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<ns0:Id>20250AB__209498AMD</ns0:Id>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-18</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-16</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:MeasureNum>2094</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Harabedian</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Harabedian</ns0:Name>
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<ns0:Title> An act to add Part 19 (commencing with Section 54915) to Division 31 of, and to repeal Section 54919 of, the Health and Safety Code, relating to housing. </ns0:Title>
<ns0:RelatingClause>housing</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Surplus Public Land Housing Pilot Program.</ns0:Subject>
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<html:p>Existing law establishes the Department of Housing and Community Development (department) and, pursuant to the Governor’s Reorganization Plan No. 1 of 2025, which became effective on July 5, 2025, transfers the department to the California Housing and Homelessness Agency, effective July 1, 2026, for purposes of carrying out state housing policies and programs. Existing law, commonly referred to as the Surplus Land Act, prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospective transferee. As part of these procedures, existing law requires that the local
agency send a notice of availability to housing sponsors, as defined, that have notified the department of their interest in surplus land, as specified.</html:p>
<html:p>This bill would require the department to establish and administer the Surplus Public Land Housing Pilot Program (program). The bill would set forth the purposes of the program, including to increase the supply of affordable housing. The bill would require the department to ensure that at least one housing pilot project on surplus public land is completed by January 1, 2030, and to identify and prioritize surplus public land suitable for housing pilot project development, as specified. The bill would define a “housing pilot project” as housing developed pursuant to the bill’s provisions that is owned by a local public entity, provides housing affordable to a mix of household income levels, and preserves long-term affordability. The bill would authorize the department to use surplus public land in collaboration with
a local public entity, as described, and to develop housing, as specified, directly or in partnership with a local public entity, a nonprofit housing developer, or a mission-driven private entity. The bill would require the housing pilot project developed pursuant to the bill’s provisions to be, among other things, a use by right and ministerially approved if it meets local objective planning and zoning standards. The bill would require the construction of a housing pilot project to be subject to specified prevailing wage requirements, as specified, and to use a skilled and trained workforce, as described. The bill would require housing pilot project units to be eligible to be counted by a jurisdiction toward its share of the regional housing needs assessment, as specified. The bill would require the department, beginning January 1, 2031, and annually thereafter, until January 1, 2035, to submit a report to the Legislature, as described. The bill, upon appropriation by the Legislature, would authorize the
department to utilize legislative appropriations, existing housing funds that may be used for a housing pilot project, local contributions, federal funds, and bond financing to implement the program.</html:p>
<html:p>Existing law, the California Environmental Quality Act (CEQA), requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment, or to adopt a negative declaration if it determines that the project would not have that effect, as provided. CEQA does not apply to the approval of ministerial projects. </html:p>
<html:p>This bill would
specify that the Surplus Public Land Housing Pilot Program created pursuant to its provisions does not alter the application of CEQA, but would further allow a housing pilot project that qualifies for existing statutory or categorical exemptions to rely upon those exemptions.</html:p>
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<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_5842185A-A797-4F77-B302-F7468956596E">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
California continues to face a severe housing shortage across all income levels.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Public agencies own surplus land that can be repurposed to address housing needs.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Development of housing on surplus public land can reduce costs, accelerate production, and ensure long-term affordability.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A pilot program will allow the state to evaluate best practices for publicly sponsored housing development.
</html:p>
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<ns0:BillSection id="id_F4A9703D-278E-4BCA-8412-C835292D17B6">
<ns0:Num>SEC. 2.</ns0:Num>
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Part 19 (commencing with Section 54915) is added to Division 31 of the
<ns0:DocName>Health and Safety Code</ns0:DocName>
, to read:
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<ns0:LawHeading id="id_FE8BB3EB-32B6-47C6-8CEF-CE137D8C8516" type="PART">
<ns0:Num>19.</ns0:Num>
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<ns0:LawHeadingText>SURPLUS PUBLIC LAND HOUSING PILOT PROGRAM</ns0:LawHeadingText>
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<ns0:LawSection id="id_F2FFD4CE-16B8-4408-8B9E-D048F656A06D">
<ns0:Num>54915.</ns0:Num>
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<html:p>This part shall be known, and may be cited, as the Surplus Public Land Housing Pilot Program.</html:p>
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<ns0:LawSection id="id_BA0F6D8B-0876-40F6-B966-0B752031448D">
<ns0:Num>54915.5.</ns0:Num>
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<html:p>For purposes of this part, the following definitions shall apply:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Department” means the Department of Housing and Community Development.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Household income levels” includes all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Acutely low income households, as defined in Section 50063.5.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Extremely low income households, as defined in Section 50106.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Persons and families of low or moderate income, as defined in Section 50093.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Very low income
households, as defined in Section 50105.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Housing pilot project” means housing developed pursuant to this part that satisfies all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Is owned by a public entity.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Provides housing for rent that is affordable to a mix of household income levels.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Preserves long-term affordability.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Local public entity” has the same meaning as defined in Section 50079.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
“Program” means the Surplus Public Land Housing Pilot Program established pursuant to this part.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
“Surplus public land” means real property determined to be surplus pursuant
to the Surplus Land Act (Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of the Government Code) that is suitable for residential development.
