AB 480: Surplus land.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2023-10-11
Current Status:
Passed
(2023-10-11: Chaptered by Secretary of State - Chapter 788, Statutes of 2023.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospective transferee, particularly that the local agency send a notice of availability to specified entities that have notified the Department of Housing and Community Development of their interest in surplus land, as specified. Under existing law, if the local agency receives a notice of interest, the local agency is required to engage in good faith negotiations with the entity desiring to purchase or lease the surplus land.
This bill would define the term dispose to mean the sale of the surplus property or a lease of any surplus property entered into on or after January 1, 2024, for a term longer than 15 years, including renewal options, as specified. The bill would provide that dispose does not include entering a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease.
Existing law requires a local agency to take formal action in a regular public meeting to declare that land is surplus and is not necessary for the agencys use and to declare land as either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures.
This bill would exempt a local agency, in specified instances, from making a declaration at a public meeting for land that is exempt surplus land if the local agency identifies the land in a notice that is published and available for public comment at least 30 days before the exemption takes effect.
Existing law defines exempt surplus land, for which a local agency is not required to follow the requirements for disposal of surplus land, except as provided, as, among other things, surplus land that is put out to open, competitive bid by a local agency for specified housing and mixed-use development purposes, and surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, as specified.
This bill would recast the definition of exempt surplus land with respect to surplus land for specified housing purposes, to remove the requirement that it be put out to open, competitive bid. The bill would also include within the definition of exempt surplus land surplus land totaling 10 or more acres, consisting of a single parcel, or of 2 or more adjacent or nonadjacent parcels totaling 10 or more acres, combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute, as specified. The bill would require that land be subject to an open, competitive bid process, as specified, and that the development satisfy certain requirements. The bill would make a violation of these provisions subject to specified penalties. The bill would also require that a local agency that disposes of land pursuant to those provisions do so through a disposition and development agreement containing specified provisions. The bill would also require, with respect to surplus land that is subject to valid legal restrictions, that the legal restrictions described above be supported by documentary evidence and written findings, as specified. The bill would require that certain surplus land be transferred with a covenant or restriction recorded against the land at the time of sale, as specified. By narrowing the circumstances under which certain surplus land may be defined as exempt surplus land and, therefore, expanding the duties of local officials, the bill would impose a state-mandated local program.
Existing law defines exempt surplus land to include surplus land that a local agency is exchanging for another property necessary for the agencys use.
This bill would include easements necessary for the agencys use for purposes of that provision.
Existing law specifies that, for purposes of these provisions, the term exempt surplus land, includes, among other things, surplus land that is put out to open, competitive bid by a local agency, as specified, for purposes of a mixed-use development that is more than one acre in area, that includes not less than 300 housing units, and that restricts at least 25% of the residential units to lower income households with an affordable sales price or an affordable rent for a minimum of 55 years for rental housing and 45 years for ownership housing.
This bill would modify these provisions to require that the mixed-use development include not less than 300 residential units, would modify the affordability restriction to 50 years for rental or ownership housing located on tribal trust lands, and would require the restrictions to be recorded, as specified.
Existing law also defines exempt surplus land as, among other things, land that was transferred by the state to a local agency, as specified, that includes residential units that are restricted to persons and families of low or moderate income with an affordable sales price or rent, at least 80% of which shall be restricted to persons and families of lower income.
This bill would expand the definition of exempt surplus land to include land that is owned by a California public-use airport on which residential use is prohibited pursuant to specified federal law. The bill would expand in the definition of exempt surplus land to also include certain mixed-use developments that meet specified conditions, including that at least 25% of the residential units are restricted to lower income households and at least 50% of the square footage of the new construction is designated for residential use, and surplus land owned by a local agency whose primary mission or purpose is to supply the public with a transportation system that is developed for commercial, or industrial uses or activities, for the sole purpose of investment if certain conditions are met. The bill would also modify exemptions related to land transferred after activation of a parking authority and land that is a former military base to include an affordability restriction of 50 years for rental or ownership housing located on tribal trust lands.
Existing law requires any local agency disposing of surplus land to send a written notice of availability of the property to specified entities. Existing law requires the Department of Housing and Community Development to maintain on its internet website a list of all notices of availability throughout the state.
This bill would require the department to also maintain on its internet website a list of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing. This bill would also specify that certain actions are not considered participating in negotiations for purposes of the above-described notice of availability requirement, including issuing a request for proposals or negotiating a lease for purposes of complying with specified provisions of law. The bill would make other nonsubstantive changes to provisions that describe the entities to which notices of availability for developing low- and moderate-income housing, for open-space purposes, and for school facilities construction are required to be sent.
Existing law requires an entity proposing to use the surplus land for developing low- and moderate-income housing to agree to make available not less than 25% of the total number of units developed on the parcels at affordable housing cost for a period of at least 55 years.
This bill would instead require the entity to require requirement to agree to make available not less than 25% of the total number of units developed on the parcels at affordable housing cost for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
Existing law specifies that after the disposing agency has received a notice of interest from the entity desiring to purchase or lease the land, if price or terms cannot be agreed upon after a good faith negotiation period, the land may be disposed of, as specified.
This bill would recast that provision to state that after the specified good faith negotiation, the local agency may dispose of the surplus land, as specified.
Existing law proclaims that nothing in these provisions relating to the disposition of surplus property shall preclude a local agency, housing authority, or redevelopment agency that purchases land from a disposing agency from reconveying the land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing.
This bill would modify that provision to remove reference to housing authorities and redevelopment agencies and make other nonsubstantive changes.
Existing law specifies that any public agency disposing of surplus land to a specified entity that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land.
This bill would modify those provisions to refer, instead, to a local agency disposing of surplus land.
Existing law authorizes a local agency to negotiate concurrently with all entities that provide notice of interest for the purpose of developing affordable housing that meets specified requirements.
This bill would modify that provision to reference low- and moderate-income housing that meets specified requirements. The bill would make other nonsubstantive changes to this provision.
Existing law makes a local agency that disposes of land in violation of these provisions after receiving notice from the Department of Housing and Community Development liable for a penalty of 30% of the final sale price of the surplus land sold for a first violation and 50% for any subsequent violation.
This bill would, instead, make a local agency that disposes of surplus land in violation of these provisions, except as specified, after receiving a notification from the Department of Housing and Community Development, as specified, that the local agency is in violation of these provisions liable for a penalty of 30% of the applicable disposition value, which the bill would define. This bill would prohibit the penalties for violating these provisions from applying to nonsubstantive violations that do not impact the availability or construction of housing affordable to lower income households or the ultimate disposition of the land, as specified. The bill would make nonsubstantive changes to, and correct an erroneous cross-reference in, those provisions.
Existing law provides that certain dispositions of real property by local agencies are subject to surplus land disposal procedures as they existed on December 31, 2019, if those dispositions are pursuant to specified legal agreements and the disposition is completed by December 31, 2022, or by December 31, 2024, if the property is located in a charter city with a population of over 2,000,000 persons and a local agency has an option agreement duly authorized by the governing body to purchase the property from a former redevelopment agency.
This bill would instead subject dispositions of real property by local agencies to surplus land disposal procedures as they existed on December 31, 2019, if those dispositions are pursuant to specified legal agreements and the dispositions are completed by December 31, 2027. The bill would authorize a local agency that terminated an exclusive negotiating agreement or legally binding agreement to dispose of property, as specified, to elect whether to ask the requisite party to consider reviving the terminated agreement, and would make the revived agreement subject to these provisions, as applicable.
This bill would specify that the law governing surplus land does not require a local agency to dispose of land that is determined to be surplus.
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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
This bill would make its operation contingent on the enactment of SB 747 of the 202324 Regular Session.
This bill would incorporate additional changes to Section 54221 of the Government Code proposed by SB 747 to be operative only if this bill and SB 747 are enacted and this bill is enacted last.
Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospective transferee, particularly that the local agency send a notice of availability to specified entities that have notified the Department of Housing and Community Development of their interest in surplus land, as specified. Under existing law, if the local agency receives a notice of interest, the local agency is required to engage in good faith negotiations with the entity desiring to purchase or lease the surplus land.
This bill would define the term dispose to mean the sale of the surplus property or a lease of any surplus property entered into on or after January 1, 2024, for a term longer than 15 years, including renewal options, as specified. The bill would provide that dispose does not include entering a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease.
Existing law requires a local agency to take formal action in a regular public meeting to declare that land is surplus and is not necessary for the agencys use and to declare land as either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures.
This bill would exempt a local agency, in specified instances, from making a declaration at a public meeting for land that is exempt surplus land if the local agency identifies the land in a notice that is published and available for public comment at least 30 days before the exemption takes effect.
Existing law defines exempt surplus land, for which a local agency is not required to follow the requirements for disposal of surplus land, except as provided, as, among other things, surplus land that is put out to open, competitive bid by a local agency for specified housing and mixed-use development purposes, and surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, as specified.
This bill would recast the definition of exempt surplus land with respect to surplus land for specified housing purposes, to remove the requirement that it be put out to open, competitive bid. The bill would also include within the definition of exempt surplus land surplus land totaling 10 or more acres, consisting of a single parcel, or of 2 or more adjacent or nonadjacent parcels totaling 10 or more acres, combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute, as specified. The bill would require that land be subject to an open, competitive bid process, as specified, and that the development satisfy certain requirements. The bill would make a violation of these provisions subject to specified penalties. The bill would also require that a local agency that disposes of land pursuant to those provisions do so through a disposition and development agreement containing specified provisions. The bill would also require, with respect to surplus land that is subject to valid legal restrictions, that the legal restrictions described above be supported by documentary evidence and written findings, as specified. The bill would require that certain surplus land be transferred with a covenant or restriction recorded against the land at the time of sale, as specified. By narrowing the circumstances under which certain surplus land may be defined as exempt surplus land and, therefore, expanding the duties of local officials, the bill would impose a state-mandated local program.
Existing law defines exempt surplus land to include surplus land that a local agency is exchanging for another property necessary for the agencys use.
This bill would include easements necessary for the agencys use for purposes of that provision.
Existing law specifies that, for purposes of these provisions, the term exempt surplus land, includes, among other things, surplus land that is put out to open, competitive bid by a local agency, as specified, for purposes of a mixed-use development that is more than one acre in area, that includes not less than 300 housing units, and that restricts at least 25% of the residential units to lower income households with an affordable sales price or an affordable rent for a minimum of 55 years for rental housing and 45 years for ownership housing.
This bill would modify these provisions to require that the mixed-use development include not less than 300 residential units, would modify the affordability restriction to 50 years for rental or ownership housing located on tribal trust lands, and would require the restrictions to be recorded, as specified.
Existing law also defines exempt surplus land as, among other things, land that was transferred by the state to a local agency, as specified, that includes residential units that are restricted to persons and families of low or moderate income with an affordable sales price or rent, at least 80% of which shall be restricted to persons and families of lower income.
This bill would expand the definition of exempt surplus land to include land that is owned by a California public-use airport on which residential use is prohibited pursuant to specified federal law. The bill would expand in the definition of exempt surplus land to also include certain mixed-use developments that meet specified conditions, including that at least 25% of the residential units are restricted to lower income households and at least 50% of the square footage of the new construction is designated for residential use, and surplus land owned by a local agency whose primary mission or purpose is to supply the public with a transportation system that is developed for commercial, or industrial uses or activities, for the sole purpose of investment if certain conditions are met. The bill would also modify exemptions related to land transferred after activation of a parking authority and land that is a former military base to include an affordability restriction of 50 years for rental or ownership housing located on tribal trust lands.
Existing law requires any local agency disposing of surplus land to send a written notice of availability of the property to specified entities. Existing law requires the Department of Housing and Community Development to maintain on its internet website a list of all notices of availability throughout the state.
This bill would require the department to also maintain on its internet website a list of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing. This bill would also specify that certain actions are not considered participating in negotiations for purposes of the above-described notice of availability requirement, including issuing a request for proposals or negotiating a lease for purposes of complying with specified provisions of law. The bill would make other nonsubstantive changes to provisions that describe the entities to which notices of availability for developing low- and moderate-income housing, for open-space purposes, and for school facilities construction are required to be sent.
Existing law requires an entity proposing to use the surplus land for developing low- and moderate-income housing to agree to make available not less than 25% of the total number of units developed on the parcels at affordable housing cost for a period of at least 55 years.
This bill would instead require the entity to require requirement to agree to make available not less than 25% of the total number of units developed on the parcels at affordable housing cost for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
Existing law specifies that after the disposing agency has received a notice of interest from the entity desiring to purchase or lease the land, if price or terms cannot be agreed upon after a good faith negotiation period, the land may be disposed of, as specified.
This bill would recast that provision to state that after the specified good faith negotiation, the local agency may dispose of the surplus land, as specified.
Existing law proclaims that nothing in these provisions relating to the disposition of surplus property shall preclude a local agency, housing authority, or redevelopment agency that purchases land from a disposing agency from reconveying the land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing.
This bill would modify that provision to remove reference to housing authorities and redevelopment agencies and make other nonsubstantive changes.
Existing law specifies that any public agency disposing of surplus land to a specified entity that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land.
This bill would modify those provisions to refer, instead, to a local agency disposing of surplus land.
Existing law authorizes a local agency to negotiate concurrently with all entities that provide notice of interest for the purpose of developing affordable housing that meets specified requirements.
This bill would modify that provision to reference low- and moderate-income housing that meets specified requirements. The bill would make other nonsubstantive changes to this provision.
Existing law makes a local agency that disposes of land in violation of these provisions after receiving notice from the Department of Housing and Community Development liable for a penalty of 30% of the final sale price of the surplus land sold for a first violation and 50% for any subsequent violation.
This bill would, instead, make a local agency that disposes of surplus land in violation of these provisions, except as specified, after receiving a notification from the Department of Housing and Community Development, as specified, that the local agency is in violation of these provisions liable for a penalty of 30% of the applicable disposition value, which the bill would define. This bill would prohibit the penalties for violating these provisions from applying to nonsubstantive violations that do not impact the availability or construction of housing affordable to lower income households or the ultimate disposition of the land, as specified. The bill would make nonsubstantive changes to, and correct an erroneous cross-reference in, those provisions.
Existing law provides that certain dispositions of real property by local agencies are subject to surplus land disposal procedures as they existed on December 31, 2019, if those dispositions are pursuant to specified legal agreements and the disposition is completed by December 31, 2022, or by December 31, 2024, if the property is located in a charter city with a population of over 2,000,000 persons and a local agency has an option agreement duly authorized by the governing body to purchase the property from a former redevelopment agency.
This bill would instead subject dispositions of real property by local agencies to surplus land disposal procedures as they existed on December 31, 2019, if those dispositions are pursuant to specified legal agreements and the dispositions are completed by December 31, 2027. The bill would authorize a local agency that terminated an exclusive negotiating agreement or legally binding agreement to dispose of property, as specified, to elect whether to ask the requisite party to consider reviving the terminated agreement, and would make the revived agreement subject to these provisions, as applicable.
This bill would specify that the law governing surplus land does not require a local agency to dispose of land that is determined to be surplus.
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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
This bill would make its operation contingent on the enactment of SB 747 of the 202324 Regular Session.
This bill would incorporate additional changes to Section 54221 of the Government Code proposed by SB 747 to be operative only if this bill and SB 747 are enacted and this bill is enacted last.
Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospective transferee, particularly that the local agency send a notice of availability to specified entities that have notified the Department of Housing and Community Development of their interest in surplus land, as specified. Under existing law, if the local agency receives a notice of interest, the local agency is required to engage in good faith negotiations with the entity desiring to purchase or lease the surplus land.
This bill would define the term dispose to mean the sale of the surplus property or a lease of any surplus property entered into on or after January 1, 2024, for a term longer than 15 years, including renewal options, as specified. The bill would provide that dispose does not include entering a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease.
Existing law requires a local agency to take formal action in a regular public meeting to declare that land is surplus and is not necessary for the agencys use and to declare land as either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures.
This bill would exempt a local agency, in specified instances, from making a declaration at a public meeting for land that is exempt surplus land if the local agency identifies the land in a notice that is published and available for public comment at least 30 days before the exemption takes effect.
Existing law defines exempt surplus land, for which a local agency is not required to follow the requirements for disposal of surplus land, except as provided, as, among other things, surplus land that is put out to open, competitive bid by a local agency for specified housing and mixed-use development purposes, and surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, as specified.
This bill would recast the definition of exempt surplus land with respect to surplus land for specified housing purposes, to remove the requirement that it be put out to open, competitive bid. The bill would also include within the definition of exempt surplus land surplus land totaling 10 or more acres, consisting of a single parcel, or of 2 or more adjacent or nonadjacent parcels totaling 10 or more acres, combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute, as specified. The bill would require that land be subject to an open, competitive bid process, as specified, and that the development satisfy certain requirements. The bill would make a violation of these provisions subject to specified penalties. The bill would also require that a local agency that disposes of land pursuant to those provisions do so through a disposition and development agreement containing specified provisions. The bill would also require, with respect to surplus land that is subject to valid legal restrictions, that the legal restrictions described above be supported by documentary evidence and written findings, as specified. The bill would require that certain surplus land be transferred with a covenant or restriction recorded against the land at the time of sale, as specified. By narrowing the circumstances under which certain surplus land may be defined as exempt surplus land and, therefore, expanding the duties of local officials, the bill would impose a state-mandated local program.
Existing law defines exempt surplus land to include surplus land that a local agency is exchanging for another property necessary for the agencys use.
This bill would include easements necessary for the agencys use for purposes of that provision.
Existing law specifies that, for purposes of these provisions, the term exempt surplus land, includes, among other things, surplus land that is put out to open, competitive bid by a local agency, as specified, for purposes of a mixed-use development that is more than one acre in area, that includes not less than 300 housing units, and that restricts at least 25% of the residential units to lower income households with an affordable sales price or an affordable rent for a minimum of 55 years for rental housing and 45 years land use for ownership housing.
This bill would modify these provisions to require that the mixed-use development include not less than 300 residential units. units, would modify the affordability restriction to 50 years for rental or ownership housing located on tribal trust lands, and would require the restrictions to be recorded, as specified.
Existing law also defines exempt surplus land as, among other things, land that was transferred by the state to a local agency, as specified, that includes residential units that are restricted to persons and families of low or moderate income with an affordable sales price or rent, at least 80% of which shall be restricted to persons and families of lower income.
This bill would expand the definition of exempt surplus land to include land that is owned by a California public-use airport on which residential use is prohibited pursuant to specified federal law. The bill would expand in the definition of exempt surplus land to also include certain mixed-use developments that meet specified conditions, including that at least 25% of the residential units are restricted to lower income households and at least 50% of the square footage of the new construction is designated for residential use, and surplus land owned by a local agency whose primary mission or purpose is to supply the public with a transportation system that is developed for commercial, or industrial uses or activities, for the sole purpose of investment if certain conditions are met. The bill would also modify exemptions related to land transferred after activation of a parking authority and land that is a former military base to include an affordability restriction of 50 years for rental or ownership housing located on tribal trust lands.
Existing law requires any local agency disposing of surplus land to send a written notice of availability of the property to specified entities. Existing law requires the Department of Housing and Community Development to maintain on its internet website a list of all notices of availability throughout the state.
This bill would require the department to also maintain on its internet website a list of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing. This bill would also specify that certain actions are not considered participating in negotiations for purposes of the above-described notice of availability requirement, including issuing a request for proposals or negotiating a lease for purposes of complying with specified provisions of law. The bill would make other nonsubstantive changes to provisions that describe the entities to which notices of availability for developing low- and moderate-income housing, for open-space purposes, and for school facilities construction are required to be sent.
Existing law requires that an entity proposing to use surplus land for developing low- and moderate-income housing agree to make available a specified percentage of the total number of units developed at affordable housing cost or affordable rent to lower income households, as specified, and that this requirement be contained in a covenant or restriction recorded against the surplus land at the time of the sale that shall run with the land and be enforceable by specified entities and persons.
This bill would make nonsubstantive changes to the provisions that describe the entities and persons that can enforce the covenant or restriction.
Existing law requires an entity proposing to use the surplus land for developing low- and moderate-income housing to agree to make available not less than 25% of the total number of units developed on the parcels at affordable housing cost for a period of at least 55 years.
This bill would instead require the entity to require requirement to agree to make available not less than 25% of the total number of units developed on the parcels at affordable housing cost for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
Existing law specifies that after the disposing agency has received a notice of interest from the entity desiring to purchase or lease the land, if price or terms cannot be agreed upon after a good faith negotiation period, the land may be disposed of, as specified.
This bill would recast that provision to state that after the specified good faith negotiation, the local agency may dispose of the surplus land, as specified.
Existing law proclaims that nothing in these provisions relating to the disposition of surplus property shall preclude a local agency, housing authority, or redevelopment agency that purchases land from a disposing agency from reconveying the land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing.
This bill would modify that provision to remove reference to housing authorities and redevelopment agencies and make other nonsubstantive changes.
Existing law specifies that any public agency disposing of surplus land to a specified entity that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land.
This bill would modify those provisions to refer, instead, to a local agency disposing of surplus land.
Existing law authorizes a local agency to negotiate concurrently with all entities that provide notice of interest for the purpose of developing affordable housing that meets specified requirements.
This bill would modify that provision to reference low- and moderate-income housing that meets specified requirements. The bill would make other nonsubstantive changes to this provision.
Existing law makes a local agency that disposes of land in violation of these provisions after receiving notice from the Department of Housing and Community Development liable for a penalty, of 30% of the final sale price of the surplus land sold for a first violation and 50% for any subsequent violation.
This bill would, instead, make a local agency that disposes of surplus land in violation of these provisions, except as specified, after receiving a notification from the Department of Housing and Community Development, as specified, that the local agency is in violation of these provisions liable for a penalty of 30% of the greater of the final sale price, or of the fair market value at the time of disposition, as determined by an independent appraisal, of the surplus land for a first violation, and 50% of the greater of the 2 sums, for any subsequent violation.of the applicable disposition value, which the bill would define. This bill would prohibit the penalties for violating these provisions from applying to nonsubstantive violations that do not impact the availability or construction of housing affordable to lower income households or the ultimate disposition of the land, as specified. The bill would make nonsubstantive changes to, and correct an erroneous cross-reference in, those provisions.
Existing law provides that certain dispositions of real property by local agencies are subject to surplus land disposal procedures as they existed on December 31, 2019, if those dispositions are pursuant to specified legal agreements and the disposition is completed by December 31, 2022, or by December 31, 2024, if the property is located in a charter city with a population of over 2,000,000 persons and a local agency has an option agreement duly authorized by the governing body to purchase the property from a former redevelopment agency.
This bill would instead subject dispositions of real property by local agencies to surplus land disposal procedures as they existed on December 31, 2019, if those dispositions are pursuant to specified legal agreements and the dispositions are completed by December 31, 2027. The bill would authorize a local agency that terminated an exclusive negotiating agreement or legally binding agreement to dispose of property, as specified, to elect whether to ask the requisite party to consider reviving the terminated agreement, and would make the revived agreement subject to these provisions, as applicable.
This bill would specify that the law governing surplus land does not require a local agency to dispose of land that is determined to be surplus.
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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
This bill would make its operation contingent on the enactment of SB 747 of the 202324 Regular Session.
This bill would incorporate additional changes to Section 54221 of the Government Code proposed by SB 747 to be operative only if this bill and SB 747 are enacted and this bill is enacted last.
Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospective transferee, particularly that the local agency send a notice of availability to specified entities that have notified the Department of Housing and Community Development of their interest in surplus land, as specified. Under existing law, if the local agency receives a notice of interest, the local agency is required to engage in good faith negotiations with the entity desiring to purchase or lease the surplus land.
Existing law requires a local agency to take formal action in a regular public meeting to declare that land is surplus and is not necessary for the agencys use and to declare land as either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures.
This bill would recast that provision and would exempt a local agency, in specified instances, from making a declaration at a public meeting for land that is exempt surplus land if the local agency identifies the land in a notice that is published and available for public comment at least 30 days before the exemption takes effect. The bill would also require a local agency to provide a written notification to the Department of Housing and Community Development of its declaration and findings 30 days before disposing of land declared exempt surplus land. Because this bill would require local officials to perform additional duties, it would impose a state-mandated local program.
Existing law defines exempt surplus land, for which a local agency is not required to follow the requirements for disposal of surplus land, except as provided, as, among other things, surplus land that is put out to open, competitive bid by a local agency for specified housing and mixed-use development purposes, and surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, as specified.
This bill would recast the definition of exempt surplus land with respect to surplus land for specified housing purposes, to remove the requirement that it be put out to open, competitive bid. The bill would also include within the definition of exempt surplus land surplus land totaling 10 or more acres, consisting of a single parcel, or of 2 or more adjacent or nonadjacent parcels totaling 10 or more acres, combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute, as specified. The bill would require that land to be subject to an open, competitive bid process, as specified, and that the development satisfy certain requirements. The bill would make a violation of these provisions subject to specified penalties. The bill would also require that a local agency that disposes of land pursuant to those provisions do so through a disposition and development agreement containing specified provisions. The bill would also require, with respect to other surplus land, surplus land that is subject to valid legal restrictions, that the legal restrictions described above be documented and verified in writing by the relevant agencies that have authority relating to the restrictions. supported by documentary evidence and written findings, as specified. The bill would require that certain surplus land be transferred with a covenant or restriction recorded against the land at the time of sale, as specified. By narrowing the circumstances under which certain surplus land may be defined as exempt surplus land and, therefore, expanding the duties of local officials, the bill would impose a state-mandated local program.
Existing law specifies that, for purposes of these provisions, the term exempt surplus land, includes, among other things, surplus land that is put out to open, competitive bid by a local agency, as specified, for purposes of a mixed-use development that is more than one acre in area, that includes not less than 300 housing units, and that restricts at least 25% of the residential units to lower income households with an affordable sales price or an affordable rent for a minimum of 55 years for rental housing and 45 years for ownership housing.
This bill would modify these provisions to require that the mixed-use development include not less than 300 residential units.
Existing law also defines exempt surplus land as, among other things, land that was transferred by the state to a local agency, as specified, that includes residential units that are restricted to persons and families of low or moderate income with an affordable sales price or rent, at least 80% of which shall be restricted to persons and families of lower income.
This bill would expand the definition of exempt surplus land to include land that is owned by a California public-use airport on which residential use is prohibited pursuant to specified federal law.
Existing law requires any local agency disposing of surplus land to send a written notice of availability of the property to specified entities. Existing law requires the Department of Housing and Community Development to maintain on its internet website a list of all notices of availability throughout the state.
This bill would require the department to also maintain on its internet website a list of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing. The bill would make other nonsubstantive changes to provisions that describe the entities to which notices of availability for developing low- and moderate-income housing, for open-space purposes, and for school facilities construction are required to be sent.
Existing law requires that an entity proposing to use surplus land for developing low- and moderate-income housing agree to make available a specified percentage of the total number of units developed at affordable housing cost or affordable rent to lower income households, as specified, and that this requirement be contained in a covenant or restriction recorded against the surplus land at the time of the sale that shall run with the land and be enforceable by specified entities and persons.
This bill would make nonsubstantive changes to the provisions that describe the entities and persons that can enforce the covenant or restriction.
Existing law specifies that after the disposing agency has received a notice of interest from the entity desiring to purchase or lease the land, if price or terms cannot be agreed upon after a good faith negotiation period, the land may be disposed of, as specified.
This bill would recast that provision to state that after the specified good faith negotiation, the local agency may dispose of the surplus land, as specified.
Existing law proclaims that nothing in these provisions relating to the disposition of surplus property shall preclude a local agency, housing authority, or redevelopment agency that purchases land from a disposing agency from reconveying the land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing.
This bill would modify that provision to remove reference to housing authorities and redevelopment agencies and make other nonsubstantive changes.
Existing law specifies that any public agency disposing of surplus land to a specified entity that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land.
This bill would modify those provisions to refer, instead, to a local agency disposing of surplus land.
Existing law authorizes a local agency to negotiate concurrently with all entities that provide notice of interest for the purpose of developing affordable housing that meets specified requirements.
This bill would modify that provision to reference low- and moderate-income housing that meets specified requirements. The bill would make other nonsubstantive changes to this provision.
Existing law makes a local agency that disposes of land in violation of these provisions after receiving notice from the Department of Housing and Community Development liable for a penalty, of 30% of the final sale price of the surplus land sold for a first violation and 50% for any subsequent violation.
This bill would, instead, make a local agency that disposes of surplus land in violation of these provisions provisions, except as specified, after receiving a notification from the Department of Housing and Community Development, as specified, that the local agency is in violation of these provisions liable for a penalty of 30% of the greater of the final sale price, or of the fair market value at the time of disposition, as determined by an independent appraisal, of the surplus land for a first violation, and 50% of the greater of the 2 sums, for any subsequent violation. The bill would make nonsubstantive changes to, and correct an erroneous cross-reference in, those provisions.
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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospective transferee, particularly that the local agency send a notice of availability to specified entities that have notified the Department of Housing and Community Development of their interest in surplus land, as specified. Under existing law, if the local agency receives a notice of interest, the local agency is required to engage in good faith negotiations with the entity desiring to purchase or lease the surplus land.
Existing law requires a local agency to take formal action in a regular public meeting to declare that land is surplus and is not necessary for the agencys use and to declare land as either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures.
This bill would recast that provision and would exempt a local agency, in specified instances, from making a declaration at a public meeting for land that is exempt surplus land if the local agency identifies the land in a notice that is published and available for public comment at least 30 days before the exemption takes effect. The bill would also require a local agency to provide a written notification to the Department of Housing and Community Development of its declaration and findings 30 days before disposing of land declared exempt surplus land. Because this bill would require local officials to perform additional duties, it would impose a state-mandated local program.
Existing law defines exempt surplus land, for which a local agency is not required to follow the requirements for disposal of surplus land, except as provided, as, among other things, surplus land that is put out to open, competitive bid by a local agency for specified housing and mixed-use development purposes, and surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, as specified.
This bill would recast the definition of exempt surplus land with respect to surplus land for specified housing purposes, to remove the requirement that it be put out to open, competitive bid. The bill would also include within the definition of exempt surplus land surplus land totaling 10 or more acres, consisting of a single parcel, or of 2 or more adjacent or nonadjacent parcels totaling 10 or more acres, combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute, as specified. The bill would require that land to be subject to an open, competitive bid process, as specified, and that the development satisfy certain requirements. The bill would make a violation of these provisions subject to specified penalties. The bill would also require, with respect to other surplus land, that the legal restrictions described above be documented and verified in writing by the relevant agencies that have authority relating to the restrictions.
Existing law specifies that, for purposes of these provisions, the term exempt surplus land, includes, among other things, surplus land that is put out to open, competitive bid by a local agency, as specified, for purposes of a mixed-use development that is more than one acre in area, that includes not less than 300 housing units, and that restricts at least 25% of the residential units to lower income households with an affordable sales price or an affordable rent for a minimum of 55 years for rental housing and 45 years for ownership housing.
This bill would modify these provisions to require that the mixed-use development include not less than 300 residential units.
Existing law also defines exempt surplus land as, among other things, land that was transferred by the state to a local agency, as specified, that includes residential units that are restricted to persons and families of low or moderate income with an affordable sales price or rent, at least 80% of which shall be restricted to persons and families of lower income.
This bill would expand the definition of exempt surplus land to include land that is owned by a California public-use airport on which residential use is prohibited pursuant to specified federal law.
Existing law requires any local agency disposing of surplus land to send a written notice of availability of the property to specified entities. Existing law requires the Department of Housing and Community Development to maintain on its internet website a list of all notices of availability throughout the state.
This bill would require the department to also maintain on its internet website a list of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing. The bill would make other nonsubstantive changes to provisions that describe the entities to which notices of availability for developing low- and moderate-income housing, for open-space purposes, and for school facilities construction are required to be sent.
Existing law requires that an entity proposing to use surplus land for developing low- and moderate-income housing agree to make available a specified percentage of the total number of units developed at affordable housing cost or affordable rent to lower income households, as specified, and that this requirement be contained in a covenant or restriction recorded against the surplus land at the time of the sale that shall run with the land and be enforceable by specified entities and persons.
This bill would make nonsubstantive changes to the provisions that describe the entities and persons that can enforce the covenant or restriction.
Existing law specifies that after the disposing agency has received a notice of interest from the entity desiring to purchase or lease the land, if price or terms cannot be agreed upon after a good faith negotiation period, the land may be disposed of, as specified.
This bill would recast that provision to state that after the specified good faith negotiation, the local agency may dispose of the surplus land, as specified.
Existing law proclaims that nothing in these provisions relating to the disposition of surplus property shall preclude a local agency, housing authority, or redevelopment agency that purchases land from a disposing agency from reconveying the land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing.
This bill would modify that provision to remove reference to housing authorities and redevelopment agencies and make other nonsubstantive changes.
Existing law specifies that any public agency disposing of surplus land to a specified entity that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land.
This bill would modify those provisions to refer, instead, to a local agency disposing of surplus land.
Existing law authorizes a local agency to negotiate concurrently with all entities that provide notice of interest for the purpose of developing affordable housing that meets specified requirements.
This bill would modify that provision to reference low- and moderate-income housing that meets specified requirements. The bill would make other nonsubstantive changes to this provision.
Existing law makes a local agency that disposes of land in violation of these provisions after receiving notice from the Department of Housing and Community Development liable for a penalty, of 30% of the final sale price of the surplus land sold for a first violation and 50% for any subsequent violation.
This bill would, instead, make a local agency that disposes of surplus land in violation of these provisions after receiving a notification from the Department of Housing and Community Development, as specified, that the local agency is in violation of these provisions liable for a penalty of 30% of the greater of the final sale price, or of the fair market value at the time of disposition, as determined by an independent appraisal, of the surplus land for a first violation, and 50% of the greater of the 2 sums, for any subsequent violation. The bill would make nonsubstantive changes to, and correct an erroneous cross-reference in, those provisions.
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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospective transferee, particularly that the local agency send a notice of availability to specified entities that have notified the Department of Housing and Community Development of their interest in surplus land, as specified. Under existing law, if the local agency receives a notice of interest, the local agency is required to engage in good faith negotiations with the entity desiring to purchase or lease the surplus land.
Existing law requires a local agency to take formal action in a regular public meeting to declare that land is surplus and is not necessary for the agencys use and to declare land as either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures.
This bill would recast that provision and would exempt a local agency, in specified instances, from making a declaration at a public meeting for land that is exempt surplus land if the local agency identifies the land in a notice that is published and available for public comment at least 30 days before the exemption takes effect. The bill would also require a local agency to provide a written notification to the Department of Housing and Community Development of its declaration and findings 30 days before disposing of land declared exempt surplus land. Because this bill would require local officials to perform additional duties, it would impose a state-mandated local program.
Existing law defines exempt surplus land, for which a local agency is not required to follow the requirements for disposal of surplus land, except as provided, as, among other things, surplus land that is put out to open, competitive bid by a local agency for specified housing and mixed-use development purposes, and surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, as specified.
This bill would require that those recast the definition of exempt surplus land with respect to surplus land for specified housing purposes, to remove the requirement that it be put out to open, competitive bid. The bill would also include within the definition of exempt surplus land surplus land totaling 10 or more acres, consisting of a single parcel, or of 2 or more adjacent or nonadjacent parcels totaling 10 or more acres, combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute, as specified. The bill would require that land to be subject to an open, competitive bid process, as specified, and that the development satisfy certain requirements. The bill would make a violation of these provisions subject to specified penalties. The bill would also require, with respect to other surplus land, that the legal restrictions described above be documented and verified in writing by the relevant agencies that have authority relating to the restrictions.
Existing law specifies that, for purposes of these provisions, the term exempt surplus land, includes, among other things, surplus land that is put out to open, competitive bid by a local agency, as specified, for purposes of a mixed-use development that is more than one acre in area, that includes not less than 300 housing units, and that restricts at least 25% of the residential units to lower income households with an affordable sales price or an affordable rent for a minimum of 55 years for rental housing and 45 years for ownership housing.
This bill would modify these provisions to require that the mixed-use development include not less than 300 residential units.
Existing law also defines exempt surplus land as, among other things, land that was transferred by the state to a local agency, as specified, that includes residential units that are restricted to persons and families of low or moderate income with an affordable sales price or rent, at least 80% of which shall be restricted to persons and families of lower income.
This bill would expand the definition of exempt surplus land to include land that is owned by a California public-use airport on which residential use is prohibited pursuant to specified federal law.
Existing law requires any local agency disposing of surplus land to send a written notice of availability of the property to specified entities. Existing law requires the Department of Housing and Community Development to maintain on its internet website a list of all notices of availability throughout the state.
This bill would require the department to also maintain on its internet website a list of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing. The bill would make other nonsubstantive changes to provisions that describe the entities to which notices of availability for developing low- and moderate-income housing, for open-space purposes, and for school facilities construction are required to be sent.
Existing law requires that an entity proposing to use surplus land for developing low- and moderate-income housing agree to make available a specified percentage of the total number of units developed at affordable housing cost or affordable rent to lower income households, as specified, and that this requirement be contained in a covenant or restriction recorded against the surplus land at the time of the sale that shall run with the land and be enforceable by specified entities and persons.
This bill would make nonsubstantive changes to the provisions that describe the entities and persons that can enforce the covenant or restriction.
Existing law specifies that after the disposing agency has received a notice of interest from the entity desiring to purchase or lease the land, if price or terms cannot be agreed upon after a good faith negotiation period, the land may be disposed of, as specified.
This bill would recast that provision to state that after the specified good faith negotiation, the local agency may dispose of the surplus land, as specified.
Existing law proclaims that nothing in these provisions relating to the disposition of surplus property shall preclude a local agency, housing authority, or redevelopment agency that purchases land from a disposing agency from reconveying the land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing.
This bill would modify that provision to remove reference to housing authorities and redevelopment agencies and make other nonsubstantive changes.
Existing law specifies that any public agency disposing of surplus land to a specified entity that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land.
This bill would modify those provisions to refer, instead, to a local agency disposing of surplus land.
Existing law authorizes a local agency to negotiate concurrently with all entities that provide notice of interest for the purpose of developing affordable housing that meets specified requirements.
This bill would modify that provision to reference low- and moderate-income housing that meets specified requirements. The bill would make other nonsubstantive changes to this provision.
Existing law makes a local agency that disposes of land in violation of these provisions after receiving notice from the Department of Housing and Community Development liable for a penalty, of 30% of the final sale price of the surplus land sold for a first violation and 50% for any subsequent violation.
This bill would, instead, make a local agency that disposes of surplus land in violation of these provisions after receiving a notification from the Department of Housing and Community Development, as specified, that the local agency is in violation of these provisions liable for a penalty of 30% of the greater of the final sale price, or of the fair market value at the time of disposition, as determined by an independent appraisal, of the surplus land for a first violation, and 50% of the greater of the 2 sums, for any subsequent violation. The bill would make nonsubstantive changes to, and correct an erroneous cross-reference in, those provisions.
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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospective transferee, particularly that the local agency send a notice of availability to specified entities that have notified the Department of Housing and Community Development of their interest in surplus land, as specified. Under existing law, if the local agency receives a notice of interest, the local agency is required to engage in good faith negotiations with the entity desiring to purchase or lease the surplus land.
Existing law requires a local agency to take formal action in a regular public meeting to declare land is surplus and is not necessary for the agencys use and to declare land as either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures.
This bill would recast that provision and would authorize, exempt a local agency, in specified instances, that a local agency administratively declare land as from making a declaration at a public meeting for land that is exempt surplus land if the declaration and findings are the local agency identifies the land in a notice that is published and available for public comment at least 30 days before the declaration exemption takes effect. The bill would also require a local agency to provide a written notification to the Department of Housing and Community Development of its declaration and findings 30 days before disposing of land declared exempt surplus land. Because this bill would require local officials to perform additional duties, it would impose a state-mandated local program.
Existing law defines exempt surplus land, for which a local agency is not required to follow the requirements for disposal of surplus land, except as provided, as, among other things, surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, as specified.
This bill would require that those legal restrictions be documented and verified in writing by the relevant agencies that have authority relating to the restrictions.
Existing law specifies that, for purposes of these provisions, the term exempt surplus land, includes, among other things, surplus land that is put out to open, competitive bid by a local agency, as specified, for purposes of a mixed-use development that is more than one acre in area, that includes not less than 300 housing units, and that restricts at least 25% of the residential units to lower income households with an affordable sales price or an affordable rent for a minimum of 55 years for rental housing and 45 years for ownership housing.
This bill would modify these provisions to require that the mixed-use development include not less than 300 residential units.
Existing law also defines exempt surplus land as, among other things, land that was transferred by the state to a local agency, as specified, that includes residential units that are restricted to persons and families of low or moderate income with an affordable sales price or rent, at least 80% of which shall be restricted to persons and families of lower income.
This bill would expand the definition of exempt surplus land to include land that is owned by a California public-use airport on which residential use is prohibited pursuant to specified federal law.
Existing law requires any local agency disposing of surplus land to send a written notice of availability of the property to specified entities. Existing law requires the Department of Housing and Community Development to maintain on its internet website a list of all notices of availability throughout the state.
This bill would require the department to also maintain on its internet website a list of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing. The bill would make other nonsubstantive changes to provisions that describe the entities to which notices of availability for developing low- and moderate-income housing, for open-space purposes, and for school facilities construction are required to be sent.
Existing law requires that an entity proposing to use surplus land for developing low- and moderate-income housing agree to make available a specified percentage of the total number of units developed at affordable housing cost or affordable rent to lower income households, as specified, and that this requirement be contained in a covenant or restriction recorded against the surplus land at the time of the sale that shall run with the land and be enforceable by specified entities and persons.
This bill would make nonsubstantive changes to the provisions that describe the entities and persons that can enforce the covenant or restriction.
Existing law specifies that after the disposing agency has received a notice of interest from the entity desiring to purchase or lease the land, if price or terms cannot be agreed upon after a good faith negotiation period, the land may be disposed of, as specified.
This bill would recast that provision to state that after the specified good faith negotiation, the local agency may dispose of the surplus land, as specified.
Existing law proclaims that nothing in these provisions relating to the disposition of surplus property shall preclude a local agency, housing authority, or redevelopment agency that purchases land from a disposing agency from reconveying the land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing.
This bill would modify that provision to remove reference to housing authorities and redevelopment agencies and make other nonsubstantive changes.
Existing law specifies that any public agency disposing of surplus land to a specified entity that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land.
This bill would modify those provisions to refer, instead, to a local agency disposing of surplus land.
Existing law authorizes a local agency to negotiate concurrently with all entities that provide notice of interest for the purpose of developing affordable housing that meets specified requirements.
This bill would modify that provision to reference low- and moderate-income housing that meets specified requirements. The bill would make other nonsubstantive changes to this provision.
Existing law makes a local agency that disposes of land in violation of these provisions after receiving notice from the Department of Housing and Community Development liable for a penalty, of 30% of the final sale price of the surplus land sold for a first violation and 50% for any subsequent violation.
This bill would, instead, make a local agency that disposes of surplus land in violation of these provisions after receiving a notification from the Department of Housing and Community Development, as specified, that the local agency is in violation of these provisions liable for a penalty of 30% of the greater of the final sale price, or of the fair market value at the time of disposition, as determined by an independent appraisal, of the surplus land for a first violation, and 50% of the greater of the 2 sums, for any subsequent violation. The bill would make nonsubstantive changes to, and correct an erroneous cross-reference in, those provisions.
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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospective transferee, particularly that the local agency send a notice of availability to specified entities that have notified the Department of Housing and Community Development of their interest in surplus land, as specified. Under existing law, if the local agency receives a notice of interest, the local agency is required to engage in good faith negotiations with the entity desiring to purchase or lease the surplus land.
Existing law requires a local agency to take formal action in a regular public meeting to declare land is surplus and is not necessary for the agencys use and to declare land as either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures.
This bill would recast that provision and would authorize, in specified instances, that a local agency administratively declare land as exempt surplus land if the declaration and findings are published and available for public comment at least 30 days before the declaration takes effect. The bill would also require a local agency to provide a written notification to the Department of Housing and Community Development of its declaration and findings 30 days before disposing of land declared exempt surplus land. Because this bill would require local officials to perform additional duties, it would impose a state-mandated local program.
Existing law defines exempt surplus land, for which a local agency is not required to follow the requirements for disposal of surplus land, except as provided, as, among other things, surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, as specified.
This bill would require that those legal restrictions be documented and verified in writing by the relevant agencies that have authority relating to the restrictions.
Existing law defines terms for purposes of these provisions, including specifies that, for purposes of these provisions, the term exempt surplus land, which includes, among other things, surplus land that is put out to open, competitive bid by a local agency, as specified, for purposes of a mixed-use development that is more than one acre in area, that includes not less than 300 housing units, and that restricts at least 25% of the residential units to lower income households with an affordable sales price or an affordable rent for a minimum of 55 years for rental housing and 45 years for ownership housing.
This bill would modify these provisions to require that the mixed-use development include not less than 300 residential units.
Existing law also defines exempt surplus land as, among other things, land that was transferred by the state to a local agency, as specified, that includes residential units that are restricted to persons and families of low or moderate income with an affordable sales price or rent, at least 80% of which shall be restricted to persons and families of lower income.
This bill would expand the definition of exempt surplus land to include land that is owned by a California public-use airport on which residential use is prohibited pursuant to specified federal law.
Existing law requires any local agency disposing of surplus land to send a written notice of availability of the property to specified entities. Existing law requires the Department of Housing and Community Development to maintain on its internet website a list of all notices of availability throughout the state.
This bill would require the department to also maintain on its internet website a list of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing. The bill would make other nonsubstantive changes to provisions that describe the entities to which notices of availability for developing low- and moderate-income housing, for open-space purposes, and for school facilities construction are required to be sent.
Existing law requires that an entity proposing to use surplus land for developing low- and moderate-income housing agree to make available a specified percentage of the total number of units developed at affordable housing cost or affordable rent to lower income households, as specified, and that this requirement be contained in a covenant or restriction recorded against the surplus land at the time of the sale that shall run with the land and be enforceable by specified entities and persons.
This bill would make nonsubstantive changes to the provisions that describe the entities and persons that can enforce the covenant or restriction.
Existing law specifies that after the disposing agency has received a notice of interest from the entity desiring to purchase or lease the land, if price or terms cannot be agreed upon after a good faith negotiation period, the land may be disposed of, as specified.
This bill would recast that provision to state that after the specified good faith negotiation, the local agency may dispose of the surplus land, as specified.
Existing law proclaims that nothing in these provisions relating to the disposition of surplus property shall preclude a local agency, housing authority, or redevelopment agency that purchases land from a disposing agency from reconveying the land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing.
This bill would modify that provision to remove reference to housing authorities and redevelopment agencies and make other nonsubstantive changes.
Existing law specifies that any public agency disposing of surplus land to a specified entity that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land.
This bill would modify those provisions to refer, instead, to a local agency disposing of surplus land.
Existing law authorizes a local agency to negotiate concurrently with all entities that provide notice of interest for the purpose of developing affordable housing that meets specified requirements.
This bill would modify that provision to reference low- and moderate-income housing that meets specified requirements. The bill would make other nonsubstantive changes to this provision.
Existing law makes a local agency that disposes of land in violation of these provisions after receiving notice from the Department of Housing and Community Development liable for a penalty, as specified. of 30% of the final sale price of the surplus land sold for a first violation and 50% for any subsequent violation.
This bill would, instead, make a local agency that disposes of surplus land in violation of these provisions after receiving a notification from the Department of Housing and Community Development, as specified, that the local agency is in violation of these provisions liable for a penalty of 30% of the greater of the final sale price, or of the fair market value at the time of disposition, as determined by an independent appraisal, of the surplus land for a first violation, and 50% of the greater of the 2 sums, for any subsequent violation. The bill would make nonsubstantive changes to, and correct an erroneous cross-reference in, those provisions.
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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospective transferee, particularly that the local agency send a notice of availability to specified entities that have notified the Department of Housing and Community Development of their interest in surplus land, as specified. Under existing law, if the local agency receives a notice of interest, the local agency is required to engage in good faith negotiations with the entity desiring to purchase or lease the surplus land.
Existing law defines terms for purposes of these provisions, including the term exempt surplus land, which includes, among other things, surplus land that is put out to open, competitive bid by a local agency, as specified, for purposes of a mixed-use development that is more than one acre in area, that includes not less than 300 housing units, and that restricts at least 25% of the residential units to lower income households with an affordable sales price or an affordable rent for a minimum of 55 years for rental housing and 45 years for ownership housing.
This bill would modify these provisions to require that the mixed-use development include not less than 300 residential units.
Existing law also defines exempt surplus land as, among other things, land that was transferred by the state to a local agency, as specified, that includes residential units that are restricted to persons and families of low or moderate income with an affordable sales price or rent, at least 80% of which shall be restricted to persons and families of lower income.
This bill would expand the definition of exempt surplus land to include land that is owned by a California public-use airport on which residential use is prohibited pursuant to specified federal law.
Existing law requires any local agency disposing of surplus land to send a written notice of availability of the property to specified entities. Existing law requires the Department of Housing and Community Development to maintain on its internet website a list of all notices of availability throughout the state.
This bill would require the department to also maintain on its internet website a list of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing. The bill would make other nonsubstantive changes to provisions that describe the entities to which notices of availability for developing low- and moderate-income housing, for open-space purposes, and for school facilities construction are required to be sent.
Existing law requires that an entity proposing to use surplus land for developing low- and moderate-income housing agree to make available a specified percentage of the total number of units developed at affordable housing cost or affordable rent to lower income households, as specified, and that this requirement be contained in a covenant or restriction recorded against the surplus land at the time of the sale that shall run with the land and be enforceable by specified entities and persons.
This bill would make nonsubstantive changes to the provisions that describe the entities and persons that can enforce the covenant or restriction.
Existing law specifies that after the disposing agency has received a notice of interest from the entity desiring to purchase or lease the land, if price or terms cannot be agreed upon after a good faith negotiation period, the land may be disposed of, as specified.
This bill would recast that provision to state that after the specified good faith negotiation, the local agency may dispose of the surplus land, as specified.
Existing law proclaims that nothing in these provisions relating to the disposition of surplus property shall preclude a local agency, housing authority, or redevelopment agency that purchases land from a disposing agency from reconveying the land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing.
This bill would modify that provision to remove reference to housing authorities and redevelopment agencies and make other nonsubstantive changes.
Existing law specifies that any public agency disposing of surplus land to a specified entity that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land.
This bill would modify those provisions to refer, instead, to a local agency disposing of surplus land.
Existing law authorizes a local agency to negotiate concurrently with all entities that provide notice of interest for the purpose of developing affordable housing that meets specified requirements.
This bill would modify that provision to reference low- and moderate-income housing that meets specified requirements. The bill would make other nonsubstantive changes to this provision.
Existing law makes a local agency that disposes of land in violation of these provisions after receiving notice from the Department of Housing and Community Development liable for a penalty, as specified.
This bill would make nonsubstantive changes to, and correct an erroneous cross-reference in, those provisions.
As used in this article, the following definitions shall apply:
(a)(1)Local agency means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.
(2)The Legislature finds and declares that the term district as used in this article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law.
(b)(1)Surplus land means land owned in fee simple by any local agency for which the local agencys governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agencys use. Land shall be declared either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures. A local agency, on an annual basis, may declare multiple parcels as surplus land or exempt surplus land.
(2)Surplus land includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.
(3)Nothing in this article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with Section 54226.
(4)Notwithstanding paragraph (1), a local agency is not required to make a declaration at a public meeting for land that is exempt surplus land pursuant to subparagraph (A), (B), (E), (K), (L), or (Q) of paragraph (1) of subdivision (f) if the local agency identifies the land in a notice that is published and available for public comment, including notice to the entities identified in subdivision (a) of Section 54222, at least 30 days before the exemption takes effect.
(c)(1)Except as provided in paragraph (2), agencys use shall include, but not be limited to, land that is being used, is planned to be used pursuant to a written plan adopted by the local agencys governing board for, or is disposed to support pursuant to subparagraph (B) of paragraph (2) agency work or operations, including, but not limited to, utility sites, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, and buffer sites near sensitive governmental uses, including, but not limited to, wastewater treatment plants.
(2)(A)Agencys use shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agencys use.
(B)In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, agencys use may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agencys governing body takes action in a public meeting declaring that the use of the site will do one of the following:
(i)Directly further the express purpose of agency work or operations.
