is in existing law and Caltrans is generally obligated to secure fair market value lease rates for airspace under freeways or other available parcels, based on the estimated highest and best use of the property. Notable exceptions to the fair market value requirement authorize Caltrans to lease unused parcels of land below market rates to various cities and counties for the purposes of emergency shelters and feeding programs. In each of these exceptions, the Legislature has found that below-market rate leases for these particular uses serve a public purpose.
Inside Safe LA. The most recent point-in-time count data from the Los Angeles Homeless Services Authority (LAHSA) showed that nearly 6,500 people experiencing homelessness in the city of Los Angeles are living in approximately 4,000 recreational vehicles (RVs). That number, which has grown by 40% since 2018, represents 22% of the city of Los Angeles' total unsheltered homeless population.
While some RV dwellers are unemployed, some have jobs, but cannot afford to pay rent in Los Angeles where the average one-bedroom apartment costs $2,000 to $2,500 a month. This has led to large encampments of RVs on local streets.
In 2022, Los Angeles launched a program called Inside Safe, which seeks to voluntarily bring people experiencing homelessness inside from tents and encampments. To date, the program has addressed more than 39 encampments and has brought more than 2,100 people experiencing homelessness inside, where they receive case management, supportive and housing navigation services.
In December 2023, an Inside Safe operation in the San Fernando Valley focused on an encampment of more than 50 RVs on Forest Lawn Drive in Los Angeles. About 20 RVs and 31 people experiencing homelessness accepted housing and turned their vehicles over to the city of Los Angeles.
The city of Los Angeles is seeking additional locations to store the RVs that are taken off the streets as people experiencing homelessness who participate in Inside Safe are moved into interim housing. As of early 2024, 95% of the city's 325 spots for RVs were full.
A coalition of residents living in vehicles, social service providers, and legal experts disagrees with LA's approach with the Inside Safe program, and states that expanded safe parking for RVs has not happened, despite the overwhelming need. Although there are 26 Safe Parking locations throughout LA for vehicles other than RVs, only two safe parking RV sites, with a total of 325 spaces–95% of which are occupied. LA does continue to ticket, tow, and restricts parking for oversized vehicles. Examples of parking restrictions include painted red curbs, and signs restricting parking and oversized vehicles.
This bill expands the uses Caltrans may lease airspace to the city of Los Angeles to include a "secure lot program," which is defined as, "the use of the leased property to store a vehicle, including, but not limited to, a recreational vehicle, belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness." The bill specifies that the vehicles must be uninhabited, and not contain hazardous materials, as defined in state law, except for those commonly found in vehicles.
I-10 Freeway Fire. On November 11, 2023, a fire erupted at the airspace site under the I-10 Freeway near downtown Los Angeles used for wooden pallet storage pursuant to an at-market lease with Apex Development, Inc. As a result, the I-10 was closed to traffic from November 11 to November 19, 2023.
Following the fire, at Governor Newsom's request, Caltrans conducted an examination and assessment of all airspace sites throughout the state. Caltrans found there to be 601 airspace leases in the state, 38 of which had risks or warranted further inspection.
Airspace is located below, above or adjacent to critical transportation infrastructure. As the I-10 fire makes obvious, airspace leases can jeopardize this infrastructure. It will be important Caltrans and LA ensure an RV may be stored at an airspace site safely, prior to storage, as this bill requires.
According to the Author
"AB 2525 will give the City of Los Angeles (the City) additional tools to address the City's homelessness crisis and will make it easier for the City to provide services to people experiencing homelessness. Mayor Bass has championed a voluntary program called Inside Safe, which brings unhoused Angelenos into interim housing and connects them to case management, supportive services, and housing navigation services. To date, the program has brought more than 2,100 Angelenos inside, and the City's storage lots are 95% occupied by RVs that are taken off the streets as Angelenos move into interim housing through the program. In order to continue the success of Inside Safe, the City is in need of additional locations to store RVs while their former inhabitants receive services to relieve homelessness. AB 2525 updates the law to allow the City to lease specified property from the California Department of Transportation for $1 a month for this purpose."
