Bill Text: CA AB1734 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Local Government: Surplus Land Act: exemptions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2023-10-11 - Chaptered by Secretary of State - Chapter 769, Statutes of 2023. [AB1734 Detail]

Download: California-2023-AB1734-Amended.html

Amended  IN  Assembly  March 30, 2023
Amended  IN  Assembly  March 16, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 1734


Introduced by Assembly Member Jones-Sawyer

February 17, 2023


An act to amend Section 54230 of the Government Code, relating to local government. An act to amend Section 54221 of the Government Code, relating to local government.


LEGISLATIVE COUNSEL'S DIGEST


AB 1734, as amended, Jones-Sawyer. Surplus land. Local government: surplus land: exempt surplus land.
Existing law requires land to be declared surplus land or exempt surplus land, as supported by written findings, before a local agency takes any action to dispose of it consistent with the agency’s policies or procedures. Existing law sets forth procedures for the disposal of surplus land, including, but not limited to, specified notice requirements, and provides that these procedures do not apply to exempt surplus land.
Existing law describes various categories of exempt surplus land, including surplus land that is transferred pursuant to specified procedures and real property that is used by a district for the agency’s use, as expressly authorized.
This bill would expand the definition of exempt surplus land by including land that is developed for housing pursuant to provisions requiring 100% of all units in the development, as described, to be for lower income households, except as provided.
This bill would define as exempt surplus land real property that is used by a local agency for the agency’s use, as expressly authorized.
This bill would further define as exempt surplus land, land that will be disposed of by any local agency for emergency shelters, supportive housing, transitional housing, or affordable housing, as described, if the local agency meets certain requirements, including that the local agency has an encampment resolution and rehousing plan approved by the Business, Consumer Services, and Housing Agency. The bill would authorize the agency to develop guidelines for that purpose. The bill would also exempt these surplus lands from any reporting or notice requirements pursuant to provisions governing surplus land.
Existing law also exempts surplus land that is put out to open, competitive bid by a local agency, as described, for either (1) a housing development, which may have ancillary commercial ground floor uses, that restricts 100% of the residential units to persons and families of low or moderate income, as described, or (2) 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, as described.
This bill would instead exempt surplus land that is put out to open, competitive bid by a local agency, as described, for either (1) a housing development, in which at least 2/3 of the square footage is dedicated to residential units, and that restricts 100% of the residential units to persons and families of low or moderate income, as described, or (2) a mixed-use development that is more than 1/2 of an acre in area, that includes not less than 150 housing units, and that restricts at least 25% of the residential units to lower income households, as described.

Existing law requires each county and each city, on or before December 31 of each year, to make a central inventory of all of its surplus land, as defined, and all lands in excess of its foreseeable needs located within its jurisdiction. Existing law also requires each county and city to make a description of each of parcel described above and the present use of the parcel a matter of public record and to report this information to the Department of Housing and Community Development no later than April 1 of each year, in a form prescribed by the department, as part of its annual progress report.

This bill would revise this provision to instead require each county or city to provide this information to the department no later than March 1 of each year. The bill would make related, conforming changes to this law.

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

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


SECTION 1.

 Section 54221 of the Government Code 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 agency’s governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agency’s 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 agency’s 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), “agency’s 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 agency’s 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) “Agency’s 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 agency’s 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, “agency’s 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 agency’s 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 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. 37364 or is developed for housing pursuant to subparagraph (G) of paragraph (1) of subdivision (b) of Section 65915.
(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 agency’s use.
(D) Surplus land that a local agency is transferring to another local, state, or federal agency for the agency’s 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, development that dedicates at least two-thirds of the square footage to residential units and 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 housing. 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 one-half of an acre in area, that includes not less than 300 150 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 jurisdiction’s 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) (i) 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)

(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)

(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)

(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)

(IV) Prior to the disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agency’s 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)

(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

(ii) 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 local agency or a district for the agency’s use use, as 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) (i) Surplus land that will be disposed of by any local agency, subject to the requirements set forth in clause (ii), for use for any of the following purposes:
(I) Emergency shelters that meet the definition of Low Barrier Navigation Center, as defined in Section 65660, or meet the requirements of Section 65662.
(II) Supportive housing, as defined in Section 50675.14 of the Health and Safety Code.
(III) Transitional housing, as defined in subdivision (j) of Section 65582.
(IV) Affordable housing. For purposes of this subclause, “affordable housing” means a housing development with 100 percent of all units in the development, but exclusive of a manager’s unit or units, sold or rented to lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that up to 20 percent of the units in the development may be for moderate-income households, as defined in Section 50053 of the Health and Safety Code.
(ii) Before land described in clause (i) is declared exempt surplus land, the local agency shall meet the following requirements:
(I) The local agency shall have a housing element that is compliant with law, including, but not limited to, Chapter 3 (commencing with Section 65100) of Division 1 of Title 7, as determined by the Department of Housing and Community Development.
(II) The local agency shall be designated prohousing pursuant to subdivision (c) of Section 65589.9.
(III) The local agency shall declare a local emergency related to homelessness pursuant to the procedures in Article 14 (commencing with Section 8630) of Chapter 7 of Division 1 of Title 2.
(IV) The local agency shall have an encampment resolution and rehousing plan that is approved by the Business, Consumer Services, and Housing Agency.
(V) The local agency shall submit an annual report to the Department of Housing and Community Development that includes the number of emergency shelter beds, supportive housing units, transitional housing units or beds, affordable housing units, and total number of projects permitted and produced utilizing this authority.
(iii) Any local agency that declares land described in clause (i) as exempt surplus land shall not be required to satisfy any other reporting or notice requirements under this article, including paragraph (1) of subdivision (b) of Section 54221 and subdivision (e) of Section 400 of the Department of Housing and Community Development’s Surplus Land Act Guidelines.
(iv) The Business, Consumer Services, and Housing Agency shall develop guidelines for purposes of implementing subclause (IV) of clause (ii).
(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 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.

SECTION 1.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 March 1 of each year, 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)Assessor’s parcel number.

(iii)Existing use.

(iv)Whether the site is surplus land or exempt surplus land.

(v)Size in acres.

(3)Each county and each city, upon request, shall provide a list of its surplus land and excess 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).

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