(ii)Be expressly authorized by a statute governing the local agency, provided the district complies with Section 54233.5 if applicable.
(d)(1) Dispose means either of the following:
(A)The sale of the surplus land.
(B)The entering of a lease for surplus land, which is for a term longer than 15 years, inclusive of any extension or renewal options included in the terms of the initial lease, entered into on or after January 1, 2024.
(2)Dispose shall not mean either of the following:
(A)The entering of a lease for surplus land, which is for a term of 15 years or less, inclusive of any extension or renewal options included in the terms of the initial lease.
(B)The entering of a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease.
(e)Open-space purposes means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources.
(f)(1)Except as provided in paragraph (2), exempt surplus land means any of the following:
(A)Surplus land that is transferred pursuant to Section 25539.4 or 37364.
(B)Surplus land that is (i) less than 5,000 square feet in area, (ii) less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet in area, whichever is less, or (iii) has no record access and is less than 10,000 square feet in area; and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. If the surplus land is not sold to an owner of contiguous land, it is not considered exempt surplus land and is subject to this article.
(C)Surplus land that a local agency is exchanging for another property necessary for the agencys use. Property may include easements necessary for the agencys use.
(D)Surplus land that a local agency is transferring to another local, state, or federal agency for the agencys use, or to a federally recognized California Indian tribe.
(E)Surplus land that is a former street, right of way, or easement, and is conveyed to an owner of an adjacent property.
(F)(i)Surplus land that is to be developed for a housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, and land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located.
(ii)The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(G)(i)Surplus land that is subject to a local agencys open, competitive solicitation or that is put to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process, for a housing or a mixed-use development that is more than one acre and less than 10 acres in area, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined, that includes not less than 300 residential units, and that restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, and land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(ii)The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(H)(i) Surplus land totaling 10 or more acres, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute. That surplus land shall be subject to a local agencys open, competitive solicitation process or put out to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process for a housing or mixed-use development.
(ii)The aggregate development shall include the greater of the following:
(I)Not less than three hundred residential units.
(II)A number of residential units equal to 10 times the number of acres of the surplus land or 10,000 residential units, whichever is less.
(iii)At least 25 percent of the residential units shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent pursuant to Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(iv)If nonresidential development is included in the development pursuant to this subparagraph, at least 25 percent of the total planned units affordable to lower income households shall be made available for lease or sale and permitted for use and occupancy before or at the same time with every 25 percent of nonresidential development made available for lease or sale and permitted for use and occupancy.
(v)A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph. A local agency shall only dispose of land pursuant to this subparagraph through a disposition and development agreement that includes an indemnification clause that provides that if an action occurs after disposition violates this subparagraph, the person or entity that acquired the property shall be liable for the penalties.
(vi)The requirements of clauses (i) to (v), inclusive, shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(I)A mixed-use development, which may include more than one publicly owned parcel, that meets all of the following conditions:
(i)The development restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(ii)At least 50 percent of the square footage of the new construction associated with the development is designated for residential use.
(iii)The development is not located in an urbanized area, as defined in Section 21094.5 of the Public Resources Code.
(J)Surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. An existing nonresidential land use designation on the surplus land is not a legal restriction that would make housing prohibited for purposes of this subparagraph. Nothing in this article limits a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land.
(K)Surplus land that was granted by the state in trust to a local agency or that was acquired by the local agency for trust purposes by purchase or exchange, and for which disposal of the land is authorized or required subject to conditions established by statute.
(L)Land that is subject to either of the following, unless compliance with this article is expressly required:
(i)Section 17388, 17515, 17536, 81192, 81397, 81399, 81420, or 81422 of the Education Code.
(ii)Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code.
(M)Surplus land that is a former military base that was conveyed by the federal government to a local agency, and is subject to Article 8 (commencing with Section 33492.125) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, provided that all of the following conditions are met:
(i) The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses, and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base.
(ii)The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least 25 percent of the initial 1,400 residential units developed shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(iii)Before disposition of the surplus land, the agency adopts written findings that the land is exempt surplus land pursuant to this subparagraph.
(iv)Before disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agencys project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient.
(v)The agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph or the settlement agreement.
(N)Real property that is used by a district for an agencys use expressly authorized in subdivision (c).
(O)Land that has been transferred before June 30, 2019, by the state to a local agency pursuant to Section 32667 of the Streets and Highways Code and has a minimum planned residential density of at least 100 dwelling units per acre, and includes 100 or more residential units that are restricted to persons and families of low or moderate income, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands. For purposes of this subparagraph, not more than 20 percent of the affordable units may be restricted to persons and families of moderate income and at least 80 percent of the affordable units must be restricted to lower income households as defined in Section 50079.5 of the Health and Safety Code.
(P)(i)Land that meets the following conditions:
(I)Land that is subject to a sectional planning area document that meets both of the following:
(ia)The sectional planning area was adopted prior to January 1, 2019.
(ib)The sectional planning area document is consistent with county and city general plans applicable to the land.
(II)The land identified in the adopted sectional planning area document was dedicated prior to January 1, 2019
(III)On January 1, 2019, the parcels on the land met at least one of the following conditions:
(ia)The land was subject to an irrevocable offer of dedication of fee interest requiring the land to be used for a specified purpose.
(ib)The land was acquired through a land exchange subject to a land offer agreement that grants the lands original owner the right to repurchase the land acquired by the local agency pursuant to the agreement if the land will not be developed in a manner consistent with the agreement.
(ic)The land was subject to a grant deed specifying that the property shall be used for educational uses and limiting other types of uses allowed on the property.
(IV)At least 25 percent of the units are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable rent, as defined by Section 50053 of the Health and Safety Code, or an affordable housing cost, as defined by Section 50052.5 of the Health and Safety Code, and subject to a recorded deed restriction for a period of 55 years for rental units and land use for owner-occupied units.
(V)The land is developed at an average density of at least 10 units per acre, calculated with respect to the entire sectional planning area.
(VI)No more than 25 percent of the nonresidential square footage identified in the sectional planning area document receives its first certificate of occupancy before at least 25 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(VII)No more than 50 percent of the nonresidential square footage identified in the sectional planning area document receives its first certificate of occupancy before at least 50 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(VIII)No more than 75 percent of the nonresidential square footage identified in the sectional planning area document shall receive its first certificate of occupancy before at least 75 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(ii)The local agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development, including the total square footage of the residential and nonresidential development, the number of residential units that have been permitted, and what percentage of those residential units are restricted for persons and families of low or moderate income, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(iii)The Department of Housing and Community Development may request additional information from the agency regarding land disposed of pursuant to this subparagraph.
(iv)At least 30 days prior to disposing of land declared exempt surplus land, a local agency shall provide the Department of Housing and Community Development a written notification of its declaration and findings in a form prescribed by the Department of Housing and Community Development. Within 30 days of receipt of the written notification and findings, the department shall notify the local agency if the department has determined that the local agency is in violation of this article. A local agency that fails to submit the written notification and findings shall be liable for a civil penalty pursuant to this subparagraph. A local agency shall not be liable for the civil penalty if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the written notification and findings. Once the department determines that the declarations and findings comply with subclauses (I) to (IV), inclusive, of clause (i), the local agency may proceed with disposal of land pursuant to this subparagraph. This clause is declaratory of, and not a change in, existing law.
(v)If the local agency disposes of land in violation of this subparagraph, the local agency shall be liable for a civil penalty calculated as follows:
(I)For a first violation, 30 percent of the greater of the final sale price or the fair market value of the land at the time of disposition.
(II)For a second or subsequent violation, 50 percent of the greater of the final sale price or the fair market value of the land at the time of disposition.
(III)For purposes of this subparagraph, fair market value shall be determined by an independent appraisal of the land.
(IV)An action to enforce this subparagraph may be brought by any of the following:
(ia)An entity identified in subdivisions (a) to (e), inclusive, of Section 54222.
(ib)A person who would have been eligible to apply for residency in affordable housing had the agency not violated this section.
(ic)A housing organization, as that term is defined in Section 65589.5.
(id)A beneficially interested person or entity.
(ie)The Department of Housing and Community Development.
(V)A penalty assessed pursuant to this subparagraph shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(VI)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(vi)For purposes of this subparagraph, the following definitions apply:
(I)Sectional planning area means an area composed of identifiable planning units, within which common services and facilities, a strong internal unity, and an integrated pattern of land use, circulation, and townscape planning are readily achievable.
(II)Sectional planning area document means a document or plan that sets forth, at minimum, a site utilization plan of the sectional planning area and development standards for each land use area and designation.
(vii)This subparagraph shall become inoperative on January 1, 2034.
(Q)Land that is owned by a California public-use airport on which residential uses are prohibited pursuant to Federal Aviation Administration Order 5190.6B, Airport Compliance Program, Chapter 20 -- Compatible Land Use and Airspace Protection.
(S)(i) For local agencies whose primary mission or purpose is to supply the public with a transportation system, surplus land that is developed for commercial, or industrial uses or activities, including nongovernmental retail, entertainment, or office development or for the sole purpose of investment or generation of revenue, if the agency meets all of the following conditions:
(I)The agency has an adopted land use plan or policy that designates at least 50 percent of the of the gross acreage covered by the adopted land use plan or policy for residential purposes. The adopted land use plan or policy shall also require the development of at least 300 residential units, or at least 10 residential units per gross acre, averaged across all land covered by the land use plan or policy, whichever is greater.
(II)The agency has an adopted land use plan or policy that requires at least 25 percent of all residential units to be developed on the parcels covered by the adopted land use plan or policy made available to lower income households, as defined in Section 50079 of the Health and Safety Code, at an affordable sales price or rented at an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and land use for ownership housing. These terms shall be included in the land use plan or policy and dictate that they will be contained in a covenant or restriction recorded against the surplus land at the time of disposition that shall run with the land and be enforceable against any owner or lessee who violates the covenant or restriction and each successor in interest who continues the violation.
(III)Land disposed of for residential purposes shall issue a competitive request for proposals subject to the local agencys open, competitive solicitation process or put out to open, competitive bid by the local agency, provided that all entities identified in subdivision (a) of Section 54222 are invited to participate.
(IV)Prior to entering into an agreement to dispose of a parcel for non-residential development on land designated for the purposes authorized pursuant to this subparagraph in an agencys adopted land use plan or policy, the agency, since January 1, 2020, must have entered into an agreement to dispose of a minimum of 25 percent of the land designated for affordable housing pursuant to subclause (II).
(ii)The agency may exempt at one time all parcels covered by the adopted land use plan or policy pursuant to this subparagraph.
(2)Notwithstanding paragraph (1), a written notice of the availability of surplus land for open-space purposes shall be sent to the entities described in subdivision (b) of Section 54222 before disposing of the surplus land, provided the land does not meet the criteria in subparagraph (H) of paragraph (1), if the land is any of the following:
(A)Within a coastal zone.
(B)Adjacent to a historical unit of the State Parks System.
(C)Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places.
(D)Within the Lake Tahoe region as defined in Section 66905.5.
(g)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.
SEC. 1.5.Section 54221 of the Government Code, as amended by Section 3 of Chapter 40 of the Statutes of 2023, is amended to read:54221.As used in this article, the following definitions shall apply:
(a)(1)Local agency means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.
(2)The Legislature finds and declares that the term district as used in this article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law.
(b)(1)Surplus land means land owned in fee simple by any local agency for which the local agencys governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agencys use. Land shall be declared either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures. A local agency, on an annual basis, may declare multiple parcels as surplus land or exempt surplus land.
(2)Surplus land includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.
(3)Nothing in this article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with Section 54226.
(4)Notwithstanding paragraph (1), a local agency is not required to make a declaration at a public meeting for land that is exempt surplus land pursuant to subparagraph (A), (B), (E), (K), (L), or (Q) of paragraph (1) of subdivision (f) if the local agency identifies the land in a notice that is published and available for public comment, including notice to the entities identified in subdivision (a) of Section 54222, at least 30 days before the exemption takes effect.
(c)(1)Except as provided in paragraph (2), agencys use shall include, but not be limited to, land that is being used, or is planned to be used pursuant to a written plan adopted by the local agencys governing board, for agency work or operations, including, but not limited to, utility sites, property owned by a port that is used to support logistics uses, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, sites for broadband equipment or wireless facilities, and buffer sites near sensitive governmental uses, including, but not limited to, waste disposal sites, and wastewater treatment plants. Agencys use by a local agency that is a district shall also include land disposed for uses described in subparagraph (B) of paragraph (2).
(2)(A)Agencys use shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agencys use.
(B)In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, agencys use may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agencys governing body takes action in a public meeting declaring that the use of the site will do one of the following:
(i)Directly further the express purpose of agency work or operations.
(ii)Be expressly authorized by a statute governing the local agency, provided the district complies with Section 54233.5 if applicable.
(d)(1) Dispose means either of the following:
(A)The sale of the surplus land.
(B)The entering of a lease for surplus land, which is for a term longer than 15 years, inclusive of any extension or renewal options included in the terms of the initial lease, entered into on or after January 1, 2024.
(2)Dispose shall not mean either of the following:
(A)The entering of a lease for surplus land, which is for a term of 15 years or less, inclusive of any extension or renewal options included in the terms of the initial lease.
(B)The entering of a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease.
(e)Open-space purposes means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources.
(f)(1)Except as provided in paragraph (2), exempt surplus land means any of the following:
(A)Surplus land that is transferred pursuant to Section 25539.4 or 37364.
(B)Surplus land that is less than one-half acre in area and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes.
(C)Surplus land that a local agency is exchanging for another property necessary for the agencys use. Property may include easements necessary for the agencys use.
(D)Surplus land that a local agency is transferring to another local, state, or federal agency, or to a third-party intermediary for future dedication for the receiving agencys use, or to a federally recognized California Indian tribe. If the surplus land is transferred to a third-party intermediary, the receiving agencys use must be contained in a legally binding agreement at the time of transfer to the third-party intermediary.
(E)Surplus land that is a former street, right of way, or easement, and is conveyed to an owner of an adjacent property.
(F)(i)Surplus land that is to be developed for a housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located.
(ii)The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(G)(i)Surplus land that is subject to a local agencys open, competitive solicitation or that is put to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process, for a housing or a mixed-use development that is more than one acre and less than 10 acres in area, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined, that includes not less than 300 residential units, and that restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(ii)The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(H)(i)Surplus land totaling 10 or more acres, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute. That surplus land shall be subject to a local agencys open, competitive solicitation process or put out to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process for a housing or mixed-use development.
(ii)The aggregate development shall include the greater of the following:
(I)Not less than three hundred residential units.
(II)A number of residential units equal to 10 times the number of acres of the surplus land or 10,000 residential units, whichever is less.
(iii)At least 25 percent of the residential units shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent pursuant to Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(iv)If nonresidential development is included in the development pursuant to this subparagraph, at least 25 percent of the total planned units affordable to lower income households shall be made available for lease or sale and permitted for use and occupancy before or at the same time with every 25 percent of nonresidential development made available for lease or sale and permitted for use and occupancy.
(v)A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph. A local agency shall only dispose of land pursuant to this subparagraph through a disposition and development agreement that includes an indemnification clause that provides that if an action occurs after disposition violates this subparagraph, the person or entity that acquired the property shall be liable for the penalties.
(vi)The requirements of clauses (i) to (v), inclusive, shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(I)A mixed-use development, which may include more than one publicly owned parcel, that meets all of the following conditions:
(i)The development restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(ii)At least 50 percent of the square footage of the new construction associated with the development is designated for residential use.
(iii)The development is not located in an urbanized area, as defined in Section 21094.5 of the Public Resources Code.
(J)(i)Surplus land that is subject to a valid legal restriction that is not imposed by the local agency and that makes housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. A declaration of exemption pursuant to this subparagraph shall be supported by documentary evidence establishing the valid legal restriction. For the purposes of this section, documentary evidence includes, but is not limited to, a contract, agreement, deed restriction, statute, regulation or other writing that documents the valid legal restriction.
(ii)Valid legal restrictions include, but are not limited to, all of the following:
(I)Existing constraints under ownership rights or contractual rights or obligations that prevent the use of the property for housing, if the rights or obligations were agreed to prior to September 30, 2019.
(II)Conservation or other easements or encumbrances that prevent housing development.
(III)Existing leases, or other contractual obligations or restrictions, if the terms were agreed to prior to September 30, 2019.
(IV)Restrictions imposed by the source of funding that a local agency used to purchase a property, provided that both of the following requirements are met:
(ia)The restrictions limit the use of those funds to purposes other than housing.
(ib)The proposed disposal of surplus land meets a use consistent with that purpose.
(ii)Valid legal restrictions that would make housing prohibited do not include either of the following:
(I)An existing nonresidential land use designation on the surplus land.
(II)Covenants, restrictions, or other conditions on the property rendered void and unenforceable by any other law, including, but not limited to, Section 714.6 of the Civil Code.
(iii)Feasible methods to mitigate or avoid a valid legal restriction on the site do not include a requirement that the local agency acquire additional property rights or property interests belonging to third parties.
(K)Surplus land that was granted by the state in trust to a local agency or that was acquired by the local agency for trust purposes by purchase or exchange, and for which disposal of the land is authorized or required subject to conditions established by statute.
(L)Land that is subject to either of the following, unless compliance with this article is expressly required:
(i)Section 17388, 17515, 17536, 81192, 81397, 81399, 81420, or 81422 of the Education Code.
(ii)Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code.
(M)Surplus land that is a former military base that was conveyed by the federal government to a local agency, and is subject to Article 8 (commencing with Section 33492.125) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, provided that all of the following conditions are met:
(i) The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses, and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base.
(ii)The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least 25 percent of the initial 1,400 residential units developed shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(iii)Before disposition of the surplus land, the agency adopts written findings that the land is exempt surplus land pursuant to this subparagraph.
(iv)Before disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agencys project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient.
(v)The agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph or the settlement agreement.
(N)Real property that is used by a district for an agencys use expressly authorized in subdivision (c).
(O)Land that has been transferred before June 30, 2019, by the state to a local agency pursuant to Section 32667 of the Streets and Highways Code and has a minimum planned residential density of at least 100 dwelling units per acre, and includes 100 or more residential units that are restricted to persons and families of low or moderate income, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands. For purposes of this subparagraph, not more than 20 percent of the affordable units may be restricted to persons and families of moderate income and at least 80 percent of the affordable units must be restricted to lower income households as defined in Section 50079.5 of the Health and Safety Code.
(P)(i)Land that meets the following conditions:
(I)Land that is subject to a sectional planning area document that meets both of the following:
(ia)The sectional planning area was adopted prior to January 1, 2019.
(ib)The sectional planning area document is consistent with county and city general plans applicable to the land.
(II)The land identified in the adopted sectional planning area document was dedicated prior to January 1, 2019
(III)On January 1, 2019, the parcels on the land met at least one of the following conditions:
(ia)The land was subject to an irrevocable offer of dedication of fee interest requiring the land to be used for a specified purpose.
(ib)The land was acquired through a land exchange subject to a land offer agreement that grants the lands original owner the right to repurchase the land acquired by the local agency pursuant to the agreement if the land will not be developed in a manner consistent with the agreement.
(ic)The land was subject to a grant deed specifying that the property shall be used for educational uses and limiting other types of uses allowed on the property.
(IV)At least 25 percent of the units are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable rent, as defined by Section 50053 of the Health and Safety Code, or an affordable housing cost, as defined by Section 50052.5 of the Health and Safety Code, and subject to a recorded deed restriction for a period of 55 years for rental units and land use for owner-occupied units.
(V)The land is developed at an average density of at least 10 units per acre, calculated with respect to the entire sectional planning area.
(VI)No more than 25 percent of the nonresidential square footage identified in the sectional planning area document receives its first certificate of occupancy before at least 25 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(VII)No more than 50 percent of the nonresidential square footage identified in the sectional planning area document receives its first certificate of occupancy before at least 50 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(VIII)No more than 75 percent of the nonresidential square footage identified in the sectional planning area document shall receive its first certificate of occupancy before at least 75 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(ii)The local agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development, including the total square footage of the residential and nonresidential development, the number of residential units that have been permitted, and what percentage of those residential units are restricted for persons and families of low or moderate income, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(iii)The Department of Housing and Community Development may request additional information from the agency regarding land disposed of pursuant to this subparagraph.
(iv)At least 30 days prior to disposing of land declared exempt surplus land, a local agency shall provide the Department of Housing and Community Development a written notification of its declaration and findings in a form prescribed by the Department of Housing and Community Development. Within 30 days of receipt of the written notification and findings, the department shall notify the local agency if the department has determined that the local agency is in violation of this article. A local agency that fails to submit the written notification and findings shall be liable for a civil penalty pursuant to this subparagraph. A local agency shall not be liable for the civil penalty if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the written notification and findings. Once the department determines that the declarations and findings comply with subclauses (I) to (IV), inclusive, of clause (i), the local agency may proceed with disposal of land pursuant to this subparagraph. This clause is declaratory of, and not a change in, existing law.
(v)If the local agency disposes of land in violation of this subparagraph, the local agency shall be liable for a civil penalty calculated as follows:
(I)For a first violation, 30 percent of the greater of the final sale price or the fair market value of the land at the time of disposition.
(II)For a second or subsequent violation, 50 percent of the greater of the final sale price or the fair market value of the land at the time of disposition.
(III)For purposes of this subparagraph, fair market value shall be determined by an independent appraisal of the land.
(IV)An action to enforce this subparagraph may be brought by any of the following:
(ia)An entity identified in subdivisions (a) to (e), inclusive, of Section 54222.
(ib)A person who would have been eligible to apply for residency in affordable housing had the agency not violated this section.
(ic)A housing organization, as that term is defined in Section 65589.5.
(id)A beneficially interested person or entity.
(ie)The Department of Housing and Community Development.
(V)A penalty assessed pursuant to this subparagraph shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(VI)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(vi)For purposes of this subparagraph, the following definitions apply:
(I)Sectional planning area means an area composed of identifiable planning units, within which common services and facilities, a strong internal unity, and an integrated pattern of land use, circulation, and townscape planning are readily achievable.
(II)Sectional planning area document means a document or plan that sets forth, at minimum, a site utilization plan of the sectional planning area and development standards for each land use area and designation.
(vii)This subparagraph shall become inoperative on January 1, 2034.
(Q)Land that is owned by a California public-use airport on which residential uses are prohibited pursuant to Federal Aviation Administration Order 5190.6B, Airport Compliance Program, Chapter 20 -- Compatible Land Use and Airspace Protection.
(R)Land that is transferred to a community land trust, and all of the following conditions are met:
(i)The property is being or will be developed or rehabilitated as any of the following:
(I)An owner-occupied single-family dwelling.
(II)An owner-occupied unit in a multifamily dwelling.
(III)A member-occupied unit in a limited equity housing cooperative.
(IV)A rental housing development.
(ii)Improvements on the property are or will be available for use and ownership or for rent by qualified persons, as defined in paragraph (6) of subdivision (c) of Section 214.18 of the Revenue and Taxation Code.
(iii)(I)A deed restriction or other instrument, requiring a contract or contracts serving as an enforceable restriction on the sale or resale value of owner-occupied units or on the affordability of rental units is recorded on or before the lien date following the acquisition of the property by the community land trust.
(II)For the purpose of this clause, the following definitions apply:
(ia)A contract or contracts serving as an enforceable restriction on the sale or resale value of owner-occupied units means a contract described in paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.
(ib)A contract or contracts serving as an enforceable restriction on the affordability of rental units means an enforceable and verifiable agreement with a public agency, a recorded deed restriction, or other legal document described in subparagraph (A) of paragraph (2) of subdivision (g) of Section 214 of the Revenue and Taxation Code.
(iv)A copy of the deed restriction or other instrument shall be provided to the assessor.
(S)(i)For local agencies whose primary mission or purpose is to supply the public with a transportation system, surplus land that is developed for commercial, or industrial uses or activities, including nongovernmental retail, entertainment, or office development or for the sole purpose of investment or generation of revenue, if the agency meets all of the following conditions:
(I)The agency has an adopted land use plan or policy that designates at least 50 percent of the of the gross acreage covered by the adopted land use plan or policy for residential purposes. The adopted land use plan or policy shall also require the development of at least 300 residential units, or at least 10 residential units per gross acre, averaged across all land covered by the land use plan or policy, whichever is greater.
(II)The agency has an adopted land use plan or policy that requires at least 25 percent of all residential units to be developed on the parcels covered by the adopted land use plan or policy made available to lower income households, as defined in Section 50079 of the Health and Safety Code, at an affordable sales price or rented at an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing. These terms shall be included in the land use plan or policy and dictate that they will be contained in a covenant or restriction recorded against the surplus land at the time of disposition that shall run with the land and be enforceable against any owner or lessee who violates the covenant or restriction and each successor in interest who continues the violation.
(III)Land disposed of for residential purposes shall issue a competitive request for proposals subject to the local agencys open, competitive solicitation process or put out to open, competitive bid by the local agency, provided that all entities identified in subdivision (a) of Section 54222 are invited to participate.
(IV)Prior to entering into an agreement to dispose of a parcel for non-residential development on land designated for the purposes authorized pursuant to this subparagraph in an agencys adopted land use plan or policy, the agency, since January 1, 2020, must have entered into an agreement to dispose of a minimum of 25 percent of the land designated for affordable housing pursuant to subclause (II).
(ii)The agency may exempt at one time all parcels covered by the adopted land use plan or policy pursuant to this subparagraph.
(2)Notwithstanding paragraph (1), a written notice of the availability of surplus land for open-space purposes shall be sent to the entities described in subdivision (b) of Section 54222 before disposing of the surplus land, provided the land does not meet the criteria in subparagraph (H) of paragraph (1), if the land is any of the following:
(A)Within a coastal zone.
(B)Adjacent to a historical unit of the State Parks System.
(C)Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places.
(D)Within the Lake Tahoe region as defined in Section 66905.5.
(g)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.
SEC. 2.Section 54221 of the Government Code, as added by Section 4 of Chapter 40 of the Statutes of 2023, is repealed.SEC. 3.Section 54222 of the Government Code is amended to read:54222.Except as provided in Division 23 (commencing with Section 33000) of the Public Resources Code, any local agency disposing of surplus land, declared pursuant to subdivision (b) of Section 54221.5, shall send, before disposing of that property or participating in negotiations to dispose of that property with a prospective transferee, a written notice of availability of the property to all of the following:
(a)(1)A written notice of availability for developing low- and moderate-income housing shall be sent to any local public entity, as defined in Section 50079 of the Health and Safety Code, that has jurisdiction where the surplus land is located. Housing sponsors, as defined by Section 50074 of the Health and Safety Code, that have notified the Department of Housing and Community Development of their interest in surplus land shall be sent a notice of availability for the purpose of developing low- and moderate-income housing. All notices shall be sent by electronic mail, or by certified mail, and shall include the location and a description of the property.
(2)The Department of Housing and Community Development shall maintain on its internet website an up-to-date listing of, and a link to, all notices of availability throughout the state and a listing of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.
(b)A written notice of availability for open-space purposes shall be sent:
(1)To any park or recreation department of any city within which the surplus land is located.
(2)To any park or recreation department of the county within which the surplus land is located.
(3)To any regional park authority having jurisdiction within the area in which the surplus land is located.
(4)To the State Resources Agency or any agency that may succeed to its powers.
(c)A written notice of availability of land suitable for school facilities construction or use by a school district for open-space purposes shall be sent to any school district that has jurisdiction where the surplus land is located.
(d)A written notice of availability for developing property located within an infill opportunity zone designated pursuant to Section 65088.4 or within an area covered by a transit village plan adopted pursuant to the Transit Village Development Planning Act of 1994 (Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7) shall be sent to any county, city, city and county, successor agency to a former redevelopment agency, public transportation agency, or housing authority within whose jurisdiction the surplus land is located.
(e)The entity desiring to purchase or lease the surplus land for any of the purposes authorized by this section shall notify in writing the disposing agency of its interest in purchasing or leasing the land within 60 days after the agencys notice of availability is sent via certified mail or provided via electronic mail.
(f) For the purposes of this section, participating in negotiations does not include the any of the following:
(1)The commissioning of appraisals, due diligence prior to disposition, discussions with brokers or real estate agents not representing a potential buyer, or other studies to determine value or best use of land, issuance of a request for qualifications, development of marketing materials, or discussions conducted exclusively among local agency employees and elected officials.
(2)Issuing a request for proposals or request for qualifications to the entities in subdivision (a) of Section 54222 for the purposes of complying with subparagraphs (A), (F), (G), (H), or (I) of paragraph (1) of subdivision (f) of Section 54221.
(3)Negotiating a lease, exclusive negotiating agreement, or option agreement for the purposes of complying with subparagraphs (A), (F), (G), (H), or (I) of paragraph (1) of subdivision (f) of Section 54221.
(4)Negotiating with a developer to determine if the local agency can satisfy the disposal exemption requirements described in paragraph (2) of subdivision (d) of Section 54221.
SEC. 4.Section 54222.5 of the Government Code is amended to read:54222.5.An entity proposing to use the surplus land for developing low- and moderate-income housing shall agree to make available not less than 25 percent of the total number of units developed on the parcels at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or affordable rent, as defined in Section 50053 of the Health and Safety Code, to lower income households, as defined in Section 50079.5 of the Health and Safety Code. Rental units shall remain affordable to, and occupied by, lower income households for a minimum of 55 years for rental housing, 45 years for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with paragraph (2) of subdivision (c) of Section 65915. These requirements shall be contained in a covenant or restriction recorded against the surplus land at the time of sale, that shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:
(a)The local agency that disposed of the surplus land.
(b)A resident of a unit subject to this section.
(c)A residents association with members who reside in units subject to this section.
(d)A former resident of a unit subject to this section who last resided in that unit.
(e)An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:
(1)Is of low or moderate income, pursuant to Section 50093 of the Health and Safety Code.
(2)Is able and willing to occupy that particular unit.
(3)Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.
(f)A person on an affordable housing waiting list who is of low or moderate income, pursuant to Section 50093 of the Health and Safety Code, and who is able and willing to occupy a unit subject to this section.
SEC. 5.Section 54223 of the Government Code is amended to read:54223.(a)After the disposing agency has received a notice of interest from the entity desiring to purchase or lease the surplus land on terms that comply with this article, the disposing agency and the entity shall enter into good faith negotiations to determine a mutually satisfactory sales price and terms or lease terms. If the price or terms cannot be agreed upon after a good faith negotiation period of not less than 90 days, the local agency may dispose of the surplus land without further regard to this article, except that Section 54233 shall apply.
(b)Residential use shall be deemed an acceptable use for the surplus land for the purposes of good faith negotiations with a local agency conducted pursuant to this article. Nothing in this subdivision shall restrict a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land. Except as provided in subdivision (c), terms agreed to pursuant to the negotiations shall not do any of the following:
(1)Disallow residential use of the site as a condition of the disposal.
(2)Reduce the allowable number of residential units or the maximum lot coverage below what may be allowed by zoning or general plan requirements.
(3)Require as a condition of disposal, any design standards or architectural requirements that would have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, other than the minimum standards required by general plan, zoning, and subdivision standards and criteria.
(c)Terms agreed to pursuant to the negotiations required by subdivision (a) may include limitations on residential use or density if, without the limitations, the residential use or density would have a specific, adverse impact, supported by written findings, upon the public health or safety or upon the operation or facilities of a local agency, and there is no feasible method to satisfactorily mitigate the impact.
SEC. 6.Section 54224 of the Government Code is amended to read:54224.Nothing in this article shall preclude a local agency that purchases surplus land from a disposing agency pursuant to this article from reconveying the surplus land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing as authorized under other provisions of law.
SEC. 7.Section 54225 of the Government Code is amended to read:54225.Any local agency disposing of surplus land to an entity described in Section 54222 that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land. The payment period for surplus land disposed of for housing for persons and families of low and moderate income may exceed 20 years, but the payment period shall not exceed the term that the land is required to be used for low- or moderate-income housing.
SEC. 8.Section 54226 of the Government Code is amended to read:54226.(a)This article shall not be interpreted to limit the power of any local agency to sell or lease surplus land at fair market value or at less than fair market value, and any sale or lease at or less than fair market value consistent with this article shall not be construed as inconsistent with an agencys purpose.
(b)This article shall not prevent a local agency from obtaining fair market value for the disposition of surplus land consistent with this section.
(c)This article shall not be interpreted to limit a local agencys authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land.
(d)This article shall not be interpreted to require a local agency to dispose of land that is determined to be surplus.
(e)No provision of this article shall be applied when it conflicts with any other provision of statutory law.
SEC. 9.Section 54227 of the Government Code is amended to read:54227.(a)In the event that any local agency disposing of surplus land receives a notice of interest to purchase or lease that land from more than one of the entities to which notice of availability was given pursuant to this article, the local agency shall give first priority to the entity or entities that agree to use the site for housing that meets the requirements of Section 54222.5. If the local agency receives offers from more than one entity that agrees to meet the requirements of Section 54222.5, then the local agency shall give priority to the entity that proposes to provide the greatest number of units that meet the requirements of Section 54222.5. In the event that more than one entity proposes the same number of units that meet the requirements of Section 54222.5, priority shall be given to the entity that proposes the deepest average level of affordability for the affordable units. A local agency may negotiate concurrently with all entities that provide notice of interest for the purpose of developing low- and moderate-income housing that meets the requirements of Section 54222.5.
(b)Notwithstanding subdivision (a), first priority shall be given to an entity that agrees to use the site for park or recreational purposes if the land being offered is already being used and will continue to be used for park or recreational purposes, or if the land is designated for park and recreational use in the local general plan and will be developed for that purpose.
SEC. 10.Section 54230 of the Government Code is amended to read:54230.(a)(1)On or before December 31 of each year, each county and each city shall make a central inventory of all surplus land, as defined in subdivision (b) of Section 54221, and all lands in excess of its foreseeable needs, if any, identified pursuant to Section 50569, located in all urbanized areas and urban clusters, as designated by the United States Census Bureau, within the jurisdiction of the county or city that the county or city or any of its departments, agencies, or authorities owns or controls.
(2)(A)Subject to subparagraph (C), each county and each city shall make a description of each parcel described in paragraph (1) and the present use of the parcel a matter of public record and shall report this information to the Department of Housing and Community Development no later than April 1 of each year, beginning April 1, 2021, in a form prescribed by the department, as part of its annual progress report submitted pursuant to paragraph (2) of subdivision (a) of Section 65400.
(B)The information reported pursuant to this paragraph shall include, but not be limited to, the following information with respect to each site:
(i)Street address, or similar location information.
(ii)Assessors parcel number.
(iii)Existing use.
(iv)Whether the site is surplus land or exempt surplus land.
(v)Size in acres.
(C)The Department of Housing and Community Development may, in its discretion, delay implementation of this paragraph until April 1, 2022.
(3)Each county and each city, upon request, shall provide a list of its surplus land and excess surplus land to an individual, limited dividend corporation, housing corporation, or nonprofit corporation without charge.
(b)The Department of Housing and Community Development shall provide the information reported to it by a city or county pursuant to paragraph (2) of subdivision (a) to the Department of General Services for inclusion in a digitized inventory of all state-owned parcels that are in excess of state needs.
(c)The Department of Housing and Community Development may review, adopt, amend, and repeal standards, forms, and definitions in order to implement this section. Any standards, forms, or definitions adopted, amended, or repealed pursuant to this subdivision are hereby exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2).
SEC. 11.Section 54230.5 of the Government Code is amended to read:54230.5.(a)(1)A local agency that disposes of surplus land in violation of this article after receiving a notification from the Department of Housing and Community Development pursuant to subdivision (b) that the local agency is in violation of this article shall be liable for a penalty of 30 percent of the applicable disposition value for a first violation, and 50 percent for any subsequent violation. These penalties shall not apply to violations that do not impact the availability and priority of, or the construction of, housing affordable to lower income households or the ultimate disposition of the land in compliance with this article, such as clerical errors. An entity identified in Section 54222 or a person who would have been eligible to apply for residency in any affordable housing developed or a housing organization as defined in Section 65589.5, or any beneficially interested person or entity may bring an action to enforce this section. A local agency shall have 60 days to cure or correct an alleged violation before an action may be brought to enforce this section, unless the local agency disposes of the surplus land before curing or correcting the alleged violation, or the department deems the alleged violation not to be a violation in less than 60 days.
(2)For the purposes of this section, disposition value means:
(A)In the case of a sale, the greater of the final sale price of the land or the fair market value of the surplus land at the time of sale, as determined by an independent appraisal of the surplus land sold in violation of this article.
(B)In the case of a lease, the discounted net present value of the fair market value of the lease as of the date the lease was entered into, as determined by an independent appraisal of the lease of surplus land in violation of this article.
(3)A penalty assessed pursuant to this subdivision shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(4)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(b)(1)Before agreeing to terms for the disposition of surplus land, a local agency shall provide to the Department of Housing and Community Development a description of the notices of availability sent, and negotiations conducted with any responding entities, in regard to the disposal of the parcel of surplus land and a copy of any restrictions to be recorded against the property pursuant to Section 54222.5, 54233, or 54233.5, whichever is applicable, in a form prescribed by the Department of Housing and Community Development. A local agency may submit this information after it has sent notices of availability required by Section 54222 and concluded negotiations with any responding agencies. A local agency shall not be liable for the penalty imposed by subdivision (a) if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the description.
(2)The Department of Housing and Community Development shall do all of the following:
(A)Make available educational resources and materials that inform each agency of its obligations under this article and that provide guidance on how to comply with its provisions.
(B)Review information submitted pursuant to paragraph (1).
(C)Submit written findings to the local agency within 30 days of receipt of the description required by paragraph (1) from the local agency if the proposed disposal of the land will violate this article.
(D)Review, adopt, amend, or repeal guidelines to establish uniform standards to implement this section. The guidelines adopted pursuant to this subdivision are not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2.
(E)Provide the local agency reasonable time, but not less than 60 days, to respond to the findings before taking any other action authorized by this section.
(3)(A)The local agency shall consider findings made by the Department of Housing and Community Development pursuant to subparagraph (C) of paragraph (2) and shall do one of the following:
(i)Correct any issues identified by the Department of Housing and Community Development.
(ii)Provide written findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings.
(B)If the local agency does not correct issues identified by the Department of Housing and Community Development, does not provide findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings, or if the Department of Housing and Community Development finds that the local agencys findings are deficient in addressing the issues identified by the Department of Housing and Community Development, the Department of Housing and Community Development shall notify the local agency, and may notify the Attorney General, that the local agency is in violation of this article.
(c)The Department of Housing and Community Development shall implement the changes in this section made by the act adding this subdivision commencing on January 1, 2021.
(d)Notwithstanding subdivision (c), this section shall not be construed to limit any other remedies authorized under law to enforce this article including public records act requests pursuant to Division 10 (commencing with Section 7920.000) of Title 1.
SEC. 12.Section 54234 of the Government Code is amended to read:54234.(a)(1)If a local agency, as of September 30, 2019, has entered into an exclusive negotiating agreement or legally binding agreement to dispose of property, the provisions of this article as it existed on December 31, 2019, shall apply, without regard to the changes made to this article by Chapter 664 of the Statutes of 2019, and all subsequent amendments to this article, to the disposition of the property to the party that had entered into such agreement or its successors or assigns, provided the disposition is completed by December 31, 2027.
(2)If a local agency, as of September 30, 2019, has entered into an exclusive negotiating agreement or legally binding agreement to dispose of property related to the Metro North Hollywood Joint Development Project, the provisions of this article as it existed on December 31, 2019, shall apply, without regard to the changes made to this article by Chapter 664 of the Statutes of 2019, and all subsequent amendments to this article, to the disposition of the property to the party that had entered into such agreement or its successors or assigns, provided the disposition is completed not later than December 31, 2027.
(3)If a local agency, as of September 30, 2019, has issued a competitive request for proposals for the development of property that includes at least 100 residential units and at least 25 percent of the total residential units are restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable housing cost or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing, the provisions of this article as it existed on December 31, 2019, shall apply, without regard to the changes made to this article by Chapter 664 of the Statutes of 2019, and all subsequent amendments to this article, to the disposition of the property to the party that participated in the competitive request for proposals process, or the partys successors or assigns, provided a disposition and development agreement for the property is entered into not later than December 31, 2027. A joint development involving multiple parcels shall meet the requirements of this paragraph so long as there was a single competitive request for proposals process and the joint development otherwise meets all the requirements listed in this paragraph. A disposition and development agreement means an agreement between the developer and the local agency that binds the developer to construct a specific development and the local agency to dispose of the property if permits and other entitlements for the project are obtained. This paragraph shall not apply to land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code, or that has been designated in a long-range property management plan pursuant to Section 34191.5 of the Health and Safety Code. If no disposition and development agreement is entered into before December 31, 2027, then future negotiations for and disposition of the property shall be subject to the provisions of this article.
(2)The dates specified in paragraphs (1) to (3), inclusive, by which the disposition of property must be completed shall be extended if the disposition of property, the local agencys right or ability to dispose of the property, or a development project for which the property is proposed to be transferred, is the subject of judicial challenge, by petition for writ of mandate, complaint for declaratory relief or otherwise, to the date that is six months following the final conclusion of such litigation.
(b)(1)With respect to land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code, or that has been designated in a long-range property management plan pursuant to Section 34191.5 of the Health and Safety Code, either for sale or retained for future development, this article as it existed on December 31, 2019, without regard to the changes made to this article by Chapter 664 of the Statutes of 2019, and all subsequent amendments to this article, which take effect on January 1, 2020, shall apply to the disposition of that property if both of the following apply:
(A)An exclusive negotiating agreement or legally binding agreement for disposition was entered into not later than December 31, 2020.
(B)The disposition is completed not later than December 31, 2027.
(2)If land described in paragraph (1) is the subject of litigation, including, but not limited to, litigation challenging the disposition of such property, the right or ability to dispose of the property, or a development project for which such property is proposed to be transferred, the dates specified in paragraph (1) shall be extended to the date that is six months following the final conclusion of such litigation.
(c)Nothing in this section shall authorize or excuse any violation of the provisions of this article as it existed on December 31, 2019, in the disposition of any property to which such provisions apply pursuant to subdivision (a) or (b).
(d)If a local agency terminated an exclusive negotiating agreement or legally binding agreement to dispose of property pursuant to an earlier, superseded version of subdivision (a) or (b) of this section due to the lapse of a statutory deadline for completing the disposition of property the local agency may, in its sole reasonable discretion, elect whether to ask the party to the terminated exclusive negotiating agreement or legally binding agreement to dispose of property to consider reviving the terminated agreement. If the local agency and other party fully execute an instrument reviving the terminated agreement before January 1, 2024, on substantially the same terms and conditions as the terminated agreement, the revived agreement shall be subject to subdivision (a) or (b), as applicable, of this section.
SEC. 13.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 14.Section 1.5 of this bill incorporates amendments to Section 54221 of the Government Code proposed by both this bill and Senate Bill 747. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 54221 of the Government Code, and (3) this bill is enacted after Senate Bill 747, in which case Section 1 of this bill shall not become operative.
SEC. 15.This act shall become operative only if Senate Bill 747 of the 202324 Regular Session is enacted and becomes effective.
As used in this article, the following definitions shall apply:
(a)(1)Local agency means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.
(2)The Legislature finds and declares that the term district as used in this article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law.
(b)(1)Surplus land means land owned in fee simple by any local agency for which the local agencys governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agencys use. Land shall be declared either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures. A local agency, on an annual basis, may declare multiple parcels as surplus land or exempt surplus land.
(2)Surplus land includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.
(3)Nothing in this article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with Section 54226.
(4)Notwithstanding paragraph (1), a local agency is not required to make a declaration at a public meeting for land that is exempt surplus land pursuant to subparagraph (A), (B), (E), (K), (L), or (Q) of paragraph (1) of subdivision (f) if the local agency identifies the land in a notice that is published and available for public comment, including notice to the entities identified in subdivision (a) of Section 54222, at least 30 days before the exemption takes effect.
(c)(1)Except as provided in paragraph (2), agencys use shall include, but not be limited to, land that is being used, is planned to be used pursuant to a written plan adopted by the local agencys governing board for, or is disposed to support pursuant to subparagraph (B) of paragraph (2) agency work or operations, including, but not limited to, utility sites, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, and buffer sites near sensitive governmental uses, including, but not limited to, wastewater treatment plants.
(2)(A)Agencys use shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agencys use.
(B)In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, agencys use may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agencys governing body takes action in a public meeting declaring that the use of the site will do one of the following:
(i)Directly further the express purpose of agency work or operations.
(ii)Be expressly authorized by a statute governing the local agency, provided the district complies with Section 54233.5 if applicable.
(d)(1) Dispose means either of the following:
(A)The sale of the surplus land.
(B)The entering of a lease for surplus land, which is for a term longer than 15 years, inclusive of any extension or renewal options included in the terms of the initial lease, entered into on or after January 1, 2024.
(2)Dispose shall not mean either of the following:
(A)The entering of a lease for surplus land, which is for a term of 15 years or less, inclusive of any extension or renewal options included in the terms of the initial lease.
(B)The entering of a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease.
(e)Open-space purposes means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources.
(f)(1)Except as provided in paragraph (2), exempt surplus land means any of the following:
(A)Surplus land that is transferred pursuant to Section 25539.4 or 37364.
(B)Surplus land that is (i) less than 5,000 square feet in area, (ii) less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet in area, whichever is less, or (iii) has no record access and is less than 10,000 square feet in area; and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. If the surplus land is not sold to an owner of contiguous land, it is not considered exempt surplus land and is subject to this article.
(C)Surplus land that a local agency is exchanging for another property necessary for the agencys use. Property may include easements necessary for the agencys use.
(D)Surplus land that a local agency is transferring to another local, state, or federal agency for the agencys use, or to a federally recognized California Indian tribe.
(E)Surplus land that is a former street, right of way, or easement, and is conveyed to an owner of an adjacent property.
(F)(i)Surplus land that is to be developed for a housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, and land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located.
(ii)The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(G)(i)Surplus land that is subject to a local agencys open, competitive solicitation or that is put to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process, for a housing or a mixed-use development that is more than one acre and less than 10 acres in area, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined, that includes not less than 300 residential units, and that restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, and land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(ii)The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(H)(i) Surplus land totaling 10 or more acres, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute. That surplus land shall be subject to a local agencys open, competitive solicitation process or put out to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process for a housing or mixed-use development.
(ii)The aggregate development shall include the greater of the following:
(I)Not less than three hundred residential units.
(II)A number of residential units equal to 10 times the number of acres of the surplus land or 10,000 residential units, whichever is less.
(iii)At least 25 percent of the residential units shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent pursuant to Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(iv)If nonresidential development is included in the development pursuant to this subparagraph, at least 25 percent of the total planned units affordable to lower income households shall be made available for lease or sale and permitted for use and occupancy before or at the same time with every 25 percent of nonresidential development made available for lease or sale and permitted for use and occupancy.
(v)A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph. A local agency shall only dispose of land pursuant to this subparagraph through a disposition and development agreement that includes an indemnification clause that provides that if an action occurs after disposition violates this subparagraph, the person or entity that acquired the property shall be liable for the penalties.
(vi)The requirements of clauses (i) to (v), inclusive, shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(I)A mixed-use development, which may include more than one publicly owned parcel, that meets all of the following conditions:
(i)The development restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(ii)At least 50 percent of the square footage of the new construction associated with the development is designated for residential use.
(iii)The development is not located in an urbanized area, as defined in Section 21094.5 of the Public Resources Code.
(J)Surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. An existing nonresidential land use designation on the surplus land is not a legal restriction that would make housing prohibited for purposes of this subparagraph. Nothing in this article limits a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land.
(K)Surplus land that was granted by the state in trust to a local agency or that was acquired by the local agency for trust purposes by purchase or exchange, and for which disposal of the land is authorized or required subject to conditions established by statute.
(L)Land that is subject to either of the following, unless compliance with this article is expressly required:
(i)Section 17388, 17515, 17536, 81192, 81397, 81399, 81420, or 81422 of the Education Code.
(ii)Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code.
(M)Surplus land that is a former military base that was conveyed by the federal government to a local agency, and is subject to Article 8 (commencing with Section 33492.125) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, provided that all of the following conditions are met:
(i) The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses, and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base.
(ii)The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least 25 percent of the initial 1,400 residential units developed shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(iii)Before disposition of the surplus land, the agency adopts written findings that the land is exempt surplus land pursuant to this subparagraph.
(iv)Before disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agencys project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient.
(v)The agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph or the settlement agreement.
(N)Real property that is used by a district for an agencys use expressly authorized in subdivision (c).
(O)Land that has been transferred before June 30, 2019, by the state to a local agency pursuant to Section 32667 of the Streets and Highways Code and has a minimum planned residential density of at least 100 dwelling units per acre, and includes 100 or more residential units that are restricted to persons and families of low or moderate income, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands. For purposes of this subparagraph, not more than 20 percent of the affordable units may be restricted to persons and families of moderate income and at least 80 percent of the affordable units must be restricted to lower income households as defined in Section 50079.5 of the Health and Safety Code.
(P)(i)Land that meets the following conditions:
(I)Land that is subject to a sectional planning area document that meets both of the following:
(ia)The sectional planning area was adopted prior to January 1, 2019.
(ib)The sectional planning area document is consistent with county and city general plans applicable to the land.
(II)The land identified in the adopted sectional planning area document was dedicated prior to January 1, 2019
(III)On January 1, 2019, the parcels on the land met at least one of the following conditions:
(ia)The land was subject to an irrevocable offer of dedication of fee interest requiring the land to be used for a specified purpose.
(ib)The land was acquired through a land exchange subject to a land offer agreement that grants the lands original owner the right to repurchase the land acquired by the local agency pursuant to the agreement if the land will not be developed in a manner consistent with the agreement.
(ic)The land was subject to a grant deed specifying that the property shall be used for educational uses and limiting other types of uses allowed on the property.
(IV)At least 25 percent of the units are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable rent, as defined by Section 50053 of the Health and Safety Code, or an affordable housing cost, as defined by Section 50052.5 of the Health and Safety Code, and subject to a recorded deed restriction for a period of 55 years for rental units and land use for owner-occupied units.
(V)The land is developed at an average density of at least 10 units per acre, calculated with respect to the entire sectional planning area.
(VI)No more than 25 percent of the nonresidential square footage identified in the sectional planning area document receives its first certificate of occupancy before at least 25 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(VII)No more than 50 percent of the nonresidential square footage identified in the sectional planning area document receives its first certificate of occupancy before at least 50 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(VIII)No more than 75 percent of the nonresidential square footage identified in the sectional planning area document shall receive its first certificate of occupancy before at least 75 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(ii)The local agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development, including the total square footage of the residential and nonresidential development, the number of residential units that have been permitted, and what percentage of those residential units are restricted for persons and families of low or moderate income, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(iii)The Department of Housing and Community Development may request additional information from the agency regarding land disposed of pursuant to this subparagraph.
(iv)At least 30 days prior to disposing of land declared exempt surplus land, a local agency shall provide the Department of Housing and Community Development a written notification of its declaration and findings in a form prescribed by the Department of Housing and Community Development. Within 30 days of receipt of the written notification and findings, the department shall notify the local agency if the department has determined that the local agency is in violation of this article. A local agency that fails to submit the written notification and findings shall be liable for a civil penalty pursuant to this subparagraph. A local agency shall not be liable for the civil penalty if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the written notification and findings. Once the department determines that the declarations and findings comply with subclauses (I) to (IV), inclusive, of clause (i), the local agency may proceed with disposal of land pursuant to this subparagraph. This clause is declaratory of, and not a change in, existing law.
(v)If the local agency disposes of land in violation of this subparagraph, the local agency shall be liable for a civil penalty calculated as follows:
(I)For a first violation, 30 percent of the greater of the final sale price or the fair market value of the land at the time of disposition.
(II)For a second or subsequent violation, 50 percent of the greater of the final sale price or the fair market value of the land at the time of disposition.
(III)For purposes of this subparagraph, fair market value shall be determined by an independent appraisal of the land.
(IV)An action to enforce this subparagraph may be brought by any of the following:
(ia)An entity identified in subdivisions (a) to (e), inclusive, of Section 54222.
(ib)A person who would have been eligible to apply for residency in affordable housing had the agency not violated this section.
(ic)A housing organization, as that term is defined in Section 65589.5.
(id)A beneficially interested person or entity.
(ie)The Department of Housing and Community Development.
