Existing law requires each state agency to make a review of all proprietary state lands over which it has jurisdiction, subject to certain exceptions, and to report to the Department of General Services on those lands in excess of its foreseeable needs. Existing law requires the jurisdiction over lands reported excess to be transferred to the department upon request. Existing law requires the Department of General Services to report to the Legislature annually on the lands declared excess. Existing law requires a city or county to have a general plan for development with a housing element and to submit the housing element to the Department of Housing and Community Development prior to adoption or amendment. Existing law requires that the housing element include an inventory of land suitable and available to residential development, as specified.

This bill would require the Department of Housing and Community Development to furnish the Department of General Services with a list of local lands suitable and available for residential development as identified by a local government as part of the housing element of its general plan. The bill would require the Department of General Services to create a database of that information and information regarding state lands determined or declared excess and to make this database available and searchable by the public by means of a link on its internet website. The bill would require for any housing element adopted on or after January 1, 2021, that the local planning agency submit an electronic copy of the inventory of land suitable and available for residential development to the Department of Housing and Community Development. By requiring local governments to electronically submit the inventory of land suitable and available for residential development to the department, the bill would impose a state-mandated local program.

This bill would authorize the Department of Housing and Community Development to review, adopt, amend, and repeal the standards, forms, or definitions to implement provisions regarding the inventory of land suitable and available for residential development. The bill would require a local government to prepare the inventory pursuant to those standards, forms, and definitions.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Under existing law, various agencies administer programs to preserve and expand safe and affordable housing opportunities and promote sound community growth throughout the state.

This bill would state the intent of the Legislature to enact legislation that would help encourage housing production throughout the state, including streamlining approval processes, identifying sufficient and adequate sites for housing construction, and penalizing local planning that restricts housing production.

 UNFINISHED BUSINESS  

Bill No: SB 6

Author: Beall (D) and McGuire (D), et al.

Amended: 9/6/19

Vote: 21

SENATE HOUSING COMMITTEE: 11-0, 4/2/19

AYES: Wiener, Morrell, Bates, Caballero, Durazo, McGuire, Moorlach, Roth, Skinner, Umberg, Wieckowski

SENATE GOVERNMENTAL ORG. COMMITTEE: 16-0, 4/9/19

AYES: Dodd, Wilk, Allen, Archuleta, Borgeas, Bradford, Chang, Galgiani, Glazer, Hill, Hueso, Jones, Nielsen, Portantino, Rubio, Wiener

SENATE APPROPRIATIONS COMMITTEE: 6-0, 5/16/19

AYES: Portantino, Bates, Bradford, Hill, Jones, Wieckowski

SENATE FLOOR: 38-0, 5/20/19

AYES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dodd, Durazo, Galgiani, Glazer, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Jones, Leyva, McGuire, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Stone, Umberg, Wieckowski, Wiener, Wilk

ASSEMBLY FLOOR: 79-0, 9/10/19 - See last page for vote

SUBJECT: Residential development: available land

SOURCE: Author

DIGEST:

This bill requires the Department of General Services (DGS), in coordination with the Department of Housing and Community Development (HCD), to create a public inventory of local sites suitable for residential development, along with state surplus lands.

Assembly Amendments

require local governments to ensure the accuracy of the inventory they submit to HCD, authorize DGS to rely on the accuracy of the information submitted, and address chaptering issues.

ANALYSIS:

Existing law:

1. Requires DGS, when disposing of surplus state real property, to first offer it to local agencies, then to non-profit affordable housing sponsors, prior to offering it for sale to private entities or individuals.
2. Requires DGS to maintain a list of surplus state real property on its website. DGS shall provide local agencies and, upon request, members of the public with electronic notification of updates to this list.
3. Requires any local agency, when disposing of surplus land, to first offer it for sale or lease for the purpose of developing low- and moderate-income housing. First priority must be given to affordable housing for lower income seniors or disabled persons or households, and other lower income households.
4. Authorizes the board of supervisors of any county to establish a central inventory of all surplus governmental property located in its jurisdiction.

This bill:

1. Requires HCD, on or before December 31st each year, to provide to DGS a list of lands suitable and available for residential development as identified by local governments in their housing elements.
2. Requires DGS to create a database of this information, as well as information on excess or surplus state lands, and to make this database available to and searchable by the public through its Web site.
3. Requires each local government, for housing elements adopted or amended on or after January 1, 2021, to submit an electronic copy of its housing element inventory to HCD.

Background

Under the state Surplus Land Act, if land is no longer needed or is not being held for exchange, a local agency must follow certain procedures prior to disposal of this “surplus” land. Prior to disposing of surplus land, local agencies must make a written offer to sell or lease it for the purpose of developing low- or moderate-income housing to “housing sponsors” upon written request, as well as any local public entity within the jurisdiction where the surplus land is located.

In January 2019, Governor Newsom issued an executive order directing DGS, HCD, and the California Housing Finance Agency to work together to identify state-owned properties that are suitable for housing development. On August 27, 2019, DGS and HCD released a publicly accessible interactive map showing approximately 100 excess state-owned property sites that can be used for sustainable, innovative, and cost-effective housing developments. By September 30, 2019, DGS, in consultation with HCD, will begin issuing Requests for Proposals to begin developing affordable housing at these sites. The intent is for developing entities to receive a long-term ground lease from the state and to build, own, and manage the housing they develop, subject to state oversight.

Comments

1. Purpose of the bill. The author states that hard-working individuals are struggling to find affordable housing and we must consider all options to eliminate obstacles to construction and increase our housing supply. Stakeholders identify land costs as a barrier to building affordable housing. Further, developers often do not know when sites are available to develop and which entities manage the land. By utilizing already reported information, this bill is a common sense solution that helps developers identify properties ready for acquisition and zoned for development.
2. Affordable housing gets right of first refusal on surplus lands. Existing law requires any local agency disposing of surplus land to first offer it for the purpose of developing low- and moderate-income housing; similar provisions apply to state surplus lands. Existing law also requires DGS to maintain a list of state surplus lands on its Web site, which it does under the Statewide Property Inventory. There is no similar inventory for local surplus lands, however.
3. Governor’s proposal. This bill is intended to align with the Governor’s directive for DGS to create a more user-friendly inventory of state surplus lands.

Related/Prior Legislation

AB 1255 (R. Rivas, 2019) requires each city and county to report to HCD an inventory of its surplus lands located in urbanized areas or urban clusters, as specified. Requires HCD to provide this information to DGS the state Department of General Services (DGS) for inclusion in a digitized inventory of state surplus land sites. The bill is on the Assembly Floor.

AB 1486 (Ting, 2019) imposes additional requirements on the process that public agencies must use when disposing of surplus property. The bill is on the Senate Floor.

AB 2065 (Ting, 2018) would have expanded the requirements on disposition of surplus lands and expanded the entities to which these requirements apply. The bill was held on suspense in the Assembly Appropriations Committee.

