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
begin delete code.end delete 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
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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, upon appropriation by the Legislature, makeend delete funds in this account begin delete availableend delete 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 begin delete code.end delete
(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
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begin deletemajority end delete.
Appropriation: begin deleteno 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:
6(1) First, all single-family residences presently occupied by
7their former owners shall be offered to those former owners at the
8appraised fair market value.
9(2) Second, all single-family residences shall be offered,
10pursuant to this article, to their present occupants who have
11occupied the property two years or more and who are persons and
12families of low or moderate income.
13(3) Third, all
single-family residences shall be offered, pursuant
14to this article, to their present occupants who have occupied the
15property five years or more and whose household income does not
16exceed 150 percent of the area median income.
17(4) Fourth, a single-family residence shall not be offered,
18pursuant to this article, to present occupants who are not the former
19owners of the property if the present occupants have had an
20ownership interest in real property in the last three years.
21(b) Single-family residences offered to their present occupants
22pursuant to paragraphs (2) and (3) of subdivision (a) shall be
23offered to those present occupants at an affordable price. The price
24shall not be less than the price paid by the agency for original
25acquisition, unless the acquisition price was greater than the current
26fair market value, and shall not be greater than fair market value.
27When a single-family residence is offered to present occupants at
28a price that is less than fair market value, the selling agency shall
29impose terms, conditions, and restrictions to ensure that the housing
30will remain available to persons and families of low or moderate
31income and households with incomes no greater than the incomes
32of the present occupants in proportion to the area median income.
33The Department of Housing and Community Development shall
34provide to the selling agency recommendations of standards and
35criteria for these prices, terms, conditions, and restrictions. The
36selling agency shall provide repairs required by lenders and
37government housing assistance programs, or, at the option of the
P4 1agency, provide the present occupants with a replacement dwelling
2pursuant to Section 54237.5.
3(c) If single-family residences are offered to their present
4occupants pursuant to paragraphs (2) and (3) of subdivision (a),
5the occupants shall certify their income and assets to the selling
6agency. When a single-family residence is offered to present
7occupants at a price that is less than fair market value, the selling
8agency may verify the certifications, in accordance with procedures
9utilized for verification of incomes of purchasers and occupants
10of housing financed by the California Housing Finance Agency
11and with regulations adopted for the verification of assets by the
12United States Department of Housing and Urban Development.
13The income and asset limitations and term of residency
14 requirements of paragraphs (2) and (3) of subdivision (a) shall not
15apply to sales that are described as mitigation measures in an
16environmental study prepared pursuant to the Public Resources
17Code, if the study was initiated before this measure was enacted.
18(d) All other surplus residential properties and all properties
19described in paragraphs (1), (2), and (3) of subdivision (a) that are
20not purchased by the former owners or the present occupants shall
21be then offered as follows:
22(1) Except as required by paragraph (2), the property shall be
23offered to a housing-related private or public entity at a reasonable
24price, which is best suited to economically feasible use of the
25property as decent, safe, and sanitary housing at affordable rents
26and affordable prices for persons and families of low or moderate
27income, on the condition that the purchasing entity shall cause the
28property to be rehabilitated and used as follows:
29(A) If the housing-related entity is a public entity, the entity
30shall dedicate profits realized from a subsequent sale, as specified
31in subdivision (b) of Section 54237.7, to the construction of
32affordable housing within Pasadena, South Pasadena, Alhambra,
33La Cañada Flintridge, and the 90032 postal ZIP
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34(B) If the entity is a private housing-related entity or a
35housing-related public entity, the entity shall cause the property
36to be developed as limited equity cooperative housing with first
37right of occupancy to present occupants, except that where the
38development of cooperative or cooperatives is not feasible, the
39purchasing entity shall cause the property to be used for low and
40moderate income rental or owner-occupied housing, with first right
P5 1of occupancy to the present tenants. The price of the property in
2no case shall be less than the price paid by the entity for original
3acquisition unless the acquisition price was greater than current
4fair market value and shall not be greater than fair market value.
5Subject to the foregoing, it shall be set at the level necessary to
6provide housing at affordable rents and affordable prices for present
7tenants and persons and families of low or moderate income. When
8residential property is offered at a price that is less than fair market
9value, the selling agency shall impose terms, conditions, and
10restrictions as will ensure that the housing will remain available
11to persons and families of low or moderate income. The
12Department of Housing and Community Development shall provide
13to the selling agency recommendations of standards and criteria
14for prices, terms, conditions, and restrictions.