Arguments in Support
Los Angeles Mayor Karen Bass writes, "I write as the proud sponsor of AB 2525 (Zbur), which will make it easier for the City of Los Angeles to provide services to people experiencing homelessness by allowing the City to lease additional space to store recreational vehicles (RVs) while their former inhabitants are placed in interim housing and receive services.
Arguments in Opposition
CD11 Coalition for Human Rights writes, "AB 2525 will simply expand the illegal confiscation and destruction of people's vehicle dwellings, leaving them without housing or services. Nothing in the law grants a person whose vehicle is stored on CalTrans property pursuant to this legislation any recourse if they are not offered adequate housing in exchange for their RV. The City will inevitably use the land in question as a de facto dumping ground for all RVs they tow, regardless of what happens to the former inhabitant."
FISCAL COMMENTS
According to the Assembly Committee on Appropriations:
Caltrans anticipates additional staff resources, at an annual cost of $154,000 (one position), to manage the additional workload that will result from increasing, from 10 parcels to 25 parcels, the number of parcels Caltrans may lease to LA for a shelter or feeding program, or for secure vehicle lots (State Highway Account).
Because this bill authorizes Caltrans to lease to LA 15 additional parcels, for specified purposes, it may result in forgone revenue that Caltrans may otherwise have realized, were it to have leased any of the 15 parcels at market rate.
VOTES
ASM TRANSPORTATION: 11-4-0
YES: Wilson, Aguiar-Curry, Berman, Juan Carrillo, Hart, Jackson, Lowenthal, Papan, Ting, Ward, Wicks
NO: Davies, Hoover, Sanchez, Wallis
ASM APPROPRIATIONS: 11-4-0
YES: Wicks, Arambula, Bryan, Calderon, Wendy Carrillo, Mike Fong, Grayson, Haney, Hart, Pellerin, Villapudua
NO: Sanchez, Dixon, Jim Patterson, Ta
UPDATED
VERSION: April 3, 2024
CONSULTANT: Julia Kingsley / TRANS. / (916) 319-2093 FN: 0003023
Date of Hearing: May 8, 2024
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 2525
Author:(Zbur) – As Amended Ver:April 3, 2024
Policy Committee: | Transportation | Vote: | 11 - 4 |
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| ||
|
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill authorizes the Department of Transportation (Caltrans) to lease airspace under a freeway within the City of Los Angeles (LA) to the city for a secure vehicle lot program.
Specifically, this bill authorizes Caltrans to lease to LA any airspace under a freeway for a secure vehicle lot program, which the bill defines as the use of the leased property to store a vehicle, including, but not limited to, a recreational vehicle, belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness. The bill specifies that a vehicle stored in such a lot be (a) uninhabited, (b) assessed by Caltrans in consultation with LA for safe storage prior to storage and (c) not contain hazardous material, except those hazardous materials commonly found in vehicles.
In addition, the bill expands, from 10 to 25, the number of parcels in LA Caltrans may lease to LA for a shelter or feeding program for the cost of $1 per month, and expands the use of such parcels to a secure vehicle lot program.
FISCAL EFFECT:
Caltrans anticipates additional staff resources, at an annual cost of $154,000 (one position), to manage the additional workload that will result from increasing, from 10 parcels to 25 parcels, the number of parcels Caltrans may lease to LA for a shelter or feeding program, or for secure vehicle lots (State Highway Account).
Because this bill authorizes Caltrans to lease to LA 15 additional parcels, for specified purposes, it may result in forgone revenue that Caltrans may otherwise have realized, were it to have leased any of the 15 parcels at market rate.
