SB 580, as amended, Liu. Surplus residential property: affordable housing: historic buildings.
(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 and rehabilitate surplus residential property within 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 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
begin delete would continuously appropriateend delete 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.
begin deleteyes end delete.
Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
Section 54237 of the Government Code is
2amended to read:
(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, the entity
22shall dedicate profits realized from a subsequent sale, as specified
23in subdivision (b) of Section 54237.7, to the construction of
24affordable housing within Pasadena, South Pasadena, Alhambra,
25La Cañada Flintridge, and the 90032 postal ZIP code.
26(B) If the entity is a private housing-related entity or a
27housing-related public entity, the entity shall cause the property
28to be developed as limited equity cooperative housing with first
29right of occupancy to present occupants, except that where the
30development of cooperative or cooperatives is not feasible, the
31purchasing entity shall cause the property to be used for low and
32moderate income rental or owner-occupied housing, with first right
33of occupancy to the present tenants. The price of the property in
34no case shall be less than the price paid by the entity for original
35acquisition unless the acquisition price was greater than current
36fair market value and shall not be greater than fair market value.
37Subject to the foregoing, it shall be set at the level necessary to
38provide housing at affordable rents and affordable prices for present
39tenants and persons and families of low or moderate income. When
40residential property is offered at a price that is less than fair market
P5 1value, the selling agency shall impose terms, conditions, and
2restrictions as will ensure that the housing will remain available
3to persons and families of low or moderate income. The
4Department of Housing and Community Development shall provide
5to the selling agency recommendations of standards and criteria
6for prices, terms, conditions, and restrictions.
7(2) (A) If the property is a historic home, the property shall be
8offered first to a housing-related public entity subject to
9subparagraph (A) or (B) of paragraph (1) or to a nonprofit private
10entity dedicated to rehabilitating and maintaining the historic home
11for public and community access and use subject to subparagraph
12(B) of paragraph (1).
13(B) For the purposes of this subdivision, “historic home” means
14single-family surplus residential property that is listed on, or for
15which an application has been filed for listing on, at least one of
16the following by January 1, 2015:
California Register of Historical Resources, as
18established pursuant to Article 2 (commencing with Section 5020)
19of Chapter 1 of Division 5 of the Public Resources Code.
20(ii) The National Register of Historic Places, as established
21pursuant to Chapter 3021 of Title 54 of the United States Code.
22(iii) The National Register of Historic Places, as previously
23established pursuant to the National Historic Preservation Act (16
24U.S.C. Sec. 470 et seq.).
25(e) A surplus residential property not sold pursuant to
26subdivisions (a) to (d), inclusive, shall then be sold at fair market
27value, with priority given first to purchasers who are present tenants
28in good standing with all rent obligations current and paid in full,
29second to former tenants who were in good standing at the time
30they vacated the premises, with priority given to the most recent
31tenants first, and then to purchasers who will be owner occupants.
32The selling agency may commence the sale of property that former
33tenants may possess a right to purchase as provided by this
34subdivision 30 days after the selling agency has done both of the
36(1) Posted information regarding the sale under this subdivision
37 on the selling agency’s Internet Web site.
38(2) Made a good faith effort to provide written notice, by
39first-class mail, to the last known address of each former tenant.
P6 1(f) Tenants in good standing of nonresidential properties shall
2be given priority to purchase, at fair market value, the property
3they rent, lease, or otherwise legally occupy.
Section 54237.7 of the Government Code is amended
(a) Notwithstanding Section 183.1 of the Streets and
7Highways Code, the Department of Transportation shall deposit
8proceeds from the sale of surplus residential property from the
9department to a new owner pursuant to this article into the SR-710
10Rehabilitation Account, which is hereby created. Notwithstanding
11Section 13340, funds in the account are hereby continuously
12appropriated to the department without regard to fiscal years for
13the purpose of providing repairs required pursuant to subdivision
14(b) of Section 54237. The total funds maintained in the account
15shall not exceed five hundred thousand dollars ($500,000). Funds
16exceeding that amount, less any reimbursements due to the federal
17government, shall be transferred to the State Highway Account in
18the State Transportation Fund to be used for allocation by the
19California Transportation Commission (commission) exclusively
20to fund projects located in Pasadena, South Pasadena, Alhambra,
21La Cañada Flintridge, and the 90032 postal ZIP Code. Projects
22shall be selected and prioritized by the affected communities in
23consultation with the Los Angeles County Metropolitan
24Transportation Authority, pursuant to guidelines developed by the
25commission. The Los Angeles Metropolitan Transportation
26Authority shall submit a proposed program of projects and the
27commission shall have final authority to approve the projects.
28Eligible projects may include, but are not limited to: sound walls;
29transit and rail capital improvements; bikeways; pedestrian
30improvements; signal synchronization; left turn signals; and major
31street resurfacing, rehabilitation, and reconstruction. The funds
32shall not be used to advance or construct any proposed North State
33Route 710 tunnel. Any funds remaining in the SR-710
34Rehabilitation Account on the date that final payment due for the
35last of the properties repaired has been made, less any
36reimbursements due to the federal government, shall be transferred
37to the State Highway Account in the State Transportation Fund,
38to be used exclusively for the purposes described in this section.
39(b) Notwithstanding any other law, the net proceeds from a
40subsequent market sale of surplus residential property sold pursuant
P7 1to this article at an affordable or reasonable price, as specified in
2regulations adopted by the department, shall be deposited into the
3Affordable Housing Trust Account, which is hereby created within
4the Housing Finance
begin delete Fund and, notwithstanding Section 13340, to the
5continuously appropriatedend delete
7California Housing Finance Agency to carry out any activity
8authorized by Part 3 (commencing with Section 50900) of Division
931 of the Health and Safety Code for the benefit of persons and
10families of low and moderate income residing exclusively in
11Pasadena, South Pasadena, Alhambra, La Cañada Flintridge, and
12the 90032 postal ZIP code. The priority for the distribution of
13proceeds from subsequent sales shall be established pursuant to
14regulations adopted by the department.
The Legislature finds and declares that a special law
16is necessary and that a general law cannot be made applicable
17within the meaning of Section 16 of Article IV of the California
18Constitution because of the unique circumstances relating to
19affordable housing and surplus properties in the State Route 710