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AFFORDABLE HOUSING


LEGISLATIVE COUNSEL OPINION

Thursday, December 5, 2002

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The Legislative Counsel opinion that follows was requested by Assemblymembers Carol Liu and Jackie Goldberg.

Background:

At the first Task Force meeting held on 9/17/2002, Caltrans insisted that the Task Force mission was based on Fair Market Value Rent. It was decided that Caltrans must provide written documentation as proof to their contention that Fair Market was mandated by State and Federal regulations This documentation would be presented by Caltrans at the next meeting. It was also decided that the elected representatives, Assembly persons, Carol Liu and Jackie Goldberg, would ask Legislative Counsel for an opinion. This opinion has been completed and a copy given to Jeff Morales, Director of the Department of Transportation and Doug Failing, District 7 Director. This is a proprietary and confidential document and Liu and Goldberg have given us permission to use it. The Legislative Counsel opinion will be presented at the next Task Force meeting.

We find this very significant news. We have believed for some time that Caltrans' policy change in 1981, from affordable housing to charging Fair Market Value rental rates was not a mandate based on government codes, as they always contend, but purely a policy change. We now know that is the opinion of Legislative Counsel as well.

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