AB 1486

Bill Subjects

Abstract

(1) Existing law prescribes requirements for the disposal of surplus land by a local agency. Existing law defines "local agency" for these purposes as every city, county, city and county, and district, including school districts of any kind or class, empowered to acquire and hold real property. Existing law defines "surplus land" for these purposes as land owned by any local agency that is determined to be no longer necessary for the agency's use, except property being held by the agency for the purpose of exchange. Existing law defines "exempt surplus land" to mean land that is less than 5,000 square feet in area, less than the applicable minimum legal residential building lot size, or has no record access and is less than 10,000 square feet in area, and that is not contiguous to land owned by a state or local agency and used for park, recreational, open-space, or affordable housing. This bill would expand the definition of "local agency" to include sewer, water, utility, and local and regional park districts, joint powers authorities, successor agencies to former redevelopment agencies, housing authorities, and other political subdivisions of this state and any instrumentality thereof that is empowered to acquire and hold real property, thereby requiring these entities to comply with these requirements for the disposal of surplus land. The bill would specify that the term "district" includes all districts within the state, and that this change is declaratory of existing law. The bill would revise the definition of "surplus land" to mean land owned in fee simple by any local agency, for which the local agency's governing body takes formal action, in a regular public meeting, declaring, supported by written findings, that the land is surplus and is not necessary for the agency's use, as defined. The bill would provide that "surplus land" for these purposes includes land held in the Community Redevelopment Property Trust Fund and land that has been designated in the long-range property management plan, either for sale or for future development, as specified. The bill would also broaden the definition of "exempt surplus land" to include specified types of lands. (2) Existing law requires a local agency disposing of surplus land to send, prior to disposing of that property, a written offer to sell or lease the property to specified entities. Existing law requires that a local agency, upon a written request, send a written offer to sell or lease surplus land to a housing sponsor, as defined, for the purpose of developing low- and moderate-income housing. Existing law also requires the local agency to send a written offer to sell or lease surplus land for the purpose of developing property located within an infill opportunity zone, designated as provided, to, among others, a community redevelopment agency. This bill would instead require, except as provided, the local agency disposing of surplus land to send, prior to disposing of that property or participating in negotiations to dispose of that property with a prospective transferee, a written notice of availability. The bill would make various related conforming changes. With regards to a housing sponsor, the bill would require that a notice of availability be sent if the housing sponsor has notified the Department of Housing and Community Development of its interest in the land, rather than upon written request. With regards to surplus land to be used for the purpose of developing property located within an infill opportunity zone, as described above, the bill would instead require that the written notice of availability be sent to a successor agency to a former redevelopment agency. The bill would require the Department of Housing and Community Development to maintain an up-to-date listing of all notices of availability throughout the state on its internet website. (3) After the disposing agency has received a notice from an entity desiring to purchase or lease the land, existing law requires the disposing agency to enter into good faith negotiations to determine a mutually satisfactory sales price or lease terms. This bill would prohibit the terms agreed to pursuant to these negotiations from doing certain things, including, among other things, disallowing residential use of the site as a condition of the sale or lease. (4) Existing law requires a local agency to give priority to the development of affordable housing for lower income elderly or disabled persons or households, and other lower income households when disposing of surplus land. This bill would remove that priority. (5) If the local agency receives offers from more than one entity that agrees to meet specified requirements related to the provision of affordable housing on the surplus land, existing law requires the local agency to give priority to the entity that proposes to provide the greatest number of units that meet those requirements. Notwithstanding that requirement, existing law requires the local agency to give first priority to an entity in specified circumstances. In the event that more than one entity proposes the same number of units that meet the above-described affordable housing requirements, this bill would require that priority be given to the entity that proposes the deepest average level of affordability for the affordable units. The bill would authorize a local agency to negotiate concurrently with all entities that provide notice of interest to purchase or lease land for the purpose of developing affordable housing. (6) Under existing law, failure by a local agency to comply with these requirements for the disposal of surplus land does not invalidate the transfer or conveyance of real property to a purchaser or encumbrancer for value. This bill would require a local agency, prior to agreeing to terms for the disposition of surplus land, to provide