Corona City Council
January 7, 2026

DATE: 01/07/2026
TO: Honorable Mayor and City Council Members
FROM: City Manager’s Office
2026-17

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

ADOPTION OF THE 2026 LEGISLATIVE PLATFORM AND FINANCIAL PRIORITIES EXECUTIVE SUMMARY:

This staff report asks the City Council adopt the 2026 Legislative Platform and Financial Priorities which were previously presented at the December 3, 2025, City Council meeting.

RECOMMENDED ACTION:

That the City Council adopt the 2026 Legislative Platform and Financial Priorities, as previously presented at the December 3, 2025, City Council meeting.

BACKGROUND & HISTORY:

The Legislative Platform (Platform) has long served as a guiding document for responding to urgent requests to support, oppose, or take a neutral position on various legislative proposals throughout the year. Resolutions, major or unique issues, and significant items not directly addressed in the Platform will continue to be brought before the City Council for formal review and approval.

The 2026 Legislative Platform and Financial Priorities were presented to the City Council at the December 3, 2025, meeting for review and discussion. Feedback received at that

meeting has been incorporated into the final version presented for adoption through this staff report.

Staff may prepare letters of support or opposition consistent with the adopted Legislative Platform for the Mayor’s signature on behalf of the City. If the Mayor declines to sign, the Vice Mayor may sign in their place. If both decline, the matter will be brought before the full City Council. Legislative proposals not addressed within the Platform will likewise be presented to the Council for review and direction.

ANALYSIS:

The attached documents include the 2026 Legislative Platform and Financial Priorities, which outline the legislative priorities that guide staff and consultants as they actively support or oppose various legislative proposals throughout the year. These priorities inform efforts such as providing testimony, engaging in advocacy, or pursuing legislative action on key issues organized in 13 sections:

1. Community Services

2. Economic Development

3. Home Rule

4. Housing Reform

5. Homelessness

6. Municipal Finance

7. Public Safety

8. Public Utilities

9. Tort Reform

10.Transportation

11.Unfunded Mandates

12.Human Resources and Risk
Management

13.Municipal Communications
The Legislative Platform is intended to be strategic in nature and reflects the standing policy position of the City Council until a future update is adopted. The priorities are intentionally broad to provide flexibility when responding to diverse legislative proposals.

EDITS TO THE 2026 PLATFORM AND FINANCIAL PRIORITIES:

The following edits to the Legislative Platform and Financial Priorities incorporate City Council feedback received at the December 3, 2025, meeting, as well as staff recommendations.

Platform Edits:
 Add to Section 4. Housing Reform – Oppose legislation that adds new procedural requirements to the CEQA process that impose additional burdens and risks to public agencies.
 Add to Section 6. Municipal Finance – Oppose legislation that promotes divestment and violates a fiduciary duty to manage risk effectively.  Document formatting updates.

Edits to the 2026 Financial Priorities:

The financial priorities’ focus areas for 2026 remain the same as 2025: community services, public safety, and public utilities. The changes made are reflected in the amounts listed below for each priority project.

COMMUNITY SERVICES PROJECTS

City Park Revitalization Project $19m
Park Improvements $5.75m
Historic Civic Center Renovation $3.0m
Trails Construction $5.5m

PUBLIC SAFETY
Corona Wildfire Resilience Initiative $1.5m

PUBLIC UTILITIES
PFAS Treatment Facilities (3 Sites) $14m
Water Reclamation Facility #1, Improvements and Expansion $35m Sewer Main Replacement $4m

TRANSPORTATION
Magnolia Avenue Widening at Temescal Wash $15m
With the incorporation of Council feedback, the 2026 Legislative Platform and Financial Priorities are now presented for adoption. Additionally, the City Council also appointed Mayor Jacque Casillas and Vice Mayor Wes Speake as the City’s representatives for the 2026 Council - legislative delegation meetings.

FINANCIAL IMPACT:

There is no financial impact associated with the approval of the recommended action.

ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. This action requests City Council adoption of the 2026 Legislative Platform and Financial Priorities.

It can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment and therefore requires no further environmental analysis.

PREPARED BY: AMINAH MEARS, ASSISTANT TO THE CITY MANAGER REVIEWED BY: BRETT CHANNING, ASSISTANT CITY MANAGER
ATTACHMENTS:

1. Exhibit 1 – 2026 Legislative Platform Clean

2. Exhibit 2 – 2026 Financial Priorities Clean

1 2026
Legislative
Advocacy Platform

2 Purpose
The City of Corona Legislative Platform (“the Legislative Platform”) aims to establish and adopt City Council policy positions on various State and Federal legislation.

Adoption of the Legislative Platform guides City officials in advocating City interests to Federal, State, and County governments, thereby precluding the need for the Council to take individual positions reactively on legislative issues that arise during the year.

Objective
The Legislative Platform aims to promote proactive, timely representation of Corona’s interests through education, effective advocacy, and legislation.

Implementation
The Legislative Platform will be implemented as follows:

1. The City Manager shall direct the scope and activities of any State and Federal lobbyist hired on behalf of the City, consistent with the Legislative Platform and other directions provided by the City Council.

2. On an annual basis, the City Manager will present a Legislative Platform outlining the City’s position on various legislative issues for the City Council's consideration and adoption.

3. The Mayor and City Council will be informed of any legislative activities, proposed State or Federal legislation, and other policy-related matters that may have a direct and significant impact on the City’s fiscal, operational, and environmental health and the overall quality of life enjoyed by residents and other stakeholders.

4. The Mayor and City Council may establish joint advocacy efforts with other entities, including the Chamber of Commerce, the Corona-Norco Unified School District, the County of Riverside, and other cities.

5. The Mayor and Council, through their involvement with the League of California Cities, Riverside County Transportation Commission, the Western Riverside Council of Governments, and Southern California Association of Governments, may communicate with lawmakers at the County, State, and Federal levels through correspondence, personal contact, or testimony.

6. Letters of Support
a. Staff may prepare letters of support or opposition consistent with the adopted position in the Legislative Platform for signature by the Mayor on behalf of the City without taking the letter to the full Council, so long as the position letter represents the City Council’s adopted position as stated in the legislative platform.

3 b. Should the Mayor choose not to authorize their signature on a position letter, the Vice Mayor may sign in their stead. Where neither the Mayor nor Vice Mayor chooses to sign a position letter, the item will be placed on a meeting agenda for review and consideration by the full Council.
c. A summary of all position letters issued will be included in a regular Legislative update and distributed to the Council, outlining the need for them and citing the specific approved legislative policy used to expedite the city’s position.
d. In cases where a pending legislative proposal falls outside of the scope of the approved legislative platform, that item will be placed on a future council agenda for review and consideration by the full Council.

7. The Council has the option of adopting any one of 6 positions on proposed legislation:
a. Support - A support position indicates to the legislature, regulatory agencies, and other stakeholders that the City supports the legislation. b. Support if Amended - A support if amended position indicates to the corresponding legislature, regulatory agencies, and other stakeholders that the City supports the legislation if the requested changes are adopted.
c. Oppose—An opposed position indicates to the legislature, regulatory agency, and other stakeholders that the City opposes the legislation. d. Oppose Unless Amended—An oppose unless amended position indicates to the legislature, regulatory agencies, and other stakeholders that the City opposes the legislation in question unless the requested changes are adopted.
e. Neutral – A neutral position indicates to the corresponding legislature, regulatory agencies, and other stakeholders that the City is impartial on the legislation in question and does not wish to take a position or has formally removed their prior adopted position due to changes being made to the legislation or proposal (e.g., a bill that the City had an “oppose unless amended” position on was amended to address concerns, therefore the City is formally withdrawing its opposition and moving to a “Neutral” position).
f. Watch – A watch is traditionally an internal position that indicates the City is monitoring the legislation. Should the bill be amended, the City reserves the right to adopt a position as indicated above.

8. The Legislative Platform is not intended to limit the prerogative of individual Councilmembers from expressing their individual support for or opposition to any Local measure, State proposition, State or Federal legislation, or grassroots advocacy actions. However, in doing so, the Councilmember should clearly state that they are speaking for themselves, not on behalf of the Council or the City.

4 Standing Legislative Platform
The Legislative Platform reflects the adopted, standing position of the City Council until superseded. The priorities are generally stated so they can be applied broadly to various legislative proposals. Advocacy efforts on behalf of the City by staff or Councilmembers are expected to reflect the adopted position of the Legislative Platform. However, this is not intended to limit the prerogative of individual Councilmembers from expressing their individual support for or opposition to any Local measure, State proposition, State or Federal legislation, or grassroots advocacy actions. However, in doing so, the members should clearly state that they are speaking for themselves, not on behalf of the Council or the City.

The Legislative Platform is divided into 12 sections dealing with the following topics:

1. Community Services

2. Economic Development

3. Home Rule

4. Housing Reform

5. Homelessness

6. Municipal Finance

7. Public Safety

8. Public Utilities

9. Tort Reform

10. Transportation

11. Unfunded Mandates

12. Human Resources and Risk Management

13. Municipal Communications
Section 1. Community Services: Support activities that enhance the quality of life for Corona residents through effective education programs, safeguarding community services and facilities, and promoting arts and culture.

1.1. Library
a) Support efforts that provide funding for additional library services, including staff costs.
b) Support efforts that provide funding for library print and electronic materials. c) Support efforts to enhance understanding of how libraries are integral to building and sustaining our communities.
d) Support efforts that fund library and Heritage Room services, including additional archival and digitization services and staff and equipment costs. e) Support efforts Support efforts that provide funding for library branch extension.

1.2. Parks & Recreation
a) Support recreation programs and events efforts, especially for youth and seniors.
b) Support efforts that provide funding for adaptive/special needs programming. c) Support efforts that provide funding for improving recreational facilities. d) Support efforts that fund renovating and maintaining existing parks and recreation facilities to provide more sustainable facilities and trails. e) Support legislation that would expand the regional trail system and increase active transportation options within the City.

5 f) Support funding for trail projects that improve city connectivity and facilitate Cleveland National Forest access.
g) Support efforts that provide funding or reimbursement for volunteers and volunteerism.

Section 2. Economic Development: Support job creation, business attraction, and expansion to prosper Corona businesses and residents. Oppose legislative proposals or executive actions that hinder our community’s economic growth. a) Support efforts to grow the manufacturing industry.
b) Support efforts to retrain displaced/low-income workers. c) Support efforts to embrace living and working locally, particularly legislation that impacts housing costs and reduces greenhouse gas emissions. d) Support efforts to embrace innovation by seeding new businesses and linking new workers with new jobs and career pathways created by the pandemic. e) Support the creation of business incubators, such as the Corona Innovation Center, in partnership with local and regional partners that can lend expertise, resources, education, and access to capital.
f) Support efforts to embrace entrepreneurship by growing existing entrepreneurship tracks in Corona.
g) Support local Business Grants and California Dream Fund for those underrepresented and/or impacted by the pandemic, creating accessibility to capital and improving opportunities for innovation and entrepreneurship. h) Support legislation that promotes greater local jurisdiction flexibility with Surplus Land Act requirements relating to redevelopment, acquisition, or disposition of blighted commercial areas such as downtowns and older shopping centers.
i) Support initiatives that offer Vehicle Miles Exchange Travel Credit banking to residents and businesses to reduce driving and other vehicle miles traveled (VMT) reduction policies and programs.

Section 3. Home Rule: Preserve local governance and protect government revenue. a) Support efforts that allow local jurisdictions to operate under their police powers to reasonably control the use of property in the interest of the health, safety, and welfare of the community health, safety, and welfare. b) Oppose legislation that removes or limits local governments’ land use and development decisions.

Section 4. Housing Reform: Create a diverse, affordable, and sustainable housing environment that meets the needs of all residents while promoting responsible development and community well-being.
a) Support efforts that make affordable housing more attainable for local jurisdictions by providing financial resources or subsidies that are less competitive and do not require affordable housing developments to compete with one another.

6 b) Oppose expanding State and Federal authority over local jurisdictions' housing and land use decisions.
c) Oppose penalties on a jurisdiction’s Housing Element, such as monetary fines issued by the state and withholding state public transportation (“gas tax”) monies to local jurisdictions that cannot meet their Regional Housing Needs Allocation (RHNA).
d) Oppose housing legislation that restricts a jurisdiction’s local discretion or eliminates the public engagement process for evaluating the impacts of housing developments.
e) Oppose housing legislation that does not consider the differences of local jurisdictions and imposes a “one size fits all” requirement. f) Support legislation that reconsiders the methodology used in allocating the Regional.
g) Housing Needs Assessment (RHNA), considering the extensive growth in California cities since the inception of this law.
h) Support legislation providing RHNA credit for preserving affordable housing units.
i) Support tax increment financing tools, including re-establishment redevelopment agencies or other permanent ongoing state funding sources to subsidize low and very low-income housing.
j) Oppose legislation that mandates the elimination of impact fees for affordable housing, thus removing a jurisdiction’s ability to negotiate with developers on pending projects.
k) Support legislation that includes manufactured homes as an affordable option for residents and provides protection from predatory landlords. l) Support State-mandated rent stabilization (like AB1035-Muratshuchi, 2023) for mobile home parks.
m) Support anti-displacement legislation that promotes and protects the ability of our City’s most vulnerable residents, seniors who are physically and/or developmentally disabled, to remain in the community, including tenant protection and anti-price gouging policies.
n) Oppose legislation that adds new procedural requirements to the CEQA process that imposes additional burdens and risks to public agencies.

Section 5. Homelessness: Support State legislation to strengthen local government’s ability to set local policies relating to homelessness. a) Support legislation to incentivize and maintain city investments in homeless programs.
b) Support legislation to permanently include the Homeless Housing, Assistance, and Prevention Program (HHAP) in the State Budget at a recommended $3 billion statewide level.
c) Support legislation and funding opportunities for the development of permanent supportive housing, including resources to finance the development of new units and resources to provide long-term sustainability

7 for supportive services.
d) Support legislation and funding opportunities to increase Federal and State funding to prevent and reduce homelessness in Riverside County. e) Support legislation and funding opportunities for mental health and drug abuse treatment to address chronic homelessness in Riverside County. f) Support legislation and funding opportunities to improve discharge planning from jails and prisons and to expand re-entry housing programs to prevent and address homelessness among inmates, parolees, and probationers in Riverside County.

Section 6. Municipal Finance: Maintain a balanced budget and ensure that assets and resources are properly safeguarded and appropriated practically and efficiently. a) Support efforts that will protect the revenue base of local governments. b) Support efforts to redirect State and Federal tax dollars to the City of Corona. c) Support efforts that protect the ability of local governments to raise revenue responsibly.
d) Support efforts that allow the City to control operating costs for the City and its residents.
e) Oppose actions that will reduce the City of Corona revenues or limit the ability to raise revenue.
f) Support and monitor the lawful implementation of Proposition 1A, which was passed to protect local government finance.
g) Support state legislation and ballot measures that would authorize the City to lower the voter threshold to 55 percent for certain municipal bonds to fund the construction or rehabilitation of public infrastructure, including affordable housing.
h) Oppose legislation eliminating or redefining any development tax, fee, condition, or other monetary change.
i) Oppose legislation that promotes divestment and violates a fiduciary duty to manage risk effectively.

Section 7. Public Safety: Promote the general safety of all City residents. a) Support efforts that increase public safety within the City. b) Support efforts that fund or reimburse municipal public safety services. c) Support efforts to protect the health and safety of law enforcement officers and firefighters.
d) Oppose efforts that reduce funding dedicated to municipal public safety services.
e) Support legislation allowing cities to determine public safety service levels and services offered, from suppression staffing to Emergency Medical Services. f) Support emergency response funding initiatives that would support adequate local fire services and enhance the State’s ability to respond to major emergencies, including large-scale fires, rescues, and medical and hazardous materials incidents.

8 g) Support legislation that enhances Emergency Management Program Capabilities to include core functions performed during emergencies and daily program functions.
h) Support efforts that provide State and Federal funding to augment our capabilities in the four phases of Emergency Management:

Preparedness, Response, Recovery, and Mitigation.
i) Support legislation that would allow for effective law enforcement and oppose legislation that hampers that process.
j) Support wildland fire initiatives, such as fire prevention, mitigation, and suppression.
k) Support efforts to lengthen felony sentences for repeat offenders of retail theft.
l) Support legislation that recognizes serious crimes as felonies, not misdemeanors.
m) Support legislation to charge those who possess illegal drugs with a felony. n) Support efforts to improve coordination between customers, regulators, government officials, and public safety partners during public safety shut-off (PSPS) events.
o) Support efforts to address the cancellation of fire or home insurance and rate increases for Corona residents by the State Insurance Commissioner due to natural disasters.
p) Support efforts to ensure fair market cost for fire insurance for the city’s residents.

Section 8. Public Utilities: Preserve the local rate-making authority of municipally owned utilities and promote voluntary compliance with CEC reporting.

8.1 General
a) Oppose regulations that affect publicly owned utilities that do not consider the cost of implementation.
b) Support efforts to provide penalties for theft of metal and other crimes that can harm or jeopardize the delivery and safety of the City’s water, sewer, and electric systems.
c) Support efforts to provide funding for potable reuse, drought relief, disadvantaged communities, Delta management and sustainability, water supply reliability, statewide water system improvements, groundwater protection, water quality improvements, water reclamation, water conservation, watershed protection, and water bond issues. d) Support Federal efforts to address long-term drought through newly established water supply or water capture programs that will benefit the City of Corona.
e) Support Federal and State funding for long-term low and no-interest loan programs that will enable utilities to replace aging infrastructure. f) Oppose legislation that would reduce the inverse condemnation standard for incidents caused by a utility, whether retroactive or otherwise, and support the City’s ability to recover applicable damages.

9 8.2 Oppose legislation that imposes legal responsibility for PFAS on passive receivers such as water and wastewater utilities.

Water Supply
a) Support policies and principles that recognize and maintain the “co-equal” goals of water supply reliability and ecosystem enhancement for the California Delta.
b) Support the financing and construction of an alternative conveyance facility for the Delta to improve water supply reliability for the region and state. c) Support efforts to control and reduce imported water costs. d) Support the development of alternative water sources, such as desalinization plants and potable reuse, by streamlining the regulatory approval or permitting processes and providing funding for such projects. e) Support funding for planning and construction projects that provide for the sustainability of existing and future developments.
f) Support legislation and funding for projects that promote long-term regional water reliability.
g) Support funding for and create construction projects associated with reservoirs and dam-related projects that increase the storage volume to equal the required volume needed to meet the water supply volume needed for housing requirements mandated by the state.

8.3 Water Quality, Reclaimed Water and Greywater
a) Support water softener discharge and salinity management requirements to help maintain groundwater quality and reduce wastewater treatment costs. b) Support direct potable reuse of reclaimed water to help offset potable water use.
c) Support changes to the CEQA permitting process to help streamline the installation of reclaimed water lines within existing rights-of-way. d) Support the implementation of reasonable emergency requirements for water quality notifications to the public.
e) Support funding for water reclamation and advanced reclamation treatment technology projects.
f) Support policies that encourage science-based results for setting water quality standards.

8.4 Groundwater Management
a) Support voluntary groundwater monitoring regulations that maintain local control of groundwater supplies and management.
b) Support the increased use of stormwater and reclaimed water for groundwater recharge and storage funding for groundwater recharge basins.

10 8.5 Water Conservation
a) Support efforts to maintain reasonable and area-specific conservation targets.
b) Oppose statewide water conservation targets that are a targeted one-sizefits-all effort. c) Support funding for stormwater recharge planning and projects. d) Support legislation that seeks to solve the water crisis through supply enhancement and diversification, such as local stormwater capture and stormwater capture, increased storage in existing and new reservoirs.

Simplify regulations to promote such actions and projects. e) Support funding for turf removal projects on sports fields and eliminate the watering of fields.