15(2) (A) If the property is a historic home, the property shall be
16offered first to a housing-related public entity subject to
17subparagraph (A) or (B) of paragraph (1) or to a nonprofit private
18entity dedicated to rehabilitating and maintaining the historic home
19for public and community access and use subject to subparagraph
20(B) of paragraph (1).
21(B) For the purposes of this subdivision, “historic home” means
22single-family surplus residential property that is listed on, or for
23which an application has been filed for listing on, at least one of
24the following by January 1, 2015:
25(i) The California Register of Historical Resources, as
26established pursuant to Article 2 (commencing with Section 5020)
27of Chapter 1 of Division 5 of the Public Resources Code.
28(ii) The National Register of Historic Places, as established
29pursuant to Chapter 3021 of Title 54 of the United States Code.
30(iii) The National Register of Historic Places, as previously
31established pursuant to the National Historic Preservation Act (16
32U.S.C. Sec. 470 et seq.).
33(e) A surplus residential property not sold pursuant to
34subdivisions (a) to (d), inclusive, shall then be sold at fair market
35value, with priority given first to purchasers who are present tenants
36in good standing with all rent obligations current and paid in full,
37second to former tenants who were in good standing at the time
38they vacated the premises, with priority given to the most recent
39tenants first, and then to purchasers who will be owner occupants.
40The selling agency may commence the sale of property that former
P6 1tenants may possess a right to purchase as provided by this
2subdivision 30 days after the selling agency has done both of the
4(1) Posted information regarding the sale under this subdivision
5 on the selling agency’s Internet Web site.
6(2) Made a good faith effort to provide written notice, by
7first-class mail, to the last known address of each former tenant.
8(f) Tenants in good standing of nonresidential properties shall
9be given priority to purchase, at fair market value, the property
10they rent, lease, or otherwise legally occupy.
Section 54237.7 of the Government Code is amended
(a) Notwithstanding Section 183.1 of the Streets and
14Highways Code, the Department of Transportation shall deposit
15proceeds from the sale of surplus residential property from the
16department to a new owner pursuant to this article into the SR-710
17Rehabilitation Account, which is hereby created. Notwithstanding
18Section 13340, funds in the account are hereby continuously
19appropriated to the department without regard to fiscal years for
20the purpose of providing repairs required pursuant to subdivision
21(b) of Section 54237. The total funds maintained in the account
22shall not exceed five hundred thousand dollars ($500,000). Funds
23exceeding that amount, less any reimbursements due to the federal
24government, shall be transferred to the State Highway Account in
25the State Transportation Fund to be used for allocation by the
26California Transportation Commission (commission) exclusively
27to fund projects located in Pasadena, South Pasadena, Alhambra,
28La Cañada Flintridge, and the 90032 postal ZIP Code. Projects
29shall be selected and prioritized by the affected communities in
30consultation with the Los Angeles County Metropolitan
31Transportation Authority, pursuant to guidelines developed by the
32commission. The Los Angeles Metropolitan Transportation
33Authority shall submit a proposed program of projects and the
34commission shall have final authority to approve the projects.
35Eligible projects may include, but are not limited to: sound walls;
36transit and rail capital improvements; bikeways; pedestrian
37improvements; signal synchronization; left turn signals; and major
38street resurfacing, rehabilitation, and reconstruction. The funds
39shall not be used to advance or construct any proposed North State
40Route 710 tunnel. Any funds remaining in the SR-710
P7 1Rehabilitation Account on the date that final payment due for the
2last of the properties repaired has been made, less any
3reimbursements due to the federal government, shall be transferred
4to the State Highway Account in the State Transportation Fund,
5to be used exclusively for the purposes described in this section.
6(b) Notwithstanding any other law, the net proceeds from a
7subsequent market sale of surplus residential property sold pursuant
8to this article at an affordable or reasonable price, as specified in
9regulations adopted by the department, shall be deposited into the
10Affordable Housing Trust Account, which is hereby created within
11the Housing Finance
begin delete Fund. The moneys in this account shall, upon to the
12appropriation by the Legislature, be made availableend delete
14California Housing Finance Agency to carry out any activity
15authorized by Part 3 (commencing with Section 50900) of Division
1631 of the Health and Safety Code for the benefit of persons and
17families of low and moderate income residing exclusively in
18Pasadena, South Pasadena, Alhambra, La Cañada Flintridge, and
19the 90032 postal ZIP
begin delete code.end delete The priority for
20of proceeds from subsequent sales shall be established pursuant
21to regulations adopted by the department.
The Legislature finds and declares that a special law
23is necessary and that a general law cannot be made applicable
24within the meaning of Section 16 of Article IV of the California
25Constitution because of the unique circumstances relating to
26affordable housing and surplus properties in the State Route 710