Subdivisions: security.

Plain English Breakdown

The official source material does not provide specific details on the impact of the bill on developers' costs or timelines, nor does it explicitly state that the law protects buyers, owners, and renters by ensuring there is enough money set aside for improvements in new housing projects.

Subdivisions: Security

This law stops the Real Estate Commissioner from asking developers for extra money if a local agency already has enough security to cover improvements in a new housing project.

What This Bill Does

• Changes rules about when the Real Estate Commissioner can ask for security (money) from developers.
• Requires the Commissioner not to ask for more security if a local agency already has it for the same improvement.

Who It Names or Affects

• Developers of residential projects
• Real Estate Commissioner

Terms To Know

Subdivision Map Act

A law that controls how new neighborhoods and developments are planned and built.

Security (in this context)

Money or other assets set aside to make sure a developer will complete promised improvements in a housing project.

Limits and Unknowns

• The bill does not specify what happens if the local agency's security is not enough.
• It only applies to residential developments and projects, not commercial ones.
• The exact impact on developers' costs or timelines is unclear without more details.

Official Summary Text

AB 782, as amended, Quirk-Silva.
Subdivisions: security.
Existing law, the Subdivision Map Act, vests the authority to regulate and control the design and improvement of subdivisions in the legislative body of a local agency and sets forth procedures governing the local agency’s processing, approval, conditional approval or disapproval, and filing of tentative, final, and parcel maps, and the modification of those maps. The act requires prescribed security from a developer if the act or a local ordinance authorizes or requires the furnishing of security in connection with the performance of any act or agreement.
Existing law requires the Real Estate Commissioner to make an examination of any subdivision, and to, unless there are grounds for denial, issue to the subdivider a public report authorizing the sale or lease of the lots or parcels within the subdivision. Existing law specifies the grounds
for denial, including, among other things, the inability to demonstrate that adequate financial arrangements have been made for all offsite improvements included in the offering or the inability to demonstrate that adequate financial arrangements have been made for any community, recreational, or other facilities included in the offering.
This bill would prohibit the Real Estate Commissioner, in issuing a public report for a residential development or project, from requiring the furnishing of a security in connection with the performance of any act or agreement related to an improvement if the Real Estate Commissioner determines that
sufficient
security
sufficient to protect the interests of purchasers, owners, and lessees, as necessary,
has been furnished to a local agency for
the same improvement pursuant to the provisions above requiring security under the Subdivision Map Act.

Current Bill Text

Download Bill PDF