In the event your agency or company is interested in purchasing the property, you must notify the City in writing within sixty (60) days of the date this notice was sent via certified mail or electronic mail. Notice of your interest in acquiring the property shall be delivered to Monica GallardoMelkesian, Housing Manager, at: City of Los Altos, Development Services Department, 1 N. San Antonio Road, Los Altos, CA 94022. You may also direct your questions to [email protected] or by calling 650-947-2646.
Entities proposing to submit a letter of interest are advised to review the requirements set forth in the Surplus Land Act (Government Code Section 54220-54234).
Sincerely,
Monica Gallardo-Melkesian
Monica Gallardo-Melkesian
Housing Manager
Development Services Department
cc: Nick Zornes, Assistant City Manager of Land Use
Attachment
711
Agenda Item # 6.
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
712
Agenda Item # 6.
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.........................................44 713
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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. 714
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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 715
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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. 716
Agenda Item # 6.
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.
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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.
718
Agenda Item # 6.
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. 719
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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, 720
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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 721
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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:
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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 723
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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, 724
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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 725
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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 726
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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.
727
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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.
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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.
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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 730
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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. 731
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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.
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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).
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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 734
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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. 735
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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:
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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 perse 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 737
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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 738
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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 asdefined by Section 102(a) of these Guidelines.
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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.
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Agenda Item # 6.
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.
741
Agenda Item # 6.
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. 742
Agenda Item # 6.
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 743
Agenda Item # 6.
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.
744
Agenda Item # 6.
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 745
Agenda Item # 6.
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. 746
Agenda Item # 6.
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 747
Agenda Item # 6.
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 748
Agenda Item # 6.
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 749
Agenda Item # 6.
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.
750
Agenda Item # 6.
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.
751
Agenda Item # 6.
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 752
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42 Appendix B – Description of Disposition Form
https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/disposition-descriptiontemplate.xlsx 753
Agenda Item # 6.
43 Appendix C – Sample Covenant/Restriction
https://www.hcd.ca.gov/communitydevelopment/docs/1.20.LS.SLA_TA_SampleCovenantRestriction.docx 754
Agenda Item # 6.
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 755
Agenda Item # 6.
City Council Agenda Report
Meeting Date: August 27, 2024
Prepared By: Nick Zornes
Approved By: Gabriel Engeland
Subject: Declaration of Public Nuisance – 4898 El Camino Real
COUNCIL PRIORITY AREA
☐Business Communities
☐Circulation Safety and Efficiency
☐Environmental Sustainability
☒Housing
☒Neighborhood Safety Infrastructure
☒General Government
RECOMMENDATION
Adopt a Resolution of the City Council of the City of Los Altos declaring the building located at 4898 El Camino Real, Los Altos, CA, 94022, a Public Nuisance Pursuant to Chapter 11.10 of the Los Altos Municipal Code and Directing the City Manager to abate the nuisance.
FISCAL IMPACT
Subsequent action by the City Council will be taken to ratify the contract for demolition in which the fiscal impact will be known.
ENVIRONMENTAL REVIEW
This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (CEQA) and the State CEQA Guidelines. This action is exempt from environmental review pursuant to Section 15321 of the California Environmental Quality Act (CEQA) as this is Enforcement Actions by Regulatory Agencies.
PREVIOUS COUNCIL CONSIDERATION
Not Applicable.
BACKGROUND
The subject site is located at 4898 El Camino Real, Los Altos, CA, 94022, has an existing vacant commercial building onsite. The site was previously entitled for a multi-family housing development in October 2019. The previous Design Review Permit and Conditional Use Permit have since expired, and no valid entitlements exist. The existing structure and site have been unable to maintain the premises and required by the Los Altos Municipal Code, in addition to being unable to secure the property.
756
Agenda Item # 7.
ANALYSIS
Pursuant to Chapter 11.10 of the Los Altos Municipal Code – Nuisance Abatement the subject site has been determined to be a “Public Nuisance”. The city manager shall be the primary city official responsible for the administration and enforcement of this chapter. The city manager shall provide property owners in violation of this chapter with notices as described within the Chapter.
Thereafter, any legal remedies to abate public nuisances shall be pursued by the city manager and the city attorney unless all applicable code violations are corrected.
On April 2, 2024, the City Building Official, and Assistant City Manager were escorted by the Los Altos Police Department onsite at 4898 El Camino Real. The subject site was unsecured and easily open and accessible to any person(s). During the property inspection of the site, it was noticed the building has been stripped of all interior and exterior copper wiring, and significant interior and exterior vandalism has occurred. Significant health and safety concerns were identified throughout the entire building and throughout the property.
On April 8, 2024, the owner of the premises was issued an Order to Abate by the City’s Building Official, Veronica Tinoco. Following the Order to Abate the Building Official and Assistant City Manager were consulted by the owner of the premises ADL 15 LLC/Navneet Aron requesting additional time in addition to the initial sixty (60) calendar days that were granted. Prior to the conclusion of the initial sixty (60) calendar days a one-time extension of thirty (30) calendar days was granted and concluded on July 9, 2024. Since that date no attempt on behalf of the owner has been made to remedy the Public Nuisance as ordered on April 8, 2024.
On August 1, 2024, the City pulled a title report for the subject site and learned that the property is currently delinquent on property taxes.
On August 1, 2024, the owner of the premises and lender on title was issued a Notice of Nuisance Abatement by the Assistant City Manager, Nick Zornes. Following the Notice of Nuisance Abatement the Assistant City Manager was contacted by the lender Arixa Enhanced Income Fund, the property owner of the premises ADL 15 LLC/Navneet Aron has not made contact with the City.
On August 8, 2024, the Assistant City Manager, Nick Zornes had a conference call with the Director of Underwriting from the lender Arixa Enhanced Income Fund. On that call the representative informed the Assistant City Manager that the property was currently in default from the borrower’s lack of payment. The representative further informed the Assistant City Manager that Arixa Enhanced Income Fund was informed of the Order to Abate in April 2024 by the borrower and granted the authorization to the property owner to demolish the building. The representative informed the Assistant City Manager that Arixa Enhanced Income Fund is supportive of the need to demolish and abate the nuisance due to the state of disrepair of the building.
DISCUSSION
The Development Services Department, and Los Altos Police Department have received several calls for service for various suspicious activities in addition to the nuisance issues that exist onsite. 757
Agenda Item # 7.
The Development Services Department – Planning Division has received numerous requests for consultation regarding options for the property from the current property owners without any serious proposal being provided to the city for consideration. The City has received several incomplete proposals, some of which include project plans from other city’s being “reused” as project plans for the site.
ATTACHMENTS
1. Draft Resolution
2. Notice of Nuisance Abatement – August 1, 2024
758
Agenda Item # 7.
1 RESOLUTION NO. 2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS DECLARING THE BUILDING LOCATED AT 4898 EL CAMINO REAL, LOS ALTOS, CA, 94022, A PUBLIC NUISANCE PURSUANT TO CHAPTER 11.10 OF THE LOS
ALTOS MUNICIPAL CODE AND DIRECTING THE CITY MANAGER TO ABATE
THE NUISANCE
WHEREAS, ADL 15 LLC., is the recorded owner of the property located at 4898 El Camino Real, Los Altos, CA, 94022, hereinafter referred to collectively as the “premises”; and WHEREAS, the premises at 4898 El Camino Real consists of a vacant commercial building; and
WHEREAS, the Building Official of the City of Los Altos is authorized by the California Building Codes to enforce all provisions of the Code including authority to inspect any building or structure and order that any such building or structure determined under the California Building Codes to be Unsafe and Unfit for Human Occupancy be declared a public nuisance and order the recorded owner to abate the nuisance conditions by demolition of the unsafe structures and the removal of the junk, trash, debris and weeds on the property; and WHEREAS, inspection of the premises was conducted by the City Building Official, and Assistant City Manager with Police escort on April 2, 2024; and WHEREAS, an Order of Abatement dated April 8, 2024, was issued by the Building Official giving you sixty (60) calendar days and was granted an additional thirty (30) calendar days to abate the nuisance; and
WHEREAS, a Notice of Nuisance Abatement dated August 1, 2024, was issued by the Assistant City Manager giving you ten (10) calendar days to obtain a demolition permit from the Development Services Department, Building Division, or to file an Appeal of their determination with the City Clerk; and
WHEREAS, said Notice of Nuisance Abatement dated August 1, 2024, gave notice that the premises were found to still be Unsafe, and Unfit for Human Occupancy and was determined to be a Public Nuisance; and
WHEREAS, on August 1, 2024, said Notice of Nuisance Abatement dated August 1, 2024, was mailed by certified mail, postage prepaid, return receipt requested to recorded owners, and via electronic mail (email) and the holder of the deed of trust of record, pursuant to Chapter 11.10 of the Los Altos Municipal Code; and
WHEREAS, the owners of said premises have failed to obtain the required demolition permit as required by two (2) separate abatement notices and are now a violation of the Chapter
11.10 of the Los Altos Municipal Code; and
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Los Altos does hereby order:
759
Agenda Item # 7.