AB 2135 (Ting, Chapter 677, Statutes of 2014) required surplus local government land sold under preference for affordable housing to provide at least 25% of the units for low-income households, and requires such land sold outside the preference system for residential use to provide at least 15% of the units for low-income households.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

According to the Assembly Appropriations Committee:

• HCD estimates it will incur costs of approximately $190,000 (GF) in the first year, and $174,000 (GF) ongoing to develop necessary forms, collect and review land inventory data from local governments, and send the data to DGS in a usable format.
• DGS estimates it would incur one-time costs of up to $611,000 (GF) to establish the database, and ongoing costs of $440,000 (GF) for three personnel years of additional staff to manage and maintain the database.
• Any mandated costs incurred by local governments related to the requirement to report specified land inventory information in an electronic format to HCD are not reimbursable by the state because local governments have authority to levy fees to cover the costs.

SUPPORT: (Verified 9/10/19)

American Planning Association, California Chapter
Beverly-Vermont Community Land Trust
California Apartment Association
California Association of Realtors
California Building Industry Association
California Community Land Trust Network
California Contract Cities Association
California Housing Consortium
California Renters Legal Advocacy and Education Fund
California YIMBY
Eden Housing
Fair Housing Council of Riverside County, Inc.
First Community Housing
Housing Land Trust of Sonoma County
Irvine Community Land Trust
North Bay Leadership Council
Northern California Carpenters Regional Council
Santa Clara County
Silicon Valley at Home
South Bay YIMBY
SPUR
TechEquity Collaborative

OPPOSITION: (Verified 9/10/19)

None received

ARGUMENTS IN SUPPORT: Proponents state that this bill will make it easier for developers to find sites for housing projects.

ASSEMBLY FLOOR: 79-0, 9/10/19

AYES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

Prepared by: Erin Riches / HOUSING / (916) 651-4124

9/10/19 22:01:19

**** END ****

SENATE THIRD READING

STR Bill Id:SB 6

Author:(Beall and McGuire)

As Amended Ver:September 6, 2019

Majority vote

SUMMARY:

Requires the Department of General Services (DGS) to create a public, searchable database of sites in local government's housing element inventory of land suitable for residential development and state surplus properties.

Major Provisions

1. Require the Department of Housing and Community Development (HCD), on or before December 31 of each year, to provide DGS the list of sites identified in a housing element that are suitable for residential development.
2. Require local governments to develop the inventory of sites suitable for residential development based on standards, forms, and definitions developed by HCD.
3. Give HCD authority to review, adopt, amend, or repeal standards, forms and definitions for the sites suitable for residential development and exempts the process from regulatory review by the Office of Administrative Law.
4. Require a local government to submit an inventory of sites suitable for residential development in electronic form to HCD after January 1, 2021

COMMENTS:

Surplus Lands Act: State law dictates how local and state agencies are required to treat surplus land. If land is no longer needed or is not being held for exchange, a local agency must follow certain procedures prior to disposal of this "surplus" land. The intent behind the disposal procedures is to promote the use of surplus land towards affordable housing, parks and recreation purposes, open-space purposes, and transit-oriented development. The disposal procedures provide a Right of First Refusal to entities agreeing to use the land for, amongst other things, affordable housing. Local agencies are not required to create an inventory of local surplus lands. State agencies are required to create an inventory of surplus sites each year. If a state surplus property is no longer needed, it must first be offered to a non-profit affordable housing sponsor. Governor's Executive Order: Surplus Land: Earlier this year, the Governor issued Executive Order N-06-19 directing DGS to create a digitized inventory of all state land in excess of state agencies foreseeable needs no later than April 30, 2019. DGS, HCD, and the California Housing Finance Agency (CalHFA) are directed to develop two new screening tools for prioritizing affordable housing development on excess state lands – where housing is most likely to be economically feasible and where underproduction is impacting housing affordably. This screening tool will be used to map areas in the state on excess surplus sites where housing development is feasible and will help address underproduction. State agencies are encouraged to exchange excess state land with local governments for affordable housing and preservation. DGS and HCD will issue requests to develop parcels that are suitable for affordable housing.

Housing element inventory of adequate sites: Every local government is required to prepare a housing element as part of its general plan. The housing element must include an inventory of sites already zoned for housing. If a community does not have enough sites within its existing inventory of residentially zoned land to accommodate its entire RHNA, then the community must adopt a program to rezone land within the first three years of the planning period. This bill would require cities and counties to submit an inventory of sites suitable for housing development to HCD in electronic form. HCD would submit the sites inventory to DGS to develop a searchable database of sites. DGS is required to create a searchable database of state surplus sites and sites in the inventory of sites.

According to the Author:

According to the author, "Hardworking individuals are struggling to find affordable housing. We must consider all options to eliminate obstacles for construction and increase our housing supply. Developers often do not know when sites are available to develop and which entities manage the land. By utilizing already reported information, SB 6 is a common sense solution that helps developers identify properties ready for acquisition and zoned for development."

Arguments in Support:

Supporters of this bill explain that having a centralized database will help encourage housing development.

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

According to the Assembly Appropriations Committee:

1. HCD estimates it will incur costs of approximately $190,000 (General Fund (GF)) in the first year, and $174,000 (GF) ongoing to develop necessary forms, collect and review land inventory data from local governments, and send the data to DGS in a usable format.
2. DGS estimates it would incur one-time costs of up to $611,000 (GF) to establish the database, and ongoing costs of $440,000 (GF) for three personnel years of additional staff to manage and maintain the database.
3. Any mandated costs incurred by local governments related to the requirement to report specified land inventory information in an electronic format to HCD are not reimbursable by the state because local governments have authority to levy fees to cover the costs.

VOTES:

SENATE FLOOR: 38-0-0

YES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dodd, Durazo, Galgiani, Glazer, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Jones, Leyva, McGuire, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Stone, Umberg, Wieckowski, Wiener, Wilk

ASM HOUSING AND COMMUNITY DEVELOPMENT: 8-0-0

YES: Chiu, Diep, Gabriel, Gloria, Kiley, Limón, Maienschein, Quirk-Silva

ASM ACCOUNTABILITY AND ADMINISTRATIVE REVIEW: 6-0-1

YES: Petrie-Norris, Burke, Lackey, Medina, Quirk-Silva, Smith

ABS, ABST OR NV: Patterson

ASM APPROPRIATIONS: 18-0-0

YES: Gonzalez, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Diep, Eggman, Fong, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas

UPDATED:

VERSION: September 6, 2019

CONSULTANT: Lisa Engel / H. & C.D. / (916) 319-2085 FN: 0002083

SENATE THIRD READING

STR Bill Id:SB 6

Author:(Beall and McGuire)

As Amended Ver:April 23, 2019

Majority vote

SUMMARY:

Requires the Department of General Services (DGS) to create a public, searchable database of sites in local government's housing element inventory of land suitable for residential development and state surplus properties.

