California Remote Subdivisions: Policy Implications for Consumers and Rural Communities

Abstract

Extensive subdivision development on remote rural lands during the early 1970's has generated considerable concern about possible long-term consequences to purchasers and local government finances. This study of California's Northeastern Plateau region utilizes socioeconomic characteristics, purchase motivations, and use-intentions of purchasers as the basis for examining possible local community and purchaser impacts. While purchaser characteristics indicate limited property use, expressed intentions to build or install residences prior to 1980 indicate a potentially dramatic impact on the region's population base. Although local government revenue impacts are impossible to assess conclusively, the results suggest local officials would be well advised to establish buildout policies for existing subdivisions prior to approving additional remote subdivisions. Expectations about property-use and investment potential appear to be unrealistic and are attributable to buyers' inexperience, inadequate information, and sales misrepresentations. While suggesting that the "fair, just and equitable" determination be reexamined for within-state sales, the results also suggest other states should not become overly optimistic about consumer protection provided by California's Subdivided Lands Act.A significant form of land-use alteration occurring during the 1960's and early 1970's in California and elsewhere was the conversion of vast acreages of nonprime lands into subdivided tracts which were sold t o urban residents for second home and recreational purposes, often as land investments. These urban-oriented activities exerted direct influences in remote rural areas and in California absorbed over 500,