Amend 2 Cal

Amend 2 Cal. Code of Regs. Section 18705.2 to read:

18705.2. Materiality Standard: Economic Interests in Real Property.

(a) Directly involved real property ~~interests~~. Any reasonably foreseeable financial effect on real property in which a public official has an economic interest, and which real property is directly involved in a decision before the official's agency, is deemed material. The financial effect of a governmental decision on real property which is directly involved in the governmental decision is presumed to be material. ~~[{Decision no. 1, option a:}~~This presumption may be rebutted by proof that it is not reasonably foreseeable that the governmental decision will have any financial effect on the real property.] [{Decision no. 1, option b:} This presumption may be rebutted by proof that it is not reasonably foreseeable that the governmental decision will have any more than a de minimus financial effect on the real property.] [{Decision no. 1, option c:}This presumption may be rebutted by proof that it is not reasonably foreseeable that the governmental decision will have a financial effect of more than [$250] [$500] [$1,000] [$____] positive or negative, on the real property.]

(b) Indirectly involved real property ~~interests~~ ~~[{Decision 5:}~~, other than leaseholds.]

The financial effect of a governmental decision on real property which is indirectly involved in the governmental decision is presumed not to be material. This presumption may be rebutted by proof that there are specific circumstances regarding the governmental decision, its financial effect, and the nature of the real property in which the public official has an economic interest, which make it

[{Decision 1, option (a):}

reasonably foreseeable that the decision will have a material financial effect on the real property in which the public official has an interest.

Factors relevant in rebutting the presumption and proving that there will be a "reasonably foreseeable material financial effect" on the real property in which the official has an interest include, but are not limited to:

(1) The proximity of the property which is the subject of the decision and the magnitude of the proposed project or change in use in relationship to the property in which the official has an interest;

(2) Whether it is reasonably foreseeable that the decision will affect the development potential or income producing potential of the property;

(3) In addition to the foregoing, in the case of residential property, whether it is reasonably foreseeable that the decision will result in a change to the character of the neighborhood including, but not limited to, effects on traffic, view, privacy, intensity of use, noise levels, air emissions, or similar traits of the neighborhood.]

[{Decision 1, option (b):}

reasonably foreseeable that the decision will have a financial effect of: (1) ten thousand dollars ($10,000) or more on the fair market value of the real property in which the official has an interest; or (2) one thousand dollars ($1,000) or more on the rental value of the property in a 12 month period.

(2) Whether it is reasonably foreseeable that the decision will affect the development potential or income producing potential of the property;

[{Decision 1, option (c):}

reasonably foreseeable that the decision will have a material financial effect on the real property in which the public official has an interest. The financial effects must be more than de minimus, including, but not limited to, any of the following:

(1) The decision will affect the development potential or income producing potential of the property;

(2) The decision will cause a change in use of the real property

(3) The decision will result in a change to the character of the neighborhood including, but not limited to, effects on traffic, view, privacy, intensity of use, noise levels, air emissions, or similar traits of the neighborhood.]

(b) Indirectly involved real property interests [{Decision 5:}, other than leaseholds].

[ (1) The effect of a decision is material as to real property in which an official has a direct, indirect or beneficial ownership interest (not including a leasehold interest) if any of the following applies:

(A) The real property in which the official has an interest, or any part of that real property, is located within a 300 foot radius of the boundaries (or the proposed boundaries) of the property which is the subject of the decision, unless the decision will have no financial effect upon the official's real property interest.

(B)The decision involves construction of, or improvements to, streets, water, sewer, storm drainage or similar facilities, and the real property in which the official has an interest will receive new or substantially improved services.

(C) The real property in which the official has an interest is located outside a radius of 300 feet and any part of the real property is located within a radius of 2,500 feet of the boundaries (or the proposed boundaries) of the property which is the subject of the decision and the decision will have a reasonably foreseeable financial effect of:

(i) Ten thousand dollars ($10,000) or more on the fair market value of the real property in which the official has an interest; or

(ii) Will affect the rental value of the property by $1,000 or more per 12 month period.