Major Provisions

1. Require the Department of Housing and Community Development (HCD), on or before December 31 of each year, to provide DGS the list of sites identified in a housing element that are suitable for residential development.
2. Require local governments to develop the inventory of sites suitable for residential development based on standards, forms, and definitions developed by HCD.
3. Give HCD authority to review, adopt, amend, or repeal standards, forms and definitions for the sites suitable for residential development and exempts the process from regulatory review by the Office of Administrative Law.
4. Require a local government to submit an inventory of sites suitable for residential development in electronic form to HCD after January 1, 2021.

COMMENTS:

Surplus Lands Act: State law dictates how local and state agencies are required to treat surplus land. If land is no longer needed or is not being held for exchange, a local agency must follow certain procedures prior to disposal of this "surplus" land. The intent behind the disposal procedures is to promote the use of surplus land towards affordable housing, parks and recreation purposes, open-space purposes, and transit-oriented development. The disposal procedures provide a Right of First Refusal to entities agreeing to use the land for, amongst other things, affordable housing. Local agencies are not required to create an inventory of local surplus lands. State agencies are required to create an inventory of surplus sites each year. If a state surplus property is no longer needed, it must first be offered to a non-profit affordable housing sponsor. Governor's Executive Order: Surplus Land: Earlier this year, the Governor issued Executive Order N-06-19 directing DGS to create a digitized inventory of all state land in excess of state agencies foreseeable needs no later than April 30, 2019. DGS, HCD, and the California Housing Finance Agency (CalHFA) are directed to develop two new screening tools for prioritizing affordable housing development on excess state lands – where housing is most likely to be economically feasible and where underproduction is impacting housing affordably. This screening tool will be used to map areas in the state on excess surplus sites where housing development is feasible and will help address underproduction. State agencies are encouraged to exchange excess state land with local governments for affordable housing and preservation. DGS and HCD will issue requests to develop parcels that are suitable for affordable housing. Housing element inventory of adequate sites: Every local government is required to prepare a housing element as part of its general plan. The housing element must include an inventory of sites already zoned for housing. If a community does not have enough sites within its existing inventory of residentially zoned land to accommodate its entire RHNA, then the community must adopt a program to rezone land within the first three years of the planning period. This bill would require cities and counties to submit an inventory of sites suitable for housing development to HCD in electronic form. HCD would submit the sites inventory to DGS to develop a searchable database of sites. DGS is required to create a searchable database of state surplus sites and sites in the inventory of sites.

According to the Author:

According to the author, "Hardworking individuals are struggling to find affordable housing. We must consider all options to eliminate obstacles for construction and increase our housing supply. Developers often do not know when sites are available to develop and which entities manage the land. By utilizing already reported information, SB 6 is a common sense solution that helps developers identify properties ready for acquisition and zoned for development."

Arguments in Support:

Supporters of the bill explain that having a centralized database will help encourage housing development.

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

According to the Assembly Appropriations Committee:

1. HCD estimates it will incur costs of approximately $190,000 (General Fund (GF)) in the first year, and $174,000 (GF) ongoing to develop necessary forms, collect and review land inventory data from local governments, and send the data to DGS in a usable format.
2. DGS estimates it would incur one-time costs of up to $611,000 (GF) to establish the database, and ongoing costs of $440,000 (GF) for three personnel years of additional staff to manage and maintain the database.
3. Any mandated costs incurred by local governments related to the requirement to report specified land inventory information in an electronic format to HCD are not reimbursable by the state because local governments have authority to levy fees to cover the costs.

VOTES:

SENATE FLOOR: 38-0-0

YES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dodd, Durazo, Galgiani, Glazer, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Jones, Leyva, McGuire, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Stone, Umberg, Wieckowski, Wiener, Wilk

ASM HOUSING AND COMMUNITY DEVELOPMENT: 8-0-0

YES: Chiu, Diep, Gabriel, Gloria, Kiley, Limón, Maienschein, Quirk-Silva

ASM ACCOUNTABILITY AND ADMINISTRATIVE REVIEW: 6-0-1

YES: Petrie-Norris, Burke, Lackey, Medina, Quirk-Silva, Smith

ABS, ABST OR NV: Patterson

ASM APPROPRIATIONS: 18-0-0

YES: Gonzalez, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Diep, Eggman, Fong, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas

UPDATED:

VERSION: April 23, 2019

CONSULTANT: Lisa Engel / H. & C.D. / (916) 319-2085 FN: 0001597

Date of Hearing: August 14, 2019

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

SBPCA Bill Id:SB 6

Author:(Beall) – As Amended Ver:April 23, 2019

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill requires the Department of General Services (DGS) to create a public and searchable database of state excess properties and local lands available for residential development. Specifically, this bill:

1. Requires cities and counties to develop an inventory of sites suitable for residential development based on their housing elements of their general plans, and to provide this information to HCD.
2. Requires HCD, on or before December 31 of each year, to compile and provide DGS a list of sites for residential development based on the information from local governments.
3. Gives HCD authority to review, adopt, amend or repeal standards, forms and definitions for the sites suitable for residential development and exempts the process from regulatory review by the Office of Administrative Law.

FISCAL EFFECT:

1. HCD estimates it will incur costs of approximately $190,000 (GF) in the first year, and $174,000 (GF) ongoing to develop necessary forms, collect and review land inventory data from local governments, and send the data to DGS in a usable format.
2. DGS estimates it would incur one-time costs of up to $611,000 (GF) to establish the database, and ongoing costs of $440,000 (GF) for three personnel years of additional staff to manage and maintain the database.
3. Any mandated costs incurred by local governments related to the requirement to report specified land inventory information in an electronic format to HCD are not reimbursable by the state because local governments have authority to levy fees to cover the costs.

COMMENTS:

1. Purpose. This bill intends to help identify sites for housing development. According to the author:

Hardworking individuals are struggling to find affordable housing. We must consider all options to eliminate obstacles for construction and increase our housing supply. Developers often do not know when sites are available to develop and which entities manage the land. By utilizing already reported information, [this bill] is a common sense solution that helps developers identify properties ready for acquisition and zoned for development.

1. Background. Existing law requires cities and counties to prepare a general plan comprised of seven mandatory elements, including a housing element that identifies existing and projected housing needs. The housing element must include an inventory of land suitable for residential development, which is used to identify sites that can be developed for housing within the planning period sufficient to meet the regional housing needs for all income levels. If the city or county does not have enough sites within its existing inventory of residentially zoned land to accommodate its entire RHNA, it must adopt a program to rezone land within the first three years of the planning period.

Existing law requires any local agency disposing of surplus land to first offer it for sale or lease for the purpose of developing low- and moderate-income housing. Similarly, existing law requires state surplus property to first be offered to a local agency, and then to a nonprofit affordable housing sponsor, prior to offering the property for sale to private entities or individuals. Existing law also requires DGS to maintain a list of state surplus lands on its website, which it does under the Statewide Property Inventory. There is no similar statewide inventory of local surplus lands or sites that are available for residential development.

