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SB-765 Planning and zoning: streamlined approval process.(2017-2018)



Current Version: 06/14/18 - Amended Assembly        


SB765:v94#DOCUMENT

Amended  IN  Assembly  June 14, 2018
Amended  IN  Assembly  July 03, 2017
Amended  IN  Senate  May 26, 2017
Amended  IN  Senate  May 03, 2017
Amended  IN  Senate  March 29, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 765


Introduced by Senator Wiener
(Coauthors: Assembly Members Berman and Friedman)

February 17, 2017


An act to amend Sections 17457.5 and 17516 of, and to add Section 17463.5 to, the Education Code, Section 65913.4 of the Government Code, relating to school facilities. housing.


LEGISLATIVE COUNSEL'S DIGEST


SB 765, as amended, Wiener. School facilities: surplus real property: charter schools. Planning and zoning: streamlined approval process.
Existing law, until January 1, 2026, authorizes a development proponent to submit an application for a multifamily housing development, which satisfies specified objective planning standards, that is subject to a streamlined, ministerial approval process, as provided, and not subject to a conditional use permit. Existing law requires, among other objective planning standards, that the development be subject to a minimum percentage of below market rate housing on the basis that the locality failed to submit its latest production report by the applicable time period, or that if the report was submitted, it reflects either that there were fewer units of above-moderate-income housing approved than were required for the regional housing needs assessment cycle for that reporting period, that there were fewer units of housing affordable to households making below 80% of the area median income that were issued building permits than were required for the regional housing needs assessment cycle for that reporting period and the project seeking approval meets specified requirements, or that there were fewer units of housing affordable to any of the previously described income levels that were issued building permits than were required for the regional housing needs assessment cycle for that reporting period, as specified.
This bill would revise these provisions to provide that the development is subject to a minimum percentage of below market rate housing on the basis that the locality’s latest production report was submitted to the department within the time provided, and reflects either that there were fewer units of housing affordable to households making above 120% of the area median income that were issued building permits than were required for the regional housing needs assessment cycle for that reporting period, that there were fewer units of housing affordable to households making below 80% of the area median income that were issued building permits than were required for the regional housing needs assessment cycle for that reporting period and the project seeking approval meets specified requirements, or there were fewer units of housing affordable to households making between 80% and 120% of the area median income issued building permits than were required for the regional housing needs assessment cycle for that reporting period, and the project seeking approval meets specified requirements. Additionally, the bill would provide that the development is subject to a minimum percentage of below market rate housing on the basis that the locality failed to submit its latest 2 production reports by the applicable time period or either of the 2 latest production reports reflect that there were fewer units of housing affordable to households making above 120% and below 80% of the area median income than were required for the regional housing needs assessment cycle for that reporting period, as specified.

(1)Existing law, the Charter Schools Act of 1992, provides for the establishment and operation of charter schools and provides that a charter school may operate as, or be operated by, a nonprofit public benefit corporation. Under existing law, a charter school that is unable to locate within the jurisdiction of the chartering school district may, under specified circumstances, establish a site outside of the boundaries of the school district but within the county in which the school district is located.

Existing law law required, until July 1, 2016, the governing board of a school district seeking to sell or lease real property designed to provide direct instruction or instructional support that the governing board deemed to be surplus property to first provide a written offer to sell or lease that property to any charter school that had submitted a written request to the school district to be notified of surplus real property offered by the school district for sale or lease, as specified. That law required a charter school to use the real property sold or leased exclusively to provide direct instruction or instructional support.

Existing law, the Teacher Housing Act of 2016, authorizes a school district to establish and implement programs, as provided, that address the housing needs of teachers and school district employees who face challenges in securing affordable housing.

This bill would reinstate the requirement that expired on July 1, 2016, to first provide a written offer to the above-specified charter schools but would exempt from the requirement the governing board of a school district seeking to sell or lease real property it deems to be surplus property intended to be used in accordance with the Teacher Housing Act of 2016. The bill would limit the requirement to provide these written offers to only those charter schools that are operating as, or operated by, a nonprofit public benefit corporation and that are not located outside of the boundaries of the chartering school district pursuant to the provision applicable to a charter school unable to locate within the chartering school district. The bill would eliminate the specification that the real property deemed to be surplus real property must be designed to provide direct instruction or instructional support to be subject to the requirement to offer the property to eligible charter schools. The bill would require a charter school to complete school facilities construction, if any, and begin using the real property for direct instruction or instructional support within 5 years of the date the real property is made available to the charter school.

