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



Current Version: 05/20/21 - Amended Senate Compare Versions information image


SB791:v96#DOCUMENT

Amended  IN  Senate  May 20, 2021
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 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.
This bill would, upon appropriation by the Legislature, establish the California Surplus Land Unit within the Department of Housing and Community Development with the primary purpose of facilitating the development and construction of residential housing on local surplus property, as defined. In this regard, the bill would authorize the 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; 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 the unit to require a recipient of property, funding, or financing from the unit to certify that specific requirements regarding the payment of prevailing wages and the use of a skilled and trained workforce on the development are met, except as provided.
The bill would establish the California Surplus Land Fund in the state treasury State Treasury and provide that all moneys in the fund be made available to the unit for carrying out the purposes of these provisions upon appropriation by the Legislature. The bill would 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 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 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.
By requiring a recipient to certify certain information under penalty of perjury, the bill would expand the crime of perjury and impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NOYES  

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 Unit

CHAPTER  1. General Provisions

54900.
 For purposes of this part:
(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.
(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 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.
(3) Any other land owned or formally owned by a 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 Unit is hereby created within the Department of Housing and Community Development.

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 unit.

CHAPTER  2. Unit Duties and Powers

54910.
 The primary purpose of the unit is to facilitate the development and construction of residential housing on local surplus property. In furtherance of this purpose, the unit may do any of the following:
(a) Facilitate agreements between housing developers 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) Provide technical assistance to developers and local agencies regarding available funding and financing instruments.
(e) Collect and compile data on housing production on local surplus land.

54911.
 In implementing this part, the unit may do all of the following:
(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.
(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.
(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.
(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.
(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.
(f) Establish, revise from time to time, and charge and collect fees and charges in connection with its duties and responsibilities.
(g) Enter agreements and perform acts as are necessary to obtain and maintain federal housing subsidies for use in connection with housing developments.
(h) Provide bilingual staff and make available unit publications in a language, other than English, where necessary to effectively serve all groups for which those services or publications are made available.

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

54913.
 (a) When the unit sells or leases property for development, or allocates funding or financing from the California Surplus Land Fund to pay for development or for the acquisition of land for development, the unit shall require the recipient of the property, funding, or financing to do both of the following:
(1) Certify to the unit that either of the following is true:
(A) The entirety of the development is a public work for which prevailing wages must be paid for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(B) The development is not in its entirety a public work for which prevailing wages must be paid under Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code, but all construction workers employed for the construction 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 recipient shall ensure that the prevailing wage requirement is included in all contracts for the performance of all construction 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 clause (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 therein.
(iv) Except as provided in clause (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, or 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) Clauses (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.
(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.
(2) Certify to the unit that a skilled and trained workforce will be used to perform all construction work on the development.
(A) If the recipient is a public agency, the recipient shall obtain an enforceable commitment from any developer or contractor that undertakes work on the development that the developer or contractor, and all subcontractors at every tier, will use a skilled and trained workforce to perform the work.
(B) If the recipient is a private entity, the recipient shall provide an enforceable commitment to the unit that any developer or contractor that undertakes work on the development, and all subcontractors at every tier, will use a skilled and trained workforce to perform the work.
(C) Subparagraphs (A) and (B) shall not apply if all contractors and subcontractors performing work on the development will be bound by a project labor agreement to use a skilled and trained workforce.
(b) For purposes of this section:
(1) “Project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(2) “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.

54913.54914.
 (a) This part shall not relieve a 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 unit or any local agency to develop, construct, or acquire a low rent housing project without complying with Article XXXIV of the California Constitution.

54914.54915.
 The unit may adopt, and from time to time amend and repeal, rules or regulations, not inconsistent with this part, to carry into effect the powers and purposes of the unit and the conduct of its business. If the 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.

54915.54916.
 (a) (1) The unit shall, by December 31 of each year, submit an annual 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 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 unit during the concluded fiscal year.
(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 an evaluation of the extent to which the programs administered by the unit have attained its statutory objectives and recommendations for additional resources or authority, or both, that the Legislature could provide to enhance the efforts of the unit.

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 unit for carrying out the purposes of this part.
(2) All moneys accruing to the 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.

SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.