Bill Text: CA AB1635 | 2023-2024 | Regular Session | Amended

California Assembly Bill 1635

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Hillcrest property: leasing: affordable housing.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2024-01-29 - In Senate. Read first time. To Com. on RLS. for assignment. [AB1635 Detail]

Download: California-2023-AB1635-Amended.html

Amended IN Assembly January 04, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1635

Introduced by Assembly Member Ward

February 17, 2023

An act to amend Section 14670.22 of, and to add Section 14670.23 to, the Government Code, relating to ~~pupil instruction.~~ state property.

LEGISLATIVE COUNSEL'S DIGEST

AB 1635, as amended, Ward. ~~Pupil instruction: internship-based learning opportunities.~~ Hillcrest property: leasing: affordable housing.

Existing law authorizes the Department of General Services to dispose of surplus state real property, as defined, as authorized by the Legislature, upon any terms and conditions and subject to any reservations and exceptions the department deems to be in the best interests of the state. Existing law authorizes the Director of General Services, with the consent of the Department of Motor Vehicles, to lease or exchange for a term of years and for fair market value, all or portions of parcels of specified real property, including the property located at 3960 Normal Street, San Diego, that are acquired and used by the state for the benefit of the Department of Motor Vehicles, for the purpose of developing mixed public and private use facilities, subject to specified requirements.
This bill would delete the above authorization for the Director of General Services to lease or exchange the property located at 3960 Normal Street, San Diego, and would instead require the Department of General Services, by July 1, 2026, to negotiate and execute a legally binding ground lease for all portions of that property that are not utilized for Department of Motor Vehicles facilities. The bill would require the lease to be with a public housing authority and would require the lease to allow for the development of housing development projects, as defined. The bill would require the lease to require at least 25% of the total number of housing units be affordable to lower income households, as defined, and would require the right to develop the property be awarded to the entity that will provide the highest percentage of units affordable to lower income households. If the department fails to execute a lease of the property with a public housing authority by July 1, 2026, the bill would require the department to negotiate and execute a legally binding lease with any other local agency or affordable housing developer for the property for development consistent with the above-described requirements, except as specified. The bill would require the proceeds from the lease of the property be deposited into the Motor Vehicle Account in the State Transportation Fund and, upon appropriation by the Legislature, be available for expenditure by the Department of Motor Vehicles.
Existing law authorizes the governing board of a district maintaining a high school to provide for the instruction of pupils by means of courses of work-based learning or work experience education, as provided. Existing law encourages school districts to maximize the use of available resources for youth employment opportunities by coordinating work-based learning opportunities, as provided.
~~This bill would state the intent of the Legislature to enact future legislation to create paid internship-based learning opportunities for eligible pupils attending high school.~~

Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 14670.22 of the Government Code is amended to read:

14670.22.

(a) Notwithstanding any other provision of law, the Director of General Services, with the consent of the Department of Motor Vehicles, may lease or exchange, if the director deems the leasing or exchanging to be in the best interest of the state, for a term of years, as determined by the director, and for fair market value, all or portions of parcels of real property, that are acquired and used by the state for the benefit of the Department of Motor Vehicles, as described in subdivision (b), for the purpose of developing mixed public and private use facilities, including adequate parking for the Department of Motor Vehicles field office, as determined by that department, subject to all of the following conditions:

(1) All proceeds from the lease or exchange of the Department of Motor Vehicles property shall be deposited into the Motor Vehicle Account in the State Transportation Fund and shall be available for expenditure by the Department of Motor Vehicles.

(2) Each lease shall provide that the lessee may sublease for commercial, retail or residential uses that portion of the developed property that is not required for use of the state.

(3) A mixed-use facility developed pursuant to this section shall be located at the current state-owned site unless there are mitigating circumstances requiring relocation. If relocation does become necessary, the replacement facility shall be located within the geographic area that serves the current customer base.