(2) (1) The reasonably foreseeable financial effect of a governmental decision is not considered material as to on real property in which an official has a direct, indirect or beneficial an economic interest [ {Decision 5:} (not including , other than a leasehold interest),] if the real property in which the official has an interest is located entirely beyond a {Decision 3:} [2,500] [___] foot radius of feet from the boundaries (or the proposed boundaries) of the property which is the subject of the governmental decision; unless:

(A) There are specific circumstances regarding the governmental decision, its financial effect, and the nature of the real property in which the public official has an economic interest, which make it reasonably foreseeable that the fair market value or the rental value of the real property in which the official has an interest will be affected by the amounts set forth in subdivisions (b)(1)(C)(i) or (ii) that the governmental decision will increase or decrease the fair market value of the real property in which the public official has an economic interest by ten thousand dollars ($10,000) or more, or will increase or decrease the rental value of that property by one thousand dollars ($1,000) or more per twelve-month period; and,

(B) Either of the following apply:

(i) The effect will not be substantially the same as the effect upon at least 25 [50] percent of all the properties which are within a 2,500 foot radius of feet from the boundaries of the real property in which the public official has an economic interest; or

(ii) There are not at least 10 properties under separate ownership within a 2,500 foot radius of feet from the property in which the public official has an economic interest.

(3) (2) For governmental decisions which may affect an interest in real property but which do not involve a subject property from which the distances prescribed in subdivisions (b)(1) and (b)(2) can be determined, the monetary materiality standards contained in subdivision (b)(1)(C)(i)(A) and (ii) shall be applied.

(4) (3) For a governmental decision which is covered by subdivision (b)(1)(C)(A) or (b)(2)(A) or (b)(3), factors which shall be considered in determining whether the governmental decision will have the specified financial effects set forth in subdivision (b)(1) and (b)(2) include, but are not limited to:

(A) The proximity of the real property which is the subject of the governmental decision and the magnitude of the proposed project or change in use in relationship to the real property in which the public official has an economic interest;

(B) Whether it is reasonably foreseeable that the governmental decision will affect the development potential or income producing potential of the real property in which the public official has an economic interest;

(C) In addition to the foregoing, in the case of residential real property, whether it is reasonably foreseeable that the governmental decision will result in a change to the character of the neighborhood including, but not limited to, effects on traffic, view, privacy, intensity of use, noise levels, air emissions, or similar traits of the neighborhood.

(5) (4) Redevelopment Decisions: For purposes of this section "the boundaries (or proposed boundaries) of the property which is the subject of the decision" are the boundaries (or proposed boundaries) of the redevelopment project area whenever the decision is a redevelopment decision to designate the survey area, to make findings of blight, to select the project area, to adopt the preliminary plan, to form a project area committee, to certify the environmental document, to adopt the redevelopment plan, to add territory to the redevelopment area, or to rescind or amend any of the above decisions. ]

{Decision 2, option b:}

(b) Indirectly involved real property interests [{Decision 5:}, other than leaseholds].

(1) The effect of a decision is material as to real property in which an official has a direct, indirect or beneficial ownership interest (not including a leasehold interest) if any of the following applies:

(A) The real property in which the official has an interest, or any part of that real property, is located within a 300 foot radius of the boundaries (or the proposed boundaries) of the property which is the subject of the decision, unless the decision will have no financial effect upon the official's real property interest.

(B)The decision involves construction of, or improvements to, streets, water, sewer, storm drainage or similar facilities, and the real property in which the official has an interest will receive new or substantially improved services.

(C) The real property in which the official has an interest is located outside a radius of 300 feet and any part of the real property is located within a radius of 2,500 feet of the boundaries (or the proposed boundaries) of the property which is the subject of the decision and the decision will have a reasonably foreseeable financial effect of:

(i) Ten thousand dollars ($10,000) or more on the fair market value of the real property in which the official has an interest; or

(ii) Will affect the rental value of the property by $1,000 or more per 12 month period.

