AB 2329: Surplus residential property: condition-adjusted price of the fair market value: Cities of Pasadena and South Pasadena.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)Existing law establishes priorities and procedures that any state agency disposing of surplus property is required to follow. Existing law requires the Department of Transportation to deposit proceeds from the sale of a surplus residential property from the department to a new owner into the SR-710 Rehabilitation Account. Existing law continuously appropriates the funds in the account to the department for the purpose of providing required repairs to certain surplus residential properties that are offered for sale, as provided. Existing law requires that the total funds maintained in the account not exceed a specified amount and that funds exceeding that amount, less any reimbursements due to the federal government, be transferred to the State Highway Account in the State Transportation Fund, to be used for allocation by the California Transportation Commission exclusively to fund projects located in specified cities and in the 90032 postal ZIP Code. Existing law also establishes the Affordable Housing Trust Account within the Housing Finance Fund, a continuously appropriated fund, and requires certain funds to be deposited in the account in accordance with specified provisions for the benefit of income restricted persons and families residing exclusively in the Cities of Pasadena, South Pasadena, Alhambra, La Cañada Flintridge, and the 90032 postal ZIP Code.

Existing law sets forth an order of priority for the disposal of specified surplus residential property, including that a state agency disposing of single-family surplus residential property first offer the property at the appraised fair market value to former owners and present occupants, and then offer the property at an affordable price to other present occupants who have occupied the property for a specified number of years and who meet certain income levels. Existing law sets certain parameters for the calculation of an affordable price for purposes of these provisions based on, among other things, the fair market value of the property.

This bill would, instead, require the first tier priority offer to be based on the appraised condition-adjusted price of the fair market value and would define “condition-adjusted price of the fair market value” to mean the fair market value of the property as of October 13, 2019, as determined by an independent appraiser and adjusted, as provided. The bill would revise the above-specified parameters for calculating an affordable price. The bill would establish requirements relating to the performance and cost of the inspection of the property, and define various terms for purposes of these provisions, including, among others, “guidelines.” The bill would also, for surplus residential property sold at a condition-adjusted fair market value, exempt the selling agency from providing repairs to the property, as specified.

This bill, among other changes, would authorize a present occupant or tenant purchasing a residence at an affordable price or condition-adjusted price of the fair market value to receive purchase assistance in accordance with certain procedures. The bill would provide that certain amounts repaid for those purposes constitute deferred proceeds from the department’s sale of the property and would be deposited into the Affordable Housing Trust Account, as prescribed.

(2)If the surplus residential property is not sold pursuant to the priorities described above, or pursuant to other specified priorities, existing law requires the property to then be sold at fair market value, with priority given first to purchasers who are present tenants in good standing, as provided, and then to former tenants who were in good standing at the time they vacated the premises, as provided.

This bill would, instead, require the property to be sold to those present or former tenants at condition-adjusted fair market value.

Sponsors

Sponsors by party (alphabetical): Democratic 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 30, 2026Chaptered by Secretary of State - Chapter 937, Statutes of 2026.
2. September 30, 2026Approved by the Governor.
3. September 10, 2026Enrolled and presented to the Governor at 3 p.m.
4. August 30, 2026Urgency clause adopted. Senate amendments concurred in. To Engrossing and Enrolling. (Page 6936.).
5. August 30, 2026In Assembly. Concurrence in Senate amendments pending.
6. August 30, 2026Read third time. Urgency clause adopted. Passed. Ordered to the Assembly.
7. August 30, 2026Ordered to special consent calendar.
8. August 26, 2026Read second time. Ordered to third reading.
9. August 25, 2026Read third time and amended. Ordered to second reading.
10. August 17, 2026Read second time. Ordered to third reading.
11. August 13, 2026Read second time and amended. Ordered returned to second reading.
12. August 13, 2026From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 13).