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TASK FORCE UPDATE
Monday, November 11, 2002
As reported earlier, the first Task Force meeting held on 9/17/2002, was adjourned without going through the agenda, as the tenant and elected rep participants were concerned about Caltrans insisting 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 at the next meeting. It was also decided that the elected representatives would ask Legislative Counsel for an opinion.
Assemblymembers Carol Liu and Jackie Goldberg requested that Legislative Counsel write an opinion on the matter. That 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. Liu and Goldberg think it is appropriate to let the tenants know that they will be presenting the Legislative Counsel opinion at the next Task Force meeting and want you to know that it concludes:
"Accordingly, it is our opinion that neither Section 104.6 of the Streets and Highways Code, Article XIX of the California Constitution, nor any other law requires the Department of Transportation to charge fair market rental rates for residential real property that it rents to the public when the real property was purchased for future highway use with revenues subject to Article XIX of the California Constitution."
The second Task Force meeting, tentatively set for this Tuesday, (tomorrow) November, 12th, has just been canceled by Caltrans, with no suggested dates to reschedule.
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.
We believe that Caltrans is regrouping and trying to decide what to do about this turn of events. Liu and Goldberg made it clear, in a recent meeting with Caltrans on our behalf, that Caltrans needed to bring documentation proving their contention to the next meeting. Therefore, we believe that is why the Task Force meeting was canceled, because they either don't have proof or are trying to find it.
We also believe that is why the recent "for rent" signs have appeared. They want to find out how many people are willing to pay the high Fair Market Value Rent rates, or they want to rent as many of the empty houses as they can before this issue hits the public or other decisions are made that may prevent them from renting the houses at Fair Market Value. Once again they are missing the point. We have never contended that they couldn't find people who would pay Fair Market Value. The issue was if they have the right to charge Fair Market Value. The houses were acquired for a freeway, not for a profit in rental rates for over 30 years. We also contend that the state is putting themselves in a position of potential lawsuits for misrepresentation if they rent these houses at fair market value under these circumstances.
The state of California is in an all time affordable housing crisis. The City of Pasadena is also in an affordable housing crisis and is in noncompliance with their affordable housing stock as well. It is unconscionable for Caltrans, a government agency, to be charging Fair Market Value on any of it's state wide properties, as a policy at any time but, especially at this particular time. The Department of Transportation is under the State Department of Business, Transportation and Housing Agency, along with the Department of Housing. Housing is fining cities in California for not complying with their affordable housing regulations. How can two departments under the same agency have such opposing missions? What kind of dirty little secret is this?
Stay tuned.................it has just begun!!!!!!!
Also, remember we are in a rent moratorium until the Task Force has presented their recommendations to Caltrans. As it remains to be seen when another Task Force will be called, the deadline for recommendations to be given to Caltrans, set for November 15, cannot possibly be met. This is being caused by Caltrans, as they set the meetings. So the date of January 1, 2003, to lift the moratorium, cannot possibly be met either. Caltrans should be leaving you alone during thus time. We know of tenants who are being threatened with water turn offs, etc. Let us know if you are having problems.
We believe this battle has now arisen to a higher level. Stay patient and strong. We might just win.................
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