Summary
(1) Existing law establishes priorities and procedures that any state agency disposing of surplus property is required to follow. Existing law requires the Department of Transportation to deposit proceeds from the sale of a surplus residential property from the department to a new owner into the SR-710 Rehabilitation Account. Existing law continuously appropriates the funds in the account to the department for the purpose of providing required repairs to certain surplus residential properties that are offered for sale, as provided. Existing law requires that the total funds maintained in the account not exceed a specified amount 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 exclusively to fund projects located in specified cities and in the 90032 postal ZIP Code. Existing law also establishes the Affordable Housing Trust Account within the Housing Finance Fund, a continuously appropriated fund, and requires certain funds to be deposited in the account in accordance with specified provisions for the benefit of income restricted persons and families residing exclusively in the Cities of Pasadena, South Pasadena, Alhambra, La Cañada Flintridge, and the 90032 postal ZIP Code. Existing law sets forth an order of priority for the disposal of specified surplus residential property, including that a state agency disposing of single-family surplus residential property first offer the property at the appraised fair market value to former owners and present occupants, and then offer the property at an affordable price to other present occupants who have occupied the property for a specified number of years and who meet certain income levels. Existing law sets certain parameters for the calculation of an affordable price for purposes of these provisions based on, among other things, the fair market value of the property. This bill would, instead, require the first tier priority offer to be based on the appraised condition-adjusted price of the fair market value and would define "condition-adjusted price of the fair market value" to mean the fair market value of the property as of October 13, 2019, as determined by an independent appraiser and adjusted, as provided. The bill would revise the above-specified parameters for calculating an affordable price. The bill would establish requirements relating to the performance and cost of the inspection of the property, and define various terms for purposes of these provisions, including, among others, "guidelines." The bill would also, for surplus residential property sold at a condition-adjusted fair market value, exempt the selling agency from providing repairs to the property, as specified. This bill, among other changes, would authorize a present occupant or tenant purchasing a residence at an affordable price or condition-adjusted price of the fair market value to receive purchase assistance in accordance with certain procedures. The bill would provide that certain amounts repaid for those purposes constitute deferred proceeds from the department's sale of the property and would be deposited into the Affordable Housing Trust Account, as prescribed. (2) If the surplus residential property is not sold pursuant to the priorities described above, or pursuant to other specified priorities, existing law requires the property to then be sold at fair market value, with priority given first to purchasers who are present tenants in good standing, as provided, and then to former tenants who were in good standing at the time they vacated the premises, as provided. This bill would, instead, require the property to be sold to those present or former tenants at condition-adjusted fair market value. This bill would require the Department of Transportation, upon request, to provide certain documents related to the surplus residential property to all persons or entities offered or purchasing surplus residential property. The bill would require any surplus residential property purchased at the condition-adjusted price of the fair market value pursuant to the bill to be assessed at its condition-adjusted price of the fair market value for property tax purposes, as prescribed. (3) Existing law contains provisions that are specific to the sale of surplus residential property located in the City of Pasadena. Those provisions, among other things, contain a priority requiring surplus residential property located in the city to be offered at fair market value to specified present tenants who are in good standing, as provided. This bill would, instead, require the property to be offered to those present tenants at condition-adjusted price of the fair market value, as defined. Existing law also requires the City of Pasadena to commence the construction, or complete acquisition, of affordable units in an amount at least equal to 3 times the number of unoccupied homes acquired by the city by December 31, 2026. This bill would change the timing for this requirement to within 2 years from the date on which the proceeds from the subsequent sale of the unoccupied homes are received, as specified, and would make other related changes to these provisions. (4) Existing law contains provisions that are specific to the sale of surplus residential property located in the City of South Pasadena. Those provisions, among other things, contain a priority requiring surplus residential property located in the city to be offered at fair market value to specified present tenants who are in good standing, as provided. This bill would, instead, require the property to be offered to those present tenants at condition-adjusted price of the fair market value. Existing law also requires the City of South Pasadena to commence the construction, or complete acquisition, of affordable units in an amount at least equal to three times the number of unoccupied homes acquired by the city by July 1, 2028. This bill would, for unoccupied homes acquired by the City of South Pasadena after July 1, 2026, change the timing for this requirement to within 2 years from the date on which the proceeds from the subsequent sale of the unoccupied homes are received, as specified, and would make other related changes to these provisions. By requiring new deposits into a continuously appropriated account, the bill would make an appropriation. (5) This bill would make legislative findings and declarations as to the necessity of a special statute for the Cities of South Pasadena and Pasadena. (6) By imposing new requirements on the Cities of South Pasadena and Pasadena, this 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 declare that it is to take effect immediately as an urgency statute.