In January, Governor Newsom issued Executive Order N-06-19 in response to the state’s housing shortage. It requires DGS and HCD to identify and prioritize state-owned property that could be used for housing. An initial assessment completed in June identified 1,330 potential parcels, which are undergoing additional reviews.

This bill would require cities and counties to submit an inventory of sites suitable for housing development to HCD in electronic form. HCD would then submit the sites inventory to DGS to develop a searchable database of sites. According to the author, this bill is intended to be complementary to the executive order.

1. Related Legislation.

AB 1255 (Rivas), of this legislative session, requires local governments to include an inventory of surplus sites that are infill, "high-density" sites in the housing element and requires DGS to create a searchable database of surplus sites. This bill is pending hearing in Senate Appropriations Committee.

AB 1486 (Ting), of this legislative session, requires each local agency to make a central inventory of all surplus governmental property located in all urbanized areas within its jurisdiction to determine what land is in excess of its foreseeable needs for its governmental operations on an annual basis, and report this information to HCD.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: July 3, 2019

ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW

Cottie Petrie-Norris, Chair

SBPCA Bill Id:SB 6

Author:(Beall) – As Amended Ver:April 23, 2019

SENATE VOTE: 38-0

SUBJECT: Residential development: available land

SUMMARY: Requires the Department of General Services (DGS) to create a public and searchable database of locally-identified properties that are available for residential development as well as state surplus properties. Specifically, this bill:

1. Requires cities and counties to develop an inventory of sites suitable for residential development based on their housing elements of their general plans, and provide this information to the Department of Housing and Community Development (HCD).
2. Requires HCD, on or before December 31 of each year, to compile and provide DGS a list of sites for residential development based on the information from local governments.
3. Gives HCD authority to review, adopt, amend, or repeal standards, forms and definitions for the sites suitable for residential development and exempts the process from regulatory review by the Office of Administrative Law.

EXISTING LAW:

1. Requires a city or county to have a general plan for development with a housing element and to submit the housing element to HCD.
   
2. Requires the housing element to include an inventory of land suitable and available for residential development, as specified.
3. Requires each state agency to review its properties annually and report to DGS its excess properties.
4. Requires DGS, when disposing of a state surplus property, to first offer it to local agencies and then non-profit affordable housing groups before selling it to private parties.

FISCAL EFFECT: According to the Senate Appropriations Committee:

1. HCD estimates it will incur costs of approximately $190,000 in the first year, and $174,000 ongoing to develop necessary forms, collect and review land inventory data from local governments, and send the data to DGS in a usable format. (General Fund)
2. DGS estimates it would incur one-time costs of up to $611,000 to establish the database, and ongoing costs of $969,000 for 6.5 PY of additional staff to manage and maintain the database. Staff estimates these ongoing costs may be overstated.
3. Any mandated costs incurred by local governments related to the requirement to report specified land inventory information in an electronic format to HCD are not reimbursable by the state because local governments have authority to levy fees to cover the costs.

COMMENTS: This bill requires DGS to create a database with properties identified by local governments as available for residential development along with state surplus properties. This database must be searchable and available through a link on DGS’ website.

Local government are required to prepare a housing element as part of their general plans. The housing element must already include land suitable and available for residential development. According to HCD, this includes vacant sites zoned for residential development; vacant sites not zoned for residential development, but that allow residential development; underutilized sites zoned for residential development that could be developed at higher densities; and sites not zoned for residential development that can be redeveloped or rezoned for residential use through local program actions.

According to the author, the intent of this bill is to help identify sites for residential development. “Hard working individuals are struggling to find affordable housing. We must consider all options to eliminate obstacles for construction and increase our housing supply. Developers often do not know when sites are available to develop and which entities manage the land. By utilizing already reported information, SB 6 is a common sense solution that helps developers identify properties ready for acquisition and zoned for development,” the author states.

This bill requires local governments to prepare and provide inventories of land suitable and available for residential development to HCD based on the standards, forms, and definitions developed at the discretion of HCD. For any housing element or amendment adopted after January 1, 2021, the local governments must submit its inventory electronically to HCD.

By the end of each calendar year, HCD must provide the inventories from local governments to DGS to be used in its database.

In January, Governor Newsom issued Executive Order N-06-19 in response to the state’s housing shortage. It required DGS and HCD to identify and prioritize state-owned property that could be used for housing. An initial assessment completed in June identified 1,330 potential parcels, which are undergoing additional reviews.

According to the author, this bill is meant to be complementary to the executive order.

Supporters of the bill explain that having a centralized database will help encourage housing development. There is no opposition on file.

DOUBLE REFERRAL: This measure was previously heard in the Assembly Housing and Community Development Committee on June 19, 2019, with a vote of 8-0.

REGISTERED SUPPORT / OPPOSITION:

Support

Association of Bay Area Governments
California Apartment Association
California Association of Realtors
California Building Industry Association
California Housing Consortium
California YIMBY
County of Santa Clara
Grounded Solutions Network
Habitat for Humanity California
Metropolitan Transportation Commission
Non-Profit Housing Association of Northern California
SPUR
TechEquity Collaborative
Working Partnerships USA

Opposition

None on file

Analysis Prepared by: Scott Herbstman / A. & A.R. / (916) 319-3600

Date of Hearing: June 19, 2019

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

David Chiu, Chair

SBPCA Bill Id:SB 6

Author:(Beall) – As Amended Ver:April 23, 2019

SENATE VOTE: 38-0

SUBJECT: Residential development: available land

SUMMARY: Requires the Department of General Services (DGS) to create a public, searchable database of sites in local governments housing element inventory of land suitable for residential development and state surplus properties. Specifically, this bill:

1. Requires the Department of Housing and Community Development (HCD), on or before December 31 of each year, to provide DGS the list of sites identified in a housing element that are suitable for residential development.
2. Requires local governments to develop the inventory of sites suitable for residential development based on standards, forms, and definitions developed by HCD.
3. Give HCD authority to review, adopt, amend, or repeal standards, forms and definitions for the sites suitable for residential development and exempts the process from regulatory review by the Office of Administrative Law.
4. Requires a local government to submit an inventory of sites suitable for residential development in electronic form to HCD after January 1, 2021.

EXISTING LAW:

1. Allows a county to establish a central inventory of surplus property.
2. Defines “surplus land” as land owned by any local agency that is determined to be no longer necessary for the agency’s use, except property being held by the agency for the purpose of exchange or property meeting other exemptions.
3. Requires that a local agency must provide a written offer to sell or lease surplus land for the purpose of developing low- or moderate-income housing to "housing sponsors" upon written request, as well as any local public entity within the jurisdiction where the surplus land is located.
4. Provides that a local agency wishing to dispose of surplus land must also provide a written offer to additional entities, depending on the type of proposed usage, for park and recreational purposes, school facilities construction or use by a school district for open space purposes, enterprise purposes, and infill opportunity zones or transit village plans.

FISCAL EFFECT: Unknown.

