Bill Text: CA AB2135 | 2013-2014 | Regular Session | Enrolled

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

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Bill Title: Surplus land: affordable housing.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-09-27 - Chaptered by Secretary of State - Chapter 677, Statutes of 2014. [AB2135 Detail]

Download: California-2013-AB2135-Enrolled.html

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BILL NUMBER: AB 2135	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 13, 2014
	PASSED THE ASSEMBLY  AUGUST 18, 2014
	AMENDED IN SENATE  AUGUST 4, 2014
	AMENDED IN SENATE  JUNE 9, 2014
	AMENDED IN ASSEMBLY  MAY 5, 2014
	AMENDED IN ASSEMBLY  APRIL 21, 2014
	AMENDED IN ASSEMBLY  MARCH 28, 2014

INTRODUCED BY   Assembly Member Ting

                        FEBRUARY 20, 2014

   An act to amend Sections 54220, 54223, 54225, 54226, and 54227 of,
and to add Sections 54222.5 and 54233 to, the Government Code,
relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2135, Ting. Surplus land: affordable housing.
   (1) Existing law prescribes requirements for the disposal of
surplus land by a local agency, as defined. Existing law requires a
local agency disposing of surplus land to negotiate in good faith
with certain entities that provided notice of a desire to purchase or
lease the land and, if the price or terms cannot be agreed upon
within a period of not less than 60 days with those entities, the
local agency may dispose of the surplus land without fulfilling
further requirements, as specified. Existing law authorizes a local
agency selling surplus land for specified purposes to specified
entities, including, but not limited to, low- and moderate-income
housing, to provide a payment period of up to 20 years in a sales
contract or trust deed. Existing law requires a local agency
disposing of surplus land to give first priority in a purchase or
lease to an entity agreeing to use the site for housing for persons
of low or moderate income, except as specified. Existing law
specifies that these and other related provisions are not to be
interpreted to empower a local agency to sell or lease surplus land
at less than fair market value.
   This bill would require an entity proposing to use the surplus
land for developing low- and moderate-income housing to agree to make
available not less than 25% of the total number of units developed
on the parcels at affordable housing cost or affordable rent for a
period of at least 55 years to lower-income households, as those
terms are defined in existing law. This bill would require a local
agency to give first priority in disposing of the surplus land to an
entity that agrees to these requirements. This bill would also
require these requirements, as specified, to be contained in a
covenant or restriction recorded against the surplus land at the time
of sale, to run with the land, and be enforceable, against any owner
who violates the covenant or restriction and each
successor-in-interest who continues the violation, by a residents'
association, as specified, and certain individuals, that include, but
are not limited to, a resident of a unit subject to these
requirements. This bill would increase the minimum time that an
agency disposing of surplus land is required to conduct negotiations
with certain entities desiring to purchase or lease the surplus land
from 60 to 90 days. This bill would require, if the local agency does
not agree to price and terms with those certain entities and the
surplus land is used for the development of 10 or more residential
units, the entity or a successor-in-interest that received the
surplus land to provide not less than 15% of the total number of
units developed on the parcels at affordable housing cost or
affordable rent, at terms similar to an entity that received first
priority for providing not less than 25% of the total number of units
at affordable housing cost or affordable rent, as specified.
    This bill would permit the payment period for surplus land sold
for low- and moderate-income housing purposes to exceed 20 years,
subject to limits related to land use requirements for low- or
moderate-income housing.
    This bill would delete the statement that these provisions are
not to be interpreted to empower a local agency to sell or lease
surplus land at less than fair market value, and would provide that a
sale or lease at or less than fair market value, as specified, shall
not be construed as inconsistent with an agency's purpose. By
increasing the duties of local officials in connection with sales and
leases of surplus land, this bill would impose a state-mandated
local program.
   (2) 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 these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 54220 of the Government Code is amended to
read:
   54220.  (a) The Legislature reaffirms its declaration that housing
is of vital statewide importance to the health, safety, and welfare
of the residents of this state and that provision of a decent home
and a suitable living environment for every Californian is a priority
of the highest order. The Legislature further declares that there is
a shortage of sites available for housing for persons and families
of low and moderate income and that surplus government land, prior to
disposition, should be made available for that purpose.
   (b) The Legislature reaffirms its belief that there is an
identifiable deficiency in the amount of land available for
recreational purposes and that surplus land, prior to disposition,
should be made available for park and recreation purposes or for
open-space purposes. This article shall not apply to surplus
residential property as defined in Section 54236.
   (c) The Legislature reaffirms its declaration of the importance of
appropriate planning and development near transit stations, to
encourage the clustering of housing and commercial development around
such stations. Studies of transit ridership in California indicate
that a higher percentage of persons who live or work within walking
distance of major transit stations utilize the transit system more
than those living elsewhere, and that lower income households are
more likely to use transit when living near a major transit station
than higher income households. The sale or lease of surplus land at
less than fair market value to facilitate the creation of affordable
housing near transit is consistent with goals and objectives to
achieve optimal transportation use. The Legislature also notes that
the Federal Transit Administration gives priority for funding of rail
transit proposals to areas that are implementing higher-density,