Existing law required, until July 1, 2016, that the price at which real property was sold to a charter school not exceed the school district’s cost of acquisition, adjusted as specified, and provided that in no event shall the price be less than 25% of the fair market value of the real property or less than the amount necessary to retire the share of local bonded indebtedness plus the amount of the original cost of the approved state aid applications on the property.

This bill would reinstate this requirement and would increase the price at which a school district may sell real property to a charter school to no less than 75% of the fair market value of the real property for a school district that has requested an emergency apportionment or submitted a negative certification to the State Department of Education in the past 2 years and to no less than 50% of the fair market value of the real property for a school district that has submitted a qualified certification to the department in the past 2 years.

Existing law required, until July 1, 2016, a charter school selling real property obtained pursuant to the these provisions to use the proceeds only for capital outlay, maintenance, and other facility-related costs.

This bill would reinstate this requirement, revised to specify that the proceeds shall be used only for capital outlay, maintenance, and other school facility-related costs.

(2)Existing law authorizes the proceeds from the sale or lease with option to purchase of surplus real property owned by a school district to be deposited into the general fund of the school district, to be used for one-time expenditures, if the governing board of the school district and the State Allocation Board have determined that the school district has no anticipated need for additional schoolsite or building construction for the 10-year period following the sale or lease with option to purchase, and the school district has no major deferred maintenance requirements.

This bill would authorize a school district to deposit the proceeds from the lease or sale of surplus real property, together with any personal property located on the property, leased or purchased by a charter school, into the general fund of the school district. The bill would also authorize the school district to use the proceeds, as defined, for any one-time general fund purpose, as specified. The bill would make these authorizations contingent upon the governing board of the school district and the State Allocation Board having determined that the school district has no anticipated need for schoolsite construction, building construction, or major deferred maintenance projects for a 10-year period following the sale or lease of the surplus real property. The bill would provide that, notwithstanding such a determination by the State Allocation Board, a school district may apply for new construction or modernization funding if specified conditions are satisfied.

(3)Existing law authorizes a school district to enter into leases and agreements relating to real property and buildings to be used jointly by the school district and any private person, firm, local governmental agency, or corporation, as specified. Existing law also requires that, before the governing board of a school district enters into a lease or agreement pursuant to this provision, it shall own a site upon which the building to be used by the school district and the private person, firm, local governmental agency, or corporation may be constructed, as specified.

This bill would additionally require that, before the governing board of a school district enters into a lease or agreement pursuant to this provision, it shall first offer to lease or sell the real property or buildings to a charter school, as specified, except when the property is intended to be used in accordance with the Teacher Housing Act of 2016. The bill would exempt from this requirement a lease or agreement that would be used solely to provide instructional programs that benefit pupils.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 65913.4 of the Government Code is amended to read:

65913.4.
 (a) A development proponent may submit an application for a development that is subject to the streamlined, ministerial approval process provided by subdivision (b) and not subject to a conditional use permit if the development satisfies all of the following objective planning standards:
(1) The development is a multifamily housing development that contains two or more residential units.
(2) The development is located on a site that satisfies all of the following:
(A) A site that is a legal parcel or parcels located in a city if, and only if, the city boundaries include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau, or, for unincorporated areas, a legal parcel or parcels wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B) A site in which at least 75 percent of the perimeter of the site adjoins parcels that are developed with urban uses. For the purposes of this section, parcels that are only separated by a street or highway shall be considered to be adjoined.
(C) A site that is zoned for residential use or residential mixed-use development, or has a general plan designation that allows residential use or a mix of residential and nonresidential uses, with at least two-thirds of the square footage of the development designated for residential use.
(3) If the development contains units that are subsidized, the development proponent already has recorded, or is required by law to record, a land use restriction for the following applicable minimum durations:
(A) Fifty-five years for units that are rented.
(B) Forty-five years for units that are owned.

