PolicyBrief
H.R. 952
119th CongressMay 13th 2025
Reversionary Interest Conveyance Act
HOUSE PASSED

This Act authorizes the conveyance of the United States' reversionary interest in approximately 8.43 acres of BLM land in Sacramento, California, to current private owners upon request and payment of fair market value, while preserving existing railroad rights-of-way.

Doris Matsui
D

Doris Matsui

Representative

CA-7

LEGISLATION

Federal Government Sells Off Land Claim on 8 Acres in Sacramento: Current Owners Must Pay All Costs to Clear Title

The Reversionary Interest Conveyance Act is a highly specific piece of legislation designed to untangle a very old land ownership knot in Sacramento, California. Essentially, this bill allows the current private owners of about 8.43 acres of land to buy out the federal government’s lingering claim, known as a “reversionary interest,” which is the right the government has to take the land back at some point in the future.

Clearing Up Old Claims

Think of a reversionary interest like an old IOU on a property deed. For these specific parcels in Sacramento, the Bureau of Land Management (BLM) still holds this claim. Under this Act, if a current property owner (the “buyer”) asks the Secretary of the Interior to sell that claim, the Secretary must offer to sell it within two years. This is a big deal for those private owners because it finally clears their title, making it easier to sell, finance, or develop their property without the federal government’s potential future claim hanging over their heads.

The Price of Clarity: Fair Market Value Plus Fees

While the bill offers a clear path to ownership, it’s certainly not a handout. The federal government must sell this interest at its fair market value, determined by a professional appraisal following federal standards. This ensures taxpayers get a fair shake, even for a small, lingering claim. However, here’s the kicker for the current owners: they are required to cover every single cost associated with the transfer. This includes the costs for all surveys, appraisals, and administrative fees the government incurs during the process (SEC. 2). For the average homeowner or business, this means the cost of clearing the title goes well beyond the actual price of the land interest itself, absorbing all the government’s bureaucratic overhead.

Protecting the Railroad’s Right-of-Way

Because this land is near or involves old railroad tracks, the bill includes a specific section dedicated to the Southern Pacific Transportation Company. The Act explicitly states that this conveyance does not shrink the railroad’s existing right-of-way; they are guaranteed a minimum of 50 feet on either side of the center of their main track (SEC. 3). This is a smart move that prevents the new private owners from trying to squeeze the railroad’s access after they acquire the federal interest. Crucially, the bill also clarifies that it does not validate any ownership claims the railroad might have tried to establish through long-term use or squatting (adverse possession) without a formal deed. It simply preserves their current, established access, keeping things clean and preventing future legal battles over the tracks.