8.6 Electricity
a) Support efforts to stabilize electricity rates.
b) Support the expansion of direct access programs that give electric customers a choice and encourage competitive pricing.
c) Support efforts to consolidate electrical reporting requirements for the California Energy Commission, the California Public Utilities Commission, and the Department of Energy.
d) Support funding for solar power projects and other alternative energy sources. e) Oppose expanding State and Federal authority and controls on municipal facilities or operations.
f) Support legislation and rule-making that would allow small Publicly Owned Utilities (POU), supplying less than 200,000 MWh of energy per year, to meet Renewable Portfolio Standards (RPS) and other obligations through flexible options that consider small POU constraints.
g) Support standardizing open-source protocol for electric vehicle charging station networks.
h) Support monitoring mandatory Electric Utility grid reliability and resiliency requirements mandates.
i) Oppose mandatory electrification of vehicle fleets for utility companies within the water, sewer, and electric sectors.
j) Oppose legislation that promotes 100% electrification and seeks to find a balanced energy platform.

8.7 Biosolids
a) Support efforts that recognize the science-based benefits of recycling and using biosolids and promote the use of biosolids in industries such as agriculture and fuel production.

11 Section 9. Tort Reform: Encourage efficient dispute resolution, limit excessive litigation costs, and protect public resources.
a) Support efforts to reform liability statutes to reduce City exposure to "deep pocket" claims.
b) Oppose expansion of liability for municipalities. Protect from erosion of the defenses.

Section 10. Unfunded Mandates: Support the empowerment of local control and flexibility; ensure accountability and fairness; support legislative and policy reform. a) Support efforts to increase cities' service delivery and funding flexibility. b) Oppose legislative actions that impose Federal or State mandates on cities without sufficient funding for implementation or reimbursement.

Section 11. Transportation: Cultivate a city with safe, appealing, and efficient motor and non-motor transportation infrastructure to attract and retain small and large businesses, new entertainment and recreation, and residents and support growth in the goods movement industry.

11.1 Regulation
a) Oppose legislation that would make the Endangered Species Act and Clean Water Act more restrictive on public projects.

11.2 Funding
a) Support efforts to provide State and Federal funding for local and regional transportation projects, especially those that increase the public safety capacity of State Route 91, Interstate 15, State Route 71, and the various interchanges and on/off ramps associated with those routes in the Corona area.
b) Support efforts to provide State and Federal funding for constructing alternate or additional transportation corridors.
c) Support efforts to provide State and Federal funding for grade separation or other upgrades of existing roadway grade crossings of the railroad corridor to establish a Quiet Zone throughout the City of Corona.
d) Support efforts to provide State and Federal funding to repair and upgrade aging bridges and transportation infrastructure.
e) Oppose efforts to eliminate and/or restrict the use of Riverside County State Improvement Transportation Funds, Federal Surface Transportation program, Measure A, or Gas Tax funding for local transportation projects. f) Oppose the State's efforts to divert Riverside County State Improvement Transportation Funds, the Federal Surface Transportation Program, Measure A, or Gas Tax funding sources to help pay for the State budget deficit.

12 g) Support efforts to increase federal programs and funding to mitigate the environmental and traffic congestion impacts of national goods movement on Inland highways and grade crossings.
h) Oppose efforts by the State to divert Proposition 42 funding away from transportation projects to fund the State budget deficit. i) Support legislation safeguarding Corona’s fair share allocation of Proposition 84 funds.
j) Support legislation that provides funding for the construction of Phase 2 of the parking structure at the North Main Metrolink Station or any expansion or improvements to the Station.
k) Support truth in tolling initiatives.
l) Support the development of bank and exchange programs that build municipalities existing environmental mitigation efforts.

11.3 Transit
a) Advocate for Medicaid policies that promote transit use as Medicaid providers.
b) Support additional funding for transit operations, including services for people with disabilities and senior citizens.
c) Support for inter-county transit services to assist commuters between Riverside and Orange Counties.
d) Support legislation and grant programs encouraging transit ridership, active transportation, and congestion relief programs for western Riverside County.
e) Support partnering efforts with local and regional agencies to improve the coordination of transit services.

11.4 Rail
a) Support legislation that provides funding for improving and expanding commuter rail (Metrolink) services on the Inland Empire line. b) Support legislation implementing the statewide high-speed rail (HSR) system, including the segment from Los Angeles to San Diego via the Inland Empire, and light rail, which would increase intercity mobility from Corona and relieve traffic congestion through the Corona area. c) Oppose congressional efforts to prohibit federal funding from being utilized for the California HSR project.
d) Support the implementation of an HSR alignment and station in Corona. e) Support legislation that promotes transit-oriented development and transitadjacent development around rail transit stations while retaining local oversight and decision-making.
f) Support funding and planning of rail facilities along I-15 to support growth in Southwest County and lessen traffic impacts on the I-15 and Corona streets.

13 11.5 Airport Infrastructure Safety
a) Support efforts that provide funding for repairs and renovation of the Corona Municipal Airport.
b) Support efforts to fund and complete the Santa Ana Regional Interceptor line to minimize impacts on Corona Municipal Airport due to flooding. c) Support funding for the Corona Municipal Airport security, lighting, and paving improvements.

11.6 Congestion
a) Support measures that lessen congestion and the wear and tear of Corona surface streets due to freeway “cut-through” traffic.
b) Support efforts to fund and promote bike trails and pedestrian paths as viable alternatives to driving.
c) Support efforts to provide State and Federal funding for future phases of the Advanced Traffic Management System (“ATMS”), which provides traffic signal synchronization and incident management.
d) Oppose any changes in Department of Transportation (DOT) Americans with Disabilities (ADA) regulations or interpretations without full public notice and comment.
e) Support legislation that provides tax incentives for people who use public transit instead of a personal vehicle.
f) Oppose any legislation that diverts additional fuel tax from the City. g) Oppose any action that removes or allows the use of toll revenue from the commuting corridor.

Section 12. Human Resources and Risk Management: Foster a secure working environment for employees while effectively managing risks to safeguard our community and municipal operations. Enhance Employee Engagement and Development, promote a positive and inclusive workplace, ensure compliance and best practices, proactively manage risks, and ensure safety and health. a) Support maximum flexibility to local governments when contracting for services.
b) Support maximum flexibility for local government in contract negotiations. c) Support legislation that promotes efforts to advance workplace diversity, equity, and inclusion.
d) Oppose measures that reduce local control over employee relations issues or mandate new or enhanced local government employee benefits. e) Oppose measures that impose compulsory and binding arbitration with respect to employees.
f) Support efforts to maintain fiscal solvency regarding unfunded pension and retiree healthcare liabilities and efforts to decrease local costs.

14 g) Support legislation and administrative efforts that provide clarity and flexibility in CalPERS workplace rules, including working after retirement and using contract service providers.
h) Support implementing and enforcing health and safety standards to protect employees and ensure a safe working environment.
i) Support health and wellness programs to support employees' physical and mental well-being, including access to health services and support for managing stress and work-related health issues.

Section 13. Municipal Communications: Preserve local governance and allow effective and accessible communication and council participation. Uphold the principles of open government established by the Brown Act, ensuring that our residents are informed, involved, and engaged in the decision-making processes affecting their lives.
a) Support legislation that strengthens cities’ ability to foster civil and respectful participation in public meetings and provides tools to help legislative bodies address disruptive behavior, including hate speech, while protecting the public’s First Amendment rights.
b) Support amendments to the Ralph M. Brown Act that allow alternative and cost-effective methods of meeting posting requirements, including electronic and digital media.
c) Support legislation permitting a minority of council members to participate in meetings virtually without physical location requirements, so long as a physical, in-person meeting quorum is present.

1 Revised 11/24/2025
City of Corona
2026 FINANCIAL PRIORITIES
The project summaries below outline the city’s top-priority funding requests in conjunction with the City’s Legislative Platform. Corona's funding categories include Community Services, Public Safety, Public Utilities, and Transportation.

COMMUNITY SERVICES PROJECTS Cost

1.1 City Park Revitalization Project $19m

1.2 Park Improvements $5.75m

1.3 Historic Civic Center Renovation $3.0m

1.4 Trails Construction *$5.5m
PUBLIC SAFETY Cost

2.1 Corona Wildfire Resilience Initiative $1.5m
PUBLIC UTILITIES Cost

3.1 PFAS Treatment Facilities (3 Sites) $14m

3.2 Water Reclamation Facility #1, Improvements and Expansion $35m

3.3 Sewer Main Replacement $4m
TRANSPORTATION Cost

4.1 Magnolia Avenue Widening at Temescal Wash $15m

4.2 State Route EB91 Improvements between I-15 and Pierce $31m *cost per trail

2 Revised 11/24/2025
Section 1. Community Services

1.1 City Park Revitalization Project
City Park, established in 1913, is Corona’s oldest park. This 20-acre park has historically consisted of a swimming pool, sports fields, playgrounds, and gathering areas for civic events. The park is in a disadvantaged area and has fallen into disrepair in recent decades. It has seen a high volume of homeless individuals and problems with crime. The City Park Revitalization Project was developed based on robust community engagement and identified key amenities that residents would like to see restored in the park.

The project will consist of a new aquatics center with recreation and competition-style swim amenities, a new community center to provide residents with recreational programming and fitness opportunities, a large community canvas to host large-scale events and sporting opportunities, a new splash pad, playgrounds, sports courts, and a skate park with an adjoining pump track. The total project construction cost is estimated at $100 million. However, this budget request is for specific park amenities: a splash pad, a children’s playground, and a pump track.
• Cost: Approximately $19 Million
• Lead Department: Community Services

1.2 Citywide Park Improvements
After a lengthy and robust community engagement process, the City of Corona adopted a new Parks & Recreation Master Plan (PRMP) in 2023 to guide the build-out of the City’s Park system for the next ten years and beyond. The plan identifies 3 priorities for 2024/25:

A. Shade structures. To address extreme heat during the spring and summer, the City seeks funding to install 8 shade structures over play and seating areas at Village, Stagecoach, Husted, Rimpau, Sierra Bella, River Road, Promenade, and Buena Vista parks to reduce sun exposure to children and caregivers. Throughout the public engagement process for the PRMP, shade was highlighted as a key need in Corona’s parks. The community also repeatedly identified splash pads as a key amenity that would help fulfill recreational needs and diversify and enhance recreation across the city’s park system; the city is seeking to install an additional splash pad at Promenade Park or Village Loop Park.

B. Dog Parks. Residents identified dog parks as one of the city's most desired outdoor recreation features. This budget request would allow the City to construct a formally designated, fenced-off leash dog park on the city's south side, which currently lacks this amenity.

3 Revised 11/24/2025
C. Splash Pads. Lastly, the City’s Parks & Recreation Master Plan (PRMP) identified splash pads as a key amenity that would help fulfill recreational needs and diversify and enhance recreation across the park system. Splash pads would provide the public with much-needed relief from the heat during the warmer months. This budget request would allow the City to construct a splash pad at a park on the east side of the City, which currently lacks this type of amenity. • Cost: Approximately $5.75 Million
• Lead Department: Community Services

1.3 Historic Civic Center Renovations
The Historic Civic Center, constructed in 1923, is currently used for recreation programming and is designated as Corona’s Center for the Arts. Due to its age, several significant infrastructure, safety, and technology improvements are needed to upgrade this historic structure to a modern standard. Proposed improvements include replacing the roof, rebuilding the outdoor breezeways, improving interior and exterior paint, improving lighting, upgrading theater technology, installing new doors and installing a marquee sign to advertise programs and events at the facility.

This project is also part of the City’s Downtown Revitalization Plan to enhance the beautification of the Sixth Street corridor.
• Cost: $3 million
• Lead Department: Community Services

1.4 Trails &Trailhead Construction
In 2023, the City completed a Trails Master Plan to guide the development of a trail system throughout Corona over the next 10 years and beyond. Funding is sought to implement the plan, including the following proposed trail segments:

A. The Rincon Street Multi-Use Trail: to help complete Phase II of the Santa Ana River Trail (SART) alignment. This trail connects directly to Stagecoach Park and can accommodate a SART trailhead. Due to the location of the Prado Dam and the Army Corps of Engineers' resistance to developing “river-adjacent” trail alignments, constructing this trail would be a strong first step in closing the SART gap in the City of Corona. Cost: $5.5 million

4 Revised 11/24/2025
B. The Canyon Crest Connector comprises two trail segments connecting residential neighborhoods to local parks, schools, and retail shopping. Cost: $5.5 million C. The Public Safety Way Trail will connect Lincoln Avenue to North Cota Street via a flood control channel. Cost: 5 million
• Cost Per Trail: $5 - $5.5 million
• Total Project Cost: $16 million
• Lead Department: Community Services
Section 2. Public Safety

2.1 Corona Wildfire Resilience Initiative
Corona is confronted with ongoing and escalating wildfire threats, now exacerbated by climate change and the expansion of the wildland-urban interface. To fortify the community against this persistent danger, the city requires critical funding to support a comprehensive suite of mitigation, prevention, and education initiatives. Funding would enable the implementation of vital projects that align with the strategic priorities identified in the City’s Wildland-Urban Interface Hazard and Risk Assessment and the City’s Community Wildland Protection Plan. Proposed projects will include creating defensible spaces around properties, enhancing early detection systems, acquiring state-of-the-art firefighting equipment and launching community outreach programs to educate residents about wildfire readiness and resilient landscaping practices. • Cost: $1.5 million
• Lead Departments: Fire
Section 3. Public Utility

3.1 PFAS Treatment Facilities
PFAS and other “forever” chemicals are an increasing concern for consumers. To address this issue, the City proposes constructing a granular activated carbon (“GAC”) Treatment facility to remove PFAS and 1,2,3-TCP contaminants from groundwater. This will allow the Utilities Department to produce additional potable water while complying with PFAS and TCP water quality standards for drinking water and wastewater discharge after use.

5 Revised 11/24/2025
This project will include the phase II conversion of the existing GACTP to a lead/lag configuration, increasing media life and making future media changeouts more convenient. At wells 7 and 8, new vessels will be constructed in a lead/lag configuration and designed to accommodate the well capacities.

• Cost: $14 million
• Lead Department: Utilities

3.2 Water Reclamation Facility #1, Improvements and Expansion To meet current and future water reclamation demands, the City proposes to complete upgrades at the WRF #1B treatment plant to increase capacity and improve treatment processes. Upgrades are expected to include new primary clarifiers, a conversion of the biological treatment process to fine bubble aeration, the addition of a third secondary clarifier, the installation of either a membrane bioreactor (MBR) process or downflow dual media filters, the expansion of the chlorine contact basin (CCB), and the construction of a fourth digester.
• Cost: $35 million
• Lead Department: Utilities

3.4 Sewer Main Replacement
This project replaces approximately 1,047 linear feet of 15-inch sewer pipe and 1,500 linear feet of 18-inch sewer pipes along Green River Road. The project also provides a cost-effective opportunity to install fiber conduit concurrently with the sewer main replacement. The existing sewer infrastructure in this corridor is aging and at increased risk of failure. Sewer line breaks, overflow events, and resulting road damage such as collapses or sinkholes can create significant environmental hazards, disrupt traffic and services, and require costly emergency repairs. Proactive replacement of these pipes is a necessary investment to maintain system reliability and protect public health and safety.

Coordinating fiber installation during this project follows a “dig-once” approach, leveraging the planned excavation to expand the City’s fiber network at a substantially reduced cost. This enhances future connectivity for City facilities and supports long-term economic and technological needs.
• Cost: $4 million
• Lead Department: Utilities

6 Revised 11/24/2025
Section 4. Transportation

4.1 Magnolia Avenue Widening at Temescal Wash
The City proposes to widen Magnolia Avenue between El Camino Avenue and All American Way from two to three lanes in each direction, including widening the bridge over Temescal Wash, to complete a gap in the City's transportation network. The existing roadway and bridge are under capacity and lack continuous pedestrian and bicycle infrastructure. This project will modernize Magnolia Avenue for all modes of transportation and provide improvements at railroad crossings, signal improvements, and other associated work. Additionally, this project will expand capacity and increase operational efficiencies and public safety within the City of Corona. • Cost: $5 million
• Lead Agency: City of Corona
-End of Financial PrioritiesPage 376 of 497
DATE: 01/07/2026
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2026-01

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

PRESENTATION ABOUT THE CITY’S UPDATED CALPERS UNFUNDED LIABILITIES AND APPROVAL OF THE FISCAL YEAR 2026 PENSION STABILIZATION TRUST

CONTRIBUTION
EXECUTIVE SUMMARY:

This presentation provides an update of the City’s CalPERS unfunded pension liabilities, based on the June 30, 2024 actuarial reports, and asks the City Council, acting as the Pension Stabilization Trust Board, to receive and file the presentation and the City Council to approve the FY 2026 Pension Stabilization Trust contribution.

RECOMMENDED ACTION:

That the City Council:
a. Acting as the Pension Stabilization Trust Board, receive the presentation about the updated pension liabilities and Pension Stabilization Trust. b. Approve a Fiscal Year 2026 Pension Stabilization Trust contribution of $2,300,000 ($2.0 million from the Measure X Fund 120 and $0.3 million from the General Fund 110).

c. Authorize the City Manager, or his designee, to make the necessary budget and accounting adjustments for the Fiscal Year 2026 contribution.

BACKGROUND & HISTORY:

The City of Corona Pension Stabilization Trust (Trust) was established pursuant to Section 115 of the Internal Revenue Code, as an entity to which funds for the City can be deposited, and through which a Board of Trustees can invest funds for the exclusive purpose of funding contributions to the pension plan providing benefits for City employees and retirees.

In May 2021, the City Council approved the Pension Management Policy (Policy). In January 2022, the City Council approved the establishment of the Trust and the Trust Agreement (Agreement) and approved an initial investment of $30,000,000 to the Trust.

The funds may be used to address future CalPERS unfunded accrued liabilities (UAL) as well as Pension Obligation Bond (POB) payments.

The Agreement outlines the rules and responsibilities of the Pension Stabilization Board of Trustees (Trustees) and the administration of the Trust. The Trustees approved in 2022 were: the City Treasurer, City Manager, Assistant City Manager, Finance Director, and Accounting Manager. The Agreement was amended in October 2025 to change the Trustees to be the City Council members. Staff will provide an annual presentation about the updated liabilities and a recommended contribution level for the fiscal year (FY).

The combined UAL for the City’s three pension plans is $97.8 million. CalPERS investment returns for FY 2024 were +9.3% which is a difference of +2.5% compared to their original estimate of +6.8%. This is a snapshot at a given point in time. The returns for FY 2025 (report anticipated in 2026) will reflect returns of +11.6%. With the returns beating the original estimate of +6.8% by +4.8%, we anticipate a more positive impact on the UAL in the next report.

ANALYSIS:

Through the annual budget process, a total of $2.0 million was set aside, in the Measure X Fund, as a contribution for FY 2026. The target for paying off the POBs is after year 10 (2031), when the bonds become callable. To achieve that target, $2.3 million will need to be contributed to the Trust each year, for FY 2026-FY 2031, assuming an average return on investment of 5%.

The City’s total cash contributions to the Trust since inception are $40.85 million. The Trust’s market value as of November 30, 2025 was $59.2 million, with a 12.68% return on investments. The investments have performed well since the City’s significant contribution when the Trust began. It’s a good example of the Time Value of Money principle: the earlier the funds can be contributed, the better. Staff will continue to evaluate available funding, while balancing current capital and operating needs, and make recommendations to the City Council. The recommended contribution amount for FY 2026 is $2.3 million to keep the City on track to meet the funding goal of paying off the bonds after year 10.

FINANCIAL IMPACT:

Approval of the recommended actions will transfer a total of $2,300,000 into the Pension Stabilization Trust Fund 485 for FY 2026. The funding breakdown is: $2,000,000 from Measure X Fund 120 and $300,000 from the General Fund 110. The funds will be added to the existing Trust balance. No expenditures from the Trust will be incurred at this time.

ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action is to provide an update on the City’s pension liabilities and approve the FY 2026 contribution, and there is no possibility that approval of the recommended actions will have a significant effect on the environment. Therefore, no environmental analysis is required.

PREPARED BY: KIM SITTON, FINANCE DIRECTOR
REVIEWED BY: BRETT CHANNING, ASSISTANT CITY MANAGER
ATTACHMENTS:

1. Exhibit 1 – Pension Stabilization Trust Presentation 01.07.26

Pension Stabilization Trust
Kim Sitton
Finance Director
January 7, 2026

Ask…
That the City Council/Pension Stabilization
Trustee Board:
• Reviews the provided information
• Approves $2.3 million contribution to the
City's Pension Stabilization Trust
2 City of Corona

Agenda
• Pension Stabilization Trust Background and
Investment Reports
• Unfunded Accrued Liabilities (UAL)
• FY 2026 Trust Contribution
3 City of Corona

4 Pension Stabilization
Trust Background and
Investment Reports
City of Corona

Pension Stabilization Trust Background
5 City of Corona
• Pension Obligation Bonds issued in 2021 • Pension Management Policy approved in 2021 • Pension Stabilization Trust approved in 2022 • Goal of paying off the bonds once callable (10 years) • Original Trust Board Members: City Treasurer, City Manager, Assistant City Manager, Finance Director, and Accounting Manager • Review updated PERS and Trust information; provide funding recommendation to Council annually • Updated Trust Board Members (approved in 2025): City Council members • Staff presents PERS and Trust information directly to the Council/Board and recommendation annually • Reaches a broader audience and makes the process more efficient

6 $59,184,080
Market value, as of November 30, 2025
City’s website, under Finance Department, Investments
https://www.coronaca.gov/government/departments-divisions/finance/city-treasurer/investment-policy • Pension Stabilization Trust Investment Report
(at the end of the Monthly Investment Report)
• Monthly Investment Report is also posted monthly with Council Agenda (generally 2nd meeting of the month)
• Pension Stabilization Trust Investment Policy
City of Corona
Trust Value and Investment Reports

7 Unfunded Accrued
Liabilities (UAL)
City of Corona

CalPERS – UAL and Funded Ratios
8 City of Corona
*Fire PEPRA no longer reported separately by CalPERS.

Funded 90.9%
Unfunded 9.1%
Miscellaneous
Funded 90.7%
Unfunded 9.3%
Police
Funded 91.7%
Unfunded 8.3%
Fire
Unfunded
Liability
Funded
Ratio
Fire * 19,948,149 91.7%
Police 34,960,417 90.7%
Miscellaneous 42,886,952 90.9%
Total $97,795,518
June 30, 2023 $108,320,838
June 30, 2024 $97,795,518
Year over Year ($10,525,320) -9.7%
Plan
June 30, 2024

CalPERS – Factors That Impact Unfunded Accrued
Liability (UAL) and Employer Contributions
9 City of Corona
• Investment Returns - Discount Rate (Rate of Return) Estimated 6.8% • FY 2024 results = 9.3%, +2.5% more than estimated • FY 2025 results = 11.6%, +4.8% more than estimated (reflected in next year’s report) • Member Demographics • Salary Increases • Actuarial Assumption Changes

CalPERS – Net Investment Returns Over Time
City of Corona 10
30 Years 7.6%
20 Years 6.7%
10 Years 7.1%
5 Years 8.0%
1 Year (2025) 11.6%
• CalPERS Funding Risk Mitigation Policy • Returns greater than 2% or more, prompts discussion on a possible rate reduction • Lower discount rate can soften the blow when investment returns stumble • Lower discount rate means that more of the contributions must be covered by employer contributions • July 2025 - CalPERS affirmed 6.8% discount rate as part of its Asset Liability Management (ALM) process.

Funding Target for Pension Obligation Bond Payoff
11 City of Corona
• Bond Payoff Target (per Pension
Management Policy) is after 10 years
(after May 1, 2031) • Funding contribution of $2.3 Million per year (years 5-10) to Trust,
assuming 5% average returns • Since inception, returns = 12.68% • Total City contributions to date =
$40.85 Million
Contribution
Year FY (in Millions)
1 2022 $30.00
2 2023 $2.10
3 2024 $6.05
4 2025 $2.70
5 2026 Target $2.30 (Est.)
6 2027 Target $2.30 (Est.)
7 2028 Target $2.30 (Est.)
8 2029 Target $2.30 (Est.)
9 2030 Target $2.30 (Est.)
10 2031 Target $2.30 (Est.)

12 FY 2026
Trust Contribution
Discussion
City of Corona

Staff Recommendation
13 City of Corona
• Contribute $2.3 Million to the Trust for FY 2026

Ask…
That the City Council/Pension Stabilization
Trustee Board:
• Reviews the provided information
• Approves $2.3 million contribution to the
City's Pension Stabilization Trust
14 City of Corona

DATE: 01/07/2026
TO: Honorable Mayor and City Council Members
FROM: Economic Development Department
2025-466

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

FIRST AMENDMENT TO THE PROFESSONAL SERVICES AGREEMENT WITH SVA

ARCHITECTS AND BUDGET APPROPRIATION FOR THE NORTH MALL

ARCHITECTURAL SERVICES
EXECUTIVE SUMMARY:

This staff report asks the City Council pursue an exemption to the Surplus Land Act and to approve a First Amendment to the Professional Services Agreement with SVA Architects to provide architectural design and technical analysis services for the North Mall redevelopment project and a budget appropriation to fund the project. This item was previously heard at the November 19, 2025, City Council meeting and continued to allow staff to provide responses to City Council questions.

RECOMMENDED ACTION:

That the City Council:
a. Pursue the Surplus Land Act exemption for a mixed use project of at least 300 housing units with 25% of units affordable.
b. Approve the First Amendment to the Professional Services Agreement with SVA Architects in the amount of $1,482,150 for Architectural Services for the North Mall Development.

c. Authorize the City Manager, or his designee, to execute the First Amendment to the Professional Services Agreement with SVA Architects in the amount of $1,482,150 including any non-substantive extensions, change order, and amendments to 10% of the agreement amount, as authorized in Corona Municipal Code Section 3.08.070(I).
d. Authorize the City Manager, or his designee, to issue a change order to the on-call purchase order with SVA Architects (B260001) for a total purchase order amount of $1,482,150.
e. Authorize an appropriation in the amount of $982,150 from Measure X Fund 120 to the North Corona Mall Acquisition/Improvements, Operating and Maintenance Project No.78390.

BACKGROUND & HISTORY:

The North Mall site, located at the Northeast corner of 6th and Main Streets has a site area of approximately 9.6 acres and at least 7.7 acres of developable area. With strong direction from the Council and significant community input over multiple years, it was identified as a critical catalytic project of the City’s long-term Downtown Revitalization vision, as outlined in the 2020–2040 General Plan, the 2022 Downtown Revitalization Plan, and the adopted Downtown Design Guidelines. Recognized as a strategic infill opportunity, the site is envisioned to become a pedestrian-oriented, mixed-use destination that serves as a cultural, residential, and economic hub for the community.

The ultimate goal for this project is to spur an overall redevelopment effort within the core of the historic Corona to rebuild a vibrant downtown. This project will serve as a model for continued private redevelopment in the area for decades to come. Thus, there is a need to design this project in a thoughtful manner to provide an example for the projects that will follow and reinforce the revitalization of downtown.

Since 2004 the City has been working to acquire properties within the North Mall, to reassemble the fragmented ownership and facilitate the redevelopment and revitalization of this key downtown property. By 2024, the City had assembled a site of sufficient size to deliver a catalytic project to assist in the revitalization of downtown.

On February 19, 2025 the City Council discussed the future of the North Mall site. The discussion included the vision for the project, retaining City control of redevelopment of the site, the entitlement process, and the next steps for redeveloping the site. Council gave direction to staff to move forward with preparing a mixed-use project and to begin the entitlement process for the site.

In May 2025, a conceptual master planning study for the site was prepared with the assistance of an architectural consultant, Arcadis, providing four development options with varying levels of intensity. The intent of these scenarios was to frame potential

buildout configurations and inform policy direction from the City Council on future entitlement and implementation efforts.

On July 2, 2025, the Council reviewed these four development scenarios for the redevelopment of the North Mall and provided direction to staff on the scope and scale of the new development, with a target of approximately 105,000-140,000 square feet of retail and commercial space, with a hotel, and between 200-450 residential units, with a preference for ‘for sale’ residential units, including a portion designated as workforce housing.

This item was first presented at the City Council meeting on November 19, 2025. During the discussion of this proposal, the City Council requested additional information related to the qualifications of the architecture team and the contract scope of work. The City Council also requested additional information related to Surplus Land Act (SLA) and provided additional direction to staff on the design of the planned redevelopment project, including a direction to pursue only for-sale residential units for the housing component of the mixed-use project and to reduce the number of residential units from prior direction provided at the July 2, 2025, City Council meeting. At the December 3, 2025 City Council meeting, staff provided responses to the City Council’s questions and direction, as well as provided additional information on the SLA as it relates to the North Mall redevelopment project.

The SLA is a statewide law that governs the disposition of city or agency owned land. If a city intends to sell a property or enter into a lease with a term of 15 years or more, they must follow the procedures outlined in the SLA. First, the Council must declare the property as ‘surplus,’ notify the California Department of Housing and Community Development (HCD), and send a notice of availability to Affordable Housing developers and other qualified entities (school districts, transportation agencies, etc.). The city must engage in good faith negotiations with those developers for 90 days. Preference must be given to proposals with the highest number of housing units at the deepest level of affordability. The City cannot charge more than the market value of the property nor deny a market rate proposal to prevent an undesirable development or large number of housing units. After the 90-day negotiation period has concluded, the City provides HCD a record of the negotiations with each party and the final agreement with the successful proposer.

If no agreement was reached, the city provides the same record and a justification for why no agreement with eh qualified parties was reached. HCD reviews these documents to make a determination if the procedural requirements of the SLA were met and the outcome is compliant with the law. If HCD determines that a violation of the SLA has occurred, the penalties are potentially severe.

The SLA includes several specific exemptions to the standard SLA process (see attached SLA guidelines from HCD). These are based on size of the parcel, pre-existing agreements, the intended use of the property, how the parcel ownership is/was transferred, and other specific uses. If a city intends to pursue an exemption, the Council declares the property ‘exempt surplus’ and the city submits supporting documentation to HCD for a determination. If HCD determines that the property meets the requirements of

the exemption, the City can develop or lease the property under those specific conditions.

Thus, an exemption provides more control for the city over how the property is developed and bypasses the requirement to engage in good faith negotiations with affordable housing developers.

ANALYSIS:

On August 4, a Request for Proposals was issued to the City’s on-call consultant list, which consists of six prequalified architects that were thoroughly vetted through a competitive consultant selection process. Four proposals were received and evaluated for consultant expertise with preparation of the necessary plans and studies, as well as costs. Based on extensive experience in designing and developing the type of mixed-use project the City is seeking, SVA Architects was selected as the most qualified firm.

As discussed at the July 2nd City Council meeting, the design philosophy for this project is to draw from the significant buildings of Corona’s past, those historic buildings that were demolished in the gradual redevelopment of the downtown area in the middle of the 20th century. This “Corona Revival” style will rely on honest building materials, such as brick, tile, wood, and historic architectural proportions to recreate the original look and feel of what was originally the core of civic, employment, shopping, and dining life for residents.

This project will balance architectural consistency with the downtown, while providing updated flexible commercial space and new housing opportunities in the historic heart of the city.

SVA Architects has extensive experience in the development of hotels, residential, and mixed-use projects in Southern California. The assembled team of SVA and subconsultant personnel have demonstrated a record of high-quality design and technical expertise across numerous projects built across the state. The firm demonstrated its understanding of the City’s expectations for the project and provided an ambitious schedule to assist the City in completing this portion of the overall redevelopment efforts by the summer of 2026.

SVA Architects on-call contract award includes one discipline, Architectural Services. This First Amendment will assemble a qualified design and analytics team to work with the City to further develop the initial concepts for the North Mall mixed-use project that were presented to the City Council at its July 2nd meeting. SVA Architects and its subconsultants will be tasked with developing full plans and technical analyses for Planning Commission review to entitle the project for eventual assignment to a private developer to build the desired project.

The associated contract increase affects the on-call agreement, with work spanning two fiscal years (FY 2026 and FY 2027). The total compensation amount encompasses all disciplines with only the architectural services portion receiving an increase for the design of the North Mall project. The compensation amount is structured to reflect the increase needed for each fiscal year for which the consultant will provide services for the project.

As a result, compensation for Fiscal Year FY 2026 will increase by $982,150 to a not-toPage 398 of 497 exceed amount of $1,482,150 and will decrease by the same amount for FY 2027 and revert to the original total contract award of $500,000.

Should the City Council agree to approve the First Amendment, work will commence in February 2026, with design work anticipated to be completed by the end of the year.

Between September and December, city staff consulted multiple times with HCD on how to deliver Council-directed North Mall project within the regulatory requirements of the SLA. Given the size, type (mixed-use), and intent of the project, HCD indicated that one of the mixed-use exemptions, for developments with 300 or more units, would allow the City to proceed with entitling the mixed-use project with the design and function that the Council had directed. HCD also noted that if the City proceeded with entitlement and then followed the SLA process, the City would still need to give preference to a proposal with the highest number of units with the deepest level of affordability. While the entitled project would be one possible outcome of the process, the City could not require the entitled project to be built. Another project, including a 100% residential project with a higher unit count and a market-value purchase price could not be rejected by the City.

Based on the stated preferences of Council – to retain design control, maximize retail and commercial space, deliver ‘for-sale’ units, and build an active community space – staff recommend pursuing the 300 unit mixed-use exemption to the SLA.

FINANCIAL IMPACT:

Approval of the recommended actions will result in an appropriation in the amount of $982,150 from the Measure X Fund 120 to North Corona Mall Acquisition/Improvements, Operating and Maintenance Project No.78390.

ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from the CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The approval of this agreement will not result in a significant effect on the environment.

Therefore, no environmental analysis is required.

PREPARED BY: JOEL BELDING, ECONOMIC DEVELOPMENT DIRECTOR REVIEWED BY: JUSTIN TUCKER, ASSISTANT CITY MANAGER
ATTACHMENTS:

1. Exhibit 1 – Location Map

2. Exhibit 2 – SVA Architects, Inc. – First Amendment PSA Agreement

3. Exhibit 3 – Final Updated Surplus Land Act Guidelines

Project Site

CA\DD\02000.50105\10005846.1
27157.11000\2955190.2

FIRST AMENDMENT TO

PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF CORONA
AND WITH SVA ARCHITECTS, INC.
(ARCHITECTURAL SERVICES - ON-CALL ENGINEERING AND PROFESSIONAL CONSULTING SERVICES, RFP 24-069AS)

1. PARTIES AND DATE.

This First Amendment to the Professional Services Agreement (“First Amendment”) is made and entered into this ______day of _______________, ________ by and between the City of Corona (“City”) and SVA Architects, Inc., a California corporation (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this First Amendment.

2. RECITALS.

2.1 Agreement. City and Consultant entered into that certain Professional Services Agreement dated December 4, 2024 (“Agreement”), whereby Consultant agreed to provide oncall professional architectural consulting services,

2.2 Amendment. City and Consultant desire to amend the Agreement for the first time to (1) amend the Total Compensation to $1,482,150 through fiscal year June 30, 2026 and will decrease to $500,000 per fiscal year ending June 30, 2027; (2) replace Exhibit “A” (Scope of Services) with Exhibit “A-1” (Scope of Services); and (3) replace Exhibit “C” (Compensation) with Exhibit “C-1” (Compensation).

3. TERMS.

3.1 Rates & Total Compensation. Section 3.3.1 (Rates & Total Compensation) and Exhibit “C” (Compensation) of the Agreement, are hereby deleted in their entirety and replaced with the following:
“3.3.1 Rates & Total Compensation. Contractor shall receive compensation, including authorized reimbursement, for all Services rendered under this agreement at the rates set forth in Exhibit “C-1” attached hereto and incorporated herein by reference. The total compensation, including authorized reimbursements, shall not exceed One Million Four Hundred Eighty-Two Thousand One Hundred Fifty Dollars ($1,482,150) per fiscal year ending June 30, 2026 (“Total Compensation”) and Five Hundred Thousand Dollars per fiscal year ending June 30, 2027 (“Total Compensation”) without written approval of the City’s Representative. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.”
Docusign Envelope ID: 7B1F300A-EC9B-4941-A4B5-7A17852E5D21

CA\DD\02000.50105\10005846.1
2 (BB&K: 9-10)
27157.11000\2955190.2

3.2 Exhibit “A-1”. Exhibit “A” (Scope of Services) of the Agreement is hereby deleted in its entirety and replaced with Exhibit “A-1” (Scope of Services) attached hereto and incorporated herein by reference.

3.3 Continuing Effect of Agreement. Except as amended by this First Amendment, all provisions of the Agreement shall remain unchanged and in full force and effect.

From and after the date of this First Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this First Amendment.

3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this First Amendment.

3.5 Counterparts. This First Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]
Docusign Envelope ID: 7B1F300A-EC9B-4941-A4B5-7A17852E5D21

CA\DD\02000.50105\10005846.1
3 (BB&K: 9-10)
27157.11000\2955190.2
CITY’S SIGNATURE PAGE
FOR

FIRST AMENDMENT TO

PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF CORONA
AND WITH SVA ARCHITECTS, INC.
(ARCHITECTURAL SERVICES - ON-CALL ENGINEERING AND PROFESSIONAL CONSULTING SERVICES, RFP 24-069AS)
IN WITNESS WHEREOF, the Parties have entered into this First Amendment to Professional Services Agreement as of the date noted on the first page of the Amendment.

CITY OF CORONA
By: _________________________
Savat Khamphou
Public Works Director/City Engineer
Reviewed By: _________________________
Joel Bedding
Economic Development Director
Reviewed By: _________________________
Javier Luna
CIP Manager / Assistant City Manager
Reviewed By: _________________________
Tracy Martin
Senior Project Manager
Reviewed By: _________________________
Nicole McDaniel
Assistant to the City Manager/Acting Purchasing Manager Attest: _________________________
Sylvia Edwards, City Clerk
City of Corona
Docusign Envelope ID: 7B1F300A-EC9B-4941-A4B5-7A17852E5D21

CA\DD\02000.50105\10005846.1
4 (BB&K: 9-10)
27157.11000\2955190.2
CONSULTANT’S SIGNATURE PAGE
FOR

FIRST AMENDMENT TO

PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF CORONA
AND WITH SVA ARCHITECTS, INC.
(ARCHITECTURAL SERVICES - ON-CALL ENGINEERING AND PROFESSIONAL CONSULTING SERVICES, RFP 24-069AS)
IN WITNESS WHEREOF, the Parties have entered into this First Amendment to Professional Services Agreement as of the date noted on the first page of the Amendment.

SVA ARCHITECTS, INC.
a California corporation
By: _________________________
Robert M. Simons
Partner and President
By: _________________________
William R. Koster
Corporate Secretary
Docusign Envelope ID: 7B1F300A-EC9B-4941-A4B5-7A17852E5D21

CA\DD\02000.50105\10005846.1
5 (BB&K: 9-10)
27157.11000\2955190.2
EXHIBIT “A-1”
(SCOPE OF SERVICES)
Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the OnCall Engineering and Professional Consulting Services necessary for the Project. The Services are more particularly described herein.

