ACQUISITION OF REAL PROPERTY - 1314.1

(Renumbered: 11/2020)

(Renumbered from 1323.12)

The DGS has the general responsibility for approving the acquisition of real property, including exercising purchase options, for nearly all state agencies.

Appraisal of Real Property, Agencies with Real Estate Staff. The RPSS prepares appraisals of real property or specific property rights upon request. An appraisal review is an independent review of real estate appraisals that ensures the appraisals are prepared in conformance with accepted appraisal principles and techniques.

Acquisition of Real Property, Agencies without Real Estate Staff. As a full service real estate organization, RPSS can carry out all the necessary activities to acquire real property on behalf of state agencies. The RPSS can also provide advice and assistance to blend the efforts of agency staff and PSB staff when appropriate.

Acquisition of Real Property, Agencies with Real Estate Staff. Some state agencies have authority, staff resources, and expertise to carry out their own property acquisitions. In these cases, the RPSS provides procedures for agencies to use. (Note: The procedures do not apply to acquisitions by the Department of Transportation or to the Department of Water Resources.)

Role of the State Public Works Board. The State Public Works Board approves the selection and acquisition of real property on behalf of the state.

Relocation Assistance. Public agencies, including the State of California, are required to provide relocation assistance and benefits to persons and businesses displaced as result of a public acquisition of real property. The RPSS prepares relocation plans and entitlement reports and provides relocation assistance for state agencies upon request.

Gifts of Real Property. Acceptance of gifts of real property to the state is subject to the approval of the Director of the Department of Finance (DOF). Prior to DOF approval, DGS reviews certain elements of the proposed gift. The agency being gifted will furnish documentation to RPSS to facilitate the review.

Transfers of Jurisdictions Between State Agencies. The DGS’ approval is required for transfer of state-owned real property from one agency to another. Any compensation paid shall be at fair market value at the time of the transfer. Agencies are advised to obtain an appraisal from the RPSS or a certified appraiser to determine value. A transfer of property between two agencies financed from a common fund may be made with no compensation being paid, provided approval of the DOF has been obtained, and both agencies agree to the transfer.