COMMENTS:
- Purpose. The author intends this bill, which is supported by Mayor Karen Bass, to help LA provide services to people experiencing homelessness. According to the author:
Mayor Bass has championed a voluntary program called Inside Safe, which brings unhoused Angelenos into interim housing and connects them to case management, supportive services, and housing navigation services. To date, the program has brought more than 2,100 Angelenos inside, and the City’s storage lots are 95% occupied by RVs that are taken off the streets as Angelenos move into interim housing through the program. In order to continue the success of Inside Safe, the City is in need of additional locations to store RVs while their former inhabitants receive services to relieve homelessness. AB 2525 updates the law to allow the City to lease specified property from the California Department of Transportation for $1 a month for this purpose.
- Background.
Airspace. Airspace is the area above or below a state highway. Existing law allow Caltrans to lease airspace for up to 99 years to public and private entities, subject to a variety of restrictions and conditions. Generally, statute requires Caltrans to lease airspace at market value, with some exceptions. Caltrans acknowledges its obligation to monitor use of airspace properties after leasing and has adopted policies and practices concerning regular inspection of all leased properties.
Statute Allows Sub-market Airspace Leases, in Some Instances. State law authorizes Caltrans to lease at a discount up to 10 parcels of airspace under a freeway or other real property to each LA and the City of San Jose for emergency shelter or feeding programs. The Legislature provided this authorization to allow each city to provide much-needed services to their respective homeless populations.
Through the Inside Sage program, LA has sought to move the city’s homeless population to safe, indoor locations. The most recent point-in-time count from the Los Angeles Homeless Services Authority showed that nearly 6,500 people experiencing homelessness in LA are living in approximately 4,000 recreational vehicles (RVs). LA has attempted to house those living in RVs; however, the city is struggling to find secure spaces at which to store such RVs. The city has identified airspace as one storage option, but existing law does not allow Caltrans to lease airspace sites to the city for this purpose at a discounted price, even though the city seeks to store the RVs as part of its provision of services to people experiencing homelessness.
I-10 Freeway Fire. On November 11, 2023, a fire erupted at the airspace site under the I-10 Freeway near downtown Los Angeles used for wooden pallet storage pursuant to an at-market lease with Apex Development, Inc. As a result, the I-10 was closed to traffic from November 11 to November 19, 2023.
Following the fire, at Governor Newsom’s request, Caltrans conducted an examination and assessment of all airspace sites throughout the state. Caltrans found there to be 601 airspace leases in the state, 38 of which had risks or warranted further inspection.
Airspace is located below, above or adjacent to critical transportation infrastructure. As the I-10 fire makes obvious, airspace leases can jeopardize this infrastructure. It will be important Caltrans and LA ensure an RV may be stored at an airspace site safely, prior to storage, as this bill requires.
- Related Legislation. AB 2333 (Santiago) requires Caltrans, on or before January 1, 2026, and annually thereafter, to submit a report to the Assembly Committee on Transportation and the Senate Committee on Transportation on every airspace site leased by Caltrans. AB 2333 is pending hearing in this committee.
Analysis Prepared by: Jay Dickenson / APPR. / (916) 319-2081
Date of Hearing: April 8, 2024
ASSEMBLY COMMITTEE ON TRANSPORTATION
Lori D. Wilson, Chair
ABPCA Bill Id:AB 2525 (
Author:Zbur) – As Amended Ver:April 3, 2024
SUBJECT: State highways: property leases
SUMMARY: Expands the purposes that the California Department of Transportation’s airspace may be leased to the city of Los Angeles to include a secure vehicle lot program and increases the number of eligible parcels that can be leased for $1 per month to 25.