2 PLEASE TAKEE FURTHER NOTICE THAT PURSUANT TO RESOLUTION 2024-XX, THE PREMISES HAS BEEN DECLARED A PUBLIC NUISANCE. THE CITY COUNCIL AFFIRMS THE NOTICE DATED AUGUST 1, 2024; AND DIRECTS THE CITY
MANAGER TO ABATE SUCH NUSIANCE BY THE DEMOLITION OF THE BUILDING LOCATED AT 4898 EL CAMINO REAL, LOS ALTOS, CA, 94022.
BE IT FURTHER RESOLVED:
1. The City Manager is hereby directed to obtain the assistance from a qualified license contractor to demolish the premises where the nuisance exists following the Emergency Procurement Procedures as outlined in the City of Los Altos Purchasing Policy; and
2. The City Manager shall keep an itemized account of all expenses and costs incurred by the city in the abatement of the nuisance on the premises; and
3. The City Manager is hereby directed to seek reimbursement from the owner(s) of said premises pursuant to Chapter 11.10 of the Los Altos Municipal Code.
BE IT FURTHER RESOLVED, the City Council of the City of Los Altos does hereby ordain as follows:
SECTION 1. The above recitals are true and correct and are incorporated herein.
SECTION 2. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (CEQA) and the State CEQA Guidelines. This action is exempt from environmental review pursuant to Section 15321 of the California Environmental Quality Act (CEQA) as this is Enforcement Actions by Regulatory Agencies.
SECTION 3. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed.
SECTION 4. This Resolution shall become effective immediately upon its adoption.
I HEREBY CERTIFY that the foregoing is a true and correct copy of a Resolution passed and adopted by the City Council of the City of Los Altos at a meeting thereof on the 27 th day of August
2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________
Jonathan D. Weinberg, MAYOR
Attest:
_____________________________
Melissa Thurman MMC, CITY CLERK
760
Agenda Item # 7.
3 761
Agenda Item # 7.
Development Services Department
1 North San Antonio Road
Los Altos, California 94022-3087
NOTICE OF NUISANCE ABATEMENT
August 1, 2024
ADL 15 LLC.
329 S. San Antonio Road, Suite #4
Los Altos, CA, 94022-3637
RE: 4898 EL CAMINO REAL, LOS ALTOS, CA
To Whom it May Concern,
This letter shall serve as notice and order to abate regarding the vacant commercial building located at 4898 El Camino Real, Los Altos, CA, which you are the owner of record. This is also a follow-up from the April 8, 2024, Order of Abatement for the Demolition of Vacant Commercial Building for the same property. The property has been identified as a significant contributor to public nuisance due to its current condition, which includes unsanitary conditions and serves as a haven for the homeless population.
The unsanitary conditions and presence of homeless individuals within the premises have led to numerous complaints from the community and pose serious health and safety risks. Despite previous notices and warnings and attempts to achieve voluntary compliance for securing the property from transient activity and vandalism, the situation has not improved, necessitating immediate action to alleviate the public nuisance.
In accordance with Los Altos Municipal Code Chapter 11.10 – Nuisance Abatement you are hereby ordered to undertake the following actions:
1. Demolition of the vacant commercial building located at 4898 El Camino Real, Los Altos CA 94022. I have included a copy of the demolition application, demolition checklist and PCB screening form that need to be completed and sent to [email protected]; the demolition application, checklist and PCB screening form are required in order to legally abate the public nuisance.
2. Removal and proper disposal of all debris, hazardous materials, and waste resulting from the demolition process.
3. Securing the premises to prevent unauthorized entry and future occupation.
4. Restoration of the property to a safe and compliant state as per local regulations, which includes the above-mentioned demolition of the existing commercial building, adherence to 762
Agenda Item # 7.
Owners of 4898 El Camino Real, Los Altos, CA, 94022
August 1, 2024
all Best Management Practices (BMPs) for items including but not limited to Dust/Air Quality, Stormwater Runoff, etc.
You are hereby ordered to secure all appropriate permits and to physically commence clean-up, and demolition of the site within ten (10) calendar days from the date of service of this notice and order, and you must complete all abatement activities within thirty (30) calendar days from date of service.
If the required work for abatement has not commenced and been completed within the timeframe as specified above, the city manager or designee will proceed to cause the work to be done, and bill the persons named in the notice for the abatement costs and administrative expenses and/or levy the costs against the property by recorded liens.
This Notice of Nuisance Abatement may be appealed to the Los Altos City Council by any person having any interest or record title in the property within ten (10) calendar days from the date of service of the notice and order. To appeal this decision a notice of appeal must be filed with the Los Altos City Clerk and accompanied with payment of the Appeal Fee as set by City Council Resolution and written explanation that clearly identifies the determination or decision from which the appeal is taken and stating the grounds for the appeal. If an Appeal is filed within ten (10) calendar days of the appeal shall be heard by the Los Altos City Council at its next regularly scheduled meeting. If no appeal is filed within ten (10) calendar days from the date of service and order, the action of the city manager or designee shall be final.
Should you have any questions regarding this Notice of Nuisance Abatement please contact, Nick Zornes, Assistant City Manager, directly at 650-947-2625 or [email protected].
Sincerely,
Nick Zornes
Assistant City Manager
City of Los Altos
c: Gabe Engeland, City Manager
Jolie Houston, City Attorney
Jon Maginot, Assistant City Manager
763
Agenda Item # 7.
City Council Agenda Report
Meeting Date: August 27, 2024
Prepared By: Nick Zornes
Approved By: Gabriel Engeland
Subject: Development Impact Fee and In-Lieu Fee Ordinance
COUNCIL PRIORITY AREA
☒Business Communities
☒Circulation Safety and Efficiency
☒Environmental Sustainability
☒Housing
☒Neighborhood Safety Infrastructure
☒General Government
RECOMMENDATION
Introduce an Ordinance of the City Council of the City of Los Altos Adding Chapter 3.60 to Title 3 Revenue and Finance of the Los Altos Municipal Code Enacting Regulations for Development Impact and In-Lieu Fees and find that this Ordinance is exempt from environmental review pursuant to Section 15378(b)(4) and 15273(a)(1) and (a)(2) of the State Guidelines implementing the California Environmental Quality Act of 1970
FISCAL IMPACT
Not Applicable.
ENVIRONMENTAL REVIEW
Pursuant to CEQA Guidelines Section 15378(b)(4) and 15273(a)(1) and (a)(2) this item is exempt from environmental review. CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges by public agencies.
PREVIOUS COUNCIL CONSIDERATION
July 11, 2024, and July 25, 2024.
BACKGROUND
On May 28, 2024, the Los Altos City Council adopted a Development Impact Fee Nexus Study to provide a comprehensive review and support for the establishment of Impact Fees within the City.
Development Impact Fees in California are governed by the Mitigation Fee Act, which includes AB1600 and AB602.
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Agenda Item # 8.
On June 11, 2024, the Los Altos City Council held a Public Hearing for the consideration of the proposed Development Impact and In-Lieu Fees based on the adopted nexus study. At the hearing the City Council received a presentation from the Assistant City Manager, asked clarifying questions, received public testimony, and discussed the item under consideration. The item was continued to a date certain of June 25, 2024, to allow additional time for the City Council to review the proposed changes to Development Impact and In-Lieu Fees.
On June 25, 2024, the Los Altos City Council held a Public Hearing and adopted the Development Impact and In-Lieu Fees Resolution based on the adopted nexus study. The City Council however, continued to a date certain of August 27, 2024, the proposed Ordinance (Chapter 3.60) for the administrative component of the Development Impact and In-Lieu Fees. The City Council also gave direction to exempt all Below Market Rate (BMR) units from the payment of Development Impact and In-Lieu Fees in the administrative ordinance (Chapter 3.60) and to return with an update to the Art in Public Places Ordinance to create more of an equitable requirement throughout the city.
RECOMMENDATION
Introduce and Waive Second Reading of an Ordinance of the City Council of the City of Los Altos Adding Chapter 3.60 to Title 3 Revenue and Finance of the Los Altos Municipal Code Enacting Regulations for Development Impact and In-Lieu Fees and find that this Ordinance is exempt from environmental review pursuant to Section 15378(b)(4) and 15273(a)(1) and (a)(2) of the State Guidelines implementing the California Environmental Quality Act of 1970.
ATTACHMENTS
1. Draft Ordinance – Adopting Chapter 3.60
2. Appendix A – Chapter 3.60 Text
765
Agenda Item # 8.
