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SR 238 Hayward Bypass Program
FREQUENTLY ASKED QUESTIONS AND ANSWERS
A community meeting was held on December 12, 2007 at Centennial Hall in Hayward for the Hayward Bypass Property Program. At the meeting, the Department committed to providing timely information to the community. One of the ways information will be provided is by the posting of frequently asked questions and the answers on the Program website. This segment of the Hayward Bypass Property Program web site will be updated periodically as new questions are asked and as answers are developed. The most recent questions and answers will be dated and posted at the top of the section. As new questions and answers are added, the previously updated information will be merged with earlier information.
Q - What is the Department's definition of excess land?
A - Excess land is defined as either property or an interest in property owned by the State of California, Department of Transportation which the Department originally acquired for a transportation project or other operational need, such as a maintenance station and which is no longer required. The property or interest in property becomes excess when it is no longer needed for either the purpose for which it was originally acquired or for any other planned Department-related purpose.
Q - Is the property the Department acquired for the Hayward Bypass project now excess land?
A – No, property acquired for the Hayward Bypass project has not, as yet, been classified as excess land. The parcels will be classified as excess land after the California Transportation Commission formally rescinds the Hayward Bypass freeway alignment adoption. Under current planning schedules, the Commission will be asked to take this action sometime during 2008.
Q - How can I find out if a particular parcel is available for sale?
A - Once parcels acquired for the Hayward Bypass project are classified as excess land, maps and specific parcel information will be posted on the Department's web site together with details concerning the estimated schedule and process for sale of individual parcels as these details are developed.
Q - How can I get on a mailing list to be notified of upcoming sales of excess land?
A – Contact the Department's District 4 excess land sales branch and let them know you want to be notified of upcoming sales of properties acquired for the Hayward Bypass project. The Branch may be contacted at (510) 286-5342 or through the following link www.dot.ca.gov/property.
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Q - How will the Department proceed with the disposal of excess parcels acquired for the Hayward Bypass project?
A - The Department's objective is to find the most fair and equitable solution for all parties and divest itself of ownership of the parcels at the earliest practical time. Parcel-specific details will be developed as part of the overall disposal process.
Q - How is excess land sold?
A - Most parcels of excess land are sold at a public auction to the highest responsible bidder. Under certain circumstances, there are alternate procedures used in lieu of this standard practice. For example:
- Excess parcels may be disposed of at the fair market value, determined by one or more appraisals, by direct sale or lease to a local public agency, housing authority or redevelopment agency within whose jurisdiction the property is located.
- Occupants of single family residences who have occupied the residence for at least five consecutive years and who are current in all rent obligations may be offered the opportunity to purchase the property they occupy at its fair market value as determined by an appraisal.
- A parcel incapable of independent development may be disposed of by a direct sale to an adjoining owner.
- Due to unique circumstances, additional disposal options may be utilized for parcels acquired for the Hayward Bypass project.
Q - Is there a minimum bid required at a public auction of excess land?
A - Yes. Information concerning the required minimum bid is contained in the sales announcement for the specific parcel. The sales announcement will be posted on the Department’s website which can be accessed through the following link www.dot.ca.gov/property.
Q - What form of payment is required for the minimum bid?
A - The Department accepts money orders, and cashier's and certified checks. Personal checks and cash are not accepted.
Q - What do I need to do in order to bid on a parcel of excess land?
A - Generally speaking, you only need to attend the auction and register to bid, which would include verification of the required minimum deposit. However, it is important to review the sales announcement and inspect the parcel prior to the auction. The Department sells excess land on an "as is" basis.
Q - Who pays the closing costs on excess land sale transactions?
A - The buyer is responsible for payment of all closing costs, including, but not limited to, all recording fees, documentary stamp taxes or other real estate transaction taxes or fees, escrow fees and broker’s commissions, if any.
Q - Does the Department offer financing for excess parcels?
A - The Department has the ability to offer financing in a limited number of circumstances when other financing options are not available or feasible. Department financing is typically limited to a term not to exceed ten years, at a market interest rate with quarterly payments. The periodic loan payments are based on a ten-year amortization schedule. The loan is secured by a first deed of trust on the applicable excess parcel.
Q - How is the term "fair market value" defined by the Department?
A – The Department defines “fair market value” as the highest, or most probable price, estimated in terms of money, on the date of valuation, which a parcel would bring if exposed for sale on the open market for a reasonable period of time, that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obligated to sell, and a buyer, being ready, willing and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.
