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SB-791 California Surplus Land Unit.(2021-2022)

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Date Published: 04/19/2021 09:00 PM
SB791:v97#DOCUMENT

Amended  IN  Senate  April 19, 2021
Amended  IN  Senate  March 11, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 791


Introduced by Senator Cortese

February 19, 2021


An act to add Part 17 (commencing with Section 54900) to Division 31 of the Health and Safety Code, relating to land use.


LEGISLATIVE COUNSEL'S DIGEST


SB 791, as amended, Cortese. California Surplus Land Authority. Unit.
Existing law establishes the California Housing Finance Agency within the Department of Housing and Community Development, with the primary purpose of meeting the housing needs of persons and families of low or moderate income.
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 authorizes the governing board of any school district to sell or lease, for a term not exceeding 99 years, any real property belonging to the school district which is not or will not be needed by the district for school classroom buildings at the time of delivery of title or possession.

Existing law authorizes the Director of General Services to dispose of surplus state real property if that property is not needed by another state agency and the Legislature has authorized disposal of the property. Existing law also specifies the manner in which the department is to dispose of surplus state real property.

This bill would, upon appropriation by the Legislature, establish the California Surplus Land Authority Unit within the Department of Housing and Community Development with the primary purpose of facilitating the development and construction of residential housing on state and local surplus property, as defined. In this regard, the bill would authorize the authority unit to, among other things, facilitate agreements between housing developers and local agencies that seek to dispose of surplus land; provide advice, technical assistance, and consultative and technical service to local agencies with surplus land and developers that seek to develop housing on the surplus land; raise, administer, and allocate funding to facilitate the development of residential housing on surplus land; assist developers and local agencies in becoming more attractive applicants for financing through financial instruments, including credit enhancements, letters of credit, insurance, and guarantees; and enter into joint ventures with local agencies and developers to develop and manage housing developments on surplus land. and collaborate with specified state agencies to assist housing developers and local agencies with obtaining grants, loans, tax credits, credit enhancements, and other types of financing that facilitate the construction of housing on surplus land.

The bill would require that the authority be administered and governed by the same board of directors that governs and administers the California Housing Finance Agency. The bill would require the authority board to form an advisory committee composed of 9 representatives with knowledge and experience in the areas of affordable housing finance and development, tenant protection, and housing preservation and would require the advisory committee to assist in the development of funding guidelines and the overall implementation of these provisions, as specified. The bill would designate an executive director for the authority to administer the day-to-day operations of the authority and would authorize the authority to utilize staff employed by the California Housing Finance Agency.

The bill would establish the California Surplus Land Fund in the state treasury and provide that all moneys in the fund be made available to the authority unit for carrying out the purposes of these provisions upon appropriation by the Legislature. The bill would require the executive director of the authority to prepare a preliminary budget on or before December 1 of each year for the ensuing fiscal year to be reviewed by the Secretary of Business, Consumer Services, and Housing, the Director of Finance, and the Joint Legislative Budget Committee. The bill would require the authority to cause an audit of its books and accounts at least once during each fiscal year by an independent certified public accountant. provide that eligible activities for expenditures from the fund include, but are not limited to, acquiring local surplus property for purposes of affordable housing development, funding or financing affordable housing development on local surplus property, and providing technical assistance to developers and local agencies for the acquisition and financing of affordable housing on local surplus lands.
The bill would require the authority unit to, by December 31 of each year, submit an annual report of its activities under these provisions for the preceding year to the Governor, the Secretary of Business, Consumer Services and Housing, the Director of Housing and Community Development, the Treasurer, the Joint Legislative Budget Committee, the Legislative Analyst, and the Legislature, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Part 17 (commencing with Section 54900) is added to Division 31 of the Health and Safety Code, to read:

PART 17. California Surplus Land Authority Unit

CHAPTER  1. General Provisions

54900.
 For purposes of this part:

(a)“Authority” means the California Surplus Land Authority established pursuant to Section 54901.

(b)“Authority board” means the board of directors established pursuant to Section 54902.

(c)“Executive director” means the executive director of the authority under Section 54903.

(d)

(a) “Local agency” means a city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.

(e)

(b) “Surplus land” shall mean any of the following:
(1) Land declared surplus by a local agency pursuant to Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of the Government Code.

(2)Land declared excess by a state agency pursuant to Section 11011 of the Government Code.

(3)

(2) Land declared surplus by a school district pursuant to Article 4 (commencing with Section 17455) of Chapter 4 of Part 10.5 of Division 1 of Title 1 of the Education Code.

(4)

(3) Any other land owned or formally owned by a state or local agency upon which a development proponent seeks to construct housing.
(c) “Unit” means the California Surplus Land Unit established pursuant to Section 54901.