(V)A penalty assessed pursuant to this subparagraph shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(VI)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(vi)For purposes of this subparagraph, the following definitions apply:
(I)Sectional planning area means an area composed of identifiable planning units, within which common services and facilities, a strong internal unity, and an integrated pattern of land use, circulation, and townscape planning are readily achievable.
(II)Sectional planning area document means a document or plan that sets forth, at minimum, a site utilization plan of the sectional planning area and development standards for each land use area and designation.
(vii)This subparagraph shall become inoperative on January 1, 2034.
(Q)Land that is owned by a California public-use airport on which residential uses are prohibited pursuant to Federal Aviation Administration Order 5190.6B, Airport Compliance Program, Chapter 20 -- Compatible Land Use and Airspace Protection.
(S)(i) For local agencies whose primary mission or purpose is to supply the public with a transportation system, surplus land that is developed for commercial, or industrial uses or activities, including nongovernmental retail, entertainment, or office development or for the sole purpose of investment or generation of revenue, if the agency meets all of the following conditions:
(I)The agency has an adopted land use plan or policy that designates at least 50 percent of the of the gross acreage covered by the adopted land use plan or policy for residential purposes. The adopted land use plan or policy shall also require the development of at least 300 residential units, or at least 10 residential units per gross acre, averaged across all land covered by the land use plan or policy, whichever is greater.
(II)The agency has an adopted land use plan or policy that requires at least 25 percent of all residential units to be developed on the parcels covered by the adopted land use plan or policy made available to lower income households, as defined in Section 50079 of the Health and Safety Code, at an affordable sales price or rented at an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and land use for ownership housing. These terms shall be included in the land use plan or policy and dictate that they will be contained in a covenant or restriction recorded against the surplus land at the time of disposition that shall run with the land and be enforceable against any owner or lessee who violates the covenant or restriction and each successor in interest who continues the violation.
(III)Land disposed of for residential purposes shall issue a competitive request for proposals subject to the local agencys open, competitive solicitation process or put out to open, competitive bid by the local agency, provided that all entities identified in subdivision (a) of Section 54222 are invited to participate.
(IV)Prior to entering into an agreement to dispose of a parcel for non-residential development on land designated for the purposes authorized pursuant to this subparagraph in an agencys adopted land use plan or policy, the agency, since January 1, 2020, must have entered into an agreement to dispose of a minimum of 25 percent of the land designated for affordable housing pursuant to subclause (II).
(ii)The agency may exempt at one time all parcels covered by the adopted land use plan or policy pursuant to this subparagraph.
(2)Notwithstanding paragraph (1), a written notice of the availability of surplus land for open-space purposes shall be sent to the entities described in subdivision (b) of Section 54222 before disposing of the surplus land, provided the land does not meet the criteria in subparagraph (H) of paragraph (1), if the land is any of the following:
(A)Within a coastal zone.
(B)Adjacent to a historical unit of the State Parks System.
(C)Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places.
(D)Within the Lake Tahoe region as defined in Section 66905.5.
(g)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.
SEC. 1.5.Section 54221 of the Government Code, as amended by Section 3 of Chapter 40 of the Statutes of 2023, is amended to read:54221.As used in this article, the following definitions shall apply:
(a)(1)Local agency means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.
(2)The Legislature finds and declares that the term district as used in this article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law.
(b)(1)Surplus land means land owned in fee simple by any local agency for which the local agencys governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agencys use. Land shall be declared either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures. A local agency, on an annual basis, may declare multiple parcels as surplus land or exempt surplus land.
(2)Surplus land includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.
(3)Nothing in this article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with Section 54226.
(4)Notwithstanding paragraph (1), a local agency is not required to make a declaration at a public meeting for land that is exempt surplus land pursuant to subparagraph (A), (B), (E), (K), (L), or (Q) of paragraph (1) of subdivision (f) if the local agency identifies the land in a notice that is published and available for public comment, including notice to the entities identified in subdivision (a) of Section 54222, at least 30 days before the exemption takes effect.
(c)(1)Except as provided in paragraph (2), agencys use shall include, but not be limited to, land that is being used, or is planned to be used pursuant to a written plan adopted by the local agencys governing board, for agency work or operations, including, but not limited to, utility sites, property owned by a port that is used to support logistics uses, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, sites for broadband equipment or wireless facilities, and buffer sites near sensitive governmental uses, including, but not limited to, waste disposal sites, and wastewater treatment plants. Agencys use by a local agency that is a district shall also include land disposed for uses described in subparagraph (B) of paragraph (2).
(2)(A)Agencys use shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agencys use.
(B)In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, agencys use may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agencys governing body takes action in a public meeting declaring that the use of the site will do one of the following:
(i)Directly further the express purpose of agency work or operations.
(ii)Be expressly authorized by a statute governing the local agency, provided the district complies with Section 54233.5 if applicable.
(d)(1) Dispose means either of the following:
(A)The sale of the surplus land.
(B)The entering of a lease for surplus land, which is for a term longer than 15 years, inclusive of any extension or renewal options included in the terms of the initial lease, entered into on or after January 1, 2024.
(2)Dispose shall not mean either of the following:
(A)The entering of a lease for surplus land, which is for a term of 15 years or less, inclusive of any extension or renewal options included in the terms of the initial lease.
(B)The entering of a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease.
(e)Open-space purposes means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources.
(f)(1)Except as provided in paragraph (2), exempt surplus land means any of the following:
(A)Surplus land that is transferred pursuant to Section 25539.4 or 37364.
(B)Surplus land that is less than one-half acre in area and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes.
(C)Surplus land that a local agency is exchanging for another property necessary for the agencys use. Property may include easements necessary for the agencys use.
(D)Surplus land that a local agency is transferring to another local, state, or federal agency, or to a third-party intermediary for future dedication for the receiving agencys use, or to a federally recognized California Indian tribe. If the surplus land is transferred to a third-party intermediary, the receiving agencys use must be contained in a legally binding agreement at the time of transfer to the third-party intermediary.
(E)Surplus land that is a former street, right of way, or easement, and is conveyed to an owner of an adjacent property.
(F)(i)Surplus land that is to be developed for a housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located.
(ii)The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(G)(i)Surplus land that is subject to a local agencys open, competitive solicitation or that is put to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process, for a housing or a mixed-use development that is more than one acre and less than 10 acres in area, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined, that includes not less than 300 residential units, and that restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(ii)The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(H)(i)Surplus land totaling 10 or more acres, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute. That surplus land shall be subject to a local agencys open, competitive solicitation process or put out to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process for a housing or mixed-use development.
(ii)The aggregate development shall include the greater of the following:
(I)Not less than three hundred residential units.
(II)A number of residential units equal to 10 times the number of acres of the surplus land or 10,000 residential units, whichever is less.
(iii)At least 25 percent of the residential units shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent pursuant to Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(iv)If nonresidential development is included in the development pursuant to this subparagraph, at least 25 percent of the total planned units affordable to lower income households shall be made available for lease or sale and permitted for use and occupancy before or at the same time with every 25 percent of nonresidential development made available for lease or sale and permitted for use and occupancy.
(v)A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph. A local agency shall only dispose of land pursuant to this subparagraph through a disposition and development agreement that includes an indemnification clause that provides that if an action occurs after disposition violates this subparagraph, the person or entity that acquired the property shall be liable for the penalties.
(vi)The requirements of clauses (i) to (v), inclusive, shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(I)A mixed-use development, which may include more than one publicly owned parcel, that meets all of the following conditions:
(i)The development restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(ii)At least 50 percent of the square footage of the new construction associated with the development is designated for residential use.
(iii)The development is not located in an urbanized area, as defined in Section 21094.5 of the Public Resources Code.
(J)(i)Surplus land that is subject to a valid legal restriction that is not imposed by the local agency and that makes housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. A declaration of exemption pursuant to this subparagraph shall be supported by documentary evidence establishing the valid legal restriction. For the purposes of this section, documentary evidence includes, but is not limited to, a contract, agreement, deed restriction, statute, regulation or other writing that documents the valid legal restriction.
(ii)Valid legal restrictions include, but are not limited to, all of the following:
(I)Existing constraints under ownership rights or contractual rights or obligations that prevent the use of the property for housing, if the rights or obligations were agreed to prior to September 30, 2019.
(II)Conservation or other easements or encumbrances that prevent housing development.
(III)Existing leases, or other contractual obligations or restrictions, if the terms were agreed to prior to September 30, 2019.
(IV)Restrictions imposed by the source of funding that a local agency used to purchase a property, provided that both of the following requirements are met:
(ia)The restrictions limit the use of those funds to purposes other than housing.
(ib)The proposed disposal of surplus land meets a use consistent with that purpose.
(ii)Valid legal restrictions that would make housing prohibited do not include either of the following:
(I)An existing nonresidential land use designation on the surplus land.
(II)Covenants, restrictions, or other conditions on the property rendered void and unenforceable by any other law, including, but not limited to, Section 714.6 of the Civil Code.
(iii)Feasible methods to mitigate or avoid a valid legal restriction on the site do not include a requirement that the local agency acquire additional property rights or property interests belonging to third parties.
(K)Surplus land that was granted by the state in trust to a local agency or that was acquired by the local agency for trust purposes by purchase or exchange, and for which disposal of the land is authorized or required subject to conditions established by statute.
(L)Land that is subject to either of the following, unless compliance with this article is expressly required:
(i)Section 17388, 17515, 17536, 81192, 81397, 81399, 81420, or 81422 of the Education Code.
(ii)Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code.
(M)Surplus land that is a former military base that was conveyed by the federal government to a local agency, and is subject to Article 8 (commencing with Section 33492.125) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, provided that all of the following conditions are met:
(i) The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses, and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base.
(ii)The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least 25 percent of the initial 1,400 residential units developed shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(iii)Before disposition of the surplus land, the agency adopts written findings that the land is exempt surplus land pursuant to this subparagraph.
(iv)Before disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agencys project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient.
(v)The agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph or the settlement agreement.
(N)Real property that is used by a district for an agencys use expressly authorized in subdivision (c).
(O)Land that has been transferred before June 30, 2019, by the state to a local agency pursuant to Section 32667 of the Streets and Highways Code and has a minimum planned residential density of at least 100 dwelling units per acre, and includes 100 or more residential units that are restricted to persons and families of low or moderate income, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands. For purposes of this subparagraph, not more than 20 percent of the affordable units may be restricted to persons and families of moderate income and at least 80 percent of the affordable units must be restricted to lower income households as defined in Section 50079.5 of the Health and Safety Code.
(P)(i)Land that meets the following conditions:
(I)Land that is subject to a sectional planning area document that meets both of the following:
(ia)The sectional planning area was adopted prior to January 1, 2019.
(ib)The sectional planning area document is consistent with county and city general plans applicable to the land.
(II)The land identified in the adopted sectional planning area document was dedicated prior to January 1, 2019
(III)On January 1, 2019, the parcels on the land met at least one of the following conditions:
(ia)The land was subject to an irrevocable offer of dedication of fee interest requiring the land to be used for a specified purpose.
(ib)The land was acquired through a land exchange subject to a land offer agreement that grants the lands original owner the right to repurchase the land acquired by the local agency pursuant to the agreement if the land will not be developed in a manner consistent with the agreement.
(ic)The land was subject to a grant deed specifying that the property shall be used for educational uses and limiting other types of uses allowed on the property.
(IV)At least 25 percent of the units are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable rent, as defined by Section 50053 of the Health and Safety Code, or an affordable housing cost, as defined by Section 50052.5 of the Health and Safety Code, and subject to a recorded deed restriction for a period of 55 years for rental units and land use for owner-occupied units.
(V)The land is developed at an average density of at least 10 units per acre, calculated with respect to the entire sectional planning area.
(VI)No more than 25 percent of the nonresidential square footage identified in the sectional planning area document receives its first certificate of occupancy before at least 25 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(VII)No more than 50 percent of the nonresidential square footage identified in the sectional planning area document receives its first certificate of occupancy before at least 50 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(VIII)No more than 75 percent of the nonresidential square footage identified in the sectional planning area document shall receive its first certificate of occupancy before at least 75 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(ii)The local agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development, including the total square footage of the residential and nonresidential development, the number of residential units that have been permitted, and what percentage of those residential units are restricted for persons and families of low or moderate income, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(iii)The Department of Housing and Community Development may request additional information from the agency regarding land disposed of pursuant to this subparagraph.
(iv)At least 30 days prior to disposing of land declared exempt surplus land, a local agency shall provide the Department of Housing and Community Development a written notification of its declaration and findings in a form prescribed by the Department of Housing and Community Development. Within 30 days of receipt of the written notification and findings, the department shall notify the local agency if the department has determined that the local agency is in violation of this article. A local agency that fails to submit the written notification and findings shall be liable for a civil penalty pursuant to this subparagraph. A local agency shall not be liable for the civil penalty if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the written notification and findings. Once the department determines that the declarations and findings comply with subclauses (I) to (IV), inclusive, of clause (i), the local agency may proceed with disposal of land pursuant to this subparagraph. This clause is declaratory of, and not a change in, existing law.
(v)If the local agency disposes of land in violation of this subparagraph, the local agency shall be liable for a civil penalty calculated as follows:
(I)For a first violation, 30 percent of the greater of the final sale price or the fair market value of the land at the time of disposition.
(II)For a second or subsequent violation, 50 percent of the greater of the final sale price or the fair market value of the land at the time of disposition.
(III)For purposes of this subparagraph, fair market value shall be determined by an independent appraisal of the land.
(IV)An action to enforce this subparagraph may be brought by any of the following:
(ia)An entity identified in subdivisions (a) to (e), inclusive, of Section 54222.
(ib)A person who would have been eligible to apply for residency in affordable housing had the agency not violated this section.
(ic)A housing organization, as that term is defined in Section 65589.5.
(id)A beneficially interested person or entity.
(ie)The Department of Housing and Community Development.
(V)A penalty assessed pursuant to this subparagraph shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(VI)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(vi)For purposes of this subparagraph, the following definitions apply:
(I)Sectional planning area means an area composed of identifiable planning units, within which common services and facilities, a strong internal unity, and an integrated pattern of land use, circulation, and townscape planning are readily achievable.
(II)Sectional planning area document means a document or plan that sets forth, at minimum, a site utilization plan of the sectional planning area and development standards for each land use area and designation.
(vii)This subparagraph shall become inoperative on January 1, 2034.
(Q)Land that is owned by a California public-use airport on which residential uses are prohibited pursuant to Federal Aviation Administration Order 5190.6B, Airport Compliance Program, Chapter 20 -- Compatible Land Use and Airspace Protection.
(R)Land that is transferred to a community land trust, and all of the following conditions are met:
(i)The property is being or will be developed or rehabilitated as any of the following:
(I)An owner-occupied single-family dwelling.
(II)An owner-occupied unit in a multifamily dwelling.
(III)A member-occupied unit in a limited equity housing cooperative.
(IV)A rental housing development.
(ii)Improvements on the property are or will be available for use and ownership or for rent by qualified persons, as defined in paragraph (6) of subdivision (c) of Section 214.18 of the Revenue and Taxation Code.
(iii)(I)A deed restriction or other instrument, requiring a contract or contracts serving as an enforceable restriction on the sale or resale value of owner-occupied units or on the affordability of rental units is recorded on or before the lien date following the acquisition of the property by the community land trust.
(II)For the purpose of this clause, the following definitions apply:
(ia)A contract or contracts serving as an enforceable restriction on the sale or resale value of owner-occupied units means a contract described in paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.
(ib)A contract or contracts serving as an enforceable restriction on the affordability of rental units means an enforceable and verifiable agreement with a public agency, a recorded deed restriction, or other legal document described in subparagraph (A) of paragraph (2) of subdivision (g) of Section 214 of the Revenue and Taxation Code.
(iv)A copy of the deed restriction or other instrument shall be provided to the assessor.
(S)(i)For local agencies whose primary mission or purpose is to supply the public with a transportation system, surplus land that is developed for commercial, or industrial uses or activities, including nongovernmental retail, entertainment, or office development or for the sole purpose of investment or generation of revenue, if the agency meets all of the following conditions:
(I)The agency has an adopted land use plan or policy that designates at least 50 percent of the of the gross acreage covered by the adopted land use plan or policy for residential purposes. The adopted land use plan or policy shall also require the development of at least 300 residential units, or at least 10 residential units per gross acre, averaged across all land covered by the land use plan or policy, whichever is greater.
(II)The agency has an adopted land use plan or policy that requires at least 25 percent of all residential units to be developed on the parcels covered by the adopted land use plan or policy made available to lower income households, as defined in Section 50079 of the Health and Safety Code, at an affordable sales price or rented at an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing. These terms shall be included in the land use plan or policy and dictate that they will be contained in a covenant or restriction recorded against the surplus land at the time of disposition that shall run with the land and be enforceable against any owner or lessee who violates the covenant or restriction and each successor in interest who continues the violation.
(III)Land disposed of for residential purposes shall issue a competitive request for proposals subject to the local agencys open, competitive solicitation process or put out to open, competitive bid by the local agency, provided that all entities identified in subdivision (a) of Section 54222 are invited to participate.
(IV)Prior to entering into an agreement to dispose of a parcel for non-residential development on land designated for the purposes authorized pursuant to this subparagraph in an agencys adopted land use plan or policy, the agency, since January 1, 2020, must have entered into an agreement to dispose of a minimum of 25 percent of the land designated for affordable housing pursuant to subclause (II).
(ii)The agency may exempt at one time all parcels covered by the adopted land use plan or policy pursuant to this subparagraph.
(2)Notwithstanding paragraph (1), a written notice of the availability of surplus land for open-space purposes shall be sent to the entities described in subdivision (b) of Section 54222 before disposing of the surplus land, provided the land does not meet the criteria in subparagraph (H) of paragraph (1), if the land is any of the following:
(A)Within a coastal zone.
(B)Adjacent to a historical unit of the State Parks System.
(C)Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places.
(D)Within the Lake Tahoe region as defined in Section 66905.5.
(g)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.
SEC. 2.Section 54221 of the Government Code, as added by Section 4 of Chapter 40 of the Statutes of 2023, is repealed.SEC. 3.Section 54222 of the Government Code is amended to read:54222.Except as provided in Division 23 (commencing with Section 33000) of the Public Resources Code, any local agency disposing of surplus land, declared pursuant to subdivision (b) of Section 54221.5, shall send, before disposing of that property or participating in negotiations to dispose of that property with a prospective transferee, a written notice of availability of the property to all of the following:
(a)(1)A written notice of availability for developing low- and moderate-income housing shall be sent to any local public entity, as defined in Section 50079 of the Health and Safety Code, that has jurisdiction where the surplus land is located. Housing sponsors, as defined by Section 50074 of the Health and Safety Code, that have notified the Department of Housing and Community Development of their interest in surplus land shall be sent a notice of availability for the purpose of developing low- and moderate-income housing. All notices shall be sent by electronic mail, or by certified mail, and shall include the location and a description of the property.
(2)The Department of Housing and Community Development shall maintain on its internet website an up-to-date listing of, and a link to, all notices of availability throughout the state and a listing of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.
(b)A written notice of availability for open-space purposes shall be sent:
(1)To any park or recreation department of any city within which the surplus land is located.
(2)To any park or recreation department of the county within which the surplus land is located.
(3)To any regional park authority having jurisdiction within the area in which the surplus land is located.
(4)To the State Resources Agency or any agency that may succeed to its powers.
(c)A written notice of availability of land suitable for school facilities construction or use by a school district for open-space purposes shall be sent to any school district that has jurisdiction where the surplus land is located.
(d)A written notice of availability for developing property located within an infill opportunity zone designated pursuant to Section 65088.4 or within an area covered by a transit village plan adopted pursuant to the Transit Village Development Planning Act of 1994 (Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7) shall be sent to any county, city, city and county, successor agency to a former redevelopment agency, public transportation agency, or housing authority within whose jurisdiction the surplus land is located.
(e)The entity desiring to purchase or lease the surplus land for any of the purposes authorized by this section shall notify in writing the disposing agency of its interest in purchasing or leasing the land within 60 days after the agencys notice of availability is sent via certified mail or provided via electronic mail.
(f) For the purposes of this section, participating in negotiations does not include the any of the following:
(1)The commissioning of appraisals, due diligence prior to disposition, discussions with brokers or real estate agents not representing a potential buyer, or other studies to determine value or best use of land, issuance of a request for qualifications, development of marketing materials, or discussions conducted exclusively among local agency employees and elected officials.
(2)Issuing a request for proposals or request for qualifications to the entities in subdivision (a) of Section 54222 for the purposes of complying with subparagraphs (A), (F), (G), (H), or (I) of paragraph (1) of subdivision (f) of Section 54221.
(3)Negotiating a lease, exclusive negotiating agreement, or option agreement for the purposes of complying with subparagraphs (A), (F), (G), (H), or (I) of paragraph (1) of subdivision (f) of Section 54221.
(4)Negotiating with a developer to determine if the local agency can satisfy the disposal exemption requirements described in paragraph (2) of subdivision (d) of Section 54221.
SEC. 4.Section 54222.5 of the Government Code is amended to read:54222.5.An entity proposing to use the surplus land for developing low- and moderate-income housing shall agree to make available not less than 25 percent of the total number of units developed on the parcels at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or affordable rent, as defined in Section 50053 of the Health and Safety Code, to lower income households, as defined in Section 50079.5 of the Health and Safety Code. Rental units shall remain affordable to, and occupied by, lower income households for a minimum of 55 years for rental housing, 45 years for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with paragraph (2) of subdivision (c) of Section 65915. These requirements shall be contained in a covenant or restriction recorded against the surplus land at the time of sale, that shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:
(a)The local agency that disposed of the surplus land.
(b)A resident of a unit subject to this section.
(c)A residents association with members who reside in units subject to this section.
(d)A former resident of a unit subject to this section who last resided in that unit.
(e)An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:
(1)Is of low or moderate income, pursuant to Section 50093 of the Health and Safety Code.
(2)Is able and willing to occupy that particular unit.
(3)Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.
(f)A person on an affordable housing waiting list who is of low or moderate income, pursuant to Section 50093 of the Health and Safety Code, and who is able and willing to occupy a unit subject to this section.
SEC. 5.Section 54223 of the Government Code is amended to read:54223.(a)After the disposing agency has received a notice of interest from the entity desiring to purchase or lease the surplus land on terms that comply with this article, the disposing agency and the entity shall enter into good faith negotiations to determine a mutually satisfactory sales price and terms or lease terms. If the price or terms cannot be agreed upon after a good faith negotiation period of not less than 90 days, the local agency may dispose of the surplus land without further regard to this article, except that Section 54233 shall apply.
(b)Residential use shall be deemed an acceptable use for the surplus land for the purposes of good faith negotiations with a local agency conducted pursuant to this article. Nothing in this subdivision shall restrict a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land. Except as provided in subdivision (c), terms agreed to pursuant to the negotiations shall not do any of the following:
(1)Disallow residential use of the site as a condition of the disposal.
(2)Reduce the allowable number of residential units or the maximum lot coverage below what may be allowed by zoning or general plan requirements.
(3)Require as a condition of disposal, any design standards or architectural requirements that would have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, other than the minimum standards required by general plan, zoning, and subdivision standards and criteria.
(c)Terms agreed to pursuant to the negotiations required by subdivision (a) may include limitations on residential use or density if, without the limitations, the residential use or density would have a specific, adverse impact, supported by written findings, upon the public health or safety or upon the operation or facilities of a local agency, and there is no feasible method to satisfactorily mitigate the impact.
SEC. 6.Section 54224 of the Government Code is amended to read:54224.Nothing in this article shall preclude a local agency that purchases surplus land from a disposing agency pursuant to this article from reconveying the surplus land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing as authorized under other provisions of law.
SEC. 7.Section 54225 of the Government Code is amended to read:54225.Any local agency disposing of surplus land to an entity described in Section 54222 that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land. The payment period for surplus land disposed of for housing for persons and families of low and moderate income may exceed 20 years, but the payment period shall not exceed the term that the land is required to be used for low- or moderate-income housing.
SEC. 8.Section 54226 of the Government Code is amended to read:54226.(a)This article shall not be interpreted to limit the power of any local agency to sell or lease surplus land at fair market value or at less than fair market value, and any sale or lease at or less than fair market value consistent with this article shall not be construed as inconsistent with an agencys purpose.
(b)This article shall not prevent a local agency from obtaining fair market value for the disposition of surplus land consistent with this section.
(c)This article shall not be interpreted to limit a local agencys authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land.
(d)This article shall not be interpreted to require a local agency to dispose of land that is determined to be surplus.
(e)No provision of this article shall be applied when it conflicts with any other provision of statutory law.
SEC. 9.Section 54227 of the Government Code is amended to read:54227.(a)In the event that any local agency disposing of surplus land receives a notice of interest to purchase or lease that land from more than one of the entities to which notice of availability was given pursuant to this article, the local agency shall give first priority to the entity or entities that agree to use the site for housing that meets the requirements of Section 54222.5. If the local agency receives offers from more than one entity that agrees to meet the requirements of Section 54222.5, then the local agency shall give priority to the entity that proposes to provide the greatest number of units that meet the requirements of Section 54222.5. In the event that more than one entity proposes the same number of units that meet the requirements of Section 54222.5, priority shall be given to the entity that proposes the deepest average level of affordability for the affordable units. A local agency may negotiate concurrently with all entities that provide notice of interest for the purpose of developing low- and moderate-income housing that meets the requirements of Section 54222.5.
(b)Notwithstanding subdivision (a), first priority shall be given to an entity that agrees to use the site for park or recreational purposes if the land being offered is already being used and will continue to be used for park or recreational purposes, or if the land is designated for park and recreational use in the local general plan and will be developed for that purpose.
SEC. 10.Section 54230 of the Government Code is amended to read:54230.(a)(1)On or before December 31 of each year, each county and each city shall make a central inventory of all surplus land, as defined in subdivision (b) of Section 54221, and all lands in excess of its foreseeable needs, if any, identified pursuant to Section 50569, located in all urbanized areas and urban clusters, as designated by the United States Census Bureau, within the jurisdiction of the county or city that the county or city or any of its departments, agencies, or authorities owns or controls.
(2)(A)Subject to subparagraph (C), each county and each city shall make a description of each parcel described in paragraph (1) and the present use of the parcel a matter of public record and shall report this information to the Department of Housing and Community Development no later than April 1 of each year, beginning April 1, 2021, in a form prescribed by the department, as part of its annual progress report submitted pursuant to paragraph (2) of subdivision (a) of Section 65400.
(B)The information reported pursuant to this paragraph shall include, but not be limited to, the following information with respect to each site:
(i)Street address, or similar location information.
(ii)Assessors parcel number.
(iii)Existing use.
(iv)Whether the site is surplus land or exempt surplus land.
(v)Size in acres.
(C)The Department of Housing and Community Development may, in its discretion, delay implementation of this paragraph until April 1, 2022.
(3)Each county and each city, upon request, shall provide a list of its surplus land and excess surplus land to an individual, limited dividend corporation, housing corporation, or nonprofit corporation without charge.
(b)The Department of Housing and Community Development shall provide the information reported to it by a city or county pursuant to paragraph (2) of subdivision (a) to the Department of General Services for inclusion in a digitized inventory of all state-owned parcels that are in excess of state needs.
(c)The Department of Housing and Community Development may review, adopt, amend, and repeal standards, forms, and definitions in order to implement this section. Any standards, forms, or definitions adopted, amended, or repealed pursuant to this subdivision are hereby exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2).
SEC. 11.Section 54230.5 of the Government Code is amended to read:54230.5.(a)(1)A local agency that disposes of surplus land in violation of this article after receiving a notification from the Department of Housing and Community Development pursuant to subdivision (b) that the local agency is in violation of this article shall be liable for a penalty of 30 percent of the applicable disposition value for a first violation, and 50 percent for any subsequent violation. These penalties shall not apply to violations that do not impact the availability and priority of, or the construction of, housing affordable to lower income households or the ultimate disposition of the land in compliance with this article, such as clerical errors. An entity identified in Section 54222 or a person who would have been eligible to apply for residency in any affordable housing developed or a housing organization as defined in Section 65589.5, or any beneficially interested person or entity may bring an action to enforce this section. A local agency shall have 60 days to cure or correct an alleged violation before an action may be brought to enforce this section, unless the local agency disposes of the surplus land before curing or correcting the alleged violation, or the department deems the alleged violation not to be a violation in less than 60 days.
(2)For the purposes of this section, disposition value means:
(A)In the case of a sale, the greater of the final sale price of the land or the fair market value of the surplus land at the time of sale, as determined by an independent appraisal of the surplus land sold in violation of this article.
(B)In the case of a lease, the discounted net present value of the fair market value of the lease as of the date the lease was entered into, as determined by an independent appraisal of the lease of surplus land in violation of this article.
(3)A penalty assessed pursuant to this subdivision shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(4)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(b)(1)Before agreeing to terms for the disposition of surplus land, a local agency shall provide to the Department of Housing and Community Development a description of the notices of availability sent, and negotiations conducted with any responding entities, in regard to the disposal of the parcel of surplus land and a copy of any restrictions to be recorded against the property pursuant to Section 54222.5, 54233, or 54233.5, whichever is applicable, in a form prescribed by the Department of Housing and Community Development. A local agency may submit this information after it has sent notices of availability required by Section 54222 and concluded negotiations with any responding agencies. A local agency shall not be liable for the penalty imposed by subdivision (a) if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the description.
(2)The Department of Housing and Community Development shall do all of the following:
(A)Make available educational resources and materials that inform each agency of its obligations under this article and that provide guidance on how to comply with its provisions.
(B)Review information submitted pursuant to paragraph (1).
(C)Submit written findings to the local agency within 30 days of receipt of the description required by paragraph (1) from the local agency if the proposed disposal of the land will violate this article.
(D)Review, adopt, amend, or repeal guidelines to establish uniform standards to implement this section. The guidelines adopted pursuant to this subdivision are not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2.
(E)Provide the local agency reasonable time, but not less than 60 days, to respond to the findings before taking any other action authorized by this section.
(3)(A)The local agency shall consider findings made by the Department of Housing and Community Development pursuant to subparagraph (C) of paragraph (2) and shall do one of the following:
(i)Correct any issues identified by the Department of Housing and Community Development.
(ii)Provide written findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings.
(B)If the local agency does not correct issues identified by the Department of Housing and Community Development, does not provide findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings, or if the Department of Housing and Community Development finds that the local agencys findings are deficient in addressing the issues identified by the Department of Housing and Community Development, the Department of Housing and Community Development shall notify the local agency, and may notify the Attorney General, that the local agency is in violation of this article.
(c)The Department of Housing and Community Development shall implement the changes in this section made by the act adding this subdivision commencing on January 1, 2021.
(d)Notwithstanding subdivision (c), this section shall not be construed to limit any other remedies authorized under law to enforce this article including public records act requests pursuant to Division 10 (commencing with Section 7920.000) of Title 1.
SEC. 12.Section 54234 of the Government Code is amended to read:54234.(a)(1)If a local agency, as of September 30, 2019, has entered into an exclusive negotiating agreement or legally binding agreement to dispose of property, the provisions of this article as it existed on December 31, 2019, shall apply, without regard to the changes made to this article by Chapter 664 of the Statutes of 2019, and all subsequent amendments to this article, to the disposition of the property to the party that had entered into such agreement or its successors or assigns, provided the disposition is completed by December 31, 2027.
(2)If a local agency, as of September 30, 2019, has entered into an exclusive negotiating agreement or legally binding agreement to dispose of property related to the Metro North Hollywood Joint Development Project, the provisions of this article as it existed on December 31, 2019, shall apply, without regard to the changes made to this article by Chapter 664 of the Statutes of 2019, and all subsequent amendments to this article, to the disposition of the property to the party that had entered into such agreement or its successors or assigns, provided the disposition is completed not later than December 31, 2027.
(3)If a local agency, as of September 30, 2019, has issued a competitive request for proposals for the development of property that includes at least 100 residential units and at least 25 percent of the total residential units are restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable housing cost or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing, the provisions of this article as it existed on December 31, 2019, shall apply, without regard to the changes made to this article by Chapter 664 of the Statutes of 2019, and all subsequent amendments to this article, to the disposition of the property to the party that participated in the competitive request for proposals process, or the partys successors or assigns, provided a disposition and development agreement for the property is entered into not later than December 31, 2027. A joint development involving multiple parcels shall meet the requirements of this paragraph so long as there was a single competitive request for proposals process and the joint development otherwise meets all the requirements listed in this paragraph. A disposition and development agreement means an agreement between the developer and the local agency that binds the developer to construct a specific development and the local agency to dispose of the property if permits and other entitlements for the project are obtained. This paragraph shall not apply to land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code, or that has been designated in a long-range property management plan pursuant to Section 34191.5 of the Health and Safety Code. If no disposition and development agreement is entered into before December 31, 2027, then future negotiations for and disposition of the property shall be subject to the provisions of this article.
(2)The dates specified in paragraphs (1) to (3), inclusive, by which the disposition of property must be completed shall be extended if the disposition of property, the local agencys right or ability to dispose of the property, or a development project for which the property is proposed to be transferred, is the subject of judicial challenge, by petition for writ of mandate, complaint for declaratory relief or otherwise, to the date that is six months following the final conclusion of such litigation.
(b)(1)With respect to land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code, or that has been designated in a long-range property management plan pursuant to Section 34191.5 of the Health and Safety Code, either for sale or retained for future development, this article as it existed on December 31, 2019, without regard to the changes made to this article by Chapter 664 of the Statutes of 2019, and all subsequent amendments to this article, which take effect on January 1, 2020, shall apply to the disposition of that property if both of the following apply:
(A)An exclusive negotiating agreement or legally binding agreement for disposition was entered into not later than December 31, 2020.
(B)The disposition is completed not later than December 31, 2027.
(2)If land described in paragraph (1) is the subject of litigation, including, but not limited to, litigation challenging the disposition of such property, the right or ability to dispose of the property, or a development project for which such property is proposed to be transferred, the dates specified in paragraph (1) shall be extended to the date that is six months following the final conclusion of such litigation.
(c)Nothing in this section shall authorize or excuse any violation of the provisions of this article as it existed on December 31, 2019, in the disposition of any property to which such provisions apply pursuant to subdivision (a) or (b).
(d)If a local agency terminated an exclusive negotiating agreement or legally binding agreement to dispose of property pursuant to an earlier, superseded version of subdivision (a) or (b) of this section due to the lapse of a statutory deadline for completing the disposition of property the local agency may, in its sole reasonable discretion, elect whether to ask the party to the terminated exclusive negotiating agreement or legally binding agreement to dispose of property to consider reviving the terminated agreement. If the local agency and other party fully execute an instrument reviving the terminated agreement before January 1, 2024, on substantially the same terms and conditions as the terminated agreement, the revived agreement shall be subject to subdivision (a) or (b), as applicable, of this section.
SEC. 13.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 14.Section 1.5 of this bill incorporates amendments to Section 54221 of the Government Code proposed by both this bill and Senate Bill 747. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 54221 of the Government Code, and (3) this bill is enacted after Senate Bill 747, in which case Section 1 of this bill shall not become operative.
SEC. 15.This act shall become operative only if Senate Bill 747 of the 202324 Regular Session is enacted and becomes effective.
As used in this article, the following definitions shall apply:
(a)(1)Local agency means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.
(2)The Legislature finds and declares that the term district as used in this article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law.
(b)(1)Surplus land means land owned in fee simple by any local agency for which the local agencys governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agencys use. Land shall be declared either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures. A local agency, on an annual basis, may declare multiple parcels as surplus land or exempt surplus land.
(2)Surplus land includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.
(3)Nothing in this article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with Section 54226.
(4)Notwithstanding paragraph (1), a local agency is not required to make a declaration at a public meeting for land that is exempt surplus land pursuant to subparagraph (A), (B), (E), (K), (L), or (Q) of paragraph (1) of subdivision (f) if the local agency identifies the land in a notice that is published and available for public comment, including notice to the entities identified in subdivision (a) of Section 54222, at least 30 days before the exemption takes effect.
(c)(1)Except as provided in paragraph (2), agencys use shall include, but not be limited to, land that is being used, is planned to be used pursuant to a written plan adopted by the local agencys governing board for, or is disposed to support pursuant to subparagraph (B) of paragraph (2) agency work or operations, including, but not limited to, utility sites, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, and buffer sites near sensitive governmental uses, including, but not limited to, wastewater treatment plants.
(2)(A)Agencys use shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agencys use.
(B)In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, agencys use may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agencys governing body takes action in a public meeting declaring that the use of the site will do either one of the following:
(i)Directly further the express purpose of agency work or operations.
(ii)Be expressly authorized by a statute governing the local agency, provided the district complies with Section 54233.5 where if applicable.
(d)(1) Dispose means either of the following:
(A)The sale of the surplus land.
(B)The entering of a lease for surplus land, which is for a term longer than 15 years, inclusive of any extension or renewal options included in the terms of the initial lease, entered into on or after January 1, 2024.
(2)Dispose shall not mean either of the following:
(A)The entering of a lease for surplus land, which is for a term of 15 years or less, inclusive of any extension or renewal options included in the terms of the initial lease.
(B)The entering of a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease.
(d)(e)Open-space purposes means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources.
(e)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.(f)(1)Except as provided in paragraph (2), exempt surplus land means any of the following:
(A)Surplus land that is transferred pursuant to Section 25539.4 or 37364.
(B)Surplus land that is (i) less than 5,000 square feet in area, (ii) less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet in area, whichever is less, or (iii) has no record access and is less than 10,000 square feet in area; and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. If the surplus land is not sold to an owner of contiguous land, it is not considered exempt surplus land and is subject to this article.
(C)Surplus land that a local agency is exchanging for another property necessary for the agencys use. Property may include easements necessary for the agencys use.
(D)Surplus land that a local agency is transferring to another local, state, or federal agency for the agencys use, or to a federally recognized California Indian tribe.
(E)Surplus land that is a former street, right-of-way, right of way, or easement, and is conveyed to an owner of an adjacent property.
(F)Surplus land that is put out to open, competitive bid by a local agency, provided all entities identified in subdivision (a) of Section 54222 will be invited to participate in the competitive bid process, for either of the following purposes:(F)(i)A Surplus land that is to be developed for a housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections Section 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing housing, and 45 years land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located.
(ii)The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(ii)(G)(i)A Surplus land that is subject to a local agencys open, competitive solicitation or that is put to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process, for a housing or a mixed-use development that is more than one acre and less than 10 acres in area, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined, that includes not less than 300 housing residential units, and that restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing housing, and 45 years land use for ownership housing. housing, and 50 years for rental or ownership housing located on tribal trust lands.
(ii)The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(H)(i) Surplus land totaling 10 or more acres, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute. That surplus land shall be subject to a local agencys open, competitive solicitation process or put out to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process for a housing or mixed-use development.
(ii)The aggregate development shall include the greater of the following:
(I)Not less than three hundred residential units.
(II)A number of residential units equal to 10 times the number of acres of the surplus land or 10,000 residential units, whichever is less.
(iii)At least 25 percent of the residential units shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent pursuant to Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(iv)If nonresidential development is included in the development pursuant to this subparagraph, at least 25 percent of the total planned units affordable to lower income households shall be made available for lease or sale and permitted for use and occupancy before or at the same time with every 25 percent of nonresidential development made available for lease or sale and permitted for use and occupancy.
(v)A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph. A local agency shall only dispose of land pursuant to this subparagraph through a disposition and development agreement that includes an indemnification clause that provides that if an action occurs after disposition violates this subparagraph, the person or entity that acquired the property shall be liable for the penalties.
(vi)The requirements of clauses (i) to (v), inclusive, shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(I)A mixed-use development, which may include more than one publicly owned parcel, that meets all of the following conditions:
(i)The development restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(ii)At least 50 percent of the square footage of the new construction associated with the development is designated for residential use.
(iii)The development is not located in an urbanized area, as defined in Section 21094.5 of the Public Resources Code.
(G)(J)Surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. An existing nonresidential land use designation on the surplus land is not a legal restriction that would make housing prohibited for purposes of this subparagraph. Nothing in this article limits a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land.
(H)(K)Surplus land that was granted by the state in trust to a local agency or that was acquired by the local agency for trust purposes by purchase or exchange, and for which disposal of the land is authorized or required subject to conditions established by statute.
(I)(L)Land that is subject to Sections either of the following, unless compliance with this article is expressly required:
(i)Section 17388, 17515, 17536, 81192, 81397, 81399, 81420, and or 81422 of the Education Code and Code.
(ii) Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code, unless compliance with this article is expressly required. Code.
(J)(M)Surplus land that is a former military base that was conveyed by the federal government to a local agency, and is subject to Article 8 (commencing with Section 33492.125) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, provided that all of the following conditions are met:
(i) The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses, and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base.
(ii)The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least 25 percent of the initial 1,400 residential units developed shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years housing, land use for ownership housing. housing, and 50 years for rental or ownership housing located on tribal trust lands.
(iii)Prior to Before disposition of the surplus land, the agency adopts written findings that the land is exempt surplus land pursuant to this subparagraph.
(iv)Prior to the Before disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agencys project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient.
(v)The agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph or the settlement agreement.
(K)(N)Real property that is used by a district for an agencys use expressly authorized in subdivision (c).
(L)(O)Land that has been transferred before June 30, 2019, by the state to a local agency pursuant to Section 32667 of the Streets and Highways Code and has a minimum planned residential density of at least 100 dwelling units per acre, and includes 100 or more residential units that are restricted to persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years housing, land use for ownership housing. housing, and 50 years for rental or ownership housing located on tribal trust lands. For purposes of this paragraph, subparagraph, not more than 20 percent of the affordable units may be restricted to persons and families of moderate income and at least 80 percent of the affordable units must be restricted to persons and families of lower income households as defined in Section 50079.5 of the Health and Safety Code.
(M)(P)(i)Land that meets the following conditions:
(I)Land that is subject to a sectional planning area document that meets both of the following:
(ia)The sectional planning area was adopted prior to January 1, 2019.
(ib)The sectional planning area document is consistent with county and city general plans applicable to the land.
(II)The land identified in the adopted sectional planning area document was dedicated prior to January 1, 2019
(III)On January 1, 2019, the parcels on the land met at least one of the following conditions:
(ia)The land was subject to an irrevocable offer of dedication of fee interest requiring the land to be used for a specified purpose.
(ib)The land was acquired through a land exchange subject to a land offer agreement that grants the lands original owner the right to repurchase the land acquired by the local agency pursuant to the agreement if the land will not be developed in a manner consistent with the agreement.
(ic)The land was subject to a grant deed specifying that the property shall be used for educational uses and limiting other types of uses allowed on the property.
(IV)At least 25 percent of the units are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable rent, as defined by Section 50053 of the Health and Safety Code, or an affordable housing cost, as defined by Section 50052.5 of the Health and Safety Code, and subject to a recorded deed restriction for a period of 55 years for rental units and 45 yearsland use for owner-occupied units.
(V)The land is developed at an average density of at least 10 units per acre, calculated with respect to the entire sectional planning area.
(VI)No more than 25 percent of the nonresidential square footage identified in the sectional planning area document receives its first certificate of occupancy before at least 25 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(VII)No more than 50 percent of the nonresidential square footage identified in the sectional planning area document receives its first certificate of occupancy before at least 50 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(VIII)No more than 75 percent of the nonresidential square footage identified in the sectional planning area document shall receive its first certificate of occupancy before at least 75 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(ii)The local agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development, including the total square footage of the residential and nonresidential development, the number of residential units that have been permitted, and what percentage of those residential units are restricted for persons and families of low or moderate income, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(iii)The Department of Housing and Community Development may request additional information from the agency regarding land disposed of pursuant to this subparagraph.
(iv)At least 30 days prior to disposing of land declared exempt surplus land, a local agency shall provide the Department of Housing and Community Development a written notification of its declaration and findings in a form prescribed by the Department of Housing and Community Development. Within 30 days of receipt of the written notification and findings, the department shall notify the local agency if the department has determined that the local agency is in violation of this article. A local agency that fails to submit the written notification and findings shall be liable for a civil penalty pursuant to this subparagraph. A local agency shall not be liable for the civil penalty if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the written notification and findings. Once the department determines that the declarations and findings comply with subclauses (I) to (IV), inclusive, of clause (i), the local agency may proceed with disposal of land pursuant to this subparagraph. This clause is declaratory of, and not a change in, existing law.
(v)If the local agency disposes of land in violation of this subparagraph, the local agency shall be liable for a civil penalty calculated as follows:
(I)For a first violation, 30 percent of the greater of the final sale price or the fair market value of the land at the time of disposition.
(II)For a second or subsequent violation, 50 percent of the greater of the final sale price or the fair market value of the land at the time of disposition.
(III)For purposes of this subparagraph, fair market value shall be determined by an independent appraisal of the land.
(IV)An action to enforce this subparagraph may be brought by any of the following:
(ia)An entity identified in subdivisions (a) to (e), inclusive, of Section 54222.
(ib)A person who would have been eligible to apply for residency in affordable housing had the agency not violated this section.
(ic)A housing organization, as that term is defined in Section 65589.5.
(id)A beneficially interested person or entity.
(ie)The Department of Housing and Community Development.
(V)A penalty assessed pursuant to this subparagraph shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(VI)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(vi)For purposes of this subparagraph, the following definitions apply:
(I)Sectional planning area means an area composed of identifiable planning units, within which common services and facilities, a strong internal unity, and an integrated pattern of land use, circulation, and townscape planning are readily achievable.
(II)Sectional planning area document means a document or plan that sets forth, at minimum, a site utilization plan of the sectional planning area and development standards for each land use area and designation.
(vii)This subparagraph shall become inoperative on January 1, 2034.
(Q)Land that is owned by a California public-use airport on which residential uses are prohibited pursuant to Federal Aviation Administration Order 5190.6B, Airport Compliance Program, Chapter 20 -- Compatible Land Use and Airspace Protection.
(S)(i) For local agencies whose primary mission or purpose is to supply the public with a transportation system, surplus land that is developed for commercial, or industrial uses or activities, including nongovernmental retail, entertainment, or office development or for the sole purpose of investment or generation of revenue, if the agency meets all of the following conditions:
(I)The agency has an adopted land use plan or policy that designates at least 50 percent of the of the gross acreage covered by the adopted land use plan or policy for residential purposes. The adopted land use plan or policy shall also require the development of at least 300 residential units, or at least 10 residential units per gross acre, averaged across all land covered by the land use plan or policy, whichever is greater.
(II)The agency has an adopted land use plan or policy that requires at least 25 percent of all residential units to be developed on the parcels covered by the adopted land use plan or policy made available to lower income households, as defined in Section 50079 of the Health and Safety Code, at an affordable sales price or rented at an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and land use for ownership housing. These terms shall be included in the land use plan or policy and dictate that they will be contained in a covenant or restriction recorded against the surplus land at the time of disposition that shall run with the land and be enforceable against any owner or lessee who violates the covenant or restriction and each successor in interest who continues the violation.
(III)Land disposed of for residential purposes shall issue a competitive request for proposals subject to the local agencys open, competitive solicitation process or put out to open, competitive bid by the local agency, provided that all entities identified in subdivision (a) of Section 54222 are invited to participate.
(IV)Prior to entering into an agreement to dispose of a parcel for non-residential development on land designated for the purposes authorized pursuant to this subparagraph in an agencys adopted land use plan or policy, the agency, since January 1, 2020, must have entered into an agreement to dispose of a minimum of 25 percent of the land designated for affordable housing pursuant to subclause (II).
(ii)The agency may exempt at one time all parcels covered by the adopted land use plan or policy pursuant to this subparagraph.
(2)Notwithstanding paragraph (1), a written notice of the availability of surplus land for open-space purposes shall be sent to the entities described in subdivision (b) of Section 54222 prior to before disposing of the surplus land, provided the land does not meet the criteria in subparagraph (H) of paragraph (1), if the land is any of the following:
(A)Within a coastal zone.
(B)Adjacent to a historical unit of the State Parks System.
(C)Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places.
(D)Within the Lake Tahoe region as defined in Section 66905.5.
(g)This section shall remain in effect only until January 1, 2034, and as of that date is repealed.(g)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.
SEC. 1.5.Section 54221 of the Government Code, as amended by Section 3 of Chapter 40 of the Statutes of 2023, is amended to read:54221.As used in this article, the following definitions shall apply:
(a)(1)Local agency means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.
(2)The Legislature finds and declares that the term district as used in this article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law.
(b)(1)Surplus land means land owned in fee simple by any local agency for which the local agencys governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agencys use. Land shall be declared either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures. A local agency, on an annual basis, may declare multiple parcels as surplus land or exempt surplus land.
(2)Surplus land includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.
(3)Nothing in this article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with Section 54226.
(4)Notwithstanding paragraph (1), a local agency is not required to make a declaration at a public meeting for land that is exempt surplus land pursuant to subparagraph (A), (B), (E), (K), (L), or (Q) of paragraph (1) of subdivision (f) if the local agency identifies the land in a notice that is published and available for public comment, including notice to the entities identified in subdivision (a) of Section 54222, at least 30 days before the exemption takes effect.
(c)(1)Except as provided in paragraph (2), agencys use shall include, but not be limited to, land that is being used, or is planned to be used pursuant to a written plan adopted by the local agencys governing board for, or is disposed to support pursuant to subparagraph (B) of paragraph (2) board, for agency work or operations, including, but not limited to, utility sites, property owned by a port that is used to support logistics uses, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, sites for broadband equipment or wireless facilities, and buffer sites near sensitive governmental uses, including, but not limited to, waste disposal sites, and wastewater treatment plants. Agencys use by a local agency that is a district shall also include land disposed for uses described in subparagraph (B) of paragraph (2).
(2)(A)Agencys use shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agencys use.
(B)In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, agencys use may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agencys governing body takes action in a public meeting declaring that the use of the site will do either one of the following:
(i)Directly further the express purpose of agency work or operations.
(ii)Be expressly authorized by a statute governing the local agency, provided the district complies with Section 54233.5 where if applicable.
(d)(1) Dispose means either of the following:
(A)The sale of the surplus land.
(B)The entering of a lease for surplus land, which is for a term longer than 15 years, inclusive of any extension or renewal options included in the terms of the initial lease, entered into on or after January 1, 2024.
(2)Dispose shall not mean either of the following:
(A)The entering of a lease for surplus land, which is for a term of 15 years or less, inclusive of any extension or renewal options included in the terms of the initial lease.
(B)The entering of a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease.
(d)(e)Open-space purposes means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources.
(e)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.(f)(1)Except as provided in paragraph (2), exempt surplus land means any of the following:
(A)Surplus land that is transferred pursuant to Section 25539.4 or 37364.
(B)Surplus land that is (i) less than 5,000 square feet in area, (ii) less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet in area, whichever is less, or (iii) has no record access and is less than 10,000 square feet in area; and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. If the surplus land is not sold to an owner of contiguous land, it is not considered exempt surplus land and is subject to this article.(B)Surplus land that is less than one-half acre in area and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes.
(C)Surplus land that a local agency is exchanging for another property necessary for the agencys use. Property may include easements necessary for the agencys use.
(D)Surplus land that a local agency is transferring to another local, state, or federal agency agency, or to a third-party intermediary for future dedication for the receiving agencys use, or to a federally recognized California Indian tribe. If the surplus land is transferred to a third-party intermediary, the receiving agencys use must be contained in a legally binding agreement at the time of transfer to the third-party intermediary.
(E)Surplus land that is a former street, right-of-way, right of way, or easement, and is conveyed to an owner of an adjacent property.
(F)Surplus land that is put out to open, competitive bid by a local agency, provided all entities identified in subdivision (a) of Section 54222 will be invited to participate in the competitive bid process, for either of the following purposes:(F)(i)Surplus land that is to be developed for a housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections Section 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located.
(ii)The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(ii)A(G)(i)Surplus land that is subject to a local agencys open, competitive solicitation or that is put to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process, for a housing or a mixed-use development that is more than one acre and less than 10 acres in area, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined, that includes not less than 300 housing residential units, and that restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years housing, land use for ownership housing. housing, and 50 years for rental or ownership housing located on tribal trust lands.
(ii)The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(H)(i)Surplus land totaling 10 or more acres, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute. That surplus land shall be subject to a local agencys open, competitive solicitation process or put out to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process for a housing or mixed-use development.
(ii)The aggregate development shall include the greater of the following:
(I)Not less than three hundred residential units.
(II)A number of residential units equal to 10 times the number of acres of the surplus land or 10,000 residential units, whichever is less.
