CA AB1635

Department of General Services must enter into good faith negotiations to lease the Hillcrest property (3960 Normal Street, San Diego) to a housing sponsor on or before January 1, 2026, upon terms the department determines are in the state's best interest.

Lease must be with a housing sponsor and allow for development of housing development projects, consistent with Section 14671.2 requirements.

Department of General Services is not required to lease the property if it determines after good faith negotiations that leasing is not in the state's best interest, and must notify the Legislature in writing if making this determination.

All proceeds from the lease shall be deposited into the Motor Vehicle Account in the State Transportation Fund for expenditure by the Department of Motor Vehicles, after reimbursing the Department of General Services for lease-related costs.

Legislature finds that development should prioritize affordable housing, mixed-use development, shared parking, public space improvements, farmer's market accommodation, senior services, and preservation of LGBTQ+ historic sites consistent with San Diego's planning.