1. (a) Offer at Priority 3. Housing Related Public Entities that may purchase at Priority 3 are the City of Pasadena and the City of South Pasadena as follows:

   1. (1) Unoccupied Surplus Residential Properties. When Priority 3 is specified as the next priority by § 1477.2(a)(5) or § 1477.3(a)(5), then all unoccupied Surplus Residential Properties, including unoccupied SB 580 properties identified in § 1484.2, shall be offered to the city in which the property is located at the Minimum Sales Price. Surplus Residential Properties identified in § 1481.4 cannot be sold at Priority 3 until after all Priority 1 and 2 sales have closed escrow.
   2. (2) Occupied Surplus Residential Properties. When Priority 3 is specified as the next priority by § 1477.2(a)(6) or § 1477.3(a)(6), then all Surplus Residential Properties not already sold shall be offered to the city in which the property is located at a Reasonable Price pursuant to this section.
   3. (3) Surplus Nonresidential Properties. When Priority 3 is specified as the next priority by § 1477.2(b)(2) or § 1477.3(b)(2), then all unimproved Surplus Nonresidential Properties not already sold shall be offered to the city in which the property is located at a Reasonable Price pursuant to this section.

2. (b) Soliciting Interest. The Department will provide to each Housing-Related Public Entity a written list of Surplus Residential Properties and, if applicable, Surplus Nonresidential Properties to be offered for sale within its jurisdictional boundaries. For each such Surplus Residential and Surplus Nonresidential Property on the list, the Department will provide the following information:

   1. (1) The address; and
   2. (2) The Reasonable Price, which for Priority 3, is set at the Minimum Sales Price; and
   3. (3) A copy of the current lease or rental agreement, if any; and
   4. (4) Copies of all repair records for the prior three years; and
   5. (5) Copy of the Use and Resale Restrictions.
3. (c) Response. If a Housing-Related Public Entity wants to purchase any of the properties identified on the list provided to it pursuant to (b), then it shall notify the Department in writing of the properties from the list it wants to purchase within 45 calendar days from the postmarked date of the letter sent pursuant to (b).

4. (d) Sales Contracts. The Department will send a sales contract to a Housing-Related Public Entity for each property identified by the entity pursuant to (c), subject to the following:

   1. (1) Properties identified pursuant to (c) shall be on the list provided to the entity pursuant to (b).
   2. (2) The sales contract shall be executed and returned to the Department within 60 calendar days of the date the Department sends the contract.
5. (e) Escrow. Upon execution of the sales contract, the Housing-Related Public Entity will have 120 calendar days to close escrow. Upon written request, the Department will provide an additional 30 calendar days to close escrow. The Housing-Related Public Entity must also comply with Government Code § 54239.5(b)(4) or § 54239.6(b)(4)(A), as applicable, before closing escrow on the purchase of unoccupied Surplus Residential Properties under § 1477.2(a)(5) or § 1477.3(a)(5).
6. (f) Closing Costs and Escrow Fees. The purchasing Housing-Related Public Entity shall pay all closing costs and escrow fees.
7. (g) No Warranty. Any Priority 3 sale is “as-is” and without warranty.

Note: Authority cited: Sections 54237, 54237.10, 54239.4, 54239.5 and 54239.6, Government Code. Reference: Sections 54236, 54237, 54239.4, 54239.5 and 54239.6, Government Code.

History

1. New section filed 7-26-2016; operative 7-26-2016 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 31).

2. Repealer and new section filed 12-13-2021 as an emergency; operative 12-13-2021 (Register 2021, No. 51). Pursuant to Government Code Section 54237.10, this is a statutorily deemed emergency and the emergency language remains in effect until 12-14-2023. A Certificate of Compliance must be transmitted to OAL by 12-13-2023 or emergency language will be repealed by operation of law on the following day.

3. Amendment of subsections (a)-(b) and (e)3 and Note filed 4-7-2022 as an emergency; operative 4-7-2022 (Register 2022, No. 14). Pursuant to Government Code section 54239.4(f), this is a statutorily deemed emergency and the emergency language remains in effect until 4-7-2024. A Certificate of Compliance must be transmitted to OAL by 4-7-2024 or emergency language will be repealed by operation of law on the following day.

4. Refiling of 4-7-2022 emergency amendments, including amendment of section and Note, on 7-3-2023 as an emergency; operative 7-3-2023 (Register 2023, No. 27). Pursuant to Government Code section 54239.5(e), this is a statutorily deemed emergency and the emergency language remains in effect until 9-30-2024. A Certificate of Compliance must be transmitted to OAL by 9-30-2024 or emergency language will be repealed by operation of law on the following day.

5. Pursuant to Government Code section 54237.10(c), as added by Assembly Bill 1038 (Stats. 2024, Ch. 347), a Certificate of Compliance must be transmitted to OAL by 1-31-2026 or the language in the emergency order of 7-3-2023 (Register 2023, No. 27) will be repealed by operation of law the following day (Register 2024, No. 41).

6. Certificate of Compliance as to 7-3-2023 order, including amendment of section and Note, transmitted to OAL 6-25-2025 and filed 8-7-2025; operative 8-7-2025 pursuant to Government Code section 11343.4(b)(3) (Register 2025, No. 32).