Bill Text: CA SB9 | 2019-2020 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Surplus property: sale procedures.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2020-09-01 - Ordered to inactive file. [SB9 Detail]
Download: California-2019-SB9-Amended.html
chapter, article, the price of property sold pursuant to this chapter article shall not be less than the price paid by the Department of Transportation for original acquisition of the property. The original acquisition price shall not be adjusted for inflation.SEC. 4. Section 54237.10 is added to the Government Code , to read: 54237.10.
Section 54239.1 is added to the Government Code, immediately following Section 54238.9, to read:
Bill Title: Surplus property: sale procedures.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2020-09-01 - Ordered to inactive file. [SB9 Detail]
Download: California-2019-SB9-Amended.html
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Amended
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August 03, 2020 |
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Amended
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July 27, 2020 |
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Amended
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Senate
April 03, 2019 |
CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
Senate Bill
No. 9
| Introduced by Senator Durazo (Principal coauthor: Assembly Member Carrillo) |
December 03, 2018 |
An act to amend Section 54237 of, and to add Sections 54237.9, 54237.10, and 54239.1 54239.1, and 54239.2 to, the Government Code, relating to surplus property.
LEGISLATIVE COUNSEL'S DIGEST
SB 9, as amended, Durazo.
Surplus residential property: sale procedures: generally and El Sereno neighborhood.
Existing law establishes priorities and procedures that any state agency disposing of surplus residential property is required to follow. Under existing law, specified single-family residences must first be offered to their former owners or present occupants, as specified. Existing law then requires the property to be offered to housing-related entities, as provided, prior to placing the property up for sale, subject to specified priorities. Existing law requires, if a property, that is not a historic home, is sold to a private housing-related entity or a housing-related public entity, that the entity develop the property as limited equity cooperative housing with first right of occupancy to present occupants, or use the property for low- and moderate-income rental or owner-occupied housing where the development of cooperative or cooperatives if not feasible.
This bill would remove the requirement for a private housing-related entity or housing-related public entity purchasing surplus residential property to develop the property as limited equity cooperative housing with first right of occupancy to present occupants. The bill would prohibit surplus residential property from being sold at less than the price paid by the Department of Transportation for original acquisition of the property. The bill would prohibit the adjustment of this original acquisition price for inflation. The bill would also establish new procedures for offering for sale surplus residential properties located within the El Sereno neighborhood in the City of Los Angeles after those properties are offered for sale to former owners and present occupants pursuant to existing law. The bill would require the Department of Transportation to offer to sell specified unimproved
properties at the original acquisition price paid by the department to a housing-related entity for affordable housing purposes, as provided.
This bill would express the Legislature’s intent to codify regulations in development for the Roberti Act. The bill would also make related findings and declarations.
This bill would make legislative findings and declarations as to the necessity of a special statute for the sale of surplus residential property located in the El Sereno neighborhood of the City of Los Angeles.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares all of the following:(a) The sale of property located within the State Route 710 corridor in the El Sereno neighborhood of the City of Los Angeles to a housing-related entity will promote the preservation and creation of affordable housing consistent with Section 54235 of the Government Code.
(b) Offering surplus residential properties to a housing-related entity at low cost will advance the public purpose of preserving affordable housing.
(c)The creation and preservation of property for park or open space purposes preserves views, appearance, light, air, and recreation for the surrounding community. Parks significantly improve the health, well-being, and environment of the surrounding community and, as such, serve an important public purpose.
(d)It is the intent of the Legislature that Sections 54239 and 54239.1 of the Government Code be self-executing and no regulations will be needed to implement those sections.
SEC. 2.
Section 54237 of the Government Code is amended to read:54237.
(a) Notwithstanding Section 11011.1, an agency of the state disposing of surplus residential property shall do so in accordance with the following priorities and procedures:(1) First, all single-family residences presently occupied by their former owners shall be offered to those former owners at the appraised fair market value.
(2) Second, all single-family residences shall be offered, pursuant to this article, to their present occupants who have occupied the property for two years or more and who are persons and families of low or moderate income.
(3) Third,
all single-family residences shall be offered, pursuant to this article, to their present occupants who have occupied the property for five years or more and whose household income does not exceed 150 percent of the area median income.
(4) Fourth, a single-family residence shall not be offered, pursuant to this article, to present occupants who are not the former owners of the property if the present occupants have had an ownership interest in real property in the last three years.