COMMENTS:

Purpose of this bill: According to the author, “Hardworking individuals are struggling to find affordable housing. We must consider all options to eliminate obstacles for construction and increase our housing supply. Developers often do not know when sites are available to develop and which entities manage the land. By utilizing already reported information, SB 6 is a common sense solution that helps developers identify properties ready for acquisition and zoned for development.”

Surplus Lands Act: State law dictates how local and state agencies are required to treat surplus land. If land is no longer needed or is not being held for exchange, a local agency must follow certain procedures prior to disposal of this "surplus" land. The intent behind the disposal procedures is to promote the use of surplus land towards affordable housing, parks and recreation purposes, open-space purposes, and transit-oriented development. The disposal procedures provide a Right of First Refusal to entities agreeing to use the land for, amongst other things, affordable housing. Local agencies are not required to create an inventory of local surplus lands. State agencies are required to create an inventory of surplus sites each year. If a state surplus property is no longer needed, it must first be offered to a non-profit affordable housing sponsor.

Governor’s Executive Order: Surplus Land: Earlier this year, the Governor issued Executive Order N-06-19 directing DGS to create a digitized inventory of all state land in excess of state agencies foreseeable needs no later than April 30, 2019. DGS, HCD, and the California Housing Finance Agency (CalHFA) are directed to develop two new screening tools for prioritizing affordable housing development on excess state lands – where housing is most likely to be economically feasible and where underproduction is impacting housing affordably. This screening tool will be used to map areas in the state on excess surplus sites where housing development is feasible and will help address underproduction. State agencies are encouraged to exchange excess state land with local governments for affordable housing and preservation. DGS and HCD will issue requests to develop parcels that are suitable for affordable housing.

Housing element inventory of adequate sites: Every local government is required to prepare a housing element as part of its general plan. The housing element must include an inventory of sites already zoned for housing. If a community does not have enough sites within its existing inventory of residentially zoned land to accommodate its entire RHNA, then the community must adopt a program to rezone land within the first three years of the planning period.

This bill would require cities and counties to submit an inventory of sites suitable for housing development to HCD in electronic form. HCD would submit the sites inventory to DGS to develop a searchable database of sites. DGS is required to create a searchable database of state surplus sites and sites in the inventory of sites.

Related legislation:

AB 1255 (Rivas) would require local governments to include an inventory of surplus sites that are infill, "high-density" sites in the housing element and requires Department of General Services (DGS) to create a searchable database of surplus sites. This bill is pending hearing in Senate Housing Committee.

AB 1486 (Ting) would require each local agency to make a central inventory of all surplus governmental property located in all urbanized areas within the jurisdiction of the local agency to determine what land is in excess of its foreseeable needs for its governmental operations on an annual basis, and report this information to the Department of Housing and Community Development (HCD) starting April 1, 2021. Requires HCD to create and maintain a searchable and downloadable public inventory of all publicly owned or controlled lands and their present uses in the state on its internet website, which shall be updated on an annual basis. Requires the inventory to be available no later than September 30, 2021. This bill is pending hearing in Senate Housing Committee.

Double-referred: This bill was also referred to the Committee on Accountability & Administrative Review where it will be heard should it pass out of this committee

REGISTERED SUPPORT / OPPOSITION:

Support

American Planning Association, California Chapter
Association of Bay Area Governments

Beverly Vermont Community Land Trust
California Apartment Association
California Association of Realtors
California Building Industry Association
California Community Land Trust Network
California Contract Cities Association
California Housing Consortium
California Renters Legal Advocacy and Education Fund
California YIMBY
County of Santa Clara
Eden Housing
Fair Housing Council of Riverside County
First Community Housing
Grounded Solutions Network
Habitat for Humanity California
Housing Land Trust of Sonoma County
Irvine Community Land Trust

Metropolitan Transportation Commission
Non-Profit Housing Association of Northern California

North Bay Leadership Council
Northern California Carpenters Regional Council
Silicon Valley At Home
South Bay YIMBY
SPUR
TechEquity Collaborative

Opposition

None on file

Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085

 THIRD READING  

Bill No: SB 6

Author: Beall (D) and McGuire (D)

Amended: 4/23/19

Vote: 21

SENATE HOUSING COMMITTEE: 11-0, 4/2/19

AYES: Wiener, Morrell, Bates, Caballero, Durazo, McGuire, Moorlach, Roth, Skinner, Umberg, Wieckowski

SENATE GOVERNMENTAL ORG. COMMITTEE: 16-0, 4/9/19

AYES: Dodd, Wilk, Allen, Archuleta, Borgeas, Bradford, Chang, Galgiani, Glazer, Hill, Hueso, Jones, Nielsen, Portantino, Rubio, Wiener

SENATE APPROPRIATIONS COMMITTEE: 6-0, 5/16/19

AYES: Portantino, Bates, Bradford, Hill, Jones, Wieckowski

SUBJECT: Residential development: available land

SOURCE: Author

DIGEST:

This bill requires the Department of General Services (DGS), in coordination with the Department of Housing and Community Development (HCD), to create a database of state and local surplus lands available for residential development.

ANALYSIS:

Existing law:

1. Requires DGS, when disposing of surplus state real property, to first offer it to local agencies, then to non-profit affordable housing sponsors, prior to offering it for sale to private entities or individuals.
2. Requires DGS to maintain a list of surplus state real property on its website. DGS shall provide local agencies and, upon request, members of the public with electronic notification of updates to this list.
3. Requires any local agency, when disposing of surplus land, to first offer it for sale or lease for the purpose of developing low- and moderate-income housing. First priority must be given to affordable housing for lower income seniors or disabled persons or households, and other lower income households.
4. Authorizes the board of supervisors of any county to establish a central inventory of all surplus governmental property located in its jurisdiction.

This bill:

1. Requires HCD, on or before December 31st each year, to provide to DGS a list of lands suitable and available for residential development as identified by local governments in their housing elements.
2. Requires DGS to create a database of this information, as well as information on excess or surplus state lands, and to make this database available to and searchable by the public through its website.
3. Requires each local government to prepare its housing element inventory of sites using standards, forms, and definitions adopted by HCD. For housing elements adopted or amended on or after January 1, 2021, requires local governments to submit the inventory to HCD in electronic form.

Background

The Governor’s Proposed Budget notes that the state has identified many excess state properties that are suitable for housing development. The Governor issued an executive order in January (#N-06-19) that, among other things:

• 1. Directs DGS to create a digitized inventory of all state-owned surplus land parcels by April 30, 2019.
  2. Directs DGS, HCD, and the California Housing Finance Agency to develop screening tools for prioritizing affordable housing development on these parcels by March 29, 2019.
  3. Directs DGS to create a comprehensive map of excess state parcels where development of affordable housing is feasible and will help address regional underproduction.
  4. Directs state agencies, where appropriate, to consider exchanging excess state land with local governments for purposes of affordable housing development and preservation.
  5. Directs DGS, in consultation with HCD, to begin issuing requests for affordable housing proposals on individual parcels by September 30, 2019.