1 ORDINANCE NO. 2024-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS ADDING CHAPTER 3.60 TO TITLE 3 REVENUE AND FINANCE OF THE LOS ALTOS
MUNICIPAL CODE ENACTING REGULATIONS FOR DEVELOPMENT IMPACT
AND IN-LIEU FEES
WHEREAS, the mitigation Fee Act contained in Government Code Section 66000 permits the City to impose development impact fees on new development for the purposes of funding public facilities necessary to serve that new development; and WHEREAS, the City of Los Altos has existing Development Impact Fees; and WHEREAS, new development projects attract new residents and employees to the City, generating an increased demand for park, transportation, public safety and general government facilities; and
WHEREAS, the City of Los Altos has determined that City parks, transportation, public safety and general government facilities are reaching capacity, and that the city requires a costeffective and efficient way of serving future residents and employees while maintain existing levels of service; and
WHEREAS, the City of Los Altos wishes to update existing Development Impact fees, and establish new Development Impact Fees in direct relationship to associated development within the City; and
WHEREAS, the City desires to adopt a Park Impact Fee on new development to fund the costs associated with increased demand for community parks and recreational facilities created by new development; and
WHEREAS, the City Council has determined additional funds are necessary for maintain and operating the City’s Public Safety Infrastructure; and WHEREAS, the City Council desires to acquire vehicles and transportation-related equipment and improve, replace and/or construct one or more public safety facilities to serve new development in the City; and
WHEREAS, the City Council has determined that the creation of a Public Safety Impact Fee on new development within the City would provide the necessary funding for police and fire services related to new development; and
WHEREAS, the City’s General Plan and Complete Streets Master Plan calls for strategies to provide an efficient, reliable, and convenient transit system; improved bicycle routes; and a balanced street system to serve automobiles, pedestrians, bicycles, and transit; and WHEREAS, it is appropriate for new development to pay for improvements and development to the transportation network proportionate to the demands the new development places on the City’s transportation infrastructure; and 766
Agenda Item # 8.
2 WHEREAS, the City desires to impose a Transportation Impact Fee on new development to fund the costs associated with maintaining adequate street and transportation facilities related to new development; and
WHEREAS, the City Council has determined additional funds are necessary for maintain and operating the City’s General Government Infrastructure related to Municipal Operations; and WHEREAS, the City Council desires to replace and/or construct new municipal facilities to serve new development in the City; and
WHEREAS, the City Council has determined that the creation of a General Government Impact Fee on new development within the City would provide the necessary funding for municipal operations related to new development; and
WHEREAS, the City Council has determined the physical development or funding of public art within the community is necessary; and
WHEREAS, the City Council has determined that the creation of a Public Art Development Fee on new development within the City would provide the necessary funding for public art within the community related to new development; and WHEREAS, the City Council has determined funds are necessary for mitigating the impacts associated with non-residential development with the City; and WHEREAS, the City Council has determined that the creation of a Commercial Linkage Fee on new development within the City would provide the necessary funding for the creation of affordable housing related to new development; and
WHEREAS, the City Council has determined funding the creation of affordable housing is necessary to further the City’s Housing related goals; and WHEREAS, the City Council has determined that the creation of an Affordable Housing Fee on new development within the City in-lieu of construction of affordable units onsite would provide the necessary alternatives in helping to construct more housing within the City; and WHEREAS, on January 24, 2023, the City Council approved the City’s Sixth Cycle Housing Element Update; and
WHEREAS, Program 2.B of the Housing Element calls for the establishment of an affordable housing in-lieu fee; and
WHEREAS, Program 2.B of the Housing Element requires the City of Los Altos to conduct a feasibility analysis to support the establishment of an affordable housing in-lieu fee for residential development; and
WHEREAS, Program 2.B of the Housing Element requires the City of Los Altos to adopt an affordable housing in-lieu fee based on the feasibility study prepared; and 767
Agenda Item # 8.
3 WHEREAS, on January 23, 2024, the City Council adopted an Inclusionary Housing InLieu Fee based on the results of the Inclusionary Housing Economic Feasibility Study completed by Bae Urban Economics; and
WHEREAS, Program 3.D of the Housing Element calls for the City of Los Altos to Evaluate and Adjust Impact Fees; and
WHEREAS, Program 3.D of the Housing Element expressly requires the modification of Development Impact Fees to be charged on a per square foot basis rather than per unit to encourage the development of higher densities and smaller, more affordable housing units; and WHEREAS, Program 3.D of the Housing Element expressly requires the modification of Development Impact Fees to be completed no later than December 2024; and WHEREAS, Government Code Section 66016 requires the City of Los Altos adopt a Nexus Study to support modifications to existing Development Impact Fees, and the establishment of new Development Impact Fees; and
WHEREAS, consultant Matrix Consulting Group, and subconsultants DKS Associates, and Strategic Economics on behalf of the City of Los Altos prepared the Development Impact Fee Nexus Study dated May 2024 (the “Nexus Study”); and
WHEREAS, the Nexus Study substantiates a methodology that will charge each new development project only for the costs necessary to mitigate the impacts expected to be caused by that development project; and
WHEREAS, there is a reasonable relationship between the Development Impact Fees and the development projects on which the Fees will be imposed because the Fees will only fund costs necessitated by each new development; and
WHEREAS, the Development Impact Fees will not exceed the estimated reasonable cost of providing the land and facilities for which the Fees are imposed; and WHEREAS, the Development Impact Fees will not be levied, collected, or imposed for general revenue purposes, but are levied specifically to fund facilities of the types set forth in the Nexus Study; and
WHEREAS, the Nexus Study establishes proposed amounts and provides an evaluation of the need for new Development Impact Fees and establishes the nexus between the imposition of the new Fees and the estimated reasonable costs of providing the services for which the Fees are charged; and
WHEREAS, the Nexus Study identifies the City’s existing level of parks, transportation, public safety and general government services, identifies the level of service, and includes an explanation of why the level of service is appropriate; and WHEREAS, the Nexus Study includes information that supports the City’s actions, as required by Government Code Section 66001(a); and
768
Agenda Item # 8.
4 WHEREAS, the Nexus Study calculates the maximum justifiable Development Impact Fees that can be charged on new development, and therefore, the City Council may adopt reduced Development Impact Fees below the maximum justifiable amount identified within the Nexus Study if doing so effectuates a policy of the City; and WHEREAS, on May 28, 2024, the City Council adopted a Nexus Study for Development Impact Fees in Compliance with Assembly Bill 602 (AB602) following a thirty-day public notice and review period; and
WHEREAS, the amendments were processed in accordance with the applicable provisions of the California Government Code and the Los Altos Municipal Code; and WHEREAS, the City Council held a duly noticed public hearing on June 11, 2024, and June 25, 2024; and
WHEREAS, this Ordinance is exempt from environmental review pursuant to Section 15378(b)(4) and 15273(a)(1) and (a)(2) of the State Guidelines implementing the California Environmental Quality Act of 1970, as amended; and
NOW, THEREFORE, the City Council of the City of Los Altos does hereby ordain as follows:
SECTION 1. AMENDMENT OF TITLE 3 OF THE MUNICIPAL CODE. Chapter 3.60 is hereby added to the Los Altos Municipal Code as set forth in Appendix A to this Ordinance, underline indicates addition, strikethrough indicates deletion.
SECTION 2. CONSTITUTIONALITY; AMBIGUITIES. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions hereof. Any ambiguities in the Los Altos Municipal Code created by this Ordinance shall be resolved by the Development Services Director, in their reasonable discretion, after consulting the City Attorney.
SECTION 3. PUBLICATION. This Ordinance shall be published as provided in Government Code Section 36933.
SECTION 4. EFFECTIVE DATE. This Ordinance shall be effective upon the commencement of the thirty-first day following the adoption hereof.
The foregoing Ordinance was duly and properly introduced at a regular meeting of the City Council of the City of Los Altos held on August 27, 2024, and was thereafter, at a regular meeting held on September 10, 2024, passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
Jonathan D. Weinberg, MAYOR
769
Agenda Item # 8.
5 Attest:
____________________________
Melissa Thurman MMC, City Clerk
770
Agenda Item # 8.
APPENDIX A
AMENDMENTS TO CHAPTER 3.60
771
Agenda Item # 8.
APPENDIX A
Chapter 3.60 DEVELOPMENT IMPACT AND IN-LIEU FEES
3.60.010 Purpose.
Development Impact and In-Lieu Fees are fees imposed on specific development projects to defray the cost of new or additional public facilities that are needed to serve those developments. Common types of impact and in-lieu fees include traffic mitigation, multi-modal transportation facilities fees, park facilities fees, sewer facilities fees, library facilities fees, public art fees, public safety facilities fees, general government facilities fees, and commercial linkage fees. For purposes of this chapter the term “fee” shall be used to refer to any such development impact or in-lieu fee, regardless of how denominated elsewhere in this code.
3.60.015 Applicability.
A. This Chapter applies to any development impact and in-lieu fee payment imposed under any provision of this code.
B. The following fees are hereby established and shall be imposed as a condition of the approval of, or permit for, any development, whether residential or nonresidential, except as otherwise exempted by this chapter:
i. A fee, known as a “Park Impact Fee,” to fund acquisition of land and improvements for parks within the City of Los Altos, in an amount as set forth in the municipal fee schedule. ii. A fee, known as a “Transportation Impact Fee,” to expand the citywide multimodal transportation network to accommodate increased demand from new development within the City of Los Altos, in an amount as set forth in the municipal fee schedule. iii. A fee, known as a “Public Safety Impact Fee,” to upgrade existing Police and Fire stations, relocate, and reconstruct existing stations, as well as replace outdated public safety equipment within the City of Los Altos, in an amount as set forth in the municipal fee schedule. iv. A fee, known as a “General Government Impact Fee,” to upgrade existing City Hall, Public Works Facilities, Library Branches and City equipment within the City of Los Altos, in an amount as set forth in the municipal fee schedule.
v. A fee, known as a “Public Art Development Fee,” to either place public art on private property or contribute to the public art fund within the City of Los Altos, in an amount as set forth in the municipal fee schedule and implementing ordinance.
vi. A fee, known as a “Commercial Linkage Fee,” to impose a fee on new development for its impact on creating the need for affordable housing in the community within the City of Los Altos, in an amount as set forth in the municipal fee schedule.
vii. A fee, known as a “Affordable Housing Fee,” to either construct inclusionary housing units onsite as a part of new development or contribute to the affordable housing fund within the City of Los Altos, in an amount as set forth in the municipal fee schedule.