Q - Will the "fair market value" for Hayward Bypass excess parcels be at today's prices?
A - The "fair market value" is determined by a current appraisal which will reflect market conditions at the time the parcel is appraised or offered for sale.
Q - When an appraiser inspects improvements as part of the appraisal assignment may the tenant be present in order to identify problems or unique features associated with the parcel?
A - Yes.
Q - How is the term "highest and best use" defined by the Department?
A – “Highest and best use” is defined by the Department as that reasonable and probable use of the property which is:
- Physically possible
- Legally permissible
- Maximally productive
- Financially feasible
which would support the highest present value for the parcel.
Q - How will the Department value parcels with residential improvements which are zoned for other uses?
A - The value will be determined by an appraiser based on the proposed highest and best use of the parcel or by bidders at an auction based on the parties' informed opinion of the value of the parcel after taking all available relevant information into consideration.
Q - Could rent we have paid be applied toward the purchase price of a parcel?
A - Under existing law, the Department does not have the authority to apply rent to the purchase price of a parcel of excess land.
Q - How will the current unstable real estate market affect the sale of parcels?
A – Hayward Bypass excess properties will be affected by current real estate market conditions essentially in the same way all other properties for sale in the same time period are affected. The Department will sell excess parcels at a value determined by the market either at public auctions or as determined by appraisals based on recent market data. If, at the time of sale or appraisal, current market conditions have resulted in a reduction in property values from previous levels, this decline will be reflected in the value obtained at the auction or established by the appraiser.
Q - Will there be restrictions that would prevent a buyer from reselling a parcel?/
A – Currently, there are no restrictions on parcels sold to private parties either at auction or by direct sale for the established fair market value. Direct sales to public agencies may have resale restrictions.
Q - Will repairs to improvements continue until such time as the parcel is sold?
A - Yes. The Department's normal property management activities will continue until such time as a parcel is sold and the deed recorded.
Q - Will the City of Hayward and/or the County of Alameda continue to provide municipal services to the parcels as they now do?
A - Yes.
Q - Does the Department pay property taxes?
A - The Department pays 24% of the gross income received from rental of Department- owned parcels to the County in which the parcel is located. In the case of Hayward Bypass parcels, the payments are made to the County of Alameda, 50% or which is then distributed to the City of Hayward for parcels located within the city limits. The parcels will be returned to the County tax rolls upon sale or transfer. The new owner will be responsible for any subsequent assessments and property taxes which will be determined and distributed in the same manner as property taxes from all other privately owned property in the county.
Q - What does LATIP mean?
A - LATIP is the acronym for Local Alternative Transportation Improvement Program. Legislation enacted in 2004 provided a process that will allow the California Transportation Commission to rescind the Hayward Bypass freeway alignment adoption, approve a group of locally selected alternative transportation projects on the State Highway System and apply the net proceeds obtained from the sale of excess parcels acquired for the Hayward Bypass project to partially fund the construction of the locally-selected projects.
Q - Since the proceeds received from the sale of excess parcels will be used to partially fund the LATIP, will the Department attempt to obtain a high sales price?
A – The intended use of the proceeds from a sale does not influence the sales price. The sales price of a parcel is determined by either the highest bid at an auction or the appraised value for direct sales.
Q - Is there a lawsuit which involves the Hayward Bypass project?
A - Yes. The Department, the City of Hayward and a number of other defendants were named in a class action lawsuit filed in the United States District Court on June 16, 1971 by a large number of plaintiffs, some of whom are individuals and some of whom are organizations, (Case Reference: La Raza Unida, etc., et al v. United States Department of Transportation, et al, No. C-71-1166 RFP). In brief, the complaint alleges that the defendants failed to adhere to certain federal and state laws in the course of undertaking activities related to the development of the Hayward Bypass project.
Q - When will I be required to move from the property I occupy?
A - A date has not been set for disposal of any of the parcels acquired for the Hayward Bypass project. If, in the future, an occupant is required to vacate property they occupy, they will be given ample advance notice.
Q - What is the “Roberti Bill” and what are its provisions?
A – The term “Roberti Bill” is the commonly used reference to legislation dealing with the sale of surplus residential property in certain limited circumstances. Specific provisions of the statute may be viewed through the following CA Codes (Gov:54235-54238.7)