(iii)At least 25 percent of the residential units shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent pursuant to Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(iv)If nonresidential development is included in the development pursuant to this subparagraph, at least 25 percent of the total planned units affordable to lower income households shall be made available for lease or sale and permitted for use and occupancy before or at the same time with every 25 percent of nonresidential development made available for lease or sale and permitted for use and occupancy.
(v)A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph. A local agency shall only dispose of land pursuant to this subparagraph through a disposition and development agreement that includes an indemnification clause that provides that if an action occurs after disposition violates this subparagraph, the person or entity that acquired the property shall be liable for the penalties.
(vi)The requirements of clauses (i) to (v), inclusive, shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(I)A mixed-use development, which may include more than one publicly owned parcel, that meets all of the following conditions:
(i)The development restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, land use for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
(ii)At least 50 percent of the square footage of the new construction associated with the development is designated for residential use.
(iii)The development is not located in an urbanized area, as defined in Section 21094.5 of the Public Resources Code.
(G)(J)(i)Surplus land that is subject to a valid legal restrictions restriction that are is not imposed by the local agency and that would make makes housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. An existing nonresidential land use designation on the surplus land is not a legal restriction that would make housing prohibited for purposes of this subparagraph. Nothing in this article limits a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land. A declaration of exemption pursuant to this subparagraph shall be supported by documentary evidence establishing the valid legal restriction. For the purposes of this section, documentary evidence includes, but is not limited to, a contract, agreement, deed restriction, statute, regulation or other writing that documents the valid legal restriction.
(ii)Valid legal restrictions include, but are not limited to, all of the following:
(I)Existing constraints under ownership rights or contractual rights or obligations that prevent the use of the property for housing, if the rights or obligations were agreed to prior to September 30, 2019.
(II)Conservation or other easements or encumbrances that prevent housing development.
(III)Existing leases, or other contractual obligations or restrictions, if the terms were agreed to prior to September 30, 2019.
(IV)Restrictions imposed by the source of funding that a local agency used to purchase a property, provided that both of the following requirements are met:
(ia)The restrictions limit the use of those funds to purposes other than housing.
(ib)The proposed disposal of surplus land meets a use consistent with that purpose.
(ii)Valid legal restrictions that would make housing prohibited do not include either of the following:
(I)An existing nonresidential land use designation on the surplus land.
(II)Covenants, restrictions, or other conditions on the property rendered void and unenforceable by any other law, including, but not limited to, Section 714.6 of the Civil Code.
(iii)Feasible methods to mitigate or avoid a valid legal restriction on the site do not include a requirement that the local agency acquire additional property rights or property interests belonging to third parties.
(H)(K)Surplus land that was granted by the state in trust to a local agency or that was acquired by the local agency for trust purposes by purchase or exchange, and for which disposal of the land is authorized or required subject to conditions established by statute.
(I)(L)Land that is subject to Sections either of the following, unless compliance with this article is expressly required:
(i)Section 17388, 17515, 17536, 81192, 81397, 81399, 81420, and or 81422 of the Education Code and Code.
(ii)Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code, unless compliance with this article is expressly required. Code.
(J)(M)Surplus land that is a former military base that was conveyed by the federal government to a local agency, and is subject to Article 8 (commencing with Section 33492.125) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, provided that all of the following conditions are met:
(i) The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses, and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base.
(ii)The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least 25 percent of the initial 1,400 residential units developed shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and housing, 45 yearsland use for ownership housing. housing, and 50 years for rental or ownership housing located on tribal trust lands.
(iii)Prior to Before disposition of the surplus land, the agency adopts written findings that the land is exempt surplus land pursuant to this subparagraph.
(iv)Prior to the Before disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agencys project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient.
(v)The agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph or the settlement agreement.
(K)(N)Real property that is used by a district for an agencys use expressly authorized in subdivision (c).
(L)(O)Land that has been transferred before June 30, 2019, by the state to a local agency pursuant to Section 32667 of the Streets and Highways Code and has a minimum planned residential density of at least 100 dwelling units per acre, and includes 100 or more residential units that are restricted to persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years housing, land use for ownership housing. housing, and 50 years for rental or ownership housing located on tribal trust lands. For purposes of this paragraph, subparagraph, not more than 20 percent of the affordable units may be restricted to persons and families of moderate income and at least 80 percent of the affordable units must be restricted to persons and families of lower income households as defined in Section 50079.5 of the Health and Safety Code.
(M)(P)(i)Land that meets the following conditions:
(I)Land that is subject to a sectional planning area document that meets both of the following:
(ia)The sectional planning area was adopted prior to January 1, 2019.
(ib)The sectional planning area document is consistent with county and city general plans applicable to the land.
(II)The land identified in the adopted sectional planning area document was dedicated prior to January 1, 2019
(III)On January 1, 2019, the parcels on the land met at least one of the following conditions:
(ia)The land was subject to an irrevocable offer of dedication of fee interest requiring the land to be used for a specified purpose.
(ib)The land was acquired through a land exchange subject to a land offer agreement that grants the lands original owner the right to repurchase the land acquired by the local agency pursuant to the agreement if the land will not be developed in a manner consistent with the agreement.
(ic)The land was subject to a grant deed specifying that the property shall be used for educational uses and limiting other types of uses allowed on the property.
(IV)At least 25 percent of the units are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable rent, as defined by Section 50053 of the Health and Safety Code, or an affordable housing cost, as defined by Section 50052.5 of the Health and Safety Code, and subject to a recorded deed restriction for a period of 55 years for rental units and 45 years land use for owner-occupied units.
(V)The land is developed at an average density of at least 10 units per acre, calculated with respect to the entire sectional planning area.
(VI)No more than 25 percent of the nonresidential square footage identified in the sectional planning area document receives its first certificate of occupancy before at least 25 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(VII)No more than 50 percent of the nonresidential square footage identified in the sectional planning area document receives its first certificate of occupancy before at least 50 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(VIII)No more than 75 percent of the nonresidential square footage identified in the sectional planning area document shall receive its first certificate of occupancy before at least 75 percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy.
(ii)The local agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development, including the total square footage of the residential and nonresidential development, the number of residential units that have been permitted, and what percentage of those residential units are restricted for persons and families of low or moderate income, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(iii)The Department of Housing and Community Development may request additional information from the agency regarding land disposed of pursuant to this subparagraph.
(iv)At least 30 days prior to disposing of land declared exempt surplus land, a local agency shall provide the Department of Housing and Community Development a written notification of its declaration and findings in a form prescribed by the Department of Housing and Community Development. Within 30 days of receipt of the written notification and findings, the department shall notify the local agency if the department has determined that the local agency is in violation of this article. A local agency that fails to submit the written notification and findings shall be liable for a civil penalty pursuant to this subparagraph. A local agency shall not be liable for the civil penalty if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the written notification and findings. Once the department determines that the declarations and findings comply with subclauses (I) to (IV), inclusive, of clause (i), the local agency may proceed with disposal of land pursuant to this subparagraph. This clause is declaratory of, and not a change in, existing law.
(v)If the local agency disposes of land in violation of this subparagraph, the local agency shall be liable for a civil penalty calculated as follows:
(I)For a first violation, 30 percent of the greater of the final sale price or the fair market value of the land at the time of disposition.
(II)For a second or subsequent violation, 50 percent of the greater of the final sale price or the fair market value of the land at the time of disposition.
(III)For purposes of this subparagraph, fair market value shall be determined by an independent appraisal of the land.
(IV)An action to enforce this subparagraph may be brought by any of the following:
(ia)An entity identified in subdivisions (a) to (e), inclusive, of Section 54222.
(ib)A person who would have been eligible to apply for residency in affordable housing had the agency not violated this section.
(ic)A housing organization, as that term is defined in Section 65589.5.
(id)A beneficially interested person or entity.
(ie)The Department of Housing and Community Development.
(V)A penalty assessed pursuant to this subparagraph shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(VI)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(vi)For purposes of this subparagraph, the following definitions apply:
(I)Sectional planning area means an area composed of identifiable planning units, within which common services and facilities, a strong internal unity, and an integrated pattern of land use, circulation, and townscape planning are readily achievable.
(II)Sectional planning area document means a document or plan that sets forth, at minimum, a site utilization plan of the sectional planning area and development standards for each land use area and designation.
(vii)This subparagraph shall become inoperative on January 1, 2034.
(Q)Land that is owned by a California public-use airport on which residential uses are prohibited pursuant to Federal Aviation Administration Order 5190.6B, Airport Compliance Program, Chapter 20 -- Compatible Land Use and Airspace Protection.
(R)Land that is transferred to a community land trust, and all of the following conditions are met:
(i)The property is being or will be developed or rehabilitated as any of the following:
(I)An owner-occupied single-family dwelling.
(II)An owner-occupied unit in a multifamily dwelling.
(III)A member-occupied unit in a limited equity housing cooperative.
(IV)A rental housing development.
(ii)Improvements on the property are or will be available for use and ownership or for rent by qualified persons, as defined in paragraph (6) of subdivision (c) of Section 214.18 of the Revenue and Taxation Code.
(iii)(I)A deed restriction or other instrument, requiring a contract or contracts serving as an enforceable restriction on the sale or resale value of owner-occupied units or on the affordability of rental units is recorded on or before the lien date following the acquisition of the property by the community land trust.
(II)For the purpose of this clause, the following definitions apply:
(ia)A contract or contracts serving as an enforceable restriction on the sale or resale value of owner-occupied units means a contract described in paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.
(ib)A contract or contracts serving as an enforceable restriction on the affordability of rental units means an enforceable and verifiable agreement with a public agency, a recorded deed restriction, or other legal document described in subparagraph (A) of paragraph (2) of subdivision (g) of Section 214 of the Revenue and Taxation Code.
(iv)A copy of the deed restriction or other instrument shall be provided to the assessor.
(S)(i)For local agencies whose primary mission or purpose is to supply the public with a transportation system, surplus land that is developed for commercial, or industrial uses or activities, including nongovernmental retail, entertainment, or office development or for the sole purpose of investment or generation of revenue, if the agency meets all of the following conditions:
(I)The agency has an adopted land use plan or policy that designates at least 50 percent of the of the gross acreage covered by the adopted land use plan or policy for residential purposes. The adopted land use plan or policy shall also require the development of at least 300 residential units, or at least 10 residential units per gross acre, averaged across all land covered by the land use plan or policy, whichever is greater.
(II)The agency has an adopted land use plan or policy that requires at least 25 percent of all residential units to be developed on the parcels covered by the adopted land use plan or policy made available to lower income households, as defined in Section 50079 of the Health and Safety Code, at an affordable sales price or rented at an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing. These terms shall be included in the land use plan or policy and dictate that they will be contained in a covenant or restriction recorded against the surplus land at the time of disposition that shall run with the land and be enforceable against any owner or lessee who violates the covenant or restriction and each successor in interest who continues the violation.
(III)Land disposed of for residential purposes shall issue a competitive request for proposals subject to the local agencys open, competitive solicitation process or put out to open, competitive bid by the local agency, provided that all entities identified in subdivision (a) of Section 54222 are invited to participate.
(IV)Prior to entering into an agreement to dispose of a parcel for non-residential development on land designated for the purposes authorized pursuant to this subparagraph in an agencys adopted land use plan or policy, the agency, since January 1, 2020, must have entered into an agreement to dispose of a minimum of 25 percent of the land designated for affordable housing pursuant to subclause (II).
(ii)The agency may exempt at one time all parcels covered by the adopted land use plan or policy pursuant to this subparagraph.
(2)Notwithstanding paragraph (1), a written notice of the availability of surplus land for open-space purposes shall be sent to the entities described in subdivision (b) of Section 54222 prior to before disposing of the surplus land, provided the land does not meet the criteria in subparagraph (H) of paragraph (1), if the land is any of the following:
(A)Within a coastal zone.
(B)Adjacent to a historical unit of the State Parks System.
(C)Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places.
(D)Within the Lake Tahoe region as defined in Section 66905.5.
(g)This section shall remain in effect only until January 1, 2034, and as of that date is repealed.(g)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.
SEC. 2.Section 54221 of the Government Code, as added by Section 4 of Chapter 40 of the Statutes of 2023, is repealed.54221.(a)(1)Local agency means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.(2)The Legislature finds and declares that the term district as used in this article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law.(b)(1) Surplus land means land owned in fee simple by any local agency for which the local agencys governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agencys use. Land shall be declared either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures. A local agency, on an annual basis, may declare multiple parcels as surplus land or exempt surplus land.(2)Surplus land includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.(3)Nothing in this article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with Section 54226.(c)(1)Except as provided in paragraph (2), agencys use shall include, but not be limited to, land that is being used, is planned to be used pursuant to a written plan adopted by the local agencys governing board for, or is disposed to support pursuant to subparagraph (B) of paragraph (2) agency work or operations, including, but not limited to, utility sites, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, and buffer sites near sensitive governmental uses, including, but not limited to, wastewater treatment plants.(2)(A) Agencys use shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agencys use.(B)In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, agencys use may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agencys governing body takes action in a public meeting declaring that the use of the site will do either of the following:(i)Directly further the express purpose of agency work or operations.(ii)Be expressly authorized by a statute governing the local agency, provided the district complies with Section 54233.5 where applicable.(d)Open-space purposes means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources.(e)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.(f)(1) Except as provided in paragraph (2), exempt surplus land means any of the following:(A)Surplus land that is transferred pursuant to Section 25539.4 or 37364.(B)Surplus land that is (i) less than 5,000 square feet in area, (ii) less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet in area, whichever is less, or (iii) has no record access and is less than 10,000 square feet in area; and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. If the surplus land is not sold to an owner of contiguous land, it is not considered exempt surplus land and is subject to this article.(C)Surplus land that a local agency is exchanging for another property necessary for the agencys use.(D)Surplus land that a local agency is transferring to another local, state, or federal agency for the agencys use, or to a federally recognized California Indian tribe.(E)Surplus land that is a former street, right-of-way, or easement, and is conveyed to an owner of an adjacent property.(F)Surplus land that is put out to open, competitive bid by a local agency, provided all entities identified in subdivision (a) of Section 54222 will be invited to participate in the competitive bid process, for either of the following purposes:(i)A housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located.(ii)A mixed-use development that is more than one acre in area, that includes not less than 300 housing units, and that restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.(G)Surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. An existing nonresidential land use designation on the surplus land is not a legal restriction that would make housing prohibited for purposes of this subparagraph. Nothing in this article limits a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land.(H)Surplus land that was granted by the state in trust to a local agency or that was acquired by the local agency for trust purposes by purchase or exchange, and for which disposal of the land is authorized or required subject to conditions established by statute.(I)Land that is subject to Sections 17388, 17515, 17536, 81192, 81397, 81399, 81420, and 81422 of the Education Code and Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code, unless compliance with this article is expressly required.(J)Surplus land that is a former military base that was conveyed by the federal government to a local agency, and is subject to Article 8 (commencing with Section 33492.125) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, provided that all of the following conditions are met:(i)The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses, and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base.(ii)The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least 25 percent of the initial 1,400 residential units developed shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.(iii)Prior to disposition of the surplus land, the agency adopts written findings that the land is exempt surplus land pursuant to this subparagraph.(iv)Prior to the disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agencys project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient.(v)The agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph or the settlement agreement.(K)Real property that is used by a district for agencys use expressly authorized in subdivision (c).(L)Land that has been transferred before June 30, 2019, by the state to a local agency pursuant to Section 32667 of the Streets and Highways Code and has a minimum planned residential density of at least 100 dwelling units per acre, and includes 100 or more residential units that are restricted to persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing. For purposes of this paragraph, not more than 20 percent of the affordable units may be restricted to persons and families of moderate income and at least 80 percent of the affordable units must be restricted to persons and families of lower income as defined in Section 50079.5 of the Health and Safety Code.(2)Notwithstanding paragraph (1), a written notice of the availability of surplus land for open-space purposes shall be sent to the entities described in subdivision (b) of Section 54222 prior to disposing of the surplus land, provided the land does not meet the criteria in subparagraph (H) of paragraph (1), if the land is any of the following:(A)Within a coastal zone.(B)Adjacent to a historical unit of the state park system.(C)Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places.(D)Within the Lake Tahoe region as defined in Section 66905.5.(g)This section shall become operative on January 1, 2034.SEC. 2.SEC. 3.Section 54222 of the Government Code is amended to read:54222.Except as provided in Division 23 (commencing with Section 33000) of the Public Resources Code, any local agency disposing of surplus land, declared pursuant to subdivision (b) of Section 54221.5, shall send, before disposing of that property or participating in negotiations to dispose of that property with a prospective transferee, a written notice of availability of the property to all of the following:
(a)(1)A written notice of availability for developing low- and moderate-income housing, in a form prescribed by the Department of Housing and Community Development, housing shall be sent to any local public entity, as defined in Section 50079 of the Health and Safety Code, that has jurisdiction where the surplus land is located. Housing sponsors, as defined by Section 50074 of the Health and Safety Code, that have notified the Department of Housing and Community Development of their interest in surplus land shall be sent a notice of availability for the purpose of developing low- and moderate-income housing. All notices shall be sent by electronic mail, or by certified mail, and shall include the location and a description of the property.
(2)The Department of Housing and Community Development shall maintain on its internet website an up-to-date listing of, and a link to, all notices of availability throughout the state and a listing of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.
(b)A written notice of availability for open-space purposes shall be sent:
(1)To any park or recreation department of any city within which the surplus land is located.
(2)To any park or recreation department of the county within which the surplus land is located.
(3)To any regional park authority having jurisdiction within the area in which the surplus land is located.
(4)To the State Resources Agency or any agency that may succeed to its powers.
(c)A written notice of availability of land suitable for school facilities construction or use by a school district for open-space purposes shall be sent to any school district that has jurisdiction where the surplus land is located.
(d)A written notice of availability for developing property located within an infill opportunity zone designated pursuant to Section 65088.4 or within an area covered by a transit village plan adopted pursuant to the Transit Village Development Planning Act of 1994 (Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7) shall be sent to any county, city, city and county, successor agency to a former redevelopment agency, public transportation agency, or housing authority within whose jurisdiction the surplus land is located.
(e)The entity desiring to purchase or lease the surplus land for any of the purposes authorized by this section shall notify in writing the disposing agency of its interest in purchasing or leasing the land within 60 days after the agencys notice of availability is sent via certified mail or provided via electronic mail.
(f) For the purposes of this section, participating in negotiations does not include the any of the following:
(f)(1)For the purposes of this section, participating in negotiations does not include the The commissioning of appraisals, due diligence prior to disposition, discussions with brokers or real estate agents not representing a potential buyer, or other studies to determine value or best use of land, issuance of a request for qualifications, development of marketing materials, or discussions conducted exclusively among local agency employees and elected officials.
(2)Issuing a request for proposals or request for qualifications to the entities in subdivision (a) of Section 54222 for the purposes of complying with subparagraphs (A), (F), (G), (H), or (I) of paragraph (1) of subdivision (f) of Section 54221.
(3)Negotiating a lease, exclusive negotiating agreement, or option agreement for the purposes of complying with subparagraphs (A), (F), (G), (H), or (I) of paragraph (1) of subdivision (f) of Section 54221.
(4)Negotiating with a developer to determine if the local agency can satisfy the disposal exemption requirements described in paragraph (2) of subdivision (d) of Section 54221.
SEC. 3.SEC. 4.Section 54222.5 of the Government Code is amended to read:54222.5.An entity proposing to use the surplus land for developing low- and moderate-income housing shall agree to make available not less than 25 percent of the total number of units developed on the parcels at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or affordable rent, as defined in Section 50053 of the Health and Safety Code, to lower income households, as defined in Section 50079.5 of the Health and Safety Code. Rental units shall remain affordable to, and occupied by, lower income households for a period of at least 55 years. minimum of 55 years for rental housing, 45 years for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with paragraph (2) of subdivision (c) of Section 65915. These requirements shall be contained in a covenant or restriction recorded against the surplus land at the time of sale, that shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:
(a)The local agency that disposed of the surplus land.
(b)A resident of a unit subject to this section.
(c)A residents association with members who reside in units subject to this section.
(d)A former resident of a unit subject to this section who last resided in that unit.
(e)An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:
(1)Is of low or moderate income, pursuant to Section 50093 of the Health and Safety Code.
(2)Is able and willing to occupy that particular unit.
(3)Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.
(f)A person on an affordable housing waiting list who is of low or moderate income, pursuant to Section 50093 of the Health and Safety Code, and who is able and willing to occupy a unit subject to this section.
SEC. 4.SEC. 5.Section 54223 of the Government Code is amended to read:54223.(a)After the disposing agency has received a notice of interest from the entity desiring to purchase or lease the surplus land on terms that comply with this article, the disposing agency and the entity shall enter into good faith negotiations to determine a mutually satisfactory sales price and terms or lease terms. If the price or terms cannot be agreed upon after a good faith negotiation period of not less than 90 days, the local agency may dispose of the surplus land without further regard to this article, except that Section 54233 shall apply.
(b)Residential use shall be deemed an acceptable use for the surplus land for the purposes of good faith negotiations with a local agency conducted pursuant to this article. Nothing in this subdivision shall restrict a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land. Except as provided in subdivision (c), terms agreed to pursuant to the negotiations shall not do any of the following:
(1)Disallow residential use of the site as a condition of the disposal.
(2)Reduce the allowable number of residential units or the maximum lot coverage below what may be allowed by zoning or general plan requirements.
(3)Require as a condition of disposal, any design standards or architectural requirements that would have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, other than the minimum standards required by general plan, zoning, and subdivision standards and criteria.
(c)Terms agreed to pursuant to the negotiations required by subdivision (a) may include limitations on residential use or density if, without the limitations, the residential use or density would have a specific, adverse impact, supported by written findings, upon the public health or safety or upon the operation or facilities of a local agency, and there is no feasible method to satisfactorily mitigate the impact.
SEC. 5.SEC. 6.Section 54224 of the Government Code is amended to read:54224.Nothing in this article shall preclude a local agency that purchases surplus land from a disposing agency pursuant to this article from reconveying the surplus land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing as authorized under other provisions of law.
SEC. 6.SEC. 7.Section 54225 of the Government Code is amended to read:54225.Any local agency disposing of surplus land to an entity described in Section 54222 that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land. The payment period for surplus land disposed of for housing for persons and families of low and moderate income may exceed 20 years, but the payment period shall not exceed the term that the land is required to be used for low- or moderate-income housing.
SEC. 8.Section 54226 of the Government Code is amended to read:54226.(a)This article shall not be interpreted to limit the power of any local agency to sell or lease surplus land at fair market value or at less than fair market value, and any sale or lease at or less than fair market value consistent with this article shall not be construed as inconsistent with an agencys purpose. No provision of this article shall be applied when it conflicts with any other provision of statutory law.
(b)This article shall not prevent a local agency from obtaining fair market value for the disposition of surplus land consistent with this section.
(c)This article shall not be interpreted to limit a local agencys authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land.
(d)This article shall not be interpreted to require a local agency to dispose of land that is determined to be surplus.
(e)No provision of this article shall be applied when it conflicts with any other provision of statutory law.
SEC. 7.SEC. 9.Section 54227 of the Government Code is amended to read:54227.(a)In the event that any local agency disposing of surplus land receives a notice of interest to purchase or lease that land from more than one of the entities to which notice of availability was given pursuant to this article, the local agency shall give first priority to the entity or entities that agree to use the site for housing that meets the requirements of Section 54222.5. If the local agency receives offers from more than one entity that agrees to meet the requirements of Section 54222.5, then the local agency shall give priority to the entity that proposes to provide the greatest number of units that meet the requirements of Section 54222.5. In the event that more than one entity proposes the same number of units that meet the requirements of Section 54222.5, priority shall be given to the entity that proposes the deepest average level of affordability for the affordable units. A local agency may negotiate concurrently with all entities that provide notice of interest for the purpose of developing low- and moderate-income housing that meets the requirements of Section 54222.5.
(b)Notwithstanding subdivision (a), first priority shall be given to an entity that agrees to use the site for park or recreational purposes if the land being offered is already being used and will continue to be used for park or recreational purposes, or if the land is designated for park and recreational use in the local general plan and will be developed for that purpose.
SEC. 10.Section 54230 of the Government Code is amended to read:54230.(a)(1)On or before December 31 of each year, each county and each city shall make a central inventory of all surplus land, as defined in subdivision (b) of Section 54221, and all lands in excess of its foreseeable needs, if any, identified pursuant to Section 50569, located in all urbanized areas and urban clusters, as designated by the United States Census Bureau, within the jurisdiction of the county or city that the county or city or any of its departments, agencies, or authorities owns or controls.
(2)(A)Subject to subparagraph (C), each county and each city shall make a description of each parcel described in paragraph (1) and the present use of the parcel a matter of public record and shall report this information to the Department of Housing and Community Development no later than April 1 of each year, beginning April 1, 2021, in a form prescribed by the department, as part of its annual progress report submitted pursuant to paragraph (2) of subdivision (a) of Section 65400.
(B)The information reported pursuant to this paragraph shall include, but not be limited to, the following information with respect to each site:
(i)Street address, or similar location information.
(ii)Assessors parcel number.
(iii)Existing use.
(iv)Whether the site is surplus land or exempt surplus land.
(v)Size in acres.
(C)The Department of Housing and Community Development may, in its discretion, delay implementation of this paragraph until April 1, 2022.
(3)Each county and each city, upon request, shall provide a list of its surplus land and excess surplus land to an individual, limited dividend corporation, housing corporation, or nonprofit corporation without charge.
(b)The Department of Housing and Community Development shall provide the information reported to it by a city or county pursuant to paragraph (2) of subdivision (a) to the Department of General Services for inclusion in a digitized inventory of all state-owned parcels that are in excess of state needs.
(c)The Department of Housing and Community Development may review, adopt, amend, and repeal standards, forms, and definitions in order to implement this section. Any standards, forms, or definitions adopted, amended, or repealed pursuant to this subdivision are hereby exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2).
SEC. 8.SEC. 11.Section 54230.5 of the Government Code is amended to read:54230.5.(a)(1)A local agency that disposes of surplus land in violation of this article after receiving a notification from the Department of Housing and Community Development pursuant to subdivision (b) that the local agency is in violation of this article shall be liable for a penalty of 30 percent of the greater of the final sale price, or of the fair market value of the surplus land at the time of disposition, as determined by an independent appraisal of the surplus land sold in violation of this article of the applicable disposition value for a first violation, and 50 percent of the greater of the two sums, for any subsequent violation. These penalties shall not apply to violations that do not impact the availability and priority of land for of, or the construction of, housing affordable to lower income households or the ultimate disposition of the land in compliance with this article, such as clerical errors. An entity identified in Section 54222 or a person who would have been eligible to apply for residency in any affordable housing developed or a housing organization as defined in Section 65589.5, or any beneficially interested person or entity may bring an action to enforce this section. A local agency shall have 60 days to cure or correct an alleged violation before an action may be brought to enforce this section, unless the local agency disposes of the surplus land before curing or correcting the alleged violation, or the department deems the alleged violation not to be a violation in less than 60 days.
(2)For the purposes of this section, disposition value means:
(A)In the case of a sale, the greater of the final sale price of the land or the fair market value of the surplus land at the time of sale, as determined by an independent appraisal of the surplus land sold in violation of this article.
(B)In the case of a lease, the discounted net present value of the fair market value of the lease as of the date the lease was entered into, as determined by an independent appraisal of the lease of surplus land in violation of this article.
(2)(3)A penalty assessed pursuant to this subdivision shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(3)(4)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(b)(1)Before agreeing to terms for the disposition of surplus land, a local agency shall provide to the Department of Housing and Community Development a description of the notices of availability sent, and negotiations conducted with any responding entities, in regard to the disposal of the parcel of surplus land and a copy of any restrictions to be recorded against the property pursuant to Section 54222.5, 54233, or 54233.5, whichever is applicable, in a form prescribed by the Department of Housing and Community Development. A local agency may submit this information after it has sent notices of availability required by Section 54222 and concluded negotiations with any responding agencies. A local agency shall not be liable for the penalty imposed by subdivision (a) if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the description.
(2)The Department of Housing and Community Development shall do all of the following:
(A)Make available educational resources and materials that inform each agency of its obligations under this article and that provide guidance on how to comply with its provisions.
(B)Review information submitted pursuant to paragraph (1).
(C)Submit written findings to the local agency within 30 days of receipt of the description required by paragraph (1) from the local agency if the proposed disposal of the land will violate this article.
(D)Review, adopt, amend, or repeal guidelines to establish uniform standards to implement this section. The guidelines adopted pursuant to this subdivision are not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2.
(E)Provide the local agency reasonable time, but not less than 60 days, to respond to the findings before taking any other action authorized by this section.
(3)(A)The local agency shall consider findings made by the Department of Housing and Community Development pursuant to subparagraph (C) of paragraph (2) and shall do one of the following:
(i)Correct any issues identified by the Department of Housing and Community Development.
(ii)Provide written findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings.
(B)If the local agency does not correct issues identified by the Department of Housing and Community Development, does not provide findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings, or if the Department of Housing and Community Development finds that the local agencys findings are deficient in addressing the issues identified by the Department of Housing and Community Development, the Department of Housing and Community Development shall notify the local agency, and may notify the Attorney General, that the local agency is in violation of this article.
(c)The Department of Housing and Community Development shall implement the changes in this section made by the act adding this subdivision commencing on January 1, 2021.
(d)Notwithstanding subdivision (c), this section shall not be construed to limit any other remedies authorized under law to enforce this article including public records act requests pursuant to Division 10 (commencing with Section 7920.000) of Title 1.
SEC. 12.Section 54234 of the Government Code is amended to read:54234.(a)(1)If a local agency, as of September 30, 2019, has entered into an exclusive negotiating agreement or legally binding agreement to dispose of property, the provisions of this article as it existed on December 31, 2019, shall apply, without regard to the changes made to this article by Chapter 664 of the Statutes of 2019, and all subsequent amendments to this article, to the disposition of the property to the party that had entered into such agreement or its successors or assigns, provided the disposition is completed by either of the following dates, as applicable: December 31, 2027.
(A)December 31, 2022, unless the conditions described in subparagraph (B) apply.(B)December 31, 2024, if the property is located in a charter city with a population of over 2,000,000 persons and a local agency has an option agreement duly authorized by the local agencys governing body to purchase the property from the former redevelopment agency.(2)If a local agency, as of September 30, 2019, has entered into an exclusive negotiating agreement or legally binding agreement to dispose of property related to the Metro North Hollywood Joint Development Project, the provisions of this article as it existed on December 31, 2019, shall apply, without regard to the changes made to this article by Chapter 664 of the Statutes of 2019, and all subsequent amendments to this article, to the disposition of the property to the party that had entered into such agreement or its successors or assigns, provided the disposition is completed not later than December 31, 2024. 2027.
(3)If a local agency, as of September 30, 2019, has issued a competitive request for proposals for the development of property that includes at least 100 residential units and at least 25 percent of the total residential units are restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable housing cost or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing, the provisions of this article as it existed on December 31, 2019, shall apply, without regard to the changes made to this article by Chapter 664 of the Statutes of 2019, and all subsequent amendments to this article, to the disposition of the property to the party that participated in the competitive request for proposals process, or the partys successors or assigns, provided a disposition and development agreement for the property is entered into not later than December 31, 2024. 2027. A joint development involving multiple parcels shall meet the requirements of this paragraph so long as there was a single competitive request for proposals process and the joint development otherwise meets all the requirements listed in this paragraph. A disposition and development agreement means an agreement between the developer and the local agency that binds the developer to construct a specific development and the local agency to dispose of the property if permits and other entitlements for the project are obtained. This paragraph shall not apply to land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code, or that has been designated in a long-range property management plan pursuant to Section 34191.5 of the Health and Safety Code. If the property is not disposed of pursuant to a qualifying disposition and development agreement before March 31, 2026, or if no disposition and development agreement is entered into before December 31, 2024, 2027, then future negotiations for and disposition of the property shall be subject to the provisions of this article.
(4)(2)The dates specified in paragraphs (1) to (3), inclusive, by which the disposition of property must be completed shall be extended if the disposition of property, the local agencys right or ability to dispose of the property, or a development project for which the property is proposed to be transferred, is the subject of judicial challenge, by petition for writ of mandate, complaint for declaratory relief or otherwise, to the date that is six months following the final conclusion of such litigation.
(b)(1)With respect to land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code, or that has been designated in a long-range property management plan pursuant to Section 34191.5 of the Health and Safety Code, either for sale or retained for future development, this article as it existed on December 31, 2019, without regard to the changes made to this article by Chapter 664 of the Statutes of 2019, and all subsequent amendments to this article, which take effect on January 1, 2020, shall apply to the disposition of that property if both of the following apply:
(A)An exclusive negotiating agreement or legally binding agreement for disposition is was entered into not later than December 31, 2020.
(B)The disposition is completed not later than either of the following dates, as applicable: December 31, 2027.
(i)December 31, 2022, unless the conditions described in clause (ii) apply.(ii)December 31, 2024, if the property is located in a charter city with a population of over 2,000,000 persons and a local agency has an option agreement duly authorized by the local agencys governing body to purchase the property from the former redevelopment agency.(2)If land described in paragraph (1) is the subject of litigation, including, but not limited to, litigation challenging the disposition of such property, the right or ability to dispose of the property, or a development project for which such property is proposed to be transferred, the dates specified in paragraph (1) shall be extended to the date that is six months following the final conclusion of such litigation.
(c)Nothing in this section shall authorize or excuse any violation of the provisions of this article as it existed on December 31, 2019, in the disposition of any property to which such provisions apply pursuant to subdivision (a) or (b).
(d)If a local agency terminated an exclusive negotiating agreement or legally binding agreement to dispose of property pursuant to an earlier, superseded version of subdivision (a) or (b) of this section due to the lapse of a statutory deadline for completing the disposition of property the local agency may, in its sole reasonable discretion, elect whether to ask the party to the terminated exclusive negotiating agreement or legally binding agreement to dispose of property to consider reviving the terminated agreement. If the local agency and other party fully execute an instrument reviving the terminated agreement before January 1, 2024, on substantially the same terms and conditions as the terminated agreement, the revived agreement shall be subject to subdivision (a) or (b), as applicable, of this section.
SEC. 9.SEC. 13.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 14.Section 1.5 of this bill incorporates amendments to Section 54221 of the Government Code proposed by both this bill and Senate Bill 747. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2024, (2) each bill amends Section 54221 of the Government Code, and (3) this bill is enacted after Senate Bill 747, in which case Section 1 of this bill shall not become operative.
SEC. 15.This act shall become operative only if Senate Bill 747 of the 202324 Regular Session is enacted and becomes effective.
As used in this article, the following definitions shall apply:
(a)(1)Local agency means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.
(2)The Legislature finds and declares that the term district as used in this article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law.
(b)(1)Surplus land means land owned in fee simple by any local agency that is not necessary for the agencys use, except as defined in subparagraph (B) of paragraph (2) of subdivision (c), as declared by the local agency pursuant to Section 54221.5.(b)(1)Surplus land means land owned in fee simple by any local agency for which the local agencys governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agencys use. Land shall be declared either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures. A local agency, on an annual basis, may declare multiple parcels as surplus land or exempt surplus land.
(2)Surplus land includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.
(3)Nothing in this article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with Section 54226.
(4)Notwithstanding paragraph (1), a local agency is not required to make a declaration at a public meeting for land that is exempt surplus land pursuant to subparagraph (A), (B), (E), (J), (K), or (O) of paragraph (1) of subdivision (f) if the local agency identifies the land in a notice that is published and available for public comment, including notice to the entities identified in subdivision (a) of Section 54222, at least 30 days before the exemption takes effect.
(c)(1)Except as provided in paragraph (2), agencys use shall include, but not be limited to, land that is being used, or is planned to be used pursuant to a written plan adopted by the local agencys governing board, for agency work or operations, including, but not limited to, utility sites, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, and buffer sites near sensitive governmental uses, including, but not limited to, wastewater treatment plants. Agencys use by a local agency that is a district shall also include land disposed for uses described in subparagraph (B) of paragraph (2).
(2)(A)Agencys use shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agencys use.
(B)In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, agencys use may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agencys governing body takes action in a public meeting declaring that the use of the site will do one of the following:
(i)Directly further the express purpose of agency work or operations.
(ii)Be expressly authorized by a statute governing the local agency, provided the district complies with Section 54233.5 if applicable.
(d)Open-space purposes means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources.
(e)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.
(f)(1)Except as provided in paragraph (2), exempt surplus land means any of the following:
(A)Surplus land that is transferred pursuant to Section 25539.4 or 37364.
(B)Surplus land that is (i) less than 5,000 square feet in area, (ii) less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet in area, whichever is less, or (iii) has no record access and is less than 10,000 square feet in area; and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. If the surplus land is not sold to an owner of contiguous land, it is not considered exempt surplus land and is subject to this article.
(C)Surplus land that a local agency is exchanging for another property necessary for the agencys use.
(D)Surplus land that a local agency is transferring to another local, state, or federal agency for the agencys use, or to a federally recognized California Indian tribe.
(E)Surplus land that is a former street, right of way, or easement, and is conveyed to an owner of an adjacent property.
(F)(i)Surplus land that is a housing development, that may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located.
(ii)The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(G)(i)Surplus land that is subject to a local agencys open, competitive solicitation or that is put to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process, for a housing or mixed-use development that is more than one acre and less than 10 acres in area, that includes not less than 300 residential units, and that restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(ii)The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(H)(i)Surplus land totaling 10 or more acres, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute. That surplus land shall be subject to a local agencys open, competitive solicitation process or put out to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process for a housing or mixed-use development.
(ii)The aggregate development shall include the greater of the following:
(I)Three hundred residential units.
(II)A number of residential units equal to 10 times the number of acres of the surplus land or 10,000 residential units, whichever is less.
(iii)At least 25 percent of the residential units shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent pursuant to Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(iv)If nonresidential development is included in the development pursuant to this subparagraph, at least 25 percent of the total planned units affordable to lower income households shall be made available for lease or sale and permitted for use and occupancy before or at the same time with every 25 percent of nonresidential development made available for lease or sale and permitted for use and occupancy.
(v)A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph. A local agency shall only dispose of land pursuant to this subparagraph through a disposition and development agreement that includes an indemnification clause that provides that if an action occurs after disposition violates this subparagraph, the person or entity that acquired the property shall be liable for the penalties.
(vi)The requirements of clauses (i) to (v), inclusive, shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(I)Surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. The legal restriction shall be documented and verified in writing by the relevant agencies that have authority relating to the restrictions. A declaration of exemption pursuant to this paragraph shall be supported by documentary evidence, including documents establishing and implementing the restriction, and written findings adopted in the same manner as is described in subdivision (b). An existing nonresidential land use designation on the surplus land is not a legal restriction that would make housing prohibited for purposes of this subparagraph. Nothing in this article limits a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land.
(J)Surplus land that was granted by the state in trust to a local agency or that was acquired by the local agency for trust purposes by purchase or exchange, and for which disposal of the land is authorized or required subject to conditions established by statute.
(K)Land that is subject to Sections 17388, 17515, 17536, 81192, 81397, 81399, 81420, and 81422 of the Education Code and Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code, unless compliance with this article is expressly required.
(L)Surplus land that is a former military base that was conveyed by the federal government to a local agency, and is subject to Article 8 (commencing with Section 33492.125) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, provided that all of the following conditions are met:
(i) The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses, and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base.
(ii)The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least 25 percent of the initial 1,400 residential units developed shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(iii)Before disposition of the surplus land, the agency adopts written findings that the land is exempt surplus land pursuant to this subparagraph.
(iv)Before disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agencys project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient.
(v)The agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph or the settlement agreement.
(M)Real property that is used by a district for agencys use expressly authorized in subdivision (c).
(N)Land that has been transferred before June 30, 2019, by the state to a local agency pursuant to Section 32667 of the Streets and Highways Code and has a minimum planned residential density of at least 100 dwelling units per acre, and includes 100 or more residential units that are restricted to persons and families of low or moderate income, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing. For purposes of this paragraph, not more than 20 percent of the affordable units may be restricted to persons and families of moderate income and at least 80 percent of the affordable units must be restricted to lower income households as defined in Section 50079.5 of the Health and Safety Code.
(O) Land that is owned by a California public-use airport on which residential use is prohibited pursuant to Federal Aviation Administration Order 5190.6B, Airport Compliance Program, Chapter 20 Compatible Land Use and Airspace Protection.
(2)Notwithstanding paragraph (1), a written notice of the availability of surplus land for open-space purposes shall be sent to the entities described in subdivision (b) of Section 54222 before disposing of the surplus land, provided the land does not meet the criteria in subparagraph (H) of paragraph (1), if the land is any of the following:
(A)Within a coastal zone.
(B)Adjacent to a historical unit of the State Parks System.
(C)Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places.
(D)Within the Lake Tahoe region as defined in Section 66905.5.
SEC. 2.Section 54221.5 is added to the Government Code, to read:54221.5.(a)Before taking any action to dispose of land, a local agency shall declare that the land is either surplus land or exempt surplus land as specified in this section. The declaration shall be supported by written findings before the local agency may dispose of the land in a manner that is consistent with this section and the local agencys policies.(b)Except as provided in subdivision (c), a local agency shall take formal action at a regular public meeting to declare that land is either surplus land or exempt surplus land.(c)Notwithstanding subdivision (b), a local agency is not required to make a declaration at a public meeting for land that is exempt surplus land pursuant to subparagraph (A), (B), (E), (J), (K), or (O) of paragraph (1) of subdivision (f) of Section 54221 if the local agency identifies the land in a notice that is published and available for public comment, including notice to the entities identified in subdivision (a) of Section 54222, at least 30 days before the exemption takes effect.(d)Notwithstanding Section 54222.3, 30 days before disposing of land declared exempt surplus land, a local agency shall provide the Department of Housing and Community Development a written notification of its declaration and findings in a form and manner prescribed by the department. (e)A local agency may, on an annual basis, declare multiple parcels as surplus land or exempt surplus land.SEC. 3. SEC. 2.Section 54222 of the Government Code is amended to read:54222.Except as provided in Division 23 (commencing with Section 33000) of the Public Resources Code, any local agency disposing of surplus land, declared pursuant to subdivision (b) of Section 54221.5, shall send, before disposing of that property or participating in negotiations to dispose of that property with a prospective transferee, a written notice of availability of the property to all of the following:
(a)(1)A written notice of availability for developing low- and moderate-income housing, in a form prescribed by the Department of Housing and Community Development, shall be sent to any local public entity, as defined in Section 50079 of the Health and Safety Code, that has jurisdiction where the surplus land is located. Housing sponsors, as defined by Section 50074 of the Health and Safety Code, that have notified the Department of Housing and Community Development of their interest in surplus land shall be sent a notice of availability for the purpose of developing low- and moderate-income housing. All notices shall be sent by electronic mail, or by certified mail, and shall include the location and a description of the property.
(2)The Department of Housing and Community Development shall maintain on its internet website an up-to-date listing of, and a link to, all notices of availability throughout the state and a listing of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.
(b)A written notice of availability for open-space purposes shall be sent:
(1)To any park or recreation department of any city within which the surplus land is located.
(2)To any park or recreation department of the county within which the surplus land is located.
(3)To any regional park authority having jurisdiction within the area in which the surplus land is located.
(4)To the State Resources Agency or any agency that may succeed to its powers.
(c)A written notice of availability of land suitable for school facilities construction or use by a school district for open-space purposes shall be sent to any school district that has jurisdiction where the surplus land is located.
(d)A written notice of availability for developing property located within an infill opportunity zone designated pursuant to Section 65088.4 or within an area covered by a transit village plan adopted pursuant to the Transit Village Development Planning Act of 1994 (Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7) shall be sent to any county, city, city and county, successor agency to a former redevelopment agency, public transportation agency, or housing authority within whose jurisdiction the surplus land is located.
(e)The entity desiring to purchase or lease the surplus land for any of the purposes authorized by this section shall notify in writing the disposing agency of its interest in purchasing or leasing the land within 60 days after the agencys notice of availability is sent via certified mail or provided via electronic mail.
(f)For the purposes of this section, participating in negotiations does not include the commissioning of appraisals, due diligence prior to disposition, discussions with brokers or real estate agents not representing a potential buyer, or other studies to determine value or best use of land, issuance of a request for qualifications, development of marketing materials, or discussions conducted exclusively among local agency employees and elected officials.
SEC. 4. SEC. 3.Section 54222.5 of the Government Code is amended to read:54222.5.An entity proposing to use the surplus land for developing low- and moderate-income housing shall agree to make available not less than 25 percent of the total number of units developed on the parcels at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or affordable rent, as defined in Section 50053 of the Health and Safety Code, to lower income households, as defined in Section 50079.5 of the Health and Safety Code. Rental units shall remain affordable to, and occupied by, lower income households for a period of at least 55 years. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with paragraph (2) of subdivision (c) of Section 65915. These requirements shall be contained in a covenant or restriction recorded against the surplus land at the time of sale, that shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:
(a)The local agency that disposed of the surplus land.
(b)A resident of a unit subject to this section.
(c)A residents association with members who reside in units subject to this section.
(d)A former resident of a unit subject to this section who last resided in that unit.
(e)An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:
(1)Is of low or moderate income, pursuant to Section 50093 of the Health and Safety Code.
(2)Is able and willing to occupy that particular unit.
(3)Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.
(f)A person on an affordable housing waiting list who is of low or moderate income, pursuant to Section 50093 of the Health and Safety Code, and who is able and willing to occupy a unit subject to this section.
SEC. 5. SEC. 4.Section 54223 of the Government Code is amended to read:54223.(a)After the disposing agency has received a notice of interest from the entity desiring to purchase or lease the surplus land on terms that comply with this article, the disposing agency and the entity shall enter into good faith negotiations to determine a mutually satisfactory sales price and terms or lease terms. If the price or terms cannot be agreed upon after a good faith negotiation period of not less than 90 days, the local agency may dispose of the surplus land without further regard to this article, except that Section 54233 shall apply.
(b)Residential use shall be deemed an acceptable use for the surplus land for the purposes of good faith negotiations with a local agency conducted pursuant to this article. Nothing in this subdivision shall restrict a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land. Except as provided in subdivision (c), terms agreed to pursuant to the negotiations shall not do any of the following:
(1)Disallow residential use of the site as a condition of the disposal.
(2)Reduce the allowable number of residential units or the maximum lot coverage below what may be allowed by zoning or general plan requirements.
(3)Require as a condition of disposal, any design standards or architectural requirements that would have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, other than the minimum standards required by general plan, zoning, and subdivision standards and criteria.
(c)Terms agreed to pursuant to the negotiations required by subdivision (a) may include limitations on residential use or density if, without the limitations, the residential use or density would have a specific, adverse impact, supported by written findings, upon the public health or safety or upon the operation or facilities of a local agency, and there is no feasible method to satisfactorily mitigate the impact.
SEC. 6. SEC. 5.Section 54224 of the Government Code is amended to read:54224.Nothing in this article shall preclude a local agency that purchases surplus land from a disposing agency pursuant to this article from reconveying the surplus land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing as authorized under other provisions of law.
SEC. 7. SEC. 6.Section 54225 of the Government Code is amended to read:54225.Any local agency disposing of surplus land to an entity described in Section 54222 that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land. The payment period for surplus land disposed of for housing for persons and families of low and moderate income may exceed 20 years, but the payment period shall not exceed the term that the land is required to be used for low- or moderate-income housing.
SEC. 8. SEC. 7.Section 54227 of the Government Code is amended to read:54227.(a)In the event that any local agency disposing of surplus land receives a notice of interest to purchase or lease that land from more than one of the entities to which notice of availability was given pursuant to this article, the local agency shall give first priority to the entity or entities that agree to use the site for housing that meets the requirements of Section 54222.5. If the local agency receives offers from more than one entity that agrees to meet the requirements of Section 54222.5, then the local agency shall give priority to the entity that proposes to provide the greatest number of units that meet the requirements of Section 54222.5. In the event that more than one entity proposes the same number of units that meet the requirements of Section 54222.5, priority shall be given to the entity that proposes the deepest average level of affordability for the affordable units. A local agency may negotiate concurrently with all entities that provide notice of interest for the purpose of developing low- and moderate-income housing that meets the requirements of Section 54222.5.
(b)Notwithstanding subdivision (a), first priority shall be given to an entity that agrees to use the site for park or recreational purposes if the land being offered is already being used and will continue to be used for park or recreational purposes, or if the land is designated for park and recreational use in the local general plan and will be developed for that purpose.
SEC. 9. SEC. 8.Section 54230.5 of the Government Code is amended to read:54230.5.(a)(1)A local agency that disposes of surplus land in violation of this article after receiving a notification from the Department of Housing and Community Development pursuant to subdivision (b) that the local agency is in violation of this article shall be liable for a penalty of 30 percent of the greater of the final sale price, or of the fair market value of the surplus land at the time of disposition, as determined by an independent appraisal of the surplus land sold in violation of this article for a first violation, and 50 percent of the greater of the two sums, for any subsequent violation. These penalties shall not apply to violations that do not impact the availability and priority of land for housing affordable to lower income households or the ultimate disposition of the land in compliance with this article, such as clerical errors. An entity identified in Section 54222 or a person who would have been eligible to apply for residency in any affordable housing developed or a housing organization as defined in Section 65589.5, or any beneficially interested person or entity may bring an action to enforce this section. A local agency shall have 60 days to cure or correct an alleged violation before an action may be brought to enforce this section, unless the local agency disposes of the surplus land before curing or correcting the alleged violation, or the department deems the alleged violation not to be a violation in less than 60 days.
(2)A penalty assessed pursuant to this subdivision shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(3)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(b)(1)Before agreeing to terms for the disposition of surplus land, a local agency shall provide to the Department of Housing and Community Development a description of the notices of availability sent, and negotiations conducted with any responding entities, in regard to the disposal of the parcel of surplus land and a copy of any restrictions to be recorded against the property pursuant to Section 54222.5, 54233, or 54233.5, whichever is applicable, in a form prescribed by the Department of Housing and Community Development. A local agency may submit this information after it has sent notices of availability required by Section 54222 and concluded negotiations with any responding agencies. A local agency shall not be liable for the penalty imposed by subdivision (a) if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the description.
(2)The Department of Housing and Community Development shall do all of the following:
(A)Make available educational resources and materials that inform each agency of its obligations under this article and that provide guidance on how to comply with its provisions.
(B)Review information submitted pursuant to paragraph (1).
(C)Submit written findings to the local agency within 30 days of receipt of the description required by paragraph (1) from the local agency if the proposed disposal of the land will violate this article.
(D)Review, adopt, amend, or repeal guidelines to establish uniform standards to implement this section. The guidelines adopted pursuant to this subdivision are not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2.
(E)Provide the local agency reasonable time, but not less than 60 days, to respond to the findings before taking any other action authorized by this section.
(3)(A)The local agency shall consider findings made by the Department of Housing and Community Development pursuant to subparagraph (C) of paragraph (2) and shall do one of the following:
(i)Correct any issues identified by the Department of Housing and Community Development.
(ii)Provide written findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings.
(B)If the local agency does not correct issues identified by the Department of Housing and Community Development, does not provide findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings, or if the Department of Housing and Community Development finds that the local agencys findings are deficient in addressing the issues identified by the Department of Housing and Community Development, the Department of Housing and Community Development shall notify the local agency, and may notify the Attorney General, that the local agency is in violation of this article.
(c)The Department of Housing and Community Development shall implement the changes in this section made by the act adding this subdivision commencing on January 1, 2021.
(d)Notwithstanding subdivision (c), this section shall not be construed to limit any other remedies authorized under law to enforce this article including public records act requests pursuant to Division 10 (commencing with Section 7920.000) of Title 1.
SEC. 10. SEC. 9.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
As used in this article, the following definitions shall apply:
(a)(1)Local agency means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.
(2)The Legislature finds and declares that the term district as used in this article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law.
(b)(1)Surplus land means land owned in fee simple by any local agency that is not necessary for the agencys use use, except as defined in subparagraph (B) of paragraph (2) of subdivision (c), as declared by the local agency pursuant to Section 54221.5.
(2)Surplus land includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.
(3)Nothing in this article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with Section 54226.
