118.8.
(a) (1) The department may sell its excess real property, as defined in Section 118.6, to the city, county if the real property is located in an unincorporated area, or city and county if applicable, where the real property is located if the city, county, or city and county agrees to use the real property solely for purposes of implementing affordable housing, as defined in Section 62250 of the Government Code, an emergency shelter, or a feeding program.(2) The sales price shall be the price paid by the department in the original acquisition, which shall not be adjusted for inflation.
(3) The department shall identify the real property eligible for sale pursuant to this subdivision.
(4) Upon the department identifying eligible real property pursuant to paragraph (3), the department shall notify the city, county, or city and county where the real property is located of the real property’s eligibility for sale.
(5) Within 60 days of receiving notice pursuant to paragraph (4), the city, county, or city and county shall notify the department of its interest in accepting or declining the sale of real property.
(6) For real property sold pursuant to this subdivision, the city, county, or city and county shall do both of the following:
(A) Ensure the real property is used for purposes of affordable housing, an emergency shelter, or a feeding program for a term of at least 55 years. The purchase and operation of the real property shall be subject to a covenant recorded against the real property that requires the real property to remain available for those purposes.
(B) Ensure any new units added to the property are used only for purposes of affordable housing, an emergency shelter, or a feeding program.
(7) The department may designate in regulations, or delegate by agreement to, a public agency to monitor the use of real property sold pursuant to this subdivision. The monitoring agency may charge the real property owner a fee to recover the cost of this monitoring.
(b) Except as provided in subdivision (f), the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) and Section 5024.5 of the Public Resources Code do not apply to the sale of real property pursuant to this section.
(c) (1) All real property sold pursuant to this section shall be “as is” and the department shall have no further obligation or liability whatsoever for conditions existing at the time of the sale or occurring after that time, including, to the full extent permitted by law, any costs or other obligations related to the remediation of hazardous materials. Compliance with all applicable environmental laws, including, but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) and Sections 5024.5 and 5027 of the Public Resources Code, shall be the sole responsibility of the purchaser. Zoning and other laws related to the use of the real property shall be the sole responsibility of the purchaser.
(2) As a condition of sale, the purchaser shall agree to indemnify and hold harmless the department and its officers, officials, employees, agents, and volunteers from and against any and all losses, claims, damages, obligations, penalties, judgments, awards, and other liabilities, including attorney’s fees, whether caused by, relating to, based upon, arising out of, or in connection with the real property being sold and any subsequent use of that real property.
(d) By accepting the sale, the purchaser accepts full responsibility for ensuring that the real property will be used solely for the purposes enumerated in this section. The purchaser shall record in the office of the county recorder the covenants or restrictions implementing this section. Notwithstanding any other law, the covenants or restrictions shall run with the land and shall be enforceable against the original purchaser receiving the property from the department and all successors in interest. The purchaser shall ensure that, at all times, uses of the real property remain compatible and do not interfere with the maintenance, operations, and safe use of remaining adjacent or nearby department real property and any transportation facilities, as determined by the department.
(e) This section does not apply to real property sales governed by Article 8.5 (commencing with Section 54235) of Chapter 5 of Part 1 of Division 2 of Title 5 of the Government Code.
(f) Notwithstanding subdivision (b), if the department sells real property pursuant to this section, the department shall file a notice of exemption with the Office of Planning and Research and the county clerk of the county in which the real property is located in the manner specified in subdivisions (b) and (c) of Section 21152 of the Public Resources Code.
(g) It is the intent of the Legislature to promote the use of skilled and trained labor for these types of potential affordable housing projects.