SB 51 — Surplus residential property.

Summary

(1) Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined. Existing law provides that certain dispositions of real property by local agencies are subject to surplus land disposal procedures as they existed on December 31, 2019, without regard to specified amendments that took effect on January 1, 2020, if those dispositions comply with specified requirements. Under existing law, these provisions apply to dispositions by a local agency that, as of September 30, 2019, has entered into an exclusive negotiating agreement or legally binding agreement to dispose of property, provided that the disposition is completed not later than December 31, 2022. This bill, except in the case of specified property, would additionally provide that the surplus land disposal procedures as they existed on December 31, 2019, apply if a local agency, as of September 30, 2019, has issued a competitive request for proposals for the development of the property that includes a residential component of at least 100 residential units and 25% of the total units developed complying with specified affordability criteria, provided that a disposition and development agreement, as defined, is entered into not later than December 31, 2024. If the property is not disposed of pursuant to a qualifying disposition and development agreement before March 31, 2026, or if no disposition and development agreement is entered into before December 31, 2024, the bill would require that future negotiations for and disposition of the property comply with the surplus land disposal procedures then in effect. The bill would extend these dates in the event of a judicial challenge to 6 months following the final conclusion of litigation. (2) Existing law establishes priorities and procedures that any state agency disposing of surplus residential property is required to follow. Under existing law, specified single-family residences must first be offered to their former owners or present occupants, as specified. Existing law then requires the property to be offered to housing-related entities, as provided, prior to placing the property up for sale, subject to specified priorities. Existing law requires, if a property that is not a historic home is sold to a private housing-related entity or a housing-related public entity, that the entity develop the property as limited equity cooperative housing with first right of occupancy to present occupants, or use the property for low- and moderate-income rental or owner-occupied housing where the development of cooperative or cooperatives is not feasible. Existing law requires, if a property is a historic home, as defined, that the property be offered first to a housing-related entity, subject to the above-described requirements, or a nonprofit private entity dedicated to rehabilitating and maintaining the historic home for public and community access and use, as provided. This bill would, with respect to surplus residential property that is located within the City of Los Angeles, instead require that if the surplus residential property is not sold to a former owner or present occupant, as described above, the property be offered at fair market value to present tenants who have occupied the property for 5 years or more and who are in good standing with all rent obligations current and paid in full, with first right of occupancy to the present occupants. If the surplus residential property is a historic home, as defined, the bill would then require that the property be offered to the city in which the property is located or a nonprofit private entity dedicated to rehabilitating and maintaining the historic home for public and community access and use, subject to specified terms and conditions. Finally, the bill would require that surplus residential property be offered to a housing-related entity, subject to specified terms and conditions. The bill would require a housing-related entity to cause the property to be used, under specified conditions, either for low- and moderate-income rental housing for a term of at least 55 years, subject to a recorded covenant, to ensure use as affordable housing, as provided, and to provide a first right of occupancy to the present tenants, or, if the surplus residential property is a single-family residence, the bill would provide the surplus residential property may be used for owner- occupied affordable housing for a term of at least 45 years, subject to a covenant recorded against the property to ensure its use as affordable housing. The bill would require the Department of Transportation to monitor or designate a public agency to monitor a property's compliance with the bill's terms, conditions, and restrictions, in the case of a historic home, and require the City of Los Angeles to monitor compliance with the recorded covenant, in the case of surplus residential properties sold to a housing-related entity, and authorize the monitoring entity to charge the property owner a fee to cover the cost of monitoring and reporting. The bill would require the city to prepare and submit to the Legislature reports that describe how the purchasers complied with these provisions and how they were monitored for compliance, as specified. By requiring additional duties by the City of Los Angeles, this bill would impose a state-mandated local program. This bill would prohibit surplus residential property from being sold at less than the price paid by the Department of Transportation for original acquisition of the property. The bill would prohibit the adjustment of this original acquisition price for inflation. The bill would require the Department of Transportation to offer to sell specified unimproved properties at the original acquisition price paid by the department to a housing-related entity for affordable housing purposes, as provided. (3) Existing law generally requires that not less than the general prevailing rate of per diem wages, as specified, be paid to workers employed on a public work project that exceeds $1,000. Existing law establishes requirements that apply when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce to complete a contract or project. Existing law also authorizes a public entity to require that a bidder, contractor, or other entity use a skilled and trained workforce to complete a contract or project. The bill would require the housing-related entity to provide an enforceable commitment to the selling agency that it will comply with specified requirements, if a project on the property involves construction, regarding the payment of prevailing rate of per diem wages for construction work related to the project, except as provided. (4) Existing law, known as the Administrative Procedure Act, governs the procedures for the adoption, amendment, or repeal of regulations by state agencies and for the review of those regulatory actions by the Office of Administrative Law. Existing law establishes procedures for the adoption of emergency regulations, including requiring that the state agency make a finding that the adoption of a regulation or order of repeal is necessary to address an emergency, as defined. Under existing law, a regulation, amendment, or repeal adopted as an emergency regulatory action may only remain in effect for up to 180 days, unless the adopting agency complies with specified requirements relating to notice of regulatory action and public comment. This bill would require the Department of Transportation to adopt emergency regulations not later than 6 months from when the provisions of the bill are enacted, to implement the above-described requirements relating to the disposal of surplus property. The bill would include findings and declarations that an emergency exists for purposes of specified provisions of the Administrative Procedure Act. The bill, notwithstanding the 180-day limit for emergency regulations, would provide that emergency regulations adopted under its provisions would remain in effect for 2 years after their effective date, or until the adoption of permanent regulations, whichever occurs sooner. (5) This bill would make legislative findings and declarations as to the necessity of a special statute for the sale of surplus residential property located in the City of Los Angeles. (6) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair. (7) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. (8) This bill would declare that it is to take effect immediately as an urgency statute.