Design related services shall include preparation of project specific plans and specifications, including calculations signed and stamped by a professional engineer registered in the State of California with specific experience in the design and construction of subject facilities. Under the supervision of said engineer, the consultant shall perform or cause to be performed by others, all necessary services to prepare a complete set of biddable construction documents (following all applicable City of Corona standards, requirements and specifications). The consultant’s services shall include the following project management assistance in support of the services below:
• Provide project management and coordination with City staff. Prepare and provide project status updates including updates to scope status, schedule and cost. • Perform Quality Assurance/Quality Control (QA/QC).
• Prepare and perform presentations to City staff, the public and other stakeholders. • Prepare and attend project coordination meetings with City staff and other permitting agencies.
• Prepare cost estimates and project schedules.
• Prepare meeting agenda and minutes.

Support services typically needed by the City for each design-related service include, but are not limited to, the following:

ARCHITECTURAL SERVICES
Consultant must be a registered architect in the State of California and shall provide experienced personnel, equipment and facilities to perform the following tasks.

1. Provide architectural planning and design services for new structures or modifications of existing structures.

2. Prepare sketches, renderings, and materials boards providing alternative architectural concepts, designs, and options that can be applied to project requirements.

3. Prepare 2-dimensional and 3-dimensional models, sketches, renderings, and elevation drawings of proposed architectural designs and treatments.

4. Prepare construction drawings providing code requirements, floor plans, ceiling plans, roof plans, elevations, walls, materials schedules, door and window schedules, and details.

5. Provide technical specifications for materials and methods.

6. Prepare construction cost estimates.

7. Provide architectural support during bidding and construction of projects.

8. Provide record drawings.

Docusign Envelope ID: 7B1F300A-EC9B-4941-A4B5-7A17852E5D21

CA\DD\02000.50105\10005846.1
6 (BB&K: 9-10)
27157.11000\2955190.2
Additional Scope of Services for North Mall Redevelopment Entitlement:

Docusign Envelope ID: 7B1F300A-EC9B-4941-A4B5-7A17852E5D21

CA
\DD\02000.50105\10005846.1
7 (BB&K: 9-10)
27157.11000\2955190.2
Docusign Envelope ID: 7B1F300A-EC9B-4941-A4B5-7A17852E5D21

CA
\DD\02000.50105\10005846.1
8 (BB&K: 9-10)
27157.11000\2955190.2
Docusign Envelope ID: 7B1F300A-EC9B-4941-A4B5-7A17852E5D21

CA\DD\02000.50105\10005846.1
9 (BB&K: 9-10)
27157.11000\2955190.2
EXHIBIT “B”

SCHEDULE OF SERVICES
Consultant shall complete the Services within the Term of this Agreement, and shall meet any other reasonable schedules and deadlines established by City’s Representative.

The contract term shall be effective on or about December 4, 2025 through June 30, 2027 with one (1) additional three-year option renewal period, on an as-needed basis, with no guaranteed usage for on-call professional engineering and/or on-call professional consulting services.

Pricing shall remain effective and in force for the entire initial contract term. City reserves the right to exercise option year renewals in its sole discretion. Subsequent contract term extensions, if exercised by the City, are as follows:
• Option 1, if exercised, shall be effective July 1, 2027 through June 30, 2030.

Option year pricing shall be negotiated by the Parties prior to commencement of each additional three-year period. Negotiated price adjustments will be made in accordance with and shall not exceed the percentage of change in the United States Bureau of Labor Statistics Consumer Price Index “All Urban Consumers for Riverside, California, Area (CPI-U), not seasonally adjusted, for the most recent twelve (12) months for which statistics are available. This method of price adjustment shall apply to each extension period exercised. Option years shall become effective only upon issuance by the City of a duly authorized Purchase Order.

Increases in labor costs subject to mandated prevailing wage or minimum wage increases during any contract extension term must be supported, at time of contract negotiation, with documentation from the appropriate entity enforcing the increase in labor costs. Consultants must provide labor cost increases to the City a minimum of thirty (30) days in advance of contract or amendment term end date.

Additional Schedule for North Mall Redevelopment Entitlement:

Docusign Envelope ID: 7B1F300A-EC9B-4941-A4B5-7A17852E5D21

CA
\DD\02000.50105\10005846.1
10 (BB&K: 9-10)
27157.11000\2955190.2
Docusign Envelope ID: 7B1F300A-EC9B-4941-A4B5-7A17852E5D21

CA\DD\02000.50105\10005846.1
11 (BB&K: 9-10)
27157.11000\2955190.2
EXHIBIT “C-1”
(COMPENSATION)
Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth herein.

CONSULTANT HOURLY RATES:

TITLE RATE
Partner/Principal $225
Sr. Project Architect/Manager $195
Senior Designer / Planner $195
Project Architect / Manager $175
Designer / Planner $175
Job Captain $155
Intermediate Designer $125
Junior Technical Designer $100
Clerical Staff $75
Additional Compensation for North Mall Redevelopment Entitlement:

Docusign Envelope ID: 7B1F300A-EC9B-4941-A4B5-7A17852E5D21

CA
\DD\02000.50105\10005846.1
12 (BB&K: 9-10)
27157.11000\2955190.2
Docusign Envelope ID: 7B1F300A-EC9B-4941-A4B5-7A17852E5D21

CA
\DD\02000.50105\10005846.1
13 (BB&K: 9-10)
27157.11000\2955190.2
Docusign Envelope ID: 7B1F300A-EC9B-4941-A4B5-7A17852E5D21

CA
\DD\02000.50105\10005846.1
14 (BB&K: 9-10)
27157.11000\2955190.2
Docusign Envelope ID: 7B1F300A-EC9B-4941-A4B5-7A17852E5D21

Updated Surplus Land Act Guidelines
Final
Gavin Newsom, Governor
State of California
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
California Department of Housing and Community Development 651 Bannon Street, Suite 400
Sacramento, CA 95811
916-263-7400
Originally issued April 2021
August 1, 2024

2 Contents
OVERVIEW .............................................................................................................................. 3 ARTICLE I. PROGRAM OVERVIEW........................................................................................ 4 Section 100. Applicability ..................................................................................................... 4 Section 101. Guidelines........................................................................................................ 4 Section 102. Definitions........................................................................................................ 6 Section 103. Exemptions....................................................................................................11 Section 104. Agency’s Use ...............................................................................................21 ARTICLE II. SURPLUS LAND ................................................................................................23 Section 200. Surplus Land Determination Process ............................................................23 Section 201. Notice of Availability.......................................................................................23 Section 202. Disposal of Surplus Land for Affordable Housing ..........................................24 ARTICLE III. REQUIREMENTS TO BE PLACED ON SURPLUS LAND FOR AFFORDABLE HOUSING...............................................................................................................................32 Section 300. Requirements When an Entity Proposes to Use the Surplus Land for Developing Affordable Housing..........................................................................................32 ARTICLE IV. REPORTING REQUIREMENTS .......................................................................34 Section 400. Local Agency Reporting Requirements .........................................................34 ARTICLE V. PERFORMANCE MONITORING AND PENALTIES ..........................................36 Section 500. HCD Monitoring, Recording, and Reporting...................................................36 Section 501. Penalties........................................................................................................37 Section 502. Private Enforcement ......................................................................................40 Appendix A – Notice of Availability Forms ..........................................................................41 Appendix B – Description of Disposition Form ...................................................................42 Appendix C – Sample Covenant/Restriction.......................................................................43 Appendix D – HCD Survey to Indicate Interest in Surplus Land.........................................44

3 OVERVIEW
Article I summarizes the purpose and scope of the Surplus Land Act (SLA) by identifying the objectives of these Guidelines and defining key terms within the law. This section also defines lands exempt from the provisions of the SLA.

Article II describes the mechanisms for identifying and disposing of surplus lands. This Article also describes requirements for developments built upon disposed surplus land, surplus land in which no sale took place under the auspices of the SLA, and requirements for affordable housing on surplus land that is developed at a later date.

Article III identifies the affordable housing requirements for developments built upon disposed surplus land.

Article IV summarizes the notification, recording, and reporting requirements to the California Department of Housing and Community Development (HCD) under the SLA.

Article V explains HCD’s obligations to monitor local agency compliance with the SLA and identifies the escalating penalties associated with noncompliance.

4 ARTICLE I. PROGRAM OVERVIEW
Assembly Bill (AB) 1486 (Statutes of 2019, Chapter 664) and AB 1255 (Statutes of 2019, Chapter 661) made changes to the SLA found in Government Code, Title 5, Division 2, Part 1, Chapter 5, Article 8. Surplus Land. Generally, the purpose of the amendments is to promote affordable housing development on surplus land throughout the state to respond to the existing affordable housing crisis. The amendments to the SLA adopted with AB 1486 and AB 1255 clarify and strengthen reporting and enforcement provisions of the SLA to promote increased compliance with the SLA. Moreover, some of the changes in these updated Guidelines are the result of subsequently enacted legislation.

AB 1486 took effect on January 1, 2020. As of that date, HCD began reviewing notices that local agencies are required to send by email or certified mail pursuant to Government Code section 54222(a)(1) and examining complaints and other information received or requested to confirm compliance with the SLA pursuant to Government Code section 65585.1. As of that date, HCD also began collecting (in Table G of the Housing Element Annual Progress Report (APR)) information on jurisdiction-owned sites identified in the housing element sites inventory, and subsequently disposed of by the jurisdiction.

As of January 1, 2021, HCD was required to begin implementing Government Code section 54230.5, including, but not limited to, adopting these Guidelines; reviewing each local agency’s description of the notices of availability sent, description of negotiations conducted with any responding entities, and copies of any restrictions to be recorded against the property pursuant to Government Code sections 54233 or 54233.5; submitting written findings to local agencies; and, if necessary, assessing penalties, in conjunction with the Attorney General, to local agencies that dispose of surplus property in violation of the SLA.

Note: Authority cited: Government Code section 54230, subdivision (c), section 54230.5, subdivision (b)(2)(D). Reference cited: Government Code section 54222, section 54230, section 54230.5, subdivision (b)(2)(A), section 54233, section 54233, section 54233.5, section 65585.1.

Section 100. Applicability
These updated SLA Guidelines (hereinafter “Guidelines”) apply on or after the date adopted as shown on the cover page. The application of these updated Guidelines to the disposition of surplus land shall be determined by the date of issuance of the Notice of Availability (NOA). The applicability of these updated Guidelines to exempt determinations shall be determined by the date that the property was declared exempt surplus land. Regardless of when Guidelines were adopted, the Surplus Land Act as amended is applicable to local agencies upon the date amendments went into effect.

Section 101. Guidelines
(a) These SLA Guidelines implement, interpret, and make specific the text of the SLA. The forms linked in the Appendices of these Guidelines may be updated from time to time upon approval by the Director of HCD or the Director’s designee. (b) These Guidelines establish and revise terms, conditions, forms, and procedures for the proper identification and disposition of various types of surplus land, as well as provide

5 detail on expectations and sanctions related to SLA compliance. Major actors and their responsibilities include, but are not limited to:
(1) Local agencies:
(A) Provide NOAs of surplus land for lease or purchase tolocal public entities and housing sponsors as required by Government Code section 54222 on the form provided in Appendix A;
(B) Where applicable, receive notices of interest from entities desiring to purchase or lease surplus land and negotiate with entities in good faith; (C) Provide HCD with descriptions of the NOAs sent, proof of sending the NOA to the CalHFA-certified housing sponsor list and local public entities within whose jurisdiction the surplus land is located, and description of negotiations conducted with any responding entities regarding the disposal of the surplus land on the form provided in AppendixB;
(D) Forward to HCD a copy of any restrictions recorded or to be recorded against the surplus land pursuant to Government Code section 54233 or 54233.5, whichever is applicable, in the form prescribed by HCD in Appendix B; and (E) If the local agency is a city or county, beginning April 1, 2021, the local agency must report annually information about all locally owned surplus land sites pursuant to Government Code section 54230. Reporting shall be in table H of the Annual Progress Report (APR) in accordance with APR instructions. (2) Housing sponsors, as defined by section 50074 of the Health and Safety Code, may notify HCD of their interest in surplus land pursuant to Government Code section 54222(a)(1) using the survey in Appendix D.
(3) HCD will maintain updates of interested housing sponsors and inventories of publicly owned surplus land and a list of NOAs.

Note: Authority cited: Government Code section 54230, subdivision (c), section 54230.5, subdivision (b)(2)(D). Reference cited: Government Code section 54221, section 54222, section 54230, section 54230.5, subdivision (b)(2)(A), section 54230.5, subdivision (b)(2)(D), section 54233, section 54233.5; Health and Safety Code section 50074.

6 Section 102. Definitions
All terms not defined below shall, unless their context suggests otherwise, be interpreted in accordance with the meanings of terms provided in the SLA and Article 10.6 of Government Code sections 65580 – 65589.11 (housing elements). For terms defined in statute, any changes to the statutory definition shall supersede the definition in these Guidelines. (a) “Affordable housing” means housing available at affordable housing cost, as defined in section 50052.5 of the Health and Safety Code, to lower-income households, or affordable rent, as defined in section 50053 of the Health and Safety Code, to lower-income households, as defined in section 50079.5 of the Health and Safety Code. (b) “Affordable housing cost” means that for owner-occupied housing, the sales price is restricted for a minimum of 45 years, and 50 years for housing located on tribal trust lands.

The monthly ownership cost, including principal, interest, taxes, insurance, and utilities, equals:
(1) For extremely low-income households, the product of 30 percent times 30 percent of the area median income (AMI) adjusted for family size appropriate for the unit. (2) For very low-income households, the product of 30 percent times 50 percent of the AMI adjusted for family size appropriate for the unit.
(3) For lower-income households whose gross incomes exceed the maximum income for very low-income households and does not exceed 70 percent of the AMI adjusted for family size, the product of 30 percent times 70 percent of the AMI adjusted for family size appropriate for the unit. In addition, for any lower-income household that has a gross income that equals or exceeds 70 percent of the AMI adjusted for family size,it shall be optional for any state or local funding agency to require that affordable housing cost not exceed 30 percent of the gross income of the household.
(4) For moderate-income households, affordable housing cost shall not be less than 28 percent of the gross income of the household, nor exceed the product of 35 percent times 110 percent of AMI adjusted for family size appropriate for the unit. In addition, for any moderate-income household that has a gross income that exceeds 110 percent of the AMI adjusted for family size, it shall be optional for any state or local funding agency to require that affordable housing cost not exceed 35 percent of the gross income of the household.
(c) “Affordable rent” means that for rental housing, the rent is restricted for a minimum of 55 years, and 50 years for housing located on tribal trust lands. Including a reasonable utility allowance, rent shall not exceed:
(1) For extremely low-income households, the product of 30 percent times 30 percent of the AMI adjusted for family size appropriate for the unit. (2) For very low-income households, the product of 30 percent times 50 percent of the AMI adjusted for family size appropriate for the unit.

7 (3) For lower-income households whose gross incomes exceed the maximum income for very low-income households, the product of 30 percent times 60 percent of the AMI adjusted for family size appropriate for the unit. In addition, for those lowerincome households with gross incomes that exceed 60 percent of the AMI adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of the gross income of the household.
(4) For moderate-income households, the product of 30 percent times 110 percent of the AMI adjusted for family size appropriate for the unit. In addition, for those moderate-income households whose gross incomes exceed 110 percent of the AMI adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of the gross income of the household.
(d) “APR” means the Annual Progress Report from each city or county detailing the agency’s implementation of the housing element of its general plan submitted to and using forms and definitions adopted by HCD.
(e) “Assisted unit” means a unit that is subject to rent and/or occupancy restrictions, as a result of financial assistance, as specified in a regulatory agreement. (f) “CalHFA” means the California Housing Finance Agency. (g) “Description of negotiations” means a written summary of the negotiations that occurred between the local agency and each entity which responded to an NOA. The written summary must be accompanied by copies of written correspondence (e.g., emails, letters, etc.) that include, if applicable, (1) the respondent’s interest in the surplus land, (2) the local agency’s request for additional information from the respondent, (3) any responses to such requests, (4) a description of any significant changes proposed by the respondent, (5) confirmation from the local agency to the respondent indicating negotiations have concluded, and (6) if applicable, a copy of the draft Purchase and Sale Agreement, Disposition and Development Agreement, Lease Agreement or Exclusive Negotiating Agreement. This information shall be provided to HCD in a form prescribed by HCD in Appendix B.
(h) “Determination Letter” is a letter that HCD sends to a local agency when HCD finds that the local agency has corrected all issues identified by HCD in a Findings Letter or if HCD concurs that the local agency’s process for disposing of surplus land complies with the SLA.
(i) “Disposition of surplus land.”
(1) Disposition means:
(A) The sale of surplus land, including land exchanged for monetary or nonmonetary consideration.

8 (B) The entering of a lease for surplus land for a term longer than 15 years, inclusive of any extension or renewal options included in the terms of the initial lease, entered into on or after January 1, 2024. A lease with a term of 15 years or less that includes an option to extend or renew is a disposition if the sum of the term of the original lease and the extension or renewal is greater than 15 years. A lease that is for a term of 15 years or less that includes an option to purchase is considered a disposition of surplus land at the time the lease is executed.
(2) Disposition does not mean:
(A) The entering of a lease for surplus land for a term of 15 years or less, inclusive of any extension or renewal options included in the terms of the initial lease.
(B) The entering of a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease. (i) For the purposes of this section, development means the process of changing the character of the land from its existing condition to a more useable condition by constructing or placing a building or buildings on the land, preparing the land for such construction, or reusing an existing building for a purpose other than the purpose for which it was originally built or designed.
(ii) For the purposes of this section, demolition means the deliberate dismantling, destruction, or removal of an entire building or significant portions of a building, rendering it unfit for use.
(iii) Development and demolition do not include making improvements, renovations, or updates to an existing building, while preserving its structural integrity, or replacing an existing building that has reached the end of its structural life with a building that will be used for the same purpose.
(3) If a local agency is unsure whether a transaction involving local agency-owned land meets this definition, they are encouraged to seek additional guidance from HCD via the Surplus Land Act Portal.
(j) “Disposition and Development Agreement (DDA)” means an agreement between a developer and a local agency that binds the developer to construct a specific development and the local agency to dispose of the property to the developer if permits and other entitlements for the project are obtained and other applicable conditions are met. (k) “District” includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of the state that is a district. The California State Controller provides information about districts at https://districts.bythenumbers.sco.ca.gov/#!/year/default.