3.60.020 Exemptions.
The provision of this chapter shall not apply to the following:
A. Any city-owned buildings, structures or parcels;
B. Public school buildings or structures for the use of education facilities; C. Residential housing units, either for sale or rental, which, by recordable means, is permanently obligated to be 100% affordable;
D. Accessory dwelling units (ADU) less than 750 square feet in size. Any impact fees to be charged for an accessory dwelling unit of 750 square feet or more shall be proportional to the square footage of the primary dwelling unit;
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Agenda Item # 8.
E. Junior accessory dwelling units (JADU).
F. Any Below Market Rate (BMR) unit which, by recordable means, is obligated to be affordable for a minimum of 55-years.
3.60.025 Establishment of Fees.
The establishment of any fee shall be supported by an adopted Nexus Study consistent with all provisions of the Mitigation Fee Act. To establish a nexus between new development and the need for new facilities or infrastructure each fee shall determine the following the purpose of the fee, impact relationship, proportionality, benefit relationship and the use of fee revenue.
3.60.030 Annual Adoption of Fees.
All fees shall be adopted annually during the City of Los Altos annual budget process unless modification of fees prior is necessary to meet the intent or legal requirement of the fee.
3.60.035 Creation of Separate Fund Accounts.
The Finance Director is hereby directed to establish and maintain the following funds, into which all fees of each type described in this chapter, and any interest thereon, shall be deposited. Each fund shall be maintained as a separate account in a manner to avoid any commingling of the fees with other revenues, funds or accounts of the city. The separate funds established by this Chapter are:
A. Park Development Fund;
B. Transportation Improvement Fund;
C. Public Safety Fund;
D. General Government Fund;
E. Public Art Development Fund;
F. Affordable Housing Fund.
3.60.040 Payment of Fees.
A fee shall be paid on or before the issuance of the first building permit for the project. For a phased project, payments may be made for each portion of a phased project prior to issuance of the first building permit for that phase. If there is no building permit for the project, the fee shall be paid upon issuance of the first city permit or other approval. If no city permit(s) or other approval is required, and the obligation to pay the fee is triggered by a change in use, payment of the fee must be made before the change in use occurs.
3.60.045 Deferred Payment of Fees.
For housing developments only as defined by the Housing Accountability Act (HAA), payment of a development impact fee (excluding any in-lieu fee) may be deferred to the date of final building inspection approval of the development, provided the owner of the real property for which the fees are required enters into a recordable agreement with the city prior to issuance of the building permit for the development, which from the date of recordation, shall constitute a lien on the property and shall be enforceable against successors in interest to the property owner. The agreement shall provide that final occupancy approval shall not be given until the fees are paid. The Development Services Director or their designee may execute the agreement on behalf of the city in a form acceptable to the city attorney.
3.60.050 Calculation of Fees.
A fee shall be payable at the rate specified in the City Council adopted municipal fee schedule. When the Calculation of Fees is determined based upon a square footage basis for a housing development the fee shall take into account only habitable square footage as defined by the California Building Code.
3.60.055 Credit of Existing Habitable Square Footage.
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Agenda Item # 8.
Credit of existing habitable square footage shall only be given for existing square footage that is known and provided on the latest County of Santa Clara Assessors Office Tax Roll. No credit shall be provided for nonhabitable square footage. Any proposed development shall pay the net new habitable square footage above the existing assessed square footage.
3.60.060 Notice of Protest Rights.
A. Each applicant is hereby notified that, in order to protest the imposition of any impact fee required by this chapter, the protest must be filed in accordance with the requirements of this chapter and the Mitigation Fee Act. Failure of any person to comply with the protest requirements of this chapter or the Mitigation Fee Act shall bar that person from any action or proceeding or any defense of invalidity or unreasonableness of the imposition.
B. On or before the date on which payment of the fee is due, the applicant shall pay the full amount required by the city and serve a written notice to the Development Services Director with all of the following information:
1. a statement that the required payment is tendered, or will be tendered when due, under protest; and
2. a statement informing the city of the factual elements of the dispute and the legal theory forming the basis for the protest.
3. The applicant shall bear the burden of proving, to the satisfaction of the director, entitlement to a fee adjustment.
3.60.065 Informal Hearing.
A. The director shall schedule an informal hearing regarding the protest, to be held no later than sixty days after the imposition of the impact fees upon the development project, and with at least ten days' prior notice to the applicant (unless either date are otherwise agreed by the director and the applicant).
B. During the informal hearing, the director shall consider the applicant's protest, relevant evidence assembled as a result of the protest, and any additional relevant evidence provided during the informal hearing by the applicant and the city. The director shall provide an opportunity for the applicant to present additional evidence at the hearing in support of the protest.
C. The director shall issue a written determination regarding the protest. The director's determination shall support the fee imposed upon the development project unless the applicant establishes, to the satisfaction of the director, entitlement to an adjustment to the fee.
D. The director may elect to appoint a designee to hear and decide a protest under this section.
3.60.070 Appeal of Director Determination.
A. Any applicant who desires to appeal a determination issued by the director shall submit a written appeal to the director and the city manager. A complete written appeal shall include a complete description of the factual elements of the dispute and the legal theory forming the basis for the appeal of the director's determination. An appeal received by the city manager more than ten calendar days after the director's determination may be rejected as late. Upon receipt of a complete and timely appeal, the city manager shall appoint an independent hearing officer to consider and rule on the appeal.
B. The independent hearing officer shall, in coordination with the applicant and the director, set the time and place for the appeal hearing, and provide written notice thereof. The independent hearing officer shall consider relevant evidence, provide an opportunity for the applicant and the city to present additional noncumulative evidence at the hearing, and preserve the complete administrative record of the proceeding.
C. Within thirty days after the independent hearing officer closes the hearing and receives post-hearing briefs (if any), the independent hearing officer shall issue a written decision on the appeal hearing which shall include a statement of findings of fact in support of the decision. The independent hearing officer's discretion shall be limited to a determination that either supports the director's determination or orders the city to refund all or a portion of the impact fees to the applicant. The applicant shall bear the burden 774
Agenda Item # 8.
of proving entitlement to a fee adjustment. The decision of the hearing officer is final and conclusive and is subject to judicial review.
3.60.075 Cost of Appeal/Protest.
The applicant shall pay all city costs related to any protest or appeal pursuant to this chapter, in accordance with the fee schedule adopted by the city. At the time of the applicant's protest, and at the time of the applicant's appeal, the applicant shall pay a deposit in an amount established by the city to cover the estimated reasonable cost of processing the protest and appeal. If the deposit is not adequate to cover all the city costs, the applicant shall pay the difference within twenty days after receipt of written notice from the director.
3.60.080 Administration.
The city manager or their designee is authorized to adopt administrative regulations or guidelines that are consistent with and that further the terms and requirements set forth in this code. All such administrative regulations or guidelines must be in writing. Such regulations or guidelines may interpret any provision of this chapter, as well as any provision of this code relating to the calculation of a fee.
3.60.085 Annual Adjustments.
Annual adjustments will provide the ability to increase any fee covered by this chapter based upon the Construction Code Index (CCI). Annual increase based upon CCI shall only be allowed for eight (8) years post adoption of the Nexus Study. The City of Los Altos shall reevaluate its development impact and in-lieu fees no later than every eight (8) years.
3.60.090 Annual Reporting.
Pursuant to Government Code Section 66006 within 180-days of the close of the fiscal year, the City of Los Altos must make available to the public detailed information regarding impact fees. The annual reporting required as a part of this chapter must be submitted and reviewed by the City Council within 15 days of being posted publicly.
The detailed information shall include but is not limited to:
1. Impact Fee Description and Fund Number;
2. Impact Fee Amount;
3. Beginning and Ending balance of the account or fund;
4. Amount of the fees collected in the fiscal year and the total interest earned;
5. Identification of project(s) one which the funds are being earmarked for;
6. Identification of the approximate date on which the projects would commence;
7. Identification of any interfund loans or transfers related to capital projects, and the amount of the transfer;
8. Amount of any refunds or allocations made on behalf of the impact fee funds.
3.60.095 Severability.
If any portion of this chapter is held to be invalid, unconstitutional, or unenforceable by a court of competent jurisdiction, that decision will not affect the validity of the remaining portions of this code. The city council declares that this chapter and each portion would have been adopted without regard to whether any portion of this chapter would be later declared invalid, unconstitutional, or unenforceable. 775
Agenda Item # 8.
