| Senate Bill No. 416 |
| CHAPTER 468 |
An act to amend Sections 54236 and 54237 of, and to add Sections
54237.3, 54237.7, and 54237.8 to, the Government Code, relating to
surplus residential property, and making an appropriation therefor.
[
Approved by
Governor
October 01, 2013.
Filed with
Secretary of State
October 01, 2013.
]
LEGISLATIVE COUNSEL'S DIGEST
SB 416, Liu.
Surplus residential property.
Existing
law declares the intent of the Legislature to preserve, upgrade, and
expand the supply of housing to persons and families of low or moderate
income, through the sale of specified surplus residential property owned
by public agencies. Existing law establishes priorities and procedures
that any state agency disposing of that surplus residential property is
required to follow, and defines relevant terms for these purposes,
including “fair market value.”
This
bill would revise the definition of “fair market value” for purposes of
the sale of this surplus residential property, to reflect the existing
“as is” condition of the property, taking into account any needed
repairs.
Existing law requires
specified single-family residences to be first offered to their present
occupants, at an affordable
price, as defined. Under existing law, the selling agency has the
option of making repairs to the property required by lenders or
government assistance programs, or providing the occupants with a
replacement dwelling, pursuant to a specified provision of law.
This
bill would revise the procedures applicable to the sale of these
surplus residential properties not otherwise sold pursuant to existing
procedures, to be offered to current and former tenants in good
standing, respectively, and to purchasers who will be owner occupants.
The bill additionally would require the selling agency to offer tenants
in good standing of nonresidential properties to be given priority to
purchase the property they occupy. The bill would authorize the
Department of Transportation to offer a residence or property in an “as
is” condition, at the request of a person with priority to purchase the
residence or property in accordance with existing law.
This
bill would require proceeds from sales of surplus residential property
to be placed in the SR-710 Rehabilitation Account, created by the bill,
and would continuously appropriate these funds for the purpose of
providing specified repairs to the properties until the last of the
properties is repaired, at which time the funds, less any reimbursements
due to the federal government, would be transferred to the State
Highway Account, for allocation by the California Transportation
Commission, as specified.
This bill
would provide that the preliminary project alternative referred to as
Alternative F-6 in the December 2012 Alternative Analysis Report of the
Los Angeles Metropolitan Transportation Authority shall no longer be
deemed a feasible alternative for consideration in any state
environmental review process for the Interstate 710 North Gap
Closure project, as specified.
Digest Key
Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 54236 of the Government Code is amended to read:54236.
(a) As used in this article, the term “offer” means to solicit proposals prior to sale in a manner calculated to achieve a sale under the conditions specified, and to hold the offer open for a reasonable period of time, which shall be no more than one year, unless the time is extended by the selling agency at its discretion, for a period to be specified by the selling agency.
(b) As used in this
article, the term “affordable price” means, in the case of a purchaser,
other than a lower income household, the price for residential property
for which the purchaser’s monthly payments will not exceed that portion
of the purchasing household’s adjusted income
as determined in accordance with the regulations of the United
States Department of Housing and Urban Development, issued pursuant to
Section 235 of the National Housing Act; and, in the case of a purchaser
that is a lower income household, the price for residential property
for which the purchaser’s monthly payments will not exceed that portion
of the purchasing household’s adjusted income as determined in
accordance with the regulations of the United States Department of
Housing and Urban Development issued pursuant to Section 8 of the United
States Housing Act of 1937.
(c) As
used in this article, the term “single-family residence” means a real
property improvement used, or intended to be used, as a dwelling unit
for one family.
(d) As used in this
article, the term “surplus
residential property” means land and structures owned by any
agency of the state that is determined to be no longer necessary for the
agency’s use, and that is developed as single-family or multifamily
housing, except property being held by the agency for the purpose of
exchange.
Surplus residential
properties shall only include land and structures that, at the time of
purchase by the state, the state had intended to remove the residences
thereon and to use the land for state purposes.
(e) As
used in this article, the term “displacement” includes, but is not
limited to, persons who will have to move from surplus residential
property that they occupy when it is sold by a state agency because they
are unable to afford to pay the price that the state agency is asking
for the residential property.
(f) As
used in this article, the term “fair market value” shall mean fair
market value as of the date the offer of sale is made by the selling
agency pursuant to the provisions of this article and shall reflect the
existing “as is” condition of the property, taking into account any
repairs required to make the property safe and habitable. This
definition shall not apply to terms of sale that are described as
mitigation measures in an environmental study prepared pursuant to the
Public Resources Code if the study was initiated before this measure was
enacted.
(g) As used in this
article, the term “affordable rent” means, in the case of an occupant
person or family, other than a person or family of low or moderate
income, rent for residential property that is not more than 25
percent of the occupant household’s gross monthly income, and in
the case of an occupant person or family of low or moderate income, rent
for residential property that is not more than the percentage of the
adjusted income of the occupant person or family as permitted under
regulations of the United States Department of Housing and Urban
Development issued pursuant to Section 8 of the United States Housing
Act of 1937, but not in excess of the market rental value for comparable
property.