On April 11, 2019, the Governor announced that the Administration has completed an initial review of state-owned property. HCD and DGS have developed a screening tool to further evaluate these properties, and will work with other state agencies to determine the viability of specific parcels for affordable housing development. The Administration will partner with local cities to release at least three Requests for Proposals (RFPs) for new housing construction within a year, with the first parcel identified and an RFP issued by September 30, 2019. The Administration has partnered with the mayors of Chico, Fresno, Oakland, Sacramento, San Diego, and San Francisco to work on expedited development of housing on state-owned properties in those areas.

Comments

1. Purpose. The author states that hard-working individuals are struggling to find affordable housing and we must consider all options to eliminate obstacles to construction and increase our housing supply. Stakeholders identify land costs as a barrier to building affordable housing. Further, developers often do not know when sites are available to develop and which entities manage the land. By utilizing already reported information, this bill is a common sense solution that helps developers identify properties ready for acquisition and zoned for development.
2. Affordable housing gets right of first refusal on surplus lands. Existing law requires any local agency disposing of surplus land to first offer it for the purpose of developing low- and moderate-income housing; similar provisions apply to state surplus lands. Existing law also requires DGS to maintain a list of state surplus lands on its website, which it does under the Statewide Property Inventory. There is no similar inventory for local surplus lands, however.
3. Governor’s proposal. This bill is intended to align with the Governor’s directive for DGS to create a more user-friendly inventory of state surplus lands. This bill further requires DGS to work with HCD to incorporate local surplus land data into the inventory.

Related/Prior Legislation

AB 891 (Burke, 2019) requires cities and counties to establish a safe parking program to provide safe parking locations and options for individuals and families living in their vehicles, and encourages cities and counties to review the DGS and Caltrans websites for the availability of excess land that could be used for such a program. The bill passed out of the Assembly Appropriations Committee.

AB 1255 (R. Rivas, 2019) requires DGS to create a public and searchable database of all surplus land, infill sites, and high-density sites as reported to DGS by cities and counties. The bill passed out of the Assembly Appropriations Committee.

AB 1486 (Ting, 2019) expands requirements on disposition of surplus lands and expands the entities to which these requirements apply. The bill passed out of the Assembly Appropriations Committee.

AB 2065 (Ting, 2018) would have expanded the requirements on disposition of surplus lands and expanded the entities to which these requirements apply. The bill was held on suspense in the Assembly Appropriations Committee.

AB 2135 (Ting, Chapter 677, Statutes of 2014) required surplus local government land sold under preference for affordable housing to provide at least 25% of the units for low-income households, and requires such land sold outside the preference system for residential use to provide at least 15% of the units for low-income households.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

According to the Senate Appropriations Committee:

• Unknown, potentially significant costs (General Fund), likely in the hundreds of thousands of dollars, to DGS for workload associated with the new responsibilities in the bill including drafting sales agreements that meet affordable housing requirements, evaluating affordability levels, enforcement and oversight of affordable housing provisions, and an increased number of negotiations and notifications. These costs will vary depending on the number of surplus properties available for disposal at any given time.
• Unknown, potentially significant impact on state surplus property revenues. DGS notes this bill deletes provisions of existing law that specify when DGS is required to obtain fair market value for a surplus property. This could increase pressure to sell a surplus property at less than fair market value – even for uses that aren’t given priority in the bill – and could result in reduced surplus property revenues.
• DGS further notes the bill deletes the existing law requirement to first offer surplus property to local agencies and instead gives highest priority to affordable housing use. To the extent the bill reduces such sales to local agencies at fair market value, it could reduce surplus property revenues.

SUPPORT: (Verified 5/16/19)

American Planning Association, California Chapter
Beverly-Vermont Community Land Trust
California Apartment Association
California Association Of Realtors
California Building Industry Association
California Community Land Trust Network
California Contract Cities Association
California Housing Consortium
California Renters Legal Advocacy And Education Fund
California YIMBY
Eden Housing
Fair Housing Council Of Riverside County, Inc.
First Community Housing
Housing Land Trust Of Sonoma County
Irvine Community Land Trust
North Bay Leadership Council
Northern California Carpenters Regional Council
Santa Clara County
Silicon Valley At Home
South Bay YIMBY
SPUR
TechEquity Collaborative

OPPOSITION: (Verified 5/16/19)

None received

ARGUMENTS IN SUPPORT: Proponents state that this bill will make it easier for developers to find sites for housing projects.

Prepared by: Erin Riches / HOUSING / (916) 651-4124

5/18/19 12:46:57

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SB 6 (Beall) - Residential development: available land

Bill Summary:

SB 6 would require the Department of General Services (DGS) to create a database of state excess properties and local lands available for residential development, as specified. The bill would require Department of Housing and Community Development (HCD) to annually provide DGS with information on local properties suitable for development, as identified by a local government in its housing element.

Fiscal Impact:

• HCD estimates it will incur costs of approximately $190,000 in the first year, and $174,000 ongoing to develop necessary forms, collect and review land inventory data from local governments, and send the data to DGS in a usable format. (General Fund)
  
• DGS estimates it would incur one-time costs of up to $611,000 to establish the database, and ongoing costs of $969,000 for 6.5 PY of additional staff to manage and maintain the database. Staff estimates these ongoing costs may be overstated. See Staff Comments.
  
• Any mandated costs incurred by local governments related to the requirement to report specified land inventory information in an electronic format to HCD are not reimbursable by the state because local governments have authority to levy fees to cover the costs.

Background:

Existing law requires cities and counties to prepare a general plan comprised of seven mandatory elements, including a housing element that includes an identification of existing and projected housing needs. The housing element must include an inventory of land suitable for residential development, which is used to identify sites that can be developed for housing within the planning period that is sufficient to meet the regional housing needs for all income levels. If the city or county does not have enough sites within its existing inventory of residentially zoned land to accommodate its entire RHNA, it must adopt a program to rezone land within the first three years of the planning period, as specified. Existing law authorizes HCD to adopt and revise guidelines for the preparation of a housing element. Housing elements must be updated every eight years in urban areas, and every five years in more rural areas.

Existing law requires any local agency disposing of surplus land to first offer it for sale or lease for the purpose of developing low- and moderate-income housing. Similarly, existing law requires state surplus property to first be offered to a local agency, and then to a nonprofit affordable housing sponsor, prior to offering the property for sale to private entities or individuals. Existing law also requires DGS to maintain a list of state surplus lands on its website, which it does under the Statewide Property Inventory. There is no similar statewide inventory of local surplus lands or sites that are available for residential development.

Proposed Law:

SB 6 would require HCD, by December 31 each year, to provide DGS with a list of lands suitable and available for development that were identified by local governments in their housing elements. For any housing element adopted on or after January 1, 2021, a local agency must submit an electronic copy of its inventory of land suitable for residential development to HCD, as specified.

The bill requires DGS to create a database of the specified local inventory of lands and information on state excess properties, and make the database available and searchable by the public through its website.