(4)The development satisfies both of the following:

(A)Is located in a locality that the department has determined is subject to this subparagraph on the basis that the number of units that have been issued building permits is less than the locality’s share of the regional housing needs, by income category, for that reporting period. A locality shall remain eligible under this subparagraph until the department’s determination for the next reporting period. A locality shall be subject to this subparagraph if it has not submitted an annual housing element report to the department pursuant to paragraph (2) of subdivision (a) of Section 65400 for at least two consecutive years before the development submitted an application for approval under this section.

(B)

(4) The development is subject to a requirement mandating a minimum percentage of below market rate housing based on one of the following:

(i)

(A) The locality did not submit its latest locality’s production report was submitted to the department by the time period required by Section 65400, or that production report and reflects that there were fewer units of above moderate-income housing approved housing affordable to households making above 120 percent of the area median income that were issued building permits than were required for the regional housing needs assessment cycle for that reporting period. In addition, if the project contains more than 10 units of housing, the project seeking approval dedicates a minimum of 10 percent of the total number of units to housing affordable to households making below 80 percent of the area median income. If the locality has adopted a local ordinance that requires that greater than 10 percent of the units be dedicated to housing affordable to households making below 80 percent of the area median income, that zoning ordinance applies.

(ii)

(B) The locality did not submit its latest locality’s production report was submitted to the department by the time period required by Section 65400, or that production report and reflects that there were fewer units of housing affordable to households making below 80 percent of the area median income that were issued building permits than were required for the regional housing needs assessment cycle for that reporting period, and the project seeking approval dedicates 50 percent of the total number of units to housing affordable to households making below 80 percent of the area median income, unless the locality has adopted a local ordinance that requires that greater than 50 percent of the units be dedicated to housing affordable to households making below 80 percent of the area median income, in which case that ordinance applies.
(C) The locality’s production report was submitted to the department by the time period required by Section 65400 and reflects that there were fewer units of housing affordable to households making between 80 and 120 percent of the area median income issued building permits than were required for the regional housing needs assessment cycle for that reporting period, and the project seeking approval dedicates 50 percent of the total number of units of housing affordable to households making below 120 percent of the area median income.

(iii)

