CA AB1038

Revises procedures for state agencies disposing of surplus residential property in Pasadena and South Pasadena, requiring properties to be offered first to former owners and long-term occupants, then to the respective cities for affordable housing development.

Requires City of Pasadena to commence construction or complete acquisition of at least 3 affordable housing units for every unoccupied home purchased by December 31, 2026, and City of South Pasadena to do the same by July 1, 2028.

Mandates that affordable housing units produced remain available for 55 years for rental and 45 years for owner-occupied properties, with regulatory agreements ensuring affordability levels.

For South Pasadena only, requires streamlined ministerial approval for parcels used for affordable housing development and exempts such parcels from height restrictions and other density-limiting measures.

Extends emergency regulations for State Route 710 corridor property sales to January 31, 2026, and requires prevailing wage payments for construction projects undertaken on these properties.