Related Legislation:

AB 1255 (R.Rivas), which is pending on the Assembly Appropriations Committee’s Suspense File, would require cities and counties to include an inventory of specified surplus infill, high-density sites in their housing elements, and to report that inventory to DGS annually. DGS must create a public and searchable database of all those sites reported to them by cities and counties.

Staff Comments:

The Governor’s proposed budget notes that the state has identified many excess state properties that are suitable for housing development. On January 15, 2019, the Governor issued Executive Order N-06-19 which, among other things, does the following:

1. Directs DGS to create a digitized inventory of all state-owned surplus lands parcels by April 30, 2019.
2. Directs DGS, HCD, and the California Housing Finance Agency to develop screening tools for prioritizing affordable housing development on these parcels by March 29, 2019.
3. Directs DGS to create a comprehensive map of excess state parcels where development of affordable housing is feasible and will help address regional underproduction.
4. Directs state agencies, where appropriate, to consider exchanging excess state land with local governments for purposes of affordable housing development and preservation.
5. Directs DGS, in consultation with HCD, to begin issuing requests for affordable housing proposals on individual parcels by September 30, 2019.

It is the author’s intent that this bill will align with the Governor’s directive for DGS to create a more user-friendly inventory of state surplus lands. This bill further requires DGS to work with HCD to incorporate local surplus land data into the inventory.

DGS estimates it would need 6.5 PY of new staff at a costs of $969,000 annually to maintain the data and annually update the database. This estimate is loosely based upon the workload currently dedicated to maintaining the Statewide Property Inventory, which is comprised of data reported by 44 state departments on nearly 3,000 state-owned properties and 2,700 state leases. SB 6 would require cities and counties to report land inventory information in a standardized electronic format to HCD, which would subsequently provide the list of lands to DGS for inclusion in the statewide database. Staff notes that cities and counties generally update their housing element every eight years, so HCD would provide data on an average of 67 local entities to DGS annually in a standardized electronic format.

DGS assumes there would be significant ongoing workload associated with maintaining data from a large number of local entities, and working directly with cities and counties on corrections to the data. Staff notes, however, that any direct coordination with cities and counties regarding the inventory data would likely occur between HCD and those entities prior to the transfer of information to DGS. It is unclear whether the addition of 6.5 PY of new staff would be necessary to compile and post the data provided to them annually. Should the bill be enacted, DGS’s resource needs would be evaluated in the budget process.

-- END --

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2019 - 2020 Regular

Bill No: SB 6 Hearing Date: 4/9/2019

SUBJECT: Residential development: available land

DIGEST: This bill requires the Department of Housing and Community Development (HCD) to provide the Department of General Services (DGS) with a list of local lands suitable and available for residential development, and requires DGS to create a public and searchable database of that information as well as information regarding state surplus properties, as specified.

ANALYSIS:

Existing law:

1. Requires each state agency to make a review of all proprietary state lands over which it has jurisdiction and to report to DGS on those lands in excess of its foreseeable needs.
2. Requires the jurisdiction over lands reported surplus to be transferred to DGS upon request, and requires DGS to report to the Legislature annually on the lands declared surplus.
3. Requires DGS to maintain a list of surplus on its Internet Web site, and requires DGS to provide local agencies and, upon request, members of the public with electronic notification of updates to this list.
4. Requires DGS, when disposing of surplus state real property, to first offer it to local agencies, then to non-profit affordable housing sponsors, prior to offering it for sale to private entities or individuals.
5. Requires a city or county to have a general plan for development with a housing element and to submit the housing element to HCD prior to adopting or amendment, and requires the housing element to include an inventory of land suitable and available to residential development, as specified.

This bill:

1. Requires HCD, on or before December 31 of each year, to provide DGS with a list of lands suitable and available for residential development as identified by local governments in their housing element, as specified.
2. Requires DGS to create a database of this information as well as information regarding the state surplus properties, and to make the database available and searchable by the public on its Internet Web site.

Background

Purpose of the bill. According to the author’s office, “hard working individuals are struggling to find affordable housing. We must consider all options to eliminate obstacles for construction and increase our housing supply. Developers often do not know when sites are available to develop and which entities manage the land. By utilizing already reported information, SB 6 is a common sense solution that helps developers identify properties ready for acquisition and zoned for development.”

California’s housing affordability crisis. One of Governor Gavin Newsom’s first actions as Governor was Executive Order N-06-19 which stated that California is “experiencing an acute affordable housing crisis that stifles economic growth, contributes to the homelessness epidemic, consumes an ever-growing share of the paychecks of working families, and holds millions of households back from realizing the California dream.”

California is home to 21 of the 30 most expensive rental housing markets in the country, which has had a disproportionate impact on the middle class and the working poor. Housing units affordable to low-income earners, if available, are often in series states of disrepair. A person earning minimum wage must work three jobs on average to pay the rent for a two-bedroom unit. HCD estimates that approximately 2.7 million lower-income households are rent-burdened (meaning they spend at least 30 percent of their income on rent), 1.7 million of which are severely rent-burdened (spending at least 50 percent of their income on rent). Not a single county in the state has an adequate supply of affordable homes. According to a 2015 study by the California Housing Partnership Corporation, California has a shortfall of 1.5 million affordable homes and 13 of the 14 least affordable metropolitan areas in the country.

Affordable housing gets right of first refusal on surplus lands. Existing law requires any local agency disposing of surplus land to first offer it for sale or lease for the purpose of developing low- and moderate-income housing. Similarly, existing law requires state surplus property to first be offered to a local agency, and then to a nonprofit affordable housing sponsor, prior to offering the property for sale to private entities or individuals. Existing law also requires DGS to maintain a list of state surplus lands on its website, which it does under the Statewide Property Inventory. There is no similar inventory for local surplus lands, however.

Executive Order N-06-19. The Governor’s proposed budget notes that the state has identified many excess state properties that are suitable for housing development. On January 15, 2019, the Governor issued Executive Order N-06-19 which, among other things, does the following:

1. Directs DGS to create a digitized inventory of all state-owned surplus lands parcels by April 30, 2019.
2. Directs DGS, HCD, and the California Housing Finance Agency to develop screening tools for prioritizing affordable housing development on these parcels by March 29, 2019.
3. Directs DGS to create a comprehensive map of excess state parcels where development of affordable housing is feasible and will help address regional underproduction.
4. Directs state agencies, where appropriate, to consider exchanging excess state land with local governments for purposes of affordable housing development and preservation.
5. Directs DGS, in consultation with HCD, to begin issuing requests for affordable housing proposals on individual parcels by September 30, 2019.

It is the author’s intent that this bill will align with the Governor’s directive for DGS to create a more user-friendly inventory of state surplus lands. This bill further requires DGS to work with HCD to incorporate local surplus land data into the inventory.

This bill was previously heard in the Senate Committee on Housing which pointed out that moving forward, the author may wish to consider amendments to require localities to report their local surplus land data to HCD in a standard format. Additionally, the author may wish to explicitly require DGS to regularly update the database with both the data it receives each year from HCD and the state surplus land information.

