Existing law prescribes requirements for the disposal of surplus land by a local agency. Existing law defines terms for these purposes. Existing law defines "surplus land" to generally mean land owned in fee simple by a local agency for which the local agency's governing body takes formal action in a public meeting declaring that the land is surplus and not necessary for the agency's use. Existing law defines "agency's use" to include land that is being used, is planned to be used pursuant to a written plan adopted by the local agency's governing board, or is disposed of to support agency work or operations. Existing law excludes from "agency's use" commercial or industrial uses or activities, or property disposed of for the sole purpose of investment or generation of revenue, unless the local agency is a district, except as specified, and the agency's governing body takes specified actions in a public meeting. Existing law excludes from these requirements the disposal of exempt surplus land by an agency of the state or any local government. Existing law requires a local agency to declare land as either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it. Under existing law, exempt surplus land includes, among other types of land, property that is used by a district for an "agency's use" as expressly authorized, land for specified developments, including a mixed-use development, if put out to open, competitive bid by a local agency, as specified, and surplus land that is subject to specified valid legal restrictions.
This bill would define the term "dispose" for these purposes to mean the sale of the surplus property or a lease of any surplus property entered into on or after January 1, 2024, for a term longer than 15 years, including renewal options, as specified. The bill would provide that "dispose" does not include entering a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease. The bill would also redefine the term "agency's use" to include property owned by a port that is used to support logistics uses, sites for broadband equipment or wireless facilities, and waste disposal sites.
This bill would revise and recast certain provisions related to exempt surplus land, including exempting surplus land that is less than one-half acre and not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate- income housing purposes, and provisions related to mixed-use developments, among others. The bill would add various new categories of exempt surplus land, including (1) specified land that is owned by a California public-use airport on which residential uses are prohibited, (2) surplus land owned by a local agency whose primary mission or purpose is to supply the public with a transportation system that is developed for commercial, or industrial uses or activities, for the sole purpose of investment if certain conditions are met, and (3) land transferred to a community land trust, as specified. The bill would also specify that certain legal restrictions are valid legal restrictions and would require that for surplus land that is subject to valid legal restrictions to be considered exempt surplus land, a declaration of exemption must be supported by documentary evidence, as provided.
This bill would specify that the law governing surplus land does not require a local agency to dispose of land that is determined to be surplus.
Existing law requires a local agency disposing of surplus land to send a written notice of availability of the property to specified local agencies and housing sponsors before disposing of the property or participating in negotiations.
This bill would specify additional actions that are not considered "participating in negotiations" for purposes of the above-described notice of availability requirement, including issuing a request for proposals or negotiating a lease for purposes of complying with specified provisions of law.
Existing law requires the Department of Housing and Community Development to maintain on its internet website a list of all notices of availability throughout the state.
This bill would require the department to also maintain on its internet website a list of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing.
Existing law requires an entity proposing to use surplus land for developing low- and moderate-income housing shall agree to make available not less than 25 percent of the total number of units developed on the parcels at affordable housing cost for a period of at least 55 years.
This bill would instead require the entity to agree to make available not less than 25 percent of the total number of units developed on the parcels at affordable housing cost for a minimum of 55 years for rental housing, 45 years for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands.
Under existing law, a local agency that disposes of surplus land after receiving a notification from the Department of Housing and Community Development that the agency is in violation of the law governing surplus land is liable for 30% of the final sale price of the land. Existing law authorizes certain entities and interested persons to bring an action to enforce these provisions.
This bill would instead make a local agency that is in violation of these provisions liable for 30% of the applicable disposition value, which the bill would define. This bill would prohibit the penalties for violating these provisions from applying to nonsubstantive violations that do not impact the availability or construction of housing affordable to lower income households or the ultimate disposition of the land, as specified.
Existing law further requires the department to review, adopt, amend, or repeal guidelines to establish uniform standards to implement certain provisions and exempts those guidelines from the Administrative Procedure Act.
This bill would remove that exemption from the Administrative Procedure Act.
By imposing new duties on local agencies, the bill would impose a state-mandated local program.
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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
This bill would incorporate additional changes to Section 54221 of the Government Code proposed by Assembly Bill 480 to be operative only if this bill and Assembly Bill 480 are enacted and this bill is enacted last.
This bill would make its operation contingent on the enactment of Assembly Bill 480 of the 2023-24 Regular Session.

Statutes affected:
SB747: 54222 GOV, 54222.5 GOV, 54223 GOV, 54224 GOV, 54225 GOV, 54226 GOV, 54227 GOV, 54230 GOV, 54230.5 GOV
02/17/23 - Introduced: 54221 GOV
03/22/23 - Amended Senate: 52200 GOV, 52200 GOV, 52200.6 GOV, 52200.6 GOV, 52201 GOV, 52201 GOV, 54221 GOV, 54222 GOV, 54222 GOV, 54226 GOV, 54226 GOV, 54230 GOV, 54230 GOV, 54230.5 GOV, 54230.5 GOV, 54234 GOV, 54234 GOV
04/13/23 - Amended Senate: 52200 GOV, 52200.6 GOV, 52201 GOV, 54221 GOV, 54222 GOV, 54226 GOV, 54230 GOV, 54230.5 GOV, 54234 GOV
05/01/23 - Amended Senate: 52200 GOV, 52200.6 GOV, 52201 GOV, 54221 GOV, 54222 GOV, 54226 GOV, 54230 GOV, 54230.5 GOV, 54234 GOV
05/18/23 - Amended Senate: 52200 GOV, 52200.6 GOV, 52201 GOV, 54221 GOV, 54222 GOV, 54226 GOV, 54230 GOV, 54230.5 GOV, 54234 GOV
06/30/23 - Amended Assembly: 52200 GOV, 52200.6 GOV, 52201 GOV, 54221 GOV, 54222 GOV, 54226 GOV, 54230 GOV, 54230.5 GOV, 54234 GOV
08/14/23 - Amended Assembly: 52200 GOV, 52200.6 GOV, 52201 GOV, 54221 GOV, 54222 GOV, 54226 GOV, 54230 GOV, 54230.5 GOV
09/08/23 - Amended Assembly: 54222 GOV, 54222 GOV, 54222.5 GOV, 54222.5 GOV, 54223 GOV, 54223 GOV, 54224 GOV, 54224 GOV, 54225 GOV, 54225 GOV, 54226 GOV, 54227 GOV, 54227 GOV, 54230 GOV, 54230.5 GOV
09/19/23 - Enrolled: 54222 GOV, 54222.5 GOV, 54223 GOV, 54224 GOV, 54225 GOV, 54226 GOV, 54227 GOV, 54230 GOV, 54230.5 GOV
10/11/23 - Chaptered: 54222 GOV, 54222.5 GOV, 54223 GOV, 54224 GOV, 54225 GOV, 54226 GOV, 54227 GOV, 54230 GOV, 54230.5 GOV
SB 747: 54221 GOV