(h) As used in this
article, the term “area median income” means median household income,
adjusted for family size as determined in accordance with the
regulations of the United States Department of Housing and Urban
Development issued pursuant to Section 235 of the National Housing Act,
as amended (Public Law 90-448), for the standard metropolitan
statistical
area (SMSA), in which surplus residential property to be disposed
of pursuant to this article is located, or the county in which the
property is located, if it is outside an SMSA.
(i) As
used in this article, the term “persons and families of low or moderate
income” means persons and families who meet both of the following
conditions:
(1) Meet the definition
of persons and families of low or moderate income set forth in Section
50093 of the Health and Safety Code.
(2) Have not had an ownership interest in real property in the last three years.
(j) As used in this article, the term “lower income households” means lower income households as defined in
Section 50079.5 of the Health and Safety Code.
SEC. 2.
Section 54237 of the Government Code is amended to read:54237.
(a) Notwithstanding Section 11011.1, any agency of the state disposing of surplus residential property shall do so in accordance with the following priorities and procedures:
(1) First,
all single-family residences presently occupied by their former owners
shall be offered to those former owners at the appraised fair market
value.
(2) Second, all single-family
residences shall be offered, pursuant to this article, to their present
occupants who have occupied the property two years or more and who are
persons and families of low or moderate income.
(3) Third,
all single-family residences shall be offered, pursuant to this
article, to their present occupants who have occupied the property five
years or more and whose household income does not exceed 150 percent of
the area median income.
(4) Fourth, a
single-family residence shall not be offered, pursuant to this article,
to present occupants who are not the former owners of the property if
the present occupants have had an ownership interest in real property in
the last three years.
(b) Single-family
residences offered to their present occupants pursuant to paragraphs
(2) and (3) of subdivision (a) shall be offered to those present
occupants at an affordable price, which price shall not be less than the
price paid by the agency for original acquisition, unless the
acquisition price was greater than the current fair market value,
and shall not be greater than fair market value. When single-family
residences are offered to present occupants at a price that is less than
fair market value, the selling agency shall impose terms, conditions,
and restrictions to ensure that the housing will remain available to
persons and families of low or moderate income and households with
incomes no greater than the incomes of the present occupants in
proportion to the area median income. The Department of Housing and
Community Development shall provide to the selling agency
recommendations of standards and criteria for these prices, terms,
conditions, and restrictions. The selling agency shall provide repairs
required by lenders and government housing assistance programs, or, at
the option of the agency, provide the present occupants with a
replacement dwelling pursuant to
Section 54237.5.
(c) If
single-family residences are offered to their present occupants pursuant
to paragraphs (2) and (3) of subdivision (a), the occupants shall
certify their income and assets to the selling
agency. When single-family residences are offered to present
occupants at a price that is less than fair market value, the selling
agency may verify the certifications, in accordance with procedures
utilized for verification of incomes of purchasers and occupants of
housing financed by the California Housing Finance Agency and with
regulations adopted for the verification of assets by the United States
Department of Housing and Urban Development. The income and asset
limitations and term of residency requirements of paragraphs (2) and (3)
of subdivision (a) shall not apply to sales that are described as
mitigation measures in an environmental study prepared pursuant to the
Public Resources Code, if the study was initiated before this measure
was enacted.
(d) All other surplus
residential properties and all properties described
in paragraphs (1), (2), and (3) of subdivision (a) that are not
purchased by the former owners or the present occupants shall be then
offered to housing-related private and public entities at a reasonable
price, which is best suited to economically feasible use of the property
as decent, safe, and sanitary housing at affordable rents and
affordable prices for persons and families of low or moderate income, on
the condition that the purchasing entity shall cause the property to be
rehabilitated and developed as limited equity cooperative housing with
first right of occupancy to present occupants, except that where the
development of cooperative or cooperatives is not feasible, the
purchasing agency shall cause the property to be used for low and
moderate income rental or owner-occupied housing, with first right of
occupancy to the present tenants. The price of the property in no case
shall be less than
the price paid by the agency for original acquisition unless the
acquisition price was greater than current fair market value and shall
not be greater than fair market value. Subject to the foregoing, it
shall be set at the level necessary to provide housing at affordable
rents and affordable prices for present tenants and persons and families
of low or moderate income. When residential property is offered at a
price that is less than fair market value, the selling agency shall
impose terms, conditions, and restrictions as will ensure that the
housing will remain available to persons and families of low or moderate
income. The Department of Housing and Community Development shall
provide to the selling agency recommendations of standards and criteria
for prices, terms, conditions, and restrictions.
(e) Any
surplus residential properties not
sold pursuant to subdivisions (a) to (d), inclusive, shall then be
sold at fair market value, with priority given first to purchasers who
are present tenants in good standing with all rent obligations current
and paid in full, second to former tenants who were in good standing at
the time they vacated the premises, with priority given to the most
recent tenants first, and then to purchasers who will be owner
occupants. The selling agency may commence the sales of properties that
former tenants may possess a right to purchase as provided by this
subdivision 30 days after the selling agency has done both of the
following:
(1) Posted information regarding the sales under this subdivision on the selling agency’s Internet Web site.
(2) Made a good faith effort to provide written
notice, by first-class mail, to the last known address of each former tenant.
(f) Tenants
in good standing of nonresidential properties shall be given priority
to purchase, at fair market value, the property they rent, lease, or
otherwise legally occupy.