In September 2019, the City purchased four parcels (APNs 010-121-001, 010-121-002, 010-121-004 and 010-121-005, totaling approximately 1.83 acres) located between Oak and Pine Streets and Railroad Avenue and Pacific Street from the Successor Agency using the City’s Low and Moderate Income Housing Asset Fund (see location exhibit below).
Effective January 1, 2020, the Surplus Land Act (AB 1486) (“Act”) was amended to address California’s shortage of affordable housing. In April, 2021, the California Department of Housing and Community Development released the Surplus Land Act Guidelines (“Guidelines”), which further detailed the procedures and scenarios governed by the Surplus Land Act. Under the Act and its Guidelines, local agencies are required to make formal action in a regular public meeting to declare land surplus and not necessary for the agency’s use. The declaration must be supported by written findings.
Following the City Council’s declaration, the City must notify various entities identified in the Act and its Guidelines (public agencies, affordable housing developers, parks and recreational districts, the State Resources Agency, local school districts, public entities in infill opportunity zones, etc.) and those registered with the State Department of Housing and Community Development of the surplus land availability. Any interested and qualified entities (pursuant to the requirements of the Act and its Guidelines) must notify the City of the desire to purchase or lease the land within 60 days of the release of the Notice of Availability. If the City receives a notice of interest, following the 60-day period, a subsequent 90-day good faith negotiation period commences. If no notices of interest are received, or if the price or terms cannot be agreed upon after the full 90-day good faith negotiation period, then the City may dispose of the surplus land without further regard to the Act, subject to certain affordability restrictions if the land is developed for residential use.
Prior to agreeing to terms for the disposition of the surplus land, the City must provide the Department of Housing and Community Development a description of the notices of availability sent, negotiations conducted with any responding entities, and a copy of any restrictions to be recorded against the property. The Department of Housing and Community Development then has 30 days to review the materials and process to ensure compliance with Act before the City can sell, lease, or otherwise dispose of the property.
It should be noted that the City-owned parcel to the north of the parcels being declared surplus does not need to be declared surplus because the City plans to retain that parcel for public parking.