(c)(1)Except as provided in paragraph (2), agencys use shall include, but not be limited to, land that is being used, or is planned to be used pursuant to a written plan adopted by the local agencys governing board, for agency work or operations, including, but not limited to, utility sites, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, and buffer sites near sensitive governmental uses, including, but not limited to, wastewater treatment plants. Agencys use by a local agency that is a district shall also include land disposed for uses described in subparagraph (B) of paragraph (2).
(2)(A)Agencys use shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agencys use.
(B)In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, agencys use may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agencys governing body takes action in a public meeting declaring that the use of the site will do one of the following:
(i)Directly further the express purpose of agency work or operations.
(ii)Be expressly authorized by a statute governing the local agency, provided the district complies with Section 54233.5 if applicable.
(d)Open-space purposes means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources.
(e)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.
(f)(1)Except as provided in paragraph (2), exempt surplus land means any of the following:
(A)Surplus land that is transferred pursuant to Section 25539.4 or 37364.
(B)Surplus land that is (i) less than 5,000 square feet in area, (ii) less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet in area, whichever is less, or (iii) has no record access and is less than 10,000 square feet in area; and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. If the surplus land is not sold to an owner of contiguous land, it is not considered exempt surplus land and is subject to this article.
(C)Surplus land that a local agency is exchanging for another property necessary for the agencys use.
(D)Surplus land that a local agency is transferring to another local, state, or federal agency for the agencys use, or to a federally recognized California Indian tribe.
(E)Surplus land that is a former street, right of way, or easement, and is conveyed to an owner of an adjacent property.
(F)Surplus land that is a housing development, that may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located.
(G)Surplus land that is subject to a local agencys open, competitive solicitation or that is put to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process, for a housing or mixed-use development that is more than one acre and less than 10 acres in area, that includes not less than 300 residential units, and that restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(H)(i)Surplus land totaling 10 or more acres, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute. That surplus land shall be subject to a local agencys open, competitive solicitation process or put out to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process for a housing or mixed-use development.
(ii)The aggregate development shall include the greater of the following:
(I)Three hundred residential units.
(II)A number of residential units equal to 10 times the number of acres of the surplus land or 10,000 residential units, whichever is less.
(iii)At least 25 percent of the residential units shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent pursuant to Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(iv)If nonresidential development is included in the development pursuant to this subparagraph, at least 25 percent of the total planned units affordable to lower income households shall be made available for lease or sale and permitted for use and occupancy before or at the same time with every 25 percent of nonresidential development made available for lease or sale and permitted for use and occupancy.
(v)A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph.
(I)Surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. The legal restriction shall be documented and verified in writing by the relevant agencies that have authority relating to the restrictions. An existing nonresidential land use designation on the surplus land is not a legal restriction that would make housing prohibited for purposes of this subparagraph. Nothing in this article limits a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land.
(J)Surplus land that was granted by the state in trust to a local agency or that was acquired by the local agency for trust purposes by purchase or exchange, and for which disposal of the land is authorized or required subject to conditions established by statute.
(K)Land that is subject to Sections 17388, 17515, 17536, 81192, 81397, 81399, 81420, and 81422 of the Education Code and Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code, unless compliance with this article is expressly required.
(L)Surplus land that is a former military base that was conveyed by the federal government to a local agency, and is subject to Article 8 (commencing with Section 33492.125) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, provided that all of the following conditions are met:
(i) The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses, and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base.
(ii)The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least 25 percent of the initial 1,400 residential units developed shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(iii)Before disposition of the surplus land, the agency adopts written findings that the land is exempt surplus land pursuant to this subparagraph.
(iv)Before disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agencys project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient.
(v)The agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph or the settlement agreement.
(M)Real property that is used by a district for agencys use expressly authorized in subdivision (c).
(N)Land that has been transferred before June 30, 2019, by the state to a local agency pursuant to Section 32667 of the Streets and Highways Code and has a minimum planned residential density of at least 100 dwelling units per acre, and includes 100 or more residential units that are restricted to persons and families of low or moderate income, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing. For purposes of this paragraph, not more than 20 percent of the affordable units may be restricted to persons and families of moderate income and at least 80 percent of the affordable units must be restricted to lower income households as defined in Section 50079.5 of the Health and Safety Code.
(O)Land that is owned by a California public-use airport on which residential use is prohibited pursuant to Federal Aviation Administration Order 5190.6B, Airport Compliance Program, Chapter 20 Compatible Land Use and Airspace Protection.
(2)Notwithstanding paragraph (1), a written notice of the availability of surplus land for open-space purposes shall be sent to the entities described in subdivision (b) of Section 54222 before disposing of the surplus land, provided the land does not meet the criteria in subparagraph (H) of paragraph (1), if the land is any of the following:
(A)Within a coastal zone.
(B)Adjacent to a historical unit of the State Parks System.
(C)Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places.
(D)Within the Lake Tahoe region as defined in Section 66905.5.
SEC. 2.Section 54221.5 is added to the Government Code, to read:54221.5.(a)Before taking any action to dispose of land, a local agency shall declare that the land is either surplus land or exempt surplus land as specified in this section. The declaration shall be supported by written findings before the local agency may dispose of the land in a manner that is consistent with this section and the local agencys policies.
(b)Except as provided in subdivision (c), a local agency shall take formal action at a regular public meeting to declare that land is either surplus land or exempt surplus land.
(c)Notwithstanding subdivision (b), a local agency is not required to make a declaration at a public meeting for land that is exempt surplus land pursuant to subparagraphs subparagraph (A), (B), (E), (H), (I), or (M) (J), (K), or (O) of paragraph (1) of subdivision (f) of Section 54221 if the local agency identifies the land in a notice that is published and available for public comment, including notice to the entities identified in subdivision (a) of Section 54222, at least 30 days before the exemption takes effect.
(d)Notwithstanding Section 54222.3, 30 days before disposing of land declared exempt surplus land, a local agency shall provide the Department of Housing and Community Development a written notification of its declaration and findings in a form and manner prescribed by the department.
(e)A local agency may, on an annual basis, declare multiple parcels as surplus land or exempt surplus land.
SEC. 3.Section 54222 of the Government Code is amended to read:54222.Except as provided in Division 23 (commencing with Section 33000) of the Public Resources Code, any local agency disposing of surplus land, declared pursuant to subdivision (b) of Section 54221.5, shall send, before disposing of that property or participating in negotiations to dispose of that property with a prospective transferee, a written notice of availability of the property to all of the following:
(a)(1)A written notice of availability for developing low- and moderate-income housing, in a form prescribed by the Department of Housing and Community Development, shall be sent to any local public entity, as defined in Section 50079 of the Health and Safety Code, that has jurisdiction where the surplus land is located. Housing sponsors, as defined by Section 50074 of the Health and Safety Code, that have notified the Department of Housing and Community Development of their interest in surplus land shall be sent a notice of availability for the purpose of developing low- and moderate-income housing. All notices shall be sent by electronic mail, or by certified mail, and shall include the location and a description of the property.
(2)The Department of Housing and Community Development shall maintain on its internet website an up-to-date listing of, and a link to, all notices of availability throughout the state and a listing of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.
(b)A written notice of availability for open-space purposes shall be sent:
(1)To any park or recreation department of any city within which the surplus land is located.
(2)To any park or recreation department of the county within which the surplus land is located.
(3)To any regional park authority having jurisdiction within the area in which the surplus land is located.
(4)To the State Resources Agency or any agency that may succeed to its powers.
(c)A written notice of availability of land suitable for school facilities construction or use by a school district for open-space purposes shall be sent to any school district that has jurisdiction where the surplus land is located.
(d)A written notice of availability for developing property located within an infill opportunity zone designated pursuant to Section 65088.4 or within an area covered by a transit village plan adopted pursuant to the Transit Village Development Planning Act of 1994 (Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7) shall be sent to any county, city, city and county, successor agency to a former redevelopment agency, public transportation agency, or housing authority within whose jurisdiction the surplus land is located.
(e)The entity desiring to purchase or lease the surplus land for any of the purposes authorized by this section shall notify in writing the disposing agency of its interest in purchasing or leasing the land within 60 days after the agencys notice of availability is sent via certified mail or provided via electronic mail.
(f)For the purposes of this section, participating in negotiations does not include the commissioning of appraisals, due diligence prior to disposition, discussions with brokers or real estate agents not representing a potential buyer, or other studies to determine value or best use of land, issuance of a request for qualifications, development of marketing materials, or discussions conducted exclusively among local agency employees and elected officials.
SEC. 4.Section 54222.5 of the Government Code is amended to read:54222.5.An entity proposing to use the surplus land for developing low- and moderate-income housing shall agree to make available not less than 25 percent of the total number of units developed on the parcels at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or affordable rent, as defined in Section 50053 of the Health and Safety Code, to lower income households, as defined in Section 50079.5 of the Health and Safety Code. Rental units shall remain affordable to, and occupied by, lower income households for a period of at least 55 years. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with paragraph (2) of subdivision (c) of Section 65915. These requirements shall be contained in a covenant or restriction recorded against the surplus land at the time of sale, that shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:
(a)The local agency that disposed of the surplus land.
(b)A resident of a unit subject to this section.
(c)A residents association with members who reside in units subject to this section.
(d)A former resident of a unit subject to this section who last resided in that unit.
(e)An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:
(1)Is of low or moderate income, pursuant to Section 50093 of the Health and Safety Code.
(2)Is able and willing to occupy that particular unit.
(3)Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.
(f)A person on an affordable housing waiting list who is of low or moderate income, pursuant to Section 50093 of the Health and Safety Code, and who is able and willing to occupy a unit subject to this section.
SEC. 5.Section 54223 of the Government Code is amended to read:54223.(a)After the disposing agency has received a notice of interest from the entity desiring to purchase or lease the surplus land on terms that comply with this article, the disposing agency and the entity shall enter into good faith negotiations to determine a mutually satisfactory sales price and terms or lease terms. If the price or terms cannot be agreed upon after a good faith negotiation period of not less than 90 days, the local agency may dispose of the surplus land without further regard to this article, except that Section 54233 shall apply.
(b)Residential use shall be deemed an acceptable use for the surplus land for the purposes of good faith negotiations with a local agency conducted pursuant to this article. Nothing in this subdivision shall restrict a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land. Except as provided in subdivision (c), terms agreed to pursuant to the negotiations shall not do any of the following:
(1)Disallow residential use of the site as a condition of the disposal.
(2)Reduce the allowable number of residential units or the maximum lot coverage below what may be allowed by zoning or general plan requirements.
(3)Require as a condition of disposal, any design standards or architectural requirements that would have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, other than the minimum standards required by general plan, zoning, and subdivision standards and criteria.
(c)Terms agreed to pursuant to the negotiations required by subdivision (a) may include limitations on residential use or density if, without the limitations, the residential use or density would have a specific, adverse impact, supported by written findings, upon the public health or safety or upon the operation or facilities of a local agency, and there is no feasible method to satisfactorily mitigate the impact.
SEC. 6.Section 54224 of the Government Code is amended to read:54224.Nothing in this article shall preclude a local agency that purchases surplus land from a disposing agency pursuant to this article from reconveying the surplus land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing as authorized under other provisions of law.
SEC. 7.Section 54225 of the Government Code is amended to read:54225.Any local agency disposing of surplus land to an entity described in Section 54222 that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land. The payment period for surplus land disposed of for housing for persons and families of low and moderate income may exceed 20 years, but the payment period shall not exceed the term that the land is required to be used for low- or moderate-income housing.
SEC. 8.Section 54227 of the Government Code is amended to read:54227.(a)In the event that any local agency disposing of surplus land receives a notice of interest to purchase or lease that land from more than one of the entities to which notice of availability was given pursuant to this article, the local agency shall give first priority to the entity or entities that agree to use the site for housing that meets the requirements of Section 54222.5. If the local agency receives offers from more than one entity that agrees to meet the requirements of Section 54222.5, then the local agency shall give priority to the entity that proposes to provide the greatest number of units that meet the requirements of Section 54222.5. In the event that more than one entity proposes the same number of units that meet the requirements of Section 54222.5, priority shall be given to the entity that proposes the deepest average level of affordability for the affordable units. A local agency may negotiate concurrently with all entities that provide notice of interest for the purpose of developing low- and moderate-income housing that meets the requirements of Section 54222.5.
(b)Notwithstanding subdivision (a), first priority shall be given to an entity that agrees to use the site for park or recreational purposes if the land being offered is already being used and will continue to be used for park or recreational purposes, or if the land is designated for park and recreational use in the local general plan and will be developed for that purpose.
SEC. 9.Section 54230.5 of the Government Code is amended to read:54230.5.(a)(1)A local agency that disposes of surplus land in violation of this article after receiving a notification from the Department of Housing and Community Development pursuant to subdivision (b) that the local agency is in violation of this article shall be liable for a penalty of 30 percent of the greater of the final sale price, or of the fair market value of the surplus land at the time of disposition, as determined by an independent appraisal of the surplus land sold in violation of this article for a first violation, and 50 percent of the greater of the two sums, for any subsequent violation. An entity identified in Section 54222 or a person who would have been eligible to apply for residency in any affordable housing developed or a housing organization as defined in Section 65589.5, or any beneficially interested person or entity may bring an action to enforce this section. A local agency shall have 60 days to cure or correct an alleged violation before an action may be brought to enforce this section, unless the local agency disposes of the surplus land before curing or correcting the alleged violation, or the department deems the alleged violation not to be a violation in less than 60 days.
(2)A penalty assessed pursuant to this subdivision shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(3)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(b)(1)Before agreeing to terms for the disposition of surplus land, a local agency shall provide to the Department of Housing and Community Development a description of the notices of availability sent, and negotiations conducted with any responding entities, in regard to the disposal of the parcel of surplus land and a copy of any restrictions to be recorded against the property pursuant to Section 54222.5, 54233, or 54233.5, whichever is applicable, in a form prescribed by the Department of Housing and Community Development. A local agency may submit this information after it has sent notices of availability required by Section 54222 and concluded negotiations with any responding agencies. A local agency shall not be liable for the penalty imposed by subdivision (a) if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the description.
(2)The Department of Housing and Community Development shall do all of the following:
(A)Make available educational resources and materials that inform each agency of its obligations under this article and that provide guidance on how to comply with its provisions.
(B)Review information submitted pursuant to paragraph (1).
(C)Submit written findings to the local agency within 30 days of receipt of the description required by paragraph (1) from the local agency if the proposed disposal of the land will violate this article.
(D)Review, adopt, amend, or repeal guidelines to establish uniform standards to implement this section. The guidelines adopted pursuant to this subdivision are not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2.
(E)Provide the local agency reasonable time, but not less than 60 days, to respond to the findings before taking any other action authorized by this section.
(3)(A)The local agency shall consider findings made by the Department of Housing and Community Development pursuant to subparagraph (C) of paragraph (2) and shall do one of the following:
(i)Correct any issues identified by the Department of Housing and Community Development.
(ii)Provide written findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings.
(B)If the local agency does not correct issues identified by the Department of Housing and Community Development, does not provide findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings, or if the Department of Housing and Community Development finds that the local agencys findings are deficient in addressing the issues identified by the Department of Housing and Community Development, the Department of Housing and Community Development shall notify the local agency, and may notify the Attorney General, that the local agency is in violation of this article.
(c)The Department of Housing and Community Development shall implement the changes in this section made by the act adding this subdivision commencing on January 1, 2021.
(d)Notwithstanding subdivision (c), this section shall not be construed to limit any other remedies authorized under law to enforce this article including public records act requests pursuant to Division 10 (commencing with Section 7920.000) of Title 1.
SEC. 10.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
As used in this article, the following definitions shall apply:
(a)(1)Local agency means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.
(2)The Legislature finds and declares that the term district as used in this article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law.
(b)(1)Surplus land means land owned in fee simple by any local agency that is not necessary for the agencys use as declared by the local agency pursuant to Section 54221.5.
(2)Surplus land includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.
(3)Nothing in this article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with Section 54226.
(c)(1)Except as provided in paragraph (2), agencys use shall include, but not be limited to, land that is being used, or is planned to be used pursuant to a written plan adopted by the local agencys governing board, for agency work or operations, including, but not limited to, utility sites, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, and buffer sites near sensitive governmental uses, including, but not limited to, wastewater treatment plants.
(2)(A)Agencys use shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agencys use.
(B)In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, agencys use may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agencys governing body takes action in a public meeting declaring that the use of the site will do one of the following:
(i)Directly further the express purpose of agency work or operations.
(ii)Be expressly authorized by a statute governing the local agency, provided the district complies with Section 54233.5 if applicable.
(d)Open-space purposes means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources.
(e)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.
(f)(1)Except as provided in paragraph (2), exempt surplus land means any of the following:
(A)Surplus land that is transferred pursuant to Section 25539.4 or 37364.
(B)Surplus land that is (i) less than 5,000 square feet in area, (ii) less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet in area, whichever is less, or (iii) has no record access and is less than 10,000 square feet in area; and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. If the surplus land is not sold to an owner of contiguous land, it is not considered exempt surplus land and is subject to this article.
(C)Surplus land that a local agency is exchanging for another property necessary for the agencys use.
(D)Surplus land that a local agency is transferring to another local, state, or federal agency for the agencys use, or to a federally recognized California Indian tribe.
(E)Surplus land that is a former street, right of way, or easement, and is conveyed to an owner of an adjacent property.
(F)Surplus land that is put out to open, competitive bid by a local agency, provided all entities identified in subdivision (a) of Section 54222 will be invited to participate in the competitive bid process, for either of the following purposes:(i)A(F)Surplus land that is a housing development, that may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located.
(ii)A(G)Surplus land that is subject to a local agencys open, competitive solicitation or that is put to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process, for a housing or mixed-use development that is more than one acre and less than 10 acres in area, that includes not less than 300 residential units, and that restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(H)(i)Surplus land totaling 10 or more acres, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute. That surplus land shall be subject to a local agencys open, competitive solicitation process or put out to open, competitive bid by a local agency, provided that all entities identified in subdivision (a) of Section 54222 will be invited to participate in the process for a housing or mixed-use development.
(ii)The aggregate development shall include the greater of the following:
(I)Three hundred residential units.
(II)A number of residential units equal to 10 times the number of acres of the surplus land or 10,000 residential units, whichever is less.
(iii)At least 25 percent of the residential units shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent pursuant to Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(iv)If nonresidential development is included in the development pursuant to this subparagraph, at least 25 percent of the total planned units affordable to lower income households shall be made available for lease or sale and permitted for use and occupancy before or at the same time with every 25 percent of nonresidential development made available for lease or sale and permitted for use and occupancy.
(v)A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph.
(G)(I)Surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. The legal restriction shall be documented and verified in writing by the relevant agencies that have authority relating to the restrictions. An existing nonresidential land use designation on the surplus land is not a legal restriction that would make housing prohibited for purposes of this subparagraph. Nothing in this article limits a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land.
(H)(J)Surplus land that was granted by the state in trust to a local agency or that was acquired by the local agency for trust purposes by purchase or exchange, and for which disposal of the land is authorized or required subject to conditions established by statute.
(I)(K)Land that is subject to Sections 17388, 17515, 17536, 81192, 81397, 81399, 81420, and 81422 of the Education Code and Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code, unless compliance with this article is expressly required.
(J)(L)Surplus land that is a former military base that was conveyed by the federal government to a local agency, and is subject to Article 8 (commencing with Section 33492.125) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, provided that all of the following conditions are met:
(i) The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses, and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base.
(ii)The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least 25 percent of the initial 1,400 residential units developed shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(iii)Before disposition of the surplus land, the agency adopts written findings that the land is exempt surplus land pursuant to this subparagraph.
(iv)Before disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agencys project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient.
(v)The agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph or the settlement agreement.
(K)(M)Real property that is used by a district for agencys use expressly authorized in subdivision (c).
(L)(N)Land that has been transferred before June 30, 2019, by the state to a local agency pursuant to Section 32667 of the Streets and Highways Code and has a minimum planned residential density of at least 100 dwelling units per acre, and includes 100 or more residential units that are restricted to persons and families of low or moderate income, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing. For purposes of this paragraph, not more than 20 percent of the affordable units may be restricted to persons and families of moderate income and at least 80 percent of the affordable units must be restricted to lower income households as defined in Section 50079.5 of the Health and Safety Code.
(M)(O)Land that is owned by a California public-use airport on which residential use is prohibited pursuant to Federal Aviation Administration Order 5190.6B, Airport Compliance Program, Chapter 20 Compatible Land Use and Airspace Protection.
(2)Notwithstanding paragraph (1), a written notice of the availability of surplus land for open-space purposes shall be sent to the entities described in subdivision (b) of Section 54222 before disposing of the surplus land, provided the land does not meet the criteria in subparagraph (H) of paragraph (1), if the land is any of the following:
(A)Within a coastal zone.
(B)Adjacent to a historical unit of the State Parks System.
(C)Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places.
(D)Within the Lake Tahoe region as defined in Section 66905.5.
SEC. 2.Section 54221.5 is added to the Government Code, to read:54221.5.(a)Before taking any action to dispose of land, a local agency shall declare that the land is either surplus land or exempt surplus land as specified in this section. The declaration shall be supported by written findings before the local agency may dispose of the land in a manner that is consistent with this section and the local agencys policies.
(b)Except as provided in subdivision (c), a local agency shall take formal action at a regular public meeting to declare that land is either surplus land or exempt surplus land.
(c)Notwithstanding subdivision (b), a local agency is not required to make a declaration at a public meeting for land that is exempt surplus land pursuant to subparagraphs (A), (B), (E), (H), (I), or (M) of paragraph (1) of subdivision (f) of Section 54221 if the local agency identifies the land in a notice that is published and available for public comment, including notice to the entities identified in subdivision (a) of Section 54222, at least 30 days before the exemption takes effect.
(d)Notwithstanding Section 54222.3, 30 days before disposing of land declared exempt surplus land, a local agency shall provide the Department of Housing and Community Development a written notification of its declaration and findings in a form and manner prescribed by the department.
(e)A local agency may, on an annual basis, declare multiple parcels as surplus land or exempt surplus land.
SEC. 3.Section 54222 of the Government Code is amended to read:54222.Except as provided in Division 23 (commencing with Section 33000) of the Public Resources Code, any local agency disposing of surplus land, declared pursuant to subdivision (b) of Section 54221.5, shall send, before disposing of that property or participating in negotiations to dispose of that property with a prospective transferee, a written notice of availability of the property to all of the following:
(a)(1)A written notice of availability for developing low- and moderate-income housing, in a form prescribed by the Department of Housing and Community Development, shall be sent to any local public entity, as defined in Section 50079 of the Health and Safety Code, that has jurisdiction where the surplus land is located. Housing sponsors, as defined by Section 50074 of the Health and Safety Code, that have notified the Department of Housing and Community Development of their interest in surplus land shall be sent a notice of availability for the purpose of developing low- and moderate-income housing. All notices shall be sent by electronic mail, or by certified mail, and shall include the location and a description of the property.
(2)The Department of Housing and Community Development shall maintain on its internet website an up-to-date listing of, and a link to, all notices of availability throughout the state and a listing of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.
(b)A written notice of availability for open-space purposes shall be sent:
(1)To any park or recreation department of any city within which the surplus land is located.
(2)To any park or recreation department of the county within which the surplus land is located.
(3)To any regional park authority having jurisdiction within the area in which the surplus land is located.
(4)To the State Resources Agency or any agency that may succeed to its powers.
(c)A written notice of availability of land suitable for school facilities construction or use by a school district for open-space purposes shall be sent to any school district that has jurisdiction where the surplus land is located.
(d)A written notice of availability for developing property located within an infill opportunity zone designated pursuant to Section 65088.4 or within an area covered by a transit village plan adopted pursuant to the Transit Village Development Planning Act of 1994 (Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7) shall be sent to any county, city, city and county, successor agency to a former redevelopment agency, public transportation agency, or housing authority within whose jurisdiction the surplus land is located.
(e)The entity desiring to purchase or lease the surplus land for any of the purposes authorized by this section shall notify in writing the disposing agency of its interest in purchasing or leasing the land within 60 days after the agencys notice of availability is sent via certified mail or provided via electronic mail.
(f)For the purposes of this section, participating in negotiations does not include the commissioning of appraisals, due diligence prior to disposition, discussions with brokers or real estate agents not representing a potential buyer, or other studies to determine value or best use of land, issuance of a request for qualifications, development of marketing materials, or discussions conducted exclusively among local agency employees and elected officials.
SEC. 4.Section 54222.5 of the Government Code is amended to read:54222.5.An entity proposing to use the surplus land for developing low- and moderate-income housing shall agree to make available not less than 25 percent of the total number of units developed on the parcels at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or affordable rent, as defined in Section 50053 of the Health and Safety Code, to lower income households, as defined in Section 50079.5 of the Health and Safety Code. Rental units shall remain affordable to, and occupied by, lower income households for a period of at least 55 years. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with paragraph (2) of subdivision (c) of Section 65915. These requirements shall be contained in a covenant or restriction recorded against the surplus land at the time of sale, that shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:
(a)The local agency that disposed of the surplus land.
(b)A resident of a unit subject to this section.
(c)A residents association with members who reside in units subject to this section.
(d)A former resident of a unit subject to this section who last resided in that unit.
(e)An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:
(1)Is of low or moderate income, pursuant to Section 50093 of the Health and Safety Code.
(2)Is able and willing to occupy that particular unit.
(3)Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.
(f)A person on an affordable housing waiting list who is of low or moderate income, pursuant to Section 50093 of the Health and Safety Code, and who is able and willing to occupy a unit subject to this section.
SEC. 5.Section 54223 of the Government Code is amended to read:54223.(a)After the disposing agency has received a notice of interest from the entity desiring to purchase or lease the surplus land on terms that comply with this article, the disposing agency and the entity shall enter into good faith negotiations to determine a mutually satisfactory sales price and terms or lease terms. If the price or terms cannot be agreed upon after a good faith negotiation period of not less than 90 days, the local agency may dispose of the surplus land without further regard to this article, except that Section 54233 shall apply.
(b)Residential use shall be deemed an acceptable use for the surplus land for the purposes of good faith negotiations with a local agency conducted pursuant to this article. Nothing in this subdivision shall restrict a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land. Except as provided in subdivision (c), terms agreed to pursuant to the negotiations shall not do any of the following:
(1)Disallow residential use of the site as a condition of the disposal.
(2)Reduce the allowable number of residential units or the maximum lot coverage below what may be allowed by zoning or general plan requirements.
(3)Require as a condition of disposal, any design standards or architectural requirements that would have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, other than the minimum standards required by general plan, zoning, and subdivision standards and criteria.
(c)Terms agreed to pursuant to the negotiations required by subdivision (a) may include limitations on residential use or density if, without the limitations, the residential use or density would have a specific, adverse impact, supported by written findings, upon the public health or safety or upon the operation or facilities of a local agency, and there is no feasible method to satisfactorily mitigate the impact.
SEC. 6.Section 54224 of the Government Code is amended to read:54224.Nothing in this article shall preclude a local agency that purchases surplus land from a disposing agency pursuant to this article from reconveying the surplus land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing as authorized under other provisions of law.
SEC. 7.Section 54225 of the Government Code is amended to read:54225.Any local agency disposing of surplus land to an entity described in Section 54222 that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land. The payment period for surplus land disposed of for housing for persons and families of low and moderate income may exceed 20 years, but the payment period shall not exceed the term that the land is required to be used for low- or moderate-income housing.
SEC. 8.Section 54227 of the Government Code is amended to read:54227.(a)In the event that any local agency disposing of surplus land receives a notice of interest to purchase or lease that land from more than one of the entities to which notice of availability was given pursuant to this article, the local agency shall give first priority to the entity or entities that agree to use the site for housing that meets the requirements of Section 54222.5. If the local agency receives offers from more than one entity that agrees to meet the requirements of Section 54222.5, then the local agency shall give priority to the entity that proposes to provide the greatest number of units that meet the requirements of Section 54222.5. In the event that more than one entity proposes the same number of units that meet the requirements of Section 54222.5, priority shall be given to the entity that proposes the deepest average level of affordability for the affordable units. A local agency may negotiate concurrently with all entities that provide notice of interest for the purpose of developing low- and moderate-income housing that meets the requirements of Section 54222.5.
(b)Notwithstanding subdivision (a), first priority shall be given to an entity that agrees to use the site for park or recreational purposes if the land being offered is already being used and will continue to be used for park or recreational purposes, or if the land is designated for park and recreational use in the local general plan and will be developed for that purpose.
SEC. 9.Section 54230.5 of the Government Code is amended to read:54230.5.(a)(1)A local agency that disposes of surplus land in violation of this article after receiving a notification from the Department of Housing and Community Development pursuant to subdivision (b) that the local agency is in violation of this article shall be liable for a penalty of 30 percent of the greater of the final sale price, or of the fair market value of the surplus land at the time of disposition, as determined by an independent appraisal of the surplus land sold in violation of this article for a first violation, and 50 percent of the greater of the two sums, for any subsequent violation. An entity identified in Section 54222 or a person who would have been eligible to apply for residency in any affordable housing developed or a housing organization as defined in Section 65589.5, or any beneficially interested person or entity may bring an action to enforce this section. A local agency shall have 60 days to cure or correct an alleged violation before an action may be brought to enforce this section, unless the local agency disposes of the surplus land before curing or correcting the alleged violation, or the department deems the alleged violation not to be a violation in less than 60 days.
(2)A penalty assessed pursuant to this subdivision shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(3)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(b)(1)Before agreeing to terms for the disposition of surplus land, a local agency shall provide to the Department of Housing and Community Development a description of the notices of availability sent, and negotiations conducted with any responding entities, in regard to the disposal of the parcel of surplus land and a copy of any restrictions to be recorded against the property pursuant to Section 54222.5, 54233, or 54233.5, whichever is applicable, in a form prescribed by the Department of Housing and Community Development. A local agency may submit this information after it has sent notices of availability required by Section 54222 and concluded negotiations with any responding agencies. A local agency shall not be liable for the penalty imposed by subdivision (a) if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the description.
(2)The Department of Housing and Community Development shall do all of the following:
(A)Make available educational resources and materials that inform each agency of its obligations under this article and that provide guidance on how to comply with its provisions.
(B)Review information submitted pursuant to paragraph (1).
(C)Submit written findings to the local agency within 30 days of receipt of the description required by paragraph (1) from the local agency if the proposed disposal of the land will violate this article.
(D)Review, adopt, amend, or repeal guidelines to establish uniform standards to implement this section. The guidelines adopted pursuant to this subdivision are not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2.
(E)Provide the local agency reasonable time, but not less than 60 days, to respond to the findings before taking any other action authorized by this section.
(3)(A)The local agency shall consider findings made by the Department of Housing and Community Development pursuant to subparagraph (C) of paragraph (2) and shall do one of the following:
(i)Correct any issues identified by the Department of Housing and Community Development.
(ii)Provide written findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings.
(B)If the local agency does not correct issues identified by the Department of Housing and Community Development, does not provide findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings, or if the Department of Housing and Community Development finds that the local agencys findings are deficient in addressing the issues identified by the Department of Housing and Community Development, the Department of Housing and Community Development shall notify the local agency, and may notify the Attorney General, that the local agency is in violation of this article.
(c)The Department of Housing and Community Development shall implement the changes in this section made by the act adding this subdivision commencing on January 1, 2021.
(d)Notwithstanding subdivision (c), this section shall not be construed to limit any other remedies authorized under law to enforce this article including public records act requests pursuant to Division 10 (commencing with Section 7920.000) of Title 1.
SEC. 10.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
As used in this article, the following definitions shall apply:
(a)(1)Local agency means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.
(2)The Legislature finds and declares that the term district as used in this article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law.
(b)(1)Surplus land means land owned in fee simple by any local agency that is not necessary for the agencys use as declared by the local agency pursuant to Section 54221.5.
(2)Surplus land includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.
(3)Nothing in this article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with Section 54226.
(c)(1)Except as provided in paragraph (2), agencys use shall include, but not be limited to, land that is being used, or is planned to be used pursuant to a written plan adopted by the local agencys governing board, for agency work or operations, including, but not limited to, utility sites, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, and buffer sites near sensitive governmental uses, including, but not limited to, wastewater treatment plants.
(2)(A)Agencys use shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agencys use.
(B)In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, agencys use may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agencys governing body takes action in a public meeting declaring that the use of the site will do one of the following:
(i)Directly further the express purpose of agency work or operations.
(ii)Be expressly authorized by a statute governing the local agency, provided the district complies with Section 54233.5 if applicable.
(d)Open-space purposes means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources.
(e)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.
(f)(1)Except as provided in paragraph (2), exempt surplus land means any of the following:
(A)Surplus land that is transferred pursuant to Section 25539.4 or 37364.
(B)Surplus land that is (i) less than 5,000 square feet in area, (ii) less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet in area, whichever is less, or (iii) has no record access and is less than 10,000 square feet in area; and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. If the surplus land is not sold to an owner of contiguous land, it is not considered exempt surplus land and is subject to this article.
(C)Surplus land that a local agency is exchanging for another property necessary for the agencys use.
(D)Surplus land that a local agency is transferring to another local, state, or federal agency for the agencys use, or to a federally recognized California Indian tribe.
(E)Surplus land that is a former street, right of way, or easement, and is conveyed to an owner of an adjacent property.
(F)Surplus land that is put out to open, competitive bid by a local agency, provided all entities identified in subdivision (a) of Section 54222 will be invited to participate in the competitive bid process, for either of the following purposes:
(i)A housing development, that may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located.
(ii)A mixed-use development that is more than one acre in area, that includes not less than 300 residential units, and that restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(G)Surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. The legal restriction shall be documented and verified in writing by the relevant agencies that have authority relating to the restrictions. An existing nonresidential land use designation on the surplus land is not a legal restriction that would make housing prohibited for purposes of this subparagraph. Nothing in this article limits a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land.
(H)Surplus land that was granted by the state in trust to a local agency or that was acquired by the local agency for trust purposes by purchase or exchange, and for which disposal of the land is authorized or required subject to conditions established by statute.
(I)Land that is subject to Sections 17388, 17515, 17536, 81192, 81397, 81399, 81420, and 81422 of the Education Code and Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code, unless compliance with this article is expressly required.
(J)Surplus land that is a former military base that was conveyed by the federal government to a local agency, and is subject to Article 8 (commencing with Section 33492.125) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, provided that all of the following conditions are met:
(i) The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses, and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base.
(ii)The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least 25 percent of the initial 1,400 residential units developed shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(iii)Before disposition of the surplus land, the agency adopts written findings that the land is exempt surplus land pursuant to this subparagraph.
(iv)Before disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agencys project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient.
(v)The agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph or the settlement agreement.
(K)Real property that is used by a district for agencys use expressly authorized in subdivision (c).
(L)Land that has been transferred before June 30, 2019, by the state to a local agency pursuant to Section 32667 of the Streets and Highways Code and has a minimum planned residential density of at least 100 dwelling units per acre, and includes 100 or more residential units that are restricted to persons and families of low or moderate income, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing. For purposes of this paragraph, not more than 20 percent of the affordable units may be restricted to persons and families of moderate income and at least 80 percent of the affordable units must be restricted to lower income households as defined in Section 50079.5 of the Health and Safety Code.
(M)Land that is owned by a California public-use airport on which residential use is prohibited pursuant to Federal Aviation Administration Order 5190.6B, Airport Compliance Program, Chapter 20 Compatible Land Use and Airspace Protection.
(2)Notwithstanding paragraph (1), a written notice of the availability of surplus land for open-space purposes shall be sent to the entities described in subdivision (b) of Section 54222 before disposing of the surplus land, provided the land does not meet the criteria in subparagraph (H) of paragraph (1), if the land is any of the following:
(A)Within a coastal zone.
(B)Adjacent to a historical unit of the State Parks System.
(C)Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places.
(D)Within the Lake Tahoe region as defined in Section 66905.5.
SEC. 2.Section 54221.5 is added to the Government Code, to read:54221.5.(a)Before taking any action to dispose of land, a local agency shall declare that the land is either surplus land or exempt surplus land as specified in this section. The declaration shall be supported by written findings before the local agency may dispose of the land in a manner that is consistent with this section and the local agencys policies.
(b)Except as provided in subdivision (c), a local agency shall take formal action at a regular public meeting to declare that land is either surplus land or exempt surplus land.
(c)Notwithstanding subdivision (b), a local agency may declare administratively that land is not required to make a declaration at a public meeting for land that is exempt surplus land pursuant to subparagraphs (A), (B), (E), (H), or (I) (I), or (M) of paragraph (1) of subdivision (f) of Section 54221 if the declaration and findings are local agency identifies the land in a notice that is published and available for public comment, including notice to the entities identified in subdivision (a) of Section 54222, at least 30 days before the declaration exemption takes effect.
(d)Notwithstanding Section 54222.3, 30 days before disposing of land declared exempt surplus land, a local agency shall provide the Department of Housing and Community Development a written notification of its declaration and findings in a form and manner prescribed by the department.
(e)A local agency may, on an annual basis, declare multiple parcels as surplus land or exempt surplus land.
SEC. 3.Section 54222 of the Government Code is amended to read:54222.Except as provided in Division 23 (commencing with Section 33000) of the Public Resources Code, any local agency disposing of surplus land, declared pursuant to subdivision (b) of Section 54221.5, shall send, before disposing of that property or participating in negotiations to dispose of that property with a prospective transferee, a written notice of availability of the property to all of the following:
(a)(1)A written notice of availability for developing low- and moderate-income housing, in a form prescribed by the Department of Housing and Community Development, shall be sent to any local public entity, as defined in Section 50079 of the Health and Safety Code, that has jurisdiction where the surplus land is located. Housing sponsors, as defined by Section 50074 of the Health and Safety Code, that have notified the Department of Housing and Community Development of their interest in surplus land shall be sent a notice of availability for the purpose of developing low- and moderate-income housing. All notices shall be sent by electronic mail, or by certified mail, and shall include the location and a description of the property.
(2)The Department of Housing and Community Development shall maintain on its internet website an up-to-date listing of, and a link to, all notices of availability throughout the state and a listing of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.
(b)A written notice of availability for open-space purposes shall be sent:
(1)To any park or recreation department of any city within which the surplus land is located.
(2)To any park or recreation department of the county within which the surplus land is located.
(3)To any regional park authority having jurisdiction within the area in which the surplus land is located.
(4)To the State Resources Agency or any agency that may succeed to its powers.
(c)A written notice of availability of land suitable for school facilities construction or use by a school district for open-space purposes shall be sent to any school district that has jurisdiction where the surplus land is located.
(d)A written notice of availability for developing property located within an infill opportunity zone designated pursuant to Section 65088.4 or within an area covered by a transit village plan adopted pursuant to the Transit Village Development Planning Act of 1994 (Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7) shall be sent to any county, city, city and county, successor agency to a former redevelopment agency, public transportation agency, or housing authority within whose jurisdiction the surplus land is located.
(e)The entity desiring to purchase or lease the surplus land for any of the purposes authorized by this section shall notify in writing the disposing agency of its interest in purchasing or leasing the land within 60 days after the agencys notice of availability is sent via certified mail or provided via electronic mail.
(f)For the purposes of this section, participating in negotiations does not include the commissioning of appraisals, due diligence prior to disposition, discussions with brokers or real estate agents not representing a potential buyer, or other studies to determine value or best use of land, issuance of a request for qualifications, development of marketing materials, or discussions conducted exclusively among local agency employees and elected officials.
SEC. 4.Section 54222.5 of the Government Code is amended to read:54222.5.An entity proposing to use the surplus land for developing low- and moderate-income housing shall agree to make available not less than 25 percent of the total number of units developed on the parcels at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or affordable rent, as defined in Section 50053 of the Health and Safety Code, to lower income households, as defined in Section 50079.5 of the Health and Safety Code. Rental units shall remain affordable to, and occupied by, lower income households for a period of at least 55 years. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with paragraph (2) of subdivision (c) of Section 65915. These requirements shall be contained in a covenant or restriction recorded against the surplus land at the time of sale, that shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:
(a)The local agency that disposed of the surplus land.
(b)A resident of a unit subject to this section.
(c)A residents association with members who reside in units subject to this section.
(d)A former resident of a unit subject to this section who last resided in that unit.
(e)An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:
(1)Is of low or moderate income, pursuant to Section 50093 of the Health and Safety Code.
(2)Is able and willing to occupy that particular unit.
(3)Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.
(f)A person on an affordable housing waiting list who is of low or moderate income, pursuant to Section 50093 of the Health and Safety Code, and who is able and willing to occupy a unit subject to this section.
SEC. 5.Section 54223 of the Government Code is amended to read:54223.(a)After the disposing agency has received a notice of interest from the entity desiring to purchase or lease the surplus land on terms that comply with this article, the disposing agency and the entity shall enter into good faith negotiations to determine a mutually satisfactory sales price and terms or lease terms. If the price or terms cannot be agreed upon after a good faith negotiation period of not less than 90 days, the local agency may dispose of the surplus land without further regard to this article, except that Section 54233 shall apply.
(b)Residential use shall be deemed an acceptable use for the surplus land for the purposes of good faith negotiations with a local agency conducted pursuant to this article. Nothing in this subdivision shall restrict a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land. Except as provided in subdivision (c), terms agreed to pursuant to the negotiations shall not do any of the following:
(1)Disallow residential use of the site as a condition of the disposal.
(2)Reduce the allowable number of residential units or the maximum lot coverage below what may be allowed by zoning or general plan requirements.
(3)Require as a condition of disposal, any design standards or architectural requirements that would have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, other than the minimum standards required by general plan, zoning, and subdivision standards and criteria.
(c)Terms agreed to pursuant to the negotiations required by subdivision (a) may include limitations on residential use or density if, without the limitations, the residential use or density would have a specific, adverse impact, supported by written findings, upon the public health or safety or upon the operation or facilities of a local agency, and there is no feasible method to satisfactorily mitigate the impact.
SEC. 6.Section 54224 of the Government Code is amended to read:54224.Nothing in this article shall preclude a local agency that purchases surplus land from a disposing agency pursuant to this article from reconveying the surplus land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing as authorized under other provisions of law.
SEC. 7.Section 54225 of the Government Code is amended to read:54225.Any local agency disposing of surplus land to an entity described in Section 54222 that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land. The payment period for surplus land disposed of for housing for persons and families of low and moderate income may exceed 20 years, but the payment period shall not exceed the term that the land is required to be used for low- or moderate-income housing.
SEC. 8.Section 54227 of the Government Code is amended to read:54227.(a)In the event that any local agency disposing of surplus land receives a notice of interest to purchase or lease that land from more than one of the entities to which notice of availability was given pursuant to this article, the local agency shall give first priority to the entity or entities that agree to use the site for housing that meets the requirements of Section 54222.5. If the local agency receives offers from more than one entity that agrees to meet the requirements of Section 54222.5, then the local agency shall give priority to the entity that proposes to provide the greatest number of units that meet the requirements of Section 54222.5. In the event that more than one entity proposes the same number of units that meet the requirements of Section 54222.5, priority shall be given to the entity that proposes the deepest average level of affordability for the affordable units. A local agency may negotiate concurrently with all entities that provide notice of interest for the purpose of developing low- and moderate-income housing that meets the requirements of Section 54222.5.
(b)Notwithstanding subdivision (a), first priority shall be given to an entity that agrees to use the site for park or recreational purposes if the land being offered is already being used and will continue to be used for park or recreational purposes, or if the land is designated for park and recreational use in the local general plan and will be developed for that purpose.
SEC. 9.Section 54230.5 of the Government Code is amended to read:54230.5.(a)(1)A local agency that disposes of surplus land in violation of this article after receiving a notification from the Department of Housing and Community Development pursuant to subdivision (b) that the local agency is in violation of this article shall be liable for a penalty of 30 percent of the greater of the final sale price, or of the fair market value of the surplus land at the time of disposition, as determined by an independent appraisal, appraisal of the surplus land sold in violation of this article for a first violation violation, and 50 percent of the greater of the two sums, for any subsequent violation. An entity identified in Section 54222 or a person who would have been eligible to apply for residency in any affordable housing developed or a housing organization as defined in Section 65589.5, or any beneficially interested person or entity may bring an action to enforce this section. A local agency shall have 60 days to cure or correct an alleged violation before an action may be brought to enforce this section, unless the local agency disposes of the surplus land before curing or correcting the alleged violation, or the department deems the alleged violation not to be a violation in less than 60 days.
(2)A penalty assessed pursuant to this subdivision shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(3)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(b)(1)Before agreeing to terms for the disposition of surplus land, a local agency shall provide to the Department of Housing and Community Development a description of the notices of availability sent, and negotiations conducted with any responding entities, in regard to the disposal of the parcel of surplus land and a copy of any restrictions to be recorded against the property pursuant to Section 54222.5, 54233, or 54233.5, whichever is applicable, in a form prescribed by the Department of Housing and Community Development. A local agency may submit this information after it has sent notices of availability required by Section 54222 and concluded negotiations with any responding agencies. A local agency shall not be liable for the penalty imposed by subdivision (a) if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the description.
(2)The Department of Housing and Community Development shall do all of the following:
(A)Make available educational resources and materials that inform each agency of its obligations under this article and that provide guidance on how to comply with its provisions.
(B)Review information submitted pursuant to paragraph (1).
(C)Submit written findings to the local agency within 30 days of receipt of the description required by paragraph (1) from the local agency if the proposed disposal of the land will violate this article.
(D)Review, adopt, amend, or repeal guidelines to establish uniform standards to implement this section. The guidelines adopted pursuant to this subdivision are not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2.
(E)Provide the local agency reasonable time, but not less than 60 days, to respond to the findings before taking any other action authorized by this section.
(3)(A)The local agency shall consider findings made by the Department of Housing and Community Development pursuant to subparagraph (C) of paragraph (2) and shall do one of the following:
(i)Correct any issues identified by the Department of Housing and Community Development.
(ii)Provide written findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings.
(B)If the local agency does not correct issues identified by the Department of Housing and Community Development, does not provide findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings, or if the Department of Housing and Community Development finds that the local agencys findings are deficient in addressing the issues identified by the Department of Housing and Community Development, the Department of Housing and Community Development shall notify the local agency, and may notify the Attorney General, that the local agency is in violation of this article.
(c)The Department of Housing and Community Development shall implement the changes in this section made by the act adding this subdivision commencing on January 1, 2021.
(d)Notwithstanding subdivision (c), this section shall not be construed to limit any other remedies authorized under law to enforce this article including public records act requests pursuant to Division 10 (commencing with Section 7920.000) of Title 1.
SEC. 10.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
As used in this article, the following definitions shall apply:
(a)(1)Local agency means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.
(2)The Legislature finds and declares that the term district as used in this article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law.
(b)(1)Surplus land means land owned in fee simple by any local agency for which the local agencys governing body takes formal action in a regular public meeting declaring that the land is surplus and that is not necessary for the agencys use. Land shall be declared either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures. A local agency, on an annual basis, may declare multiple parcels as surplus land or exempt surplus land. use as declared by the local agency pursuant to Section 54221.5.
(2)Surplus land includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.
(3)Nothing in this article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with Section 54226.
(c)(1)Except as provided in paragraph (2), agencys use shall include, but not be limited to, land that is being used, or is planned to be used pursuant to a written plan adopted by the local agencys governing board for, or is disposed to support pursuant to subparagraph (B) of paragraph (2) board, for agency work or operations, including, but not limited to, utility sites, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, and buffer sites near sensitive governmental uses, including, but not limited to, waste water wastewater treatment plants.
(2)(A)Agencys use shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agencys use.
(B)In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, agencys use may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agencys governing body takes action in a public meeting declaring that the use of the site will do one of the following:
(i)Directly further the express purpose of agency work or operations.
(ii)Be expressly authorized by a statute governing the local agency, provided the district complies with Section 54233.5 if applicable.
(d)Open-space purposes means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources.
(e)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.
(f)(1)Except as provided in paragraph (2), exempt surplus land means any of the following:
(A)Surplus land that is transferred pursuant to Section 25539.4 or 37364.
(B)Surplus land that is (i) less than 5,000 square feet in area, (ii) less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet in area, whichever is less, or (iii) has no record access and is less than 10,000 square feet in area; and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. If the surplus land is not sold to an owner of contiguous land, it is not considered exempt surplus land and is subject to this article.
(C)Surplus land that a local agency is exchanging for another property necessary for the agencys use.
(D)Surplus land that a local agency is transferring to another local, state, or federal agency for the agencys use, or to a federally recognized California Indian tribe.
(E)Surplus land that is a former street, right-of-way, right of way, or easement, and is conveyed to an owner of an adjacent property.
(F)Surplus land that is put out to open, competitive bid by a local agency, provided all entities identified in subdivision (a) of Section 54222 will be invited to participate in the competitive bid process, for either of the following purposes:
(i)A housing development, that may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located.
(ii)A mixed-use development that is more than one acre in area, that includes not less than 300 residential units, and that restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(G)Surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. The legal restriction shall be documented and verified in writing by the relevant agencies that have authority relating to the restrictions. An existing nonresidential land use designation on the surplus land is not a legal restriction that would make housing prohibited for purposes of this subparagraph. Nothing in this article limits a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land.
(H)Surplus land that was granted by the state in trust to a local agency or that was acquired by the local agency for trust purposes by purchase or exchange, and for which disposal of the land is authorized or required subject to conditions established by statute.
(I)Land that is subject to Sections 17388, 17515, 17536, 81192, 81397, 81399, 81420, and 81422 of the Education Code and Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code, unless compliance with this article is expressly required.
(J)Surplus land that is a former military base that was conveyed by the federal government to a local agency, and is subject to Article 8 (commencing with Section 33492.125) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, provided that all of the following conditions are met:
(i) The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses, and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base.
(ii)The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least 25 percent of the initial 1,400 residential units developed shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(iii)Before disposition of the surplus land, the agency adopts written findings that the land is exempt surplus land pursuant to this subparagraph.
(iv)Before disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agencys project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient.
(v)The agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph or the settlement agreement.
(K)Real property that is used by a district for agencys use expressly authorized in subdivision (c).
(L)Land that has been transferred before June 30, 2019, by the state to a local agency pursuant to Section 32667 of the Streets and Highways Code and has a minimum planned residential density of at least 100 dwelling units per acre, and includes 100 or more residential units that are restricted to persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing. For purposes of this paragraph, not more than 20 percent of the affordable units may be restricted to persons and families of moderate income and at least 80 percent of the affordable units must be restricted to persons and families of lower income households as defined in Section 50079.5 of the Health and Safety Code.
(M)Land that is owned by a California public-use airport on which residential use is prohibited pursuant to Federal Aviation Administration Order 5190.6B, Airport Compliance Program, Chapter 20 Compatible Land Use and Airspace Protection.
(2)Notwithstanding paragraph (1), a written notice of the availability of surplus land for open-space purposes shall be sent to the entities described in subdivision (b) of Section 54222 before disposing of the surplus land, provided the land does not meet the criteria in subparagraph (H) of paragraph (1), if the land is any of the following:
(A)Within a coastal zone.
(B)Adjacent to a historical unit of the State Parks System.
(C)Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places.
(D)Within the Lake Tahoe region as defined in Section 66905.5.
SEC. 2.Section 54221.5 is added to the Government Code, to read:54221.5.(a)Before taking any action to dispose of land, a local agency shall declare that the land is either surplus land or exempt surplus land as specified in this section. The declaration shall be supported by written findings before the local agency may dispose of the land in a manner that is consistent with this section and the local agencys policies.
(b)Except as provided in subdivision (c), a local agency shall take formal action at a regular public meeting to declare that land is either surplus land or exempt surplus land.
(c)Notwithstanding subdivision (b), a local agency may declare administratively that land is exempt surplus land pursuant to subparagraphs (A), (B), (E), (H), or (I) of paragraph (1) of subdivision (f) of Section 54221 if the declaration and findings are published and available for public comment, including notice to the entities identified in subdivision (a) of section 54222, at least 30 days before the declaration takes effect.
(d)Notwithstanding Section 54222.3, 30 days before disposing of land declared exempt surplus land, a local agency shall provide the Department of Housing and Community Development a written notification of its declaration and findings in a form and manner prescribed by the department.
(e)A local agency may, on an annual basis, declare multiple parcels as surplus land or exempt surplus land.