City Council Agenda Report
Meeting Date: August 27, 2024
Prepared By: Nick Zornes
Approved By: Gabe Engeland
Subject: Amendments to Municipal Code Chapters 3.48 and 3.49
COUNCIL PRIORITY AREA
☒Business Communities
☒Circulation Safety and Efficiency
☒Environmental Sustainability
☒Housing
☒Neighborhood Safety Infrastructure
☒General Government
RECOMMENDATION
Two (2) separate actions for City Council consideration:
Introduce an Ordinance of the City Council of the City of Los Altos Repealing in its Entirety the Traffic Impact Fee Ordinance, Chapter 3.48 of the Los Altos Municipal Code and find that this Ordinance is exempt from environmental review pursuant to Section 15378(b)(4) and 15273(a)(1) and (a)(2) of the State Guidelines implementing the California Environmental Quality Act of 1970.
Introduce an Ordinance of the City Council of the City of Los Altos Amending Chapter 3.49 to Title 3 Revenue and Finance of the Los Altos Municipal Code for Affordable Housing Fees and find that this Ordinance is exempt from environmental review pursuant to Section 15378(b)(4) and 15273(a)(1) and (a)(2) of the State Guidelines implementing the California Environmental Quality Act of 1970.
FISCAL IMPACT
Not Applicable.
ENVIRONMENTAL REVIEW
Pursuant to CEQA Guidelines Section 15378(b)(4) and 15273(a)(1) and (a)(2) this item is exempt from environmental review. CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges by public agencies.
BACKGROUND
On June 11, 2024, the Los Altos City Council considered an item for Development Impact and InLieu Fees. The item was continued to a date certain of June 25, 2024, to provide the City Council 776
Agenda Item # 9.
with additional time to consider the subsequent action. At that time the Assistant City Manager informed the City Council that this includes amendments to Chapter 3.48 and 3.49 of the Los Altos Municipal Code would need to be agendized separately as there was insufficient information provided in the agenda to meet the statutory requirements.
This item was again continued at the June 25, 2024, City Council meeting until a date certain of August 27, 2024.
ANALYSIS
The proposed amendments to Chapter 3.48 and 3.49 of the Los Altos Municipal Code are to further implement the Development Impact and In-Lieu Fees under consideration tonight. The proposed amendment to Chapter 3.48 repeals in its entirety the existing ordinance as the new Chapter 3.60 covers all necessary provisions for the collection of Development Impact and In-Lieu Fees associated with Traffic Impact Fees (TIF). The proposed amendment to Chapter 3.49 amends the city’s Affordable Housing Fee Ordinance which covers the legal framework for the collection of such fees. As previously noted, the proposed amendments are in tandem to the consideration of Development Impact and In-Lieu Fees also under consideration on the June 25, 2024, agenda.
RECOMMENDATION
Two (2) separate actions for City Council consideration:
Introduce and Waive Further Reading of an Ordinance of the City Council of the City of Los Altos Repealing in its Entirety the Traffic Impact Fee Ordinance, Chapter 3.48 of the Los Altos Municipal Code and find that this Ordinance is exempt from environmental review pursuant to Section 15378(b)(4) and 15273(a)(1) and (a)(2) of the State Guidelines implementing the California Environmental Quality Act of 1970.
Introduce and Waive Further Reading of an Ordinance of the City Council of the City of Los Altos Amending Chapter 3.49 to Title 3 Revenue and Finance of the Los Altos Municipal Code for Affordable Housing Fees and find that this Ordinance is exempt from environmental review pursuant to Section 15378(b)(4) and 15273(a)(1) and (a)(2) of the State Guidelines implementing the California Environmental Quality Act of 1970.
ATTACHMENTS
1. Draft Ordinance – Repealing Chapter 3.48
2. Appendix A – Chapter 3.48 Text
3. Draft Ordinance – Amending Chapter 3.49
4. Appendix A – Chapter 3.49 Text
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1 ORDINANCE NO. 2024-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS
REPEALING IN ITS ENTIRETY THE TRAFFIC IMPACT FEE ORDINANCE, CHAPTER 3.48 OF THE LOS ALTOS MUNICIPAL CODE
WHEREAS, the City Council is empowered pursuant to Article XI, Section 7 of the California Constitution to make and enforce within the City all local, police, sanitary, and other ordinances and regulations not in conflict with general laws; and WHEREAS, the City Council repeals in its entirety the Traffic Impact Fee Ordinance, Chapter 3.48 of the Los Altos Municipal Code; and
WHEREAS, this Ordinance is exempt from environmental review pursuant to Section 15378(b)(4) and 15273(a)(1) and 15273(a)(2) of the State Guidelines implementing the California Environmental Quality Act of 1970, as amended; and
NOW, THEREFORE, the City Council of the City of Los Altos does hereby ordain as follows:
SECTION 1. AMENDMENT OF CHAPTER 3.48 OF THE MUNICIPAL CODE. Chapter
3.48 of the Los Altos Municipal Code is hereby amended as set forth in Appendix A to this Ordinance, underline indicating addition, and strikethrough indicating deletion.
SECTION 2. CONSTITUTIONALITY; AMBIGUITIES. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions hereof. Any ambiguities in the Los Altos Municipal Code created by this Ordinance shall be resolved by the Director of Development Services, in their reasonable discretion, after consulting the City Attorney.
SECTION 3. PUBLICATION. This Ordinance shall be published as provided in Government Code Section 36933.
SECTION 4. EFFECTIVE DATE. This Ordinance shall be effective upon the commencement of the sixty-first day following the adoption hereof.
The foregoing Ordinance was duly and properly introduced at a regular meeting of the City Council of the City of Los Altos held on August 27, 2024, and was thereafter, at a regular meeting held on September 10, 2024, passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
Jonathan D. Weinberg, MAYOR
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2 Attest:
____________________________
Melissa Thurman, MMC, CITY CLERK
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APPENDIX A
AMENDMENTS TO CHAPTER 3.48
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APPENDIX A
Title 3 - REVENUE AND FINANCE
Chapter 3.48 RESERVED TRAFFIC IMPACT FEE
Los Altos, California, Code of Ordinances Created: 2024-04-02 13:07:39 [EST] (Supp. No. 41, Update 1)
Chapter 3.48 RESERVED TRAFFIC IMPACT FEE
Sections:
3.48.010 RESERVED FOR FUTURE USE Authority.
This chapter is enacted pursuant to Sections 66000 through 66008 of the California Government Code. The fees established are based on an analysis of potential future growth and its impact on the city's transportation system as identified in the 2005 city of Los Altos traffic impact fee program report, herein referred to as the traffic impact fee report.
(Ord. 05-286 § 1 (part))
3.48.020 Application.
This chapter applies to fees charged as a condition of development approval to defray the cost of certain transportation improvements required to serve new development within the city. This chapter does not replace other subdivision map exactions or other measures required to mitigate site-specific impacts of a development project including, but not limited to, mitigations pursuant to the California Environmental Quality Act, regulatory and processing fees, fees required pursuant to a development agreement, or assessment district proceedings, benefit assessments, or taxes.
(Ord. 05-286 § 1 (part))
3.48.030 Intent and purpose.
A. Adequate transportation improvements are needed to protect the health, safety, and general welfare of the citizens, to facilitate transportation, and to promote economic well-being within the city. Transportation improvements are provided for residents, businesses, and employees within the city. Individual traffic improvements are part of an integrated transportation system serving and providing benefits to the entire city. New development within the city will create an additional burden on the existing street system.
Improvements to the existing street system in the city are needed both to mitigate the cumulative impacts of new development and to accommodate future development by maintaining the appropriate level of service on streets and intersections, or providing offsetting sidewalk and bicycle improvements to meet the goals and policies of the city's general plan and the county of Santa Clara's congestion management program requirements.
B. All types of development require and use the street system. There are no adequate public funds available to maintain designated levels of service at all intersections in the city. In order to ensure that the appropriate level of service is maintained and to promote the health, safety, and general welfare of the community, it is necessary that new development pay a fee representing its share of costs of the necessary improvements.
The traffic impact fee is based upon the evidence that new development generates additional residents, employees, and structures, which in turn place an additional cumulative burden upon the local street system, and should be expected to pay a share of the new facilities.
C. The purpose of this fee is to help provide adequate transportation-related improvements to serve cumulative development within the city. However, the fee does not replace the need for all site-specific 781
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(Supp. No. 41, Update 1)
traffic improvements that may be needed to mitigate the impact of specific projects upon the city's street system. The transportation improvements for which the fee will be used are identified in the city's capital improvement program and/or in the traffic impact fee report in effect at the time this chapter is enacted or as subsequently amended.
(Ord. 05-286 § 1 (part))
3.48.040 Fee requirement.
A. A traffic impact fee is hereby imposed on new development which generates traffic and meets the requirements of this section. The amount of the fee shall be established periodically by the city council. The fee shall be based on the percentage of the cost of the new improvements attributable to new development as determined in the traffic impact fee program report in effect at the time this chapter is enacted or as subsequently amended.
