AB 2094

AB2094:v97#DOCUMENT

Bill Start

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 2094

An act to add Part 19 (commencing with Section 54915) to Division 31 of, and to repeal Section 54919 54918 of, the Health and Safety Code, relating to housing.

LEGISLATIVE COUNSEL'S DIGEST

AB 2094, as amended, Harabedian. Surplus Public Land Housing Pilot Social Housing Strategy and Implementation Program.

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.

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.

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.

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.

This bill would require the department to establish a dedicated social housing coordinator to lead social housing strategy and implementation. In leading social housing strategy and implementation, the bill would require the dedicated social housing coordinator to, among other things, inventory and prioritize surplus public land suitable for social housing development. The bill would define “social housing development” as housing developed pursuant to the bill’s provisions that is owned by a public entity, provides housing affordable to a mix of household income levels, and preserves long-term affordability. The bill would require the dedicated social housing coordinator to compile findings for social housing strategy and implementation, as specified, and post the findings on the department’s internet website. The bill would require the department, by January 1, 2028, to submit a report to the Legislature with actionable recommendations based on the social housing strategy and implementation program findings, as described above.

Digest Key

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

The Legislature finds and declares all of the following:

(a) California continues to face a severe housing shortage across all income levels.

(b) Public agencies own surplus land that can be repurposed to address housing needs.

(c) Development of housing on surplus public land by the Department of Housing and Community Development can reduce costs, accelerate production, and ensure long-term affordability.

(d) A pilot program Social Housing Strategy and Implementation Program will allow the state to evaluate best practices for publicly sponsored housing development.

SEC. 2.

Part 19 (commencing with Section 54915) is added to Division 31 of the Health and Safety Code, to read:

PART 19. SURPLUS PUBLIC LAND HOUSING PILOT SOCIAL HOUSING STRATEGY AND IMPLEMENTATION PROGRAM

54915.

This part shall be known, and may be cited, as the Surplus Public Land Housing Pilot Social Housing Strategy and Implementation Program.

54915.5.54916.

For purposes of this part, the following definitions shall apply:

(a) “Department” means the Department of Housing and Community Development.

(b) “Household income levels” includes all of the following:

(1) Acutely low income households, as defined in Section 50063.5.

(2) Extremely low income households, as defined in Section 50106.

(3) Persons and families of low or moderate income, as defined in Section 50093.

(4) Very low income households, as defined in Section 50105.

(c) “Housing pilot project” “Social housing development”means housing developed pursuant to this part that satisfies all of the following:

(1) Is owned by a public entity.

(2) Provides housing for rent that is affordable to a mix of household income levels.

(3) Preserves long-term affordability.

(4)“Local public entity” has the same meaning as defined in Section 50079.

(d)“Program” means the Surplus Public Land Housing Pilot Program established pursuant to this part.

(e)“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.

54916.

(a)The department shall establish and administer the program.

(b)The purposes of the program are to do all of the following:

(1)Increase the supply of affordable housing.

(2)Demonstrate cost-effective public development models.

(3)Assist jurisdictions in meeting their regional housing needs.

(c)The department shall ensure that at least one housing pilot project on surplus public land is completed by January 1, 2030.

54916.5.

(a)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.

(b)The department shall give priority to parcels that are any of the following:

(1)Vacant or underutilized.

(2)Located near public transit, employment centers, schools, hospitals, or grocery stores.

(3)Suitable for multifamily housing.

(4)Nominated by a local public entity.

(c)(1)The department may use surplus public land for purposes of the program in collaboration with local public entities.

(2)A local public entity is encouraged to coordinate with the department to make surplus public land available for purposes of the program.

54917.

(a)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.

(b)A housing pilot project developed pursuant to subdivision (a) shall comply with all of the following:

(1)Remain publicly owned for its useful life.

(2)Include units affordable to the household income levels.

(3)Permit the inclusion of units available for a mix of household income levels to support financial feasibility.

(4)Provide tenant protections consistent with state law.

(c)A housing pilot project may include community-serving commercial spaces and supportive services where feasible.

54917.5.

(a)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.

(b)A housing pilot project approved pursuant to subdivision (a) shall be exempt from discretionary review.

(c)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.

54918.

(a)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.

(b)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.

54918.5.

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).

54919.

(a)Beginning January 1, 2031, and annually thereafter, the department shall submit a report to the Legislature that includes all of the following information:

(1)Parcels utilized.

(2)Units produced and affordability levels.

(3)Funding sources and development costs.

(4)Partnerships formed.

(5)Recommendations for program expansion or modification.

(b)(1)A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

(2)Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2035.

54919.5.

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.

54917. (a) The department shall establish a dedicated social housing coordinator within the department to lead social housing strategy and implementation.(b) In leading social housing strategy and implementation, the dedicated social housing coordinator shall do all of the following:(1) Produce a statewide scaling plan that includes units, funding, and timelines for social housing development.(2) Inventory and prioritize surplus public land suitable for social housing development.(3) Identify barriers to social housing development beyond funding.(4) Outline financing options and potential funding sources for social housing development.(5) Include clear benchmarks and timelines for developing social housing.(c) The dedicated social housing coordinator shall compile its findings for social housing strategy and implementation pursuant to subdivision (b) and post the findings on the department’s internet website.54918. (a) By January 1, 2028, the department shall submit a report to the Legislature with actionable recommendations based on the Social Housing Strategy and Implementation Program findings pursuant to Section 54917.(b) (1) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2032.

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REVISIONS: Heading—Line 1.

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