SEC. 2. SEC. 3.Section 54222 of the Government Code is amended to read:54222.Except as provided in Division 23 (commencing with Section 33000) of the Public Resources Code, any local agency disposing of surplus land land, declared pursuant to subdivision (b) of Section 54221.5, shall send, before disposing of that property or participating in negotiations to dispose of that property with a prospective transferee, a written notice of availability of the property to all of the following:
(a)(1)A written notice of availability for developing low- and moderate-income housing housing, in a form prescribed by the Department of Housing and Community Development, shall be sent to any local public entity, as defined in Section 50079 of the Health and Safety Code, that has jurisdiction where the surplus land is located. Housing sponsors, as defined by Section 50074 of the Health and Safety Code, that have notified the Department of Housing and Community Development of their interest in surplus land shall be sent a notice of availability for the purpose of developing low- and moderate-income housing. All notices shall be sent by electronic mail, or by certified mail, and shall include the location and a description of the property.
(2)The Department of Housing and Community Development shall maintain on its internet website an up-to-date listing of of, and a link to, all notices of availability throughout the state and a listing of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.
(b)A written notice of availability for open-space purposes shall be sent:
(1)To any park or recreation department of any city within which the surplus land is located.
(2)To any park or recreation department of the county within which the surplus land is located.
(3)To any regional park authority having jurisdiction within the area in which the surplus land is located.
(4)To the State Resources Agency or any agency that may succeed to its powers.
(c)A written notice of availability of land suitable for school facilities construction or use by a school district for open-space purposes shall be sent to any school district that has jurisdiction where the surplus land is located.
(d)A written notice of availability for developing property located within an infill opportunity zone designated pursuant to Section 65088.4 or within an area covered by a transit village plan adopted pursuant to the Transit Village Development Planning Act of 1994 (Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7) shall be sent to any county, city, city and county, successor agency to a former redevelopment agency, public transportation agency, or housing authority within whose jurisdiction the surplus land is located.
(e)The entity desiring to purchase or lease the surplus land for any of the purposes authorized by this section shall notify in writing the disposing agency of its interest in purchasing or leasing the land within 60 days after the agencys notice of availability is sent via certified mail or provided via electronic mail.
(f)For the purposes of this section, participating in negotiations does not include the commissioning of appraisals, due diligence prior to disposition, discussions with brokers or real estate agents not representing a potential buyer, or other studies to determine value or best use of land, issuance of a request for qualifications, development of marketing materials, or discussions conducted exclusively among local agency employees and elected officials.
SEC. 3. SEC. 4.Section 54222.5 of the Government Code is amended to read:54222.5.An entity proposing to use the surplus land for developing low- and moderate-income housing shall agree to make available not less than 25 percent of the total number of units developed on the parcels at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or affordable rent, as defined in Section 50053 of the Health and Safety Code, to lower income households, as defined in Section 50079.5 of the Health and Safety Code. Rental units shall remain affordable to, and occupied by, lower income households for a period of at least 55 years. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with paragraph (2) of subdivision (c) of Section 65915. These requirements shall be contained in a covenant or restriction recorded against the surplus land at the time of sale, that shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:
(a)The local agency that disposed of the surplus land.
(b)A resident of a unit subject to this section.
(c)A residents association with members who reside in units subject to this section.
(d)A former resident of a unit subject to this section who last resided in that unit.
(e)An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:
(1)Is of low or moderate income, as defined in pursuant to Section 50093 of the Health and Safety Code.
(2)Is able and willing to occupy that particular unit.
(3)Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.
(f)A person on an affordable housing waiting list who is of low or moderate income, as defined in pursuant to Section 50093 of the Health and Safety Code, and who is able and willing to occupy a unit subject to this section.
SEC. 4. SEC. 5.Section 54223 of the Government Code is amended to read:54223.(a)After the disposing agency has received a notice of interest from the entity desiring to purchase or lease the surplus land on terms that comply with this article, the disposing agency and the entity shall enter into good faith negotiations to determine a mutually satisfactory sales price and terms or lease terms. If the price or terms cannot be agreed upon after a good faith negotiation period of not less than 90 days, the local agency may dispose of the surplus land without further regard to this article, except that Section 54233 shall apply.
(b)Residential use shall be deemed an acceptable use for the surplus land for the purposes of good faith negotiations with a local agency conducted pursuant to this article. Nothing in this subdivision shall restrict a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land. Except as provided in subdivision (c), terms agreed to pursuant to the negotiations shall not do any of the following:
(1)Disallow residential use of the site as a condition of the disposal.
(2)Reduce the allowable number of residential units or the maximum lot coverage below what may be allowed by zoning or general plan requirements.
(3)Require as a condition of disposal, any design standards or architectural requirements that would have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, other than the minimum standards required by general plan, zoning, and subdivision standards and criteria.
(c)Terms agreed to pursuant to the negotiations required by subdivision (a) may include limitations on residential use or density if, without the limitations, the residential use or density would have a specific, adverse impact, supported by written findings, upon the public health or safety or upon the operation or facilities of a local agency, and there is no feasible method to satisfactorily mitigate the impact.
SEC. 5. SEC. 6.Section 54224 of the Government Code is amended to read:54224.Nothing in this article shall preclude a local agency that purchases surplus land from a disposing agency pursuant to this article from reconveying the surplus land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing as authorized under other provisions of law.
SEC. 6. SEC. 7.Section 54225 of the Government Code is amended to read:54225.Any local agency disposing of surplus land to an entity described in Section 54222 that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land. The payment period for surplus land disposed of for housing for persons and families of low and moderate income may exceed 20 years, but the payment period shall not exceed the term that the land is required to be used for low- or moderate-income housing.
SEC. 7. SEC. 8.Section 54227 of the Government Code is amended to read:54227.(a)In the event that any local agency disposing of surplus land receives a notice of interest to purchase or lease that land from more than one of the entities to which notice of availability was given pursuant to this article, the local agency shall give first priority to the entity or entities that agree to use the site for housing that meets the requirements of Section 54222.5. If the local agency receives offers from more than one entity that agrees to meet the requirements of Section 54222.5, then the local agency shall give priority to the entity that proposes to provide the greatest number of units that meet the requirements of Section 54222.5. In the event that more than one entity proposes the same number of units that meet the requirements of Section 54222.5, priority shall be given to the entity that proposes the deepest average level of affordability for the affordable units. A local agency may negotiate concurrently with all entities that provide notice of interest for the purpose of developing low- and moderate-income housing that meets the requirements of Section 54222.5.
(b)Notwithstanding subdivision (a), first priority shall be given to an entity that agrees to use the site for park or recreational purposes if the land being offered is already being used and will continue to be used for park or recreational purposes, or if the land is designated for park and recreational use in the local general plan and will be developed for that purpose.
SEC. 8. SEC. 9.Section 54230.5 of the Government Code is amended to read:54230.5.(a)(1)A local agency that disposes of surplus land in violation of this article after receiving a notification from the Department of Housing and Community Development pursuant to subdivision (b) that the local agency is in violation of this article shall be liable for a penalty of 30 percent of the greater of the final sale price of the surplus land price, or of the fair market value of the surplus land at the time of disposition, as determined by an independent appraisal, of the surplus land sold in violation of this article for a first violation and 50 percent of the greater of the two sums, for any subsequent violation. An entity identified in Section 54222 or a person who would have been eligible to apply for residency in any affordable housing developed or a housing organization as defined in Section 65589.5, or any beneficially interested person or entity may bring an action to enforce this section. A local agency shall have 60 days to cure or correct an alleged violation before an action may be brought to enforce this section, unless the local agency disposes of the surplus land before curing or correcting the alleged violation, or the department deems the alleged violation not to be a violation in less than 60 days.
(2)A penalty assessed pursuant to this subdivision shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(3)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(b)(1)Prior to Before agreeing to terms for the disposition of surplus land, a local agency shall provide to the Department of Housing and Community Development a description of the notices of availability sent, and negotiations conducted with any responding entities, in regard to the disposal of the parcel of surplus land and a copy of any restrictions to be recorded against the property pursuant to Section 54233 54222.5, 54233, or 54233.5, whichever is applicable, in a form prescribed by the Department of Housing and Community Development. A local agency may submit this information after it has sent notices of availability required by Section 54222 and concluded negotiations with any responding agencies. A local agency shall not be liable for the penalty imposed by subdivision (a) if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the description.
(2)The Department of Housing and Community Development shall do all of the following:
(A)Make available educational resources and materials that inform each agency of its obligations under this article and that provide guidance on how to comply with its provisions.
(B)Review information submitted pursuant to paragraph (1).
(C)Submit written findings to the local agency within 30 days of receipt of the description required by paragraph (1) from the local agency if the proposed disposal of the land will violate this article.
(D)Review, adopt, amend, or repeal guidelines to establish uniform standards to implement this section. The guidelines adopted pursuant to this subdivision are not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2.
(E)Provide the local agency reasonable time, but not less than 60 days, to respond to the findings before taking any other action authorized by this section.
(3)(A)The local agency shall consider findings made by the Department of Housing and Community Development pursuant to subparagraph (C) of paragraph (2) and shall do one of the following:
(i)Correct any issues identified by the Department of Housing and Community Development.
(ii)Provide written findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings.
(B)If the local agency does not correct issues identified by the Department of Housing and Community Development, does not provide findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings, or if the Department of Housing and Community Development finds that the local agencys findings are deficient in addressing the issues identified by the Department of Housing and Community Development, the Department of Housing and Community Development shall notify the local agency, and may notify the Attorney General, that the local agency is in violation of this article.
(c)The Department of Housing and Community Development shall implement the changes in this section made by the act adding this subdivision commencing on January 1, 2021.
(d)Notwithstanding subdivision (c), this section shall not be construed to limit any other remedies authorized under law to enforce this article including public records act requests pursuant to Division 10 (commencing with Section 7920.000) of Title 1.
SEC. 10.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
As used in this article, the following definitions shall apply:
(a)(1)Local agency means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.
(2)The Legislature finds and declares that the term district as used in this article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law.
(b)(1)Surplus land means land owned in fee simple by any local agency for which the local agencys governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agencys use. Land shall be declared either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it consistent with an agencys policies or procedures. A local agency, on an annual basis, may declare multiple parcels as surplus land or exempt surplus land.
(2)Surplus land includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.
(3)Nothing in this article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with Section 54226.
(c)(1)Except as provided in paragraph (2), agencys use shall include, but not be limited to, land that is being used, is planned to be used pursuant to a written plan adopted by the local agencys governing board for, or is disposed to support pursuant to subparagraph (B) of paragraph (2) agency work or operations, including, but not limited to, utility sites, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, and buffer sites near sensitive governmental uses, including, but not limited to, waste water treatment plants.
(2)(A)Agencys use shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agencys use.
(B)In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, agencys use may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agencys governing body takes action in a public meeting declaring that the use of the site will do one of the following:
(i)Directly further the express purpose of agency work or operations.
(ii)Be expressly authorized by a statute governing the local agency, provided the district complies with Section 54233.5 where if applicable.
(d)Open-space purposes means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources.
(e)Persons and families of low or moderate income has the same meaning as provided in Section 50093 of the Health and Safety Code.
(f)(1)Except as provided in paragraph (2), exempt surplus land means any of the following:
(A)Surplus land that is transferred pursuant to Section 25539.4 or 37364.
(B)Surplus land that is (i) less than 5,000 square feet in area, (ii) less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet in area, whichever is less, or (iii) has no record access and is less than 10,000 square feet in area; and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. If the surplus land is not sold to an owner of contiguous land, it is not considered exempt surplus land and is subject to this article.
(C)Surplus land that a local agency is exchanging for another property necessary for the agencys use.
(D)Surplus land that a local agency is transferring to another local, state, or federal agency for the agencys use, or to a federally recognized California Indian tribe.
(E)Surplus land that is a former street, right-of-way, or easement, and is conveyed to an owner of an adjacent property.
(F)Surplus land that is put out to open, competitive bid by a local agency, provided all entities identified in subdivision (a) of Section 54222 will be invited to participate in the competitive bid process, for either of the following purposes:
(i)A housing development, which that may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located.
(ii)A mixed-use development that is more than one acre in area, that includes not less than 300 housing residential units, and that restricts at least 25 percent of the residential units to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(G)Surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. An existing nonresidential land use designation on the surplus land is not a legal restriction that would make housing prohibited for purposes of this subparagraph. Nothing in this article limits a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land.
(H)Surplus land that was granted by the state in trust to a local agency or that was acquired by the local agency for trust purposes by purchase or exchange, and for which disposal of the land is authorized or required subject to conditions established by statute.
(I)Land that is subject to Sections 17388, 17515, 17536, 81192, 81397, 81399, 81420, and 81422 of the Education Code and Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code, unless compliance with this article is expressly required.
(J)Surplus land that is a former military base that was conveyed by the federal government to a local agency, and is subject to Article 8 (commencing with Section 33492.125) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, provided that all of the following conditions are met:
(i) The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses, and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base.
(ii)The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least 25 percent of the initial 1,400 residential units developed shall be restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(iii)Prior to Before disposition of the surplus land, the agency adopts written findings that the land is exempt surplus land pursuant to this subparagraph.
(iv)Prior to the Before disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agencys project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient.
(v)The agency includes in the annual report required by paragraph (2) of subdivision (a) of Section 65400 the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, or lower income households, as defined in Section 50079.5 of the Health and Safety Code.
A violation of this subparagraph is subject to the penalties described in Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph or the settlement agreement.
(K)Real property that is used by a district for agencys use expressly authorized in subdivision (c).
(L)Land that has been transferred before June 30, 2019, by the state to a local agency pursuant to Section 32667 of the Streets and Highways Code and has a minimum planned residential density of at least 100 dwelling units per acre, and includes 100 or more residential units that are restricted to persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing. For purposes of this paragraph, not more than 20 percent of the affordable units may be restricted to persons and families of moderate income and at least 80 percent of the affordable units must be restricted to persons and families of lower income as defined in Section 50079.5 of the Health and Safety Code.
(M)Land that is owned by a California public-use airport on which residential use is prohibited pursuant to Federal Aviation Administration Order 5190.6B, Airport Compliance Program, Chapter 20 Compatible Land Use and Airspace Protection.
(2)Notwithstanding paragraph (1), a written notice of the availability of surplus land for open-space purposes shall be sent to the entities described in subdivision (b) of Section 54222 prior to before disposing of the surplus land, provided the land does not meet the criteria in subparagraph (H) of paragraph (1), if the land is any of the following:
(A)Within a coastal zone.
(B)Adjacent to a historical unit of the State Parks System.
(C)Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places.
(D)Within the Lake Tahoe region as defined in Section 66905.5.
SEC. 2.Section 54222 of the Government Code is amended to read:54222.Except as provided in Division 23 (commencing with Section 33000) of the Public Resources Code, any local agency disposing of surplus land shall send, prior to before disposing of that property or participating in negotiations to dispose of that property with a prospective transferee, a written notice of availability of the property to all of the following:
(a)(1)A written notice of availability for the purpose of developing low- and moderate-income housing shall be sent to any local public entity, as defined in Section 50079 of the Health and Safety Code, within whose jurisdiction that has jurisdiction where the surplus land is located. Housing sponsors, as defined by Section 50074 of the Health and Safety Code, that have notified the Department of Housing and Community Development of their interest in surplus land shall be sent a notice of availability of surplus land for the purpose of developing low- and moderate-income housing. All notices shall be sent by electronic mail, or by certified mail, and shall include the location and a description of the property.
(2)The Department of Housing and Community Development shall maintain on its internet website an up-to-date listing of all notices of availability throughout the state. state and a listing of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.
(b)A written notice of availability for open-space purposes shall be sent:
(1)To any park or recreation department of any city within which the land may be situated. surplus land is located.
(2)To any park or recreation department of the county within which the land is situated. surplus land is located.
(3)To any regional park authority having jurisdiction within the area in which the land is situated. surplus land is located.
(4)To the State Resources Agency or any agency that may succeed to its powers.
(c)A written notice of availability of land suitable for school facilities construction or use by a school district for open-space purposes shall be sent to any school district in whose jurisdiction the land is located. that has jurisdiction where the surplus land is located.
(d)A written notice of availability for the purpose of developing property located within an infill opportunity zone designated pursuant to Section 65088.4 or within an area covered by a transit village plan adopted pursuant to the Transit Village Development Planning Act of 1994 (Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7) shall be sent to any county, city, city and county, successor agency to a former redevelopment agency, public transportation agency, or housing authority within whose jurisdiction the surplus land is located.
(e)The entity or association desiring to purchase or lease the surplus land for any of the purposes authorized by this section shall notify in writing the disposing agency of its interest in purchasing or leasing the land within 60 days after the agencys notice of availability of the land is sent via certified mail or provided via electronic mail.
(f)For the purposes of this section, participating in negotiations does not include the commissioning of appraisals, due diligence prior to disposition, discussions with brokers or real estate agents not representing a potential buyer, or other studies to determine value or best use of land, issuance of a request for qualifications, development of marketing materials, or discussions conducted exclusively among local agency employees and elected officials.
SEC. 3.Section 54222.5 of the Government Code is amended to read:54222.5.An entity proposing to use the surplus land for developing low- and moderate-income housing shall agree to make available not less than 25 percent of the total number of units developed on the parcels at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or affordable rent, as defined in Section 50053 of the Health and Safety Code, to lower income households, as defined in Section 50079.5 of the Health and Safety Code. Rental units shall remain affordable to, and occupied by, lower income households for a period of at least 55 years. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with paragraph (2) of subdivision (c) of Section 65915. These requirements shall be contained in a covenant or restriction recorded against the surplus land at the time of sale, which that shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:
(a)The local agency that disposed of the property. surplus land.
(b)A resident of a unit subject to this section.
(c)A residents residents association with members who reside in units subject to this section.
(d)A former resident of a unit subject to this section who last resided in that unit.
(e)An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:
(1)Is of low or moderate income, as defined in Section 50093 of the Health and Safety Code.
(2)Is able and willing to occupy that particular unit.
(3)Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.
(f)A person on an affordable housing waiting list who is of low or moderate income, as defined in Section 50093 of the Health and Safety Code, and who is able and willing to occupy a unit subject to this section.
SEC. 4.Section 54223 of the Government Code is amended to read:54223.(a)After the disposing agency has received a notice of interest from the entity desiring to purchase or lease the surplus land on terms that comply with this article, the disposing agency and the entity shall enter into good faith negotiations to determine a mutually satisfactory sales price and terms or lease terms. If the price or terms cannot be agreed upon after a good faith negotiation period of not less than 90 days, the land may be disposed of local agency may dispose of the surplus land without further regard to this article, except that Section 54233 shall apply.
(b)Residential use shall be deemed an acceptable use for the surplus land for the purposes of good faith negotiations with a local agency conducted pursuant to this article. Nothing in this subdivision shall restrict a local jurisdictions authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land. Except as provided in subdivision (c), terms agreed to pursuant to the negotiations shall not do any of the following:
(1)Disallow residential use of the site as a condition of the disposal.
(2)Reduce the allowable number of residential units or the maximum lot coverage below what may be allowed by zoning or general plan requirements.
(3)Require as a condition of disposal, any design standards or architectural requirements that would have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, other than the minimum standards required by general plan, zoning, and subdivision standards and criteria.
(c)Terms agreed to pursuant to the negotiations required by subdivision (a) may include limitations on residential use or density if, without the limitations, the residential use or density would have a specific, adverse impact, supported by written findings, upon the public health or safety or upon the operation or facilities of a local agency, and there is no feasible method to satisfactorily mitigate the impact.
SEC. 5.Section 54224 of the Government Code is amended to read:54224.Nothing in this article shall preclude a local agency, housing authority, or redevelopment agency which agency that purchases surplus land from a disposing agency pursuant to this article from reconveying the surplus land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing as authorized under other provisions of law.
SEC. 6.Section 54225 of the Government Code is amended to read:54225.Any public local agency disposing of surplus land to an entity described in Section 54222 that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land. The payment period for surplus land disposed of for housing for persons and families of low and moderate income may exceed 20 years, but the payment period shall not exceed the term that the land is required to be used for low- or moderate-income housing.
SEC. 7.Section 54227 of the Government Code is amended to read:54227.(a)In the event that any local agency disposing of surplus land receives a notice of interest to purchase or lease that land from more than one of the entities to which notice of available surplus land availability was given pursuant to this article, the local agency shall give first priority to the entity or entities that agree to use the site for housing that meets the requirements of Section 54222.5. If the local agency receives offers from more than one entity that agrees to meet the requirements of Section 54222.5, then the local agency shall give priority to the entity that proposes to provide the greatest number of units that meet the requirements of Section 54222.5. In the event that more than one entity proposes the same number of units that meet the requirements of Section 54222.5, priority shall be given to the entity that proposes the deepest average level of affordability for the affordable units. A local agency may negotiate concurrently with all entities that provide notice of interest for the purpose of developing affordable low- and moderate-income housing that meets the requirements of Section 54222.5.
(b)Notwithstanding subdivision (a), first priority shall be given to an entity that agrees to use the site for park or recreational purposes if the land being offered is already being used and will continue to be used for park or recreational purposes, or if the land is designated for park and recreational use in the local general plan and will be developed for that purpose.
SEC. 8.Section 54230.5 of the Government Code is amended to read:54230.5.(a)(1)A local agency that disposes of surplus land in violation of this article after receiving a notification from the Department of Housing and Community Development pursuant to subdivision (b) that the local agency is in violation of this article shall be liable for a penalty of 30 percent of the final sale price of the surplus land sold in violation of this article for a first violation and 50 percent for any subsequent violation. An entity identified in Section 54222 or a person who would have been eligible to apply for residency in any affordable housing developed or a housing organization as defined in Section 65589.5, or any beneficially interested person or entity may bring an action to enforce this section. A local agency shall have 60 days to cure or correct an alleged violation before an action may be brought to enforce this section, unless the local agency disposes of the surplus land before curing or correcting the alleged violation, or the department deems the alleged violation not to be a violation in less than 60 days.
(2)A penalty assessed pursuant to this subdivision shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households.
(3)Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households. Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature.
(b)(1)Prior to agreeing to terms for the disposition of surplus land, a local agency shall provide to the Department of Housing and Community Development a description of the notices of availability sent, and negotiations conducted with any responding entities, in regard to the disposal of the parcel of surplus land and a copy of any restrictions to be recorded against the property pursuant to Section 54233 or 54233.5, whichever is applicable, in a form prescribed by the Department of Housing and Community Development. A local agency may submit this information after it has sent notices of availability required by Section 54222 and concluded negotiations with any responding agencies. A local agency shall not be liable for the penalty imposed by subdivision (a) if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this article within 30 days of receiving the description.
(2)The Department of Housing and Community Development shall do all of the following:
(A)Make available educational resources and materials that inform each agency of its obligations under this article and that provide guidance on how to comply with its provisions.
(B)Review information submitted pursuant to paragraph (1).
(C)Submit written findings to the local agency within 30 days of receipt of the description required by paragraph (1) from the local agency if the proposed disposal of the land will violate this article.
(D)Review, adopt, amend, or repeal guidelines to establish uniform standards to implement this section. The guidelines adopted pursuant to this subdivision are not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2.
(E)Provide the local agency reasonable time, but not less than 60 days, to respond to the findings before taking any other action authorized by this section.
(3)(A)The local agency shall consider findings made by the Department of Housing and Community Development pursuant to subparagraph (B) (C) of paragraph (2) and shall do one of the following:
(i)Correct any issues identified by the Department of Housing and Community Development.
(ii)Provide written findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings.
(B)If the local agency does not correct issues identified by the Department of Housing and Community Development, does not provide findings explaining the reason its process for disposing of surplus land complies with this article and addressing the Department of Housing and Community Developments findings, or if the Department of Housing and Community Development finds that the local agencys findings are deficient in addressing the issues identified by the Department of Housing and Community Development, the Department of Housing and Community Development shall notify the local agency, and may notify the Attorney General, that the local agency is in violation of this article.
(c)The Department of Housing and Community Development shall implement the changes in this section made by the act adding this subdivision commencing on January 1, 2021.
(d)Notwithstanding subdivision (c), this section shall not be construed to limit any other remedies authorized under law to enforce this article including public records act requests pursuant to Division 10 (commencing with Section 7920.000) of Title 1.
|
Date
|
Status
|
|---|---|
| Oct 11, 2023 | Chaptered by Secretary of State - Chapter 788, Statutes of 2023. |
| Oct 11, 2023 | Approved by the Governor. |
| Sep 21, 2023 | Enrolled and presented to the Governor at 3:30 p.m. |
| Sep 14, 2023 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 60. Noes 13. Page 3578.). |
| Sep 13, 2023 | In Assembly. Concurrence in Senate amendments pending. |
| Sep 13, 2023 | Read third time. Passed. Ordered to the Assembly. (Ayes 31. Noes 8. Page 2729.). |
| Sep 11, 2023 | Read second time. Ordered to third reading. |
| Sep 8, 2023 | Read third time and amended. Ordered to second reading. |
| Sep 5, 2023 | Read second time. Ordered to third reading. |
| Sep 1, 2023 | From committee: Do pass. (Ayes 5. Noes 2.) (September 1). |
| Aug 28, 2023 | In committee: Referred to APPR suspense file. |
| Aug 9, 2023 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Jul 11, 2023 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 2.) (July 10). Re-referred to Com. on APPR. |
| Jul 3, 2023 | Read second time and amended. Re-referred to Com. on HOUSING. |
| Jun 29, 2023 | From committee: Amend, and do pass as amended and re-refer to Com. on HOUSING. (Ayes 6. Noes 1.) (June 28). |
| Jun 21, 2023 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on GOV. & F. |
| Jun 15, 2023 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on GOV. & F. |
| May 31, 2023 | Referred to Coms. on GOV. & F. and HOUSING. |
| May 23, 2023 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 22, 2023 | Read third time. Passed. Ordered to the Senate. (Ayes 53. Noes 16. Page 1698.) |
| May 18, 2023 | Read second time. Ordered to third reading. |
| May 17, 2023 | From committee: Do pass. (Ayes 12. Noes 4.) (May 17). |
| Apr 27, 2023 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (April 26). Re-referred to Com. on APPR. |
| Apr 6, 2023 | Re-referred to Com. on H. & C.D. |
| Apr 5, 2023 | Read second time and amended. |
| Apr 5, 2023 | From committee: Amend, and do pass as amended and re-refer to Com. on H. & C.D. (Ayes 6. Noes 2.) (March 29). |
| Mar 15, 2023 | Re-referred to Com. on L. GOV. |
| Mar 14, 2023 | From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended. |
| Feb 17, 2023 | Referred to Coms. on L. GOV. and H. & C.D. |
| Feb 8, 2023 | From printer. May be heard in committee March 10. |
| Feb 7, 2023 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 14, 2023 | AB 480 Ting Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 13, 2023 | Assembly 3rd Reading AB480 Ting et al. By Umberg | Senate Floor |
Passed |
|
| Sep 1, 2023 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 28, 2023 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 10, 2023 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Housing |
Passed |
|
| Jun 28, 2023 | Do pass as amended, but first amend, and re-refer to the Committee on [Housing] | Senate Standing Committee on Governance and Finance |
Passed |
|
| May 22, 2023 | AB 480 Ting Assembly Third Reading | Assembly Floor |
Passed |
|
| May 17, 2023 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 26, 2023 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Housing and Community Development |
Passed |
|
| Mar 29, 2023 | Do pass as amended and be re-referred to the Committee on [Housing and Community Development] | Assembly Standing Committee on Local Government |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Association of California Airports | ** Support | |
| Association of California Healthcare Districts | ** Against | |
| Av Edge | ** Against | |
| Calaveras County Economic & Community Development | ** Against | |
| California Airports Council | ** Support | |
| California Association For Local Economic Development | ** Against | |
| California Association Of Sanitation Agencies | ** Against | |
| California Housing Partnership | ** Support | |
| California Municipal Utilities Association | ** Against | |
| California Special Districts Association | ** Against | |
| California State Association Of Counties | ** Against | |
| City Manager John Jansons, City of Kerman | ** Against | |
| City of Bell Gardens Community Development Department | ** Against | |
| City of Bellflower | ** Against | |
| City Of Beverly Hills | ** Against | |
| City of Buena Park | ** Against | |
| City of Chino | ** Against | |
| City of Concord | ** Against | |
| City of Corona | ** Against | |
| City of Elk Grove | ** Against | |
| City Of Fowler | ** Against | |
| City Of Fullerton | ** Against | |
| City of Indian Wells | ** Against | |
| City Of Inglewood | ** Against | |
| City of Inglewood City Hall | ** Against | |
| City of Kerman, CA | ** Against | |
| City Of Lancaster | ** Against | |
| City of Montclair | ** Against | |
| City of Morgan Hill | ** Against | |
| City of Murrieta | ** Against | |
| City Of Ontario | ** Against | |
| City Of Palmdale | ** Against | |
| City Of Rancho Cordova | ** Against | |
| City Of Salinas | ** Against | |
| City of San Marcos | ** Against | |
| City of Santa Rosa | ** Against | |
| City of Suisun | ** Against | |
| City of Thousand Oaks | ** Against | |
| City Of Tustin | ** Against | |
| City of Vista | ** Against | |
| city of west sacramento | * Against | Apr 26, 2023 |
| EAH Housing | ** Support | |
| East Bay Housing Organization | ** Support | |
| East Bay Housing Organizations | ** Support | |
| Eden Housing | ** Support | |
| Greater Sacramento Economic Council | ** Against | |
| Housing Association of Northern California NPH | * Support | Jul 10, 2023 |
| Housing Leadership Council of San Mateo County | ** Support | |
| Irvine Ranch Water District | ** Against | |
| John Jansons, City Manager, City of Kerman | ** Against | |
| Kosmont Companies | ** Against | |
| League Of California Cities | ** Against | |
| Los Angeles World Airports | * Support | Apr 26, 2023 |
| MidPen Housing Corporation | ** Support | |
| Monument Impact | ** Support | |
| None | * Indeterminate | Jun 28, 2023 |
| Nonprofit Housing Association of Northern California | ** Support | |
| opportunity stanislaus | ** Against | |
| Public Advocates | ** Support | |
| Public Interest Law Project | ** Support | |
| RCRC | ** Against | |
| Resources for Community Development | ** Support | |
| Rural County Representatives of California | ** Against | |
| San Diego Housing Federation | ** Support | |
| Solano Economic Development Corporation | ** Against | |
| The Public Interest Law Project | ** Support | |
| Tulare Chamber of Commerce | ** Against | |
| United Way Greater LA | * Support | Apr 26, 2023 |
| United Way Of Greater Los Angeles | * Support | Jul 10, 2023 |
| Urban Counties of California | ** Against |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 480
Author:(Ting)
As Amended Ver:September 8, 2023
Majority vote
SUMMARY
Makes numerous changes to the Surplus Land Act (SLA), including the disposal process, the authority of the Department of Housing and Community Development (HCD), and penalties for violations.
Senate Amendments
- Add a definition of "dispose" to mean the sale of surplus land, or the lease of surplus land for longer than 15 years, inclusive of any extension or renewal options included in the initial lease, entered into on or after January 1, 2024. "Dispose" shall not mean either of the following:
- The entering of a lease for surplus land, which is for a term of 15 years or less, inclusive of any extension or renewal options included in the terms of the initial lease.
- The entering of a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease.
- Modify the definition of "exempt surplus land" as follows:
- Clarify that, within the category of surplus land that a local agency is exchanging for another property necessary for the agency's use, "property" may include easements necessary for the agency's use.
- Revise and recast categories of exempt surplus land that will be developed for housing or mixed-use developments, as follows:
- Remove a requirement for open, competitive bidding for mixed-use developments that restrict 100% of the residential units to low or moderate income residents, as well as other specified restrictions and conditions.
- Clarify that the following categories of housing or mixed-use developments are exempt, subject to competitive bidding requirements:
- Surplus land for housing or mixed-use developments that are more than one acre but less than 10 acres and include at least 300 residential units, at least 25% of which are restricted to lower income households with affordability restrictions contained in a recorded covenant or restriction, as specified.
- Surplus land of 10 or more acres for disposition to one or more buyers pursuant to a local plan or ordinance or state law, the aggregate development of which includes the greater of the following: at least 300 residential units; or, a number of residential units that equals 10 times the number of acres of the surplus land or 10,000 residential units, whichever is less. At least 25% of the residential units must be restricted to lower income households, and at least 25% of these units must be made available before or concurrently with every 25% of nonresidential development made available, as specified. Violations of this provision are subject to the penalty provisions of the SLA, and requirements of this provision must be contained in a recorded covenant or restriction, as specified.
- Add mixed-use developments that restrict at least 25% of the residential units to lower income households with specified affordability restrictions, in which at least 50% of the square footage of the new construction is designated for residential use. These developments cannot be located in an urbanized area, as specified.
- Add, for local agencies whose primary mission or purpose is to supply the public with a transportation system, surplus land that is developed for commercial or industrial uses or activities, as specified, if the agency meets a number of specified conditions.
- Clarify that "participating in negotiations" does not include: issuing a request for proposals or request for qualifications, as specified; negotiating a lease, exclusive negotiating agreement, or option agreement, as specified; or, negotiating with a developer to determine if the local agency can satisfy disposal exemption requirements, as specified.
- Clarify that the SLA shall not: prevent a local agency from obtaining fair market value for the disposition of surplus land; be interpreted to limit a local agency's authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land; or, be interpreted to require a local agency to dispose of land that is determined to be surplus.
- Alter the penalty provisions of the SLA to provide different penalties for violations of the SLA that occur as a result of sales, and violations that occur as a result of leases, as specified.
- Specify that the penalty provisions of the SLA shall not apply to violations that do not impact the availability and priority of, or the construction of, affordable housing or the ultimate disposition of the land in compliance with the SLA, such as clerical errors.
- Alter grandfathering provisions of the SLA applicable to the disposition of specified properties subject to an exclusive negotiating agreement or legally binding agreement, by extending the deadlines to December 31, 2027, as specified.
- Remove a requirement that a notice of availability must be in a form prescribed by the HCD.
- Add language requiring contingent enactment of this bill with SB 747 (Caballero) of the current legislative session.
- Make a number of additional technical, clarifying and conforming changes.
COMMENTS
- Local Surplus Lands. The SLA spells out the steps local agencies must follow when they dispose of land they no longer need. Before local officials can dispose of property, they must declare that the land is no longer necessary for the agency's use in a public meeting and declare the land either "surplus land" or "exempt surplus land." The SLA designates certain types of land as "exempt surplus land," which is not subject to the requirements of the SLA. All other surplus land must follow the procedures laid out in the SLA.
After a local agency declares that a piece of land is surplus to its needs (and is not exempt), the agency must send a written notice of availability to various public agencies and nonprofit groups, referred to as "housing sponsors," notifying them that land is available for any of the following purposes:
- Low- and moderate-income housing.
- Park and recreation, and open space.
- School facilities.
- Infill opportunity zones or transit village plans.
If another agency or housing sponsor wants to purchase or lease the surplus land for one of these purposes, it must tell the disposing agency within 60 days. Except where the surplus land is currently used for park or recreational purposes, the local agency must give priority to the housing sponsor that proposes to provide the greatest level of affordable housing on the land. If the surplus land is currently used for park or recreational purposes, the disposing agency must give first priority to an entity that agrees to continue to use the site for park or recreational purposes.
If the local agency and any of the prioritized entities are not able to negotiate a mutually satisfactory price after 90 days of good faith negotiations, the local agency may proceed to sell the land on the open market.
- Changes to the SLA. AB 1486 (Ting), Chapter 664, Statutes of 2019, substantially revised the SLA to increase the emphasis on affordable housing and address concerns that some local agencies were bypassing the Act's requirements. Among other changes, AB 1486 broadened the definition of surplus land and required land to be designated as surplus prior to the local agency selling the land, which ensures that the SLA is triggered such that a local agency must comply with it. AB 1486 prohibited local agencies from counting the sale of land for economic development purposes as being "for the agency's use." This means that local agencies must open their properties up to affordable housing developers first, even if they have a different purpose in mind for the property. Additionally, AB 1486 instituted a requirement that if a property sold as surplus is not sold to a housing sponsor, but housing is developed on it later, 15% of the units must be sold or rented at an affordable cost to lower income households. Finally, AB 1486 imposed penalties on local agencies that violate the SLA, totaling 30% of the sales price of land disposed of in violation of the Act for a first violation, and 50% of the price of the land for subsequent violations. These penalty revenues must be deposited in a local housing trust fund.
Prior to the enactment of AB 1486, state law did not require local agencies to always designate land as surplus prior to disposing of it, which meant they could enter into negotiations to dispose of land to further local priorities such as economic development without going through the SLA process. These types of dispositions often include exclusive negotiating agreements (ENAs) between a local agency and a prospective buyer under which a local agency agrees not to make similar deals with other potential buyers for a specified period. ENAs grant local agencies and buyers time to negotiate the terms of the disposition of the property, including development disposition agreements that result in restrictions on the use of the property to the uses desired by the local agency and other public benefits such as affordable housing requirements.
Please refer to policy committee analyses of this bill for additional background and comments.
According to the Author
"California is facing a housing crisis and unused public land has the potential to promote affordable housing development throughout the state. These properties are key to building housing that is connected to transit, schools, and jobs. In fact, most affordable housing in California is built on what used to be public land. AB 480 clarifies and strengthens provisions in the Surplus Land Act that will promote the use of public land for affordable housing."
Arguments in Support
East Bay Housing Organizations, the Non Profit Housing Association of Northern California, the Public Interest Law Project, and the San Diego Housing Federation, in support of a prior version of the bill, write, "Redeveloping unused public land creates more affordable homes throughout the state and advances California's environmental and economic goals by increasing affordable infill development near transit and jobs. By using public land for the public good, we can ensure the state is better positioned to meet its low-income housing goals over the next decade…
"The bill works in partnership with local governments, by providing new streamlining opportunities for compliance with the SLA, thus ensuring they are not overly burdened with unnecessary bureaucratic processes. This bill is an important step towards helping low-income Californians find stable housing opportunities."
Arguments in Opposition
The Association of California Cities – Orange County (ACC-OC), in opposition to a prior version of the bill, writes, "ACC-OC regrets to inform you that we oppose AB 480. This bill would make a number of changes to the Surplus Lands Act (SLA) increasing penalties for violations, revising the process for the disposal of surplus land and exempt surplus land for local agencies, modifying the definition of exempt surplus land, and standardizing public notifications of the availability of surplus land.
"AB 480 adds burdensome and unnecessary new procedural requirements to an already complicated and expensive Surplus Lands Act process. Instead of making it easier to comply with the SLA through a streamlined process, this bill introduces additional uncertainty to the process while also increasing penalties for compliance."
FISCAL COMMENTS
According to the Senate Appropriations Committee:
- The Department of Housing and Community Development (HCD) indicates that costs associated with this bill would be minor and absorbable, but notes that, to the extent multiple bills are enacted that make changes to the SLA, HCD may need to request additional staffing resources to absorb the cumulative workload for additional monitoring and enforcement, updating guidelines, and providing technical assistance to local agencies. Staff estimates, however, that HCD may incur moderate one-time and ongoing costs to update IT infrastructure to maintain lists of entities interested in surplus land for affordable housing purposes and to include website links to each local agency notification of availability. (General Fund)
- Unknown mandated costs for local agencies to revise the process for declaring land as surplus land or exempt surplus land and to meet other requirements of the bill, potentially partially offset by minor savings by allowing for administrative declaration of certain properties as exempt surplus lands. Local costs may be reimbursable by the state, subject to a determination by the Commission on State Mandates, should a local agency file a claim. (General Fund)
VOTES:
ASM LOCAL GOVERNMENT: 6-2-0
YES: Aguiar-Curry, Boerner Horvath, Pacheco, Ramos, Robert Rivas, Wilson
NO: Dixon, Waldron
ASM HOUSING AND COMMUNITY DEVELOPMENT: 6-1-1
YES: Wicks, Wendy Carrillo, Gabriel, Kalra, Quirk-Silva, Ward
NO: Sanchez
ABS, ABST OR NV: Joe Patterson
ASM APPROPRIATIONS: 12-4-0
YES: Holden, Bryan, Calderon, Wendy Carrillo, Mike Fong, Hart, Lowenthal, Papan, Pellerin, Robert Rivas, Weber, Ortega
NO: Megan Dahle, Dixon, Mathis, Sanchez
ASSEMBLY FLOOR: 53-16-11
YES: Addis, Aguiar-Curry, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Connolly, Mike Fong, Friedman, Gabriel, Garcia, Gipson, Haney, Hart, Holden, Jackson, Jones-Sawyer, Kalra, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Ortega, Papan, Pellerin, Ramos, Reyes, Luz Rivas, Robert Rivas, Blanca Rubio, Santiago, Schiavo, Ting, Villapudua, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
NO: Alanis, Megan Dahle, Davies, Dixon, Essayli, Flora, Vince Fong, Gallagher, Hoover, Mathis, Jim Patterson, Joe Patterson, Sanchez, Ta, Waldron, Wallis
ABS, ABST OR NV: Chen, Grayson, Irwin, Lackey, Stephanie Nguyen, Pacheco, Petrie‑Norris, Quirk-Silva, Rodriguez, Soria, Valencia
SENATE FLOOR: 31-8-1
YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Cortese, Dodd, Durazo, Eggman, Glazer, Gonzalez, Hurtado, Laird, Limón, McGuire, Menjivar, Min, Newman, Padilla, Portantino, Roth, Rubio, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener
NO: Dahle, Grove, Jones, Nguyen, Niello, Ochoa Bogh, Seyarto, Wilk
ABS, ABST OR NV: Caballero
UPDATED
VERSION: September 8, 2023
CONSULTANT: Angela Mapp / L. GOV. / (916) 319-3958 FN: 0002395
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 480 |
THIRD READING
Bill No: AB 480
Author: Ting (D), et al.
Amended: 9/8/23 in Senate
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 6-1, 6/28/23
AYES: Caballero, Blakespear, Durazo, Glazer, Skinner, Wiener
NOES: Seyarto
NO VOTE RECORDED: Dahle
SENATE HOUSING COMMITTEE: 9-2, 7/10/23
AYES: Wiener, Blakespear, Caballero, Cortese, McGuire, Padilla, Skinner, Umberg, Wahab
NOES: Ochoa Bogh, Seyarto
SENATE APPROPRIATIONS COMMITTEE: 5-2, 9/1/23
AYES: Portantino, Ashby, Bradford, Wahab, Wiener
NOES: Jones, Seyarto
ASSEMBLY FLOOR: 53-16, 5/22/23 - See last page for vote
SUBJECT: Surplus land
SOURCE: East Bay Housing Organization
Nonprofit Housing Association of Northern California
Public Interest Law Project
San Diego Housing Federation
DIGEST:
This bill makes various changes to the Surplus Land Act (SLA) regarding the disposal process, exemptions, and penalties for violations.
Senate Floor Amendments of 9/8/23 add a definition of “dispose” that includes certain leases of surplus land, apply specified penalties to leases of surplus land in violation of the law, establish an additional category of exempt surplus land for transit agency use, delete the authority for HCD to establish the form of notices of availability, and extend the ability to dispose of properties under prior versions of the Surplus Land Act to December 31, 2027. The amendments also make other technical and clarifying changes and include chaptering amendments with SB 747 (Caballero).
ANALYSIS:
Existing law:
- Establishes procedures for the disposal of publicly-owned land that is surplus to the needs of local agencies, under the Surplus Land Act.
- Require local officials that want to dispose of public property to declare that the land is no longer needed for the agency’s use in a public meeting and declare the land either “surplus land” or “exempt surplus land.”
- Require local agencies to follow the procedures laid out in the SLA before surplus land can be sold, including, but not limited, to:
- Send a written notice of availability to various public agencies and nonprofit groups, referred to as “housing sponsors,” notifying them that land is available for the following purposes:
- Low- and moderate-income housing;
- Park and recreation, and open space;
- School facilities; or
- Infill opportunity zones or transit village plans.
- Send a written notice of availability to various public agencies and nonprofit groups, referred to as “housing sponsors,” notifying them that land is available for the following purposes:
- Negotiate in good faith for 90 days with housing sponsors that respond.
- Allows the local agency to dispose of the property on the private market if agreement is not reached with a housing sponsor.
- Requires that, if a property sold as surplus is not sold to a housing sponsor, but housing is developed on it later, 15% of the units must be sold or rented at an affordable cost to lower income households.
- Imposes penalties of 30% of the sale price of the land for a first violation and 50% of the sale price for any subsequent violation for selling land in violation of the SLA. Establishes an enforcement process, which provides, among other things, that a local agency cannot be liable for a penalty if it is not notified by HCD that it is in violation of the act.
- Designates certain types of land as “exempt surplus land” and provides that the entirety of the SLA does not apply to exempt surplus land.
This bill:
- Allows, for specified categories of exempt surplus land, local agencies to declare the land “exempt surplus land” without holding a public meeting if the declaration and findings are published and available for public comment, including notification to housing sponsors and other potential buyers that receive notices of availability for surplus land, at least 30 days before the declaration takes effect.
- Defines “dispose” to mean either of the following:
- The sale of the surplus land.
- The entering of a lease for surplus land, which is for a term longer than 15 years, inclusive of any extension or renewal options included in the terms of the initial lease, entered into on or after January 1, 2024.
- Provides that “dispose” shall not mean either of the following:
- The entering of a lease for surplus land, which is for a term of 15 years or less, inclusive of any extension or renewal options included in the terms of the initial lease.
- The entering of a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease.
- Modifies the SLA’s definition of exempt surplus land in the following ways:
- No longer requires 100% affordable projects (at least 75% affordable to lower-income households), subject to affordability covenants, to be competitively bid to qualify as exempt surplus land, if the maximum affordable sales price or rent does not exceed 20% below median market rents or sales prices in the neighborhood.
- Modifies the exemption for competitively bid, mixed-use developments that include at least 300 units on 10 acres or more across one or more parcels that do not have to be adjacent, and that is competitively solicited or bid, if:
- Entities that receive notices of availability under the SLA are invited to participate;
- The development includes (1) 300 units, or (2) a number of units equal to 10 times the number acres, or 10,000 units, whichever is less;
- At least 25% of units are restricted to lower-income households with affordability covenants;
- At least 25% of units are made available for lease before, or at the same time, as every 25% of nonresidential development is made available for lease or sale and permitted for use;
- An indemnification clause is included that provides that if a violation occurs after disposition, the person or entity that acquired the property shall be liable for the penalties (subject to the SLA’s penalty provisions, in addition to any court penalties); and
- A covenant or restriction is recorded at the time of sale.
- Exempts mixed use projects, which do not have to be competitively bid, that meet all of the following conditions:
- 25% of the units are affordable to lower-income households;
- At least 50% of the square footage of the project is designated for residential use; and
- The development is located outside of urbanized areas, as defined.
- Clarifies that the exemption for surplus land that a local agency is exchanging for another property necessary for the agency’s use can include easements.
- Adds to the definition of exempt surplus land that is owned by a California public-use airport on which residential use is prohibited pursuant to FAA.
- Establishes an exemption that allows disposal for commercial or other revenue generating activities for transit agencies, as specified, if the agency meets all of the following conditions:
- The agency has an adopted land use plan or policy that designates at least 50 percent of the of the gross acreage covered by the adopted land use plan or policy for residential purposes. The adopted land use plan or policy shall also require the development of at least 300 residential units, or at least 10 residential units per gross acre, averaged across all land covered by the land use plan or policy, whichever is greater.
- At least 25% of the residential units developed are made available to lower income households at an affordable sales price or affordable rent.
- Land disposed of for residential purposes is put out to competitive bid.
- Prior to entering into an agreement to dispose of a parcel for non-residential development the agency, since January 1, 2020, must have entered into an agreement to dispose of a minimum of 25 percent of the land designated for affordable housing.
- Requires HCD to link to all notices of availability and list all entities that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.
- Clarifies that participating in negotiations does not include:
- Issuing requests for proposals or requests for qualifications to affordable housing sponsors under specified exemptions;
- Negotiating a lease, exclusive negotiating agreement, or option agreement for specified exemptions for the disposal of affordable housing; or
- Negotiating with a developer to determine if the local agency can satisfy specified disposal exemption requirements.
- Modifies the penalties for land disposed of in violation of the SLA, as follows:
- Imposes the same 30% and 50% penalties as current statute, but on a base of either:
- In the case of a sale, the greater of the final sale price of the land or the fair market value of the surplus land at the time of sale, as determined by an independent appraisal.
- In the case of a lease, the discounted net present value of the fair market value of the lease as of the date the lease was entered into, as determined by an independent appraisal of the lease of surplus land in violation of this article.
- Provides that the SLA penalties do not apply to violations that do not impact the availability and priority of land for, or construction of, affordable housing, such as clerical errors.
- Imposes the same 30% and 50% penalties as current statute, but on a base of either:
- Extends the deadline to December 31, 2027, for local agencies to dispose of property subject to an exclusive negotiating agreement that was entered into on or before September 30, 2019.
- Provides that if a local agency terminated an exclusive negotiating agreement or legally binding agreement to dispose of property pursuant to an earlier, superseded version of the SLA, the local agency may, in its sole reasonable discretion, elect whether to ask the party to the terminated exclusive negotiating agreement or legally binding agreement to dispose of property to consider reviving the terminated agreement. If the local agency and other party fully execute an instrument reviving the terminated agreement before January 1, 2024, on substantially the same terms and conditions as the terminated agreement, the revived agreement shall be subject applicable provisions of the SLA.
- Makes technical and clarifying changes to:
- Consolidate the provisions of the SLA that protect certain aspects of local government authority to set conditions for disposition in a single section;
- Clarify the affordability requirements for housing developed on tribal lands;
- Make other technical changes; and
- Include chaptering amendments with SB 747 (Caballero) and provide that AB 480 is contingent on the enactment of SB 747.
Background
Surplus Land Act. Public agencies are major landlords in some communities, owning significant pieces of real estate. When properties become surplus to their needs, public officials want to sell the land to recoup their investments. The Surplus Land Act (SLA) spells out the steps local agencies must follow when they want to dispose of land. It requires local governments to give a “first right of refusal” to other governments and nonprofit housing developers, and to negotiate in good faith with them to try to come to agreement.
Before local officials can dispose of property, they must declare that the land is no longer needed for the agency’s use in a public meeting and declare the land either “surplus land” or “exempt surplus land.” Agency use includes land that is being used, or is planned to be used pursuant to a written plan the local agency’s governing board adopts, or is disposed of to support agency work or operations.
The SLA designates certain types of land as “exempt surplus land,” and specifically provides that the entire law does not apply to exempt surplus land. All other surplus land must follow the procedures laid out in the SLA before a local agency can sell it. Before agencies can enter into negotiations to sell surplus land, they must send a written notice of availability to various public agencies and nonprofit groups, referred to as “housing sponsors,” notifying them that land is available for the following purposes:
- Low- and moderate-income housing;
- Park and recreation, and open space;
- School facilities; or
- Infill opportunity zones or transit village plans.
Housing sponsors can notify the Department of Housing and Community Development (HCD) that they are interested in acquiring surplus land to develop affordable housing. HCD maintains a list of notices of availability on its website.
If another agency or housing sponsor wants to use the surplus land for one of these purposes, it must tell the disposing agency within 60 days, and if multiple entities want to purchase the land, the housing sponsor that proposes to provide the greatest level of affordable housing gets priority. The agency and the housing sponsor then have an additional 90 days to negotiate a mutually satisfactory price and terms in good faith. If they cannot agree, the agency that owns the surplus land can sell the land on the private market. The SLA says that nothing in its provisions prevents a local agency from disposing of the land at or below fair market value, where not in conflict with other law.
AB 1486 (Ting, Chapter 664, Statutes of 2019). In 2019, the Legislature substantially revised the SLA to increase the emphasis on affordable housing and address concerns that some local agencies were bypassing the SLA’s requirements (AB 1486, Ting). Among other changes, AB 1486 broadened the definition of surplus land and required land to be designated as surplus prior to the local agency selling the land, which ensures that local agencies must comply with the SLA. AB 1486 prohibited local agencies from counting the sale of land for economic development purposes as being “for the agency’s use.” This means local agencies must open their properties up to affordable housing developers first, even if they have different purposes in mind for the property. Additionally, AB 1486 instituted a requirement that if a property sold as surplus is not sold to a housing sponsor, but housing is developed on it later, 15% of the units must be sold or rented at an affordable cost to lower income households.
AB 1486 also provided certain projects could use the previous version of the SLA before AB 1486 amended it, if the local agency, as of September 30, 2019, entered into an exclusive negotiating, or legally binding, agreement to dispose of property, provided the local agency completed the disposition by December 31, 2022. AB 1486 included a similar provision for land held in a Community Redevelopment Property Trust Fund, or designated in a long-range property management plan, for sale or retained for future development, so long as the local agency entered into the exclusive negotiating, or legally binding, agreement by December 31, 2020, and completes the disposition by December 31, 2022.
