Amended in Assembly September 1, 2015

Senate BillNo. 580


Introduced by Senator Liu

begin insert

(Coauthor: Assembly Member Holden)

end insert

February 26, 2015


An act to amendbegin delete Sectionend deletebegin insert Sectionsend insert 54237begin insert and 54237.7end insert of the Government Code, relating to surplus residentialbegin delete property.end deletebegin insert property, and making an appropriation therefor.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 580, as amended, Liu. Surplus residential property: affordable housing: historic buildings.

begin delete

Existing

end delete

begin insert(1)end insertbegin insertend insertbegin insertExistingend insert law declares the intent of the Legislature to preserve, upgrade, and expand the supply of housing to persons and families of low or moderate income, through the sale of specified surplus residential property owned by public agencies. Existing law establishes priorities and procedures that any state agency disposing of that 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. If the property is not sold to a former owner or present occupant, existing law requires that the property be offered to a housing-related private or public entity at a reasonable price for either limited equity cooperative housing or low and moderate income rental or owner-occupied housing, as specified.

This bill would authorize a local housing authority tobegin delete purchase, rehabilitate, and resellend deletebegin insert purchase and rehabilitateend insert surplus residential property withinbegin delete its jurisdiction.end deletebegin insert Pasadena, South Pasadena, Alhambra, La Cañada Flintridge, and the 90032 postal ZIP code.end insert The local housing authority would be required to dedicate any profits realized frombegin delete the saleend deletebegin insert a subsequent saleend insert to the construction of affordable housing. The bill would also require that, prior to offering the property to a housing-related private or public entity as specified above, that property that is a historic home, as defined, be first offered to a housing-related public entity or a nonprofit private entity dedicated to rehabilitating and maintaining the historic home for public and community access and use.

begin insert

(2) Existing law requires the Department of Transportation to deposit proceeds from sales of surplus residential property into the SR-710 Rehabilitation Account, a continuously appropriated fund, to be distributed, as specified, exclusively to fund projects located in Pasadena, South Pasadena, Alhambra, La Cañada Flintridge, and the 90032 postal ZIP code.

end insert
begin insert

This bill would specifically require the department to deposit proceeds from the sale of surplus residential property from the department to a new owner in the SR-710 Rehabilitation Account. This bill would establish the Affordable Housing Trust Account within the Housing Finance Fund and require the net proceeds from a subsequent market sale of surplus residential property sold pursuant to these provisions at an affordable or reasonable price, as specified, be deposited in this account. The bill would continuously appropriate funds in this account to the California Housing Finance Agency to carry out specified activities for the benefit persons residing exclusively within Pasadena, South Pasadena, Alhambra, La Cañada Flintridge, and the 90032 postal ZIP code.

end insert
begin insert

(3) This bill would make legislative findings and declarations as to the necessity of a special statute for Pasadena, South Pasadena, Alhambra, La Cañada Flintridge, and the 90032 postal ZIP code.

end insert

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 54237 of the Government Code is
2amended to read:

3

54237.  

(a) Notwithstanding Section 11011.1, an agency of the
4state disposing of surplus residential property shall do so in
5accordance with the following priorities and procedures:

P3    1(1) First, all single-family residences presently occupied by
2their former owners shall be offered to those former owners at the
3appraised fair market value.

4(2) Second, all single-family residences shall be offered,
5pursuant to this article, to their present occupants who have
6occupied the property two years or more and who are persons and
7families of low or moderate income.

8(3) Third, all single-family residences shall be offered, pursuant
9to this article, to their present occupants who have occupied the
10property five years or more and whose household income does not
11exceed 150 percent of the area median income.

12(4) Fourth, a single-family residence shall not be offered,
13pursuant to this article, to present occupants who are not the former
14owners of the property if the present occupants have had an
15ownership interest in real property in the last three years.

