BILL ANALYSIS �
AB 2135
Page 1
Date of Hearing: April 9, 2014
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Ed Chau, Chair
AB 2135 (Ting) - As Amended: March 28, 2014
SUBJECT : Local agencies: surplus land: affordable housing
SUMMARY : Amends the procedure for the disposal of surplus
land by local agencies and expands the provisions relating to
the prioritization of low- and moderate-income housing
development if the surplus land will be used for residential
development. Specifically, this bill :
1)Clarifies that a transportation district is considered a
"local agency" under the statutory definition.
2)Removes from the list of properties not considered "exempt
surplus land" any land within 1,000 yards of any property that
has been listed on, or determined by the State Office of
Historic Preservation to be eligible for, the National
Register of Historic Places.
3)Increases the time a local agency has to conduct good faith
negotiations with certain types of entities desiring to
purchase or lease surplus land from 60 days to 90 days.
4)Provides that, in the event that any local agency disposing of
surplus land receives offers for the purchase or lease of that
land from more than one notified entity, the local agency must
give first priority to the entity that agrees to use the site
for housing for which 100% of the units are affordable for
persons and families of low- or moderate-income, subject to
exceptions relating to land used or designated for park and
recreational use.
5)Provides that, if the disposed land will be used for
residential development, at least 25% of the total number of
units in the development must have rents or sale prices that
are affordable for persons and families of low- or
moderate-income.
6)Provides that the payment period for surplus land sold for
housing for person and families of low- and moderate-income
may exceed 20 years, but the payment period shall not exceed
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the term that the land is required to be used for low- or
moderate-income housing.
7)Clarifies that a local agency may sell or lease surplus land
at less than fair market value.
8)Provides that, if the Commission on State Mandates determines
that AB 2135 contains costs mandated by the state,
reimbursement to local agencies and school districts for those
costs shall be made pursuant to Part 7 (commencing with
Section 17500) of Division 4 of Title 2 of the Government
Code.
EXISTING LAW:
1)Defines "local agency" for purposes of the surplus land
disposal procedures as every city, whether organized under
general law or by charter, county, city and county, and
district, including school districts of any kind or class,
empowered to acquire and hold real property.
2)Requires that, on or before December 31 of each year, each
local agency must make an inventory of all lands held, owned
or controlled by it or any of its departments, agencies, or
authorities to determine what land, including air rights, if
any, is in excess of its foreseeable needs.
3)Requires that a description of each parcel found to be in
excess of a local agency's needs shall be made a matter of
public record. Any citizen, limited dividend corporation,
housing corporation or nonprofit corporation, shall upon
request be provided with a list of these parcels without
charge.
4)Defines "surplus land" as land owned by any local agency that
is determined to be no longer necessary for the agency's use,
except property being held by the agency for the purpose of
exchange or property meeting other exemptions.
5)Requires that a local agency must provide a written offer to
sell or lease surplus land for the purpose of developing low-
or moderate-income housing to "housing sponsors" upon written
request, as well as any local public entity within the
jurisdiction where the surplus land is located.
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6)Provides that a local agency wishing to dispose of surplus
land must also provide a written offer to additional entities,
depending on the type of proposed usage, for park and
recreational purposes, school facilities construction or use
by a school district for open space purposes, enterprise
purposes, and infill opportunity zones or transit village
plans.
7)Provides that, if a notified entity desires to purchase or
lease the surplus land, it must notify the local agency of its
intent within 60 days after receipt of the agency's intent to
sell or lease the land.
8)Provides that, if a local agency receives notice from an
entity provided with a written offer desiring to purchase or
lease the land, the local agency and the entity must enter
into good faith negotiations. If the price or terms cannot be
agreed upon after a period of not less than 60 days, the land
may be disposed of without further regard to the disposal
procedures.
9)Provides that any public agency selling surplus land to a
notified entity for park or recreation purposes, for
open-space purposes, for school purposes, or for low- and
moderate- income housing purposes may provide for a payment
period of up to 20 years in any contract of sale or sale by
trust deed.
10)Provides that nothing in the disposal procedure limits the
power of any local agency to sell or lease surplus land at
fair market value or at less than fair market value, and
nothing shall be interpreted to empower any local agency to
sell or lease surplus land at less than fair market value.
11)Provides that, with respect to any offer to purchase or lease
from a notified entity for the purpose of low- or
moderate-income housing development, priority shall be given
to development of the land for affordable housing for lower
income, elderly, or disabled persons or households, and other
lower-income households.
12)Specifies that, in the event that a local agency receives
multiple offers for the purchase or lease of surplus land from
more than one of the notified entities, the local agency shall
give first priority to the entity that agrees to use the site
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for housing for persons and families of low- or
moderate-income, except that first priority shall be given to
an entity that agrees to use the site for park or recreational
purposes if the land being offered is already being used and
will continue to be used for park or recreational purposes, or
if the land is designated for park and recreational use in the
local general plan and will be developed for that purpose.
FISCAL EFFECT : Unknown
COMMENTS :
Background:
Local agencies are required to inventory the land they own every
year. If land is no longer needed, a local agency must follow
certain procedures prior to disposal of this "surplus" land.
