Bills

SB 502: Local education agency-owned land: development of affordable housing.

  • Session Year: 2025-2026
  • House: Senate
  • Latest Version Date: 2025-04-24

Current Status:

Failed

(2026-02-02: Returned to Secretary of Senate pursuant to Joint Rule 56.)

Introduced

First Committee Review

First Chamber

Second Committee Review

Second Chamber

Enacted

Version:

Existing law establishes the Department of Housing and Community Development (HCD) in the Business, Consumer Services, and Housing Agency for purposes of carrying out state housing policies and programs. 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 housing sponsors, as defined, that have notified HCD of their interest in surplus land, as specified.

Existing law establishes the Department of General Services (DGS) in the Government Operations Agency for purposes of, among other things, planning, acquiring, constructing, and maintaining state buildings and property. Executive Order No. N-06-19 required DGS to create a digitized inventory of all state-owned parcels that are in excess of foreseeable needs, as provided. Existing law required DGS to develop, in consultation with HCD, no later than September 1, 2023, a set of criteria to consistently evaluate state-owned parcels for suitability as affordable housing sites. Existing law requires DGS to update the digitized inventory of all excess state land suitable for affordable housing after the conclusion of its review based on those criteria. Existing law also requires DGS to annually update the digitized inventory created pursuant to Executive Order No. N-06-19 of all excess state land, as defined, suitable for affordable housing identified by its review.

This bill would authorize a local education agency to submit a list of any available local education agency-owned land to HCD for purposes of determining the suitability for development of affordable housing. The bill would require HCD, in consultation with DGS, to conduct a review of the local education agency-owned land and determine the suitability of the land for the development of affordable housing, consistent with the above-described criteria. The bill would require any local education agency-owned land determined to be suitable for the development of affordable housing to be made publicly available through the digitized inventory created pursuant to Executive Order No. N-06-19 and the above-described contact list of housing sponsors that have notified HCD of their interest in surplus land. The bill would require that an affordable housing development constructed on local education agency-owned land determined to be suitable for the development of affordable housing to provide school district employees and local tenants with a right of first refusal to occupy the housing, as specified.

Existing law establishes the Building Homes and Jobs Act for the purpose of establishing permanent, ongoing sources of funding dedicated to affordable housing development, and creates the Building Homes and Jobs Trust Fund within the State Treasury. Existing law requires, upon appropriation by the Legislature and except as provided, for moneys collected on and after January 1, 2019, that 20% of the moneys deposited in the fund be expended for affordable owner-occupied workforce housing, and 30% be made available to the Department of Housing and Community Development for specified purposes, including a continuous appropriation of 15% of those moneys to the California Housing Finance Agency for the purpose of creating mixed-income multifamily residential housing for lower to moderate-income households, as provided. This bill, for moneys collected on and after January 1, 2019, would instead require that 20% of the moneys deposited in the fund be expended for affordable owner-occupied workforce housing or for local educational agencies to build low- to moderate-income workforce housing. The bill would reduce the continuous appropriation to the California Housing Finance Agency to 10% of the moneys deposited in the fund, and would require 5% of the moneys deposited in the fund, upon appropriation by the Legislature, to be made available to the Department of Housing and Community Development for a zero-interest revolving loan fund to pay for development and predevelopment costs incurred by local education agencies to build low- to moderate-income multifamily workforce housing.

Discussed in Hearing

Senate Standing Committee on Housing13MIN
Apr 22, 2025

Senate Standing Committee on Housing

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News Coverage:

SB 502: Local education agency-owned land: development of affordable housing. | Digital Democracy