54901.
 The California Surplus Land Authority Unit is hereby created within in the Department of Housing and Community Development. The authority constitutes a public instrumentality and a political subdivision of the state, and the exercise by the authority of the powers conferred by this division shall be deemed and held to be the performance of an essential public function.

54902.

(a)(1)The authority shall be administered and governed by a board of directors. The board of directors that governs and administers the California Housing Finance Agency shall serve as the board of the authority board.

(2)A member of the authority board shall exercise independent judgment on behalf of the interests of the local agencies, California residents, and the general public in furthering the intent and purposes of this title.

(b)(1)The authority board shall form an advisory committee composed of nine representatives with knowledge and experience in the areas of affordable housing finance and development, tenant protection, and housing preservation. The advisory committee shall assist in the development of funding guidelines and the overall implementation of this part.

(2)Consistent with the provisions of this part, the advisory committee shall provide consultation and make recommendations to the authority board. The advisory committee shall meet as necessary to fulfill its roles and responsibilities.

54903.

(a)The executive director of the California Housing Finance Agency shall administer the day-to-day operations of the authority, subject solely to supervision by the board.

(b)The executive director may from time to time employ technical experts and other employees as may, in their judgment, be necessary for the conduct of the business of the authority.

54904.

All meetings of the board and of all committees of the board including those committees whose membership constitutes less than a quorum of the board shall be open and public and all persons shall be permitted to attend and address the board or its committees, except when the meetings are held as executive sessions as authorized by Section 11126 of the Government Code.

54905.54902.
 Implementation of this part shall be subject to an appropriation of funds by the Legislature for purposes of establishing and funding the activities of the authority. unit.

CHAPTER  2. Authority Unit Duties and Powers

54910.
 The primary purpose of the authority unit is to facilitate the development and construction of residential housing on state and local surplus property. In furtherance of this purpose, the authority unit may do any of the following:
(a) Connect and coordinate qualified Facilitate agreements between housing developers with state and local agencies that seek to dispose of surplus land.
(b) Provide advice, technical assistance, and consultative and technical service to local agencies with surplus land and developers that seek to develop housing on the surplus land.
(c) Collaborate with the California Housing Finance Agency, the California Tax Credit Allocation Committee, the California Debt Limit Allocation Committee, and any other relevant state agency to assist housing developers and local agencies with obtaining grants, loans, tax credits, credit enchantments, and other types of financing that facilitate the construction of housing on surplus land.

(d)Raise, administer, and allocate funding to facilitate the development of residential housing on surplus land.

(e)Assist

(d) Provide technical assistance to developers and local agencies in becoming more attractive applicants for financing through financial instruments including credit enhancements, letters of credit, insurance, and guarantees. regarding available funding and financing instruments.

(f)Enter into joint ventures with local agencies and developers to buy, sell, and accept in-kind contributions of state, local, and special district surplus land.

(g)Enter into joint ventures with local agencies and developers to develop and manage housing developments on surplus land.

(h)

(e) Collect and compile data on housing production and monitor progress on meeting regional and state housing goals. on local surplus land.

54911.
 In implementing this part, the authority unit may do all of the following:

(a)Apply for and receive grants or loans from public and private entities.

(b)Sue and be sued in its own name.

(c)Utilize staff employed by California Housing Finance Agency.

(d)Maintain offices at any place or places within the state which it may designate.

(e)

(a) Employ architects, engineers, attorneys, accountants, housing construction and financial experts, and such other advisers, consultants, and agents as may be necessary in its judgment and fix their compensation.

(f)Have an official seal and alter the same at pleasure.

(g)Enter into joint powers agreements pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code).

(h)

(b) Notwithstanding any other provision of law, make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this part with any governmental agency, private corporation or other entity, or individual, and contract with any local public entity for processing of any aspect of financing housing developments. Contracts made or executed under the authority of this part shall not be subject to any applicable provision of law requiring competitive bidding or the supervision or approval of another division or officer of state government.

(i)

(c) Acquire real or personal property, or any interest therein, on either a temporary or long-term basis in its own name by gift, purchase, transfer, foreclosure, a deed in lieu of foreclosure, lease, option, or otherwise, including easements or other incorporeal rights in property.

(j)

(d) (1) Hold, sell, assign, lease, encumber, mortgage, or otherwise dispose of any real or personal property or any interest therein.
(2) Hold, sell, assign, or otherwise dispose of any mortgage interest owned by it, under its control or custody, or in its possession.
(3) As applicable, any of the acts specified in this subdivision by public or private sale, with or without public bidding, notwithstanding any other provision of law.

(k)

(e) Notwithstanding any other provision of law, insure or reinsure against any loss in connection with its property and other assets, including mortgages and mortgage loans, in amounts, in the manner, and from those insurers as it deems desirable.