(D) The locality did not submit its two latest production report reports to the department by the time period required by Section 65400, or if either of the two latest production report reflects reports that were submitted reflect that there were fewer units of housing affordable to any both income level levels described in clause (i) or (ii) that were issued building permits than were required for the regional housing needs assessment cycle for that reporting period, the project seeking approval may choose between utilizing clause (i) or (ii). subparagraphs (A) or (B) than were required for the regional housing needs assessment cycle for that reporting period. In addition, if the project contains more than 10 units of housing, the project seeking approval dedicates a minimum of 10 percent of the total number of units to housing affordable to households making below 80 percent of the area median income. If the locality has adopted a local ordinance that requires that greater than 10 percent of the units be dedicated to housing affordable to households making below 80 percent of the area median income, that ordinance applies.
(5) The development, excluding any additional density or any other concessions, incentives, or waivers of development standards granted pursuant to the Density Bonus Law in Section 65915, is consistent with objective zoning standards and objective design review standards in effect at the time that the development is submitted to the local government pursuant to this section. For purposes of this paragraph, “objective zoning standards” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. These standards may be embodied in alternative objective land use specifications adopted by a city or county, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances, subject to the following:
(A) A development shall be deemed consistent with the objective zoning standards related to housing density, as applicable, if the density proposed is compliant with the maximum density allowed within that land use designation, notwithstanding any specified maximum unit allocation that may result in fewer units of housing being permitted.
(B) In the event that objective zoning, general plan, or design review standards are mutually inconsistent, a development shall be deemed consistent with the objective zoning standards pursuant to this subdivision if the development is consistent with the standards set forth in the general plan.
(6) The development is not located on a site that is any of the following:
(A) A coastal zone, as defined in Division 20 (commencing with Section 30000) of the Public Resources Code.
(B) Either prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation, or land zoned or designated for agricultural protection or preservation by a local ballot measure that was approved by the voters of that jurisdiction.
(C) Wetlands, as defined in the United States Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993).
(D) Within a very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Section 51178, or within a high or very high fire hazard severity zone as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code. This subparagraph does not apply to sites excluded from the specified hazard zones by a local agency, pursuant to subdivision (b) of Section 51179, or sites that have adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development.
(E) A hazardous waste site that is listed pursuant to Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the Department of Toxic Substances Control has cleared the site for residential use or residential mixed uses.
(F) Within a delineated earthquake fault zone as determined by the State Geologist in any official maps published by the State Geologist, unless the development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law (Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code), and by any local building department under Chapter 12.2 (commencing with Section 8875) of Division 1 of Title 2.
(G) Within a flood plain as determined by maps promulgated by the Federal Emergency Management Agency, unless the development has been issued a flood plain development permit pursuant to Part 59 (commencing with Section 59.1) and Part 60 (commencing with Section 60.1) of Subchapter B of Chapter I of Title 44 of the Code of Federal Regulations.
(H) Within a floodway as determined by maps promulgated by the Federal Emergency Management Agency, unless the development has received a no-rise certification in accordance with Section 60.3(d)(3) of Title 44 of the Code of Federal Regulations.
(I) Lands identified for conservation in an adopted natural community conservation plan pursuant to the Natural Community Conservation Planning Act (Chapter 10 (commencing with Section 2800) of Division 3 of the Fish and Game Code), habitat conservation plan pursuant to the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural resource protection plan.
(J) Habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code).
(K) Lands under conservation easement.
(7) The development is not located on a site where any of the following apply:
(A) The development would require the demolition of the following types of housing:
(i) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.
(ii)  Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.
(iii) Housing that has been occupied by tenants within the past 10 years.
(B) The site was previously used for housing that was occupied by tenants that was demolished within 10 years before the development proponent submits an application under this section.
(C) The development would require the demolition of a historic structure that was placed on a national, state, or local historic register.
(D) The property contains housing units that are occupied by tenants, and units at the property are, or were, subsequently offered for sale to the general public by the subdivider or subsequent owner of the property.
(8) The development proponent has done both of the following, as applicable:
(A) Certified to the locality that either of the following is true, as applicable:
(i) The entirety of the development is a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(ii) If the development is not in its entirety a public work, that all construction workers employed in the execution of the development will be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate. If the development is subject to this subparagraph, then for those portions of the development that are not a public work all of the following shall apply:
(I) The development proponent shall ensure that the prevailing wage requirement is included in all contracts for the performance of the work.
