Report 2011-120 Recommendation 9 Responses

Report 2011-120: California Department of Transportation: Its Poor Management of State Route 710 Extension Project Properties Costs the State Millions of Dollars Annually, Yet State Law Limits the Potential Income From Selling the Properties (Release Date: August 2012)

Recommendation #9 To: Transportation, Department of

To ensure that the affordable rent policy is enforceable and that only eligible tenants receive the benefit of the policy, Caltrans should adopt regulations in accordance with the Administrative Procedure Act (APA) if the director determines that it is appropriate to continue to offer affordable rent to certain tenants.

Annual Follow-Up Agency Response From October 2014

The Office of Administrative Law approved the Affordable Rent Program regulations on January 7, 2014. Tenants' household incomes are being annually reviewed using income certification forms as required in Caltrans' Right of Way Manual, Chapter 11.

  • Completion Date: January 2014

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

The regulations cited by Caltrans can be found at Title 21 of the California Code of Regulations, sections 2653 through 2658.


Annual Follow-Up Agency Response From October 2013

Please refer to our one-year response.

  • Estimated Completion Date: December 2013

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


1-Year Agency Response

As noted in the status update for Recommendation No. 1, Caltrans expanded the ARP statewide to other eligible tenants concurrent with the rental rate increases. Caltrans continues with the process of adopting permanent regulations for the ARP and anticipates that this will happen by the end of 2013. In the meantime, Caltrans received an extension for the emergency regulations from the Office of Administrative Law on June 24, 2013.

  • Estimated Completion Date: December 2013
  • Response Date: August 2013

California State Auditor's Assessment of 1-Year Status: Partially Implemented


6-Month Agency Response

Caltrans stated that it and the agency determined that continuing to offer the ARP and expanding it to other eligible tenants was the appropriate action to take concurrent with the rental rate increases effective March 1, 2013. The emergency regulations were approved by the OAL on December 24, 2012, and the permanent regulations are expected to be in place by August 31, 2013. Caltrans plans to notify the tenants who applied for the ARP, by the stated deadline, whether they qualify by February 15, 2013.

  • Response Date: February 2013

California State Auditor's Assessment of 6-Month Status: Partially Implemented


60-Day Agency Response

Caltrans stated that the director is reviewing the affordable rent program to determine if it is appropriate to continue offering it to certain tenants and/or to expand it to include other tenants. Caltrans also stated that it is expected that the director will make a decision by November 2012. (See 2013-406, p. 170)

  • Response Date: October 2012

California State Auditor's Assessment of 60-Day Status: Pending


All Recommendations in 2011-120

Agency responses received after June 2013 are posted verbatim.


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