9 (l) “Exclusive Negotiating Agreement (ENA)” means a legally binding agreement that binds a prospective buyer and seller under which the seller cannot negotiate with, entertain offers from, or make any similar deals with other potential buyers for a specified period regarding a particular property.
(m) “Expression-of-interest list” means the list maintained by HCD on its website of developers that have notified HCD of their interest in purchasing or leasing surplus property.
(n) “Fair market value” is the price a particular parcel would sell for on the open market when certain conditions are met. Those conditions are: (1) the parties involved are aware of all the facts, (2) are acting in their own interest, (3) are free of any pressure to buy or sell, and (4) have ample time to make the decision. In cases where fair market value has not been established, the parties may seek a broker’s opinion of value, or an appraisal may be conducted. If, following a single appraisal, consensus on fair market value remains absent, a second appraisal is frequently obtained. If consensus on fair market value is not reached after the second appraisal, the parties may average the results of the two appraisals, or a third appraisal may be obtained. Nothing in these Guidelines prevents a local agency from selling or leasing surplus land for fair market value or fair market rent or less than fair market value or fair market rent.
(o) “Findings Letter” is the initial letter HCD sends to a local agency informing the local agency whether it is potentially in violation of the SLA. A local agency may respond to a Findings Letter that notifies the local agency of potential violations by either providing evidence and arguments it is not in violation of the SLA or by providing a plan to cure and correct the violations identified in the Findings Letter. (p) “Good faith negotiation” means to deal honestly and fairly with the other party throughout the negotiation process whether or not the negotiation results in a contract. For specific documentation requirements, see Section 202(a).
(q) “HCD” means the California Department of Housing and Community Development. (r) “Housing sponsor” means any individual, joint venture, partnership, limited partnership, trust, corporation, limited equity housing cooperative, cooperative, local public entity, duly constituted governing body of an Indian reservation or rancheria, tribally designated housing entity, or other legal entity, or any combination thereof, certified by CalHFA pursuant to rules and regulations of CalHFA as qualified to either own, construct, acquire, or rehabilitate a housing development, whether for profit, nonprofit, or organized for limited profit, and subject to the regulatory powers of CalHFA pursuant to rules and regulations of CalHFA and other specified terms and conditions. A developer can become a self-certified housing sponsor in accordance with CalHFA’s procedures on the form as provided at https://www.calhfa.ca.gov/apps/HSC. “Housing sponsor” includes persons and families of low or moderate income who are approved by CalHFA as eligible to own and occupy a housing development and individuals and legal entities receiving property improvement loans through CalHFA.
(s) “Local agency” means every city, whether organized under general law or by charter,

10 county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property. (t) “Local Public Entity” means any county, city, city and county, the duly constituted governing body of an Indian reservation or rancheria, tribally designated housing entity as defined in Section 4103 of Title 25 of the United States Code and Section 50104.6.5, redevelopment agency organized pursuant to Part 1 (commencing with Section 33000) of Division 24, or housing authority organized pursuant to Part 2 (commencing with Section 34200) of Division 24, and also includes any state agency, public district, or other political subdivision of the state, and any instrumentality thereof, that is authorized to engage in or assist in the development or operation of housing for persons and families of low or moderate income. “Local public entity” also includes two or more local public entities acting jointly.
(u) “Lower-income households” means persons and families whose income does not exceed the qualifying limits for lower-income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937 and published by HCD pursuant to section 50093 of the Health and Safety Code. Lower-income households includes very low-income households, as defined in Health and Safety Code section 50105, and extremely low-income households, as defined in Health and Safety Code section 50106. The income limits published by HCD can be found at https://www.hcd.ca.gov/grants-and-funding/income-limits. (v) “Notice of Alleged Violation” is a written communication sent to a local agency (with a copy to HCD) by a public (not HCD) or private entity alleging violations of the SLA. (w) “Notice of Violation (NOV)” is a letter sent by HCD to a local agency after a Findings Letter has been sent, informing the local agency it is in violation of the SLA and the local agency may be subject to further enforcement if the local agency does not cure or correct the violations within 60 days, including but not limited to referral to the California Office of the Attorney General and financial penalties.
(x) “Open-space purposes” means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources. (y) “Option to lease” means a contract by which a local agency enters an agreement with another entity to allow the latter to lease surplus land at a specified rate for a specified term, or within a reasonable time in the future, but without imposing an obligation to lease upon the option holder.
(z) “Option to purchase” means a contract by which a local agency enters an agreement with another entity to allow the latter to purchase surplus land at a specified price, or within a reasonable time in the future, but without imposing an obligation to purchase upon the option holder.
(aa) “Persons and families of low or moderate income” means persons and families whose income does not exceed 120 percent of AMI adjusted for familysize by HCD in accordance

11 with adjustment factors adopted and amended from time totime by the U.S. Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937. The income limits published by HCD can be found at https://www.hcd.ca.gov/grantsand-funding/income-limits. (bb) “Planning period” means the time period between the due date for an agency’s preparation or update of its housing element and the due date for the next housing element according to the applicable schedule described in paragraphs (2) and (3) of subdivision (e) of Government Code section 65588. Generally, the “Planning period" iseight years. (cc) “RHNA” means the Regional Housing Needs Allocation to be developed by HCD in consultation with each council of governments, where appropriate, which shall determine the existing and projected need for housing for each region. (dd) “Surplus land” means land owned in fee simple for which a local agency’s governing body takes formal action at a regular public meeting declaring land to be surplus and not necessary for a local agency’s use (as defined in section 104 of these Guidelines). Land must be declared either “surplus” or “exempt surplus” as supported by written findings before a local agency may take any action to dispose of it consistent with an agency's policies or procedures. A local agency, on an annual basis, may declare multiple parcels as “surplus” or “exempt surplus.”
(ee) “Transitional housing” means a rental housing development operating under programmatic constraints that require the termination of assistance after a specified time or event, in no case less than six months after initial occupancy, and the re-rentingofthe assisted unit to another eligible participant.
(ff) “Unit” means a residential unit that is used as a primary residence by its occupants, consistent with the definition of a unit as utilized by the United States Census Bureau and the California Department of Finance, including efficiency units, residential hotel units, and units used as transitional housing.

Note: Authority cited: Government Code section 54230, subdivision (c), section 54230.5, subdivision (b)(2)(D). Reference cited: Government Code section 54221, section 54222, section 54222.5, section 54223, section 54226, section 54230, section 54230.5, section 54233, section 54233.5, section 54234, section 65400, sections 65580 – 65589.11; Health and Safety Code section 50052.5, section 50053, section 50074, section 50079.5, section 50093; Public Resources Code, Division 13 (section 21000 et seq.).

Section 103. Exemptions
(a) These Guidelines apply to the disposal of all surplus land and exempt surplus land, as defined in Government Code section 54221. However, exempt surplus land is not subject to Articles II and III of these Guidelines.
(b) Surplus land that meets one or more of the following conditions in this subsection is not subject to Articles II and III of these Guidelines, but is still subject to the provisions of the SLA as it existed on December 31, 2019:

12 (1) Land for which the local agency entered into an ENA or legally binding agreement to dispose of property as of September 30, 2019, provided the disposition is completed by December 31, 2027.
(2) Land related to the Metro North Hollywood Joint Development Project for which the local agency entered into an ENA or legally binding agreement to dispose of the property as of September 30, 2019, and the disposition of the property to the party that had entered into such an agreement, or its successors or assigns, is completed by December 31, 2027.
(3) Land for which the local agency has, by September 30, 2019, issued a competitive request for proposals (RFP) for the development of property that includes at least 100 residential units with at least 25 percent of the total residential units restricted to lower-income households with an affordable housing cost or affordable rent for a minimum of 55 years for rental housing, 45 years for ownership housing and 50 years for rental or ownership housing located on tribal trust lands; and the local agency enters into a disposition and development agreement (DDA) by December 31, 2027.
(A) A joint development involving multiple parcels for which the local agency has issued a single competitive RFP by September 30, 2019, is exempt from Articles II and III of these Guidelines so long as the joint development meets all the other requirements in paragraph (3) above.
(B) Paragraph (3) above does not apply to land held in the Community Redevelopment Property Trust Fund pursuant to section 34191.4 of the Health and Safety Code, or that has been designated in a long-range property management plan pursuant to section 34191.5 of the Health and Safety Code.
(4) The deadline for disposal of property set out in paragraphs (1), (2), and (3) above shall be extended if the disposition of the property, the local agency’s right or ability to dispose of the property, or a development project for which such property is proposed to be transferred is the subject of judicial challenge by petition for writ of mandate, complaint for declaratory relief or otherwise. Such extension shall be six months following the conclusion of such litigation.
(5) Land held in the Community Redevelopment Property Trust Fund or designated in a long-range property management plan, provided the disposition of the property meets one of the following:
(A) Land for which the local agency entered into an ENA or legally binding agreement to dispose of the property as of December 31, 2020, and the disposition of the property to the party that had entered into such agreement, or its successors or assigns, was completed by December 31, 2027. (B) The deadline for disposal of the property set out in paragraphs (5) and (5)(A) above shall be extended if the land subject to the Community Redevelopment Property Trust Fund or the long-range property management plan is the

13 subject of litigation, including, but not limited to, litigation challenging the disposition of such property, the right or ability to dispose of the property, or a development project for which such property is proposed to be transferred.

Such extension shall be six months following the conclusion of such litigation. (6) HCD has no authority to waive or amend the statutory deadlines specified in paragraphs (1)-(5) above.
(7) Reviving Terminated Agreements. If a local agency failed to qualify for one of the grandfathering provisions found in a prior version of Government Code section 54234 because the final disposition of surplus land proposed for sale in an ENA, DDA, or other legally binding agreement was not completed before a prior statutory deadline (generally December 31, 2022), a local agency may seek, at its sole reasonable discretion, to revive the previous ENA, DDA, or legally binding agreement along substantially similar terms and qualify for the new December 31, 2027, deadline established in statute.
(c) Land declared to be exempt surplus land by the local agency. With the exception of the exemptions identified in 103(c)(1) below, the governing board of a local agency must declare the property to be “exempt surplus land” at a regular public meeting and the declaration must be supported by written findings demonstrating that the land is of one or more of the following types:
(1) For exempt surplus land identified in Government Code section 54221(f)(1)(A), (B), (E), (K), (L), or (Q), a local agency may, instead, elect to identify the land in a public notice that is published by the local agency and available for public comment. Notice must also be provided to the entities identified in Section 201(a) of these Guidelines.

The local agency must provide notice at least 30 days before the exemption takes effect.
(2) City- and County-Owned Land for Affordable Housing. County-owned surplus land transferred for the development of affordable housing must meet the requirements of Government Code section 25539.4. City-owned surplus land transferred for the development of affordable housing must meet the requirements of Government Code section 37364.
(A) Local agencies must, once a developer has been selected, submit to HCD a DDA, ENA or lease that confirms the requirements of Government Code section 54221(f)(1)(A) have been met.
(3) Small Surplus Land Parcels. Land that is:
(A) Less than one-half acre in area (21,780 square feet) and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes.
(i) For the purposes of these Guidelines, each parcel of land shall be considered a distinct unit of exempt surplus land, except that contiguous parcels that are disposed of simultaneously to the same receiving entity,

14 or any entity working in concert with another receiving entity, shall be treated as a single unit of land.
(4) Exchange of Surplus Land. Surplus land that a local agency is exchanging for another property or easement necessary for the local agency’s use. (5) Local Agency to Agency Surplus Land Transfer. Surplus land that is transferred to another local, state, federal agency, or federally recognized California Indian tribe for the transferee agency’s use. Surplus land may also be transferred to a third party intermediary if that third party agrees to make no change in use to the property, and the third party acquires the land through a legally binding document that clearly binds the receiving local agency to use the property for the receiving agency’s use and includes a date for eventual transfer of the property to the receiving agency within a reasonable time period.
(6) Surplus Street Land. Surplus land that is a former street, right of way, oreasement, and is conveyed to an owner of an adjacent property.
(7) Mixed-Use Developments for Affordable Housing. Land disposed for any of the purposes identified below:
(A) A housing development (including mixed-use developments with ancillary commercial ground floor uses) that restricts 100 percent ofthe residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower-income households as affordable housing pursuant to section 102(a) of these Guidelines. In no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located. The requirements of Section 102(a) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(i) For purposes of this subsection, neighborhood means the zip code in which the site is located. A local agency disposing of land for housing development pursuant to (i) above may use the most recent median market rents and sales price data for the zip code in which the site is located to calculate the affordable sales price and rent level of restricted units.
(B) A mixed-use development on surplus land that is more than one acre but less than 10 acres in area. The land may be a single parcel or multiple adjacent or non-adjacent parcels. The development must include not less than 300 residential units and restrict at least 25 percent of the residential units to lower-income households as affordable housing pursuant to section 102(a) of these Guidelines. The requirements of Section 102(a) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who

15 violates the covenant or restriction and each successor in interest who continues the violation.
(i) To qualify for this exemption, a local agency must either follow the local agency’s open, competitive solicitation process or put the property out to an open, competitive bid in which all entities identified in Section 201(a) of these Guidelines are invited to participate.
(C) Surplus land totaling 10 or more acres, consisting of either a single parcel or two or more adjacent or non-adjacent parcels combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency or to a state statute if all of the following conditions are met:
(i) The completed development will consist of the greater of either:

I. 300 or more residential units, or
II. A number of residential units equal to 10 times the number of acres of the surplus land (e.g., a 40-acre development requires 400 residential units) or 10,000 residential units, whichever is less. (ii) A local agency must either follow their local agency’s open, competitive solicitation process or put the property out to an open, competitive bid in which all entities identified in Section 201(a) of these Guidelines are invited to participate.
(iii) The development restricts at least 25 percent of the residential units to lower-income households as affordable housing pursuant to Section 102(a) of these Guidelines. The requirements of Section 102(a) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(iv) In mixed-use developments, residential housing must be constructed concurrently with non-residential development. If nonresidential development (e.g., commercial development) is included in the development, at least 25 percent of the total planned affordable units shall be made available for lease or sale and permitted for use and occupancy before or at the same time as at least 25 percent of nonresidential development is made available for lease or sale and permitted for use and occupancy.

I. Percent of nonresidential development is measured by computing the total square footage of the commercial component of the development, as identified in the final DDA, and multiplied by .25. (v) Any violation of this Section 103(c)(7)(C) is subject to the penalties

16 described in Government Code section 54230.5. A local agency shall only dispose of land pursuant to this subsection through a disposition and development agreement that includes an indemnification clause that provides that if an action occurs after disposition that violates this subsection, the person or entity that acquired the property shall be liable for the penalties.
(D) A mixed-use development in rural areas of California, consisting of one or more parcels, that meets all the following conditions:
(i) The development restricts at least 25 percent of the residential units to lower-income households as affordable housing pursuant to Section 102(a) of these Guidelines. The requirements of Section 102(a) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.
(ii) At least 50 percent of the square footage of the new construction is designated for residential use.
(iii) The development is not located in an urbanized area, as defined in Section 21094.5 of the Public Resources Code, which defines “urban” as either an incorporated city or an unincorporated area that is completely surrounded by one or more incorporated cities that meets both of the following criteria:

I. The sum of the population of the unincorporated area and the population of the surrounding incorporated cities is 100,000 or more.

II. The population density of the unincorporated area is equal to, or greater than, the population density of the surrounding cities. (E) Where the surplus land consists of more than one parcel or is one parcel that will be subdivided into multiple contiguous parcels, and the parcel(s) are eligible for one of the exemptions under Section 103(c)(7)(A)-(D), the land can be treated as one parcel by a master developer. In addition, the affordable residential units must be constructed and completed not later than the unrestricted units and non-residential portion of the development. If the mixed-use development occurs in phases, the affordability requirement must be met in each phase.
(8) Land Subject to Valid Legal Restrictions. For land to qualify for this exemption, a local agency must establish that the surplus land is subject to a legal restriction pursuant to section (A) below and meets the following criteria: 1) the restriction was not imposed by the local agency, 2) the restriction makes housing a prohibited use, and 3) there is no feasible method to mitigate or avoid the prohibition of housing on the site.

17 (A) So long as the land meets all the criteria in this Section 103(c)(8), above, valid legal restrictions include, but are not limited to, the following:
(i) Existing contracts, including leases, agreed to prior to September 30, 2019.
(ii) Easements.
(iii) Source of Funding Restrictions. Restrictions imposed by the source of funding that a local agency used to purchase a property, provided that both of the following requirements are met:

I. The restrictions require the funds be spent only on non-housing purposes.

II. The proposed disposal of the land is consistent with the requirements imposed by the funding constraints.
(iv) Other valid legal restrictions may also include federal or state statutes or regulations.
(B) A valid legal restriction shall be supported by documentary evidence establishing the valid legal restriction. Such evidence includes, but is not limited to, the following:
(i) Copies of contracts, leases, public or private grant deeds, easements, or federal or state statutes or regulations.
(ii) A written explanation describing how the legal restriction meets the criteria in section 103(c)(8).
(iii) It is not necessary for a local agency to acquire additional property rights or property interests belonging to third parties in order to attempt to mitigate housing prohibitions.
(C) Valid Legal Restrictions do not include the following:
(i) Existing nonresidential land use designations.
(ii) Covenants, restrictions, or other conditions on the property rendered void and unenforceable by any other law, including, but not limited to, Section 714.6 of the Civil Code.
(9) Surplus Trust Lands. Surplus land that was granted by the state in trust toa local agency or that was acquired by the local agency for trust purposesby purchase or exchange, and for which disposal of the land is authorizedor required subject to conditions established by statute.

18 (A) A list of state granted trust lands may be found on the State Lands Commission website: https://www.slc.ca.gov/granted_lands/. (B) A declaration of surplus trust land exempted pursuant to this subdivision must be supported by written findings that the land was granted by the state in trust or acquired by the local agency for trust purposes. The written findings must include the governing statute that sets the conditions for disposal of the trust land.
(10) School District Surplus Land. Land that is subject to Education Code sections 17388, 17515, 17536, 81192, 81397, 81399, 81420, or 81422 of the Education Code and Part 14 of Division 31 of the Health and Safety Code commencing with Health and Safety Code section 53570, unless compliance with the SLA is expressly required.
(11) Real property that is used by a district for agency’s use expresslyauthorized in Government Code section 54221(c).
(12) Transfers of Surplus Parking Lot Land. Surplus parking lot land that has been transferred before June 30, 2019, by the state to a local agency pursuant to Streets and Highways Code section 32667 and has a minimum planned residential density of at least 100 dwelling units per acre and includes 100 or more residential units that are restricted to persons and families of low or moderate income pursuant to Section 102(a) of these Guidelines.
(13) Surplus land disposed of by a local educational agency, as defined by and pursuant to Government Code section 65914.7 (effective January 1, 2024). (14) Surplus land that is a former military base that was conveyed by the federal government to a local agency and is subject to Article 8 (commencing with section 33492.125) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, provided that all of the following conditions are met:
(A) The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base. (B) The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least 25 percent of the initial 1,400 residential units developed shall be restricted to lower-income households, as defined in section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in sections 50052.5 and 50053 of the Health and Safety Code.

Rental housing must be restricted for a minimum of 55 years; for-sale housing must be restricted for a minimum of 45 years; and rental or ownership housing located on tribal trust lands must be restricted for a minimum of 50 years.

19 (C) Prior to the disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agency's project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient.
(D) The agency includes in the annual report required by Government Code section 65400(a)(2) the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, as defined in section 50093 of the Health and Safety Code, or lower-income households, as defined in section 50079.5 of the Health and Safety Code. (15) Sectional Planning Areas. Land subject to Government Code section 54221(f)(1)(P).

HCD may request additional information to confirm land is eligible for the exemption. (16) Surplus Land at Airport Facilities. Land that is owned by a California public-use airport in which residential housing is prohibited by Federal Aviation Administration (FAA) rules, grant deeds, or grant assurances. It is the responsibility of the local agency to identify the specific FAA rule, grant deed or grant assurance that prohibits housing.
(17) Land Transferred to a Community Land Trust. Land that is sold, leased, or transferred to a community land trust that meets all the following requirements:
(A) The land is, or will be, developed or rehabilitated for the purposes of housing. (B) The housing that will be developed or rehabilitated will be occupied by low or moderate-income households as defined in Section 50093 of the Health and Safety Code for owner-occupied units or occupied by low-income households as defined in Section 50079.5 of the Health and Safety Code for rental units. (C) The affordability requirements identified above shall be contained in a covenant, deed restriction, or equity sharing agreement pursuant to paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code for owner-occupied units or pursuant to paragraph (2)(A) of subdivision (g) of Section 214 of the Revenue and Taxation Code for rental units, and recorded against the surplus land no later than January 1 of the year following the sale, that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation. A copy of the covenant or restriction shall be provided to the County Assessor.
(18) Mixed-use developments by Transportation Districts. (A) Land owned by local agencies whose primary mission or purpose is to supply the public with transportation may be used to develop projects for commercial or industrial uses, including nongovernmental retail, entertainment, or office

20 development or for the sole purpose of investment or generation of revenue, if the agency meets all the following criteria:
(i) The agency has an adopted land use plan or policy that designates at least 50 percent of the gross acreage covered by the adopted land use plan or policy for residential purposes and that plan proposes to develop the greater of either at least 300 residential units or at least 10 residential units per gross acre, averaged across all land covered by the land use plan or policy. Land use plans or policies include but are not limited to an adopted land use plan, land use program, joint development policy, transit-oriented development policy, or other similar policy. (ii) The agency’s adopted land use plan or policy requires that at least 25 percent of all residential units to be developed on the parcels covered by the adopted land use plan or policy are affordable pursuant to Section 102(a) of these Guidelines.
(iii) While the agency is required to develop all the affordable units in the agency’s adopted land use plan or policy, before the agency is permitted to dispose of land for non-housing purposes, the agency must have in place a legally binding agreement(s), entered into since January 1, 2020, to dispose of at least 25 percent of the land pursuant to subparagraph (ii).
(B) Land disposed of for residential purposes shall:
(i) Be put out subject to the local agency’s open, competitive solicitation process or put out to open, competitive bid by the local agency, provided that all entities identified in Government Code section 54222, subdivision (a), are invited to participate.
(ii) Include the appropriate affordability covenants or restrictions recorded against the surplus land that will be used to meet the plan's affordability requirements. At least 25 percent of the residential units proposed in the entirety of the land use plan or policy, but not necessarily on individual parcels, must be affordable pursuant to Section 102(a) of these Guidelines.
(19) Land subject to Government Code section 54222.3.1. HCD may request additional information to confirm land is eligible for the exemption. (d) If the surplus land is located in one of the four locations below, an NOA for open space purposes must be sent via email or certified mail to the entities identified in Government Code section 54222(b) and HCD before a local agency may dispose of the land pursuant to Section 103(c)(2)-(8) and (10)-(19) of these Guidelines. (1) The land is located within a coastal zone.
(2) The land is adjacent to a historical unit of the State Parks System.