Prior/Related Legislation

AB 891 (Burke, 2019) would require DGS and the Department of Transportation to identify surplus state properties that are suitable for safe parking programs that provide safe parking locations and options for individuals and families living in their vehicles. (Pending in the Assembly Local Government Committee)

AB 1255 (R. Rivas, 2019) would require DGS to create a public and searchable database of all surplus land, infill sites, and high-density sites as reported to DGS by cities and counties. (Pending in the Assembly Local Government Committee)

AB 1486 (Ting, 2019) would expand requirements on disposition of surplus lands and expands the entities to which these requirements apply. (Pending in the Assembly Local Government Committee)

SB 281 (Wiener, 2019) would require the property known as the Cow Palace to be transferred to a newly established Cow Palace Authority for the purpose of managing, developing, or disposing of the property. (Pending in the Senate Governmental Organization Committee)

SB 922 (Nguyen, 2018) among other things, would have authorized DGS to dispose of surplus state property located within two miles of a higher education campus by first offering the property to a local agency or a nonprofit organization for the development of affordable student housing. (Failed passage in the Senate Governmental Organization Committee)

AB 2135 (Ting, Chapter 677, Statutes of 2014) required surplus local government land sold under preference for affordable housing to provide at least 25 percent of the units for low-income households, and requires such land sold outside the preference system for residential use to provide at least 15 percent of the units for low-income households.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT:

American Planning Association, California Chapter

California Apartment Association

California Building Industry Association

California Contract Cities Association

California Housing Consortium

California YIMBY

Eden Housing

Irvine Community Land Trust

Northern California Carpenters Regional Council

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: The California Building Industry Association writes in support that SB 6 “will create a centralized database of state and locally owned surplus/vacant land and properties across the state. Having a centralized database can help the development process. As California continues to grapple with an unprecedented housing affordability crises, it is important to identify those legislative proposals that can help increase housing for Californians. Given the gravity of the current housing crises, the staggering shortage of homes available to Californians of diverse income levels, and the massive underproduction of homes needed to keep pace with demand, SB 6 will provide a useful tool.”

DUAL REFERRAL: Senate Housing Committee (11-0) & Senate Governmental Organization Committee

SENATE COMMITTEE ON HOUSING

Senator Scott Wiener, Chair

2019 - 2020 Regular

Bill No: SB 6 Hearing Date: 4/2/2019

SUBJECT: Residential development: available land

DIGEST: This bill requires the Department of General Services (DGS), in coordination with the Department of Housing and Community Development (HCD), to create a database of state and local surplus lands available for residential development.

ANALYSIS:

Existing law:

1. Requires DGS, when disposing of surplus state real property, to first offer it to local agencies, than to non-profit affordable housing sponsors, prior to offering it for sale to private entities or individuals.
2. Requires DGS to maintain a list of surplus state real property on its website. DGS shall provide local agencies and, upon request, members of the public with electronic notification of updates to this list.
3. Requires any local agency, when disposing of surplus land, to first offer it for sale or lease for the purpose of developing low- and moderate-income housing. First priority must be given to affordable housing for lower income seniors or disabled persons or households, and other lower income households.
4. Authorizes the board of supervisors of any county to establish a central inventory of all surplus governmental property located in its jurisdiction.

This bill:

1. Requires HCD, on or before December 31st each year, to provide to DGS a list of lands suitable and available for residential development as identified by local governments in their housing elements.
2. Requires DGS to create a database of this information, as well as information on excess or surplus state lands, and to make this database available to and searchable by the public through its website.

COMMENTS

1. Purpose. The author states that hard-working individuals are struggling to find affordable housing and we must consider all options to eliminate obstacles to construction and increase our housing supply. Stakeholders identify land costs as a barrier to building affordable housing. Further, developers often do not know when sites are available to develop and which entities manage the land. By utilizing already reported information, this bill is a common sense solution that helps developers identify properties ready for acquisition and zoned for development.
2. Affordable housing gets right of first refusal on surplus lands. Existing law requires any local agency disposing of surplus land to first offer it for the purpose of developing low- and moderate-income housing; similar provisions apply to state surplus lands. Existing law also requires DGS to maintain a list of state surplus lands on its website, which it does under the Statewide Property Inventory. There is no similar inventory for local surplus lands, however.
3. Governor’s Executive Order. The Governor’s Proposed Budget notes that the state has identified many excess state properties that are suitable for housing development. The Governor issued an executive order in January (#N-06-19) that, among other things:
   1. Directs DGS to create a digitized inventory of all state-owned surplus land parcels by April 30, 2019.
   2. Directs DGS, HCD, and the California Housing Finance Agency (CalHFA) to develop screening tools for prioritizing affordable housing development on these parcels by March 29, 2019.
   3. Directs DGS to create a comprehensive map of excess state parcels where development of affordable housing is feasible and will help address regional underproduction.
   4. Directs state agencies, where appropriate, to consider exchanging excess state land with local governments for purposes of affordable housing development and preservation.
   5. Directs DGS, in consultation with HCD, to begin issuing requests for affordable housing proposals on individual parcels by September 30, 2019.
4. Committee comments. This bill is intended to align with the Governor’s directive for DGS to create a more user-friendly inventory of state surplus lands. This bill further requires DGS to work with HCD to incorporate local surplus land data into the inventory. Moving forward, the author may wish to consider amendments to require localities to report their local surplus land data to HCD in a standard format, and to explicitly require DGS to regularly update the database with both the data it receives each year from HCD and the state surplus lands information.
5. Double referral. This bill has also been referred to the Governmental Organization Committee.

Related Legislation:

AB 891 (Burke, 2019) — requires DGS and Caltrans to identify surplus state properties that are suitable for a safe parking program to provide safe parking locations and options for individuals and families living in their vehicles. This bill will be heard in Assembly Local Government Committee on April 3^rd.

AB 1255 (R. Rivas, 2019) — requires DGS to create a public and searchable database of all surplus land, infill sites, and high-density sites as reported to DGS by cities and counties. This bill is in Assembly Housing Committee.

AB 1486 (Ting, 2019) — expands requirements on disposition of surplus lands and expands the entities to which these requirements apply. This bill is in Assembly Local Government Committee.

AB 2065 (Ting, 2018) — would have expanded the requirements on disposition of surplus lands and expanded the entities to which these requirements apply. This bill was held on suspense in the Assembly Appropriations Committee.

AB 2135 (Ting, Chapter 677, Statutes of 2014) — required surplus local government land sold under preference for affordable housing to provide at least 25% of the units for low-income households, and requires such land sold outside the preference system for residential use to provide at least 15% of the units for low-income households.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

POSITIONS: (Communicated to the committee before noon on Wednesday,

March 27, 2019.)

SUPPORT:

California Building Industry Association

California YIMBY

Eden Housing

OPPOSITION:

None received.

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