(b) For purposes of this section, the following parcels of real properties may be leased or exchanged pursuant to subdivision (a):

(1) A parcel of real property located at 1377 Fell Street, San Francisco.

~~(2)3960 Normal Street, San Diego, provided that any lease or exchange of property shall include a condition that a local farmer’s market may continue to conduct regular business.~~
~~(3)~~

(2) 8629 Hellman Avenue, Rancho Cucamonga.

(c) The Department of General Services and the Department of Motor Vehicles, jointly, shall notify the Joint Legislative Budget Committee when the Department of General Services, with the consent of the Department of Motor Vehicles, enters into any lease for a period of 30 years or more and shall report to the committee the terms and conditions of any lease at least 45 days prior to entering into that lease.

(d) Any lease or exchange of properties carried out pursuant to this section shall be for no less than fair market value and upon terms and conditions that the Director of General Services determines to be in the best interest of the state. Compensation for the property may include land, improvements, money, or any combination thereof.

(e) The Department of General Services shall be reimbursed for any cost or expense incurred in the disposition or lease of any parcels described in this section by the Department of Motor Vehicles or from the proceeds of the lease or exchange of those parcels.

(f) The properties identified in this section are not subject to Section 11011.1 or Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5, and the properties shall be or have been offered to the public through a competitive process determined by the director to be in the best interest of the state.

SEC. 2.

Section 14670.23 is added to the Government Code, to read:

14670.23.
(a) Notwithstanding any other provision of law, by July 1, 2026, the Department of General Services shall negotiate and execute a legally binding ground lease for the Hillcrest property.
(b) The lease shall be subject to all of the following conditions:
(1) The lease shall be with a public housing authority.
(2) The least shall allow for the development of housing development projects.
(3) The lease shall require at least 25 percent of the total number of housing units be affordable to lower income households, and the right to develop the Hillcrest property shall be awarded to the entity that will provide the highest percentage of units affordable to lower income households.
(4) The lease shall be for a term of at least 55 years.
(5) The lease shall be for all portions of the Hillcrest property that are not utilized by the Department of Motor Vehicles.
(6) The least shall be for at least one-half of the Hillcrest property.
(c) Notwithstanding subdivision (a), if the Department of General Services fails to execute a lease of the Hillcrest property by July 1, 2026, it shall negotiate and execute a legally binding lease with any other local agency or affordable housing developer for the Hillcrest property for development consistent with the lease requirements established in paragraphs (2) through (6), inclusive, of subdivision (b).
(d) The Department of General Services and the Department of Motor Vehicles, jointly, shall report to the Joint Legislative Budget Committee the terms and conditions of any lease at least 45 days prior to entering into the lease.
(e) A lease executed pursuant to this section shall be for no less than fair market value based on the projected use of the property and upon terms and conditions that the Director of General Services determines to be in the best interest of the state. Compensation for the property may include land, improvements, money, or any combination thereof.
(f) (1) Except as provided in paragraph (2), all proceeds from the lease of the Hillcrest property shall be deposited into the Motor Vehicle Account in the State Transportation Fund and, upon appropriation by the Legislature, shall be available for expenditure by the Department of Motor Vehicles.
(2) The Department of General Services shall be reimbursed for any cost or expense incurred in the lease of the Hillcrest property by the Department of Motor Vehicles or from the proceeds of the lease of the Hillcrest property.
(g) A lease of the Hillcrest property shall not be subject to Section 11011.1 or Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5.
(h) For purposes of this section:
(1) “Director” means the Director of General Services.
(2) “Hillcrest property” means 3960 Normal Street, San Diego, but does not include any land utilized for Department of Motor Vehicles facilities.
(3) “Housing development project” has the same meaning as defined in subdivision (h) of Section 50079.5.
(4) “Lower income households” has the same meaning as defined in Section 50079.5 of the Health and Safety Code.

SECTION 1.
~~It is the intent of the Legislature to enact future legislation to create paid internship-based learning opportunities for eligible pupils attending high school.~~