21 (3) The land is listed on, or determined by the State Office of Historic Preservation to be eligible for listing on, the National Register of Historic Places.

(4) The land is located within the Lake Tahoe region as defined in Government Code section 66905.5.
(e) Exemption Determination: Any determination by a local agency that its surplus lands are exempt from the SLA must be supported by written findings and documentation, which shall be provided to HCD pursuant to section 400(e) of these Guidelines. (f) Pursuant to section 201 of these Guidelines, prior to disposing of surplus land or participating in negotiations to dispose of surplus land with a prospective transferee, a local agency shall send a written NOA. However, “participating in negotiations” does not include any of the following:
(1) Issuing an RFP or RFQ to the entities identified in Government Code section 54222(a) for the purposes of meeting the affordable housing exemptions in Government Code section 54221(f)(1)(A), (F), (G), (H), and (I); (2) Negotiating a lease, ENA, or option agreement for the purposes of meeting the affordable housing exemptions in Government Code section 54221(f)(1)(A), (F), (G), (H), and (I); or
(3) Negotiating with a developer to determine if the lease provisions of Government Code section 54221(d)(2) can be met.

Note: Authority cited: Government Code section 54230, subdivision (c)(2), section 54230.5, subdivision (b)(2)(D). Reference cited: Government Code section 54221, section 54222, section 54222.3, section 54223, section 54226, section 54227, section 54230, section 54230.5, section 54233, section 54234, subdivisions (a)(2), (b)(1), (b)(2), section 25539, section 25539.4, section 37364; Education Code section 17388, section 17515, section 17536, section 81192, section 81397, section 81399, section 81420, and section 81422; Health and Safety Code sections 53570 et seq.; Streets and Highways Code section 32667.

Section 104. Agency’s Use
(a) Except as provided below, “agency’s use” shall include, but not be limited to, land that is being used for agency work or operations, land that a local agency plans to use for agency work or operations pursuant to a written plan adopted by the local agency’s governing board, or land that is disposed of for agency work or operations. (1) “Agency work or operations” includes, but is not limited to, utility sites; watershed property; land being used for conservation purposes; land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, property owned by a port that is used to support logistics uses, sites for broadband equipment or wireless facilities, buffer sites located near sensitive governmental uses, including, but not limited to, wastewater treatment plants, and waste disposal sites.

22 (2) In cases where a local agency will only use a portion of land for agency’s use, the local agency must comply with the SLA when disposing of the portion of land not being used for agency’s use, even if revenue generated on that portion of the land is used to support the development on the portion of land that qualifies as agency’s use. A local agency may issue an NOA that includes reasonable conditions or restrictions, as provided in section 202(a)(2)(D)(iv), noting that a portion of the land will be used for agency’s use.
(3) Agency’s use shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the purpose of investment or generation of revenue shall not be considered necessary for agency’s use.
(4) In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, agency’s use may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development, or may be used for the sole purpose of investment or generation of revenue if either (a) such use directly furthers the express purpose of the district’s work or operations, or (b) such use is expressly authorized by a statute governing the district, provided the district complies with Government Code section 54233.5 where applicable. Also, the district’s governing body must take action in a public meeting declaring that the use of the site meets one of these two requirements.
(b) Land that a local agency disposes of pursuant to the Eminent Domain Law, Code of Civil Procedure section 1240.010 et seq., shall also constitute agency’s use, as defined in section 104 of these Guidelines, under either of the following conditions:
(1) The land is transferred to another property owner for the purpose of mitigating impacts to the transferee property owner resulting from the local agency’s project. (2) The local agency acquired the land for the express purpose of transferring the land to another entity.
(c) Notice of Disposition for Agency’s Use: A local agency that plans to dispose of land for agency’s use shall provide documentation that the land meets the definition of agency’s use in Section 104(a) to HCD at least 30 days prior to disposition. A local agency that is using or plans to use the land for agency’s use but is not disposing of the land, as defined in Section 102(i) of these Guidelines, is not required to send documentation to HCD.

Note: Authority cited: Government Code section 54221, subdivisions (b)(1), (c)(1), (c)(2)(A), (c)(2)(B).

23 ARTICLE II. SURPLUS LAND
Section 200. Surplus Land Determination Process
(a) Land must be declared either “surplus land” or “exempt surplus land,” as supported by written findings, before a local agency may take any action to dispose of it consistent with an agency's policies or procedures. Prior to taking any action to dispose of surplus land or participating in negotiations to dispose of surplus land with a prospective transferee, a local agency shall send a written Notice of Availability (NOA). A local agency may not solicit or accept offers to purchase or develop surplus land until the agency has first sent an NOA and, if the agency receives any responses to the NOA, completed negotiations with those parties. However, “participating in negotiations” does not include any of the following:
(1) Issuing an RFP or RFQ to the entities identified in section 54222(a) for the purposes of complying with Government Code sections 54221(f)(1)(A), (F), (G), (H), and (I); (2) Negotiating a lease, ENA, or option agreement for the purposes of meeting the affordable housing exemptions in Government Code section 54221(f)(1)(A), (F), (G), (H), and (I); or
(3) Negotiating with a developer to determine if the lease provisions of Government Code section 54221(d)(2) can be met.
(b) Surplus land shall have the definition set forth in section 102(dd) of these Guidelines and exempt surplus land shall have the definition and meet therequirements set forth in section 103(c) of these Guidelines.
(c) Beginning April 1, 2021, “a central inventory of all surplus land” shall be reported to HCD no later than April 1 of each year on Table H of the city’s or county’s APR submitted pursuant to Government Code section 65400(a)(2).

Note: Authority cited: Government Code section 54230, subdivision (c)(2), section 54230.5, subdivision (b)(2)(D). Reference cited: Government Code section 54230, section 65400.

Section 201. Notice of Availability
Any local agency disposing of surplus land, prior to disposing of that property or participating in negotiations to dispose of that property with a prospective transferee, shall send a written NOA to all parties designated in Section 201(a)-(d) below. The notice shall be in a form prescribed by HCD in Appendix A of these Guidelines and shall comply with the following. (a) Low- and Moderate-Income Housing Notice of Availability. (1) A written NOA of surplus land provided on the form containedin Appendix A of these Guidelines for the purpose of developing low- and moderate-income housing shall be sent to the following:
(A) HCD and any local public entity as defined in Health and Safety Code section 50079 and Section 102(t) of these Guidelines, within whose jurisdiction the surplus land is located. HCD will maintain on its website an up-to-date listing

24 of all NOAs throughout the state. NOAs shall be delivered to HCD via the SLA Portal or Certified Mail.
(B) Housing sponsors that have notified HCD of their interest in surplus land that is in the county in which the surplus land is located or in all California counties. Housing sponsors must notify HCD of their interest in surplus land by completing a survey provided by HCD. Those interested in receiving notices from local agencies based on HCD’s expressions-of-interest list are responsible for keeping their addresses and contacts current. (2) An entity not on HCD’s list may also respond to an NOA. (3) All responses shall be date and time stamped by the local agency as they are received.
(4) All NOAs shall be sent by certified mail or email and shall include the location and a description of the surplus land.
(b) Park, Recreation and Open Space availability notices shall comply with the conditions and follow the requirements as described in Government Code sections 54221, subdivision (f)(2), 54222, and 54227, subdivision (b).
(c) School facilities surplus land availability notices shall comply with the conditions andfollow the requirements as described in Government Code section 54222(c). (d) Infill Opportunity Zone or Transit Village Plan surplus land availability notices shall comply with the conditions and follow the requirements as described in GovernmentCode section 54222(d).

Note: Authority cited: Government Code section 54230, subdivision (c)(2), section 54230.5, subdivision (b)(2)(D). Reference cited: Government Code section 54221, subdivision (f)(2), section 54222, and section 54227, subdivision (b); Health and Safety Code section 50079.

Section 202. Disposal of Surplus Land for Affordable Housing Prior to taking any action to dispose of surplus land, the governing board of a local agency must hold the required public meeting to declare property as surplus land, as described in Section 102(dd) of these Guidelines, and an NOA described in Section 201(a) must be sent to interested housing sponsors identified by the expressions-of-interest list maintained by HCD and local public entities within whose jurisdiction the surplus land is located and must invite thoseinterested to respond to the local agency with a notice of interest.
(a) Negotiating Disposition of Surplus Land for Affordable Housing (1) Response to an NOA of surplus land for the development of affordable housing (A) 60 Days to Respond. An entity or association interested in developing surplus land for affordable housing must notify in writing the disposing agency of its interest in purchasing or leasing the land within 60 days after the agency’s NOA is sent via certified mail or provided via electronic mail.

25 (i) A local agency may not issue an RFP on surplus land less than 60 days from the date that the local agency issues the NOA.
(ii) If a notice of interest is received in response to an NOA, an RFP may not be issued until after the conclusion of the 90-day negotiation period. (B) Upon Receipt of Notice of Interest. If a local agency disposing of surplus land receives a timely notice of interest from a proper entity, then a good faith negotiation period of at least 90 days begins on the first day after the end of the 60-day period in Government Code section 54222(e). If the price or terms cannot be agreed upon after the full 90-day good faith negotiation period, then the local agency may dispose of the surplus land without further regard to the SLA but must stillcomply with Government Code section 54233 or 54233.5, as applicable.
(C) 90-Day Good Faith Negotiation Period.
(i) For purposes of the 90-day good faith negotiation period, residential use of the surplus land by the prospective transferee shall be deemed an acceptable use. Nothing in this subdivision shall restrict a local jurisdiction’s authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land, except that terms agreed to as part of the 90-day good faith negotiation period must comply with the following:

I. A local agency cannot prohibit residential use of the surplus land as a condition of a sale or lease.

II. A local agency cannot reduce the authorized number of residential units or the maximum lot coverage of the surplus land below what is allowed by zoning or general plan requirements.

III. A local agency may not require, as a condition of sale or lease, any design standards or architectural requirements that would have a substantial negative effect on the viability or affordability of a housing development for very low-, low- or moderate-income households, other than the minimum standards required by general plan, zoning, and subdivision standards and criteria.
(ii) For the purpose of disposition of surplus land in Section 400(b)(1) of these Guidelines, the local agency must establish and document that good faith negotiations have taken place with each respondent. (iii) HCD may request from local agencies a purchase and sale or lease agreement disposing of surplus land when good faith negotiations do not result in a disposition to an affordable housing entity. (iv) Activities that demonstrate good faith negotiations include, but are not limited to:

26 I. Make a serious effort to meet at reasonable times and attempt to reach agreement;
II. Respond to letters of interest;
III. Respond to and consider reasonable offers to purchase or lease; IV. Not require that development proposals significantly deviate from the NOA; and
V. Not arbitrarily end active negotiations after 90 days. (D) For the purposes of complying with the SLA’s requirements regarding NOAs, “participating in negotiations” does not include the commissioning of appraisals, due diligence prior to the sale or lease of the surplus land, discussions with brokers or real estate agents not representing a potential buyer, or other studies to determine value or best use of the surplus land, issuance of a request for qualifications, development of marketing materials, or discussions conducted exclusively among local agency employees and elected officials.
(E) If an entity believes a local agency has not negotiated with it in good faith pursuant to this section, the entity may notify HCD via the Surplus Lands Portal.
(F) Sample negotiation process timeline. The following represents a sample timeline for a good faith negotiation per the definition in Section 102(m) of these Guidelines. Minor departures from this sample do not constitute per se bad faith, and differences in the timeline may be justified with prior notice to HCD.
• March 1, 2024 – disposing agency sends an NOA of surplus land as described in Section 201;
• March 12, 2024 – disposing agency receives notice of interest from first entity desiring to purchase or lease the surplus land; • March 22, 2024 – disposing agency receives notice of interest from second entity desiring to purchase or lease the surplus land; • April 30, 2024 – last day for an entity desiring to purchase or leasethe surplus land to respond to the NOA;
• May 1, 2024 – 90-day, good faith negotiation period commences, as described in section 202(a)(1)(C);
• July 30, 2024 – last day of 90-day, good faith negotiation period; • July 31, 2024 – first day that disposing agency may dispose of the surplus land without regard to the amendments to the SLA, exceptthat the disposing agency must still follow Government Code sections 54233 or 54233.5.
(2) Terms
(A) As part of the 90-day good faith negotiation period, a local agency and a

27 prospective transferee may agree to limitations on residential use or density if, without such limitations, the residential use or density would have a specific, adverse impact, supported by written findings, upon the public health or safety or upon the local agency’s operation or facilities, andthere is no feasible method to satisfactorily mitigate the impact.
(B) For low- and moderate-income housing purposes, a local agency may agree to a payment period of up to 20 years for a sale of surplus land in any contract of sale or sale by trust deed for the land. Such payment periodmay exceed 20 years but shall not exceed the term that the surplus land is required to be used for low- or moderate-income housing. (C) A local agency may sell or lease surplus land at fair market value or fair market rent or less than fair market value or fair market rent. (D) Agreement between the local agency and buyer.
(i) Failure to agree on sale/purchase price of land: If “fair market value”was determined by a single appraisal, a second appraisal value commissioned from a mutually acceptable firm may be averaged with the initial value to determine a sales price.
(ii) Partial lease/acquisition: A local agency may agree to a lease or sale of part of the surplus land provided that the remaining parcel or parcels are disposed of as surplus land or exempt surplus land. A written justification for accepting a lease or sale of part of surplusland must accompany the Appendix B report to HCD.
(iii) Agency change of mind: A local agency may withdraw its NOA provided that no notices of interest have been received and a written “notice of withdrawal” is sent to all housing sponsors, local public entities, HCD, and any other developers to which the NOA was sent.
(iv) Conditions and restrictions required by the local agency as seller: A local agency may provide entities with reasonable conditions or restrictions for the surplus land in question, which must be included in the NOA, and should be reviewed by HCD pursuant to Section 400. The parties are required by the SLA to then negotiate in good faith. If the parties cannot resolve issues that would preclude a disposition within the 90-day negotiation period, the parties may discuss the issue(s) with HCD. (3) Multiple Notices of Interest
(A) A local agency may negotiate concurrently with all entities that providenotice of interest for the purpose of developing affordable housing thatmeets the requirements of Government Code section 54222.5.
(B) In the event that any local agency disposing of surplus land receives a notice of interest to purchase or lease that land from more than one of the entities to which an NOA was given, the local agency shall give first priority to the entity

28 or entities that agree to use the site for affordable housing that meets the requirements of Government Code section 54222.5, described as follows:
(i) Not less than 25 percent of the total number of units developed (which number includes density bonus units) shall be affordablehousing as defined by Section 102(a) of these Guidelines.
(ii) If the local agency receives notices of interest from more than one entity that agrees to meet the requirements of Government Code section 54222.5, then the local agency shall give priority to the entity that proposes to provide the greatest number of units that meet the requirements of Government Code section 54222.5.
(iii) If more than one entity proposes the same number of units that meetthe requirements of Government Code section 54222.5, priority shall be given to the entity that proposes the deepest average level of affordability for the affordable units.
(4) Following good faith negotiations, grounds for a local agency to reject an offer include, but are not limited to, the following:
(A) The local agency and buyer/lessee cannot agree on the sales price and terms or lease terms.
(B) Priority is given to a competing offer that includes a greater number of affordable units or, in case of a tie in the number of units, the lowest average level of affordability consistent with Government Code section 54222.5. (C) The interested entity is not responsive to a local agency’s reasonable conditions or restrictions as described in the NOA, where consistent with these Guidelines and the SLA.
(b) Requirements If Negotiations End with No Sale or Lease of Surplus Land (1) Local Agencies That Are Not Districts.
(A) If the local agency does not agree to price and terms with any entity to which an NOA was given pursuant to these Guidelines, or if no entity to which a NOA was given pursuant to these Guidelines responds to that notice, then the land in question may be disposed of outside of the SLA, except that this section shall apply.

In all dispositions of surplus land in which the local agency does not agree to price and terms or in which no entity responds, an affordability covenant must still be recorded against the property. The covenant must state that if 10 or more residential units are developed on the property, not less than 15 percent of the total number of residential units developed on the property shall be sold or rented as affordable housing as defined by Section 102(a) of these Guidelines.

29 (i) Rental units shall remain at an affordable housing cost to, and occupied by, lower-income households for a period of at least 55 years.

Ownership units shall remain at an affordable housing cost to,and occupied by, lower-income households for a period of at least 45 years.

Rental or ownership housing located on tribal trust lands shall remain at an affordable housing cost to,and occupied by, lower-income households for a period of at least 50 years. The initial occupants of all ownership units on the surplus land shall be lower-income households and the unit shall be subject to an equity sharing agreement consistent with Health and Safety Code section 65915(c)(2). Any subsequent occupants shall also be lower-income households, if necessary, for the unit to remain occupied by lower-income households, for at least 55 years, 45 years, or 50 years, respectively.
(ii) The requirements set out in this subdivision above shall be contained in a covenant or restriction to be recorded against the surplus land prior to land use entitlement, and the covenant or restriction shall run with the land and shall be enforceable by any of the following parties against any owner who violates the covenant or restriction and each successor in interest who continues the violation:

I. The local agency that disposed of the property.

II. Any resident of an affordable ownership or rental unitdescribed in this subdivision.

III. A resident’s association with members who reside in unitsdescribed in this subdivision.

IV. A former resident of a unit described in this subdivision who last resided in that unit.

V. An applicant seeking to enforce the covenants or restrictions for a particular unit, ownership or rental, as described in this subdivision, if the applicant conforms to all of the following:
a. Is of low or moderate income, as defined in section 50093 of the Health and Safety Code;
b. Is able and willing to occupy that particular unit; and c. Was denied occupancy of that particular unit dueto an alleged breach of a covenant or restriction implementing Government Code section 54222.5.

VI. A person on an affordable housing waiting list who is of low or moderate income, as defined in section 50093 of the Health and Safety Code, and who is able and willing to occupy a unitsubject to this provision of the Guidelines.