the Department of Housing and Community Development with a specified description of the process followed to dispose of the land and a copy of any recorded restrictions against the property, as specified, in a form prescribed by the Department of Housing and Community Development. The bill would require the Department of Housing and Community Development to, among other things, review the description and submit written findings to the local agency within 30 days of receiving the description if the proposed disposal of the land will violate specified provisions of law. The bill would require the Department of Housing and Community Development to provide the local agency a reasonable time, as specified, to respond to the department's findings prior to taking certain actions and would require the local agency to take specified actions in response. This bill would, with certain exceptions, impose a penalty of 30% of the final sale price of the land upon a local agency that disposes of land in violation of specified provisions of law after receiving the notification from the Department of Housing and Community Development to that effect, and a 50% penalty for subsequent violations. The bill would authorize specified entities or persons to bring an action against a local agency to enforce these provisions and would allow a local agency 60 days to cure or correct an alleged violation before the action may be brought, except as specified. The bill would require a penalty assessed pursuant to these provisions to be deposited into a local housing trust fund or, in certain circumstances, the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund, as provided. The bill would make the expenditure of penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to these provisions subject to appropriation by the Legislature. This bill would require the department to implement these provisions commencing on January 1, 2021. (7) If a local agency does not agree to price and terms with an entity to which notice and an opportunity to purchase or lease are given and disposes of the surplus land to an entity that uses the property for the development of 10 or more residential units, existing law requires the purchasing entity or a successor in interest to provide not less than 15% of the total number of units developed on the parcels at an affordable housing cost or affordable rent to lower income households. This bill would revise this requirement to apply if the local agency does not agree to price and terms with an entity to which notice of availability of land was given, or if no entity to which a notice of availability was given responds to that notice, and 10 or more residential units are developed on the property. This bill, if a local agency that is a district, except as specified, disposes of surplus land where local zoning permits development of 10 or more residential units or is rezoned within 5 years of the disposal to permit the development of 10 or more residential units, and 10 or more residential units are developed on the property, would require not less than 15% of the total number of residential units developed on the parcel to be sold or rented at affordable housing cost or affordable rent to lower income households. (8) The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. That law requires the planning agency of a city or county to provide by April 1 of each year an annual report to, among other entities, the Department of Housing and Community Development that includes, among other specified information, the number of net new units of housing that have been issued a completed entitlement, a building permit, or a certificate of occupancy thus far in the housing element cycle, as provided. This bill would require a city or county to include as a part of that report a listing of specified sites owned by the city or county that have been sold, leased, or otherwise disposed of in the prior year. The Planning and Zoning Law requires that the housing element include, among other things, an inventory of land suitable for residential development to be used to identify sites that can be developed for housing within the planning period and that are sufficient to provide for the jurisdiction's share of the regional housing need determined pursuant to specified law. This bill would require the housing element to provide a description of nonvacant sites owned by the city or county and provide whether there are any plans to dispose of the property during the planning period and how the city or county will comply with specified provisions relating to the disposal of surplus land by a local agency. (9) Existing law requires the Department of Housing and Community Development to notify a city or county and authorize notice to the Attorney General when a city or county has taken an action that violates the Housing Accountability Act, specified provisions relating to local housing elements, and the Density Bonus Law. This bill would also require the Department of Housing and Community Development to notify the city or county and authorizes notice to the Attorney General when the city or county has taken an action that violates these provisions relating to surplus property. (10) Existing law makes various findings and declarations as to the need for affordable housing and the use of surplus government land for that purpose. This bill would revise these findings. (11) This bill would incorporate additional changes to Section 65583.2 of the Government Code proposed by AB 957 to be operative only if this bill and AB 957 are enacted and this bill is enacted last. (12) By adding to the duties of local officials with respect to the disposal of surplus land, and expanding the scope of local agencies subject to the bill's requirements, this bill would impose a state-mandated local program. 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.