Bill
AB 2525
AB 2525 would exempt Mission Bay Park lands from standard surplus-land rules, require housing covenants on disposals, and add state oversight with penalties to fund affordable hous
Purpose and intent
- AB 2525, introduced by Assembly Member Ward, would create a special statute exempting Mission Bay Park lands (San Diego) from certain statewide surplus-land disposal requirements.
- The bill asserts a need to improve economic opportunities in Mission Bay Park for the City of San Diego and codifies a tailored set of rules for this park.
Key provisions and changes
- Exemption for Mission Bay Park: Section 54222.3.2 adds a new provision exempting Lands comprising Mission Bay Park, located within the City of San Diego, from the standard surplus-land disposal article (Article 2 of the Government Code that governs surplus land disposition by local agencies).
- The exemption applies to lands held for park, recreation, and public trust purposes as of January 1, 2026, and defined by the Mission Bay Park Master Plan Update (1994, updated 2002).
- The exemption is conditioned on certain criteria, including existing commercial, retail, hotel, parking, or conference uses and lease arrangements.
- Expanded exemption framework for Mission Bay Park: Section 54222.3.2(a) specifies that Mission Bay Park lands meeting these conditions will be deemed exempt surplus land under subparagraph (T) of Section 54221(f)(1) when:
- The land contains existing commercial/retail/hotel/parking/conference uses as of Jan 1, 2026.
- Any expansion of an existing use does not encroach on open space/park purposes.
- The land is subject to a lease agreement.
- City-required procedures to declare exempt surplus land:
- The City must declare the land exempt surplus land in a regular public meeting and make findings that the land is not necessary for the city’s use and that disposition does not harm public use.
- The lease area must remain below a 25% cap (as imposed by the city charter), and relevant restrictions or covenants must be recorded on disposition.
- At least 30 days prior to disposal, the City must notify the California Department of Housing and Community Development (HCD) with findings and restrictions; HCD must respond within 30 days indicating whether the disposition complies or not. A failure to notify can trigger civil penalties.
- If HCD determines compliance, disposal may proceed; if not, the City has up to 60 days to cure alleged violations (unless disposition occurs sooner or the department determines it’s not a violation sooner).
- Penalties for noncompliance:
- Violations can trigger civil penalties: 30% of the greater of final sale price or fair market value for a first violation; 50% for subsequent violations.
- Penalties are payable into a local housing set-aside account or, at the local option, into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund.
- Penalties must be used to finance housing affordable to extremely low-, very low-, or low-income households, with timing requirements (generally within five years; unexpended funds revert to state funds for housing in the same jurisdiction).
- Applicable penalties are in addition to other legal remedies.
- Covenant/restriction: Any disposal under this framework must include a covenant or restriction running with the land to ensure continued affordability and compliance with the statute.
- Sunset and legislative finding: The bill includes a finding that a special statute is necessary for Mission Bay Park due to unique local conditions.
Affected parties and scope
- Primary affected area: Mission Bay Park lands within the City of San Diego (as defined by the Mission Bay Park Master Plan).
- Local entity: City of San Diego, acting as the steward of the park and its leases.
- Oversight: California Department of Housing and Community Development (HCD) plays a monitoring and compliance role, issuing notifications and potential penalties for violations.
- Housing-impacts focus: Penalties and set-aside funds are oriented toward creating or preserving housing affordable to lower-income households.
Procedural/timeline aspects
- Implementation rests on local public action (city council declarations) and formal notices to HCD.
- Notification and review timeline: City must notify HCD at least 30 days prior to disposition; HCD has up to 30 days to respond; if issues are found, a cure window of up to 60 days applies.
- Penalty and fund-tracking mechanics are specified, with five-year expenditure windows for local housing-set-aside funds and a reversion mechanism if not expended.
Overall impact
- The bill provides a tailored, permissive framework for disposing of Mission Bay Park land under exempt surplus land rules, with built-in housing affordability covenants and state-local oversight to ensure that disposals do not undermine public use and that a portion of proceeds supports affordable housing. It narrows the general surplus-land disposal requirements for Mission Bay Park specifically, while embedding accountability through notifications, covenants, and penalties.
Compiled from official sources — confirm details with the bill’s official record.
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