B. The fee shall be applicable to development projects throughout the city as follows:
1. Single-family housing— per residential unit;
2. Multiple-family housing—per residential unit;
3. Senior housing—per residential unit;
4. Commercial—per one thousand (1,000) gross square feet;
5. Office—per one thousand (1,000) gross square feet.
C. Residential units and nonresidential uses shall only be charged for net increases. No fee shall be charged for the remodeling, restoration or replacement of an existing residential unit or the remodeling, restoration or replacement of existing gross floor area for a nonresidential use.
D. When a multiple-family or senior housing project replaces a nonresidential project the traffic impact fee shall either be the unit cost for every one thousand (1,000) square feet of net new building area, or the unit cost for the total number of residential units, whichever is less.
E. The city engineer shall determine the appropriate traffic impact fee for projects that do not fall into one of the categories defined herein based on the number of additional p.m. peak hour trips the project generates in excess of any current p.m. peak hour trips generated by current site uses, as indicated in the most current edition of the Institute of Transportation Engineers Trip Generation Manual and based on the traffic impact fee program report in effect at the time this chapter is enacted or as subsequently amended. Any determination made by the city engineer pursuant to this subsection may be appealed to the city council. (Ord. 08-325 § 1: Ord. 05-286 § 1 (part))
3.48.050 Fee adjustment.
A. The traffic impact fee shall be adjusted automatically each July 1st by the increase or decrease in the Engineering News Record Construction Cost Index for the San Francisco Bay Area for the period ending December 31st of the preceding calendar year.
B. In addition to the automatic adjustment of subsection A of this section, the city council may periodically adjust the traffic impact fee to reflect revisions in the transportation improvement projects, increases in land values or other factors.
(Ord. 08-325 § 2: Ord. 05-286 § 1 (part))
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3.48.060 Fee payment.
The fee shall be paid in full to the city before any building permit is issued or any final subdivision map is recorded, whichever is applicable or occurs first.
(Ord. 05-286 § 1 (part))
3.48.070 Authority for additional mitigation.
Fees collected pursuant to this chapter are not intended to replace or limit requirements to provide mitigation of traffic impacts not mitigated by the fee, created by a specific project, and imposed upon development projects as part of the development review process. (Ord. 05-286 § 1 (part))
3.48.080 Exemptions.
Public park facilities, city buildings, and those government facilities entitled to an exemption under law are exempt from the traffic impact fee.
(Ord. 05-286 § 1 (part))
3.48.090 Fee credit.
The city engineer may adjust the fee imposed pursuant to this chapter in consideration for certain on-site and off-site facilities or improvements constructed or paid for by the developer. In determining an adjustment, the director shall consider a credit for the value of improvements if the improvements are identified in the city's capital improvement program and/or the traffic impact fee report in effect at the time this chapter is enacted or as subsequently amended. Credit shall not be given for subdivision map exactions or other measures required to mitigate site-specific impacts of a development project. (Ord. 05-286 § 1 (part))
3.48.100 Accumulation and use of funds.
A. The city shall deposit the fees collected under this chapter in a special fund designated solely for transportation improvements.
B. The fees and interest earned on accumulated funds shall be used only to:
1. Complete the traffic improvement projects specified in the city's capital improvement program and/or the traffic impact fee report in effect at the time this chapter is enacted or as subsequently amended; or
2. Pay costs required for the administration of this chapter. (Ord. 05-286 § 1 (part))
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3.48.110 Periodic review.
The fee authorized by this chapter, and as established by the traffic impact fee report, shall be reviewed every five years in order to make findings required by the California Government Code. (Ord. 05-286 § 1 (part))
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1 ORDINANCE NO. 2024-__
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS AMENDING CHAPTER 3.49 OF TITLE 3 REVENUE AND FINANCE OF THE LOS
ALTOS MUNICIPAL CODE FOR AFFORDABLE HOUSING FEES
WHEREAS, the amendments was processed in accordance with the applicable provisions of the California Government Code and the Los Altos Municipal Code; and WHEREAS, the City Council held a duly noticed public meeting on June 11, 2024, and June 25, 2024; and
WHEREAS, this Ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the State Guidelines implementing the California Environmental Quality Act of 1970, as amended; and
NOW, THEREFORE, the City Council of the City of Los Altos does hereby ordain as follows:
SECTION 1. AMENDMENT OF TITLE 3 OF THE MUNICIPAL CODE. Chapter 3.49 is hereby amended of the Los Altos Municipal Code as set forth in Appendix A to this Ordinance.
SECTION 2. CONSTITUTIONALITY; AMBIGUITIES. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions hereof. Any ambiguities in the Los Altos Municipal Code created by this Ordinance shall be resolved by the Development Services Director, in their reasonable discretion, after consulting the City Attorney.
SECTION 3. PUBLICATION. This Ordinance shall be published as provided in Government Code Section 36933.
SECTION 4. EFFECTIVE DATE. This Ordinance shall be effective upon the commencement of the sixty-first day following the adoption hereof.
The foregoing Ordinance was duly and properly introduced at a regular meeting of the City Council of the City of Los Altos held on August 27, 2024, and was thereafter, at a regular meeting held on September 10, 2024, passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
Jonathan D. Weinberg, MAYOR
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2 Attest:
____________________________
Melissa Thurman MMC, City Clerk
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APPENDIX A
AMENDMENTS TO CHAPTER 3.49
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APPENDIX A
Title 3 - REVENUE AND FINANCE
Chapter 3.4962 AFFORDABLE HOUSING IMPACT FEES
Chapter 3.49 3.62 AFFORDABLE HOUSING IMPACT FEES
3.4962.010 Purpose.
This chapter requires the payment of housing impact fees for the impact of residential and non-residential development on the need for affordable housing in the City of Los Altos and to implement the housing element of the city's general plan and California Government Code Section 65583(c), which expresses the state housing policy that requires cities to assist in the development of adequate housing to meet the needs of lower income households.
3.4962.020 Affordable Housing Fund. Housing mitigation fund.
All housing impact fees associated with the creation or retention of affordable housing shall be placed in the city's affordable housing mitigation fund and used to support the development and retention of affordable housing within the city and the region.
3.4962.030 Applicability.
A. New Construction. Projects that include, single-family parcels, new market rate multiple-family dwelling ownership units, new market rate rental housing units and non-residential construction shall be subject to the affordable housing impact fees required in this chapter. Payment of the affordable housing impact fees shall be a condition of approval for all development projects subject to this chapter.
B. Pipeline Projects. The following development projects shall be exempt from payment of the affordable housing impact fees required in this chapter:
1. Projects for which a development application pursuant to this title has been filed and deemed complete by July 13, 2018; and
2. Projects that have received final approval pursuant to this title by July 13, 2018, and which are subsequently the subject of a pending application for modifications to the approved plans or permit, except that any increase in floor area from the amount already approved shall be subject to the housing impact fees required by this chapter.
3.4962.040 Affordable Housing impact fFee.
A. Adoption of Affordable Housing Impact Fees. Affordable Housing impact fFees amounts for each applicable use shall be established by city council resolution, which may be amended from time to time by council. The fee amounts shall be adjusted annually based on the provisions set forth in Chapter 3.60 of the Los Altos Municipal Code. on the Consumer Price Index for all urban consumers for the San Francisco-Oakland-San Jose area unless otherwise modified by council. Such fees shall not exceed the cost of mitigating the impact of developments on the need for housing for lower-income households in the city.
B. Timing of Payment. Housing impact fFees shall be paid in accordance with the provisions set forth in Chapter
3.60 of the Los Altos Municipal Code. prior to issuance of the first building permit for the project. A developer may pay all or a portion of the fee owed at any time prior to issuance of the building permit, at the rate in effect at the time payment is made. For phased projects, the amount due shall be paid on a pro rata basis across the entire square footage of the approved development, and each portion shall be paid prior to the issuance of any building permit for each phase.
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3.4962.050 Affordable Housing impact fFees for residential ownership development.
A. Applicability. Affordable housing impact fees shall be imposed on all new residential ownership developments that result in a net increase of one unit or more, excluding accessory dwelling units, regardless of zoning designation of the project site, unless the applicant elects to provide one of the alternatives listed in subsection (D).
B. Calculation of Fee. The amount of the fee, as further described in the fee resolution, is imposed on a per square foot basis for new gross habitable floor area commensurate with the building type (e.g., townhome or condominium). The following formula shall be used in calculating the required affordable housing impact fee for new residential housing developments: (New gross habitable square foot area of all units) minus (existing gross habitable square foot area of all units) multiplied by (per square foot fee) equals (total affordable housing impact fee).
C. Gross habitable Square Foot Area. Gross habitable square foot area means the total living area of each dwelling unit within a project measured to the outside of the exterior walls and does not include areas outside of the dwelling units such as common areas, corridors, parking facilities, outside storage lockers and shared laundry facilities.
D. Alternatives in-Lieu of an Affordable Housing Impact Fee. As an alternative to paying the affordable housing impact fee for residential ownership developments, a developer may request to provide affordable ownership units on the project site, dedicate land for affordable housing, or provide affordable units off-site, as detailed in this section.
