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AB 2139

Surplus lands: exempt surplus land: City of Ontario.

2025-2026 Regular Session Introduced by Robert Garcia

Expands exempt surplus land to specific Ontario Sports Empire parcels for master-planned, non-residential district uses with covenants, housing-setasides, and HCD oversight.

In committee: Set, first hearing. Hearing canceled at the request of author.
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WeVote Research Nonpartisan
Bill Summary · AB 2139

Summary of AB 2139 (2025-2026) – Surplus lands: exempt surplus land: City of Ontario

Note: This summary outlines the bill’s purpose, key provisions, affected parties, and timeline considerations. It focuses on substantive changes to California’s Surplus Land Act as they relate to the City of Ontario.

1) Purpose and intent

  • The bill adds a narrowly tailored exemption to the Surplus Land Act for land owned by the City of Ontario that is located within the Ontario Sports Empire sports and entertainment district.
  • The exemption applies when the land is part of an integrated, master-planned district adopted by the City of Ontario for coordinated development and is transferred for specific district purposes (e.g., stadiums, recreation facilities, public plazas, and related district infrastructure).
  • The Legislature’s findings emphasize that, for master-planned, publicly owned sports/entertainment districts, strict application of the Surplus Land Act could impede timely development and public benefits. The bill explicitly limits the exemption to non-residential, master-planned uses and excludes residential development from the exemption.

2) Key provisions and changes

  • New exemption: AB 2139 expands the definition of “exempt surplus land” to include certain Ontario land within the Ontario Sports Empire that:
    • Is identified by specific assessor parcel numbers (APNs) listed in the bill.
    • Is subject to a master plan, specific plan, or sectional planning area document formally adopted by the City of Ontario for coordinated development.
    • Is conveyed for purposes consistent with that plan (e.g., stadiums, sports fields, public spaces, structured parking, visitor-serving commercial uses, and related district facilities).
    • The exemption explicitly excludes residential development from the expansion of exempt surplus land.
  • Covenant/restriction requirement: Disposition of exempt surplus land must include a covenant or restriction recorded against the land at the time of sale or transfer, ensuring ongoing eligibility and public-use protections.
  • Financial prerequisites and housing set-aside: Ontario must deposit funds related to the disposition into a local housing-specific set-aside account and meet housing-related requirements (details below). The bill requires compliance with housing-set-aside mechanisms designed to ensure funds are used for affordable housing within the jurisdiction.
  • Notification and oversight:
    • The City of Ontario must provide written notification to the Department of Housing and Community Development (HCD) at least 30 days before disposing of exempt surplus land, including the city’s findings.
    • HCD may notify Ontario if it determines the city is in violation of the act’s provisions. If HCD does not respond within 30 days, the city’s notice is deemed compliant.
  • Penalties: If the city disposes of exempt surplus land in violation of these provisions, penalties similar to other surplus-land penalties apply (e.g., 30% of the greater of the final disposition value or fair market value for first violation; 50% for subsequent violations). Penalties are deposited into a local housing set-aside fund (or other housing-related funds) with specified timing and use requirements.
  • Scope limitation: The exemption applies only to the specified Ontario Sports Empire district parcels and does not apply to residential developments. It is narrowly tailored to the district’s master plan and development needs.
  • Legislative findings: The bill contains statutory findings asserting the necessity of a special statute for Ontario’s district, clarifying that this is not a general exemption but a targeted one for a unique, master-planned project.

3) Who or what is affected

  • City of Ontario:
    • Eligible to declare certain land within the Ontario Sports Empire as exempt surplus land if criteria are met.
    • Must comply with covenant recording, housing-set-aside deposits, and HCD notification procedures.
  • Department of Housing and Community Development (HCD):
    • Receives formal notifications from Ontario prior to disposition and reviews for compliance.
    • May determine non-compliance and trigger penalties if necessary.
  • Local housing market and housing programs:
    • Penalties and deposited funds are intended to support housing that is affordable to extremely low-, very low-, and low-income households within the jurisdiction, with funds potentially reverting to state programs if not expended timely.
  • General population:
    • The exemption focuses on non-residential district uses (sports, recreation, tourism, and related infrastructure) and does not remove residential development from Surplus Land Act considerations entirely, but it does not exempt residential development under this provision.

4) Procedural and timeline aspects

  • Effective and operative date: The amendment becomes part of the Government Code upon enactment, with the Ontario-specific provisions applying to dispositions within the Ontario Sports Empire district.
  • Notification timeline:
    • Ontario must provide HCD with written notification at least 30 days before disposing of exempt surplus land.
    • HCD has up to 30 days to determine whether the city is in violation and notify accordingly.
  • Compliance and enforcement:
    • If Ontario complies, disposition may proceed in accordance with the new exemption and covenant requirements.
    • Violations trigger penalties and require penalty funds to be used for affordable housing; failure to expend funds within specified timeframes can cause funds to revert to state programs.
  • Sunset/operative references:
    • The bill’s framework emphasizes a narrowly tailored, district-specific exemption; it does not create a broad, permanent exemption for all Ontario land beyond the listed parcels and district scope.

Overall, AB 2139 creates a targeted carve-out within California’s Surplus Land Act to facilitate timely development of the Ontario Sports Empire district by allowing exempt surplus land disposition under specified conditions and with housing-affirming safeguards.

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

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