The intent behind the disposal procedures is to promote the use
of surplus land towards affordable housing, parks and recreation
purposes, open-space purposes, and transit-oriented development.
The disposal procedures provide a Right of First Refusal to
entities agreeing to use the land for, amongst other things,
affordable housing.
Prior to disposing of surplus land, local agencies must make a
written offer to sell or lease surplus land for the purpose of
developing low- or moderate-income housing to "housing sponsors"
upon written request, as well as any local public entity within
the jurisdiction where the surplus land is located. A local
agency wishing to dispose of surplus land must also provide a
written offer to additional entities, depending on the type of
proposed development, for park and recreational purposes, school
facilities construction or use by a school district for open
space purposes, enterprise purposes, and infill opportunity
zones, or transit village plans.
If one of these entities is interested in buying or leasing the
land, it must notify the local agency within 60 days of receipt
of the offer. If a notified entity is interested but cannot
agree with the agency upon the price or terms, the local agency
must enter into good faith negotiations with the entity for at
least 60 days. If 60 days have passed without an agreement,
then the local agency may sell or lease the land without further
regard to the Right of First Refusal requirements under the
disposal procedures.
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If the land is going to be used for residential development and
a local agency receives multiple offers from notified entities,
the local agency is required to give first priority to the
entity that agrees to use the site for affordable housing for
low- or moderate-income individuals and families. In the event
that a local agency enters into a contract to sell or lease the
land to a notified entity for park or recreation purposes,
open-space purposes, school purposes, or for low- and moderate-
income housing purposes, that contract may provide for a payment
period of up to 20 years. While nothing in the disposal
procedure limits the power of a local agency to sell or lease
surplus land at fair market value or at less than fair market
value, it also provides that nothing in the procedure shall be
interpreted to empower any local agency to sell or lease surplus
land at less than fair market value.
AB 2135 clarifies that a "transportation district" is considered
a local agency, and expands upon the provisions relating to the
prioritization of low- or moderate-income affordable housing
development. While existing law already requires local agencies
to give first priority to an affordable housing developer in the
case of multiple offers for residential land, this bill would
specify that a developer agreeing to build a project that is
100% affordable to persons or families of low- or
moderate-income would have the first priority. The bill
clarifies that a local agency may sell or lease the land at less
than fair market value by deleting the provision that specifies
that nothing in the procedure shall be interpreted to empower
any local agency to sell or lease surplus land at less than fair
market value.
AB 2135 also extends the payment period for surplus land sold
for housing for person and families of low- and moderate-income
by permitting it to exceed the previous limit of 20 years,
except that the payment period cannot exceed the term that the
land is required to be used for low- or moderate-income housing.
It also extends the period of good faith negotiation between a
local agency and a notified entity from 60 days to 90 days. If
the land is disposed of for residential purposes, at least 25%
of the units must be affordable for low- or moderate- income
individuals and families.
Additionally, the author's intent is to ensure that land located
within 1,000 yards of property that has been listed on, or
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determined to be eligible for, the National Register of Historic
Places is considered "surplus land" and subject to the disposal
procedures. To better align with this intent, the section in
the bill that deletes the provision regarding land within 1,000
yards of property listed or eligible for the National Register
of Historic Places should be restored.
The Purpose of this Bill:
According to the author, AB 2135 "would increase the supply of
affordable housing in California by strengthening provisions of
existing law that guarantees affordable housing projects first
priority to obtain surplus land held by local governments." As
the author explains, "this 'Right of First Refusal ' is
especially critical in light of state and local priorities for
transit oriented development - as transportation districts and
other local agencies expand public transit, surplus land
acquired in the process will provide valuable opportunities to
create new affordable housing options within sustainable
communities."
Arguments in Support:
Supporters of the bill say that it strengthens and makes the
existing priority more useful for affordable housing development
under the surplus property disposal procedures. Supporters point
to the recent dissolution of redevelopment agencies as one
reason why a meaningful Right of First Refusal should be
maintained. Amongst other things, strategically located surplus
land could be utilized for residential infill development
affordable to low- and moderate-income residents.
Committee Amendments:
The following technical amendments are recommended to preserve
the author's intent:
1)On page 4, between lines 2 and 3, insert:
(3) Lands within 1,000 yards of any property that has been
listed on, or determined by the State Office of Historic
Preservation to be eligible for, the National Register of
Historic Places.
2) On page 4, in line 7, strike out "(3)" and insert:
AB 2135
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(4)
3) On page 4, in line 32, strike out "low-or" and insert:
Low- or
4) On page 4, starting in line 18, insert the following
language:
If the disposed land is to be used for residential
development , including residential development with rents or
sale prices affordable for persons and families of low- or
moderate -income, the sales contract or lease agreement shall
provide that not less than 25 percent of the total number of
units in the development have rents or sale prices that are
affordable for persons and families of low or moderate income.
Double referred : If AB 2135 passes this committee, the bill
will be referred to the Committee on Local Government.
REGISTERED SUPPORT / OPPOSITION :
Support
The Nonprofit Housing Association of Northern California
(sponsor)
Housing Leadership Council of San Mateo County
Opposition
None on file
Analysis Prepared by : Rebecca Rabovsky / H. & C.D. / (916)
319-2085