mixed-use, and affordable development near major transit stations.
  SEC. 2.  Section 54222.5 is added to the Government Code, to read:
   54222.5.  An entity proposing to use the surplus land for
developing low- and moderate-income housing shall agree to make
available not less than 25 percent of the total number of units
developed on the parcels at affordable housing cost, as defined in
Section 50052.5 of the Health and Safety Code, or affordable rent, as
defined in Section 50053 of the Health and Safety Code, to lower
income households, as defined in Section 50079.5 of the Health and
Safety Code. Rental units shall remain affordable to, and occupied
by, lower income households for a period of at least 55 years. The
initial occupants of all ownership units shall be lower income
households, and the units shall be subject to an equity sharing
agreement consistent with paragraph (2) of subdivision (c) of Section
65915. These requirements shall be contained in a covenant or
restriction recorded against the surplus land at the time of sale,
which shall run with the land and shall be enforceable, against any
owner who violates a covenant or restriction and each successor in
interest who continues the violation, by any of the following:
   (a) The local agency that disposed of the property.
   (b) A resident of a unit subject to this section.
   (c) A residents association with members who reside in units
subject to this section.
   (d) A former resident of a unit subject to this section who last
resided in that unit.
   (e) An applicant seeking to enforce the covenants or restrictions
for a particular unit that is subject to this section, if the
applicant conforms to all of the following:
   (1) Is of low or moderate income, as defined in Section 50093 of
the Health and Safety Code.
   (2) Is able and willing to occupy that particular unit.
   (3) Was denied occupancy of that particular unit due to an alleged
breach of a covenant or restriction implementing this section.
   (f) A person on an affordable housing waiting list who is of low
or moderate income, as defined in Section 50093 of the Health and
Safety Code, and who is able and willing to occupy a unit subject to
this section.
  SEC. 3.  Section 54223 of the Government Code is amended to read:
   54223.  After the disposing agency has received notice from the
entity desiring to purchase or lease the land, the disposing agency
and the entity shall enter into good faith negotiations to determine
a mutually satisfactory sales price or lease terms. If the price or
terms cannot be agreed upon after a good faith negotiation period of
not less than 90 days, the land may be disposed of without further
regard to this article, except that Section 54233 shall apply.
  SEC. 4.  Section 54225 of the Government Code is amended to read:
   54225.  Any public agency selling surplus land to an entity
described in Section 54222 for park or recreation purposes, for
open-space purposes, for school purposes, or for low- and moderate-
income housing purposes may provide for a payment period of up to 20
years in any contract of sale or sale by trust deed for the land. The
payment period for surplus land sold for housing for persons and
families of low and moderate income may exceed 20 years, but the
payment period shall not exceed the term that the land is required to
be used for low- or moderate-income housing.
  SEC. 5.  Section 54226 of the Government Code is amended to read:
   54226.  This article shall not be interpreted to limit the power
of any local agency to sell or lease surplus land at fair market
value or at less than fair market value, and any such sale or lease
at or less than fair market value consistent with this article shall
not be construed as inconsistent with an agency's purpose. No
provision of this article shall be applied when it conflicts with any
other provision of statutory law.
  SEC. 6.  Section 54227 of the Government Code is amended to read:
   54227.  (a) In the event that any local agency disposing of
surplus land receives offers for the purchase or lease of that land
from more than one of the entities to which notice and an opportunity
to purchase or lease shall be given pursuant to this article, the
local agency shall give first priority to the entity that agrees to
use the site for housing that meets the requirements of Section
54222.5. If the local agency receives offers from more than one
entity that agrees to meet the requirements of Section 54222.5, then
the local agency shall give priority to the entity that proposes to
provide the greatest number of units that meet the requirements of
Section 54222.5 at the deepest level of affordability.
   (b) Notwithstanding subdivision (a), first priority shall be given
to an entity that agrees to use the site for park or recreational
purposes if the land being offered is already being used and will
continue to be used for park or recreational purposes, or if the land
is designated for park and recreational use in the local general
plan and will be developed for that purpose.
  SEC. 7.  Section 54233 is added to the Government Code, to read:
   54233.  If the local agency does not agree to price and terms with
an entity to which notice and an opportunity to purchase or lease
are given pursuant to this article and disposes of the surplus land
to an entity that uses the property for the development of 10 or more
residential units, the entity or a successor-in-interest shall
provide not less than 15 percent of the total number of units
developed on the parcels at affordable housing cost, as defined in
Section 50052.5 of the Health and Safety Code, or affordable rent, as
defined in Section 50053 of the Health and Safety Code, to lower
income households, as defined in Section 50079.5 of the Health and
Safety Code. Rental units shall remain affordable to, and occupied
by, lower income households for a period of at least 55 years. The
initial occupants of all ownership units shall be lower income
households, and the units shall be subject to an equity sharing
agreement consistent with the provisions of paragraph (2) of
subdivision (c) of Section 65915. These requirements shall be
contained in a covenant or restriction recorded against the surplus
land prior to land use entitlement of the project, and the covenant
or restriction shall run with the land and shall be enforceable,
against any owner who violates a covenant or restriction and each
successor in interest who continues the violation, by any of the
entities described in subdivisions (a) to (f), inclusive, of Section
54222.5.
  SEC. 8.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.