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Bill

SB 502

Local education agency-owned land: development of affordable housing.

2025-2026 Regular Session Introduced by Jesse Arreguín and 1 co-sponsor

California bill allowing school districts to develop affordable housing on surplus property to address housing shortage while generating revenue for education agencies.

May 23 hearing: Held in committee and under submission.
#localeducationagency-ownedland #developmentofaffordablehousing
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Bill Summary · SB 502

Legislative bill overview

SB 502 authorizes California school districts and local education agencies to develop affordable housing on their unused or surplus land. The bill streamlines the process for LEAs to partner with developers or use their property directly for residential construction aimed at low-income households. This leverages the significant real estate holdings of education agencies to address California's affordable housing shortage.

Why is this important

California faces a severe affordable housing crisis, with insufficient supply driving up costs across the state. School districts control thousands of acres of land that often sit underutilized, representing a potential resource for housing development. Using this land for affordable housing could generate revenue for education agencies while simultaneously addressing a critical social need.

Potential points of contention

  • Educational mission conflict: Critics may argue that repurposing education agency land diverts resources and focus from core educational priorities and facilities maintenance/expansion
  • Developer partnership concerns: Questions about appropriate vetting of private developers, profit-sharing arrangements, and ensuring genuine affordability rather than market-rate development
  • Fiscal impact disagreement: Disputes over whether housing revenue genuinely offsets educational costs or creates net losses when considering property taxes forfeited and infrastructure demands from new residents

Compiled from official sources — confirm details with the bill’s official record.

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