30 (B) A local agency shall provide a draft copy of any restrictions to be recorded against the surplus land to HCD as an attachment to the form prescribed by HCD in Appendix B.
(2) Districts.
(A) If a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, disposes of surplus land where local zoning permits development of 10 or more residential units or is rezoned within five years of the disposal to permit the development of 10 or more residential units, and 10 or more residential units are developed on the property, not less than 15 percent of the total number of residential units developed on the parcel shall be sold or rentedas affordable housing as defined by Section 102(a) of these Guidelines, and the additional requirements contained in Section 202(c)(1)(A)(i)-(ii) of these Guidelines shall apply.
(B) A local agency that is a district shall provide a draft copy of any restrictions to be recorded against the surplus land to HCD on the form prescribed by HCD in Appendix B of these Guidelines.
(C) This subsection shall not apply to projects as defined in Health and Safety Code section 32121(j).
(c) Disposition of contiguous land.
(1) If a local agency seeks to simultaneously dispose of multiple contiguous parcels of surplus land to the same receiving entity, or any entity working in concert with another receiving entity, such that it would reduce the capacity of individual parcels to support at least ten housing units, the applicable affordability covenant must be applied such that the amount of affordable housing required is based on the aggregate capacity of the contiguous parcels.
(2) If the surplus land consists of multiple contiguous parcels or is one parcel that will be subdivided into multiple contiguous parcels, the land can be treated as one parcel by a master developer for the purpose of applying the applicable affordability covenant. (d) Payment Period for Surplus Land Disposed of in Contract of Sale or Sale by Trust Deed. (1) If surplus land is disposed of for housing for persons and families of low and moderate income, the payment period shall not exceed the term that the land is required to be used for low- or moderate-income housing. (2) If surplus land is disposed of for park or recreation purposes, for open-space purposes, or for school purposes, the local agency may provide for a payment period of up to 20 years.

31 Note: Authority cited: Government Code section 54230, subdivision (c)(2), section 54230.5, subdivision (b)(2)(D). Reference cited: Government Code section 54221, section 54222, section 54222, subdivision (f), section 54222.5, section 54223, section 54225, section 54226, section 54227, section 54233; Health and Safety Code section 32121.

32 ARTICLE III. REQUIREMENTS TO BE PLACED ON SURPLUS LAND FOR AFFORDABLE

HOUSING
Section 300. Requirements When an Entity Proposes to Use the Surplus Land for Developing Affordable Housing
(a) An entity proposing to use the surplus land for affordable housing shall agree to make no less than 25 percent of the total number of units developed on the parcels as affordable housing pursuant to Section 102(a) of these Guidelines. The entity shall comply with the following additional requirements:
(1) Rental units shall remain at an affordable housing cost to, and occupied by, lowerincome households for a period of at least 55 years and 50 years for housing located on tribal trust lands.
(2) Ownership units shall remain at an affordable housing cost to, and occupied by, lower-income households for a period of at least 45 years and 50 years for housing located on tribal trust lands. The initial occupants of all affordable ownership units on the property shall be lower-income households and the units shall be subject to an equity sharing agreement consistent with Health and SafetyCode section 65915(c)(2). Any subsequent occupants shall also be lower-income households, if necessary for the unit to remain occupied by lower-income households for at least 45 years and at least 50 years for housing located on tribal trust lands. (3) The affordable residential units required under the covenant described in subdivision (b) below must be developed prior to or at substantially the same time as the unrestricted units and non-residential portion of the development. If the development occurs in phases, the affordability requirement should be met in each phase. (b) The requirements set out in subdivision (a) above shall be contained in a covenant or restriction recorded against the surplus land at the time of sale, which by its express terms shall run with the land and shall be enforceable by any of the following parties, against any owner who violates the covenant or restriction and each successor in interest who continues the violation:
(1) The local agency that disposed of the property.
(2) Any resident of an affordable ownership or rental unit described in subdivision (a). (3) A resident’s association with members who reside in units described in subdivision (a).
(4) A former resident of a unit described in subdivision (a) who last resided in thatunit. (5) An applicant seeking to enforce the covenants or restrictions for a particular unit, ownership or rental as described in subdivision (a), if the applicant conforms to all of the following:
(A) Is of low or moderate income, as defined in section 50093 of the Health and

33 Safety Code;
(B) Is able and willing to occupy that particular unit; and (C) Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing Government Code section 54222.5. (6) A person on an affordable housing waiting list who is of low or moderate income, as defined in section 50093 of the Health and Safety Code, and who is able andwilling to occupy a unit subject to this provision of the Guidelines. (c) A local agency shall provide a draft copy of any restrictions to be recorded against the surplus land to HCD as an attachment to the form prescribed by HCD in Appendix B.

Note: Authority cited: Government Code section 54230, subdivision (c), section 54230.5, subdivision (b)(2)(D). Reference cited: Government Code section 54222.5, section 54233; Health and Safety Code section 50093, section 65915.

34 ARTICLE IV. REPORTING REQUIREMENTS
Section 400. Local Agency Reporting Requirements
(a) Pre-Negotiation and Disposal Notice. A local agency must submit an NOA to HCD, all local public entities as defined in Health and Safety Code section 50079 within whose jurisdiction surplus land is located, and all interested housing sponsors that have provided notice to HCD.
(1) Prior to disposing of surplus land or participating in negotiations to dispose of surplus land with a prospective transferee, a written NOA shall be sent to HCD on the form in Appendix A pursuant to Section 201 of these Guidelines. If the NOA includes any local agency conditions or restrictions regarding development, local agencies are advised to send such conditions or restrictions to HCD for review before sending the NOA to the required entities.
(b) Post-Negotiation Notice and Proposed Disposition Summary: A proposed disposition summary must be sent to HCD on Appendix B at the conclusion of negotiations at least 30 days before the disposition of surplus land. Local agencies are only required to fill out the sections of Appendix B that apply to the disposition. Not all sections will apply to every disposition.
(1) Prior to finalizing any agreements or disposing of any surplus land, the local agency shall provide to HCD a copy of the resolution (or other document recording formal action) declaring the property surplus, a description of the NOAs sent, a description of negotiations conducted with any responding entities, including any non-solicited expressions of interest in regard to the disposal of the surplus land, proof of delivery of the NOA to all CalHFA-certified housing sponsors and local public entities, and a draft copy of any restrictions to be recorded against the property pursuant to Government Code sections 54233 or 54233.5, whichever is applicable, on the form prescribed by HCD in Appendix B. A sample covenant/restriction is provided in Appendix C. A local agency shall also provide HCD a copy of any recorded restrictions upon final disposition.
(A) Local agencies are not responsible for contacting housing entities that provided inaccurate or inactive emails or contact information within the CalHFA certified housing sponsors list. Affordable housing entities are responsible for maintaining current contact information. (2) A local agency may submit this information to HCD after it has sent NOAs required by Government Code section 54222 and concluded negotiations with any responding entities. Article V of these Guidelines provides details on HCD’s required review of this information.
(3) If a local agency proposes to dispose of surplus land to an entity that does not have first priority and/or priority pursuant to Government Code section 54227, the local agency is required to provide HCD an adequate written explanation. (c) A local agency may submit disposition documents identified in Section 400(b)(1) of these Guidelines to HCD any time after the 60-day NOA period or, if applicable, the 90-day good

35 faith negotiation period. In cases where a local agency is seeking to dispose of surplus land, the local agency is required to submit complete disposition documentation to HCD and receive a Findings Letter from HCD only once, regardless of when a final disposition occurs.
(d) A local agency that is a city, county, or city and county shall submit an APR pursuant to Government Code section 65400 including the following information:
(1) A central inventory of all surplus land and all lands as of December 31 in excess of the local agency’s foreseeable needs, if any, identified pursuant to GovernmentCode section 50569. Beginning in 2021, this inventory is to be submitted to HCD by April 1 of each year. This inventory will become part of the APR as Table H. Please reference section 601 for web links which detail APR and housing element requirements.
(2) Jurisdiction-owned sites identified in the housing element sites inventory subsequently disposed of by the jurisdiction in Table G of the housing element APR. (e) Notice of Exemption Determination: A local agency that determines that property is exempt from the SLA shall support such a determination with written findings and shall provide a copy of the written determination to HCD at least 30 days prior to disposition. (1) A local agency must provide HCD with a copy of the resolution (or other document recording formal action) declaring the property exempt surplus land and written findings supporting such a declaration.
(2) A local agency must provide written findings that describe which exemption applies to the surplus land and how the surplus land meets the requirements of that exemption. Additional documentation may be necessary to support those written findings.
(3) Local agencies declaring land identified in Government Code section 54221(f)(1)(A), (B), (E), (K), (L), or (Q) as exempt surplus land pursuant to Government Code 54221(b)(4) must do the following: The notice must include a citation to the exemption (e.g., Government Code section 54221(f)(1)(A) for an affordable housing project), a contact name and email for public comments, and findings/reasons the land meets the exemption. HCD will accept online or newspaper publishing of the notice with evidence it was published and made available for 30 days (daily publication is not necessary). For newspaper publication, HCD will accept a notice published in a newspaper of general circulation in the local agency’s area. For online publication, the notice must be available for the full 30 days, at minimum. (4) Local agencies are encouraged to notify HCD via the Surplus Lands Portal prior to having the resolution approved in order to clarify whether land should be declared “surplus land” or “exempt surplus land.” HCD requires at least 30 days to complete the review.

Note: Authority cited: Government Code section 54230, subdivision (c), section 54230.5, subdivision (b)(2)(D). Reference cited: Government Code section 50569, section 54221, section 54222, section 54230.5, section 54233, section 54233.5, section 65400.

36 ARTICLE V. PERFORMANCE MONITORING AND PENALTIES
Section 500. HCD Monitoring, Recording, and Reporting
(a) Initiation of Monitoring. Beginning on January 1, 2021, HCD shall initiate monitoring of local agency compliance with certain requirements imposed by the SLA. (b) Educational Materials and Technical Assistance. To assist agencies with SLA compliance, HCD will from time to time make available educational resources and materials regarding the SLA and these Guidelines to local agencies and the public. Local agencies may request technical assistance via the Surplus Lands Portal.
(c) HCD’s Findings. HCD shall review the information and documents submitted by a local agency pursuant to Section 400 of these Guidelines. HCD shall consider and make findings as to whether the local agency’s proposed sale or lease of the land will violate the SLA, including these Guidelines.
(1) If HCD determines that the proposed sale or lease will violate the SLA, HCD shall issue a Findings Letter that contains written findings supporting HCD’s determination. HCD shall send the Findings Letter to the local agency within 30 days of receipt of the local agency’s submittal.
(A) HCD’s 30-day response period will begin to run when HCD receives all the required documents and information listed in Section 400 of these Guidelines.

HCD will immediately, and not more than 30 days after receipt of the required documents and information, notify the local agency in writing if HCD determines any required documents or information necessary for HCD’s findings are missing.
(d) Response to HCD’s Findings. The local agency shall consider HCD’s written findings made in the Findings Letter pursuant to subdivision (c) and, within 60 days of receiving the Findings Letter, do one of the following:
(1) Correct any issues identified by HCD or explain how the local agency will correct issues identified by HCD.
(2) Provide written findings explaining the reason(s) the local agency’s process for disposing of surplus land complies with the SLA.
(e) HCD’s Final Determination. HCD shall evaluate any written findings, corrections, or proposals to correct provided by the local agency pursuant to subdivision (d) and provide the local agency with a Determination Letter or a Notice of Violation. (1) Determination Letter. If HCD finds that the local agency has corrected all issues, or if HCD concurs that the local agency’s process for disposing of surplus land complied with the SLA, HCD shall notify the local agency of its determination in a Determination Letter.
(2) Notice of Violation. If HCD finds that the local agency has not corrected all issues, or if HCD finds that the local agency’s process for disposing of surplus land did not

37 comply with the SLA, HCD shall notify the local agency in a Notice of Violation, and may notify the Attorney General, that the local agency is in violation of the SLA. (A) If a local agency receives a Notice of Violation, the local agency must hold an open public meeting to review the Notice of Violation. In addition to all legally required public meeting noticing requirements, the local agency must also post the public notice to the agency’s website (if applicable), post the notice in a conspicuous public place in the local agency’s office, and send the public notice to HCD via the Surplus Land Act Portal no later than the time of posting required by the Brown Act (commencing with Government Code section 54950). A local agency is not required to disclose information conducted during closed sessions at this meeting.
(B) A local agency is prohibited from finalizing the disposition of surplus land subject to a Notice of Violation until an open, public meeting is held pursuant to this Section.
(C) A local agency is exempt from subdivision (e)(2)(A) and (B) of this Section if the agency ceases the disposal of surplus land and informs HCD they have done so. If a local agency resumes the existing disposition of land at a later date, all the provisions of subdivision (e)(2)(A) and (B) of this Section apply. (3) County of Orange and the Cities within the County of Orange—Additional Requirements. For the County of Orange or any city within the County of Orange, the following requirements apply in addition to the requirements described in subdivisions (c)-(e)(2):
(A) HCD shall make its Final Determination within 30 days of receiving the local agency’s response to HCD’s Findings Letter described in subdivision (d). (B) If, pursuant to subdivisions (c) or (e), HCD issues a Findings Letter or Notice of Violation determining that the proposed disposition of surplus land will violate the SLA, the local agency shall not dispose of the surplus land until it has received a Determination Letter pursuant to subdivision (e)(1).

Note: Authority cited: Government Code section 54230, subdivision (c), section 54230.5, subdivision (b)(2)(D). Reference cited: Government Code section 54230.5.

Section 501. Penalties
(a) HCD may seek to enforce the SLA and pursue all applicable legal and equitable remedies consistent with Government Code section 54230.6, including, but not limited to, injunctive or declaratory relief, if a local agency disposes of land, or attempts to dispose of land, in violation of the SLA.
(b) Local agency’s violation of surplus land disposition requirements; penalties. (1) If, after receiving a Findings Letter or a Notice of Violation, as described in Section 500 of these Guidelines, a local agency disposes of surplus land without correcting all violations identified in the Findings Letter or Notice of Violation, the local agency

38 is liable for a penalty of 30 percent of the applicable disposition value of the land disposed of in violation of the SLA, and 50 percent of the applicable disposition value for each subsequent violation.
(A) These penalties shall not apply to clerical errors or violations of the SLA that do not impact the availability, priority, or construction of affordable housing (e.g., the amount of affordable housing provided) or the ultimate disposition of the land in compliance with the SLA. However, failure to issue an NOA, to notice the required entities, to provide at least 90 days of good faith negotiations, or to provide a recorded covenant to HCD may impact the availability, priority, or construction of affordable housing or the ultimate disposition of the land in compliance with the SLA. Any violations of the SLA that limit the opportunity of affordable housing entities to purchase nonexempt surplus land are not exempt from the penalties established in Government Code section 54230.5.
(B) For the purposes of this section, “applicable disposition value” means:
(i) In the case of a sale, the greater of the final sale price of the land or the fair market value of the surplus land at the time of sale, as determined by an independent appraisal of the surplus land sold in violation of the SLA.

Appraised value should be determined by an independent, third-party appraisal prepared by a Member Appraisal Institute qualified appraiser and charged to the local agency no less than 60 days after receipt of a Notice of Violation.
(ii) In the case of a lease, the discounted net present value of the fair market value of the lease as of the date the lease was entered into, as determined by an independent appraisal of the lease of surplus land in violation of the SLA. The discounted net present value should be determined by an independent, third-party appraisal prepared by a Member Appraisal Institute qualified appraiser and charged to the local agency no less than 60 days after receipt of a Notice of Violation. (2) The penalty shall be deposited into a local housing trust fund, except that the local agency may elect to instead deposit the penalty funds into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund. (A) The penalty shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Asset Funds, funds dedicated to housing for very low-, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds.
(B) The local agency shall commit and expend the penalty funds within five years of deposit into the local housing trust fund for the sole purpose of financing newly constructed housing units that are affordable to extremely low-, very low-, or low-income households.
(i) If the penalty funds deposited into the local housing trust fund have not

39 been expended within five years after deposit, the funds shall revert to the state and be deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Low Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low-, very low-, or lowincome households. (C) Expenditure of any penalty funds deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this section shall be subject to appropriation by the Legislature.
(3) The local agency may appeal the penalty assessment to HCD’s Director by submitting a written appeal to the Director. The written appeal shall be limited to a statement of relevant facts, arguments, and evidence demonstrating the alleged error of law, procedure, or fact upon which the appealis based. Penalties are mandatory in the absence of such error and cannot be waived or modified for grounds not stated in the SLA.
(4) Once the written appeal is submitted to the Director, HCD may request additional information or materials from the local agency for consideration. Appeals are to be submitted to the Director at the following address:

California Department of Housing and Community Development Division of Housing Policy Development
651 Bannon Street, Suite 400
Sacramento, CA 95811
(5) The Director will accept appeals delivered through a carrier service such as the U.S.

Postal Service, UPS, FedEx, or other carrier services that provide date stamp verification of delivery. Deliveries must be received during HCD’s weekday(non-state holiday) business hours of 9:00 a.m. to 5:00 p.m. Pacific Standard Time. (6) Appeals must be received by the Director no later than thirty (30) business days from the date of HCD’s assessment of the penalty.
(7) The Director shall render a written decision on the appeal within forty-five (45) business days after notice and hearing.
(8) The Director’s decision shall be HCD’s final decision. (c) A local agency that sells or leases surplus land without complying with Sections 200(a), 201, 202, 300, 400(a), and 400(b) of these Guidelines violates the SLA.

(d) HCD may take action pursuant to Government Code section 65585.1 if a city, county, or city and county violates the SLA.

Note: Authority cited: Government Code section 54230, subdivision (c), section 54230.5, subdivision (b)(2)(D). Reference cited: Government Code section 6250 et seq., section 54222, section 54230.5, section 65589.5.

40 Section 502. Private Enforcement
(a) A public or private entity identified in Government Code section 54222, or a person who would have been eligible to apply for residency in any affordable housing developed, or a housing organization as defined in Government Code section 65589.5, or any beneficially interested person or entity, may bring an action toenforce Government Code section 54230.5.
(b) A public or private entity seeking to enforce Government Code section 54230.5 shall send a Notice of Alleged Violation to the local agency and provide a copy to HCD. The local agency has 60 days from the date of the Notice of Alleged Violation to cure or correct before the public or private entity may take further action, unless the local agency disposes of the land before curing or correcting the alleged violation, or HCD notifies the local agency in a Determination Letter that it is not in violation of the SLA in less than 60 days of receipt of the Notice of Alleged Violation.
(c) If HCD has not issued a Findings Letter to the local agency, HCD shall review the Notice of Alleged Violation submitted by the public or private entity and take action as appropriate.

HCD may send the local agency a Notice of Violation, send a Determination Letter notifying the local agency it is not in violation of the SLA, or decline to take any action on the Notice of Alleged Violation.
(1) If HCD sends the local agency a Notice of Violation, HCD shall also provide a copy of the Notice of Violation to the public or private entity that submitted the Notice of Alleged Violation. The local agency shall have 60 days from receipt of HCD’s Notice of Violation to cure or correct pursuant to Section 500 of these Guidelines before HCD or an entity identified in Section 502(a) of these Guidelines may take further action to enforce Government Code section 54230.5. Local agencies receiving a Notice of Violation from HCD must also hold an open, public meeting pursuant to Section 500(e)(2)(A) of these Guidelines.

(2) If HCD sends a Determination Letter notifying the local agency that it is not in violation of the SLA, HCD shall also send a copy of the Determination Letter to the public or private entity.

Note: Authority cited: Government Code section 54230, subdivision (c), section 54230.5, subdivision (b)(2)(D). Reference cited: Government Code section 54222, section 54230.5, section 65589.5.

