Surplus land: exempt surplus land: sectional planning area.

Assembly Member Alvarez anchors a measure that links surplus land decisions within sectional planning areas to a defined floor of lower-income housing and a density standard, weaving affordability obligations into the exemption framework. The author frames the policy as an alignment of land-use decisions with housing needs, conditioning exemptions on minimum lower-income unit dedication and on density calculations that count housing within sectional planning areas adopted before 2019, including student housing in the mix.

A core element requires that, for sectional planning areas adopted prior to 2019, at least 25 percent of the units proposed in the plan that are not designated for students, faculty, or staff, or 500 units, whichever is greater, be dedicated to lower-income households. The density standard mandates an average of at least 10 housing units per acre, calculated across the entire sectional planning area and inclusive of student-housing units. Affordability covenants must run with the land, with durations tied to rental and ownership affordability periods under the Health and Safety Code, and enforceable against successors. The changes operate within the broader exempt surplus land framework, while intersecting with categories such as land transfers, open-space transfers, and housing developments that carry affordability covenants.

Enforcement and oversight mechanisms are broadened: penalties for noncompliant disposals include 30 percent of the greater of the final sale price or fair market value for a first violation and 50 percent for subsequent violations, with penalties deposited into a local housing trust fund (or, at the agency’s option, into state funds) and expended within five years for affordable housing. If unspent after five years, penalties may revert to the state for use in specified housing funds, subject to legislative appropriation. Civil actions to enforce penalties may be brought by entities identified in the enforcement framework, including housing organizations and eligible residents. The measure also adds a 30-day pre-disposal notification to the Department of Housing and Community Development, which must respond within 30 days, and requires ongoing reporting on development status and affordable-unit shares.

Contextually, the measure extends the surplus-land regime to ensure sectional planning area provisions contribute to affordable housing through defined density and covenant requirements, explicitly counting student housing toward density calculations and setting a floor for non-student lower-income units. It increases procedural steps for local agencies, clarifies oversight and reporting duties, and creates a penalties regime tied to financing for affordable housing. While the measure contemplates no new statewide appropriation, the funding mechanism hinges on penalty revenues and local/state housing funds, with a sunset for one subparagraph in 2034 that invites future re-evaluation of the affordability framework.