Bill Text

• Chaptered 07/23/21 - Chaptered Current pdf July 23, 2021
• Enrolled 07/16/21 - Enrolled pdf July 16, 2021
• Amended 07/08/21 - Amended Assembly pdf July 08, 2021
• Amended 05/27/21 - Amended Assembly pdf May 27, 2021
• Amended 03/08/21 - Amended Assembly pdf March 08, 2021
• Introduced 12/07/20 - Introduced pdf December 07, 2020
• SB51 View text html

Action History

1. July 23, 2021

   Chaptered by Secretary of State. Chapter 130, Statutes of 2021.

2. July 23, 2021

   Approved by the Governor.

3. July 20, 2021

   Enrolled and presented to the Governor at 4 p.m.

4. July 15, 2021

   Assembly amendments concurred in. (Ayes 32. Noes 7. Page 1982.) Ordered to engrossing and enrolling.

5. July 12, 2021

   In Senate. Concurrence in Assembly amendments pending.

6. July 12, 2021

   Read third time. Urgency clause adopted. Passed. (Ayes 63. Noes 10. Page 2313.) Ordered to the Senate.

7. July 08, 2021

   Ordered to third reading.

8. July 08, 2021

   Read third time and amended.

9. July 07, 2021

   Ordered to third reading.

10. July 07, 2021

    Action rescinded whereby bill Re-referred to Com. on H. & C.D. pursuant to Assembly Rule 77.2.

11. May 27, 2021

    Re-referred to Com. on H. & C.D. pursuant to Assembly Rule 77.2.

12. May 27, 2021

    Ordered to third reading.

13. May 27, 2021

    Read third time and amended.

14. March 22, 2021

    Read second time. Ordered to third reading.

15. March 18, 2021

    From committee: Do pass. (Ayes 16. Noes 0.) (March 18).

16. March 15, 2021

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (March 15). Re-referred to Com. on APPR.

17. March 08, 2021

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on H. & C.D.

18. February 25, 2021

    Referred to Com. on H. & C.D.

19. February 12, 2021

    In Assembly. Read first time. Held at Desk.

20. February 12, 2021

    Read third time. Urgency clause adopted. Passed. (Ayes 32. Noes 0. Page 191.) Ordered to the Assembly.

21. February 08, 2021

    Read second time. Ordered to third reading.

22. February 04, 2021

    From committee: Do pass. (Ayes 4. Noes 0. Page 156.) (February 4).

23. February 02, 2021

    Set for hearing February 4.

24. February 01, 2021

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 15. Noes 0. Page 130.) (February 1). Re-referred to Com. on APPR.

25. January 27, 2021

    Set for hearing February 1.

26. January 19, 2021

    Referred to Com. on TRANS.

27. December 08, 2020

    From printer. May be acted upon on or after January 7.

28. December 07, 2020

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

• Maria Elena Durazo · Primary
• Wendy Carrillo · Cosponsor

Votes

Subjects