Surplus residential property: condition-adjusted fair market value: City of South Pasadena.

(1) Existing law establishes priorities and procedures that any state agency disposing of surplus property is required to follow. Existing law sets forth an order of priority for the disposal of specified surplus residential property, including that a state agency disposing of single-family surplus residential property first offer the property at the appraised fair market value to former owners and present occupants, and then offer the property at an affordable price to other present occupants who have occupied the property for a specified number of years and who meet certain income levels. Existing law sets certain parameters for the calculation of an affordable price for purposes of these provisions based on, among other things, the fair market value of the property. This bill would, instead, require the first tier priority offer to be based on the appraised condition-adjusted fair market value and would define "condition-adjusted fair market value" to mean the fair market value of the property as of October 13, 2019, and as adjusted as to reflect the existing "as is" condition of the property and the amount needed to make certain repairs and capital improvements, as provided. The bill would revise the above-specified parameters for calculating an affordable price to instead be based on the condition-adjusted fair market value. (2) If the surplus residential property is not sold pursuant to the priorities described above, or pursuant to other specified priorities, existing law requires the property to then be sold at fair market value, with priority given first to purchasers who are present tenants in good standing, as provided, and then to former tenants who were in good standing at the time they vacated the premises, as provided. This bill would, instead, require the property to be sold to those present or former tenants at condition-adjusted fair market value. This bill would require any dispute between the Department of Transportation and a purchaser regar