Over four decades ago, Caltrans initiated a project known as the Hayward Bypass — a proposed four-lane highway east of SR-238, from the I-580 interchange to Industrial Parkway. A number of properties were acquired, but the project never advanced, largely due to a lack of community support. State legislation allows that monies from the sale of these properties be used to address congestion on state highways in the area.

The purpose of the study was to develop a list of priority projects to be funded from the property sale proceeds. The list constitutes the Local Alternative Transportation Improvement Program, which includes 19 projects and is currently estimated to cost $570 million in 2007 dollars. The Planning Area Committee approved the list in June 2008. It was then submitted to the California Transportation Commission and received approval in May 2010.