(b) Single-family residences offered to their present occupants pursuant to paragraphs (2) and (3) of subdivision (a) shall be offered to those present occupants at an affordable price. The price shall not be less than the price paid by the agency for original acquisition, unless the acquisition price was
greater than the current fair market value, and shall not be greater than fair market value. When a single-family residence is offered to present occupants at a price that is less than fair market value, the selling agency shall impose terms, conditions, and restrictions to ensure that the housing will remain available to persons and families of low or moderate income and households with incomes no greater than the incomes of the present occupants in proportion to the area median income. The Department of Housing and Community Development shall provide to the selling agency recommendations of standards and criteria for these prices, terms, conditions, and restrictions. The selling agency shall provide repairs required by lenders and government housing assistance programs, or, at the option of the agency, provide the present occupants with a replacement dwelling pursuant to Section 54237.5.
(c) If single-family residences are offered to their present occupants pursuant to paragraphs (2) and (3) of subdivision (a), the occupants shall certify their income and assets to the selling agency. When a single-family residence is offered to present occupants at a price that is less than fair market value, the selling agency may verify the certifications, in accordance with procedures used for verification of incomes of purchasers and occupants of housing financed by the California Housing Finance Agency and with regulations adopted for the verification of assets by the United States Department of Housing and Urban Development. The income and asset limitations and term of residency requirements of paragraphs (2) and (3) of subdivision (a) shall not apply to sales that are described as mitigation measures in an environmental study prepared
pursuant to the Public Resources Code, if the study was initiated before this measure was enacted.
(d) Except as provided under subdivision (g), all other
surplus residential properties and all properties described in paragraphs (1), (2), and (3) of subdivision (a) that are not purchased by the former owners or the present occupants shall be then offered as follows:
(1) Except as required by paragraph (2), the property shall be offered to a housing-related private or public entity at a reasonable price, which is best suited to economically feasible use of the property as decent, safe, and sanitary housing at affordable rents and affordable prices for persons and families of low or moderate income, on the condition that the purchasing entity shall cause the property to be rehabilitated and used as follows:
(A) If the housing-related entity is a public entity, the entity shall dedicate profits realized from a subsequent
sale, as specified in subdivision (b) of Section 54237.7, to the construction of affordable housing within Pasadena, South Pasadena, Alhambra, La Cañada Flintridge, and the 90032 postal ZIP Code.
(B) If the entity is a private housing-related entity or a housing-related public entity,
the purchasing entity shall cause the property to be used for low- and moderate-income rental or owner-occupied housing, with first right of occupancy to the present tenants. The price of the property in no case shall be less than the price paid by the entity for original acquisition unless the acquisition price was greater than current fair market value and shall not be greater than fair market value. Subject to the foregoing, it shall be set at the level necessary to provide housing at affordable rents and affordable prices for present tenants and persons and families of low or moderate income. When residential property is offered at a price that is less than fair market value, the selling agency shall impose terms, conditions, and restrictions as will ensure that the housing will remain available to persons and families of low or moderate income. The Department of Housing and
Community Development shall provide to the selling agency recommendations of standards and criteria for prices, terms, conditions, and restrictions.
(2) (A) If the property is a historic home, the property shall be offered first to a housing-related public entity subject to subparagraph (A) or (B) of paragraph (1) or to a nonprofit private entity dedicated to rehabilitating and maintaining the historic home for public and community access and use subject to subparagraph (B) of paragraph (1).
(B) For purposes of this subdivision, “historic home” means single-family surplus residential property that is listed on, or for which an application has been filed for listing on, at least one of the following by January 1, 2015:
(i) The California Register of Historical Resources, as established pursuant to Article 2 (commencing with Section 5020) of Chapter 1 of Division 5 of the Public Resources Code.
(ii) The National Register of Historic Places, as established pursuant to Chapter 3021 of Title 54 of the United States Code.
(iii) The National Register of Historic Places, as previously established pursuant to the federal National Historic Preservation Act (54 U.S.C. Sec. 300101 et seq.).
(e) Except as provided under subdivision (g), a surplus residential property not sold pursuant to subdivisions (a) to (d), inclusive, shall then be sold at fair market value, with priority given first to purchasers who are present tenants in good standing with
all rent obligations current and paid in full, second to former tenants who were in good standing at the time they vacated the premises, with priority given to the most recent tenants first, and then to purchasers who will be owner occupants. The selling agency may commence the sale of property that former tenants may possess a right to purchase as provided by this subdivision 30 days after the selling agency has done both of the following:
(1) Posted information regarding the sale under this subdivision on the selling agency’s internet website.
(2) Made a good faith effort to provide written notice, by first-class mail, to the last known address of each former tenant.
(f) (1) Tenants in good standing of
nonresidential properties shall be given priority to purchase, at fair market value, the property they rent, lease, or otherwise legally occupy.
