BILL ANALYSIS �
AB 2135
Page 1
Date of Hearing: April 30, 2014
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
K.H. "Katcho" Achadjian, Chair
AB 2135 (Ting) - As Amended: April 21, 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)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.
2)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.
3)Requires, if the disposed land will be used for residential
development, including residential development with rents or
sales prices that are affordable for persons or families of
low- or moderate income, that 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.
4)Provides that the payment period for surplus land sold for
housing for persons and families of low- and moderate-income
may exceed 20 years, but the payment period shall not exceed
the term that the land is required to be used for low- or
moderate-income housing.
5)Clarifies that a local agency may sell or lease surplus land
at less than fair market value.
6)Explicitly calls out transportation districts within the
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definition of the term "local agency," for purposes of the
surplus land disposal procedures.
7)Provides, if the Commission on State Mandates determines that
this bill contains costs mandated by the state, that
reimbursement to local agencies and school districts for those
costs shall be made pursuant to existing law.
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.
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
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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
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
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if the land is designated for park and recreational use in the
local general plan and will be developed for that purpose.
FISCAL EFFECT : This bill is keyed fiscal.
COMMENTS :
1)Purpose of this bill . This bill 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. This bill is sponsored
by the Non-Profit Housing Association of Northern California.
2)Background on surplus land . 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
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without further regard to the Right of First Refusal
requirements under the disposal procedures.
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.
3)Author's statement . 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."
4)Previous legislation . AB 1410 (Wolk), Chapter 772, Statutes
of 2003, required local agencies to send written offers to
sell or lease surplus land within infill opportunity zones or
transit village plans to counties, cities, redevelopment
agencies, public transportation agencies, and housing
authorities.
5)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.
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Amongst other things, strategically located surplus land could
be utilized for residential infill development affordable to
low- and moderate-income residents.
6)Arguments in opposition . None on file.
7)Committee amendment . The Committee may wish to consider
striking the addition of the term "transportation district" to
the definition of "local agency" as defined in code related to
surplus land disposal procedures. The definition of local
agency already includes any "district" which encompasses all
types of special districts, including transportation
districts.
8)Double-referral . This bill was heard by the Housing and
Community Development Committee on April 9, 2014, and passed
with a 5-2 vote.
REGISTERED SUPPORT / OPPOSITION :
Support
The Nonprofit Housing Association of Northern California
[SPONSOR]
California Rural Legal Assistance Foundation
Housing California
Housing Leadership Council of San Mateo County
Western Center on Law & Poverty
Opposition
None on file
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958