AB 2525 California Assembly · 2025-2026 Regular Session

Surplus lands: Mission Bay Park.

Summary

Existing law prescribes requirements for the disposal of surplus land by a local agency. Existing law defines "surplus land" for these purposes to mean land owned in fee simple by any local agency for which the local agency's governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agency's use. Existing law requires that land be declared either "surplus land" or "exempt surplus land," as supported by written findings, before a local agency may take any action to dispose of it consistent with an agency's policies or procedures. Existing law provides that an agency is not required to follow the requirements for the disposal of surplus land for "exempt surplus land." Existing law defines "exempt surplus land" to include certain types of land. Existing law makes a local agency that disposes of surplus land, in violation of the requirements for the disposal of surplus land after receiving specified notification from the Department of Housing and Community Development that the local agency is in violation, liable for a penalty of 30% of the applicable disposition value for a first violation and 50% for any subsequent violation, as provided. This bill would expand the definition of "exempt surplus land" to include lands that comprise Mission Bay Park located within the City of San Diego, as provided. Among other requirements, the bill would require the city to provide the Department of Housing and Community Development a written notification of its declaration and findings, and any restrictions recorded against the property, at least 30 days prior to disposing of land declared exempt surplus land, and would require the department to notify the city if the department has determined the city is in violation of these provisions, as provided. This bill would require that the city meet specified requirements to declare exempt surplus land pursuant to these provisions, including depositing funds from the deposition into a local housing-specific set-aside account, as provided. The bill would provide that a violation of these provisions would be considered a 2nd or subsequent violation of the requirements for the disposal of surplus land, as provided. The bill would require that these requirements be contained in a covenant or restriction recorded against the surplus land at the time of disposition, as provided. This bill would make legislative findings and declarations as to the necessity of a special statute for Mission Bay Park.

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 20, 2026 Last action May 27, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

04/16/26 - Amended Assembly → AB2525 · 9 edits

MAJOR

The bill was substantially simplified, replacing a conditional exemption for Mission Bay Park lands with a blanket, unconditional exemption from the entire surplus land article. The previous version required the City of San Diego to meet multiple conditions (existing commercial use, lease requirements, public meeting declarations, 30-day HUD/CDCD notification) and carried civil penalty provisions for violations. All of these safeguards were removed in favor of a simple declaration that the lands are 'hereby exempted from this article.'

SCOPE

Section 54222.3.2(a) changed from 'shall be deemed exempt surplus land pursuant to subparagraph (T)' with multiple conditions to 'are hereby exempted from this article' - a blanket exemption from the entire surplus land article with no conditions attached.

REQUIREMENT

Removed requirement that Mission Bay Park lands must contain existing commercial, retail, hotel, parking, or conference use as of January 1, 2026 to qualify for exemption.

Removed requirement that expansion of existing uses must not encroach on land used for open space, public recreation, or park purposes.

Removed requirement that the land be subject to a lease agreement as a condition of exemption.

Removed requirement that the city declare the land exempt surplus land in a regular public meeting with specific findings (not necessary for agency use, no detriment to public use, lease area below 25-percent charter cap).

ENFORCEMENT

Removed the 30-day prior written notification requirement to the Department of Housing and Community Development before disposing of Mission Bay Park lands.

Removed civil penalty provisions, including the department's 30-day review period, the city's 60-day cure period, and liability for penalties upon violation.

FISCAL

Removed requirements that the city deposit a percentage of disposition value (10 percent or 30 percent) into a local housing-specific set-aside account as a condition of exemption.

DEFINITION

Added subsection (b) defining 'Mission Bay Park' as the land identified in the Mission Bay Park Master Plan Update adopted by the City Council on August 1, 1994, and updated on July 9, 2002.

04/06/26 - Amended Assembly → 04/16/26 - Amended Assembly · 8 edits · Apr 16, 2026

MODERATE

AB 2525 was substantially rewritten to replace a blanket exemption for Mission Bay Park lands from surplus land disposal rules with a conditional framework that requires the City of San Diego to meet specific housing affordability and financial contribution requirements before disposing of those lands. The bill now also amends the definitions section (Section 54221) to add Mission Bay Park as a new category of exempt surplus land, and removes the San Diego Unified Port District from the stewardship description. A violation is treated as a second or subsequent violation carrying a 50 percent penalty.

SCOPE

The bill now amends Section 54221 of the Government Code (the definitions section) in addition to adding Section 54222.3.2, expanding its reach into the general surplus land framework by adding a new subparagraph (T) defining Mission Bay Park lands as exempt surplus land when conditions are met.

Removed the San Diego Unified Port District from the stewardship language. The lands are now described as under the stewardship of the City of San Diego only, rather than jointly with the Port District.

REQUIREMENT

Added a two-pathway financial requirement: either (1) the city must have no violation notice in the past five years, have planned/entitled/permitted/occupied at least 4,000 housing units with 50 percent affordable to lower income households, and deposit 10 percent of disposition value into a local housing set-aside account; or (2) deposit 30 percent of the greater of final sales price or fair market value into that account.

Added conditions that the land must contain existing commercial, retail, hotel, parking, or conference use as of January 1, 2026; expansion of existing uses cannot encroach on open space or park land; and the land must be subject to a lease agreement.

Added a requirement that all conditions be contained in a covenant or restriction recorded against the surplus land at the time of disposition, running with the land and enforceable against successors in interest.

ENFORCEMENT

Added a 30-day prior written notification requirement to the Department of Housing and Community Development, a 30-day department review period, a 60-day cure period for alleged violations, and a provision that any violation is treated as a second or subsequent violation subject to the 50 percent penalty under Section 54230.5.

FISCAL

Added requirements that deposited funds be spent within three years on housing affordable to extremely low, very low, or low-income households, and that unspent funds revert to the state Building Homes and Jobs Trust Fund or Housing Rehabilitation Loan Fund for the same purpose in the same jurisdiction.

TECHNICAL

The fiscal committee designation changed from 'no' to 'yes,' reflecting the new fund creation and spending obligations imposed on the city.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 13, 2026

Lower · Passed

From committee: Do pass. (Ayes 15. Noes 0.) (May 13).

lower

Apr 23, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 1.) (April 22). Re-referred to Com. on APPR.

lower

Apr 20, 2026

Committee

Re-referred to Com. on H. & C.D.

lower

Apr 16, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.

lower

Apr 16, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on H. & C.D. (Ayes 10. Noes 0.) (April 15). Re-referred to Com. on H. & C.D.

lower

Apr 7, 2026

Committee

Re-referred to Com. on L. GOV.

lower

Apr 6, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.

lower

Mar 9, 2026

Committee

Referred to Coms. on L. GOV. and H. & C.D.

lower

Feb 21, 2026

Lower · Passed

From printer. May be heard in committee March 23.

lower

1 primary · 0 co-sponsors