(a) The Legislature finds and declares all of the following:

(1) The Fairview Developmental Center is located in the City of Costa Mesa, in the County of Orange, and is composed of a developed campus covering approximately 102 acres adjacent to Costa Mesa Country Club.

(2) The Fairview Developmental Center opened in 1959 and is a state-run residential care facility dedicated to serving individuals with developmental disabilities.

(3) The State Department of Developmental Services announced the warm shutdown of the facility and acknowledged that it was not the intent of the state to follow the traditional state surplus property process.

(4) The State Department of Developmental Services is relocating all Fairview Developmental Center residents to homes in the community, and may use former active units for short-term needs.

(5) California is experiencing an acute affordable housing crisis. The cost of land significantly limits the development of affordable housing. It is the intent of the Legislature that priority be given to affordable housing in the disposition of the Fairview Developmental Center state real property.

(6) It is the intent of the Legislature to establish a partnership among the Department of General Services, the State Department of Developmental Services, and the City of Costa Mesa that provides for an expedited land use planning process. During this process, the City of Costa Mesa will manage the planning process. The planning and disposition process is expected to be less than three years in duration.

(7) It is the intent of the Legislature that the Fairview Developmental Center property be utilized for a mixed-use development, including mixed-income housing. The development would include and prioritize affordable housing, including at least 200 units of permanent supportive housing, and open space.

(8) It is further the intent of the Legislature that priority be given to redevelopment concepts that include housing that is deed restricted to provide housing for individuals with developmental disabilities.

(b) The following definitions apply for purposes of this section:

(1) “Agreement” means the formal agreement between the State Department of Developmental Services and the City of Costa Mesa to implement a disposition and land use planning process.

(2) “City” means the City of Costa Mesa.

(3) “Council” means the City Council of the City of Costa Mesa.

(4) “Director” means the Director of the Department of General Services.

(5) “Department” means the State Department of Developmental Services.

(6) “Property” means all state-owned real property comprising the Fairview Developmental Center, less any acreage transferred to other state agencies by the Department of General Services.

(7) “Specific plan” means a comprehensive planning and zoning document for the Fairview Developmental Center property.

(c) (1) The department, upon those terms and conditions that it deems to be in the best interests of the state, may enter into an agreement with the city for the city to develop a specific plan for the property, and to manage the land use planning process integrated with a disposition process for the property, to be carried out by the Department of General Services. The disposition may include the sale or lease of the property, or property interest, the director deems to be in the best interests of the state. From funds appropriated by the Legislature for this purpose, the department shall allocate three million five hundred thousand dollars ($3,500,000) to the city to facilitate the disposition of the property by amending the general plan of the city and any appropriate planning documents and zoning ordinances, completing any environmental review, and addressing the economic feasibility of future development for the purposes intended by the Legislature.

(2) In carrying out the land use planning and disposition process pursuant to the agreement, the department, the director, and the city shall provide for the expeditious planning of future land uses for the site and an opportunity for community input, with the intent to provide certainty for the community and a potential developer, expedite marketing, and maximize interested third-party potential purchasers.

(3) The disposition of the property or property interests shall provide for affordable housing to the greatest extent feasible, and shall be upon terms and conditions the director deems to be in the best interests of the state.

(4) The agreement shall require that housing be a priority in the planning process and that any housing proposal determined to be appropriate for the property shall include affordable housing. The agreement and the development plan shall provide for housing and affordable housing at a level consistent with the January 2020 council-adopted strategy of 1,500 units and the housing assessment in the Department of General Services’ 2021 Infrastructure Assessment of up to 2,500 units for the site.

(d) (1) The department may enter into any additional agreements, upon terms and conditions that the department determines to be in the best interests of the state, to provide for the management, operations, and maintenance of the property.

(2) The intent of the Legislature is for expeditious planning and disposition for affordable and permanent supportive housing at the property. The agreement, any necessary land use approvals, including modifying the general plan, rezoning the property, approving a specific plan or plans, and any other action necessary for the implementation of the development plan or the disposition of the property, following CEQA review, shall only be subject to approval by the director and the council. Should the director determine that the transfer, sale, or final disposition of the property has been unduly delayed, the director may dispose of the property as deemed to be in the best interests of the state.

(e) The city shall provide quarterly reports to the department that shall include expenditures, contracts, and an update describing the progress of the expedited planning process.

(Added by Stats. 2022, Ch. 49, Sec. 1. (SB 188) Effective June 30, 2022.)