(II) All contractors and subcontractors shall pay to all construction workers employed in the execution of the work at least the general prevailing rate of per diem wages, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
(III) Except as provided in subclause (V), all contractors and subcontractors shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in therein.
(IV) Except as provided in subclause (V), the obligation of the contractors and subcontractors to pay prevailing wages may be enforced by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code, within 18 months after the completion of the development, by an underpaid worker through an administrative complaint or civil action, or by a joint labor-management committee though a civil action under Section 1771.2 of the Labor Code. If a civil wage and penalty assessment is issued, the contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Section 1742.1 of the Labor Code.
(V) Subclauses (III) and (IV) shall not apply if all contractors and subcontractors performing work on the development are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development and provides for enforcement of that obligation through an arbitration procedure. For purposes of this clause, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(VI) Notwithstanding subdivision (c) of Section 1773.1 of the Labor Code, the requirement that employer payments not reduce the obligation to pay the hourly straight time or overtime wages found to be prevailing shall not apply if otherwise provided in a bona fide collective bargaining agreement covering the worker. The requirement to pay at least the general prevailing rate of per diem wages does not preclude use of an alternative workweek schedule adopted pursuant to Section 511 or 514 of the Labor Code.
(B) (i) For developments for which any of the following conditions apply, certified that a skilled and trained workforce shall be used to complete the development if the application is approved:
(I) On and after January 1, 2018, until December 31, 2021, the development consists of 75 or more units that are not 100 percent subsidized affordable housing and will be located within a jurisdiction located in a coastal or bay county with a population of 225,000 or more.
(II) On and after January 1, 2022, until December 31, 2025, the development consists of 50 or more units that are not 100 percent subsidized affordable housing and will be located within a jurisdiction located in a coastal or bay county with a population of 225,000 or more.
(III) On and after January 1, 2018, until December 31, 2019, the development consists of 75 or more units that are not 100 percent subsidized affordable housing and will be located within a jurisdiction with a population of fewer than 550,000 and that is not located in a coastal or bay county.
(IV) On and after January 1, 2020, until December 31, 2021, the development consists of more than 50 units and will be located within a jurisdiction with a population of fewer than 550,000 and that is not located in a coastal or bay county.
(V) On and after January 1, 2022, until December 31, 2025, the development consists of more than 25 units and will be located within a jurisdiction with a population of fewer than 550,000 and that is not located in a coastal bay county.
(ii) For purposes of this section, “skilled and trained workforce” has the same meaning as provided in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.
(iii) If the development proponent has certified that a skilled and trained workforce will be used to complete the development and the application is approved, the following shall apply:
(I) The applicant shall require in all contracts for the performance of work that every contractor and subcontractor at every tier will individually use a skilled and trained workforce to complete the development.
(II) Every contractor and subcontractor shall use a skilled and trained workforce to complete the development.
(III) Except as provided in subclause (IV), the applicant shall provide to the locality, on a monthly basis while the development or contract is being performed, a report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. A monthly report provided to the locality pursuant to this subclause shall be a public record under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1) and shall be open to public inspection. An applicant that fails to provide a monthly report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code shall be subject to a civil penalty of ten thousand dollars ($10,000) per month for each month for which the report has not been provided. Any contractor or subcontractor that fails to use a skilled and trained workforce shall be subject to a civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of the skilled and trained workforce requirement. Penalties may be assessed by the Labor Commissioner within 18 months of completion of the development using the same procedures for issuance of civil wage and penalty assessments pursuant to Section 1741 of the Labor Code, and may be reviewed pursuant to the same procedures in Section 1742 of the Labor Code. Penalties shall be paid to the State Public Works Enforcement Fund.
(IV) Subclause (III) shall not apply if all contractors and subcontractors performing work on the development are subject to a project labor agreement that requires compliance with the skilled and trained workforce requirement and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subparagraph, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(C) Notwithstanding subparagraphs (A) and (B), a development that is subject to approval pursuant to this section is exempt from any requirement to pay prevailing wages or use a skilled and trained workforce if it meets both of the following:
(i) The project includes 10 or fewer units.
(ii) The project is not a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(9) The development did not or does not involve a subdivision of a parcel that is, or, notwithstanding this section, would otherwise be, subject to the Subdivision Map Act (Division 2 (commencing with Section 66410)) or any other applicable law authorizing the subdivision of land, unless either of the following apply:
(A) The development has received or will receive financing or funding by means of a low-income housing tax credit and is subject to the requirement that prevailing wages be paid pursuant to subparagraph (A) of paragraph (8).
(B) The development is subject to the requirement that prevailing wages be paid, and a skilled and trained workforce used, pursuant to paragraph (8).
