BILL NUMBER: AB 1309 CHAPTERED 09/29/03 CHAPTER 574 FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2003 APPROVED BY GOVERNOR SEPTEMBER 28, 2003 PASSED THE ASSEMBLY SEPTEMBER 2, 2003 PASSED THE SENATE AUGUST 27, 2003 AMENDED IN SENATE AUGUST 19, 2003 AMENDED IN SENATE JULY 16, 2003 AMENDED IN SENATE JULY 3, 2003 AMENDED IN ASSEMBLY JUNE 2, 2003 AMENDED IN ASSEMBLY MAY 1, 2003 AMENDED IN ASSEMBLY APRIL 24, 2003 INTRODUCED BY Assembly Member Goldberg FEBRUARY 21, 2003 An act to add Article 9.5 (commencing with Section 35277) to Chapter 2 of Part 21 of the Education Code, relating to school facilities. LEGISLATIVE COUNSEL'S DIGEST AB 1309, Goldberg. School facilities: displaced residential development. Existing law authorizes the governing board of a school district to acquire any property necessary to carry out any of the powers and functions of the board. This bill would authorize the local governing agency, as defined, to acquire property to replace existing dwelling units displaced by school construction if certain conditions are met and would require that displaced persons be given a right of first refusal to purchase or rent the replacement dwelling units. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) Many cities in California face severe housing shortages. (b) Residents of these cities are often unable to find affordable housing, and must pay far more than they can afford for scarce and often substandard housing. (c) School construction projects in crowded urban areas often result in a loss of affordable housing units. (d) Creating affordable replacement housing in crowded urban areas impacted by new school construction is a compelling community need. (e) To the extent possible, school districts and local governments should work together to coordinate and facilitate the construction of replacement housing when residents are displaced. (f) To the extent possible, the replacement housing should be built in the residents' existing neighborhoods. (g) The state should facilitate and encourage collaboration between school districts and local governments. SEC. 2. Article 9.5 (commencing with Section 35277) is added to Chapter 2 of Part 21 of the Education Code, to read: Article 9.5. Schoolsite Replacement Housing 35277. For purposes of this article the following terms have the following meanings: (a) "Affordable housing cost" has the same meaning as set forth in Chapter 2 (commencing with Section 50050) of Part 1 of Division 31 of the Health and Safety Code as applied to persons and families of low or moderate income. (b) "Affordable rent" has the same meaning as set forth in Chapter 2 (commencing with Section 50050) of Part 1 of Division 31 of the Health and Safety Code as applied to persons and families of low or moderate income. (c) "Extremely low income households" has the same meaning as set forth in Section 50106 of the Health and Safety Code. (d) "Local governing agency" means a city in which a new schoolsite is located, or if a new schoolsite is located in an unincorporated area, the county in which the new schoolsite is located. (e) "New schoolsite" means real property acquired by a school district on and after January 1, 2003, for construction of a new schoolsite or for expansion of an existing schoolsite (f) "New schoolsite replacement housing" means housing to replace the residential dwelling units demolished or to be demolished in connection with a new schoolsite. (g) "Persons and families of low income" has the same meaning as set forth in Section 50093 of the Health and Safety Code. (h) "Persons and families of low or moderate income" has the same meaning as set forth in Section 50093 of the Health and Safety Code. (i) "Very low income households" has the same meaning as set forth in Section 50105 of the Health and Safety Code. (j) "Vicinity of a new schoolsite" means the area within the census tract in which a new schoolsite is located and the areas within the immediately adjacent census tracts. 35277.5. For purposes of this article, an extreme shortage of affordable housing exists if any of the following conditions exist: (a) The vacancy rate for rental housing in the jurisdiction in which the new schoolsite is located is 5 percent or lower. (b) The median rent in the Zip Code where the new replacement housing is located is more than 30 percent of the median income of the households displaced by the school construction. (c) The occupancy rate for 10 percent or more of the dwelling units within the vicinity of the new schoolsite equals or exceeds 1.5 persons per room, excluding bathrooms, hallways, and porches. 35278. (a) If a school district has acquired a new schoolsite containing residential dwelling units, the local governing agency may, consistent with this article, acquire real property for the purpose of new schoolsite replacement housing and utilize or convey the property according to this article, if all of the following conditions are met: (1) The local governing agency has determined that an extreme shortage of affordable housing exists in the vicinity of the new schoolsite. (2) The real property to be used for replacement housing is acquired by the local governing agency in the vicinity of a new schoolsite, or in an area designated in the local governing agency's replacement housing plan adopted pursuant to paragraph (1) of subdivision (e), within two years of the school district's acquisition of a possessory right to the new schoolsite. (3) The combined area of the real property to be used for replacement housing acquired by the local governing agency pursuant to this article does not