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HOUSING AUTHORITY AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: JUNE 27, 2023
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: A RESOLUTION DECLARING CERTAIN PROPERTY
LOCATED AT 120 SOUTH STATE COLLEGE BOULEVARD
EXEMPT SURPLUS LAND IN ACCORDANCE WITH THE
SURPLUS LAND ACT AS AMENDED BY ASSEMBLY BILL 1486
ATTACHMENT (Y/N): YES ITEM # 02
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the Governing Board of the Anaheim Housing Authority, by Resolution, declare certain Authority owned real property located at 120 S. State College Boulevard, Anaheim, CA (Site) as exempt surplus land; directing the Executive Director to follow procedures set forth in the Surplus Land Act, California Government Code Sections 54220 et seq.; making certain findings under the California Environmental Quality Act; and authorizing certain other actions.
DISCUSSION:
In April 2023, the Anaheim Housing Authority (Authority) acquired an approximately
0.51-acre parcel, home of the former Tampico Motel, located at 120 S. State College Boulevard (Site). Funds for the acquisition of the site derived from the State’s General Fund, secured by the Office of California Senator Tom Umberg to acquire, and convert the motel into permanent supportive housing. The site was acquired with the intention of developing affordable housing under the City’s Residential Uses of Motels, Commercial and Office Structures Ordinance (Anaheim Municipal Code 18.38.215) adopted in 2019.
On October 9, 2019, Governor Newsom signed Assembly Bill 1486 (AB 1486), which significantly amended the Surplus Land Act (SLA) and became effective on January 1, 2020. Among material changes to the SLA that will affect the project, AB 1486:
(a) expanded the definition of “local agency” to include a housing authority (among other local agencies), (b) amended and/or added definitions, including “surplus land” and “exempt surplus land”, (c) requires property owned by a local agency to be declared either “surplus land” or “exempt surplus land” before the local agency may take any action to sell or lease the property, (d) requires an annual inventory of surplus land submitted to the State of California, Department of Housing and Community Development (State HCD), and (e) adds new limitations to the term “agency’s use” to exclude “commercial or industrial uses or activities, including nongovernmental retail, Surplus Land Act Resolution – 120 S. State College Blvd.
June 13, 2023
entertainment, or office development,” or “property disposed of for the sole purpose of investment or generation or revenue.”
A local agency can declare a property “exempt surplus land” if the intended use is a housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income for a period of at least 55 years. Local agencies are prohibited from entering into negotiations for the disposition of land prior to compliance with certain procedural requirements, including: (i) declaration of land exempt surplus, (ii) undertaking a competitive bidding process, such as a Request for Proposals (RFP), to solicit interest of housing sponsors for the development of affordable housing and various public and private entities.
Staff reached out to the California Housing and Community Development (HCD) Department for guidance with this specific case, since, at first blush, this transaction appears to fall outside of the SLA process because the site was only recently acquired, and the approving action of the Housing Authority Board specifically indicates that the site will be used for the purposes of developing income restricted housing. After much discussion and review, State HCD suggested that staff proceed with a recommendation to formally declare the site exempt out of an abundance of caution. As a result, staff recommends that the Authority declare the Site exempt surplus land, thus allowing for development plans to move forward without any complications.
IMPACT ON BUDGET:
There is no impact to the Department’s budget.
Respectfully submitted,
Grace Ruiz-Stepter
Executive Director of
Anaheim Housing Authority
Attachments:
1. Resolution
2. Location Map