(2) The reasonably foreseeable effect of a decision is not considered material as to real property in which an official has a direct, indirect or beneficial economic interest (not including , a leasehold interest), if the real property in which the official has an interest is located entirely beyond a 2,500 foot radius of the boundaries (or the proposed boundaries) of the property which is the subject of the decision; unless:

(A) There are specific circumstances regarding the decision, its effect, and the nature of the real property in which the official has an interest, which make it reasonably foreseeable that the fair market value or the rental value of the real property in which the official has an interest will be affected by the amounts set forth in subdivisions (b)(1)(C)(i) or (ii); and,

(B) Either of the following apply:

(i) The effect will not be substantially the same as the effect upon at least 25 percent of all the properties which are within a 2,500 foot radius of the boundaries of the real property in which the official has an interest; or

(ii) There are not at least 10 properties under separate ownership within a 2,500 foot radius of the property in which the official has an interest.

(2) (1) The reasonably foreseeable financial effect of a governmental decision is not considered material as to on real property in which an public official has a direct, indirect or beneficial an economic interest [ {Decision 5:} (not including , other than a leasehold interest),] if the real property in which the official has an interest is located entirely beyond a {Decision 3:} [2,500] [___] foot radius of feet from the boundaries (or the proposed boundaries) of the property which is the subject of the governmental decision, unless less than ten percent (10%) of all property owners, all homeowners, or all households in the jurisdiction of the public official’s agency, or the district he or she represents, will be financially affected by the decision in substantially the same manner.

(3) (2) For governmental decisions which may affect an interest in real property but which do not involve a subject property from which the distances prescribed in subdivisions (b)(1) and (b)(2) can be determined, the monetary materiality standards contained in subdivision (b)(1)(C)(i) and (ii) shall be applied.

(4) For a decision which is covered by subdivision (b)(1)(C) or (b)(2)(A) or (b)(3), factors which shall be considered in determining whether the decision will have the effects set forth in subdivision (b)(1) and (b)(2) include, but are not limited to:

(A) The proximity of the property which is the subject of the decision and the magnitude of the proposed project or change in use in relationship to the property in which the official has an interest;

(B) Whether it is reasonably foreseeable that the decision will affect the development potential or income producing potential of the property;

(C) In addition to the foregoing, in the case of residential property, whether it is reasonably foreseeable that the decision will result in a change to the character of the neighborhood including, but not limited to, effects on traffic, view, privacy, intensity of use, noise levels, air emissions, or similar traits of the neighborhood.

(5) (3) Redevelopment Decisions: For purposes of this section "the boundaries (or proposed boundaries) of the property which is the subject of the decision" are the boundaries (or proposed boundaries) of the redevelopment project area whenever the decision is a redevelopment decision to designate the survey area, to make findings of blight, to select the project area, to adopt the preliminary plan, to form a project area committee, to certify the environmental document, to adopt the redevelopment plan, to add territory to the redevelopment area, or to rescind or amend any of the above decisions. ]]

(c) [{Decision 5:} Indirectly involved leasehold interests in real property. Real property in which a public official has an economic interest because of a lease] The financial effect of a governmental decision is material ~~as to a leasehold interest in real property~~ on real property in which a public official has an economic interest because of a lease if any of the following applies:

(1) The governmental decision will change the legally allowable use of the leased real property, and the lessee has a right to sublease the real property;

(2) It is reasonably foreseeable that the lessee will change the actual use of the leased real property as a result of the governmental decision;

(3) It is reasonably foreseeable that the governmental decision will result in a change in the actual use of real property within 300 feet of the leased property, and the changed use will significantly enhance or significantly decrease the use or enjoyment of the leased real property;

(4) The governmental decision will increase or decrease the amount of rent for the leased property by $250 or 5+percent, whichever is greater, during any 12-month period following the governmental decision; or

(5) The governmental decision will result in a change in the termination date of the lease.

(d) Cross-references:

(1) For the definition of "economic interest in real property," see Government Code Sections 87103(b) and 82033, and California Code of Regulations, Title 2, Section 18703.2.

(2) To determine whether real property in which a public official has an economic interest is directly or indirectly involved in a governmental decision, see California Code of Regulations, Title 2, Section 18704.2.

(3) For the definition of "subject of the governmental decision," see California Code of Regulations, Title 2, Section 18704.2(a).

(4) For the definition of "leasehold interest," see California Code of Regulations, Title 2, Section 18233.

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