By @Aaron Avery
The first year of the 2023-2024 Legislative Session saw the introduction of many bills seeking to make consequential changes to the Surplus Land Act (SLA). CSDA and its coalition partners were instrumental in the successful resolution of the six bills discussed below.
The SLA sets forth complex and technical procedures local governments must follow to declare land to be surplus and not necessary for agency’s use, and to dispose of that land after engaging in negotiations with affordable housing developers. The SLA also contains procedures for declaring land exempt surplus land, and procedures and requirements for agency’s uses of land.
CSDA has been a recognized leader on Surplus Land Act legislation, stemming from its leadership role in prior legislative efforts to make significant changes to the SLA, including AB 1486 (Ting, 2019), AB 2357 (Ting, 2022), and SB 361 (Umberg, 2022). As a result of CSDA’s advocacy efforts, the significant reforms brought about with AB 1486 were coupled with additional protections and consideration granted to special districts. However, certain provisions of the SLA are the subject of disputed interpretations, leading to inefficiencies.
This year, CSDA has been heavily engaged in the most significant legislative efforts to reform the SLA, leading coalitions on bills that are both potentially beneficial and potentially detrimental to special districts. Through these efforts, CSDA has been at the table in negotiations, provided significant input on amendments, participated in many lobby meetings, and testified in committees throughout the year.
- CSDA Position: Support.
- Bill Status: Awaiting the Governor’s signature.
- Provides a limited and tightly constrained procedure for a local agency to administratively declare exempt surplus land, providing an important streamlined but transparent procedure.
- Provides a definition for “dispose” that includes entering into certain leases longer than 15 years, as defined, making the SLA clearly applicable to specified leases for the first time.
- Provides a fair process for assessing and calculating penalties for specified violations of the SLA, while providing that such penalties shall not apply to nonsubstantive violations that do not impact the availability and priority of, or the construction of, housing affordable to lower income households or the ultimate disposition of the land in compliance with the article, such as clerical errors.
- Provides additional transparency to Department of Housing and Community Development (HCD) procedures prior to HCD adopting, amending, or repealing specified standards, forms, or definitions, and SLA guidelines.
- Makes a number of technical and other changes to the SLA.
- CSDA Position: Neutral.
- Bill Status: Awaiting the Governor’s signature.
- As amended, this bill is similar, though not identical to SB 747.
- SB 747 and AB 480 are contingent on enactment of each other.
- CSDA led a local government coalition previously with an Oppose Unless Amended position on this bill, which initially sought to make several detrimental changes to the SLA that would have increased confusion and inefficiencies, and undermined agency’s use protections applicable to special districts. As a result of CSDA’s advocacy efforts, this bill was amended, resolving most of CSDA’s most significant concerns.
- Recent additional amendments allowed CSDA to remove opposition.
- CSDA Position: Neutral.
- Bill Status: 2 Year Bill.
- This is a district bill seeking an SLA exemption for a specific need. However, the exempt surplus land category proposed by the bill included a reference to leases. Because of the precedent that may be established by assuming certain leases are covered by the SLA and in need of an exemption, CSDA adopted an Oppose Unless Amended position, seeking to amend the bill to accomplish its purpose without reference to leases.
- As a result of CSDA’s advocacy efforts, the concerning language referring to leases was amended out of the bill in the Senate Governance and Finance Committee, allowing CSDA to remove opposition.
- CSDA Position: Neutral.
- Bill Status: Awaiting the Governor’s signature.
- This bill seeks to add required procedures for Orange County and cities in Orange County to follow when they receive notices of violation from HCD in connection with the planned disposal of surplus land. This bill initially made explicit reference to leases without the stakeholder-negotiated lease language contemplated in SB 747. Due to the above-described precedential concerns arising from inclusion of leases in this manner, CSDA led a local government coalition with an Oppose Unless Amended position, seeking to remove the bill’s reference to leases. CSDA’s lead opposition testimony on the bill is pictured below.
- Recent amendments making the bill consistent with SB 747 as it relates to leases allowed CSDA to remove opposition.
- CSDA Position: Neutral.
- Bill Status: Awaiting the Governor’s signature.
- This bill seeks to add required procedures for local agencies, including special districts, to follow when they receive notices of violation from HCD in connection with the proposed disposing of surplus land. CSDA led a local government coalition with an Oppose Unless Amended position on this bill, seeking to remove the bill’s earlier reference to leases, make a clarifying change to make clear that the procedures apply to notices of violation received in connection with disposals of surplus land, and to add procedural flexibility.
- Recent amendments in alignment with those requested by CSDA, and amendments making the bill consistent with SB 747 as it relates to leases, allowed CSDA to remove opposition.
- CSDA Position: Neutral.
- Bill Status: 2 Year Bill.
- This bill would have required special districts and other local agencies to respond to inquiries in connection with potential placement of temporary housing on their properties.
- CSDA took an Oppose Unless Amended position because the bill would have created a significant burden on special districts and was inconsistent with the SLA.
- The bill was held in the Senate Appropriations Committee earlier this year.
CSDA has regularly consulted with the CSDA Surplus Land Act Working Group and coalition partners. CSDA continues to be a leader on this important issue which impacts agency operations, long term planning, and revenue generation.
To get more involved in one of CSDA’s Expert Feedback Teams, please sign-up at csda.net/get-involved.
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