Bill Text: CA SB9 | 2019-2020 | Regular Session | Amended
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
Amended
IN
Assembly
August 25, 2020 |
Amended
IN
Assembly
August 03, 2020 |
Amended
IN
Assembly
July 27, 2020 |
Amended
IN
Senate
April 03, 2019 |
Introduced by Senator Durazo (Principal coauthor: Assembly Member Carrillo) |
December 03, 2018 |
LEGISLATIVE COUNSEL'S DIGEST
Existing
This
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:SEC. 2.
Section 54221 of the Government Code is amended to read:54221.
As used in this article, the following definitions shall apply:(G)
(H)
(I)
(J)
(K)
SEC. 3.
Section 54234 of the Government Code is amended to read:54234.
(a) (1) If a local agency, as of September 30, 2019, has entered into an exclusive negotiating agreement or legally binding agreement to dispose of property, the provisions of this article as it existed on December 31, 2019, shall apply, without regard to the changes made to this article by(2)
SEC. 2.SEC. 4.
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:(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
(B)
(i)
(ii)
(iii)
(e)Except as provided under subdivision (g), a
(f)
(g)Subdivisions (d) and (e) shall not apply to properties offered for sale pursuant to Section 54239.1.
SEC. 3.SEC. 5.
Section 54237.9 is added to the Government Code, to read:54237.9.
Notwithstanding any other provision in this article, the price of property sold pursuant to this 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.(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 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 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
tenants in good standing with all rent obligations current and paid in full.
(2)Second, the property shall then be sold at fair market value, with priority given first to purchasers who are former tenants of the property who were in good standing at the time they vacated the premises. Priority shall be given to the most recent 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 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.