(2) (A) A tenant in good standing of a nonresidential property shall be given priority to purchase, at the lesser of fair market value or value in use, if the tenant is a city or a nonprofit organization qualified as exempt under Section 501(c)(3) of the Internal Revenue Code.
(B) The Department of Transportation shall not sell a nonresidential property to a tenant described in subparagraph (A) at a value below the minimum sales price, as defined by Section 1476 of Title 21 of the California Code of Regulations as that regulation read on July 1, 2019.
(C) If a nonresidential property is offered at a price that is less than fair market value, the selling agency shall impose appropriate terms, conditions, and restrictions.
(D) As used in this paragraph, “value in use” means the value of a nonresidential property assuming a specific use, that may or may not be the property’s highest and best use on the effective date of the property’s appraisal.
(g) Subdivisions (d) and (e) shall not apply to properties offered for sale pursuant to Section 54239.1.
SEC. 3.
Section 54237.9 is added to the Government Code, to read:54237.9.
Notwithstanding any other provision in thisThe Legislature finds and declares that it is necessary to codify regulations that are currently in development for the Roberti Act.
SEC. 5.SEC. 4.
Section 54239.1 is added to the Government Code, immediately following Section 54238.9, to read:54239.1.
(a) Notwithstanding Sections 54235 through 54237.10 and Section 118 of the Streets and Highways Code, after surplus residential properties located within the El Sereno neighborhood in the City of Los Angeles, which is located in the 90032 postal ZIP Code, are offered for sale pursuant to subdivisions (a) to (c), inclusive, of Section 54237, these properties shall be offered to a housing-related entity as follows:(1) The sales price shall be the price paid by the Department of Transportation for original acquisition. The original acquisition price shall not be adjusted for inflation.
(2) Property sold
pursuant to this section shall be sold in the existing “as is” condition.
(3) For each property purchased under this section, the housing-related entity shall do all of the following:
(A) (i) Cause the property to be used for low- and moderate-income rental housing, with no subsequent sale or transfer allowed for at least 25 years. for a term of at least 55 years. The purchase and operation of the property shall be subject to a
covenant recorded against the property that requires the property to remain available and affordable for rental by lower income and moderate-income households, as defined by Sections 50079.5 and 50052.5 of the Health and Safety Code, respectively, for a term no shorter than 55 years.
(ii) In the event that the property is sold prior to the expiration of the covenant, the covenant shall remain in effect until the time at which it expires. In the event the housing-related entity is no longer able to provide that housing on the property, the housing-related entity shall transfer the title to the City of Los Angeles, which shall transfer the title and operations to a successor housing-related entity that will maintain the property and the operations in compliance with the covenant. Any housing-related entity purchaser shall comply with
monitoring requirements, if any, as determined by the Department of Transportation.
(B) Provide first right of occupancy to the present occupants. The rental amount shall be in accordance with income certification if the current occupants qualify as low or moderate income. If the current tenant’s income exceeds the limits for that level, the rent for those occupants shall be no less than their current rent, or adjusted no higher than current market rates for the area.
(C) Cause any additional new units added to the property to be used only for low- or moderate-income rental housing.
(D) Provide its present tenants the relocation assistance as required under subdivision (b) of Section 54238.3.
(b) A surplus residential property located in the City of Los Angeles that is not sold pursuant to subdivision (a) shall then be sold in accordance with the following priorities and procedures:
(1) First, the property shall be offered at fair market value to purchasers who are present occupants
tenants in good standing with all rent obligations current and paid in full. The selling agency may commence the sale of property, which former occupants may possess a right to purchase as provided by this paragraph, 30 days after the selling agency has done both of the following:
(A)Posted information regarding the sale under this subdivision on the selling agency’s internet website.
(B)Made a good faith effort to provide written notice, by first-class mail, to the last known address of each former tenant of the property.
(2) Second, the property shall then be sold at fair market value, with priority given first to purchasers who are former occupants tenants of the property who were in good standing at the time they vacated the premises. Priority shall be given to the most recent occupants tenants first. The selling agency may commence the sale of property pursuant to this paragraph 30 days after the selling agency has done both of the following:
(A) Posted
information regarding the sale under this subdivision on the selling agency’s internet website.
(B) Made a good faith effort to provide written notice, by first-class mail, to the last known address of each former tenant of the property.
(3) Third, the property shall be offered a second time to present tenants, pursuant to subdivision
(a). paragraph (1) of subdivision (b).
(4) Fourth, the property shall be sold at fair market value with priority given to purchasers who will be owner-occupants.
