BILL ANALYSIS �
AB 2135
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Date of Hearing: May 14, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2135 (Ting) - As Amended: May 5, 2014
Policy Committee: Local
GovernmentVote:7 - 2
Housing and Community Development
5 - 2
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill amends the procedure local agencies must follow to
dispose of surplus land and expands the provisions prioritizing
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 negotiations
with entities wanting to purchase or lease surplus land from
60 days to 90 days.
2)Provides that, if a local agency disposing of surplus land
receives offers for 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.
3)Requires, if the disposed land will be used for residential
development, that at least 25% 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.
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 shall not exceed the term that the
land is required to be used for low or moderate income
housing.
AB 2135
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5)Clarifies that a local agency may sell or lease surplus land
at less than fair market value.
FISCAL EFFECT
Minor one-time costs to the state to reimburse local agencies
for altering their surplus land disposal procedures if the
Commission on State Mandates determines this bill contains a
reimbursable cost.
COMMENTS
1)Purpose . According to the author, this bill would increase the
supply of affordable housing in California by strengthening
provisions of existing law that guarantee 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."
2)Surplus Property . Local agencies are required to inventory the
land they own every year. If land is no longer needed, a
local agency must 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.
If the land is going to be used for residential development
and a local agency receives multiple offers, the local agency
must give first priority to the entity that agrees to use the
site for affordable housing. If a local agency enters into a
contract to sell or lease the land for park or recreation,
open-space, school, or low and moderate income housing
purposes, the contract may contain a payment period of up to
20 years. This bill alters these provisions.
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
319-2081
AB 2135
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