Several housing organizations want the Legislature to modify various provisions of the SLA.
Comments
- Purpose of the bill. According to the author, “California is facing a housing crisis and unused public land has the potential to promote affordable housing development throughout the state. These properties are key to building housing that is connected to transit, schools, and jobs. In fact, most affordable housing in California is built on what used to be public land. AB 480 clarifies and strengthens provisions in the Surplus Land Act that will promote the use of public land for affordable housing.”
- First, do no harm. The Surplus Land Act has been a bugbear for local agencies since it was comprehensively revised in 2019 by AB 1486, delaying or halting dispositions. Many local agencies and others have raised concerns that HCD’s enforcement of the act has been arbitrary and inconsistent, and that its interpretation of the law exceeded its statutory authority. Accordingly, there is significant concern about any efforts to expand HCD’s authority over local agency property dispositions. The current version of AB 480 expands HCD’s authority in only one way: by subjecting disposals pursuant to the mixed-use exemption for larger sites to penalties under the SLA, despite the broader exclusion from the SLA that exempt surplus land enjoys. However, only those agencies that avail themselves of the mixed-use exemption would be liable to face those penalties. Accordingly, the changes to HCD’s authority in AB 480 are limited in scope.
- Get it in writing. AB 480 adds a definition of dispose that specifies what types of transactions are subject to the Surplus Land Act. It then goes on to specify two types of transactions that are definitively not disposals in order to provide further certainty to local governments that HCD will not subject those transactions to the SLA. However, this is not an exhaustive list of types of transactions that are excluded from the SLA—merely an example of those that must clearly be considered outside the scope of the law. For example, other transactions that would not fall under the SLA could include property transactions that are not sales or leases. Similarly, AB 480 includes additional activities that should not be considered “participating in negotiations,” as a matter of clarification, but are not an exhaustive list of actions that do not qualify as a negotiation.
- Errors. AB 480 was amended late in session. Accordingly, there are numerous technical and typographical errors in the bill that cannot be corrected prior to passage. These include:
- Inadvertent striking of the requirement that deed-restricted housing for ownership be subject to a restriction for 45 years, and replacement with a nonsensical phrase of “land use for ownership housing.” This change was inadvertently made and should be treated as existing law, which requires restrictions of 45 years.
- An incorrect cross-reference in the new provisions that speci
- A missing reference to “nonsubstantive violations” of the law; and
- Other technical errors.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee:
- The Department of Housing and Community Development (HCD) indicates that costs associated with this bill would be minor and absorbable, but notes that, to the extent multiple bills are enacted that make changes to the SLA, HCD may need to request additional staffing resources to absorb the cumulative workload for additional monitoring and enforcement, updating guidelines, and providing technical assistance to local agencies. Staff estimates, however, that HCD may incur moderate one-time and ongoing costs to update IT infrastructure to maintain lists of entities interested in surplus land for affordable housing purposes and to include website links to each local agency notification of availability. (General Fund)
- Unknown mandated costs for local agencies to revise the process for declaring land as surplus land or exempt surplus land and to meet other requirements of the bill, potentially partially offset by minor savings by allowing for administrative declaration of certain properties as exempt surplus lands. Local costs may be reimbursable by the state, subject to a determination by the Commission on State Mandates, should a local agency file a claim. (General Fund)
SUPPORT: (Verified 9/11/23)
East Bay Housing Organizations (co-source)
Nonprofit Housing Association of Northern California (co-source)
San Diego Housing Federation (co-source)
The Public Interest Law Project (co-source)
Association of California Airports
California Airports Council
California Housing Partnership
EAH Housing
East Bay Housing Organization
Eden Housing
Housing Leadership Council of San Mateo County
MidPen Housing Corporation
Monument Impact
Public Advocates
Public Interest Law Project
Resources for Community Development
OPPOSITION: (Verified 9/11/23)
None received
ASSEMBLY FLOOR: 53-16, 5/22/23
AYES: Addis, Aguiar-Curry, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Connolly, Mike Fong, Friedman, Gabriel, Garcia, Gipson, Haney, Hart, Holden, Jackson, Jones-Sawyer, Kalra, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Ortega, Papan, Pellerin, Ramos, Reyes, Luz Rivas, Robert Rivas, Blanca Rubio, Santiago, Schiavo, Ting, Villapudua, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
NOES: Alanis, Megan Dahle, Davies, Dixon, Essayli, Flora, Vince Fong, Gallagher, Hoover, Mathis, Jim Patterson, Joe Patterson, Sanchez, Ta, Waldron, Wallis
NO VOTE RECORDED: Chen, Grayson, Irwin, Lackey, Stephanie Nguyen, Pacheco, Petrie-Norris, Quirk-Silva, Rodriguez, Soria, Valencia
Prepared by: Jonathan Peterson / GOV. & F. / (916) 651-4119
9/11/23 22:50:35
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 480 |
THIRD READING
Bill No: AB 480
Author: Ting (D), et al.
Amended: 7/3/23 in Senate
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 6-1, 6/28/23
AYES: Caballero, Blakespear, Durazo, Glazer, Skinner, Wiener
NOES: Seyarto
NO VOTE RECORDED: Dahle
SENATE HOUSING COMMITTEE: 9-2, 7/10/23
AYES: Wiener, Blakespear, Caballero, Cortese, McGuire, Padilla, Skinner, Umberg, Wahab
NOES: Ochoa Bogh, Seyarto
ASSEMBLY FLOOR: 53-16, 5/22/23 - See last page for vote
SENATE APPROPRIATIONS COMMITTEE: 5-2, 9/1/23
AYES: Portantino, Ashby, Bradford, Wahab, Wiener
NOES: Jones, Seyarto
SUBJECT: Surplus land
SOURCE: East Bay Housing Organization
Nonprofit Housing Association of Northern California
Public Interest Law Project
San Diego Housing Federation
DIGEST:
This bill makes various changes to the Surplus Land Act (SLA) regarding the disposal process, the Department of Housing and Community Development’s (HCD’s) authority, and penalties for violations.
ANALYSIS:
Existing law:
- Establishes procedures for the disposal of publicly-owned land that is surplus to the needs of local agencies, under the Surplus Land Act.
- Require local officials that want to dispose of public property to declare that the land is no longer needed for the agency’s use in a public meeting and declare the land either “surplus land” or “exempt surplus land.”
- Require local agencies to follow the procedures laid out in the SLA before surplus land can be sold, including, but not limited, to:
- Send a written notice of availability to various public agencies and nonprofit groups, referred to as “housing sponsors,” notifying them that land is available for the following purposes:
- Low- and moderate-income housing;
- Park and recreation, and open space;
- School facilities; or
- Infill opportunity zones or transit village plans.
- Send a written notice of availability to various public agencies and nonprofit groups, referred to as “housing sponsors,” notifying them that land is available for the following purposes:
- Negotiate in good faith for 90 days with housing sponsors that respond.
- Allows the local agency to dispose of the property on the private market if agreement is not reached with a housing sponsor.
- Requires that, if a property sold as surplus is not sold to a housing sponsor, but housing is developed on it later, 15% of the units must be sold or rented at an affordable cost to lower income households.
- Imposes penalties of 30% of the sale price of the land for a first violation and 50% of the sale price for any subsequent violation for selling land in violation of the SLA. Establishes an enforcement process, which provides, among other things, that a local agency cannot be liable for a penalty if it is not notified by HCD that it is in violation of the act.
- Designates certain types of land as “exempt surplus land” and provides that the entirety of the SLA does not apply to exempt surplus land.
This bill:
- Allows, for specified categories of exempt surplus land, local agencies to declare the land “exempt surplus land” without holding a public meeting if the declaration and findings are published and available for public comment, including notification to housing sponsors and other potential buyers that receive notices of availability for surplus land, at least 30 days before the declaration takes effect.
- Modifies the SLA’s definition of exempt surplus land in the following ways:
- Current law exempts land from the SLA that is subject to legal restrictions that would prevent the property from being used for housing. This bill requires those legal restrictions to be documented in writing by the relevant agencies before land can be declared exempt surplus land.
- Adds to the definition of exempt surplus land that is owned by a California public-use airport on which residential use is prohibited pursuant to FAA.
- No longer requires 100% affordable projects (at least 75% affordable to lower-income households), subject to affordability covenants, to be competitively bid to qualify as exempt surplus land, if the maximum affordable sales price or rent does not exceed 20% below median market rents or sales prices in the neighborhood.
- Removes from the definition of exempt surplus land competitively bid, mixed-use developments that include at least 300 units, with at least 25% of units affordable to lower income households, and include affordability covenants, if they are 10 acres or more.
- Adds to the definition of exempt surplus land developments 10 acres or more across one or more parcels that do not have to be adjacent, and that is competitively solicited or bid, if:
- Entities that receive notices of availability under the SLA are invited to participate;
- The development includes (1) 300 units, or (2) a number of units equal to 10 times the number acres, or 10,000 units, whichever is less;
- At least 25% of units are restricted to lower-income households with affordability covenants;
- At least 25% of units are made available for lease before, or at the same time, as every 25% of nonresidential development is made available for lease or sale and permitted for use;
- An indemnification clause is included that provides that if a violation occurs after disposition, the person or entity that acquired the property shall be liable for the penalties (subject to the SLA’s penalty provisions, in addition to any court penalties); and
- A covenant or restriction is recorded at the time of sale.
- Requires local governments to use a form prescribed by HCD for the notice of availability of surplus land. Also requires HCD to link to all notices of availability and list all entities that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.
- Increases the penalties for land sold in violation of the SLA. Imposes the same 30% and 50% penalties as current statute, but on a base of the greater of the final sale price or the fair market value of the land at time of disposition, as determined by an independent appraisal. Provides that the SLA penalties do not apply to violations that do no impact the availability and priority of land for affordable housing, such as clerical errors.
Background
Surplus Land Act. Public agencies are major landlords in some communities, owning significant pieces of real estate. When properties become surplus to their needs, public officials want to sell the land to recoup their investments. The Surplus Land Act (SLA) spells out the steps local agencies must follow when they want to dispose of land. It requires local governments to give a “first right of refusal” to other governments and nonprofit housing developers, and to negotiate in good faith with them to try to come to agreement.
Before local officials can dispose of property, they must declare that the land is no longer needed for the agency’s use in a public meeting and declare the land either “surplus land” or “exempt surplus land.” Agency use includes land that is being used, or is planned to be used pursuant to a written plan the local agency’s governing board adopts, or is disposed of to support agency work or operations.
The SLA designates certain types of land as “exempt surplus land,” and specifically provides that the entire law does not apply to exempt surplus land. All other surplus land must follow the procedures laid out in the SLA before a local agency can sell it. Before agencies can enter into negotiations to sell surplus land, they must send a written notice of availability to various public agencies and nonprofit groups, referred to as “housing sponsors,” notifying them that land is available for the following purposes:
- Low- and moderate-income housing;
- Park and recreation, and open space;
- School facilities; or
- Infill opportunity zones or transit village plans.
Housing sponsors can notify the Department of Housing and Community Development (HCD) that they are interested in acquiring surplus land to develop affordable housing. HCD maintains a list of notices of availability on its website.
If another agency or housing sponsor wants to use the surplus land for one of these purposes, it must tell the disposing agency within 60 days, and if multiple entities want to purchase the land, the housing sponsor that proposes to provide the greatest level of affordable housing gets priority. The agency and the housing sponsor then have an additional 90 days to negotiate a mutually satisfactory price and terms in good faith. If they cannot agree, the agency that owns the surplus land can sell the land on the private market. The SLA says that nothing in its provisions prevents a local agency from disposing of the land at or below fair market value, where not in conflict with other law.
AB 1486 (Ting, Chapter 664, Statutes of 2019). In 2019, the Legislature substantially revised the SLA to increase the emphasis on affordable housing and address concerns that some local agencies were bypassing the SLA’s requirements (AB 1486, Ting). Among other changes, AB 1486 broadened the definition of surplus land and required land to be designated as surplus prior to the local agency selling the land, which ensures that local agencies must comply with the SLA. AB 1486 prohibited local agencies from counting the sale of land for economic development purposes as being “for the agency’s use.” This means local agencies must open their properties up to affordable housing developers first, even if they have different purposes in mind for the property. Additionally, AB 1486 instituted a requirement that if a property sold as surplus is not sold to a housing sponsor, but housing is developed on it later, 15% of the units must be sold or rented at an affordable cost to lower income households.
AB 1486 also provided certain projects could use the previous version of the SLA before AB 1486 amended it, if the local agency, as of September 30, 2019, entered into an exclusive negotiating, or legally binding, agreement to dispose of property, provided the local agency completed the disposition by December 31, 2022. AB 1486 included a similar provision for land held in a Community Redevelopment Property Trust Fund, or designated in a long-range property management plan, for sale or retained for future development, so long as the local agency entered into the exclusive negotiating, or legally binding, agreement by December 31, 2020, and completes the disposition by December 31, 2022.
Several housing organizations want the Legislature to modify various provisions of the SLA.
Comments
- Purpose of the bill. According to the author, “California is facing a housing crisis and unused public land has the potential to promote affordable housing development throughout the state. These properties are key to building housing that is connected to transit, schools, and jobs. In fact, most affordable housing in California is built on what used to be public land. AB 480 clarifies and strengthens provisions in the Surplus Land Act that will promote the use of public land for affordable housing.”
- First, do no harm. The Surplus Land Act has been a bugbear for local agencies since it was comprehensively revised in 2019 by AB 1486, delaying or halting dispositions. Many local agencies and others have raised concerns that HCD’s enforcement of the act has been arbitrary and inconsistent, and that its interpretation of the law exceeded its statutory authority. Accordingly, there is significant concern about any efforts to expand HCD’s authority over local agency property dispositions. Previous versions of AB 480 contained provisions that would have expanded HCD’s authority in ways that were troubling to local governments, including (1) a provision that would have—notwithstanding the section of the SLA that says that the SLA does not apply to exempt surplus land—statutorily required local agencies disposing of exempt surplus land to notify HCD 30 days before disposal, and (2) changes to law that could have been interpreted to subject disposals for agency’s use and exempt surplus land to portions of the SLA. However, committee amendments struck those changes. The current version of AB 480 expands HCD’s authority in two remaining ways: by giving the department the authority to specify the form and manner of notices of availability, and by subjecting disposals pursuant to the mixed-use exemption for larger sites to penalties under the SLA, despite the broader exclusion from the SLA that exempt surplus land enjoys. However, only those agencies that avail themselves of the mixed-use exemption would be liable to face those penalties. Accordingly, the changes to HCD’s authority in AB 480 are limited in scope.
- Bigger changes needed? Prior to the enactment of AB 1486, state law did not require local agencies to always designate land as surplus prior to disposing of it, which meant they could enter into negotiations to dispose of land to further local priorities such as economic development without going through the SLA process. AB 1486 excluded economic development from being considered “agency’s use”; made changes that complicate the ability of local governments to dispose of large parcels that need infrastructure investments to support other uses; and otherwise clamped down on the ability of local governments to dispose of their property for the purposes that they consider to best serve their constituents. As a result, the Legislature has seen a parade of bills attempting to address issues with the Surplus Land Act that have come to light since the enactment of AB 1486. Several of these bills have enacted, or would create, exemptions to the Surplus Land Act to enable the development of worthy causes, including the development of affordable housing on an important transit corridor in the San Diego Area (SB 51, Durazo, 2021), the Metro North Hollywood Joint Development project (AB 175, Committee on Budget, 2021), the Tustin military base (SB 719, Min, 2021), several economic development projects in the City of Los Angeles (SB 1373, Kamlager, 2021), and the former military base at Alameda Point (AB 1319, Bonta, 2022). The frequent, and often successful, requests for exemptions for worthwhile projects only four years after the law was changed may indicate that the requirements of the SLA may need to be relaxed to reduce its unintended consequences.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee:
- The Department of Housing and Community Development (HCD) indicates that costs associated with this bill would be minor and absorbable, but notes that, to the extent multiple bills are enacted that make changes to the SLA, HCD may need to request additional staffing resources to absorb the cumulative workload for additional monitoring and enforcement, updating guidelines, and providing technical assistance to local agencies. Staff estimates, however, that HCD may incur moderate one-time and ongoing costs to update IT infrastructure to maintain lists of entities interested in surplus land for affordable housing purposes and to include website links to each local agency notification of availability. (General Fund)
- Unknown mandated costs for local agencies to revise the process for declaring land as surplus land or exempt surplus land and to meet other requirements of the bill, potentially partially offset by minor savings by allowing for administrative declaration of certain properties as exempt surplus lands. Local costs may be reimbursable by the state, subject to a determination by the Commission on State Mandates, should a local agency file a claim. (General Fund)
SUPPORT: (Verified 9/1/23)
East Bay Housing Organizations (co-source)
Nonprofit Housing Association of Northern California (co-source)
San Diego Housing Federation (co-source)
The Public Interest Law Project (co-source)
Association of California Airports
California Airports Council
California Housing Partnership
EAH Housing
East Bay Housing Organization
Eden Housing
Housing Leadership Council of San Mateo County
MidPen Housing Corporation
Monument Impact
Public Advocates
Public Interest Law Project
Resources for Community Development
OPPOSITION: (Verified 9/1/23)
Association of California Healthcare Districts
California Association for Local Economic Development
California Association of Sanitation Agencies
California Municipal Utilities Association
California Special Districts Association
California State Association of Counties
City of Bell Gardens Community Development Department
City of Bellflower
City of Beverly Hills
City of Buena Park
City of Chino
City of Corona
City of Elk Grove
City of Indian Wells
City of Inglewood
City of Montclair
City of Ontario
City of Rancho Cordova
City of San Marcos
City of Santa Rosa
City of Suisun
City of Thousand Oaks
City of Tustin
City of Vista
Greater Sacramento Economic Council
Irvine Ranch Water District
John Jansons, City Manager, City of Kerman
League of California Cities
Rural County Representatives of California
Urban Counties of California
ASSEMBLY FLOOR: 53-16, 5/22/23
AYES: Addis, Aguiar-Curry, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Connolly, Mike Fong, Friedman, Gabriel, Garcia, Gipson, Haney, Hart, Holden, Jackson, Jones-Sawyer, Kalra, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Ortega, Papan, Pellerin, Ramos, Reyes, Luz Rivas, Robert Rivas, Blanca Rubio, Santiago, Schiavo, Ting, Villapudua, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
NOES: Alanis, Megan Dahle, Davies, Dixon, Essayli, Flora, Vince Fong, Gallagher, Hoover, Mathis, Jim Patterson, Joe Patterson, Sanchez, Ta, Waldron, Wallis
NO VOTE RECORDED: Chen, Grayson, Irwin, Lackey, Stephanie Nguyen, Pacheco, Petrie-Norris, Quirk-Silva, Rodriguez, Soria, Valencia
Prepared by: Jonathan Peterson / GOV. & F. / (916) 651-4119
9/2/23 14:46:03
**** END ****
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anthony Portantino, Chair
2023 - 2024 Regular Session
AB 480 (Ting) - Surplus land
Version: July 3, 2023 | Policy Vote: GOV. & F. 6 - 1, HOUSING 9 - 2 |
Urgency: No | Mandate: Yes |
Hearing Date: August 28, 2023 | Consultant: Mark McKenzie |
Bill Summary:
AB 480 would make numerous changes to the Surplus Land Act (SLA), including increasing penalties for violations, revising the process for local agencies related to the disposal of surplus land and exempt surplus land, modifying the definition of exempt surplus land, and standardizing public notifications of the availability of surplus land, as specified.
Fiscal Impact:
- The Department of Housing and Community Development (HCD) indicates that costs associated with this bill would be minor and absorbable, but notes that, to the extent multiple bills are enacted that make changes to the SLA, HCD may need to request additional staffing resources to absorb the cumulative workload for additional monitoring and enforcement, updating guidelines, and providing technical assistance to local agencies. Staff estimates, however, that HCD may incur moderate one-time and ongoing costs to update IT infrastructure to maintain lists of entities interested in surplus land for affordable housing purposes and to include website links to each local agency notification of availability. (General Fund)
- Unknown mandated costs for local agencies to revise the process for declaring land as surplus land or exempt surplus land and to meet other requirements of the bill, potentially partially offset by minor savings by allowing for administrative declaration of certain properties as exempt surplus lands. Local costs may be reimbursable by the state, subject to a determination by the Commission on State Mandates, should a local agency file a claim. (General Fund)
Background:
Existing law, the Surplus Land Act, requires local agencies to compile an inventory of all lands under the agency’s control that are in excess of its foreseeable needs at the end of each calendar year, and to include specified information related to surplus lands in annual progress reports to HCD. Existing law prescribes a process for disposing of surplus property that is no longer necessary for a local agency’s use to certain entities for preferred purposes prior to offering the land on the open market. 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. Prior to disposing of surplus property, the local agency must send a written offer to sell or lease the property to specified entities, such as housing authorities, affordable housing developers, specified parks and recreation entities, school districts, and transportation entities, depending on the proposed use of the land. An interested agency must notify the disposing agency in writing of its intent to purchase the land within 60 days. An entity proposing to use the surplus land for development of low- and moderate-income housing must agree to designate at least 25% of the units as lower-income. If the local agency receives a notice of interest from multiple entities, it must give first priority to the proposal that would provide the deepest average level of affordability for the affordable units.
Existing law designates certain types of land as “exempt surplus land” that may be disposed of without following the general requirements of the SLA. A local agency must take a formal action in a regular public meeting to declare that land is surplus, and not necessary for the agency’s use, and to declare the land as either “surplus land” or “exempt surplus land,” as supported by written findings, before the agency can take an action to dispose of the property.
Existing law requires HCD to make educational resources and materials to inform local agencies of their obligations under the SLA, and requires the department to maintain an up-to-date listing of all notices of availability of local surplus properties on its website. Existing law requires a local agency, prior to agreeing to the terms for the disposition of surplus land, to provide specified information about its disposition process to HCD, which must provide written findings within 30 days that note any process violations that have occurred. The local agency would have 60 days to correct the violations or adopt a resolution with findings explaining why the process is not in violation. A local agency that disposes of land in violation of the SLA is liable for a penalty of 30% of the final sale price for a first violation and 50% for subsequent violations. HCD is also authorized to notify the Attorney General of local Surplus Land Act violations.
Proposed Law:
AB 480 would make numerous changes to the SLA. Among those changes, this bill would:
- Authorize local agencies to declare the land “exempt surplus land” without holding a public meeting if the declaration and findings are published and available for public comment, including notification to housing sponsors and other potential buyers that receive notices of availability for surplus land, at least 30 days before the declaration takes effect.
- Provide an alternative administrative process for land that is exempt surplus land because it is one of the following:
- Transferred for the purpose of constructing affordable housing.
- Below specified sizes.
- A former street, right of way, or easement and is being conveyed to an owner of an adjacent property.
- Property that was granted by the state in trust to a local agency.
- Land that is subject to specified procedures for disposing of educational properties.
- Land that is owned by a California public-use airport on which residential use is prohibited pursuant to Federal Aviation Administration (FAA).
- Modify the SLA’s definition of “exempt surplus land” in the following ways:
- Requiring legal restrictions that prevent a property from being used for housing to be documented in writing by the relevant agencies before land can be declared exempt surplus land.
- Adding land owned by a California public-use airport on which residential use is prohibited pursuant to FAA to the definition.
- Removing a requirement that 100% affordable projects that are subject to affordability covenants must be competitively bid in order to qualify as exempt surplus land, if the maximum affordable sales price or rent does not exceed 20% below median market rents or sales prices in the neighborhood.
- Removing competitively bid, mixed-use developments that include at least 300 units, with at least 25% of units affordable to lower income households, from the definition, if they are ten acres or more.
- Adding to the definition developments totaling 10 acres or more across one or more parcels that may not be adjacent, but that are competitively solicited or bid, if the following conditions are met:
- Entities that receive notices of availability under the SLA are invited to participate.
- The development includes (1) 300 units, or (2) a number of units equal to 10 times the number acres, or 10,000 units, whichever is less.
- At least 25% of units are restricted to lower-income households with affordability covenants.
- At least 25% of units are made available for lease before, or at the same time, as every 25% of nonresidential development is made available for lease or sale and permitted for use.
- An indemnification clause is included that provides that if a violation occurs after disposition, the person or entity that acquired the property shall be liable for the penalties (subject to the SLA’s penalty provisions, in addition to any court penalties).
- A covenant or restriction is recorded at the time of sale.
- Require local agencies to use a standardized form prescribed by HCD to issue a notice of availability of surplus land for low-income housing purposes, and require HCD to include website links to each of the notices, and list all entities that have notified the department of their interest in surplus land for developing affordable housing.
- Increase the penalties for violations of the SLA by applying the 30% or 50% penalties specified in current law on the greater of the final sale price or the fair market value of the land at the time of disposition, as determined by an independent appraisal.
- Specify that penalties do not apply to incidental violations, such as clerical errors, that do not have an impact on the availability and priority of land for affordable housing or the disposition of land in compliance with the SLA, as specified.
Related Legislation:
AB 1734 (Jones-Sawyer), which is currently pending in this Committee, would exempt land disposed of by a local agency for certain affordable housing and homelessness project purposes from the requirements of the SLA if the local agency has declared a local homelessness emergency and meets other specified requirements. AB 1734 would also specify civil penalty provisions for a local agency that violates the requirements of the bill.
AB 747 (Caballero), which is currently pending in the Assembly Appropriations Committee, would make numerous changes to the SLA, including expanding the definition of agency use and exempt surplus land, to facilitate disposal of public land for purposes besides the development of affordable housing.
-- END --
SENATE COMMITTEE ON HOUSING
Senator Scott Wiener, Chair
2023 - 2024 Regular
Bill No: AB 480 Hearing Date: 7/10/2023
Author: | Ting | ||
Version: | 7/3/2023 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Mehgie Tabar | ||
SUBJECT: Surplus land
DIGEST: This bill amends the Surplus Land Act (SLA), including changing the penalty provisions for violations, the authority for the Department of Housing and Community Development (HCD), and the disposal process.
ANALYSIS:
Existing law:
- Establishes procedures for the disposal of publicly-owned land that is surplus to the needs of local agencies, under the SLA, including to:
- Require local officials that want to dispose of public property to declare that the land is no longer needed for the agency’s use in a public meeting and declare the land either “surplus land” or “exempt surplus land.”
- Designate certain types of land as “exempt surplus land,” which do not have to meet the requirements of the SLA.
- Require local agencies to follow the procedures laid out in the SLA before surplus land can be sold, including, but not limited, to:
- Send a written notice of availability to various public agencies and nonprofit groups, referred to as “housing sponsors,” notifying them that land is available for the following purposes:
- Low- and moderate-income housing;
- Park and recreation, and open space;
- School facilities; or
- Infill opportunity zones or transit village plans.
- Negotiate in good faith for 90 days with housing sponsors that respond.
- Send a written notice of availability to various public agencies and nonprofit groups, referred to as “housing sponsors,” notifying them that land is available for the following purposes:
- Allows the local agency to dispose of the property on the private market if agreement is not reached with a housing sponsor.
- Requires that, if a property sold as surplus is not sold to a housing sponsor, but housing is developed on it later, 15% of the units must be sold or rented at an affordable cost to lower income households.
- Imposes specified penalties for violations of the SLA.
This bill:
- Revises provisions of the SLA relating to the actions a local government must take to dispose of land:
- Allows local agencies to declare the land “exempt surplus land” without holding a public meeting if the declaration and findings are published and available for public comment, including notification to housing sponsors and other potential buyers that receive notices of availability for surplus land, at least 30 days before the declaration takes effect.
- Provides an alternative administrative process for land that is exempt surplus land because it is one of the following:
- Transferred for the purpose of constructing affordable housing;
- Below specified sizes;
- A former street, right of way, or easement and is being conveyed to an owner of an adjacent property;
- Property that was granted by the state in trust to a local agency;
- Land that is subject to specified procedures for disposing of educational properties; and
- Land that is owned by a California public-use airport on which residential use is prohibited pursuant to Federal Aviation Administration (FAA).
- Modifies the SLA’s definition of exempt surplus land in the following ways:
- Current law exempts land from the SLA that is subject to legal restrictions that would prevent the property from being used for housing. This bill requires those legal restrictions to be documented in writing by the relevant agencies before land can be declared exempt surplus land.
- Adds to the definition of exempt surplus land that is owned by a California public-use airport on which residential use is prohibited pursuant to FAA.
- No longer requires 100% affordable projects (at least 75% affordable to lower-income households), subject to affordability covenants, to be competitively bid to qualify as exempt surplus land, if the maximum affordable sales price or rent does not exceed 20% below median market rents or sales prices in the neighborhood.
- Removes from the definition of exempt surplus land competitively bid, mixed-use developments that include at least 300 units, with at least 25% of units affordable to lower income households, and include affordability covenants, if they are 10 acres or more.
- Adds to the definition of exempt surplus land developments 10 acres or more across one or more parcels that do not have to be adjacent, and that is competitively solicited or bid, if:
- Entities that receive notices of availability under the SLA are invited to participate;
- The development includes (1) 300 units, or (2) a number of units equal to 10 times the number acres, or 10,000 units, whichever is less;
- At least 25% of units are restricted to lower-income households with affordability covenants;
- At least 25% of units are made available for lease before, or at the same time, as every 25% of nonresidential development is made available for lease or sale and permitted for use;
- An indemnification clause is included that provides that if a violation occurs after disposition, the person or entity that acquired the property shall be liable for the penalties (subject to the SLA’s penalty provisions, in addition to any court penalties); and
- A covenant or restriction is recorded at the time of sale.
- Requires local governments to use a form prescribed by HCD. Also requires HCD to link to all notices of availability and list all entities that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.
- Increases the penalties for a violation of the SLA. Imposes the same 30% and 50% penalties as current statute, but on a base of the greater of the final sale price or the fair market value of the land at time of disposition, as determined by an independent appraisal. Provides that the SLA penalties do not apply to violations that do no impact the availability and priority of land for affordable housing, such as clerical errors.
COMMENTS:
- Author’s statement. “California is facing a housing crisis and unused public land has the potential to promote affordable housing development throughout the state. These properties are key to building housing that is connected to transit, schools, and jobs. In fact, most affordable housing in California is built on what used to be public land. AB 480 clarifies and strengthens provisions in the Surplus Land Act that will promote the use of public land for affordable housing.”
- California’s housing crisis. California’s housing crisis is a half century in the making. Decades of underproduction underscored by exclusionary policies have left housing supply far behind need and costs soaring. During the 1990’s, California averaged only 110,000 new housing units per year. During the early 2000’s, production increased significantly, reaching a peak of 212,000 units in 2004 before plummeting to historic lows during the recession. Unfortunately, the downward trend continues; the fact is that California has under-produced housing every single year since 1989.
According to the 2022 Statewide Housing Plan, published by HCD, California must plan for more than 2.5 million homes over the next eight-year cycle, and no less than one million of those homes must meet the needs of lower-income households.[1]
- Public lands for affordable housing development. One of the limiting factors in building new affordable homes is land—the high cost and acquisition of land suitable for housing. Public agencies own a significant amount of lands located in or near urban areas, some of which exceed those agencies’ foreseeable needs, which could be used for housing.
The SLA provides affordable housing developers notification when local agencies make land available for reasons other than the agency’s use, and requires local agencies to negotiate in good faith with them for these parcels. The goal is to help valuable pubic land develop into affordable housing, but this could be at the expense of a local agencies’ economic development opportunities.
- Local surplus lands. Public agencies are major landlords in some communities, owning significant pieces of real estate. When properties become surplus to their needs, public officials want to sell the land to recoup their investments. SLA spells out the steps local agencies must follow when they want to dispose of land. It requires local governments to give a “first right of refusal” to other governments and nonprofit housing developers, and to negotiate in good faith with them to try to come to agreement.
Before local officials can dispose of property, they must declare in a public meeting that the land is no longer needed for the agency’s use and declare the land either “surplus land” or “exempt surplus land.” Agency use includes land that is being used, or is planned to be used pursuant to a written plan the local agency’s governing board adopts, or is disposed of to support agency work or operations, including, but is not limited to, utility sites, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or education purposes related to greenhouse gas emissions, and buffer sites near sensitive governmental uses.
Agency use cannot include commercial or industrial uses or activities. However, if the local agency is a district, “agency use” can include commercial or industrial uses as specified if the agency’s governing body takes action in a public meeting that the use of the site will directly further the express purpose of agency work or operations, or be expressly authorized by a statute provided that the district complies with specified affordable housing requirements.
- Exempt surplus lands. The SLA designates certain types of land as “exempt surplus land,” which does not have to meet the requirements of the SLA. All other surplus land must follow the procedures laid out in the SLA before a local agency can sell it. Exempt surplus land includes, but is not limited to, public land transfers for less than fair market value to provide affordable housing, land that a local agency is exchanging for another property necessary for the agency’s use, and land that is a former street, right-of-way, or easement, and the local agency conveys to an owner of an adjacent property.
- First right of refusal. Before agencies can enter into negotiations to sell surplus land, they must send a written notice of availability to various public agencies and nonprofit groups, referred to as “housing sponsors,” notifying them that land is available for lower income housing, parks, open space, school facilities or infill opportunity zones or transit village plans. Housing sponsors can notify HCD that they are interested in acquiring surplus land to develop affordable housing. HCD maintains a list of notices of availability on its website.
If another agency or housing sponsor wants to buy or lease the surplus land for one of these purposes, it must tell the disposing agency within 60 days, and if multiple entities want to purchase the land, the housing sponsor that proposes to provide the greatest level of affordable housing gets priority. The agency and the housing sponsor then have an additional 90 days to negotiate a mutually satisfactory price and terms in good faith. If they cannot agree, the agency that owns the surplus land can sell the land on the private market. The SLA says that nothing in its provisions prevents a local agency from disposing of the land at or below fair market value, where not in conflict with other law.
- Enhancing responsibility and transparency: AB 1486 (Ting). In 2019, the Legislature substantially revised the SLA through the passage of AB 1486 to increase the emphasis on affordable housing and address concerns that some local agencies were bypassing the SLA’s requirements. Among other changes, AB 1486 broadened the definition of surplus land and required land to be designated as surplus prior to the local agency selling the land, which ensures that local agencies must comply with the SLA. AB 1486 prohibited local agencies from counting the sale of land for economic development purposes as being “for the agency’s use.” This means that local agencies must open their properties up to affordable housing developers first, even if they have different purposes in mind for the property. Additionally, AB 1486 instituted a requirement that if a property sold as surplus is not sold to a housing sponsor, but housing is developed on it later, 15% of the units must be sold or rented at an affordable cost to lower-income households.
Finally, AB 1486 imposed penalties on local agencies that dispose of surplus land in violation of the SLA totaling 30% of the sales price of land disposed of in violation of the SLA for a first violation, and 50% of the price of the land for subsequent violations. These penalty revenues must be deposited in a local housing trust fund. AB 1486 established an enforcement process to ensure adequate noticing requirements, timely written findings to local agencies, the opportunity to respond to and correct findings, proper notification to local government and the Attorney General of violations, and that no local agency be held liable for SLA penalties if no violation was received.
AB 1486 also provided that certain projects could use the previous version of the SLA before AB 1486 amended it, if the local agency, as of September 30, 2019, entered into an exclusive negotiating, or legally binding, agreement to dispose of property, provided the local agency completed the disposition by December 31, 2022.
- HCD’s SLA guidelines. AB 1486’s amendments to the SLA gave HCD the authority to adopt guidelines to implement the penalty provisions of the SLA.
In April 2021, HCD issued guidance which, among other things, provided that disposal included both sales and leases of land, and required local agencies to notify HCD not only prior to agreeing to terms on surplus land, but also 30 days prior to disposing of exempt surplus land.
To date, HCD has tracked 525 exempt surplus land dispositions and 237 standard surplus land dispositions, resulting in 5,393 units, of which 4,065 are affordable units. Additionally, HCD has tracked 273 land dispositions; there are currently 21 projects in the pipeline generating a total of 2,994 housing units of which 1,832 are affordable. These are units that would have been unlikely to be developed in this capacity without the SLA, and the 1,832 affordable units will serve an estimated 36,000 lower-income households over the lifespan of their affordability covenants.
- SLA Penalties. Local agencies that dispose of surplus land in violation of the SLA are subject to penalties indexed to the final sales price of the land. This could result in the fines being de minimis in instances when a local agency sells the surplus land for below market value.
This bill addresses that scenario by amending the penalty provisions of the SLA to factor in the appraised value of the disposed land. Specifically, it requires an independently appraised fair market value of the surplus land at the time of the disposition, and bases the penalties on that appraised value if it is greater than the sales price.
- Competing Measures. Several authors introduced measures that seek to amend the SLA this year. The author and sponsors of this bill may wish to coordinate their efforts with other measures amending the SLA to avoid conflict and duplication.
- Opposition. Opponents of the bill include specific cities, counties, and special districts, as well as the organizations that collectively represent them. These groups argue that…“the ambiguities created by AB 480, taken together with burdensome and unnecessary new procedural requirements, as well as potentially increased penalties, will increase SLA compliance costs on local agencies.”
- Double-referral. This bill was first referred to the Senate Governance and Finance Committee, where it passed on a 6-1 vote on June 28.
Related Legislation:
SB 747 (Caballero, 2023) — amends the SLA to increase the ability for local agencies to dispose of the land for economic development opportunities. This bill is currently in the Assembly Housing and Community Development Committee.
AB 1734 (Jones-Sawyer, 2023) — exempts certain housing and homelessness projects from the SLA in local agencies that have declared a local homelessness emergency and meet other requirements. This bill is being heard at this same committee hearing.
AB 2357 (Ting, 2022) — substantially similar to AB 480 and would have made various changes to the SLA regarding the disposal process, HCD’s authority, and penalties for violations. This bill died in the Senate Governance and Finance Committee.
AB 1486 (Ting, Chapter 664, Statutes of 2019) — expanded the scope of local agencies subject to the SLA, revised the definitions of “surplus land” and “exempt surplus land,” revised the noticing requirements relative to local agencies, housing sponsors and HCD, and added penalties for local agencies that sell land in violation of the SLA.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
POSITIONS: (Communicated to the committee before noon on Wednesday,
July 5, 2023.)
SUPPORT:
East Bay Housing Organization (Co-Sponsor)
Nonprofit Housing Association of Northern California (Co-Sponsor)
Public Interest Law Project (Co-Sponsor)
San Diego Housing Federation (Co-Sponsor)
Association of California Airports
California Airports Council
California Housing Partnership
Eah Housing
Eden Housing
Housing Leadership Council of San Mateo County
Midpen Housing Corporation
Monument Impact
Public Advocates
Resources for Community Development
OPPOSITION:
Association of California Healthcare Districts (ACHD)
California Association for Local Economic Development (CALED)
California Association of Sanitation Agencies
California Municipal Utilities Association (CMUA)
California Special Districts Association
City Manager John Jansons, City of Kerman
City of Chino
City of Corona
City of Elk Grove
City of Indian Wells
City of Inglewood
City of Rancho Cordova
City of San Marcos
City of Santa Rosa
-- END --
2022 Statewide Housing Plan: A Home for Every Californian (arcgis.com) ↑
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Anna M. Caballero, Chair
2023 - 2024 Regular
Bill No: | AB 480 | Hearing Date: | 6/28/23 |
Author: | Ting | Tax Levy: | No |
Version: | 6/21/23 | Fiscal: | Yes |
Consultant: | Peterson | ||
Surplus land
Makes various changes to the Surplus Land Act regarding the disposal process, HCD’s authority, and penalties for violations.
Background
Surplus Land Act. Public agencies are major landlords in some communities, owning significant pieces of real estate. When properties become surplus to their needs, public officials want to sell the land to recoup their investments. The Surplus Land Act (SLA) spells out the steps local agencies must follow when they want to dispose of land. It requires local governments to give a “first right of refusal” to other governments and nonprofit housing developers, and to negotiate in good faith with them to try to come to agreement.
Before local officials can dispose of property, they must declare that the land is no longer needed for the agency’s use in a public meeting and declare the land either “surplus land” or “exempt surplus land.” Agency use includes land that is being used, or is planned to be used pursuant to a written plan the local agency’s governing board adopts, or is disposed of to support agency work or operations. This includes, but is not limited to:
- Utility sites;
- Watershed property;
- Land being used for conservation purposes;
- Land for demonstration, exhibition, or education purposes related to greenhouse gas emissions; and
- Buffer sites near sensitive governmental uses, including, but not limited to, waste water treatment plants.
Agency use cannot include commercial or industrial uses or activities. However, if the local agency is a district, agency use can include commercial or industrial uses if the agency’s governing body takes action in a public meeting that the use of the site will directly further the express purpose of agency work or operations, or be expressly authorized by a statute provided that the district complies with specified affordable housing requirements.
The SLA designates certain types of land as “exempt surplus land,” which does not have to meet the requirements of the SLA. All other surplus land must follow the procedures laid out in the SLA before a local agency can sell it. Exempt surplus land includes:
- Land a city or county transfers for less than fair market value to provide affordable housing subject to various requirements.
- Land less than 5,000 sq. ft. in area or the minimum legal residential building lot size for the jurisdiction, whichever is less, that is not contiguous to land a state or local agency uses for open-space or affordable housing, and sold to an owner of contiguous land.
- Land that a local agency is exchanging for another property necessary for the agency’s use, or transferring to another public entity or a federally recognized California Indian tribe.
- Land that is a former street, right-of-way, or easement, and the local agency conveys to an owner of an adjacent property.
- Land that is put out to open, competitive bid by a local agency, provided that it invites other governments and nonprofit housing developers to participate in the competitive bid process, for specified affordable housing projects.
- Land subject to valid legal restrictions that would make housing a prohibited use, unless the restrictions can be mitigated or avoided. This does not include nonresidential land use designations.
- Land the state granted in trust to a local agency, or that a local agency acquired for trust purposes, where statutory provisions apply.
- Land school entities own that is subject to specified statutory exemptions;
- Certain former military bases the federal government conveyed to a local agency.
- Real property a district uses for an agency’s use.
- Specified land the state transferred to a local agency before January 30, 2019, with at least 100 units per acre that meets certain affordability requirements.
Before agencies can enter into negotiations to sell surplus land, they must send a written notice of availability to various public agencies and nonprofit groups, referred to as “housing sponsors,” notifying them that land is available for the following purposes:
- Low- and moderate-income housing;
- Park and recreation, and open space;
- School facilities; or
- Infill opportunity zones or transit village plans.
Housing sponsors can notify the Department of Housing and Community Development (HCD) that they are interested in acquiring surplus land to develop affordable housing. HCD maintains a list of notices of availability on its website.
If another agency or housing sponsor wants to buy or lease the surplus land for one of these purposes, it must tell the disposing agency within 60 days, and if multiple entities want to purchase the land, the housing sponsor that proposes to provide the greatest level of affordable housing gets priority. The agency and the housing sponsor then have an additional 90 days to negotiate a mutually satisfactory price and terms in good faith. If they cannot agree, the agency that owns the surplus land can sell the land on the private market. The SLA says that nothing in its provisions prevents a local agency from disposing of the land at or below fair market value, where not in conflict with other law.
AB 1486 (Ting, 2019). In 2019, the Legislature substantially revised the SLA to increase the emphasis on affordable housing and address concerns that some local agencies were bypassing the SLA’s requirements (AB 1486, Ting). Among other changes, AB 1486 broadened the definition of surplus land and required land to be designated as surplus prior to the local agency selling the land, which ensures that local agencies must comply with the SLA. AB 1486 prohibited local agencies from counting the sale of land for economic development purposes as being “for the agency’s use.” This means local agencies must open their properties up to affordable housing developers first, even if they have different purposes in mind for the property. Additionally, AB 1486 instituted a requirement that if a property sold as surplus is not sold to a housing sponsor, but housing is developed on it later, 15% of the units must be sold or rented at an affordable cost to lower income households.
Finally, AB 1486 imposed penalties on local agencies that dispose of surplus land in violation of the SLA totaling 30%of the sales price of land disposed of in violation of the SLA for a first violation, and 50% of the price of the land for subsequent violations. These penalty revenues must be deposited in a local housing trust fund. AB 1486 established an enforcement process, as follows:
- Prior to agreeing to terms for the disposition of surplus land, a local agency must provide HCD a description of the notices of availability sent, and negotiations conducted with any responding entities, in regard to the disposal of the parcel of surplus land and a copy of any restrictions to be recorded against the property, in a form prescribed by HCD.
- HCD must submit written findings to the local agency within 30 days of receipt of the description of the disposal if the proposed disposal of the land will violate SLA.
- A local agency has at least 60 days to respond to the findings before HCD may take further action. The local agency must consider findings made by HCD and then either correct any issues found by HCD or respond in writing why the disposal complied with the SLA.
- If the local agency does not respond or does not address the issues, HCD must notify the local government and may notify the Attorney General that the disposal violates the SLA.
- A local agency cannot be held liable for the penalties under the SLA if HCD does not notify the agency that the agency is in violation within 30 days of receiving the description.
AB 1486 also provided certain projects could use the previous version of the SLA before AB 1486 amended it, if the local agency, as of September 30, 2019, entered into an exclusive negotiating, or legally binding, agreement to dispose of property, provided the local agency completed the disposition by December 31, 2022. AB 1486 included a similar provision for land held in a Community Redevelopment Property Trust Fund, or designated in a long-range property management plan, for sale or retained for future development, so long as the local agency entered into the exclusive negotiating, or legally binding, agreement by December 31, 2020, and completes the disposition by December 31, 2022.
Subsequent measures have added additional projects that could use the previous version of the SLA before AB 1486 amended it, including:
- SB 51 (Durazo, 2021) provides that if a local agency issued a competitive request for proposals as of September 30, 2019, that included at least 100 residential units and at least 25% of the total units are restricted to lower income housingthen the property is not subject to changes made to the SLA by AB 1486 (Ting).
- AB 175 (Committee on Budget, 2021) allowed a similar exemption for land entered into an exclusive negotiating agreement to dispose of property related to the Metro North Hollywood Joint Development Project, provided it completes disposition no later than December 31, 2024.
- SB 1373 (Kamlager, 2021) extends by two years (until December 31, 2024) the deadlines in the SLA to complete disposition of a property subject to an exclusive negotiating agreement for a charter city with a population of over two million people.
Several housing organizations want the Legislature to modify various provisions of the SLA.
Proposed Law
Assembly Bill 480 makes various changes to the SLA regarding the disposal process, HCD’s authority, and penalties for violations.
Disposal process. AB 480 revises provisions of the SLA relating to the actions a local government must take to dispose of land.
AB 480 modifies the definition of “surplus land” to mean land owned in fee simple that is not necessary for the agency’s use, unless otherwise specified, and as declared by the local agency. The measure requires a local agency to take formal action at a regular public meeting to declare the land is either “surplus land” or “exempt surplus land”, before taking any action to dispose of land that is not for agency use. The declaration must be supported by written findings before the local agency may dispose of the land in a manner that is consistent with the local agency’s policies.
AB 480 also provides an alternative administrative process for land that is exempt surplus land because it is one of the following:
- Transferred for the purpose of constructing affordable housing;
- Below specified sizes;
- A former street, right of way, or easement and is being conveyed to an owner of an adjacent property;
- Property that was granted by the state in trust to a local agency;
- Land that is subject to specified procedures for disposing of educational properties, including the Teacher Housing Act of 2016; and
- Land that is owned by a California public-use airport on which residential use is prohibited pursuant to Federal Aviation Administration (FAA) Order 5190.6B.
For these categories of exempt surplus land, AB 480 allows local agencies to declare the land exempt surplus land without holding a public meeting if the declaration and findings are published and available for public comment. The agency must notify housing sponsors and other potential buyers that receive notices of availability for surplus land, at least 30 days before the declaration takes effect.
Exempt surplus land changes. AB 480 modifies the SLA’s definition of exempt surplus land in the following ways:
- Current law exempts land from the SLA that is subject to legal restrictions that would prevent the property from being used for housing. AB 480 requires those legal restrictions to be documented in writing by the relevant agencies before land can be declared exempt surplus land.
- Adds to the definition of exempt surplus land that is owned by a California public-use airport on which residential use is prohibited pursuant to Federal Aviation Administration (FAA) Order 5190.6B.
- No longer requires 100% affordable projects (at least 75% affordable to lower-income households), subject to affordability covenants, to be competitively bid to qualify as exempt surplus land, if the maximum affordable sales price or rent does not exceed 20% below median market rents or sales prices in the neighborhood.
- Removes from the definition of exempt surplus land competitively bid, mixed-use developments that include at least 300 units, with at least 25% of units affordable to lower income households, and include affordability covenants, if they are 10 acres or more.
- Adds to the definition of exempt surplus land developments 10 acres or more across one or more parcels that do not have to be adjacent, and that is competitively solicited or bid, if:
- Entities that receive notices of availability under the SLA are invited to participate;
- The development includes (1) 300 units, or (2) a number of units equal to 10 times the number acres, or 10,000 units, whichever is less;
- At least 25% of units are restricted to lower-income households with affordability covenants;
- At least 25% of units are made available for lease before, or at the same time, as every 25% of nonresidential development is made available for lease or sale and permitted for use.
- Violations of these terms are subject to the SLA’s penalty provisions, in addition to any court penalties.
Additional HCD authority. Current law provides the SLA does not apply to the disposal of exempt surplus land by any state or local agency. AB 480 requires a local agency to provide HCD with a written notification 30 days before disposing of exempt surplus land. The notification must include its declaration and findings and be issued in a form and manner prescribed by HCD.
Current law requires a local agency to issue a notice of availability of surplus land prior to entering into negotiations with a prospective buyer. AB 480 requires local governments to use a form prescribed by HCD. It also requires HCD to link to all notices of availability and list all entities that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.
Penalties and other changes. AB 480 increases the penalties for a violation of the SLA. Specifically, current law imposes a penalty of 30% of the final sale price of the land (50% for any subsequent violation). AB 480 imposes the same 30% and 50% penalties, but on a base of the greater of the final sale price or the fair market value of the land at time of disposition, as determined by an independent appraisal.
The bill makes other technical and conforming changes and includes findings and declarations to support its purposes.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill. According to the author, “California is facing a housing crisis and unused public land has the potential to promote affordable housing development throughout the state. These properties are key to building housing that is connected to transit, schools, and jobs. In fact, most affordable housing in California is built on what used to be public land. AB 480 clarifies and strengthens provisions in the Surplus Land Act that will promote the use of public land for affordable housing.”
2. First, do no harm. The SLA is a complicated statute and has been the subject of differing interpretations regarding its requirements, most notably between local governments and HCD. For example, the SLA does not define what “disposal” of land constitutes. While HCD maintains leases of land are covered by the definition of “dispose” in the SLA, local governments disagree. AB 480 makes numerous changes to the statute. Supporters argue these are clarifying and technical fixes to the law, but past experience with the SLA shows that its provisions may be interpreted in unforeseen ways by HCD that impose bureaucratic requirements on local agencies and limit their ability to dispose of properties. Accordingly, even presumably minor changes to the SLA may alter the operation of the Act. However, numerous changes in AB 480 may go beyond minor changes into significant policy shifts. Specifically:
- First, it is unclear, under current law, whether HCD has the authority to require local agencies to take any actions prior to the disposal of exempt surplus land. Specifically, current law allows local agencies to dispose of exempt surplus land—specific categories of land that cannot be used as, have no value as, or are already planned for use as sites for affordable housing—without regard to the SLA. However, HCD’s guidelines currently require notice to HCD 30 days before disposal of exempt surplus land. AB 480 explicitly gives HCD this authority, notwithstanding the SLA’s authorization to dispose of exempt surplus land without regard to its provisions. Such a requirement likely would further slow the disposal of exempt surplus land.
- Second, the changes in AB 480 could be interpreted to preclude disposal of land for agency’s use. This would, among other things, deprive special districts of revenue raising purposes to support their operations that are allowed under existing law. Current law specifically preserves this option for special districts because they have fewer options to support their operations than cities or counties.
- Third, AB 480 requires written verification by relevant agencies to prove there is a legal restriction to use that exemption from the SLA, which can be difficult to secure, particularly from the federal government. This provision might slow or altogether preclude disposal of certain types of exempt surplus land.
- Fourth, AB 480 requires all local agencies to provide notices of availability of surplus land in a form and manner specified by HCD. Sponsors of the measure state this requirement is needed to track surplus land disposals. However, there are thousands of local governments in California subject to the SLA, with varying purposes, responsibilities, and property holdings. Imposing a standard form that does not account for these differences may impair the ability of local governments to effectively dispose of their surplus properties.
