Surplus land.

(1) Existing law provides for the disposal of land owned by a local agency that is surplus and is not necessary for the agency's use. The local agency is required to declare the land either "surplus land" or "exempt surplus land," as prescribed. Existing law sets forth procedures for the disposal of surplus land. Existing law, for prescribed surplus land parcels developed with residential units, requires minimum percentages of residential units developed on the parcel to be sold or rented at affordable housing cost or affordable rent. This bill, with regard to surplus land, would require each parcel of land to be considered a distinct unit of surplus land, with the exception of contiguous parcels that are disposed of simultaneously to the same receiving entity or any entity working in concert with another receiving entity, which parcels the bill would require to be treated as a single unit of land. (2) Existing law, the Administrative Procedure Act (APA) , 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. Among other things, the APA requires every state agency to transmit to the office for filing with the Secretary of State a certified copy of every regulation adopted or amended by it, except one that is a building standard, and prescribes procedures for public comment on regulations proposed to be adopted, amended, or repealed. This bill would specify that any rule, policy, or standard of general application issued by the Department of Housing and Community Development (HCD) in implementing the laws governing the disposal of surplus land owned by local agencies, as described above, is subject to the rulemaking provisions of the APA. Until July 1, 2026, the bill would require HCD to rely upon specified previously adopted guidelines, as provided, to the extent those guidelines do not conflict with current law, while any rule, policy, or standard subject to the bill's provisions is going through the rulemaking process, until such time as the rulemaking process is complete. (3) Existing law requires each county and city to make a central inventory of prescribed surplus lands and to make a matter of public record a description of each parcel and the present uses of the parcel. Existing law requires the city or county to report this and other specified information to HCD. Existing law requires HCD to provide the reported information to the Department of General Services for inclusion in a digitized inventory of all state-owned parcels that are in excess of state needs. Existing law authorizes HCD to review, adopt, amend, and repeal standards, forms, and definitions to implement these inventory provisions and exempts those actions from the rulemaking provisions of the APA. This bill would delete that APA exemption. (4) Existing law requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before 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 that have notified HCD of their interest in surplus land, as specified. Existing law requires a local agency, before agreeing to terms for the disposition of surplus land, to provide to HCD a description of the notices of availability sent, and negotiations conducted with any responding entities, in regard to the disposal of the parcel of surplus land and a copy of any restrictions to be recorded against the property, as prescribed. Existing law makes a local agency that disposes of surplus land in violation of existing law, except as specified, after receiving specified notification from HCD that the local agency is in violation of existing law, liable for a penalty of 30% of the applicable disposition value for a first violation and 50% for any subsequent violation. Under existing law, a local agency is not liable for the penalty if HCD does not notify the agency that the agency is in violation of existing law within 30 days of receiving the description. Existing law requires HCD to review, adopt, amend, or repeal guidelines to establish uniform standards to implement these notice and penalty provisions and exempts those actions from the rulemaking provisions of the APA. This bill would delete that APA exemption.