EXISTING LAW:
- Allows California Department of Transportation’s (Caltrans) to lease to public agencies or private entities the use of areas above or below state highways for any term less than 99 years. (Streets and Highways Code (SHC) Section 104.12)
- Authorized emergency vehicles which are on active duty are given preference in the use of these areas, and no payment of consideration shall be required. (SHC Section 104.12)
- Requires Caltrans to determine that the proposed use is not in conflict with the zoning regulations of the local government concerned prior to entering into any lease. (SHC Section 104.12)
- Requires the leases to be made in accordance with procedures to be prescribed by the commission. (SHC Section 104.12)
- Requires leases with private entities to be a competitive bidding process, unless the commission finds, by unanimous vote, that in certain cases competitive bidding would not be in the best interests of the state. (SHC Section 104.12)
- Requires the revenues from the leases to be deposited in the State Highway Account. (SHC Section 104.12)
- If leased property was provided to the department for state highway purposes through donation or at less than fair market value, the lease revenues shall be shared with the donor or seller if so provided by contract when the property was acquired. (SHC Section 104.12)
- Allows Caltrans to make the land or airspace available within the right-of-way of any highway, with or without charge, to a public entity to accommodate needed passenger, commuter, or high-speed rail, magnetic levitation systems, and highway and nonhighway public mass transit facilities. (SHC Section 104.12)
- Requires Caltrans to consider future lease potential of areas above or below state highway projects when planning new state highway projects. (SHC Section 104.12)
- Authorizes Caltrans to lease at a discount up to 10 parcels of airspace under a freeway or other real property to the City of Los Angeles and the City of San Jose for emergency shelter or feeding programs. (SHC Section 104.26)
- Authorizes Caltrans to enter into lease agreements with a local entity for purposes of establishing an emergency shelter or feeding program, as specified.(SHC Section 104.30)
FISCAL EFFECT: Unknown
COMMENTS: Airspace is the property under or within the right-of-way of an existing operating highway, and includes all Caltrans owned and operated facilities that are used to support the transportation system. Caltrans leases airspace within the state highway right-of-way if it can safely accommodate a secondary use. Caltrans is responsible for managing those airspace properties. Airspace is not property held for a future transportation use nor is it available for sale as it is not excess or surplus to the state's needs. By leasing airspace sites and licensing wireless facilities within freeway right-of-way, airspace generates revenue that is deposited into the State Highway Account.
In 2018, Caltrans was authorized to lease airspace or real property acquired for highway purposes for homeless services in specified cities for $1 per month. Clarifying language was also included that, for the purposes of a park, or recreational use of airspace leases, Caltrans must find that the lease is for public access. In 2019, Caltrans authority was expanded to allow it to lease airspace or real property acquired for highway purposes for the purpose of conducting a temporary emergency shelter or feeding program statewide.
In 2019, the California Transportation Commission (CTC) passed a resolution on the procedure for leasing airspace to public entities (Resolution G-19-43), which authorized Caltrans to enter into leases with public agencies without specific CTC approval. It also required Caltrans to provide an annual report to the Commission on the active airspace leases.
The authority for Caltrans to enter into airspace leases is in existing law and Caltrans is generally obligated to secure fair market value lease rates for airspace under freeways or other available parcels, based on the estimated highest and best use of the property. Notable exceptions to the fair market value requirement authorize Caltrans to lease unused parcels of land below market rates to various cities and counties for the purposes of emergency shelters and feeding programs. In each of these exceptions, the Legislature has found that below-market rate leases for these particular uses serve a public purpose.
Inside Safe LA. The most recent point-in-time count data from the Los Angeles Homeless Services Authority (LAHSA) showed that nearly 6,500 people experiencing homelessness in the city of Los Angeles are living in approximately 4,000 recreational vehicles (RVs). That number, which has grown by 40% since 2018, represents 22% of the city of Los Angeles’ total unsheltered homeless population.
While some RV dwellers are unemployed, some have jobs, but cannot afford to pay rent in Los Angeles where the average one-bedroom apartment costs $2,000 to $2,500 a month. This has led to large encampments of RVs on local streets.
In 2022, Los Angeles launched a program called Inside Safe, which seeks to voluntarily bring people experiencing homelessness inside from tents and encampments. To date, the program has addressed more than 39 encampments and has brought more than 2,100 people experiencing homelessness inside, where they receive case management, supportive and housing navigation services.
