Bill Text: CA SB1170 | 2013-2014 | Regular Session | Amended
Bill Title: Surplus nonresidential property.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-05-23 - Held in committee and under submission. [SB1170 Detail]
Download: California-2013-SB1170-Amended.html
BILL NUMBER: SB 1170 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 3, 2014
INTRODUCED BY Senator Liu
FEBRUARY 20, 2014
An act to amend Section 54237 of the Government Code, relating to
property.
LEGISLATIVE COUNSEL'S DIGEST
SB 1170, as amended, Liu. Surplus nonresidential 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." Existing law defines "fair market value" as the fair market
value as of the date the offer of sale is made by the selling agency
and to reflect the existing "as is" condition of the property, taking
into account any needed repairs, as specified. Existing law requires
tenants in good standing who legally occupy nonresidential
properties to be given priority to purchase the property at fair
market value.
This bill would require that fair market value be determined
relative to current use of the property if the tenant that has
priority to purchase the nonresidential property is a nonprofit
organization. for the purchase by those tenants of
nonresidential properties of the properties they occupy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. 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 as
determined relative to current use , the property they
rent, lease, or otherwise legally occupy.
occupy, except that if the tenant is a nonprofit
organization the property shall be offered at fair market
value as determined relative to the current use of the property.
