The Department of General Services may dispose of real property declared surplus by the Legislature and directed to be disposed of by the Department of General Services upon any terms and conditions and subject to any reservations and exceptions the Department of General Services deems to be in the best interests of the state. Prior to offering the surplus property for sale to private entities or individuals, the Department of General Services must first offer surplus state real property to a local agency, as defined in the code, and then to nonprofit affordable housing sponsors, as defined in the code (Specified Buyers). If there is more than one Specified Buyer, the code outlines the types of uses or buyers shall take priority. To be an eligible buyer, the Specified Buyer must meet certain requirements, including demonstrating to the satisfaction of the Department of General Services, that the surplus state real property, or portion thereof, will be used by the Specified Buyer for open space, public parks, affordable housing projects, or development of local government-owned facilities. The Department of General Services may sell the property to the Specified Buyer for affordable housing projects at a sales price less than fair market value if the Department of General Services determines that such a discount will enable the provision of housing for persons and families of low or moderate income.
Senate Bill 240 (SB 240) expands the uses for which the Specified Buyers may use the surplus property to include housing for formerly incarcerated individuals. SB 240 will also allow the Department of General Services to sell the surplus property at a sales price less than fair market value if the Department of General Services determines that such a discount will enable the provision of housing for formerly incarcerated individuals.
SB 240 also provides that development of surplus state real property by a Specified Buyer for an affordable housing project is by right, making the development ministerial in nature and exempt from California Environmental Quality Act (CEQA) requirements.
(SB 240 amends Section 11011.1 of the Government Code.)