1. On-site units. A developer may request to mitigate the housing impacts through construction of affordable residential ownership units on the subject development site consistent with the requirements outlined in Chapter 14.28. However, payment of the in-lieu impact fee does not preclude a developer from meeting the inclusionary housing requirements specified in Chapter 14.28.
2. Off-site units or dedication of land. As an additional alternative, a developer may request to designate affordable units in an off-site location or dedicate land for the construction of affordable units within the Los Altos City Limits. The city priority shall be for a location that is accessible to public transit. Any off-site units shall be either new or renovated to near-new conditions. Such requests shall be granted in the sole discretion of the city council if the city council determines that the proposed alternative will mitigate the impact of the project on the need for affordable housing. When off-site units or dedication of land is proposed as an alternative to on-site construction of affordable units, the developer shall demonstrate how the alternative will Affirmatively Further Fair Housing (AFFH).
3. In calculating the number of required affordable units either on-site or off-site, any fraction of a whole unit shall be satisfied by either developing one additional affordable unit or by paying the remaining fee amount as further described in the fee resolution.
4. All affordable units developed either on-site or off-site shall be subject to the city's standard affordable housing agreement and deed restriction.
5. The applicant must enter into an affordable housing developer agreement with the city to be recorded against the property prior to recordation of a final or parcel map or issuance of any building permit, acknowledging that the affordable units or land dedication are provided in consideration for a direct financial contribution from the city in the form of a waiver of the affordable housing impact fee.
6. The city council may approve this request if the proposed alternative forms of affordable housing opportunities in the city are equal to or greater than the payment of the affordable housing fee.
E. The city council may approve this request if the proposed alternative forms of affordable housing opportunities in the city are equal to or greater than the payment of the housing impact fee. 789
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3.4962.060 Affordable Housing impact fFees for multiple-family residential rental development.
A. Applicability. Affordable housing impact fee shall be imposed on all new residential rental developments that result in a net increase of one unit or more, excluding accessory dwelling units, regardless of zoning designation of the project site, unless the applicant elects to provide one of the alternatives listed in subsection (D). For purposes of this section, new market-rate rental housing developments shall include developments that have recorded a condominium map, but the developer intends to initially rent the units.
B. Calculation of Fee. The amount of the fee, as further described in the fee resolution, is imposed on a per square foot basis for new gross habitable floor area commensurate with the building type (e.g., townhome or condominium). The following formula below shall be used in calculating the required affordable housing impact fee for new residential rental housing developments: (New gross habitable square foot area of all units) minus (existing gross habitable square foot area of all units) multiplied by (per square foot fee) equals (total affordable housing impact fee).
C. Gross habitable Square Foot Area. Gross habitable square foot area means the total living area of each dwelling unit within a project measured to the outside of the exterior walls and does not include areas outside of the dwelling units such as common areas, corridors, parking facilities, outside storage lockers and shared laundry facilities.
D. Alternatives in-Lieu of an Affordable Housing Impact Fee. As an alternative to paying the affordable housing impact fee for residential rental developments, a developer may request to provide affordable units on the project site, dedicate land for affordable housing, or provide affordable units off-site, as detailed in this section.
1. On-site units. A developer may request to mitigate the housing impacts through construction of affordable residential rental units on the subject development site consistent with the requirements outlined in Chapter 14.28. However, payment of the in-lieu impact fee does not preclude a developer from meeting the inclusionary housing requirements specified in Chapter 14.28.
2. Off-site units or dedication of land. As an additional alternative, a developer may request to designate affordable units in an off-site location or to dedicate land for the construction of affordable units within the Los Altos City Limits. The city priority shall be for a location that is accessible to public transit. Any off-site units shall be either new or renovated to near-new conditions. Such requests shall be granted in the sole discretion of the city council if the city council determines that the proposed alternative will mitigate the impact of the project on the need for affordable housing. When off-site units or dedication of land is proposed as an alternative to on-site construction of affordable units, the developer shall demonstrate how the alternative will Affirmatively Further Fair Housing (AFFH).
3. In calculating the number of required affordable rental units either on-site or off-site, any fraction of a whole unit shall be satisfied by either developing one additional affordable unit or by paying the remaining fee amount as further described in the fee resolution.
4. All affordable units developed either on-site or off-site shall be subject to the city's standard affordable housing agreement and deed restriction.
5. The applicant must enter into an affordable housing developer agreement with the city to be recorded against the property prior to recordation of a final or parcel map or issuance of any building permit, acknowledging that the affordable units or land dedication are provided in consideration for a direct financial contribution from the city in the form of a waiver of the affordable housing impact fee.
6. The city council may approve this request if the proposed alternative forms of affordable housing opportunities in the city are equal to or greater than the payment of the affordable housing fee. 790
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E. The city council may approve this request if the proposed alternative forms of affordable housing opportunities in the city are equal to or greater than the payment of the housing impact fee.
3.4962.070 Affordable Housing impact fFees for non-residential development.
A. Applicability. A non-residential affordable housing impact fee and commercial linkage fee shall be imposed on all new construction of commercial, office, retail and hotel/motel development projects, as defined by Chapter 14.02.070 of the Zoning Code, that result in any net increase of square footage five hundred (500) square feet or greater of new floor area, regardless of zoning designation of the project site, unless the applicant elects to provide one of the alternatives listed in subsection (D).
B. Calculation of Fee. The amount of the affordable housing impact fee and commercial linkage fee, as further described in the fee resolution, is imposed on a per square foot basis for new gross floor area. The following formula below shall be used in calculating the amount of the affordable housing impact fee: (Gross square feet non-residential floor area) minus (existing square feet floor area) multiplied by (per square foot fee) equals (total affordable housing impact fee).
C. Exemptions to New Gross Floor Area. The following areas are exempt from the new gross floor area used in affordable housing impact fee and commercial linkage fee calculations for non-residential developments:
1. Any incidental and accessory storage, structures or appurtenances, such as sheds, trash enclosures, ground-mounted equipment enclosures, garden features, trellises or shade structures;
2. Architectural design features not utilized for occupancy or storage; and
3. Existing floor area square footage of structures that were vacated or demolished no more than twelve (12) months prior to the filing date of the development application.
D. Alternatives in-Lieu of an Affordable Housing Impact Fee. As an alternative to paying the affordable housing impact fee, a developer may request the following:
1. On-site units. A developer may request to mitigate the housing impacts through construction of affordable residential units on the subject development site. If applicable, the number of affordable units shall be those indicated atin Chapter 14.28.
2. Off-site units or dedication of land. As an additional alternative, a developer may request to designate affordable units in an off-site location or to dedicate land for the construction of affordable units within the Los Altos City Limits. The city priority shall be for a location that is accessible to public transit. Any off-site units shall be either new or renovated to near-new conditions. Such requests shall be granted in the sole discretion of the city council if the city council determines that the proposed alternative will mitigate the impact of the project on the need for affordable housing. When off-site units or dedication of land is proposed as an alternative to on-site construction of affordable units, the developer shall demonstrate how the alternative will Affirmatively Further Fair Housing (AFFH).
3. In calculating the number of required affordable units either on-site or off-site, any fraction of a whole unit shall be satisfied by either developing one additional affordable unit or by paying the remaining fee amount as further described in the fee resolution.
4. All affordable units developed either on-site or off-site shall be subject to the city's standard affordable housing agreement and deed restriction.
5. The applicant must enter into an affordable housing developer agreement with the city to be recorded against the property prior to recordation of a final or parcel map or issuance of any building permit, acknowledging that the affordable units or land dedication are provided in consideration for a direct financial contribution from the city in the form of a waiver of the affordable housing impact fee.
6. The city council may approve this request if the proposed alternative forms of affordable housing opportunities in the city are equal to or greater than the payment of the affordable housing fee. 791
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E. The city council may approve this request if the proposed alternative forms of affordable housing opportunities in the city are equal to or greater than the payment of the affordable housing impact fee.
3.4962.080 Exception to Municipal Code Section 14.28.
Those projects that pay an affordable housing impact fee in compliance with this chapter shall not be required to comply with the affordable housing requirements (inclusionary units) found at Section 14.28.030 of the Municipal Code.
3.4962.090 Waiver.
Notwithstanding any other provision of this chapter, the requirement to pay the affordable housing impact fee may be waived, adjusted or reduced by the city council if an applicant shows, based on substantial evidence, that there is no reasonable relationship between the impact of the proposed development and the requirement to pay the affordable housing impact fee, or that applying the requirements of this chapter would take property in violation of the United States Constitution or California Constitution or would result in any other unconstitutional result.
3.4962.100 Enforcement.
The provisions of this chapter shall apply to all agents, successors and assigns of an applicant proposing or constructing a development governed by this chapter. The city may institute any appropriate legal actions or proceedings necessary to ensure compliance herewith, including but not limited to, actions to revoke, deny or suspend any permit, including a development approval, building permit or certificate of occupancy. The city shall be entitled to costs and expenses for enforcement of the provisions of this chapter, or any agreement pursuant thereto, as awarded by the court, including reasonable attorneys' fees.