16(b) Single-family residences offered to their present occupants
17pursuant to paragraphs (2) and (3) of subdivision (a) shall be
18offered to those present occupants at an affordable price. The price
19shall not be less than the price paid by the agency for original
20acquisition, unless the acquisition price was greater than the current
21fair market value, and shall not be greater than fair market value.
22When a single-family residence is offered to present occupants at
23a price that is less than fair market value, the selling agency shall
24impose terms, conditions, and restrictions to ensure that the housing
25will remain available to persons and families of low or moderate
26income and households with incomes no greater than the incomes
27of the present occupants in proportion to the area median income.
28The Department of Housing and Community Development shall
29provide to the selling agency recommendations of standards and
30criteria for these prices, terms, conditions, and restrictions. The
31selling agency shall provide repairs required by lenders and
32government housing assistance programs, or, at the option of the
33agency, provide the present occupants with a replacement dwelling
34pursuant to Section 54237.5.

35(c) If single-family residences are offered to their present
36occupants pursuant to paragraphs (2) and (3) of subdivision (a),
37the occupants shall certify their income and assets to the selling
38agency. When a single-family residence is offered to present
39occupants at a price that is less than fair market value, the selling
40agency may verify the certifications, in accordance with procedures
P4    1utilized for verification of incomes of purchasers and occupants
2of housing financed by the California Housing Finance Agency
3and with regulations adopted for the verification of assets by the
4United States Department of Housing and Urban Development.
5The income and asset limitations and term of residency
6 requirements of paragraphs (2) and (3) of subdivision (a) shall not
7apply to sales that are described as mitigation measures in an
8environmental study prepared pursuant to the Public Resources
9Code, if the study was initiated before this measure was enacted.

10(d) All other surplus residential properties and all properties
11described in paragraphs (1), (2), and (3) of subdivision (a) that are
12not purchased by the former owners or the present occupants shall
13be then offered as follows:

14(1) Except as required by paragraph (2), the property shall be
15offered to a housing-related private or public entity at a reasonable
16price, which is best suited to economically feasible use of the
17property as decent, safe, and sanitary housing at affordable rents
18and affordable prices for persons and families of low or moderate
19income, on the condition that the purchasing entity shall cause the
20property to be rehabilitated and used as follows:

21(A) If the housing-related entity is a public entity, thebegin delete entity
22may resell the property. Theend delete
entity shall dedicate profits realized
23from abegin delete sale pursuant to this subparagraphend deletebegin insert subsequent sale, as
24specified in subdivision (b) of Section 54237.7,end insert
to the construction
25of affordable housing withinbegin delete its jurisdiction.end deletebegin insert Pasadena, South
26Pasadena, Alhambra, La Cañada Flintridge, and the 90032 postal
27ZIP code.end insert

28(B) If the entity is a private housing-related entity or a
29housing-related publicbegin delete entity that does not use the property as
30described in subparagraph (A),end delete
begin insert entity,end insert the entity shall cause the
31property to be developed as limited equity cooperative housing
32with first right of occupancy to present occupants, except that
33where the development of cooperative or cooperatives is not
34feasible, the purchasing entity shall cause the property to be used
35for low and moderate income rental or owner-occupied housing,
36with first right of occupancy to the present tenants. The price of
37the property in no case shall be less than the price paid by the entity
38for original acquisition unless the acquisition price was greater
39than current fair market value and shall not be greater than fair
40market value. Subject to the foregoing, it shall be set at the level
P5    1necessary to provide housing at affordable rents and affordable
2prices for present tenants and persons and families of low or
3moderate income. When residential property is offered at a price
4that is less than fair market value, the selling agency shall impose
5terms, conditions, and restrictions as will ensure that the housing
6will remain available to persons and families of low or moderate
7income. The Department of Housing and Community Development
8shall provide to the selling agency recommendations of standards
9and criteria for prices, terms, conditions, and restrictions.

10(2) (A) If the property is a historic home, the property shall be
11offered first to a housing-related public entity subject to
12begin delete subparagraph (A)end deletebegin insert subparagraph (A) or (B)end insert of paragraph (1) or to
13a nonprofit private entity dedicated to rehabilitating and
14maintaining the historic home for public and community access
15andbegin delete use.end deletebegin insert use subject to subparagraph (B) of paragraph (1).end insert

16(B) For the purposes of thisbegin delete paragraph,end deletebegin insert subdivision,end insert “historic
17home” meansbegin insert single-familyend insert surplus residential property that is
18listed on, or for which an application has been filed for listing on,
19at least one of the following by January 1, 2015:

20(i) The California Register of Historical Resources, as
21established pursuant to Article 2 (commencing with Section 5020)
22of Chapter 1 of Division 5 of the Public Resources Code.

