Amended  IN  Senate  May 05, 2021
Amended  IN  Senate  March 25, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 616

Introduced by Senator Rubio

February 18, 2021

An act to amend Section 17456 of the Education Code, relating to school facilities.


LEGISLATIVE COUNSEL'S DIGEST


SB 616, as amended, Rubio. School facilities: proceeds from lease of surplus property: affordable rental housing facilities.
Existing law exempts certain transactions from the requirements that otherwise apply to the sale or lease of real property by a school district if certain conditions are met, including that the financing proceeds obtained by the school district pursuant to the transaction are expended solely for capital outlay purposes, which are defined to include the construction, reconstruction, or renovation of rental housing facilities for school district employees.
This bill would require rental housing facilities for school district employees funded by proceeds realized under this provision to be affordable. The bill would additionally authorize, for the exemption from the requirements that would otherwise apply, one-time capital expenditures and maintenance of school district property funded by financing proceeds obtained from the lease of real property that will be used to construct new affordable rental housing facilities for school district employees. employees, and would define “affordable rental housing facility” for this purpose.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 17456 of the Education Code is amended to read:

17456.
 (a) Notwithstanding Sections 17455 and 17462.3, the sale by the governing board of a school district of any real property belonging to the school district or the lease by that governing board, for a term not exceeding 99 years, of any real property, together with any personal property located thereon, belonging to the school district and the use of the proceeds of that sale or lease, shall not be subject to any other provision of this chapter, to Article 5 (commencing with Section 17485), or to Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of the Government Code, if all of the following conditions are met:

(a)

(1) The property is sold or leased to another local governmental agency, or to a nonprofit corporation that is organized for the purpose of assisting one or more local governmental agencies in obtaining financing.

(b)(1) In

(2) (A) In the case of the sale of school district property pursuant to this section, the school district, as part of that same sale transaction, simultaneously repurchases the same property that is the subject of the transaction.

(2)

(B) In the case of the lease of school district property pursuant to this section, the school district, as part of that same lease transaction, simultaneously leases back, for a term that is not substantially less than the term of that lease, the same property that is the subject of the transaction.

(c)

(3) The financing proceeds obtained by the school district pursuant to the transaction described in this section are expended for either or both of the following purposes:

(1)

(A) Capital outlay purposes, including the acquisition of real property for intended use as a schoolsite and the construction, reconstruction, and renovation of school facilities.

(2)

(B) For the purposes set forth in subparagraphs (A) and (B). clauses (i) and (ii). This paragraph subparagraph only applies if the financing proceeds to be used for purposes set forth below are obtained from the lease of real property that will be used to construct new affordable rental housing facilities for school district employees within the meaning of subdivision (d): (c):

(A)

(i) One-time capital outlay purposes. Proceeds to be used under this subparagraph clause shall be placed in a restricted portion of the school district’s general fund.

(B)

(ii) Maintenance of school district property. Proceeds to be used under this subparagraph clause shall be placed in a restricted portion of the school district’s general fund for routine repairs or to cover deferred maintenance.

(d)

(b) For purposes of this section, the construction, reconstruction, or renovation of rental housing facilities, including affordable rental housing facilities facilities, for school district employees constitutes a permissible capital outlay expenditure of the financing proceeds obtained by the school district.
(c) For purposes of this section, “affordable rental housing facility” means a housing development with a majority of its rents restricted to levels that are affordable to employees of the school district meeting the definition of “persons and families of low or moderate income” in Section 50093 of the Health and Safety Code.