What’s the Fate of Your Property If California High-Speed Rail Is Terminated?

Political observers in California were stunned when the Trump Administration sent a letter dated February 19, 2019 to the CEO of the California High-Speed Rail Authority terminating the federal funding agreement and demanding a refund of federal funds already given to the state for the project.

See a copy of the termination letter at the Federal Railroad Administration (FRA) website: U.S. Department of Transportation Announces Cancellation of Grant Funds to California High-Speed Rail Project. A press release states the following:

The U.S. Department of Transportation announced today that the Federal Railroad Administration (FRA) intends to cancel $929 million in Federal grant funds yet to be paid for the California High-Speed Rail project envisioned to connect the L.A. Basin to the San Francisco Bay Area.  In addition, the Department announced it is actively exploring every legal option to seek the return from California of $2.5 billion in Federal funds FRA previously granted for this now-defunct project.  FRA Administrator Ronald L. Batory notified the California HSR Authority (CHSRA) of this action in a letter today.

It’s time for San Joaquin Valley property owners to start thinking about the future of their property. Here is a relevant law that was introduced by former Senator Andy Vidak:

Senate Bill 940, signed into law in 2016, requires the California High-Speed Rail Authority to send notification by certified mail to the last known owner of property (at his or her last known address) if it plans to sell it. The letter must inform the last known owner that it will be offering the property for sale. The Authority must wait at least 30 days after mailing the notification before it sells the property. The language is found in California Public Utilities Code Section 185040.

This article shall not be construed as legal advice.