41 Appendix A – Notice of Availability Forms
Notice of Availability Cover Letter:
https://www.hcd.ca.gov/community-development/disaster-recoveryprograms/docs/1.20.21.LS.SLA_TA_NoticeAvailability_CoverLetter.docx Notice of Availability Property Description:
https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fwww.hcd.ca.gov%2Fsites% 2Fdefault%2Ffiles%2Fdocs%2Fplanning-and-community%2Fsla-ta-notice-availability-propertydescription.xlsx&wdOrigin=BROWSELINK

42 Appendix B – Description of Disposition Form
https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/disposition-descriptiontemplate.xlsx

43 Appendix C – Sample Covenant/Restriction
For use by a local agency (including transit districts) that is not a district (Government Code section 54233) - https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/sla-tasample-covenant-restriction.docx For use by a non-transit district (Government Code section 54233.5) - https://www.hcd.ca.gov/ sites/default/files/docs/planning-and-community/sla-ta-sample-covenant-restriction-district.docx

44 Appendix D – HCD Survey to Indicate Interest in Surplus Land Housing sponsors, as defined by section 50074 of the Health and Safety Code, may notify HCD of their interest in surplus land pursuant to section Government Code section 54222(a)(1) using the survey at the link below:
https://calhcd.servicenow.com/csp?id=csm_sc_cat_item_public&sys_id=e2a1239747df355062339362736d4335

Justin Tucker
Assistant City Manager
January 7th, 2025

Pursue a Surplus Land Act
exemption and Approve
the First Amendment
Professional Services
Agreement with SVA
Architects
- ORInitiate the Surplus Land
Act process

3 The City Council:
• Requested additional information related to the proposed design team's qualifications to design this project.
• Requested additional information on the Surplus Land Act as it relates to this redevelopment project.
• Provided clarification on the planned project's residential component, including the maximum number of residential
units and the strong preference for residential units to be ‘for sale’ rather than corporate rentals.

• Designed dozens of completed mixed-use
and multi-family projects
• Extensive public sector work
• Proven track record for delivering
projects on time and budget
• Understand Corona's goals with the North
Mall and "Corona Revival" architecture

7 • Architectural
modules consistent
with original parcel
dimensions for 6th
and Main Street
properties
• 25'-50'-75' modules

Downtown Revitalization Project Plan
Continue acquiring properties and redevelop the
North Mall into a thriving, vibrant, mixed-use
development with retail, residential, and commercial
components.

Timeline
92%
Completion
Acquisition Design RFP Construction
2024 2025 2026 2027 2028 2029
City
Owned
City Owned
City Owned
City
Owned
City
Owned
City Owned
City
Owned City Owned
City
Owned
City
Owned
In Escrow

14 1. Council declares property ‘Surplus’

2. City files Notice of Availability (NOA) with CA Department of Housing and Community Development (HCD)

3. Good faith negotiations with Affordable Housing and other qualified developers

1. Preference given to largest number of housing units proposed at deepest affordability level (min 25% of units affordable)

2. City cannot demand more than market price for property

4. City provides documentation of process and (no)agreement to HCD

5. HCD makes a determination on compliance with process and outcome

15 Council declares
property
‘surplus’
Notice of
Availability
(NOA)
to HCD
Negotiate with
Qualified
Affordable
Housing
Developers
HCD review
(process &
outcome)
Possible:

RFP for
Developer
Development
Agreement
Council declares
property ‘exempt
surplus’
HCD review
(qualified
exemption)
RFP for
Developer Development
Agreement
‘Surplus’
‘Exempt Surplus’

16 Category # Summary
Deadline 6 Agreement prior to 2020
Mixed use 5 100% affordable, size & units, rural, transportation agency Trust 2 From state to local, into a Community Land Trust for housing Affordable housing Land Transferred for Affordable Housing Government use Agency Use (NOT commercial, retail, entertainment, or office) Small parcel Most < 0.5 acre parcels
Transfer 3 Agency use, other Agency or Tribe, vacated street land School 2 District lands
Misc 4 Airport land, Military base, Housing restricted, Special services

17 Exemption - Mixed Use Development of 300+ units with at least 25% of units as affordable
“A mixed-use development on surplus land that is more than one acre but less than 10 acres in area. The land may be a single parcel or multiple adjacent or non-adjacent parcels. The development must include not less than 300 residential units and restrict at least 25 percent of the residential units to lower-income households as affordable housing pursuant to section 102(a) of these Guidelines. The requirements of Section 102(a) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who 15 violates the covenant or restriction and each successor in interest who continues the violation.”

18 Exemption - Mixed Use Development with 100% Affordability:
“A housing development (including mixed-use developments with ancillary commercial ground floor uses) that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower-income households as affordable housing pursuant to section 102(a) of these Guidelines. In no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located. The requirements of Section 102(a) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.”
Surplus Lands Act Guidelines, Section 103(c)7(A) Page 477 of 497 • Proceeding with entitlement without HCD determination could be a waste of money
• Entitled project would be an option for a building, but not required • A project with more housing units or higher offer (at market price) could outcompete the entitled project • Market viability: Cannot negotiate with building partner until determination from HCD
• Can have discussions with builders if pursuing an exemption • Two ‘mixed-use’ exemptions could apply to site:
• 300 units OR 100% affordable housing
• Community land trust for housing, not mixed use
• Non-profit controls site
• HCD will review proposals before a final determination

All Retail
(Developer Funded)
Pros
 All Retail!
Cons
 SLA. Still requires City
to go through SLA!
 Risk of All Housing.

SLA means all housing
is potential outcome.
 Commercially
Unviable. No one will
is building 100% brick
and mortar retail in
todays market – both
for capital and due to
long term viability.
 High Risk. Does it
match the market? 1
All Retail
(City Funded)
Pros
 All Retail!
Cons
 SLA. Still requires City
to go through SLA (for
any leases longer than
15 years).
 Risk of All Housing.

SLA means all housing
is potential outcome.
 Commercially
Unviable. Serious
concerns about long-
term viability.
 High Risk. Does it
match the market?
 Cost-prohibitive. 2
Mixed Use
(SLA Exemption)
(100% affordable)
Pros
 Affordable Housing
Cons
 Market Reality.

Affordable housing
doesn’t pay for retail
 Rentals. Not likely to
yield for sale units
 Not Vibrant. All
affordable doesn’t
create vibrant retail
destination
 Spending Power. All
affordable housing
yields lower spending
power to support
downtown businesses
SLA Process
Pros
 Doesn’t require 300
minimum
Cons
 High risk: Potential for
all residential & no
retail
 Risk of Losing Control.

Less/no control of site
 Rentals. Can’t dictate
sale or lease option
 Stuck. Cannot reject a
market value proposal
we don’t like
 More Housing. May
end up with more than
300 units
 Delays revitalization
Mixed Use
(SLA Exemption)
(300 units)
Pros
 Maximizes Retail
Offerings
 Outreach: Can work
with builders to
validate concepts
while we design.
 No risk of losing
control to housing
only
 Council Driven.

Council drives design
and form via DDA
 Expedites
revitalization
Cons
 300 units (if housing
seen as undesirable) 3
45

21 • Approve the First Amendment Professional Services Agreement with SVA Architects in the amount of$1,482,150 for Architectural Services for the North Mall Development. • Authorize the City Manager, or his designee, to execute the First Amendment Professional Services Agreement with SVA Architects in the amount of $1,482,150 including any nonsubstantive extensions, change order, and amendments to 10% of the agreement amount, as authorized in Corona Municipal Code Section 3.08.070(I). • Authorize the City Manager, or his designee, to issue a change order to the on-call purchase order with SVA Architects, (PO B260001) in the amount of $1,482,150. • Authorize the City Manager, or his designee, to approve the appropriation of funds in order to execute the Agreement between the City of Corona and SVA Architectural Services. • Authorize an appropriation in the amount of $982,150 from the Measure X Fund 120 to the North Corona Mall Acquisition/Improvements, Operating and Maintenance Project No.78390.

22 Option A
Start Entitlement
and Pursue SLA Exemption
Option C
Start Entitlement and
Surplus Land Act Process
Option B
Do Not Entitle and Start
Surplus Land Act Process
Not
Recommended
Recommended High Risk

Pursue a Surplus Land Act
exemption and Approve
the First Amendment
Professional Services
Agreement with SVA
Architects
- ORInitiate the Surplus Land
Act process

DATE: 01/07/2026
TO: Honorable Mayor and City Council Members
FROM: Economic Development Department
2026-19

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

Nonconforming Uses in Downtown Corona
EXECUTIVE SUMMARY:

This staff report asks the City Council to provide additional direction for nonconforming uses in Downtown Corona.

RECOMMENDED ACTION:

That the City Council provide direction to staff on next steps and community engagement related to nonconforming uses in the Downtown Specific Plan boundaries.

BACKGROUND & HISTORY:

On November 19, 2025, following discussion of an amortization process the City Council directed staff to “pause for six months and then form an ad hoc that includes the chamber and our downtown businesses to talk about forming a working group on how we go forward with improving the look and the feel of Sixth Street, embracing our past, and exploring the options.”
At the December 3, 2025, City Council meeting, the City Council asked that this item be re-agendized to provide additional direction to staff related to engagement with the business community for this issue.

ANALYSIS:

Staff will present this item to receive further direction from the City Council on nonconforming uses.

FINANCIAL IMPACT:

There is no financial impact from this discussion.

PREPARED BY: JOEL BELDING, ECONOMIC DEVELOPMENT DIRECTOR REVIEWED BY: JUSTIN TUCKER, ASSISTANT CITY MANAGER
ATTACHMENTS: NONE

DATE: 01/07/2026
TO: Honorable City Council Members
FROM: Mayor Jacque Casillas
2026-13

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

APPOINTMENTS TO REGIONAL BOARDS AND COMMISSIONS
EXECUTIVE SUMMARY:

Members of the Corona City Council, along with elected officials from other Cities and County Boards, participate on various regional boards and commissions.

Representations on the Regional Commissions are very important to the City of Corona.

It allows local elected officials to carry the concerns of Corona residents to a broader audience. Various issues are addressed including transportation, legislation, and habitat protection. The schedules for the regional board meetings are established by their various organizations. Council Members will provide oral updates on information pertaining to the regional groups at future City Council meetings throughout the year. I will announce my appointments at the January 7, 2026 Council meeting for the following Regional Boards and Commissions that will be established for 2026:
• Riverside County Transportation Commission (RCTC)
• Riverside Transit Agency (RTA)
• Riverside County Habitat Conservation Agency (RCHCA)

• Western Riverside Council of Governments (WRCOG)
• Western Riverside County Regional Conservation Authority (RCA) • Western Riverside County Regional Wastewater Authority (WRCRWA) • Southern California Association of Governments (SCAG)

DATE: 01/07/2026
TO: Honorable Mayor and City Council Members
FROM: City Manager’s Office – City Clerk
2026-05

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

RESOLUTION APPROVING THE CITY COUNCIL MEETING SCHEDULE FOR CALENDAR YEAR 2026
EXECUTIVE SUMMARY:

This staff report asks City Council to approve the regular meeting start time for the 2026 calendar year, establishing the official schedule for City Council meetings in accordance with the requirements of the Corona Municipal Code. This action ensures that the City’s meeting schedule is set in advance, providing clarity and predictability for Council members, staff, and the public, and supports ongoing efforts to maintain transparent and accessible local governance.

RECOMMENDED ACTION:

That the City Council adopt Resolution No. 2026-001, approving the City Council meeting schedule for calendar year 2026.

BACKGROUND & HISTORY:

On February 5, 2025, staff presented a report in response to a request from former Mayor Steiner to consider adjusting the regular meeting start time for City Council meetings. The staff report outlined a proposal to change the start time from 6:30 p.m. to 6:00 p.m., with the intent of improving accessibility and public participation by shifting more agenda items to evening sessions and reducing reliance on afternoon study sessions. The report also recommended amending Corona Municipal Code (CMC) Section 2.08.010 to allow the

City Council to set its regular meeting start times by resolution, thereby providing greater flexibility for future adjustments. These actions established the current framework for designating regular meeting start times and schedules by annual resolution, as reflected in the procedures now being applied for the 2026 calendar year.

ANALYSIS:

In preparing the proposed schedule for 2026, staff reviewed the current meeting structure and start time. Based on this review, staff is recommending that the regular meeting start time for the 2026 calendar year remain at 6:00 p.m.

The 6:00 p.m. start time has provided a consistent and accessible schedule for both Council members and the public, supporting participation from a broad cross-section of the community. Staff have not identified any significant operational or community concerns associated with the current start time. As such, maintaining the 6:00 p.m. start time is expected to continue to meet the City’s objectives for transparency, public engagement, and community participation.

The proposed resolution for 2026 reflects the City’s ongoing commitment to providing predictable and inclusive meetings. Exhibit 2 presents the proposed 2026 City Council meeting schedule for the Council’s review and approval. Consistent with past practice, staff is recommending going dark for the second meeting in July.

FINANCIAL IMPACT:

There is no financial impact associated with this recommended action.

ENVIRONMENTAL ANALYSIS:

This action is exempt under Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may substantially affect the environment, the activity is not subject to CEQA. This action seeks council approval to approve the start time of regular council meetings and thus has no potential for having a significant effect on the environment.

PREPARED BY: SYLVIA EDWARDS, CITY CLERK
REVIEWED BY: JUSTIN TUCKER, ASSISTANT CITY MANAGER
ATTACHMENTS:

1. Exhibit 1 – Resolution No. 2026-001

2. Exhibit 2 – 2026 City Council Meeting Schedule

RESOLUTION NO. 2026-001

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CORONA, CALIFORNIA, APPROVING THE CITY COUNCIL
MEETING SCHEDULE FOR CALENDAR YEAR 2026
WHEREAS, The Ralph M. Brown Act (“The Brown Act”), specifically Government Code Section 54954 (Rules for Conduct of Business: Time and Place For Holding Regular Meetings), provides that the City Council shall provide the time and place for holding its regular meetings; and
WHEREAS, The Brown Act allows the City Council to take such action by ordinance, resolution, bylaw, or other authorized action; and WHEREAS, Corona Municipal Code (“CMC”) Section 2.08.010 (Meetings - Regular - Time, Place) of Chapter 2.08 (City Council) now provides that the regular meeting start times shall be designated each calendar year by a resolution duly adopted by the City Council before the start of the calendar year; and
WHEREAS, CMC Section 2.08.010 also provides that if the City Council wishes to change the start time for any particular regular meeting to an earlier time, it shall do so by a resolution duly adopted at least fourteen (14) calendar days in advance of such meeting; and WHEREAS, by this Resolution the City Council would like to establish its regular meeting start times for the remainder of calendar year 2026; and WHEREAS, by this Resolution the City Council would also like to announce the proposed dates of any special meetings that - at this time - it is aware that it may hold.

Notwithstanding the foregoing, the dates and/or times of any special meeting(s) announced by this Resolution are subject to change, since the City Council retains its authority to call any special meeting in compliance with The Brown Act.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA, AS FOLLOWS:

SECTION 1. The City Council hereby adopts the 2026 City Council Meeting Schedule (Regular & Special Meetings) attached hereto as Exhibit “A” and incorporated herein by reference.

2 SECTION 2. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 7th day of January 2026.

Mayor of the City of Corona, California
ATTEST:
___________________________________
City Clerk of the City of Corona, California

CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly passed and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 7
th day of January 2026, by
the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 7
th day of January 2026.

City Clerk of the City of Corona, California
3

EXHIBIT “A”
2026

CITY COUNCIL MEETING SCHEDULE
[SEE ATTACHED 2 PAGES]
4

5 2026

CITY COUNCIL MEETING SCHEDULE

REGULAR MEETINGS
(FIRST AND THIRD WEDNESDAYS)
DATE EARLIEST START TIMES

CLOSED SESSION OPEN SESSION
January 7, 2026 4:00 PM 6:00 PM
January 21, 2026 4:00 PM 6:00 PM
February 4, 2026 4:00 PM 6:00 PM
February 18, 2026 4:00 PM 6:00 PM
March 4, 2026 4:00 PM 6:00 PM
March 18, 2026 4:00 PM 6:00 PM
April 1, 2026 4:00 PM 6:00 PM
April 15, 2026 4:00 PM 6:00 PM
May 6, 2026 4:00 PM 6:00 PM
May 20, 2026 4:00 PM 6:00 PM
June 3, 2026 4:00 PM 6:00 PM
June 17, 2026 4:00 PM 6:00 PM
July 1, 2026 4:00 PM 6:00 PM
July 15, 2026 Seek Council Direction
August 5, 2026 4:00 PM 6:00 PM
August 19, 2026 4:00 PM 6:00 PM
September 2, 2026 4:00 PM 6:00 PM
September 16, 2026 4:00 PM 6:00 PM
October 7, 2026 4:00 PM 6:00 PM
October 21, 2026 4:00 PM 6:00 PM
November 4, 2026 4:00 PM 6:00 PM
November 18, 2026 4:00 PM 6:00 PM
December 2, 2026 4:00 PM 6:00 PM
December 16, 2026 Seek Council Direction
 NOTE: THE POSTED AGENDA MAY INCLUDE A LATER START TIME.

6 2026

CITY COUNCIL MEETING SCHEDULE

SPECIAL MEETINGS
(AS CALLED PURSUANT TO THE BROWN ACT)

TYPE DATE START TIME
Spring Financial Workshop April 9, 2026 TBD
Budget Workshop May 14, 2026 TBD
All Others TBD TBD
 NOTE: DATES & TIMES SUBJECT TO CHANGE. MEETINGS ARE CALLED & AGENDAS POSTED IN COMPLIANCE WITH THE RALPH M. BROWN ACT.

2026

CITY COUNCIL REGULAR MEETING SCHEDULE
(FIRST AND THIRD WEDNESDAYS)

DATE CLOSED SESSION
Start Time

OPEN SESSION
Start Time
January 7, 2026 4:00 PM* 6:00 PM
January 21, 2026 4:00 PM* 6:00 PM
February 4, 2026 4:00 PM* 6:00 PM
February 18, 2026 4:00 PM* 6:00 PM
March 4, 2026 4:00 PM* 6:00 PM
March 18, 2026 4:00 PM* 6:00 PM
April 1, 2026 4:00 PM* 6:00 PM
April 15, 2026 4:00 PM* 6:00 PM
May 6, 2026 4:00 PM* 6:00 PM
May 20, 2026 4:00 PM* 6:00 PM
June 3, 2026 4:00 PM* 6:00 PM
June 17, 2026 4:00 PM* 6:00 PM
July 1, 2026 4:00 PM* 6:00 PM
July 15, 2026 Seek Council Direction
August 5, 2026 4:00 PM* 6:00 PM
August 19, 2026 4:00 PM* 6:00 PM
September 2, 2026 4:00 PM* 6:00 PM
September 16, 2026 4:00 PM* 6:00 PM
October 7, 2026 4:00 PM* 6:00 PM
October 21, 2026 4:00 PM* 6:00 PM
November 4, 2026 4:00 PM* 6:00 PM
November 18, 2026 4:00 PM* 6:00 PM
December 2, 2026 4:00 PM* 6:00 PM
December 16, 2026 Seek Council Direction
*NOTE: THE POSTED AGENDA MAY INCLUDE A LATER START TIME.

2026

CITY COUNCIL SPECIAL MEETING SCHEDULE
(AS CALLED PURSUANT TO THE BROWN ACT)

TYPE DATE START TIME
Spring Financial Workshop April 9, 2026 TBD
Budget Workshop May 14, 2026 TBD
All Others TBD TBD
 NOTE: DATES & TIMES SUBJECT TO CHANGE. MEETINGS ARE CALLED & AGENDAS POSTED IN COMPLIANCE WITH THE RALPH M. BROWN ACT.

DATE: 01/07/2026
TO: Honorable City Council Members
FROM: Mayor Casillas
2026-16

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

REAPPOINTMENT TO THE NORTHWEST MOSQUITO AND VECTOR CONTROL

BOARD OF TRUSTEES
RECOMMENDED ACTION:

That the City Council approve the appointment of Nancy Jimenez Hernandez to the Northwest Mosquito and Vector Control Board of Trustees.