- Fifth, AB 480 allows local agencies to consider certain large developments exempt surplus land if they competitively bid the project and meet certain affordable housing conditions. For example, the development has to ensure that at least 25% of units are made available for lease before, or at the same time, as every 25% of nonresidential development is made available for lease or sale and permitted for use. Many of these requirements are outside the control of the local agency when they dispose of the surplus land. However, AB 480 says the local agency still is subject to penalties if they violate these terms.
Given HCD has taken a broad view of its authority under the SLA in the past, the Committee may wish to consider whether changes that increase the scope of its authority should be made. The Committee may wish to consider amending AB 480 to alter the above provisions from the bill, or require HCD to go through the Administrative Procedures Act to issue updated guidelines to ensure regulated parties have adequate opportunity for involvement in drafting of regulations.
3. To lease or not to lease. AB 480 closes a loophole whereby a local government can adjust the sale price of the land to reduce penalties it pays for violations of the SLA. However, this provision may sweep leases into the penalty provisions of the Act because it imposes penalties based on the appraised value at the time of disposition, rather than sale as provided in exiting law. Many concerns revolve around whether leases are subject to the SLA after AB 1486 was adopted. Specifically, committee amendments to AB 1486 in the Assembly Local Government Committee removed leases from that bill’s changes to the SLA. However, AB 1486’s changes were ambiguous. Accordingly, there is some dispute as to whether leases are subject to the SLA: local governments argue that leases are not, while HCD published guidance on the SLA stating they are. The Committee may wish to consider amending AB 480 to clearly define “disposal” under the SLA to exclude leases, or establish which leases are considered disposals, how penalties should be calculated, and whether minor violations, like clerical errors, should be exempt from the penalty provisions.
4. Administrative process. AB 480 allows local agencies to use an administrative process, which removes the requirement for a public meeting, for disposing of a limited subset of the categories of exempt surplus land. This provision is unlikely to be used by most local governments for two reasons: first, the bill requires unspecified public comment procedures as part of its administrative process, except for the requirement that the local agency notify all parties eligible to purchase surplus land, including housing sponsors of the disposal of exempt surplus land. The incremental value of this requirement is unclear, as is the threshold to meet the requirement for “sufficient” public comment. Second, AB 480 excludes several categories of exempt surplus land from the process. Sponsors of this measure state the categories AB 480 excludes from the administrative process involve some discretion on that part of local governments where an administrative process is not suitable. However, AB 480 excludes from the administrative process some additional categories of exempt surplus land for which local agencies make clear-cut determinations, such as whether a transaction constitutes an exchange of property with another local agency or a Native American tribe, or if a property is being used by a special district for its use. To enhance the utility of the administrative procedure authorized by the bill, the Committee may wish to consider whether the administrative procedure should be used consistently for all categories of exempt surplus land, and whether posting its determinations on its website – in lieu of providing public comment opportunities – is sufficient public comment.
5. Bigger changes needed? Prior to the enactment of AB 1486, state law did not require local agencies to always designate land as surplus prior to disposing of it, which meant they could enter into negotiations to dispose of land to further local priorities such as economic development without going through the SLA process. AB 1486 excluded economic development from being considered “agency’s use”; made changes that complicate the ability of local governments to dispose of large parcels that need infrastructure investments to support other uses; and otherwise clamped down on the ability of local governments to dispose of their property for the purposes that they consider to best serve their constituents. As a result, the Legislature has seen a parade of bills attempting to address issues with the Surplus Land Act that have come to light since the enactment of AB 1486. Several of these bills have enacted, or would create, exemptions to the Surplus Land Act to enable the development of worthy causes, including the development of affordable housing on an important transit corridor in the San Diego Area (SB 51, Durazo, 2021), the Metro North Hollywood Joint Development project (AB 175, Committee on Budget, 2021), the Tustin military base (SB 719, Min, 2021), several economic development projects in the City of Los Angeles (SB 1373, Kamlager, 2021), and the former military base at Alameda Point (AB 1319, Bonta, 2022). The Committee may wish to consider whether the previous changes to the SLA should be revisited more broadly such exemptions become less necessary, instead of tightening the SLA as AB 480 proposing to do.
6. Something’s gotta give. SB 747 (Caballero, 2023) makes various changes to the SLA intended address some of the issues raised above. Some of SB 747’s provisions conflict with AB 480. For example:
- SB 747 adds new categories, or modifies existing categories, of land to the list of “exempt surplus land,” which AB 480 does not include.
- SB 747 expands the definition of “agency use” to allow more properties to not be subject to the SLA. AB 480 does not expand the definition of “agency use.”
- SB 747 defines “dispose” to mean the sale of surplus land, or the lease of surplus land for longer than 15 years, including renewal options included in the initial lease. AB 480 does not define dispose.
- SB 747 has a different administrative process for local agencies to declare land to be surplus. SB 747 applies this process to all types of land, but only if the land is located in a city or county that has a substantially compliant housing element or a pro-housing designation. AB 480 allows all local agencies to administratively declare surplus land, but only for a subset of their lands.
- SB 747 requires HCD to solicit public comments on its proposed guidelines prior to adopting, amending, or repealing them, and for it to consider and respond to public comments in writing. AB 480 does not require HCD to solicit public comments before amending their guidelines.
- SB 747 requires HCD to provide the local agency an appeals process to overturn an adverse action taken by HCD, which must be overseen by an independent trier of fact. AB 480 does not include a similar process.
- SB 747 does not allow HCD to assess penalties on the final sale price or fair market value. AB 480 allows HCD to assess penalties on the final sale price or fair market value, whichever is greater.
To ensure these conflicts are addressed, the Committee may wish to consider amending the bill to make AB 480’s enactment contingent on the enactment of SB 747.
7. Parade isn’t over. The Legislature is considering numerous other proposals that provide specific provisions or exemptions regarding surplus land:
- SB 34 (Umberg, 2023) creates a process for HCD to determine whether land disposals in Orange County violate the SLA. The bill is currently pending in the Assembly Local Government Committee.
- SB 229 (Umberg, 2023) requires a local agency to hold an open and public meeting if HCD notifies the local agency that its disposal of a parcel violates the SLA. The bill is currently pending in the Assembly Local Government Committee.
- SB 693 (Seyarto, 2023) exempts certain parcels in the City of Murrieta from the SLA. The bill is currently pending in the Senate Governance and Finance Committee.
- AB 457 (Joe Patterson, 2023) creates an exemption from the SLA for parcels abutting a state highway right-of-way that a local agency identified in its circulation element or capital improvement plan for future roadway development. The bill is also scheduled for this Committee’s June 28th meeting.
- AB 837 (Alvarez, 2023) creates an exemption from the SLA for land acquired by a local agency for the development of a university and innovation district. The bill is also scheduled for this Committee’s June 28th meeting.
- AB 983 (Cervantes, 2023) expands the definition of exempt surplus land to include land designated in an adopted downtown revitalization plan not to exceed 1.1 square miles and includes residential, commercial, office, civic, and hospitality uses. The bill is currently pending in the Assembly Local Government Committee.
- AB 1469 (Kalra, 2023) Allows Santa Clara Valley Water District to take actions to assist unsheltered people living along streams, riparian corridors, or otherwise within the district’s jurisdiction, to provide solutions or improve outcomes for the unsheltered individuals, in consultation with a city or the County of Santa Clara. AB 1469 includes a provision that use of land for these purposes meets the definition of “agency use,” which is exempt from the SLA. The bill is also scheduled for this Committee’s June 28th meeting.
- AB 1734 (Jones-Sawyer, 2023) Exempts certain housing and homelessness projects from the SLA in local agencies that have declared a local homelessness emergency and meet other requirements. The bill is also scheduled for this Committee’s June 28th meeting.
8. Previous legislation. AB 480 is substantially similar to AB 2357 (Ting, 2022). AB 2357 died in the Senate Governance and Finance Committee.
9. Mandate. The California Constitution requires the state to reimburse local agencies for the costs of new or expanded state mandated local programs. Because AB 480 imposes additional duties on local agencies related to notifying HCD ahead of disposing of exempt surplus land, Legislative Counsel says that it imposes a new state mandate. The measure states that if the Commission on State Mandates determines that the bill imposes a reimbursable mandate, then reimbursement must be made pursuant to existing statutory provisions.
10. Coming and going. The Senate Rules Committee has ordered a double referral of AB 480: first to the Senate Governance and Finance Committee to hear issues related to disposal of land owned by local governments, and second to the Senate Housing Committee.
Assembly Actions
Assembly Local Government Committee: 6-2
Assembly Housing and Community Development Committee: 6-1
Assembly Appropriations Committee: 12-4
Assembly Floor: 53-16
Support and Opposition
(6/23/23)
Support: East Bay Housing Organizations (Co-Sponsor)
Nonprofit Housing Association of Northern California (Co-Sponsor)
San Diego Housing Federation (Co-Sponsor)
The Public Interest Law Project (Co-Sponsor)
Association of California Airports
California Airports Council
California Housing Partnership
Eah Housing
East Bay Housing Organization - Ebho
Eden Housing
Housing Leadership Council of San Mateo County
Midpen Housing Corporation
Monument Impact
Public Advocates
Public Interest Law Project
Resources for Community Development
Opposition:
John Jansons, City Manager, City of Kerman
Association of California Healthcare Districts (ACHD)
California Association of Sanitation Agencies
California Municipal Utilities Association (CMUA)
California Special Districts Association
California State Association of Counties
City of Bell Gardens Community Development Department
City of Bellflower
City of Buena Park
City of Chino
City of Corona
City of Elk Grove
City of Indian Wells
City of Inglewood
City of Montclair
City of Ontario
City of Rancho Cordova
City of San Marcos
City of Santa Rosa
City of Suisun
City of Thousand Oaks
City of Tustin
City of Vista
Greater Sacramento Economic Council
Irvine Ranch Water District
League of California Cities
Rural County Representatives of California
Urban Counties of California (UCC)
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 480
Author:(Ting)
As Amended Ver:April 5, 2023
Majority vote
SUMMARY
Changes the penalty provisions of the Surplus Land Act (SLA) and makes procedural changes to noticing provisions that apply to "surplus land" and "exempt surplus land" disposed of by local agencies subject to the SLA.
Major Provisions
- Adds to the definition of "exempt surplus land" land that is owned by a California public-use airport on which residential use is prohibited pursuant to Federal Aviation Administration (FAA) Order 5190.6B, as specified.
- Authorizes local agencies to declare specified types of "exempt surplus land" administratively with 30 days public notice rather than through a formal public hearing of the agency's governing body, as specified
- Amends the penalty provisions of the SLA to require that local agencies that dispose of surplus land in violation of the SLA are liable for a penalty that is a specified percentage of the independently appraised fair market value of the surplus land at the time of the disposition, if the appraised value is greater than the sales price.
COMMENTS
This bill makes a number of changes to the SLA. This bill allows penalties for violations of the SLA to be linked to the appraised value of the land at the time it is disposed of, if the appraised value is greater than the sales price of the land. The bill also requires the Department of Housing and Community Development (HCD) to post additional information regarding surplus land dispositions on its internet website, creates a new category of exempt surplus land for property owned by public airports, authorizes local agencies to declare specified types of "exempt surplus land" administratively if they notify HCD and other specified entities 30 days prior to disposal, and makes additional minor and clarifying changes.
Prior to disposing of surplus land, the SLA requires local agencies to declare that the land is surplus land or exempt surplus land at a public meeting. This action increases the transparency related to the disposal of surplus land, making stakeholders aware of the potential to acquire surplus land, or to protest a designation of surplus land as exempt. However, certain categories of exempt surplus land are patently objective and not subject to interpretation. Requiring local agencies to declare these parcels are exempt at a public meeting adds an unnecessary layer of procedure to the disposition of objectively exempt surplus land. Disposition of these categories of exempt surplus land should still require public notice; however, the appropriate level of disclosure can be achieved through a notification that is made public prior to the disposal.
Local agencies that dispose of surplus land in violation of the SLA are subject to penalties indexed to the final sales price of the land. Supporters of this bill are concerned that a local agency could avoid or reduce the penalties associated with violations of the SLA by selling surplus land for below market value, potentially in exchange for other concessions from the developer receiving the land (e.g. keeping a sports team located within the local agency's jurisdiction in exchange for a discounted sales price). As the penalties are indexed to the sales price of land sold in violation of the SLA, if a local agency sells public land for substantially less than market value the associated penalty will be correspondingly reduced. The supporters of this bill propose to remedy this by linking the penalties to the sales price or the appraised value of the land at the time the land was disposed, whichever is greater.
The SLA guidelines adopted by HCD include local agency leases of surplus land as a type of disposition of land subject to the SLA. In practice, according to HCD, this means that if a local agency leases surplus land without following the procedures outlined in the SLA, the local agency violates the SLA. However, the current penalty provisions of the SLA are explicitly linked to the final sales price at the time the land is sold. When a local agency leases land to a private entity, there is no sales price or sales date to penalize. Therefore, it is unclear what penalty, if any, could be applied to land that is leased in a manner that HCD finds in violation of the SLA.
According to the Author
"California is facing a housing crisis and unused public land has the potential to promote affordable housing development throughout the state. These properties are key to building housing that is connected to transit, schools, and jobs. In fact, most affordable housing in California is built on what used to be public land. AB 480 clarifies and strengthens provisions in the Surplus Land Act that will promote the use of public land for affordable housing."
Arguments in Support
The Public Interest Law Project writes in support, "AB 480 will strengthen the SLA by closing enforcement loopholes in the SLA, creating an administrative declaration process for specific types of exempt surplus lands, standardizing public notices of availability, and additional technical changes for consistency and clarity.
Arguments in Opposition
The City of Salina writes in opposition, "Current [SLA], including [HCD] recent guidelines, have delayed City real estate transactions, and have increased the staff time required to fulfill HCD requirements. A specific example is the delay in the release of a Request for Proposals to develop affordable housing on County property through a city/county partnership because it was unclear as to the application of SLA and HCD guidelines to the long-term ground lease.
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
- Minor and absorbable costs to HCD. However, HCD notes there are multiple bills moving through the legislature impacting the SLA. While many of these bills in isolation would have a minor and absorbable fiscal impact, were multiple of these bills to be chaptered, the Department anticipates an increased workload comprising additional monitoring and enforcement efforts, training for existing staff, updating guidelines and technical assistance materials, and providing technical assistance to local agencies directly impacted by these bills. Additional staffing would be required to absorb this cumulative workload.
- Costs of an unknown amount, likely minor, to local agencies to adapt the new process for declaring land as surplus or exempt and to meet other requirements of the bill, offset to the extent the streamlined processes result in administrative savings. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State mandates, should a local agency submit a claim
VOTES
ASM LOCAL GOVERNMENT: 6-2-0
YES: Aguiar-Curry, Boerner Horvath, Pacheco, Ramos, Robert Rivas, Wilson
NO: Dixon, Waldron
ASM HOUSING AND COMMUNITY DEVELOPMENT: 6-1-1
YES: Wicks, Wendy Carrillo, Gabriel, Kalra, Quirk-Silva, Ward
NO: Sanchez
ABS, ABST OR NV: Joe Patterson
ASM APPROPRIATIONS: 12-4-0
YES: Holden, Bryan, Calderon, Wendy Carrillo, Mike Fong, Hart, Lowenthal, Papan, Pellerin, Robert Rivas, Weber, Ortega
NO: Megan Dahle, Dixon, Mathis, Sanchez
UPDATED
VERSION: April 5, 2023
CONSULTANT: Hank Brady / L. GOV. / (916) 319-3958 FN: 0000404
Date of Hearing: May 17, 2023
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Chris Holden, Chair
ABPCA Bill Id:AB 480
Author:(Ting) – As Amended Ver:April 5, 2023
Policy Committee: | Local Government | Vote: | 6 - 2 |
Housing and Community Development | 6 - 1 | ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: Yes
SUMMARY:
This bill makes various changes to the Surplus Land Act (SLA), including modifying the penalty provisions to factor in the appraised value of the land, exempting specified public-use airports from the SLA, and making procedural changes to the noticing provisions regarding disposal of surplus land.
Specifically, this bill:
- Specifies a local agency that disposes of surplus land in violation of the SLA is liable for a penalty of a specified percentage of the independently appraised fair market value of the surplus land at the time of the disposition, if the appraised value is greater than the sales price.
- Adds to the definition of “exempt surplus land” land that is owned by a California public-use airport on which residential use is prohibited pursuant to Federal Aviation Administration (FAA) Order 5190.6B, as specified.
- Requires a local agency to notify the Department of Housing and Community Development (HCD) 30 days prior to disposing of exempt surplus land.
- Authorizes a local agency to administratively declare specified types of land as “exempt surplus land” with 30 days public notice rather than through a formal public hearing of the agency’s governing body.
- Specifies that “exempt surplus land” that is exempt due to a valid legal restriction on the land that is not imposed by the local agency is only exempt if the legal restrictions are documented and verified in writing by the relevant agencies that impose the restrictions.
- Requires HCD to provide a link on its internet website to all notices of availability of surplus land it receives from local agencies and to post on its internet website a list of all entities, including housing sponsors, who have notified HCD of their interest in acquiring surplus land for the purpose of developing affordable housing.
FISCAL EFFECT:
- Minor and absorbable costs to HCD. However, HCD notes there are multiple bills moving through the legislature impacting the SLA. While many of these bills in isolation would have a minor and absorbable fiscal impact, were multiple of these bills to be chaptered, the Department anticipates an increased workload comprising additional monitoring and enforcement efforts, training for existing staff, updating guidelines and technical assistance materials, and providing technical assistance to local agencies directly impacted by these bills. Additional staffing would be required to absorb this cumulative workload.
- Costs of an unknown amount, likely minor, to local agencies to adapt the new process for declaring land as surplus or exempt and to meet other requirements of the bill, offset to the extent the streamlined processes result in administrative savings. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State mandates, should a local agency submit a claim.
COMMENTS:
- Purpose. This bill seeks to facilitate the production of affordable housing by clarifying and strengthening the SLA. According to the author:
California is facing a housing crisis and unused public land has the potential to promote affordable housing development throughout the state. These properties are key to building housing that is connected to transit, schools, and jobs. In fact, most affordable housing in California is built on what used to be public land. [This bill] clarifies and strengthens provisions in the Surplus Land Act that will promote the use of public land for affordable housing.
- Background. Before local officials can dispose of property, they must first declare, in a public meeting, the land is no longer necessary for the agency’s use, and must identify the land as either “surplus land” or “exempt surplus land.” The SLA designates 11 categories of land, and several subcategories of land, as “exempt surplus land,” which are not subject to the requirements of the SLA. For all other surplus land, the SLA requires the local agency to prioritize affordable housing, as well as parks and open space, when disposing of the land. Before local agencies may dispose of surplus land, they are required to give notice to local public entities and organizations involved in affordable housing development.
Within the list of exemptions from the SLA, certain categories are objective and not subject to interpretation – such as a former right-of-way that is being transferred to the adjacent property owner. In order to streamline the declaration process for exempt surplus land, this bill authorizes local agencies to declare certain types of land as exempt surplus land administratively, if they notify HCD and other specified entities 30 days prior to disposal.
Under existing law, local agencies that dispose of surplus land in violation of the SLA are subject to penalties indexed to the final sales price of the land. Supporters of this bill are concerned a local agency could avoid or reduce the penalties associated with violations of the SLA by selling surplus land for below market value, potentially in exchange for other concessions from the purchaser. This bill addresses this concern by linking penalties to the appraised value of the land at the time of the sale.
Existing law requires HCD to maintain on its website an up-to-date listing of all the notices of availability of surplus land throughout the state. This bill additionally requires HCD to provide a link to these notices, and to maintain on its website a list of all entities, including housing sponsors, that have notified HCD of their interest in acquiring surplus land for the purpose of developing affordable housing.
- Arguments in Support. Most of the supporters of the bill are affordable housing advocates who argue the bill will further the SLA’s stated purpose of facilitating affordable housing. According to the Public Interest Law Project and other co-sponsors of the bill:
[This bill] will strengthen the Surplus Lands Act by closing enforcement loopholes in the SLA, creating an administrative declaration process for specific types of exempt surplus lands, standardizing public notices of availability, and additional technical changes for consistency and clarity. The bill works in partnership with local governments, by providing new streamlining opportunities for compliance with the SLA, thus ensuring they are not overly burdened with unnecessary bureaucratic processes. It also ensures that the spirit of the SLA is protected with improved enforcement protocols and standardizing the process of notifying affordable housing builders of land availability and making those notices available to the public.
- Arguments in Opposition. Opponents of the bill include specific cities, counties, and special districts, as well as the organizations that collectively represent them. These groups argue that local agencies should not be required to notify HCD within 30 days of disposal of exempt surplus land because the SLA provides it does not apply to the disposal of exempt surplus land.
- Related Legislation. There are five additional Assembly bills introduced this session that create various exemptions under the SLA. These include AB 457 (Joe Patterson), pending in the Senate; AB 983 (Cervantes), pending in the Assembly Local Government Committee; and AB 837 (Alvarez), AB 1607 (Wendy Carrillo) and AB 1734 (Jones-Sawyer), pending in this committee.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: April 26, 2023
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Buffy Wicks, Chair
ABPCA Bill Id:AB 480 (
Author:Ting) – As Amended Ver:April 5, 2023
SUBJECT: Surplus land
SUMMARY: Amends the Surplus Land Act (SLA), including changing the penalty provisions to factor in the appraised value of the land, exempting specified public-use airports from the SLA, and making procedural changes to the noticing provisions regarding disposal of surplus land. Specifically, this bill:
- Amends the penalty provisions of the SLA to require that local agencies that dispose of surplus land in violation of the SLA are liable for a penalty that is a specified percentage of the independently appraised fair market value of the surplus land at the time of the disposition, if the appraised value is greater than the sales price.
- Adds to the definition of “exempt surplus land” land that is owned by a California public-use airport on which residential use is prohibited pursuant to Federal Aviation Administration (FAA) Order 5190.6B, as specified.
- Requires local agencies to notify the Department of Housing and Community Development (HCD) 30 days prior to disposing of exempt surplus land.
- Specifies that a local agency is not required to declare at a public meeting that specified types of surplus land are “exempt surplus land” if the local agency identifies the land in a notice that is published and available for public comment at least 30 days before the exemption takes place.
- Specifies that “exempt surplus land” that is exempt due to a valid legal restriction on the land that is not imposed by the local agency is only exempt if the legal restrictions are documented and verified in writing by the relevant agencies that impose the restrictions.
- Requires HCD to do all of the following:
- Provide a link on its website to all notices of availability of surplus land that it receives from local agencies;
- Provide a list of all entities, including housing sponsors, that have notified HCD of their interest in acquiring surplus land for the purpose of developing affordable housing;
- Prescribe the form of the written notice of availability for land developable for low- and moderate-income housing that local agencies must send to specified parties when disposing of land; and
- Prescribe the form of the written notice of findings that a local agency must provide to HCD 30 days prior to disposing of exempt surplus land.
- Makes a number of conforming and technical changes.
EXISTING LAW: Establishes the SLA that, among other provisions, provides the following:
- Defines “surplus land” as land owned by any local agency that is determined to be no longer necessary for the agency’s use.
- Requires each local agency to annually make an inventory of all lands, surplus lands, and all lands held in excess of foreseeable needs, to make this inventory a matter of public record, and to share this information with HCD in its annual progress report.
- Requires a local agency to declare land either “surplus land” or “exempt surplus land,” as supported by written findings, before a local agency may take any action to dispose of it.
- Exempts certain types of surplus land owned by local agencies from the requirements of the SLA.
- Provides the following regarding disposal of non-exempt surplus land:
- Requires a local agency that is disposing of non-exempt surplus land to notify certain public entities and housing sponsors that surplus land is available for low- and moderate-income housing, parks, recreation, open space, school facilities, and infill opportunity zones or transit village plans.
- Requires that, if another agency or housing sponsor wants to buy or lease the surplus land for one of these purposes, it must inform the disposing agency of its interest within 60 days.
- Specifies that, if multiple entities want to purchase the land, the housing sponsor that proposes to provide the greatest level of affordable housing gets priority. The disposing agency and the entity have an additional 90 days to negotiate a mutually satisfactory price and terms in good faith. If they cannot agree, the agency that owns the surplus land can dispose of the land on the private market.
- Requires a local agency, prior to agreeing to the terms for the disposition of surplus land, to provide specified information about its disposition process to HCD. Requires HCD to submit to the local agency, within 30 days, written findings of any process violations that have occurred. The law provides a local agency at least 30 days to either correct the violations or adopt a resolution with findings explaining why the process is not in violation.
- Provides that a local agency that disposes of land in violation of the SLA following a notification from HCD is liable for a penalty of 30 percent of the final sale price for a first violation and 50 percent for subsequent violations. Requires that penalty assessments must be deposited into a local housing trust fund, the state Building Homes and Jobs Fund, or the Housing Rehabilitation Loan Fund, as specified. (Government Code Sections 54220-54234)
FISCAL EFFECT: Unknown.
COMMENTS:
Author’s Statement: According to the author, “California is facing a housing crisis and unused public land has the potential to promote affordable housing development throughout the state. These properties are key to building housing that is connected to transit, schools, and jobs. In fact, most affordable housing in California is built on what used to be public land. AB 480 clarifies and strengthens provisions in the Surplus Land Act that will promote the use of public land for affordable housing.”
Local Surplus Lands: The SLA requires local agencies to prioritize the development of affordable housing when disposing of their surplus land. Local agencies must annually create a list of all properties owned by the agency that are surplus and are not necessary for the agency’s use. Local agencies then have the opportunity to declare at a public meeting which of these lands are “exempt surplus land,” meaning they are exempt from the requirements of the SLA.
For surplus land that is not exempt, the SLA spells out the process the local agency must undertake when disposing of it. This includes notifying specified parties of the availability of the surplus land, who then have 60 days to convey their interest. Except where the surplus land is currently used for park or recreational purposes, the local agency must give priority to the entity that proposes to provide the greatest level of affordable housing on the land. If the surplus land is currently used for park or recreational purposes, the disposing agency must give first priority to an entity that agrees to continue to use the site for park or recreational purposes. If the local agency and any of the prioritized entities are not able to negotiate a mutually satisfactory price after 90 days of good faith negotiations, the local agency may proceed to sell the land on the open market. In that case, any project that includes residential uses must ensure that at least 15 percent of the units are affordable to lower income households.
In March 2023, HCD provided data to the Committee on local surplus land dispositions that occurred since January of 2021. According to their data, surplus land transactions have resulted in 8,387 housing units, including over 5,800 units of housing affordable to lower-income households.
Exempt Surplus Land: To be exempt from the SLA, surplus land must meet one of the 12 specified exemptions in the SLA, which include:
- Land that is transferred for the construction of affordable housing, as specified;
- Land that is transferred to or exchanged with another government agency that will be utilized by that agency;
- Land that is difficult or impossible to build upon, such as small sites and sites subject to valid legal restrictions that prohibit housing; and
- Land whose future use meets specified criteria, such as land put to open bid for use as 100 percent affordable housing or larger mixed-use projects with at least 25 percent affordable housing.
This bill would add a 13th exemption for land owned by a California public-use airport on which residential use is prohibited pursuant to the FAA.
This bill also requires local agencies to notify HCD 30 days prior to disposing of exempt surplus land. This change would codify the existing notification requirement that exists in Section 400(e) of HCD’s SLA Guidelines.[1]
This bill also creates an exception for noticing requirements for sites whose exemption status is objective, such as the site is too small, housing is prohibited, the future use is affordable housing, or the land will be utilized for specified purposes by a local education agency.
Finally, this bill specifies that surplus land that is exempt due to a valid legal restriction on the land that is not imposed by the local agency is only exempt if the legal restrictions are documented and verified in writing by the relevant agencies that impose the restrictions.
SLA Penalties: Local agencies that dispose of surplus land in violation of the SLA are subject to penalties indexed to the final sales price of the land. This could result in the fines being de minimis in instances when a local agency sells the surplus land for below market value.
This bill addresses that scenario by amending the penalty provisions of the SLA to factor in the appraised value of the disposed land. Specifically, it requires an independently appraised fair market value of the surplus land at the time of the disposition, and bases the penalties on that appraised value if it is greater than the sales price.
Arguments in Support: Most of the supporters of the bill are affordable housing advocates that argue that the bill will further the SLA’s stated purpose of facilitating affordable housing. According to the Public Interest Law Project and other co-sponsors of the bill, “AB 480 will strengthen the Surplus Lands Act by closing enforcement loopholes in the SLA, creating an administrative declaration process for specific types of exempt surplus lands, standardizing public notices of availability, and additional technical changes for consistency and clarity. The bill works in partnership with local governments, by providing new streamlining opportunities for compliance with the SLA, thus ensuring they are not overly burdened with unnecessary bureaucratic processes. It also ensures that the spirit of the SLA is protected with improved enforcement protocols and standardizing the process of notifying affordable housing builders of land availability and making those notices available to the public.”
Other supporters of the bill represent public use airports, who appreciate that the bill would add disposition by such airports to the list of exemptions to the SLA. They say this exemption of the SLA is warranted, because facilitating the construction of residential housing on airport property would be a violation of legal obligations not to do so, pursuant to the FAA.
Arguments in Opposition: Opponents of the bill include specific cities, counties, and special districts, as well as the organizations that collectively represent them. These groups argue that local agencies should not be required to notify HCD within 30 days of disposal of exempt surplus land, because the SLA provides that it does not apply to the disposal of exempt surplus land (GC 54222.3). This argument highlights an internal discrepancy within the SLA, because elsewhere the SLA requires local agencies to declare land to be exempt surplus land as supported by written findings (GC 54221(b)(1)). This requirement is the basis used by HCD in its SLA Guidelines for requiring local agencies to notify it of disposal of exempt surplus land – a requirement that would be codified in this bill.
Related Legislation:
AB 457 (Joe Patterson) of the current legislative session creates an SLA exemption for parcels that abut state highway right of way that a local agency identified in its circulation element or capital improvement plan for future roadway development. AB 457 passed out of this Committee on a vote of 8-0 and is pending referral in the Senate.
AB 837 (Alvarez) of the current legislative session declares that the SLA does not apply to a particular project in Chula Vista that was acquired by the local agency before January 1, 2019 and is subject to an irrevocable offer of dedication of fee interest requiring that the land be developed for educational purposes. AB 837 is pending in this Committee.
AB 1607 (Wendy Carrillo) of the current session states that the SLA does not apply to the disposition of land by the Los Angeles County Affordable Housing Solutions Agency for the purposes of developing affordable housing. AB 1607 passed out of this Committee on a vote of 8-0 and is pending in the Assembly Committee on Local Government.
AB 1734 (Jones-Sawyer) of the current legislative session states that the SLA does not apply to the disposition of land for emergency shelter and affordable housing in cities that meet specified criteria, including having a declared homelessness emergency and having HCD’s designation as a pro-housing jurisdiction. AB 1734 passed out of this Committee on a vote of 7-0 and is pending in the Assembly Committee on Local Government.
SB 747 (Caballero) of the current legislative session amends the SLA to increase the ability for local agencies to dispose of the land for with economic development opportunities. SB 747 is pending hearing in the Senate Committee on Housing.
AB 2319 (Bonta), Chapter 963, Statutes of 2022: Created an exemption from the SLA for the Alameda Naval Air Station (Alameda Point).
AB 2357 (Ting) of 2022 was substantially similar to this bill. AB 2357 was held in the Senate Committee on Governance and Finance.
SB 361 (Umberg) of 2022 would have required the City of Anaheim to comply with additional transparency requirements prior to disposing of surplus land. SB 361 was ordered to the inactive file on the Assembly Floor.
SB 1373 (Kamlager), Chapter 724, Statutes of 2022: Extended the authority for the City of Los Angeles to complete disposition of certain surplus property in accordance with the SLA as it read on December 31, 2019.
AB 1271 (Ting) of 2021 would have expanded the types of land exempt from the SLA, imposed new procedural requirements on local agencies disposing of surplus land, and made various technical changes to the SLA. AB 1271 was held in this committee.
AB 1486 (Ting), Chapter 664, Statutes of 2019: Expanded the scope of local agencies subject to the SLA, revised the definitions of “surplus land” and “exempt surplus land,” revised the noticing requirements relative to local agencies, housing sponsors and HCD, and added penalties for local agencies that sell land in violation of the SLA.
AB 2135 (Ting), Chapter 644, Statues of 2014: Amended the procedure for the disposal of surplus land by local agencies and expanded the provisions relating to the prioritization of affordable housing development if the surplus land will be used for residential development.
Double Referred: This bill is double referred. It was heard in the Assembly Committee on Local Government and passed on a vote of 6-2.
REGISTERED SUPPORT / OPPOSITION:
Support
East Bay Housing Organization (Sponsor)
Non-profit Housing Association of Northern California (Sponsor)
Public Interest Law Project (Sponsor)
San Diego Housing Federation (Sponsor)
Association of California Airports
California Airports Council
California Housing Partnership
Housing Leadership Council of San Mateo County
Public Advocates
Opposition
AV Edge
Calaveras County Economic & Community Development
California Association for Local Economic Development
City of Bellflower
City of Concord
City of Elk Grove
City of Fowler
City of Fullerton
City of Indian Wells
City of Inglewood
City of Inglewood City Hall
City of Lancaster
City of Montclair
City of Morgan Hill
City of Murrieta
City of Palmdale
City of Rancho Cordova
City of Salinas
City of Thousand Oaks
City of West Sacramento
Greater Sacramento Economic Council
Kosmont Companies
Solano Economic Development Corporation
Tulare Chamber of Commerce
Oppose Unless Amended
Association of California Healthcare Districts (ACHD)
California Association of Sanitation Agencies
California Special Districts Association
City of Kerman, CA
City of Ontario
City of Tustin
CSAC
Irvine Ranch Water District
League of California Cities
RCRC
Urban Counties of California
Analysis Prepared by: Steve Wertheim / H. & C.D. / (916) 319-2085
Date of Hearing: March 29, 2023
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cecilia Aguiar-Curry, Chair
ABPCA Bill Id:AB 480 (
Author:Ting) – As Amended Ver:March 14, 2023
SUBJECT: Surplus land.
SUMMARY: Changes the penalty provisions of the Surplus Land Act (SLA) and makes procedural changes to noticing provisions that apply to “surplus land” and “exempt surplus land” disposed of by local agencies subject to the SLA. Specifically, this bill:
- Specifies that “exempt surplus land” that is exempt due to a valid legal restriction on the land that is not imposed by the local agency is only exempt if the legal restrictions are documented and verified in writing by the relevant agencies that impose the restrictions.
- Adds to the definition of “exempt surplus land” land that is owned by a California public-use airport on which residential use is prohibited pursuant to Federal Aviation Administration (FAA) Order 5190.6B, as specified.
- Authorizes local agencies to declare specified types of “exempt surplus land” administratively with 30 days public notice rather than through a formal public hearing of the agency’s governing body, as specified.
- Requires local agencies to notify the Department of Housing and Community Development (HCD) 30 days prior to disposing of exempt surplus land, as specified.
- Specifies that written notices of availability of surplus land that local agencies are required to provide must be prepared in a form prescribed by HCD.
- Requires HCD to provide a link on its internet website to all notices of availability of surplus land that it receives from local agencies and a list of all entities, including housing sponsors, that have notified HCD of their interest in acquiring surplus land for the purpose of developing affordable housing.
- Amends the penalty provisions of the SLA to require that local agencies that dispose of surplus land in violation of the SLA are liable for a penalty that is a specified percentage of the independently appraised fair market value of the surplus land at the time of the disposition, if the appraised value is greater than the sales price.
- Makes a number of conforming and technical changes.
- Provides that, if the Commission on State Mandates determines that this bill contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to current law governing state mandated local costs.
EXISTING LAW:
- Requires each city and county to prepare, adopt, and administer a general plan for their jurisdiction, which must include a housing element, to shape the future growth of its community (Government Code § 65300 – 65404).
- Establishes the SLA which, among other provisions, provides the following:
- Requires each local agency, on or before December 31 of each year, to make an inventory of all lands held, owned or controlled by it or any of its departments, agencies, or authorities, to determine what land, if any, is in excess of its foreseeable needs. Requires a description of each parcel found to be in excess of needs to be made a matter of public record and requires the agency to report this information to HCD no later than April 1.
- Defines “surplus land” as land owned by any local agency that is determined to be no longer necessary for the agency’s use.
- Exempts certain types of surplus land owned by local agencies from the requirements of the SLA.
- Requires a local agency that is disposing of surplus land to notify certain public entities and housing sponsors that surplus land is available for one of the following purposes:
- Low- and moderate-income housing.
- Park and recreation, and open space.
- School facilities.
- Infill opportunity zones or transit village plans.
- Requires that, if another agency or housing sponsor wants to buy or lease the surplus land for one of these purposes, it must inform the disposing agency of its interest within 60 days. If multiple entities want to purchase the land, the housing sponsor that proposes to provide the greatest level of affordable housing gets priority. The disposing agency and the entity have an additional 90 days to negotiate a mutually satisfactory price and terms in good faith. If they can’t agree, the agency that owns the surplus land can dispose of the land on the private market.
- Requires a local agency, prior to agreeing to the terms for the disposition of surplus land, to provide specified information about its disposition process to HCD. Requires HCD to submit to the local agency, within 30 days, written findings of any process violations that have occurred. The law provides a local agency at least 30 days to either correct the violations or adopt a resolution with findings explaining why the process is not in violation.
- Provides that a local agency that disposes of land in violation of the SLA following a notification from HCD is liable for a penalty of 30 percent of the final sale price for a first violation and 50 percent for subsequent violations. Requires that penalty assessments shall be deposited into a local housing trust fund, the state Building Homes and Jobs Fund, or the Housing Rehabilitation Loan Fund, as specified. (Government Code § 54220-54234).
FISCAL EFFECT: This bill is keyed fiscal and contains a state-mandated local program.
COMMENTS:
- Bill Summary and Author’s Statement. This bill makes a number of changes to the SLA. This bill allows penalties for violations of the SLA to be linked to the appraised value of the land at the time it is disposed of, if the appraised value is greater than the sales price of the land. The bill also requires HCD to post additional information regarding surplus land dispositions on its internet website, creates a new category of exempt surplus land for property owned by public airports, authorizes local agencies to declare specified types of “exempt surplus land” administratively if they notify HCD and other specified entities 30 days prior to disposal, and makes additional minor and clarifying changes.
According to the author, “California is facing a housing crisis and unused public land has the potential to promote affordable housing development throughout the state. These properties are key to building housing that is connected to transit, schools, and jobs. In fact, most affordable housing in California is built on what used to be public land. AB 480 clarifies and strengthens provisions in the Surplus Land Act that will promote the use of public land for affordable housing.”
This bill is cosponsored by the following entities: East Bay Housing Organization, Non Profit Housing Association of Northern California, Public Interest Law Project, and San Diego Housing Federation.
- Local Surplus Lands. The SLA spells out the steps local agencies must follow when they dispose of land they no longer need. Before local officials can dispose of property, they must declare that the land is no longer necessary for the agency’s use in a public meeting and declare the land either “surplus land” or “exempt surplus land.” The SLA designates certain types of land as “exempt surplus land,” which is not subject to the requirements of the SLA. All other surplus land must follow the procedures laid out in the SLA.
After a local agency declares that a piece of land is surplus to its needs (and is not exempt), the agency must send a written notice of availability to various public agencies and nonprofit groups, referred to as “housing sponsors,” notifying them that land is available for any of the following purposes:
- Low- and moderate-income housing.
- Park and recreation, and open space.
- School facilities.
- Infill opportunity zones or transit village plans.
If another agency or housing sponsor wants to purchase or lease the surplus land for one of these purposes, it must tell the disposing agency within 60 days. Except where the surplus land is currently used for park or recreational purposes, the local agency must give priority to the housing sponsor that proposes to provide the greatest level of affordable housing on the land. If the surplus land is currently used for park or recreational purposes, the disposing agency must give first priority to an entity that agrees to continue to use the site for park or recreational purposes.
If the local agency and any of the prioritized entities are not able to negotiate a mutually satisfactory price after 90 days of good faith negotiations, the local agency may proceed to sell the land on the open market.
- Exemptions from the SLA. The SLA exempts a series of potential land dispositions from its requirements. Exempt dispositions are not required to go through the solicitation and negotiation process outlined in the SLA. This reflects the reality that certain dispositions provide intrinsic value to residents, will provide one of the desired outcomes (provision of affordable housing, or preservation of parklands) envisioned in the SLA, or that the land that is being disposed of is incompatible with housing. For example, surplus land that will be developed with a large mixed-use development that dedicates at least 25 percent of the units to lower income households is considered “exempt surplus land,” as the affordability levels provided are equivalent to the minimum requirements of the SLA. This exemption allows local agencies to more expeditiously dispose of land while achieving one of the desired outcomes of the SLA.
- Local Noticing Requirements. Prior to disposing of surplus land, the SLA requires local agencies to declare that the land is surplus land or “exempt surplus land” at a public meeting. This action increases the transparency related to the disposal of surplus land, making stakeholders aware of the potential to acquire surplus land, or to protest a designation of surplus land as exempt.
The SLA provides for a series of categories and several subcategories of surplus land that is deemed “exempt surplus land.” Certain categories of “exempt surplus land” are subjective and could be widely interpreted; in this case, declaring land exempt at a public hearing adds a useful layer of disclosure. However, certain categories of “exempt surplus land” are patently objective and not subject to interpretation. Requiring local agencies to declare these parcels are exempt at a public meeting adds an unnecessary layer of procedure to the disposition of objectively “exempt surplus land.” Disposition of these categories of “exempt surplus land” should still require public notice; however, the appropriate level of notice can be achieved through a notice that is made public prior to the disposal.
- Land Dispositions under the SLA. HCD provided data to the Committee on local land dispositions that occurred since the updates to the SLA took effect in January of 2021. HCD reviewed 237 standard land dispositions i.e. land that is subject to the provisions of the SLA and does not fall under a category of “exempt surplus land.” According to HCD, these standard dispositions led to 21 projects that are currently in the development pipeline and are expected to generate 2,994 housing units, of which 1,832 will be affordable units.
HCD reported that it reviewed another 525 dispositions that were either determined to be necessary for the agency’s use or categorized as “exempt surplus land” i.e. non-standard dispositions. Local agencies are not required to identify land that continues to be necessary for an agency use to HCD as surplus or exempt surplus land. That land is not surplus and is excluded from the disposition requirements of the SLA, constituting a de facto exemption. However, local agencies often consult with HCD to verify that an intended disposition meets the statutory definition of “agency use.” HCD provided expanded data on 290 of the most recent non-standard dispositions. Of the non-standard definitions, 253 were categorized as “exempt surplus land” and 37 dispositions were determined to be necessary for the local agency’s use. Of the 253 dispositions identified as exempt surplus land, 135 fell under categories that would be subject to the simplified exemption notice process created by this bill. Those exempt dispositions are bolded in the chart below.
Exemption Category | Exempt Dispositions | Percent of Exempt Dispositions |
Affordable housing (f)(1)(A) | 36 | 12 % |
Small lot (f)(1)(B) | 38 | 13% |
Property exchange for agency use (f)(1)(C) | 24 | 8% |
Agency to agency transfer (f)(1)(D) | 63 | 22% |
Former street, right-of-way, easement (f)(1)(E) | 22 | 8% |
Mixed-use affordable housing (f)(1)(F)(i) and (ii) | 8 | 3% |
Valid Legal Restriction (f)(1)(G) | 18 | 6% |
Trust land (f)(1)(H) | 9 | 3% |
Education Code (f)(1)(I) | 30 | 10% |
Former military base (f)(1)(J) | 5 | 2% |
- Penalties and Leases. Local agencies that dispose of surplus land in violation of the SLA are subject to penalties indexed to the final sales price of the land. Supporters of this bill are concerned that a local agency could avoid or reduce the penalties associated with violations of the SLA by selling surplus land for below market value, potentially in exchange for other concessions from the developer receiving the land (e.g. keeping a sports team located within the local agency’s jurisdiction in exchange for a discounted sales price). As the penalties are indexed to the sales price of land sold in violation of the SLA, if a local agency sells public land for substantially less than market value the associated penalty will be correspondingly reduced. The supporters of this bill propose to remedy this by linking the penalties to the sales price or the appraised value of the land at the time the land was disposed, whichever is greater.
The SLA guidelines adopted by HCD include local agency leases of surplus land as a type of disposition of land subject to the SLA. In practice, according to HCD, this means that if a local agency leases surplus land without following the procedures outlined in the SLA, the local agency violates the SLA. However, the current penalty provisions of the SLA are explicitly linked to the final sales price at the time the land is sold. When a local agency leases land to a private entity, there is no sales price or sales date to penalize. Therefore, it is unclear what penalty, if any, could be applied to land that is leased in a manner that HCD finds in violation of the SLA.
- Policy Considerations. The Committee may wish to consider the following:
- Competing Measures. Several authors introduced measures that seek to amend the SLA this year. The author and sponsors of this bill may wish to coordinate their efforts with other measures amending the SLA to avoid conflict and duplication.
- Penalty Ambiguity. The amendments to the SLA proposed in this bill link the penalty for violations to the sales price of the land, or the value of the land at the time of disposition. This could allow for the levying of penalties on leases of surplus land. If leasing surplus land without complying with the procedures of the SLA constitutes a violation of the SLA, it is appropriate to apply some form of penalty to the violation. However, leases, which involve an ongoing relationship between the local agency and the tenant, are substantially different transactions from sales, which are point-in-time transactions.
The value of an undeveloped parcel may be minimal at the initiation of a lease, but could increase in value substantially as a result of improvements made to the land by the tenant as a condition of the lease. Does the value of land at the time a lease is initiated constitute the appropriate point to apply penalties for leases issued in violation of the SLA? The Committee may wish to ask the author to continue to work with committee staff to refine language related to assessing penalties on land leased in violation of the SLA.
- Administrative Declarations. One provision of the bill seeks to simplify the exemption process for specific categories of “exempt surplus land” by allowing local agencies to declare those parcels are “exempt surplus land” administratively, rather than at a public meeting. Several stakeholders have questioned what would constitute an “administrative declaration.” The Committee may wish to consider clarifying this provision.
- Airport Land. This bill also seeks to clarify that airport land subject to specified FAA restrictions is exempt surplus land. This land is subject to documented restrictions that are readily identifiable. The Committee may wish to consider allowing this category of “exempt surplus land” to use the simplified exemption process.
- Committee Amendments. In order to address some of the issues noted above, the Committee may wish to amend proposed Section 54221.5 as follows:
“54221.5. (a) Before taking any action to dispose of land, a local agency shall declare that the land is either “surplus land” or “exempt surplus land” as specified in this section. The declaration shall be supported by written findings before the local agency may dispose of the land in a manner that is consistent with this section and the local agency’s policies.
(b) Except as provided in subdivision (c), a local agency shall take formal action at a regular public meeting to declare that land is either “surplus land” or “exempt surplus land.”
(c) Notwithstanding subdivision (b), a local agency may declare administratively is not required to make a declaration at a public meeting for that land that is “exempt surplus land” pursuant to subparagraphs (A), (B), (E), (H), or (I) or (M) of paragraph (1) of subdivision (f) of Section 54221 if the declaration and provided that the local agency identifies that land in a notice that is findings are published and available for public comment, including notice to the entities identified in subdivision (a) of section 54222, at least 30 days before the declaration exemption takes effect…”
- Related Legislation. AB 457 (Joe Patterson) creates an SLA exemption for parcels that abut state highway right of way that a local agency identified in its circulation element or capital improvement plan for future roadway development. AB 457 is pending in this Committee.
AB 837 (Alvarez) creates an SLA exemption for land acquired by a local agency for the development of a university and innovation district. AB 837 is pending in this Committee.
AB 983 (Cervantes) categorizes as exempt surplus land, properties that are designated in an adopted downtown revitalization plan, as specified. AB 983 is pending in this Committee.
AB 1607 (Wendy Carrillo) exempts land transferred within Los Angeles County to the Los Angeles County Affordable Housing Solutions Agency from the SLA. AB 1607 is pending in the Housing and Community Development Committee.
- Previous Legislation. AB 1784 (Seyarto) of 2022 would have created an SLA exemption for low density parcels located in jurisdictions that meet or exceed their 6th cycle Regional Housing Needs Allocation (RHNA) production targets for Very Low Income (VLI) and Low Income (LI) housing on an annual basis. AB 1784 was held in the Housing and Community Development Committee.
AB 2319 (Bonta), Chapter 963, Statutes of 2022, created an exemption from the SLA for the Alameda Naval Air Station (Alameda Point).
AB 2357 (Ting) of 2022 was substantially similar to this bill. AB 2357 was held in the Governance and Finance Committee.
SB 361 (Umberg) of 2022 would have required the City of Anaheim to comply with additional transparency requirements prior to disposing of surplus land. SB 361 was ordered to the inactive file on the Assembly Floor.
SB 1373 (Kamlager), Chapter 724, Statutes of 2022, extended the authority for the City of Los Angeles to complete disposition of certain surplus property in accordance with the SLA as it read on December 31, 2019.
AB 1271 (Ting) of 2021 would have expanded the types of land exempt from the SLA, imposed new procedural requirements on local agencies disposing of surplus land, and made various technical changes to the SLA. AB 1271 was held in the Housing and Community Development Committee.
SB 719 (Min) of 2021 would have provided that land comprising the former Tustin Marine Corps Air Station is exempt surplus land for the purposes of the SLA if certain affordability standards for residential developments and other conditions are met. SB 719 was held in this Committee.
AB 1486 (Ting), Chapter 664, Statutes of 2019, expanded the scope of local agencies subject to the SLA, revised the definitions of “surplus land” and “exempt surplus land,” revised the noticing requirements relative to local agencies, housing sponsors and HCD, and added penalties for local agencies that sell land in violation of the SLA.
AB 2135 (Ting), Chapter 644, Statues of 2014, amended the procedure for the disposal of surplus land by local agencies and expanded the provisions relating to the prioritization of affordable housing development if the surplus land will be used for residential development.
- Arguments in Support. The Public Interest Law Project writes in support, “AB 480 will strengthen the SLA by closing enforcement loopholes in the SLA, creating an administrative declaration process for specific types of exempt surplus lands, standardizing public notices of availability, and additional technical changes for consistency and clarity. The bill works in partnership with local governments, by providing new streamlining opportunities for compliance with the SLA, thus ensuring they are not overly burdened with unnecessary bureaucratic processes. It also ensures that the spirit of the SLA is protected with improved enforcement protocols and standardizing the process of notifying affordable housing builders of land availability and making those notices available to the public.”
- Arguments in Opposition. The City of Salina writes in opposition, “Current [SLA], including [HCD] recent guidelines, have delayed City real estate transactions, and have increased the staff time required to fulfill HCD requirements. A specific example is the delay in the release of a Request for Proposals to develop affordable housing on County property through a city/county partnership because it was unclear as to the application of SLA and HCD guidelines to the long-term ground lease.
“AB 480 would further undermine the ability of local agencies to conduct appropriate economic development activities on properties they acquire or otherwise own, by expanding the HCD’s scope of authority to include the review of “any action to dispose of land,” which would include properties retained for agency use, properties declared “exempt surplus,” and properties that local agencies are authorized by other laws to acquire and dispose of for economic development purposes.”
- Double-Referral. This bill is double-referred to the Assembly Committee on Housing and Community Development.
REGISTERED SUPPORT / OPPOSITION:
Support
East Bay Housing Organization [SPONSOR]
Non-profit Housing Association of Northern California [SPONSOR]
Public Interest Law Project [SPONSOR]
San Diego Housing Federation [SPONSOR]
Association of California Airports
California Airports Council
Oppose Unless Amended
City of Kerman
Opposition
California Associations for Local Economic Development
Opportunity Stanislaus
Calaveras County Economic & Community Development
California Association for Local Economic Development
City of Indian Wells
City of Salinas
Tulare Chamber of Commerce
Analysis Prepared by: Hank Brady / L. GOV. / (916) 319-3958
Discussed in Hearing
14MIN
Assembly Floor
2MIN
Senate Floor
1MIN
Senate Standing Committee on Appropriations
7MIN
Senate Standing Committee on Housing
22MIN
Senate Standing Committee on Governance and Finance
1MIN
Assembly Floor
1MIN
Assembly Standing Committee on Appropriations
14MIN
Assembly Standing Committee on Housing and Community Development
Bill Author