(10) The development shall not be upon an existing parcel of land or site that is governed under the Mobilehome Residency Law (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 of Division 2 of the Civil Code), the Recreational Vehicle Park Occupancy Law (Chapter 2.6 (commencing with Section 799.20) of Title 2 of Part 2 of Division 2 of the Civil Code), the Mobilehome Parks Act (Part 2.1 (commencing with Section 18200) of Division 13 of the Health and Safety Code), or the Special Occupancy Parks Act (Part 2.3 (commencing with Section 18860) of Division 13 of the Health and Safety Code).
(b) (1) If a local government determines that a development submitted pursuant to this section is in conflict with any of the objective planning standards specified in subdivision (a), it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, as follows:
(A) Within 60 days of submittal of the development to the local government pursuant to this section if the development contains 150 or fewer housing units.
(B) Within 90 days of submittal of the development to the local government pursuant to this section if the development contains more than 150 housing units.
(2) If the local government fails to provide the required documentation pursuant to paragraph (1), the development shall be deemed to satisfy the objective planning standards specified in subdivision (a).
(c) Any design review or public oversight of the development may be conducted by the local government’s planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review or public oversight shall be objective and be strictly focused on assessing compliance with criteria required for streamlined projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submission of a development application, and shall be broadly applicable to development within the jurisdiction. That design review or public oversight shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(1) Within 90 days of submittal of the development to the local government pursuant to this section if the development contains 150 or fewer housing units.
(2) Within 180 days of submittal of the development to the local government pursuant to this section if the development contains more than 150 housing units.
(d) (1) Notwithstanding any other law, a local government, whether or not it has adopted an ordinance governing parking requirements in multifamily developments, shall not impose parking standards for a streamlined development that was approved pursuant to this section in any of the following instances:
(A) The development is located within one-half mile of public transit.
(B) The development is located within an architecturally and historically significant historic district.
(C) When on-street parking permits are required but not offered to the occupants of the development.
(D) When there is a car share vehicle located within one block of the development.
(2) If the development does not fall within any of the categories described in paragraph (1), the local government shall not impose parking requirements for streamlined developments approved pursuant to this section that exceed one parking space per unit.
(e) (1) If a local government approves a development pursuant to this section, then, notwithstanding any other law, that approval shall not expire if the project includes public investment in housing affordability, beyond tax credits, where 50 percent of the units are affordable to households making below 80 percent of the area median income.
(2) If a local government approves a development pursuant to this section and the project does not include 50 percent of the units affordable to households making below 80 percent of the area median income, that approval shall automatically expire after three years except that a project may receive a one-time, one-year extension if the project proponent can provide documentation that there has been significant progress toward getting the development construction ready, such as filing a building permit application.
(3) If a local government approves a development pursuant to this section, that approval shall remain valid for three years from the date of the final action establishing that approval and shall remain valid thereafter for a project so long as vertical construction of the development has begun and is in progress. Additionally, the development proponent may request, and the local government shall have discretion to grant, an additional one-year extension to the original three-year period. The local government’s action and discretion in determining whether to grant the foregoing extension shall be limited to considerations and process set forth in this section.
(f) A local government shall not adopt any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive ministerial or streamlined approval pursuant to this section.
(g) This section shall not affect a development proponent’s ability to use any alternative streamlined by right permit processing adopted by a local government, including the provisions of subdivision (i) of Section 65583.2.
(h) For purposes of this section:
(1) “Department” means the Department of Housing and Community Development.
(2) “Development proponent” means the developer who submits an application for streamlined approval pursuant to this section.
(3) “Completed entitlements” means a housing development which has received all the required land use approvals or entitlements necessary for the issuance of building permit.
(4) “Locality” or “local government” means a city, including a charter city, a county, including a charter county, or a city and county, including a charter city and county.
(5) “Production report” means the information reported pursuant to subparagraph (D) of paragraph (2) of subdivision (a) of Section 65400.
(6) “Subsidized” means units that are price or rent restricted such that the units are permanently affordable to households meeting the definitions of very low and lower income, as defined in Sections 50079.5 and 50105 of the Health and Safety Code.
(7) “Reporting period” means either of the following:
(A) The first half of the regional housing needs assessment cycle.
(B) The last half of the regional housing needs assessment cycle.
(8) “Urban uses” means any current or former residential, commercial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses.
(i) The department may review, adopt, amend, and repeal guidelines to implement uniform standards or criteria that supplement or clarify the terms, references, or standards set forth in this section. Any guidelines or terms adopted pursuant to this subdivision shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(j) This section shall remain in effect only until January 1, 2026, and as of that date is repealed.

