CA AB2065

Expands the definition of "local agency" to include sewer, water, utility, park districts, joint powers authorities, successor agencies to former redevelopment agencies, housing authorities, and other political subdivisions empowered to acquire and hold real property.

Requires local agencies to send written notice of availability to specified entities (housing sponsors, park departments, school districts, transit agencies) before disposing of surplus land, rather than upon written request.

Defines "dispose of" as sale, lease, transfer, or other conveyance of any interest in real property, and requires negotiations to be limited to sales price and lease terms including payment amounts and timing.

Establishes priority for entities proposing affordable housing, with tiebreaker priority given to the entity proposing the deepest average level of affordability; defines "priority" as exclusive good faith negotiation.

Requires that if a local agency does not reach agreement with a noticed entity and 10 or more residential units are developed on the property, at least 15 percent of units must be sold or rented at affordable housing cost to lower income households.