AB 1038: Surplus residential property: City of Pasadena: City of South Pasadena.

(1)Existing law establishes priorities and procedures that any state agency disposing of surplus residential property is required to follow, including specified procedures for the sale of specified property in the City of Pasadena and the City of South Pasadena.

Under existing law, a state agency disposing of surplus residential property in the City of Pasadena is required to first offer the property to former owners and present occupants, as specified, then to specified present tenants at fair market value, and then, if not occupied by tenants, to the city, subject to terms and conditions that include the use of proceeds generated from the subsequent sale of unoccupied homes to finance the production or acquisition of affordable housing units, as prescribed. Existing law also requires, if the City of Pasadena does not resell a surplus residential property within 2 years of closure of the sale, that the property be used as affordable housing pursuant to prescribed provisions of existing law applicable to the City of South Pasadena. Existing law requires the City of Pasadena to commence construction or complete acquisition of all affordable units numbering at least 3 times the total number of unoccupied homes acquired by the city by December 31, 2026. After the foregoing order of offers, existing law requires the property in the City of Pasadena to be offered in accordance with specified generally applicable existing law. Existing law requires the Department of Transportation, before selling unimproved property within the State Route 710 corridor (SR710 corridor) in the City of Pasadena, to offer to sell the property to a housing-related entity for affordable housing purposes, pursuant to specified terms and conditions, but at the price paid by the department for original acquisition.

Similar provisions govern a state agency disposing of surplus residential property in the City of South Pasadena. Existing law specific to the City of South Pasadena requires that a property within the City of South Pasadena that has a historic home not occupied by tenants be offered to the city, as prescribed. Existing law specific to the City of South Pasadena on the order of offers then requires that surplus residential property be offered to the City of South Pasadena, as a housing-related entity, and then to another housing-related entity, subject to prescribed terms and conditions, including the propertys use as affordable housing.

This bill would revise the City of South Pasadena provisions to more closely parallel the City of Pasadena provisions. The bill, in the case of the City of South Pasadena, would add to the terms and conditions for the use of property for affordable housing by the City of South Pasadena the requirements that any parcel used for the development of specified affordable units be granted streamlined ministerial approval and that such parcels be exempt from any initiative or other measure that may preclude achieving maximum densities, including, but not limited to, any height restriction requirements. The bill would make related findings. The bill would require the City of South Pasadena to commence construction or complete acquisition of all affordable units numbering at least 3 times the total number of unoccupied homes acquired by the city by July 1, 2028.

This bill would require, for both cities, that if a surplus residential property purchased by a housing-related public entity is not resold as provided, that the property be used as affordable housing, subject to prescribed requirements. The bill, with regard to the SR710 corridor unimproved properties, would require the department to offer to sell the property to the City of Pasadena or the City of South Pasadena as a housing-related entity for affordable housing purposes, and then to another housing-related entity, pursuant to prescribed terms and conditions.

This bill, by imposing new requirements on the City of Pasadena and the City of South Pasadena, would impose a state-mandated local program.

(2)Existing law, known as the Administrative Procedure Act, governs the procedures for the adoption, amendment, or repeal of regulations by state agencies and for the review of those regulatory actions by the Office of Administrative Law. Under existing law, a regulation, amendment, or repeal adopted as an emergency regulatory action may only remain in effect for up to 180 days, unless the adopting agency complies with specified requirements relating to notice of regulatory action and public comment. Existing law required the Department of Transportation to file and adopt emergency regulations for specified provisions of law relating to surplus residential property along the SR 710 corridor and authorized those emergency regulations to remain in effect until specified dates, notwithstanding the 180-day limit for emergency regulations.

This bill would, notwithstanding the 180-day limit for emergency regulations and for any of those emergency regulations in effect on September 15, 2024, extend the effective date of those emergency regulations to January 31, 2026, or until permanent regulations are adopted. The bill would also, notwithstanding the 180-day limit for emergency regulations, provide that any necessary emergency regulations adopted by the department to implement the bill shall remain in effect until January 31, 2026, or until new emergency regulations are adopted.

(3)This bill would also make conforming changes.

(4)This bill would make findings regarding the public purpose served by the bill.

(5)This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Pasadena and the City of South Pasadena.

(6)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.

(7)This bill would declare that it is to take effect immediately as an urgency statute.