BILL NUMBER: AB 2135 AMENDED
BILL TEXT
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 54223, 54225, 54226, and 54227 of ,
and to add Sections 54222.5 and 54233 to, the Government Code,
relating to surplus property. local
government.
LEGISLATIVE COUNSEL'S DIGEST
AB 2135, as amended, Ting. Local agencies: surplus land:
Surplus land: affordable housing.
(1) Existing law prescribes requirements for the disposal of
surplus land by a local agencies, which are
defined to include districts. agency, as defined.
Existing law requires an a local
agency disposing of surplus land to negotiate in good faith with
an entity providing notice that it desires
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,
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 property land for
specified purposes to specified entities , including
for , but not limited to, low- and
moderate-income housing, to provide for 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.
The
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. The bill would
require, if the disposed land is to be used for residential
development, that the sales contract or lease agreement provide that
not less than 25% of the units in the development have rents or sale
prices that are affordable for persons and families of low or
moderate income. The 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
nu mber 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. The bill would revise the priority
given to an entity proposing to use the site for low- and
moderate-income housing to give priority to the entity agreeing to
use the site for housing for which 100% of the units have rents or
sales prices that are affordable for low- and moderate-income
persons. The
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. 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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. 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.
SECTION 1. SEC. 2. 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. If the disposed land is to be used
for residential development, including residential development with
rents or sale prices that are affordable for persons or families of
low or moderate income, the sales contract or lease agreement shall
provide that not less than 25 percent of the total number of units in
the development have rents or sale prices that are affordable for
persons and families of low or moderate income.
article, except that Section 54233 shall apply.
SEC. 2. SEC. 3. 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. 3. SEC. 4. Section 54226 of the
Government Code is amended to read:
54226. Nothing in this 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. No provision of this article shall be applied
when it conflicts with any other provision of statutory law.
SEC. 4. SEC. 5. 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 for which 100
percent of the units are to have rents or sale prices that are
affordable for persons and families of low or moderate income, except
that first 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. 6. 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. 5. SEC. 7. 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.