California 2025-2026 Regular Session

California Assembly Bill AB2329

Introduced
2/19/26  
Refer
3/16/26  
Report Pass
4/13/26  
Refer
4/14/26  
Report Pass
4/23/26  

Caption

An act to amend Sections 54236, 54237, 54237.9, 54238, 54238.8, 54239.5, and 54239.6 of, and to add Sections 54238.1 and 54238.2 to, the Government Code, relating to surplus residential property.

Impact

The implications of AB 2329 are significant as it alters the priorities and procedures state agencies must follow when selling surplus residential properties. It requires that properties be offered first to current or former tenants at a condition-adjusted fair market price, allowing tenants not currently in good standing to also have the opportunity to purchase. Furthermore, the proceeds from these sales are to be directed into an affordable housing trust fund, with specified uses underlining the importance of affordable housing development in the area, thereby affecting local housing strategies.

Summary

Assembly Bill 2329, introduced by Assembly Member Fong, aims to amend existing government code provisions regarding the disposal of surplus residential property specifically in the City of South Pasadena. The bill notably adjust the calculation of fair market value for such properties to a condition-adjusted fair market value, which factors in the property's current state and required repairs while basing it on appraisals as of October 13, 2019. This change aims to ensure that residents, particularly current tenants, are offered opportunities to purchase these surplus properties at fairer prices reflecting their actual condition.

Sentiment

The sentiment surrounding AB 2329 appears to lean towards a supportive view, promoting equitable homeownership opportunities for tenants and addressing housing affordability concerns. However, there may be contrasting opinions among various stakeholders regarding the feasibility and implementation of these provisions. Supporters of the bill argue that it enhances housing accessibility in a high-demand area, while opponents may highlight concerns over potential implications for property values and taxpayer revenue.

Contention

Contentious points in AB 2329 revolve around the changes to the selling priorities for surplus residential properties and the financial implications of assessing properties at condition-adjusted fair market values for taxation purposes. Critics may be apprehensive about the long-term effects this could have on local real estate markets and public budgets, particularly if properties are sold at lower than traditionally assessed fair market values. Moreover, the requirement for the City of South Pasadena to handle sales and fund allocations presents additional administrative responsibilities that could lead to scrutiny.

Companion Bills

No companion bills found.

Previously Filed As

CA AB1594

An act to amend Section 54237 of the Government Code, relating to surplus land.

CA AB76

Surplus land: exempt surplus land: sectional planning area.

CA SB0585

Probate: guardians and conservators; requirement to have an appraisal for the sale of real property; provide for. Amends sec. 5423 of 1998 PA 386 (MCL 700.5423).

CA HB2089

Relating to surpluses from the disposition of foreclosed property; and prescribing an effective date.

CA SB2526

AN ACT to amend Tennessee Code Annotated, Title 5, Chapter 14, Part 1 and Section 5-21-130, relative to the sale of surplus real property by counties.

CA HB143

A BILL to amend and reenact ยง 2.2-1156 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 15.2-1800.5, relating to surplus real property; prioritization of disposition for affordable and middle-income housing.

CA HB2088

Relating to surpluses from the disposition of foreclosed property; prescribing an effective date.

CA HB2096

Relating to surpluses from the disposition of foreclosed property; prescribing an effective date.

CA SB16

An act to amend Section 5121 of the Welfare and Institutions Code, relating to mental health.

CA SB876

An act to amend Section 2071 of, to amend, repeal, and add Sections 790.035, 929, 2051.5, 2060, 2071, 10102, 10103, 10103.2, 10103.4, 12928.7, and 14047 of, and to add Section 10103.8 to, and to repeal and add Section 10103.2 of, the Insurance Code, relating to insurance.

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