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Task force approves clarified Surplus Lands Act guidance to favor housing and commercial development near major transit hubs

California State Transportation Agency SB125 Task Force · September 2, 2025

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Summary

After public comment and edits, the SB125 task force approved modified recommendations to clarify and streamline the Surplus Lands Act so public-agency land near major transit hubs is prioritized for affordable housing and complementary commercial development.

Task force staff presented tranche 2 material on land use, transit-oriented development and value capture. The staff suggested clarifying the Surplus Lands Act (SLA) to make it easier for public agencies to prioritize housing and development near transit and proposed a dedicated entity or center of expertise to support value-capture finance and project packaging.

Public commenters and task force members supported using surplus public land for affordable housing and noted procedural obstacles when multiple agencies own or must declare surplus on contiguous parcels. Several members asked staff to clarify whether the intent was to revive elements of the old redevelopment approach or to create a new technical-assistance entity. Staff said the recommendation is deliberately broad: it would direct the legislature to consider an entity or mechanism to facilitate incremental financing tools and multiagency coordination while leaving structure and governance to legislative design.

Following drafting changes to emphasize both affordable housing and commercial development near transit and to retain a focused recommendation to address specific SLA issues, the task force voted to approve the modified U1 (clarify the Surplus Lands Act to prioritize affordable housing and commercial development on land owned by public agencies near major transit hubs) and modified U5 (streamline the SLA to appropriately deliver homes and communities near transit). The motion carried with 15 votes in favor.