SECTION 1.Section 17457.5 of the Education Code is amended to read:
17457.5.

(a)Notwithstanding Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of the Government Code, except when the real property is intended to be used in accordance with Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code, the governing board of a school district seeking to sell or lease real property it deems to be surplus property shall first offer that property for sale or lease to a charter school operating as, or operated by, a nonprofit public benefit corporation pursuant to subdivision (a) of Section 47604 that, at the time of the offer, has projections of at least 80 units of in-district average daily attendance for the following fiscal year, is not located outside of the boundaries of the chartering school district pursuant to subdivision (d) of Section 47605.1, and has submitted a written request to the school district to be notified of surplus property offered for sale or lease by the school district, pursuant to the following conditions:

(1)The real property sold or leased shall be used by the charter school exclusively to provide direct instruction or instructional support. A charter school shall complete school facilities construction, if any, and begin using the real property for direct instruction or instructional support within five years of the date the real property is made available to the charter school pursuant to the sale or lease.

(2)If the charter school purchased real property pursuant to this section and fails to comply with paragraph (1), or otherwise desires to dispose of the real property, all of the following shall apply:

(A)The charter school shall immediately offer that real property for sale to the school district that previously owned the property. The charter school shall comply, in that regard, with all requirements under this section that would otherwise apply to a school district.

(B)If the school district does not desire to purchase that real property from the charter school, the school district shall furnish a list of charter schools that have requested notification of surplus property pursuant to subdivision (a). The charter school that owns the real property shall offer that real property for sale to the charter schools on this list and comply with all requirements under this section that would otherwise apply to a school district. In the event the charter school selling property receives more than one offer, the charter school may determine to which charter school it will sell the property. The charter school purchasing the real property shall comply with all provisions of this section.

(C)If that real property remains unsold pursuant to subparagraph (A) or (B), the charter school selling the real property shall offer that property for sale pursuant to Article 5 (commencing with Section 17485). The charter school shall comply with all requirements under that article that would otherwise apply to a school district, except that a sale price computed under subdivision (a) of Section 17491 shall be based upon the cost of acquisition incurred by the school district that sold the property pursuant to this subdivision, rather than that incurred by the charter school.

(D)If all or part of the real property remains unsold pursuant to subparagraph (C), the charter school selling that real property shall dispose of the remaining property pursuant to subdivisions (c), (d), (e), and (f) of Section 17464. References in Section 17464 to a school district shall mean the charter school selling the real property.

(3)In the event, alternatively, of a lease of real property pursuant to this subdivision, the failure by the charter school to comply with paragraph (1) shall constitute a breach of the lease, entitling the school district to immediate possession of the real property, in addition to any damages to which the school district may be entitled under the lease agreement.

(4)The school district, and each of the entities authorized to receive offers of sale pursuant to this article or Article 5 (commencing with Section 17485), has standing to enforce the conditions set forth in this subdivision, and shall be entitled to the payment of reasonable attorney’s fees incurred as a prevailing party in any action or proceeding brought to enforce any of those conditions.

(b)A school district seeking to sell or lease real property it deems to be surplus property shall provide a written offer to a charter school that has submitted a written request to the school district to be notified of surplus property offered for sale or lease by the school district pursuant to subdivision (a). A charter school desiring to purchase or lease the property shall, within 60 days after a written offer is received, notify the school district of its intent to purchase or lease the property. In the event more than one charter school notifies the school district of its intent to purchase or lease the property, the governing board of the school district may determine to which charter school to sell or lease the property.

(c)(1)The price at which property described in this section is sold pursuant to this section shall not exceed the school district’s cost of acquisition, adjusted by a factor equivalent to the percentage increase or decrease in the cost of living from the date of purchase to the year in which the offer of sale is made, plus the cost of any school facilities construction undertaken on the property by the school district since its acquisition of the land, adjusted by a factor equivalent to the increase or decrease in the statewide cost index for class B construction, as annually determined by the State Allocation Board pursuant to Section 17072.10, from the year the improvement is completed to the year in which the sale is made. In the event a statewide cost index for class B construction is not available, the school district shall use a factor equal to the average statewide cost index for class B construction for the preceding 10 calendar years. The percentage of annual increase or decrease in the cost of living shall be the amount shown for January 1 of the applicable year by the then current Bureau of Labor Statistics Consumer Price Index for the area in which the schoolsite is located.

(2)In no event shall the price at which school district property described in this section is sold pursuant to this section be less than the amount necessary to retire the share of local bonded indebtedness plus the amount of the original cost of the approved state aid applications on the property, or less than any of the following, as applicable:

(A)For a school district that has requested an emergency apportionment in the past two years pursuant to Section 41320.2 or has submitted a negative certification to the State Department of Education in the past two years pursuant to Section 42131, less than 75 percent of the fair market value of the real property.