include any portion of the new schoolsite and does not, in acreage, exceed 150 percent of the area acquired by the school district for the new schoolsite. (b) A local governing agency may rehabilitate, develop, or construct residential facilities on the property for the purpose of providing new schoolsite replacement housing as set forth in this article. (c) Notwithstanding Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of the Government Code or any other provision of law, a local governing agency that has acquired real property for new schoolsite replacement housing pursuant to this article may convey the property to an affiliated public agency for the purpose of providing new schoolsite replacement housing. An affiliated public agency that has acquired real property pursuant to this section may rehabilitate, develop, or construct residential facilities on the property for the purpose of providing new schoolsite replacement housing in compliance with this article. (d) Notwithstanding Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of the Government Code or any other provision of law, a local governing agency, or an affiliated public agency, that has acquired real property for new schoolsite replacement housing pursuant to this article, may sell, lease for no more than 99 years, jointly develop, exchange, subdivide, transfer, assign, pledge, encumber by mortgage, deed of trust, or otherwise, or otherwise dispose of the real property or any interest in that property, or any portion thereof, for the purpose of providing new schoolsite replacement housing through the rehabilitation, development, or construction of residential facilities or combined residential and commercial facilities on that property. (e) (1) Any disposition of real property, pursuant to subdivision (d), acquired for new schoolsite replacement housing pursuant to this article shall be in furtherance of a replacement housing plan. The local governing agency shall adopt a replacement housing plan for disposition of real property pursuant to this article, which shall meet all of the following requirements: (A) The replacement housing plan shall include all of the following: (i) A statement of the general location of housing to be developed pursuant to this section. (ii) A description of the means of financing the development. (iii) A finding that the actions to be taken pursuant to the plan do not require approval of the voters pursuant to Article XXXIV of the California Constitution, or that the approval has been or will be obtained. (iv) A specification of the number of dwelling units housing persons and families of low income and persons and families of moderate income, respectively, that are planned for construction or rehabilitation. (v) Provisions to ensure that persons displaced by the acquisition of a new schoolsite, and the acquisition of the new schoolsite replacement housing property pursuant to this article, shall have a right of first refusal for the purchase or rental of dwelling units developed in the replacement housing. (vi) A description of any facilities for commercial use to be constructed in combination with the replacement housing. (B) The number of dwelling units to be developed on the combined area of real property acquired pursuant to this article will be equal to a prescribed percentage, as determined by the local governing agency, but in no event less than the sum of both of the following: (i) Seventy-five percent of the total number of dwelling units demolished or to be demolished in connection with construction or expansion of school facilities on the new schoolsite. (ii) The total number of dwelling units on the new schoolsite replacement housing property to be acquired pursuant to this article. (C) Unless the local governing agency prescribes a greater number pursuant to subparagraph (D), the number of dwelling units developed on the property acquired for new schoolsite replacement housing pursuant to this article that are available at affordable housing costs or affordable rents shall be greater than, or equal to, the lesser of either of the following: (i) A number equal to 50 percent of the dwelling units developed on the property acquired for new schoolsite replacement housing pursuant to this article. (ii) The number of households of persons and families of low, or moderate, income displaced by the acquisition of the new schoolsite property and by the acquisition of the property for new schoolsite replacement housing pursuant to this article. (D) A local governing agency may require that all or any portion of the dwelling units, in addition to those required under subparagraph (C), be available at affordable housing cost or affordable rent to persons and families in lower income categories, including, persons and families of low income, very low income, or extremely low, income. This section does not prohibit a local governing agency from participating financially or otherwise to enable any housing developed pursuant to this article to serve households of lower income if the need for that housing is identified in, and consistent with, the replacement housing plan. (2) For a reasonable period of time prior to adopting the replacement housing plan, the agency shall make available a draft of the proposed plan for review and comment by public agencies and the general public. 35278.5. This article does not require a local governing agency to acquire real property, develop replacement housing, or perform any other act pursuant to this article. A local governing agency may, at its option, take action pursuant to this article.