BILL NUMBER: SB 580 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY SEPTEMBER 1, 2015
INTRODUCED BY Senator Liu
( Coauthor: Assembly Member
Holden )
FEBRUARY 26, 2015
An act to amend Section Sections
54237 and 54237.7 of the Government Code, relating to
surplus residential property. property, and
making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 580, as amended, Liu. Surplus residential property: affordable
housing: historic buildings.
Existing
(1) Existing 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 to
purchase, rehabilitate, and resell purchase and
rehabilitate surplus residential property within its
jurisdiction. Pasadena, South Pasadena, Alhambra, La
Cañada Flintridge, and the 90032 postal ZIP code. The local
housing authority would be required to dedicate any profits realized
from the sale a subsequent sale 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.
(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.
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.
(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.
Vote: majority. Appropriation: no yes
. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. 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 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 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
utilized 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) 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 may resell the property. The entity shall dedicate
profits realized from a sale pursuant to this subparagraph
subsequent sale, as specified in subdivision (b) of
Section 54237.7, to the construction of affordable housing
within its jurisdiction. 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 that does not use the property
as described in subparagraph (A), entity, the
entity shall cause the property to be developed as limited equity
cooperative housing with first right of occupancy to present
occupants, except that where the development of cooperative or
cooperatives is not feasible, 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) 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. use subject to
subparagraph (B) of paragraph (1).
(B) For the purposes of this paragraph,
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 National Historic Preservation Act (16
U.S.C. Sec. 470 et seq.).
(e) 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 Web site.
(2) Made a good faith effort to provide written notice, by
first-class mail, to the last known address of each former tenant.
(f) 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.
SEC. 2. Section 54237.7 of the
Government Code is amended to read:
54237.7. (a) Notwithstanding Section 183.1
of the Streets and Highways Code, the Department of Transportation
shall deposit proceeds from sales the sale of
surplus residential property from the department to a new owner
pursuant to this article into the SR-710 Rehabilitation
Account, which is hereby created. Notwithstanding Section 13340,
funds in the account are hereby continuously appropriated to the
department without regard to fiscal years for the purpose of
providing repairs required pursuant to subdivision (b) of Section
54237. The total funds maintained in the account shall not exceed
five hundred thousand dollars ($500,000). Funds exceeding that
amount, less any reimbursements due to the federal government, shall
be transferred to the State Highway Account in the State
Transportation Fund to be used for allocation by the California
Transportation Commission (commission) exclusively to fund projects
located in Pasadena, South Pasadena, Alhambra, La Cañada Flintridge,
and the 90032 postal ZIP Code. Projects shall be selected and
prioritized by the affected communities in consultation with the Los
Angeles County Metropolitan Transportation Authority, pursuant to
guidelines developed by the commission. The Los Angeles Metropolitan
Transportation Authority shall submit a proposed program of projects
and the commission shall have final authority to approve the
projects. Eligible projects may include, but are not limited to:
sound walls; transit and rail capital improvements; bikeways;
pedestrian improvements; signal synchronization; left turn signals;
and major street resurfacing, rehabilitation, and reconstruction. The
funds shall not be used to advance or construct any proposed North
State Route 710 tunnel. Any funds remaining in the SR-710
Rehabilitation Account on the date that final payment due for the
last of the properties repaired has been made, less any
reimbursements due to the federal government, shall be transferred to
the State Highway Account in the State Transportation Fund, to be
used exclusively for the purposes described in this section.
(b) Notwithstanding any other law, the net proceeds from a
subsequent market sale of surplus residential property sold pursuant
to this article at an affordable or reasonable price, as specified in
regulations adopted by the department, shall be deposited into the
Affordable Housing Trust Account, which is hereby created within the
Housing Finance Fund and, notwithstanding Section 13340, continuously
appropriated to the California Housing Finance Agency to carry out
any activity authorized by Part 3 (commencing with Section 50900) of
Division 31 of the Health and Safety Code for the benefit of persons
and families of low and moderate income residing exclusively in
Pasadena, South Pasadena, Alhambra, La Cañada Flintridge, and the
90032 postal ZIP code. The priority for the distribution of proceeds
from subsequent sales shall be established pursuant to regulations
adopted by the department.
SEC. 3. The Legislature finds and declares that a
special law is necessary and that a general law cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution because of the unique circumstances relating
to affordable housing and surplus properties in the State Route 710
corridor.