(B)For a school district that has submitted a qualified certification to the State Department of Education in the past two years pursuant to Section 42131, less than 50 percent of the fair market value of the real property.

(C)For a school district not described in subparagraph (A) or (B), less than 25 percent of the fair market value of the real property.

(d)Land that is leased pursuant to this section shall be leased at an annual rate of not more than 5 percent of the maximum sales price determined pursuant to subdivision (c), adjusted annually by a factor equivalent to the percentage increase or decrease in the cost of living for the immediately preceding year. The percentage of annual increase or decrease in the cost of living shall be the amount shown for January 1 of the applicable year by the then current Bureau of Labor Statistics Consumer Price Index for the area in which the schoolsite is located.

(e)The sale or lease of the real property of a school district, as authorized under subdivision (a), shall not occur until the school district advisory committee has held hearings pursuant to subdivision (c) of Section 17390.

(f)This section shall only apply to real property identified by a school district as surplus property after July 1, 2012.

(g)The construction of a school building, as defined in Section 17368, located on real property purchased by a charter school pursuant to this section shall comply with the design and construction requirements pursuant to Article 3 (commencing with Section 17280) and Article 6 (commencing with Section 17365). The reconstruction or alteration of, or an addition to, a school building, as defined in Section 17368, located on real property purchased by a charter school pursuant to this section is required to comply with the design and construction requirements pursuant to Article 3 (commencing with Section 17280) and Article 6 (commencing with Section 17365) only if the building complied with those sections on the date the real property was purchased by the charter school.

(h)A charter school selling real property obtained pursuant to this section shall use the proceeds only for capital outlay, maintenance, and other school facility-related costs.

SEC. 2.Section 17463.5 is added to the Education Code, to read:
17463.5.

(a)A school district may deposit the proceeds from the lease or sale of surplus real property, together with any personal property located on the property, leased or purchased by a charter school, into the general fund of the school district, and may use the proceeds for any one-time general fund purpose if the governing board of the school district and the State Allocation Board have determined that the school district has no anticipated need for schoolsite construction, building construction, or major deferred maintenance projects for a 10-year period following the sale or lease of the surplus real property. For purposes of this section, “proceeds” of the transaction means either of the following, as appropriate:

(1)The amount realized from the lease or sale of property, less reasonable expenses related to the lease or sale.

(2)For a transaction that does not result in a lump-sum payment of the proceeds of the transaction, the proceeds of the transaction shall be calculated as the net present value of the future cashflow generated by the transaction.

(b)Notwithstanding a determination by the State Allocation Board pursuant to subdivision (a) that a school district has no anticipated need for schoolsite construction, building construction, or major deferred maintenance projects for a 10-year period following the sale or lease of surplus real property, the school district may apply for new construction or modernization funding pursuant to this chapter if both of the following conditions are satisfied:

(1)Five years have elapsed since the date the sale or lease was executed.

(2)The State Allocation Board determines that the school district has demonstrated enrollment growth or a need for additional schoolsite or building construction that the school district could not have easily anticipated at the time the State Allocation Board made its original determination that the school district had no anticipated need for the 10-year period following the sale or lease.

SEC. 3.Section 17516 of the Education Code is amended to read:
17516.

(a)(1)Before the governing board of a school district enters into a lease or agreement pursuant to this article, it shall first offer to lease or sell the real property and buildings to a charter school pursuant to Section 17457.5, except when the property is intended to be used in accordance with Part 14 (commencing with Section 53570) of Division 31 of the Health and Safety Code. This paragraph shall not apply to a lease or agreement entered into pursuant to this article that would be used solely to provide instructional programs that benefit pupils.

(2)Before the governing board of a school district enters into a lease or agreement pursuant to this article, the school district shall own a site upon which a building to be used by the school district and private person, firm, local governmental agency, as defined in paragraph (3) of subdivision (f) of Section 4420 of the Government Code, or corporation may be constructed and shall have complied with the provisions of law relating to the selection and approval of sites.

(b)This section shall not apply to any building to be acquired by purchase pursuant to Article 2 (commencing with Section 17110) of Chapter 15 of Part 10.