Matrix of Surplus Land Act Exemptions
The following matrix outlines the exemptions to the Surplus Land Act requirements.
In particular, Government Code section 54222 contains various definitions of what constitutes “surplus land.” If land is not “exempt surplus land,” the agency, prior to disposing of it, must notify certain agencies of the property’s availability and provide them an opportunity to negotiate in good faith. There is no requirement that the agency reach agreement with the responders. But, if it does not and later sells the property and more than 10 units are built on it, at least 15% of the units must be affordable to “lower income” households.
Most exemptions require the agency to adopt a resolution declaring the property after submitting the resolution to HCD for its review. However, SB 747 established a simplified notice and comment process for some of the exemption (designated with “Notice” in the matrix), where the agency simply publishes a notice, notifies the SLA agencies, and accepts public comment. (See Gov. Code, § 54222, subd. (b)(4).) 54222(f)
Exemption
Summary of requirements Process1 Application to 120 E. Cotati (f)(1)(A) • Must comply with Government Code section 37364, which requires:
• 80 percent of the parcel area must be used for housing • 40 percent of the units “shall be affordable to households whose incomes are equal to, or less than, 75 percent of the maximum income of lower income households, and at least half of which shall be affordable to very low income
households.”
• Regulatory agreement must require affordability for “longest feasible time.”
Notice Applicable.
(f)(1)(B) • Less than 0.5 acres
• Not contiguous to public agency owned land used for open space.
Notice Inapplicable. The subject property is
more than 0.5 acres (being
approximately 0.85 acres).
(f)(1)(F) • 100% affordable to “low or moderate income” families. • Ancillary “commercial ground floor uses” allowed.
• At least 75% of the units must be “lower income.”
• 55 year restrictions for rental housing.
• Requirements must be contained in a deed restriction
Resolution Applicable.
(f)(1)(G) • “Open, competitive solicitation process” with SLA agencies (see Gov. Code, § 54222, subd. (a)) invited to participate. • Must be more than 1 and less than 10 acres.
• Must include at least 300 units.
• At least 25% of the units must be “lower income.”
• 55 year restrictions for rental housing.
• Requirements must be contained in a deed restriction
Resolution Inapplicable. Parcel is less than 1
acre.
1 Most exemptions require the agency to adopt a resolution declaring the property after submitting the resolution to HCD for its review. However, SB 747 established a simplified notice and comment process for some of the resolutions (designated with “Notice” in the matrix), where the agency
(f)(1)(H) • 10 or more acres disposed to a single buyer pursuant to an agency adopted plan.
• “Open, competitive solicitation process” with SLA agencies (see Gov. Code, § 54222, subd. (a)) invited to participate. • Must include the greater of 300 units or 10 times the number of acres (not to exceed 10,000).
• 25% of the units must be “lower income households.”
• Rental housing must be restricted for 55 years.
• Requirements must be included in deed restrictions.
Resolution Inapplicable. Parcel is less than 1
acre.
(f)(1)(I) • “Mixed-use” development in which at least 25% of the units are restricted to “lower income households.”
• At least 50% of the total square footage of the new construction must be residential
• Rental housing must be restricted for 55 years.
• Requirements must be included in deed restrictions.
• The development may not be in an “urbanized area.”
Resolution Inapplicable. Cities are considered
“urbanized areas.”
(f)(1)(R) • Land transferred to a land trust that will be used for rental or owner-occupied housing
• Must be used only by “qualified persons” under Revenue and Taxation Code section 214.18(c)(6) (“low or moderate income” for owner-occupied and “low income” for rental).
Resolution Applicable.
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