AB 2357

Bill Subjects

Abstract

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 "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 requires a local agency to take formal action in a regular public meeting to declare land is surplus and is not necessary for the agency's 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 agency's 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 requires the Department of Housing and Community Development to maintain on its internet website, an up-to-date listing of all notices of availability throughout the state. This bill would also require the department to maintain on its internet website 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. Existing law specifies that these provisions do not 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 as authorized under other provisions of law. This bill would instead specify that these provisions do not preclude a local 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 as authorized under other provisions of law. Existing law makes a local agency that disposes of 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 final sale price of the 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 other nonsubstantive changes. 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.