Surplus land.

Existing law requires land to be declared either "surplus land" or "exempt surplus land," as defined and as supported by written findings, before a local agency may take any action to dispose of the land consistent with an agency's policies or procedures. Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, the local agency disposing of surplus land to comply with certain notice requirements prior to disposing of the land or participating in negotiations to dispose of the land with a prospective transferee, particularly that the local agency send a notice of availability to specified entities, as provided. Under existing law, if the local agency receives a notice of interest, the local agency is required to engage in good faith negotiations with the entity desiring to purchase or lease the surplus land. Existing law requires the local agency disposing of the land to send a notice of availability to local entities and housing sponsors for the purpose of developing low- and moderate-income housing, as provided, and requires the Department of Housing and Community Development to maintain on its internet website an up-to-date listing of all notices of availability throughout the state. Existing law specifies requirements that must be met for entities desiring to develop land for those purposes, prioritizes the entity that proposes the greatest number of units, and in the event that more than one entity proposes the same number of units that meet the affordable housing requirements, prioritizes the entity that proposes the deepest average level of affordability for the affordable units. Existing law provides that these provisions do not preclude a local agency, housing authority, or redevelopment agency that purchases land from a disposing agency from reconveying the land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing as authorized under other provisions of law. Existing law authorizes any public agency disposing of surplus land to a specified entity that intends to use the land for certain purposes, including low- and moderate-income housing purposes, may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land. Existing law requires a local agency, prior to agreeing to terms for the disposition of surplus land, to provide the Department of Housing and Community Development with a specified description of the process followed to dispose of the land and a copy of any recorded restrictions against the property, as specified, in a form prescribed by the Department of Housing and Community Development. Existing law requires the Department of Housing and Community Development to, among other things, review the description and submit written findings to the local agency within 30 days of receiving the description if the proposed disposal of the land will violate specified provisions of law and includes a timeline for the local agency to respond and take certain action pursuant to the department's findings. Existing law, beginning January 1, 2021, imposes a penalty for violation of these surplus land provisions after a local agency receives the notification from the Department of Housing and Community Development and a penalty for subsequent violations. Existing law authorizes specified entities or persons to bring an action against a local agency to enforce the provisions related to surplus land and allows a local agency 60 days to cure or correct an alleged violation before the action may be brought, except as specified. This bill would add to the definition of "exempt surplus land" a former military base or other planned residential or mixed-use development of adjacent or nonadjacent parcels of greater than 5 total acres, that are subject to a written plan, where at least one of the owners is a local agency and meets other specified criteria. This bill would provide that the surplus land provisions described above do not preclude a local agency that purchases surplus land from a disposing agency from reconveying the surplus land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing as authorized under other provisions of law. The bill would provide that any local agency disposing of surplus land to a specified entity that intends to use the land for specified purposes, including low- and moderate-income housing purposes, may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land. If the original responding entity agrees to the price, the bill would require another period of not less than 90 days for the parties to agree on the terms of the sale. The bill would require the Department of Housing and Community Development to maintain copies of the notices of availability on its internet website and make them available as a downloadable PDF. The bill would make other technical changes. By increasing the duties of local agencies, 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.