23(ii) The National Register of Historic Places, as established
24pursuant to Chapter 3021 of Title 54 of the United States Code.

25(iii) The National Register of Historic Places, as previously
26established pursuant to the National Historic Preservation Act (16
27U.S.C. Sec. 470 et seq.).

28(e) A surplus residential property not sold pursuant to
29subdivisions (a) to (d), inclusive, shall then be sold at fair market
30value, with priority given first to purchasers who are present tenants
31in good standing with all rent obligations current and paid in full,
32second to former tenants who were in good standing at the time
33they vacated the premises, with priority given to the most recent
34tenants first, and then to purchasers who will be owner occupants.
35The selling agency may commence the sale of property that former
36tenants may possess a right to purchase as provided by this
37subdivision 30 days after the selling agency has done both of the
38following:

39(1) Posted information regarding the sale under this subdivision
40 on the selling agency’s Internet Web site.

P6    1(2) Made a good faith effort to provide written notice, by
2first-class mail, to the last known address of each former tenant.

3(f) Tenants in good standing of nonresidential properties shall
4be given priority to purchase, at fair market value, the property
5they rent, lease, or otherwise legally occupy.

6begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 54237.7 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
7to read:end insert

8

54237.7.  

begin insert(a)end insertbegin insertend insert Notwithstanding Section 183.1 of the Streets
9and Highways Code, the Department of Transportation shall
10deposit proceeds frombegin delete salesend deletebegin insert the sale of surplus residential property
11from the department to a new ownerend insert
pursuant to this article into
12the SR-710 Rehabilitation Account, which is hereby created.
13Notwithstanding Section 13340, funds in the account are hereby
14continuously appropriated to the department without regard to
15 fiscal years for the purpose of providing repairs required pursuant
16to subdivision (b) of Section 54237. The total funds maintained
17in the account shall not exceed five hundred thousand dollars
18($500,000). Funds exceeding that amount, less any reimbursements
19due to the federal government, shall be transferred to the State
20Highway Account in the State Transportation Fund to be used for
21allocation by the California Transportation Commission
22(commission) exclusively to fund projects located in Pasadena,
23South Pasadena, Alhambra, La Cañada Flintridge, and the 90032
24postal ZIP Code. Projects shall be selected and prioritized by the
25affected communities in consultation with the Los Angeles County
26Metropolitan Transportation Authority, pursuant to guidelines
27developed by the commission. The Los Angeles Metropolitan
28Transportation Authority shall submit a proposed program of
29projects and the commission shall have final authority to approve
30the projects. Eligible projects may include, but are not limited to:
31sound walls; transit and rail capital improvements; bikeways;
32pedestrian improvements; signal synchronization; left turn signals;
33and major street resurfacing, rehabilitation, and reconstruction.
34The funds shall not be used to advance or construct any proposed
35North State Route 710 tunnel. Any funds remaining in the SR-710
36Rehabilitation Account on the date that final payment due for the
37last of the properties repaired has been made, less any
38reimbursements due to the federal government, shall be transferred
39to the State Highway Account in the State Transportation Fund,
40to be used exclusively for the purposes described in this section.

begin insert

P7    1(b) Notwithstanding any other law, the net proceeds from a
2subsequent market sale of surplus residential property sold
3pursuant to this article at an affordable or reasonable price, as
4specified in regulations adopted by the department, shall be
5deposited into the Affordable Housing Trust Account, which is
6hereby created within the Housing Finance Fund and,
7notwithstanding Section 13340, continuously appropriated to the
8California Housing Finance Agency to carry out any activity
9authorized by Part 3 (commencing with Section 50900) of Division
1031 of the Health and Safety Code for the benefit of persons and
11families of low and moderate income residing exclusively in
12Pasadena, South Pasadena, Alhambra, La Cañada Flintridge, and
13the 90032 postal ZIP code. The priority for the distribution of
14proceeds from subsequent sales shall be established pursuant to
15regulations adopted by the department.

end insert
16begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

The Legislature finds and declares that a special law
17is necessary and that a general law cannot be made applicable
18within the meaning of Section 16 of Article IV of the California
19Constitution because of the unique circumstances relating to
20affordable housing and surplus properties in the State Route 710
21corridor.

end insert


O

    98