BILL NUMBER: SB 680 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 30, 2016
AMENDED IN ASSEMBLY JUNE 9, 2016
AMENDED IN ASSEMBLY JUNE 8, 2016
AMENDED IN SENATE JANUARY 26, 2016
AMENDED IN SENATE MAY 14, 2015
INTRODUCED BY Senator Wieckowski
(Coauthor: Senator Beall)
FEBRUARY 27, 2015
An act relating to state real property, and making an
appropriation therefor. therefor,
and declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 680, as amended, Wieckowski. State real property: surplus: City
of Santa Clara.
Existing law provides that the Director of General Services may
acquire and dispose of surplus state real property where that
property is not needed by another state agency and the Legislature
has authorized disposal of the property. Existing law also specifies
the manner in which the Department of General Services is to dispose
of surplus state real property. Existing law authorizes the director,
subject to certain conditions, to sell, lease, or exchange a
specified parcel of real property in the City of Santa Clara upon
terms and conditions and subject to reservations and exceptions that
the director determines are in the best interests of the state.
This bill would authorize the director to modify the existing
terms and conditions of the transfer to the Housing Authority of the
City of Santa Clara of a specified parcel of real property within the
City of Santa Clara to allow for residential development of that
parcel, as provided. The bill would, as a condition of modifying the
terms and conditions of the transfer, require the City of Santa Clara
to indemnify, defend, and hold harmless the state from any and all
claims, damages, or liabilities arising out of, in connection with,
or directly or indirectly resulting from the exercise of the rights
authorized by these provisions by the City of Santa Clara, the
Housing Authority of the City of Santa Clara, and any subsequent
purchaser or transferee of the property. The bill would also require
the state to select counsel in any action arising out of, in
connection with, or directly or indirectly resulting from the
exercise of these rights.
The California Constitution requires that the proceeds from the
sale of surplus state property be used to pay the principal and
interest on bonds issued pursuant to the Economic Recovery Bond Act
until the principal and interest on those bonds are fully paid, after
which these proceeds are required to be deposited into the Special
Fund for Economic Uncertainties, a continuously appropriated fund.
This bill would, if the property described above is used for a
residential development, require the department to determine the
difference between the actual price paid by the local agency for the
property and the fair market value of the property and require the
Housing Authority of the City of Santa Clara to pay that difference
to the department. By increasing the amount transferred into
continuously appropriated funds, this bill would make an
appropriation.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Director of General Services may modify the
existing terms and conditions, including, but not limited to, the
existing purchase and sale agreement, as amended, the grant deed,
the commencement date for development, and any other
applicable transaction documents, of the transfer to the Housing
Authority of the City of Santa Clara of an approximately six-acre
parcel of real property within the City of Santa Clara, Assessor's
Parcel Number 303-17-053, for the purposes set forth in subdivision
(b). The director is authorized to make any modifications pursuant to
this subdivision on terms and conditions and subject to any
reservations and exceptions that the director determines are in the
best interests of the state.
(b) (1) The property described in subdivision (a) may be used for
a residential development including both residential units that are
affordable to persons of extremely low, very low, or low or moderate
income and residential units at market rate. As a result of any
proposed modification to the original entitlements, the Department of
General Services shall determine the difference between the actual
price paid by the local agency for the property and the fair market
value of the property, which shall be paid by the Housing Authority
of the City of Santa Clara to the department.
(2) The City of Santa Clara may, subject to the consent of the
other parties to the agreement, amend the development agreement
applicable to the property described in subdivision (a) in order to
remove that property from the agreement.
SEC. 2. As a condition of modifying the terms and conditions as
provided in subdivision (a) of Section 1 of this act, the City of
Santa Clara shall indemnify, defend, and hold harmless the state from
any and all claims, damages, or liabilities arising out of, in
connection with, or directly or indirectly resulting from the
exercise of the rights authorized by this act by the City of Santa
Clara, the Housing Authority of the City of Santa Clara, and any
subsequent purchaser or transferee. In any action arising out of, in
connection with, or directly or indirectly resulting from the
exercise of these rights, the state shall select counsel to defend
the state.
SEC. 3. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
The San Francisco Bay area is experiencing an historic affordable
housing crisis. Additional housing units are urgently needed to
improve the quality of life for all San Francisco Bay area residents.
A development project to build additional affordable housing units
that will benefit the communities in the City of Santa Clara,
especially low-income persons, senior citizens, veterans, and persons
with disabilities, is urgently needed.