BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2135|
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THIRD READING
Bill No: AB 2135
Author: Ting (D)
Amended: 8/4/14 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 8-1, 6/17/14
AYES: DeSaulnier, Beall, Galgiani, Hueso, Lara, Liu, Pavley,
Roth
NOES: Wyland
NO VOTE RECORDED: Gaines, Cannella
SENATE APPROPRIATIONS COMMITTEE : 5-2, 8/4/14
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NOES: Walters, Gaines
ASSEMBLY FLOOR : 53-22, 5/19/14 - See last page for vote
SUBJECT : Local government surplus land and affordable housing
SOURCE : Non-Profit Housing Association of Northern
California
DIGEST : This bill requires that surplus local government land
sold under preference for affordable housing provide at least
25% of the units at affordable housing cost to low-income
households, and requires that such land sold outside the
preference system for residential use provide at least 15% of
the units at affordable housing cost to low-income households.
ANALYSIS : Existing law establishes the parameters under which
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local governments dispose of surplus property. The local
government must first send a written offer to sell or lease the
property to specified preferred entities, including school
districts, parks departments, housing authorities, and
affordable housing developers. Any of these preferred entities
desiring to purchase or lease the property must then notify the
local government within 60 days of its intent to purchase or
lease the land. If there are competing offers, the local
government must give first priority to the entity that agrees to
use the site for low- or moderate-income housing, unless the
surplus land is already being used for park or recreational
purposes or designated for park or recreational use in the local
general plan, and the buyer will use the land for park or
recreation purposes.
If the local government receives an offer from one of these
preferred entities, it then enters into good-faith negotiations
with the entity to determine a mutually satisfactory sales price
or lease terms. The statute expressly states that it neither
limits the power of a local government to sell or lease surplus
land at fair market value or at less than fair market value, nor
empowers a local government to sell or lease surplus land at
less than fair market value. The statute does provide, however,
that the local government may allow a preferred entity proposing
to use the property for park or recreation purposes, for
open-space purposes, for school purposes, or for affordable
housing purposes to pay for the property over a term up to 20
years. If the price or terms cannot be agreed upon after 60
days, the disposing agency may dispose of the property on the
open market.
This bill:
1.Extends from 60 to 90 days the good-faith negotiation period
between the local government and a preferred entity.
2.Requires an entity seeking to exercise the preference for
affordable housing purposes to agree to make available not
less than 25% of the units in the development at an affordable
housing cost to low-income households. Rental units must
remain affordable and occupied by eligible households for 55
years. Ownership units must be subject to an equity sharing
agreement. These requirements must be recorded against the
property and are enforceable by the local government or
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eligible residents.
3.Allows, with respect to properties sold or leased to preferred
entities for affordable housing purposes, the payment period
to exceed 20 years, provided that the payment period does not
exceed the term of affordability of the housing units.
4.Deletes the provision stating that existing law does not
empower a local government to sell or lease surplus land at
less than fair market value and instead adds any sale or lease
at or less than fair market value consistent with this bill
shall not be construed as inconsistent with an agency's
purpose.
5.Provides, with respect to the priority among competing offers
from preferred entities, that if there are competing
affordable housing offers, priority shall go to the project
that proposes the greatest number of affordable units at the
deepest level of affordability.
6.Requires properties sold outside the preference system that
are developed with 10 or more residential units to include at
least 15% of the units in the development at an affordable
housing cost to low-income households. Rental units must
remain affordable and occupied by eligible households for 55
years. Ownership units must be subject to an equity sharing
agreement. These requirements must be recorded against the
property and are enforceable by the local government or
eligible residents.
Comments
According to the author's office, one of the barriers to
increasing affordable housing supply in California is the lack
of available sites. Local agencies, however, control
significant amounts of unused land, much of which is appropriate
for affordable housing. This bill will increase the supply of
affordable housing in California by strengthening provisions of
existing law that give affordable housing projects first
priority to obtain surplus land held by local governments. Most
importantly, the bill defines the percentage of units and levels
of affordability that a project must provide in order to
exercise the preference. The bill also extends the period of
good-faith negotiation between a local agency and a preferred
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entity from 60 to 90 days, clarifies that a local agency may
sell or lease the land at less than fair market value, and
allows for longer payment periods for affordable housing.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee, unknown,
likely minor, reimbursable mandate costs. Local agencies would
likely incur minor one-time costs to revise administrative
procedures related to the disposal of surplus property. These
costs could be subject to state-reimbursement to the extent
local agencies file a claim for reimbursement and the Commission
on State Mandates determines specified activities are subject to
reimbursement. (General Fund)
SUPPORT : (Per the Senate Transportation and Housing Committee
analysis of 6/17/14--Unable to reverify at time of writing)
Non-Profit Housing Association of Northern California (source)
California Housing Partnership Corporation
California Rural Legal Assistance Foundation
Century Housing
Charities Housing
Community Housing Opportunities Corporation
Community Housing Works
Domus Development
EAH Housing
Housing California
Housing Leadership Council of San Mateo County
John Stewart Company
MidPen Housing Corporation
Mutual Housing California
Northern California Community Loan Fund
Resources for Community Development
San Luis County Affordable Housing Trust Fund
Satellite Affordable Housing Associates
South County Housing
Urban Habitat
Western Center on Law and Poverty
ASSEMBLY FLOOR : 53-22, 5/19/14
AYES: Achadjian, Alejo, Ammiano, Bloom, Bonilla, Bonta,
Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,
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Chesbro, Cooley, Dababneh, Daly, Dickinson, Eggman, Fong, Fox,
Frazier, Garcia, Gomez, Gonzalez, Gordon, Gray, Hall, Roger
Hern�ndez, Holden, Jones-Sawyer, Levine, Lowenthal, Medina,
Mullin, Muratsuchi, Pan, Perea, John A. P�rez, V. Manuel
P�rez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez,
Salas, Skinner, Stone, Ting, Weber, Wieckowski, Williams,
Yamada, Atkins
NOES: Allen, Bigelow, Ch�vez, Conway, Dahle, Donnelly, Beth
Gaines, Gatto, Gorell, Grove, Hagman, Harkey, Jones, Linder,
Logue, Maienschein, Melendez, Olsen, Patterson, Wagner,
Waldron, Wilk
NO VOTE RECORDED: Bocanegra, Mansoor, Nazarian, Nestande,
Vacancy
JA:e 8/6/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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