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<ns0:LawSection id="id_9E3FBCD1-ABDC-4D8F-B05C-A8F63E2E9912">
<ns0:Num>54916.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The department shall establish and administer the program.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The purposes of the program are to do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Increase the supply of affordable housing.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Demonstrate cost-effective public development models.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Assist jurisdictions in meeting their regional housing needs.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The department shall ensure that at least one housing pilot project on surplus public land is completed by January 1, 2030.
</html:p>
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<ns0:LawSection id="id_2789C984-B43E-4AB7-8843-3FB636F90ECB">
<ns0:Num>54916.5.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The department shall identify and prioritize surplus public land suitable for housing pilot project development consistent with the requirements of this part and the purposes of the program.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The department shall give priority to parcels that are any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Vacant or underutilized.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Located near public transit, employment centers, schools, hospitals, or grocery stores.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Suitable for multifamily housing.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Nominated by a local public entity.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The department may use surplus public land for purposes of the program in collaboration with local public entities.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A local public entity is encouraged to coordinate with the department to make surplus public land available for purposes of the program.
</html:p>
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<ns0:LawSection id="id_124EB299-F2DF-45FE-B343-F69C51C1450D">
<ns0:Num>54917.</ns0:Num>
<ns0:LawSectionVersion id="id_34F57862-F1AC-4FA8-8CB5-2A41536887BC">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The department may develop a housing pilot project pursuant to the program directly or in partnership with a local public entity, including a public housing authority, a nonprofit housing developer, or a mission-driven private entity.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A housing pilot project developed pursuant to subdivision (a) shall comply with all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Remain publicly owned for its useful life.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Include units affordable to the household income levels.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Permit the inclusion of units available for a mix of household income levels to support financial
feasibility.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Provide tenant protections consistent with state law.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A housing pilot project may include community-serving commercial spaces and supportive services where feasible.
</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_8063C158-8A2A-41C8-93FB-CD2286EEEF47">
<ns0:Num>54917.5.</ns0:Num>
<ns0:LawSectionVersion id="id_C0F1DA5D-8E6B-4F90-A886-03DA515B7073">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A housing pilot project developed pursuant to this part shall be a use by right and ministerially approved if it meets local objective planning and zoning standards.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A housing pilot project approved pursuant to subdivision (a) shall be exempt from discretionary review.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
This section shall not alter the application of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), but a housing pilot project that qualifies for existing statutory or categorical exemptions may rely upon those exemptions.
</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_5411E893-3291-4979-A114-16E1DF22D5EE">
<ns0:Num>54918.</ns0:Num>
<ns0:LawSectionVersion id="id_89D5B43E-80D7-4B52-98CC-D0F9F3A6730F">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Construction of a housing pilot project developed pursuant to this part shall be subject to the prevailing wage requirements in Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A housing pilot project shall utilize a skilled and trained workforce, as defined in Section 2601 of the Public Contract Code, for construction contracts exceeding thresholds established by the department.
</html:p>
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<ns0:LawSection id="id_20CD05D9-81C0-40F7-B952-99C1C7A86341">
<ns0:Num>54918.5.</ns0:Num>
<ns0:LawSectionVersion id="id_DE4F1659-198A-4784-8FDD-016B0964D021">
<ns0:Content>
<html:p>Units in a housing pilot project developed under this part shall be eligible to be counted by a jurisdiction toward its share of the regional housing needs assessment consistent with the Housing Element Law (Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code).</html:p>
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<ns0:LawSection id="id_E2E3C5E5-D7BD-4927-8E31-461599F5E289">
<ns0:Num>54919.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Beginning January 1, 2031, and annually thereafter, the department shall submit a report to the Legislature that includes all of the following information:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Parcels utilized.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Units produced and affordability levels.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Funding sources and development costs.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Partnerships formed.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Recommendations for program expansion or modification.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
A report to be submitted
pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2035.
</html:p>
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<ns0:LawSection id="id_99BDBCFE-36E4-471F-8D4A-FDCA0CD8108E">
<ns0:Num>54919.5.</ns0:Num>
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<html:p>Upon appropriation by the Legislature, the department may utilize legislative appropriations, existing housing funds that may be used for a housing pilot project, local contributions, federal funds, and bond financing to implement the program.</html:p>
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