BILL ANALYSIS �
AB 2135
Page 1
ASSEMBLY THIRD READING
AB 2135 (Ting)
As Amended May 5, 2014
Majority vote
HOUSING 5-2 LOCAL GOVERNMENT 7-2
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|Ayes:|Chau, Gordon, Brown, |Ayes:|Achadjian, Levine, Alejo, |
| |Quirk-Silva, Yamada | |Bradford, Gordon, Mullin, |
| | | |Rendon |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Beth Gaines, Maienschein |Nays:|Melendez, Waldron |
| | | | |
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APPROPRIATIONS 12-5
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|Ayes:|Gatto, Bocanegra, | | |
| |Bradford, | | |
| |Ian Calderon, Campos, | | |
| |Eggman, Gomez, Holden, | | |
| |Pan, Quirk, | | |
| |Ridley-Thomas, Weber | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bigelow, Donnelly, Jones, | | |
| |Linder, Wagner | | |
| | | | |
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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
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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 person 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)Provides that, if the Commission on State Mandates determines
that this bill 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.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, 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 :
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
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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.
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.
Purpose of this bill: According to the author, this bill "would
increase the supply of affordable housing in California by
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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."
This bill 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.
This bill 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.
Lastly, if the land is disposed of for residential purposes,
this bill requires that at least 25% of the units must be
affordable for low- or moderate- income individuals and
families.
Analysis Prepared by : Rebecca Rabovsky / H. & C.D. / (916)
319-2085
FN: 0003479
AB 2135
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