(l)

(f) Establish, revise from time to time, and charge and collect fees and charges in connection with loans made or insured by the authority. its duties and responsibilities.

(m)

(g) Enter agreements and perform acts as are necessary to obtain and maintain federal housing subsidies for use in connection with housing developments.

(n)

(h) Provide bilingual staff and make available authority unit publications in a language, other than English, where necessary to effectively serve all groups for which those services or publications are made available.

(o)Require any individual, corporation, or other legal entity operating, managing, or providing maintenance services for a housing development or a residential structure to maintain a current certificate of qualification developed and approved by the authority.

(p)Do any and all things necessary to carry out its purposes and exercise the powers expressly granted by this part.

54912.
 The authority unit shall not do either of the following:
(a) Regulate or enforce local land use decisions.
(b) Acquire property by eminent domain.

54913.
 (a) This part shall not relieve a state or local agency or a housing developer from complying with any disposal requirements or conditions applicable to disposal of government owned property, including any of the following:
(1) Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of the Government Code.
(2) Sections 11011 to 11011.29, inclusive, of the Government Code.
(3) Article 4 (commencing with Section 17455) of Chapter 4 of Part 10.5 of Division 1 of Title 1 of the Education Code.
(b) This part shall not be construed to authorize the authority unit or any state or local agency to develop, construct, or acquire a low rent housing project without complying with Article XXXIV of the California Constitution.

54914.
 The authority unit may adopt, and from time to time amend and repeal, by action of the board, either resolutions, or rules or regulations, not inconsistent with this part, to carry into effect the powers and purposes of the authority unit and the conduct of its business, except where this part expressly requires the authority to act by rule or regulation. business. If the authority unit acts by rule or regulation, the rule or regulation shall be adopted, amended, repealed, and published in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

54915.
 (a) The authority (1) The unit shall, by December 31 of each year, submit an annual report report, in accordance with Section 9795 of the Government Code, of its activities under this part for the preceding year to the Governor, the Secretary of Business, Consumer Services and Housing, the Director of Housing and Community Development, the Treasurer, the Joint Legislative Budget Committee, the Legislative Analyst, and the Legislature. The report shall set forth a complete operating and financial statement of the authority unit during the concluded fiscal year. The report shall specify the number of housing units assisted, the distribution of housing units among the metropolitan, nonmetropolitan, and rural areas of the state, and shall contain a summary of statistical data relative to the incomes of households occupying assisted units, the monthly rentals charged to occupants of rental housing developments, and the sales prices of residential structures purchased during the previous fiscal year by persons or families of low or moderate income.
(2) The report shall specify all of the following information:
(A) The number of housing units assisted.
(B) The distribution of assisted housing units among the metropolitan, nonmetropolitan, and rural areas of the state.
(C) The affordability levels of assisted rental and for-sale units, both in aggregate and at the individual project level.
(D) Demographic information for the households occupying assisted housing units, both in aggregate and at the individual project level.
(E) A breakdown of state, local, and other funding sources for each assisted housing development.
(b) The report shall also include specific information evaluating an evaluation of the extent to which the programs administered by the authority unit have attained the statutory objectives of the authority. its statutory objectives and recommendations for additional resources or authority, or both, that the Legislature could provide to enhance the efforts of the unit.

(c)A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

CHAPTER  3. Financial Provisions

54920.
 (a) The California Surplus Land Fund is hereby created in the State Treasury.
(b) (1) Upon appropriation by the Legislature, all moneys in the fund shall be made available to the authority unit for carrying out the purposes of this part.
(2) All moneys accruing to the authority unit pursuant to this part from whatever source shall be deposited in the fund.
(c) (1) Eligible activities for expenditures from the fund shall include, but not be limited to, any of the following:
(A) Acquiring local surplus property for purposes of affordable housing development.
(B) Funding or financing of affordable housing development on local surplus property.
(C) Providing technical assistance to developers and local agencies for the acquisition and financing of affordable housing on local surplus lands.
(2) No more than 5 percent of the unit’s annual expenditures shall be directed to administrative expenses of the unit.

54921.

For its activities under this division, the executive director shall prepare a preliminary budget on or before December 1 of each year for the ensuing fiscal year to be reviewed by the Secretary of Business, Consumer Services, and Housing, the Director of Finance, and the Joint Legislative Budget Committee.

54922.

(a)The authority may charge and collect from recipients of services under this part, such fees and charges for the purpose of defraying administrative and other expenses as the authority may establish from time to time.

(b)Fees and charges collected pursuant to this section shall be deposited into the California Surplus Land Fund.

54923.

The authority shall cause an audit of its books and accounts with respect to its activities under this division to be made at least once during each fiscal year by an independent certified public accountant and the authority shall be subject to audit by the Department of Finance not more than once each fiscal year.