Amended  IN  Senate  June 19, 2024
Amended  IN  Assembly  April 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2909

Introduced by Assembly Member Santiago

February 15, 2024

An act to amend, repeal, and add Section 50280.1 of, and to add and repeal Section 50280.2 of, the Government Code, relating to local government.


LEGISLATIVE COUNSEL'S DIGEST


AB 2909, as amended, Santiago. Historical property contracts: qualified historical property: adaptive reuse. reuse: City of Los Angeles.
Existing law law, commonly referred to as the Mills Act, authorizes an owner of any qualified historical property to contract with the legislative body of a city, county, or city and county to restrict the use of the property, as specified, in exchange for lowered assessment values. Existing law defines “qualified historical property” as privately owned property that is not exempt from property taxation and is either meets certain criteria related to the property’s historic significance. In this regard, existing law requires the property to be listed in the National Register of Historic Places or Places, located in a registered historic district, as defined, or listed in any state, city, county, or city and county official register of historical or architecturally significant sites, places, or landmarks.
Existing law establishes the Infill Infrastructure Grant Program of 2019, which requires the Department of Housing and Community Development to establish and administer a grant program to fund capital improvement projects pursuant to specified requirements. Existing law provides that capital improvement projects that may be funded under the grant program include, among other things, those related to adapted reuse, which means, when referring to building structures, retrofitting and repurposing of existing buildings that create new residential rental units, as specified.
This bill, starting January 1, 2026, and until January 1, 2036, would additionally define as expand the definition of “qualified historical property” for purposes of the Mills Act by providing alternative criteria that a privately owned property that is not exempt from property taxation that was may meet. That alternative criteria would require the property to be constructed at least 30 years prior to the year a legislative body and property owner enter into a the contract to restrict the use of the property, as specified, and that is and to be located within the City of Los Angeles on a site that satisfies certain criteria, including, among others, being in a zone where office, retail, or parking are a principally permitted use. The alternative criteria would also require the property to meet, in the determination of the City of Los Angeles, at least one of specified criteria, including, among others, being identified with important events of national, state, or local history, as specified. The bill would require a contract entered into to restrict the use of that qualified historical property to require adaptive reuse of the qualified historical property, dedicate at least 3 units to live-work artist lofts, and facilitate, promote, and accommodate active transportation, as specified. The bill would require the owner of the qualified historic property to submit a fiscal analysis, as specified, to the City of Los Angeles before the City of Los Angeles would be authorized to issue a contract under these provisions. The bill would make findings and declarations as to the necessity of a special statute for the City of Los Angeles. The bill would also update an obsolete cross-reference.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Los Angeles.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 50280.1 of the Government Code is amended to read:

50280.1.
 (a) “Qualified historical property” for purposes of this article, means privately owned property that is not exempt from property taxation and that meets any of the following:
(1) Listed in the National Register of Historic Places or located in a registered historic district, as defined in Section 1.48-12 of Title 26 of the Code of Federal Regulations.
(2) Listed in any state, city, county, or city and county official register of historical or architecturally significant sites, places, or landmarks.
(3) For contracts entered into under this article on or after January 1, 2026, constructed at least 30 years prior to the year a legislative body and property owner enter into a contract for the property pursuant to this article and located within the City of Los Angeles on a site that satisfies all of the criteria in Section 65912.111. 65912.111 and, in the determination of the City of Los Angeles, meets at least one of the following criteria:
(A) Is identified with important events of national, state, or local history, or exemplifies significant contributions to the broad cultural, economic, or social history of the nation, state, city, or community.
(B) Is associated with the lives of historic personages important to national, state, city, or local history.
(C) Embodies the distinctive characteristics of a style, type, period, or method of construction, or represents a notable work of a master designer, builder, or architect whose individual genius influenced their time.
(b) This section shall remain in effect only until January 1, 2036, and as of that date is repealed.

SEC. 2.

 Section 50280.1 is added to the Government Code, to read:

50280.1.
 (a) “Qualified historical property” for purposes of this article, means privately owned property that is not exempt from property taxation and that meets either of the following:
(1) Listed in the National Register of Historic Places or located in a registered historic district, as defined in Section 1.48-12 of Title 26 of the Code of Federal Regulations.
(2) Listed in any state, city, county, or city and county official register of historical or architecturally significant sites, places, or landmarks.
(b) This section shall become operative on January 1, 2036.

SEC. 3.

 Section 50280.2 is added to the Government Code, to read:

50280.2.
 (a) A contract entered into under this article to restrict the use of qualified historical property described in paragraph (3) of subdivision (a) of Section 50280.1 shall do all of the following:
(1) Require adaptive reuse, as defined in Section 53559.1 of the Health and Safety Code, of the qualified historical property.
(A) If the adaptive reuse project is a mixed-use development, 80 percent of the project total floor area shall be dedicated for residential uses.
(B) Up to 20 percent of the mixed-use development may be used for nonresidential purposes and shall be inclusive of at least one community amenity, including, but not limited to, publicly accessible outdoor spaces, community centers, daycares, meeting rooms, shared work spaces, or other amenities found needed by the community in the City of Los Angeles.
(2) Dedicate at least three units of each development to be live-work artist lofts.
(3) Facilitate, promote, and accommodate active transportation. A contract may meet the requirement of this paragraph by requiring the development to do any one of the following or any combination thereof: provide secured bike storage for residents, provide bike parking for the public, incorporate awnings to provide shade to pedestrian traffic, or other needs as identified by the City of Los Angeles related to active transportation.
(b) A contract entered into under this article for a property described in paragraph (3) of subdivision (a) of Section 50280.1 that converts hotels, motels, short-term rental buildings, or other structures previously used for human habitation shall satisfy both the requirements of subdivision (a) and the affordability criteria described in Section 65912.122.
(c) Before the City of Los Angeles may issue a contract under this article to restrict the use of qualified historical property described in paragraph (3) of subdivision (a) of Section 50280.1, the owner of the qualified historic property shall submit a fiscal analysis to the City of Los Angeles that demonstrates to the reasonable satisfaction of the City of Los Angeles that the contract will have an overall net positive economic benefit to the local government.

(c)

(d) This section shall become operative on January 1, 2026, and shall remain in effect only until January 1, 2036, and as of that date is repealed.

SEC. 4.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances facing the City of Los Angeles with regard to affordable housing, homelessness, and commercial vacancies.