In December 2023, an Inside Safe operation in the San Fernando Valley focused on an encampment of more than 50 RVs on Forest Lawn Drive in Los Angeles. About 20 RVs and 31 people experiencing homelessness accepted housing and turned their vehicles over to the city of Los Angeles.
The city of Los Angeles is seeking additional locations to store the RVs that are taken off the streets as people experiencing homelessness who participate in Inside Safe are moved into interim housing. As of early 2024, 95% of the city’s 325 spots for RVs were full.
This bill expands the uses Caltrans may lease airspace to the city of Los Angeles to include a “secure lot program,” which is defined as, “the use of the leased property to store a vehicle, including, but not limited to, a recreational vehicle, belonging to a person receiving services from the lessee or other governmental agency for the purpose of relieving homelessness.” The bill specifies that the vehicles must be uninhabited, and not contain hazardous materials, as defined in state law, except for those commonly found in vehicles.
Committee comments. This bill may set a precedent for additional localities to seek state legislation to authorize Caltrans’ to lease airspace for secure lot programs within their jurisdiction. The Legislature may wish to consider if this is the most appropriate and cost-effective use of airspace.
In addition, in no way should the expansion of the purpose of leasing airspace to include abandoned vehicles, result in unsafe conditions, and precautions must be taken to ensure that these vehicles are safely stored. The author may wish to consider clarify the storage solution agreed to by Caltrans and the city of Los Angeles comply with National Fire Protection Association (NFPA) standard 502, which provides prescriptive guidance for managing storage under roadways.
According to the author, “AB 2525 will give the City of Los Angeles (the City) additional tools to address the City’s homelessness crisis and will make it easier for the City to provide services to people experiencing homelessness. Mayor Bass has championed a voluntary program called Inside Safe, which brings unhoused Angelenos into interim housing and connects them to case management, supportive services, and housing navigation services. To date, the program has brought more than 2,100 Angelenos inside, and the City’s storage lots are 95% occupied by RVs that are taken off the streets as Angelenos move into interim housing through the program. In order to continue the success of Inside Safe, the City is in need of additional locations to store RVs while their former inhabitants receive services to relieve homelessness. AB 2525 updates the law to allow the City to lease specified property from the California Department of Transportation for $1 a month for this purpose.”
In support, Los Angeles Mayor Karen Bass writes, “I write as the proud sponsor of AB 2525 (Zbur), which will make it easier for the City of Los Angeles to provide services to people experiencing homelessness by allowing the City to lease additional space to store recreational vehicles (RVs) while their former inhabitants are placed in interim housing and receive services.
Related legislation. AB 2333 (Santiago) of 2024 requires Caltrans to annually submit a report to the Assembly and Senate Transportation Committees on every airspace site leased by Caltrans.
SB 211 (Beall), Chapter 343, Statutes of 2019 authorizes Caltrans to enter into lease agreements with a local entity for purposes of establishing an emergency shelter or feeding program, as specified.
SB 519 (Beall), Chapter 444, Statutes of 2018 authorizes Caltrans to lease at a discount up to 10 parcels of airspace under a freeway or other real property to the City of Los Angeles and the City of San Jose for emergency shelter or feeding programs.
AB 2908 (Transportation Committee), Chapter 860, Statutes of 2000, enacts the Assembly Transportation Committee's annual omnibus bill of noncontroversial and technical provisions, including repealing certain legislative reports relating to airspace and land acquisitions.
REGISTERED SUPPORT / OPPOSITION:
Support
Los Angeles Mayor, Karen Bass (sponsor)
Opposition
None on file
Analysis Prepared by: Julia Kingsley / TRANS. / (916) 319-2093
Discussed in Hearing
52SEC
Assembly Floor
4MIN
Senate Floor
22SEC
Senate Standing Committee on Appropriations
6MIN
Senate Standing Committee on Transportation
2MIN
Assembly Floor
6MIN
Assembly Standing Committee on Transportation
Bill Author
Bill Co-Author(s):