Surplus land: exempt surplus land: sectional planning area.

Assembly Member Alvarez's proposal to modify California's surplus land regulations would establish new thresholds for affordable housing requirements in sectional planning areas. The legislation amends existing law to require that either 25% of proposed residential units not designated for academic use, or 500 units - whichever is greater - be dedicated to lower-income households in areas with planning documents adopted before January 1, 2019.

The bill maintains the current requirement for developing land at an average density of at least 10 units per acre, but specifies that this calculation must include housing designated for students, faculty, and staff of academic institutions. For student housing units to count toward density requirements, they must include fully functioning kitchens, maintain specific bathroom-to-resident ratios, and meet state health and safety standards.

Local agencies that fail to comply with these provisions face civil penalties of up to 30% of the land's sale price or fair market value for first violations, and up to 50% for subsequent violations. These penalty funds must be deposited into local housing trust funds and used within five years specifically to finance new housing units for extremely low to low-income households. If unused after five years, the funds transfer to state housing programs. The provisions are set to expire on January 1, 2034.