Surplus residential property: priorities, procedures, price, and fund: City of South Pasadena.

(1) 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 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 for fair market value, 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, with respect to surplus residential property that is located within the City of South Pasadena, would 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 has a historic home, as defined, not occupied by tenants, the bill would then require that the property be offered to the City of South Pasadena, subject to specified terms and conditions. Finally, the bill would require that surplus residential property be offered to the City of South Pasadena, as a housing-related entity, and then to another housing-related entity, subject to specified terms and conditions. The bill would require the Department of Housing and Community Development to determine compliance with certain of these terms and conditions, as provided. The bill would require a housing-related entity to cause the property to be used, under specified conditions, 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. The bill, if the surplus residential property is a single-family residence, would authorize the surplus residential property to 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, in the case of a historic home, would require the City of South Pasadena to monitor compliance with the covenant and require the Department of Transportation, in the case of surplus residential property sold to a housing-related entity, to monitor or designate a public agency to monitor a property's compliance with the recorded covenant, and would authorize the monitoring entity to charge the property owner a fee to cover the cost of monitoring and reporting. If the monitoring entity is not a state agency, the bill would require the monitoring entity 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 imposing duties on a local agency monitoring compliance pursuant to these provisions, this bill would impose a state-mandated local program. The bill would also require the Department of Transportation to sell specified unimproved properties at the original acquisition price paid by the department to the City of South Pasadena, as a housing-related entity, and then to another housing-related entity, subject to specified terms and conditions. If the Department of Transportation does not commence the sale of its unoccupied surplus residential property in the City of South Pasadena, as provided, by June 30, 2022, the bill would require the department to report by December 31, 2022, to the relevant policy and fiscal committees of the Legislature the reasons for not commencing sales and its plans for commencing them. (2) 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. 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. (3) 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 authorize the Department of Housing and Community Development to review, adopt, amend, and repeal standards, forms, and definitions to implement specified provisions relating to the sale of surplus residential property that has a historic home within the City of South Pasadena, as described above, and exempt those standards, forms, or definitions from the rulemaking provisions of the Administrative Procedure Act. The bill would also require the Department of Transportation to file proposed emergency regulations with the Office of Administrative Law for adoption to implement the above-described requirements relating to the disposal of surplus property no later than 6 months after the bill's provisions are enacted. The bill would include findings 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. (4) Existing law creates the SR-710 Rehabilitation Account, which is continuously appropriated to the Department of Transportation, and into which proceeds from the sale of surplus residential property by the department are deposited. Existing law requires that the total funds maintained in the account not exceed $500,000 and that funds exceeding that amount, less any reimbursements due to the federal government, be transferred to the State Highway Account in the State Transportation Fund to be used for allocation by the California Transportation Commission, as specified. This bill would authorize an increase in the amount of the total funds maintained in the account up to $1,200,000. By authorizing an increase in the funds held in a continuously appropriated fund, the bill would make an appropriation. (5) This bill would make findings regarding the public purpose served by the bill. (6) This bill would make legislative findings and declarations as to the necessity of a special statute for the City of South Pasadena. (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.