3.4962.110 Severability.
If any portion of this chapter is held to be invalid, unconstitutional, or unenforceable by a court of competent jurisdiction, that decision will not affect the validity of the remaining portions of this zoning code. The city council declares that this chapter and each portion would have been adopted without regard to whether any portion of this chapter would be later declared invalid, unconstitutional, or unenforceable. 792
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City Council Agenda Report
Meeting Date: August 27, 2024
Prepared By: Gabriel Engeland
Approved By: Gabriel Engeland
Subject: Discussion of Parking Enforcement and Parking Restrictions
COUNCIL PRIORITY AREA
☒Business Communities
☒Circulation Safety and Efficiency
☐Environmental Sustainability
☐Housing
☐Neighborhood Safety Infrastructure
☒General Government
RECOMMENDATION
Staff recommends the City Council direct staff to explore private sector parking enforcement services, make parking restrictions uniform in similarly situated neighborhoods, and discuss other options for parking control measures as necessary.
FISCAL IMPACT
There is no financial impact associated with this staff report. It is anticipated a contract for parking enforcement services could range from $100,000 to $300,000 annually, however, a percentage of this cost, up to 100%, would be offset by the revenue generated from parking citations.
ENVIRONMENTAL REVIEW
Not applicable.
PREVIOUS COUNCIL CONSIDERATION
Not applicable.
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DISCUSSION/ANALYSIS
The Los Altos Police Department enforces parking under the powers outlined in the City’s municipal Code. The City limits parking as follows:
Downtown parking is limited to 2 hours between 9 am – 6 pm. Downtown parking plazas are limited to 3-hour parking. Parks and other municipal parking lots have a maximum of parking no more than 72 hours consecutively.
The Library at the municipal center has 2-hour parking during open hours. Areas around schools have variable/non-standard hours where parking is restricted at different times and location, sometimes varying from block-to-block.
Currently the Police Department has one Community Services Officer (CSO) who completes parking enforcement for the City. In addition to parking enforcement, the CSO is the primary employee responsible in the City for special events. These job duties require planning and collaboration with event organizers around parking and traffic management. The CSO is responsible for approving traffic and parking plans, placing and removing “no parking” signage, and working during the events to ensure no vehicles are blocking the street and traffic safety measures are in place and adhered to. The responsibilities associated with special events take priority over regular or proactive parking enforcement.
The CSO can dedicate approximately 30% of total time to proactive parking enforcement. When special events are not taking place or being planned, the proactive enforcement rate is higher, but the annualized average is approximately 12 hours per week of proactive parking enforcement citywide. The current staffing assigned to parking enforcement means the City does not have dedicated parking enforcement on most days, in most locations, or during most hours when parking restrictions exist. Additionally, there is no proactive enforcement on the weekends, during special events, or when the CSO is off shift, including vacation or personal time and City recognized holidays. Additionally a new State law (AB 413) known as the “daylighting” law prohibits stopping, standing, or parking within 20 ft. of a marked or unmarked crosswalk, and gives cities the ability to enforce infractions by parking citation. The City intends to enforce this law, particularly around areas marked as Safe Routes to Schools. Enforcement of AB 413 will require proactive parking enforcement beyond the capabilities of the Police Department due to staffing.
On average, the City issues 100-115 parking tickets each month. The majority of these tickets are issued downtown, and many are related to special events. As time allows, the City conducts proactive enforcement around several of the schools where complaints have been received and responds to parking complaints that are called into the Police Department Communications Center or forwarded to the Police Department from Code Enforcement. The City does not complete regular proactive parking enforcement in other neighborhoods, at parks, libraries, or in other business districts or city owned parking lots. The City takes part in the Abandoned Vehicle Abatement Service Authority (AVASA) and responds to reports of abandoned vehicles. 794
Agenda Item # 10.
Complaints about the availability of parking downtown have been consistent, but recently requests for parking enforcement have been received in the neighborhoods around schools specifically, and generally in neighborhoods that experience cars parked under stop signs, too close to intersections, and for vehicles parked longer than 72 hours or that have become disabled. In addition to these requests, the City recognizes the need to increase parking enforcement at City libraries, city-owned parking plazas, and in parks, as well as beginning enforcement of AB 413.
In order to increase proactive parking enforcement, the City could assign current police personnel to complete parking enforcement, hire additional CSOs, or seek a private sector partner to proactively enforce parking as identified above. Though any of these three options would lead to more effective parking enforcement, City staff recommends seeking out a private sector partner to supplement current enforcement. The primary reasons a private sector partner is preferred is both the near-term and legacy costs associated with contracting this service are lower than hiring additional staff to complete enforcement. Additionally, a contracted partner would have parking enforcement as the only priority whereas police personnel will regularly have calls for service or other responsibilities that would be a higher priority, meaning the sole focus for a contracted partner will be parking enforcement during the times and at the locations where the City restricts parking.
In researching this topic Staff found a nearby city, San Bruno, that faced many of the same challenges around staffing and competing demands for the resources available. Similar to Los Altos, San Bruno assigned Community Service Officers to manage parking enforcement. San Bruno staffed 5 total Community Service Officers (2 full-time, 3 part-time) to try to effectively enforce parking. San Bruno ultimately adopted a blended enforcement approach where a private sector parking enforcement agency took on many of the proactive parking enforcement responsibilities.
If the City is unable to come to terms with a private sector partner, staff would recommend adding an additional parking enforcement CSO to complete regular proactive parking enforcement.
Historically, the City has had 1.5 FTEs dedicated to parking enforcement.
In addition to completing more proactive enforcement, staff is recommending a uniform and consistent approach to the placement of “no parking” signs. Currently, the Public Works Department reviews requests for no parking signage where certain conditions exist, including safety concerns, traffic flow, congestion, or known times of increased intensity due to nearby land uses. However, this approach largely focuses on specific complaints or concerns from a resident or residents as opposed to a holistic view of how no parking restrictions impact the larger community.
The approach means the City currently does not apply “no parking” or other parking restrictions in a uniform manner for similarly situated properties or neighborhoods. The area around Jardin is a good example of parking regulations having different time restrictions and no parking locations even though they are in place due to the same traffic, parking, and congestion caused by the High School. Jardin is not the only area in the City where residents are experiencing this, 795
Agenda Item # 10.
but it is a primary example of an area where signs should be placed uniformly, and restrictions should be similar from street to street.
Should the City Council choose to apply similar standards for “no parking” areas like Jardin will have uniform enforcement and application of regulations, as will other areas of the City where this issue exists today.
The City Council may also wish to discuss options not outlined in this staff report with regards to parking restrictions, these options could include neighborhood parking, city-wide or limited permit parking, or overnight parking restrictions.
ATTACHMENTS
1. San Bruno Staff Report
2. CSC Staff Report
796
Agenda Item # 10.
797
Agenda Item # 10.
798
Agenda Item # 10.
799
Agenda Item # 10.
800
Agenda Item # 10.
801
Agenda Item # 10.
802
Agenda Item # 10.
803
Agenda Item # 10.
8-4 No parking
No parking
8-2 No parking
CURRENT PARKING RESTRICTION AROUND LOS ALTOS HIGH SCHOOL 804
Agenda Item # 10.
Neighborhood Complaint
1. The residents states they are not
able to park in front of their homes.
2. Blocking walkway access to homes
805
Agenda Item # 10.
3. Blocking access to the mailbox for
the mail delivery.
4. Cars parking on people’s
lawn/property causing damage.
806
Agenda Item # 10.
5. Students and parents are not
following the rules of the road.
Student being
dropped off in the
middle of Jardin 807
Agenda Item # 10.
6. Residents has resorted to
placing trash cans and other
means to prevent student
parking.
808
Agenda Item # 10.
7. People are parking unsafely or
illegally to park close to the
school
3’ from a fire hydrant.
Vehicle code states
10’ clearnance.
Parking close to other
vehicle so they can park
close to school
Parking in the wrong
direction
809
Agenda Item # 10.
Field Observation
1. Based on field observation, it appears between 80-90 students park in the surrounding neighborhood
2. Based on my field observation, students are not the
only one parking along Jardin. School staff is
parking off-site. I counted 9 staff parking permits.
810
Agenda Item # 10.
SAFE ROUTE TO SCHOOL
811
Agenda Item # 10.
Impact to the Students and School
1. The student population increase from 1,100 student to 2,200 students at this time.
2. The school continues to expand towards Jardin.
3. The school is in the middle of construction. For this reason, the student parking is severely restricted on site.
4. Student parents stated that students that live in Mountain View does not have a safe route to Los Altos High School so they have to drive.
5. Student parents that lives in Los Altos Hills has stated that students are not able to ride their bike up hill so they have to drive.
6. The school construction will continue till summer of 2025 at this time. For this reason, the student parking can not be accommodated on school property.
7. The school stated that they have about 200 staff and their parking lot is only able to accommodate 240 cars. (rough estimate)
8. The school has already removed a fee to park on campus to encourage students to park on campus..
9. The school has stated that they have been distributing as many parking permits as possible based on available parking space.
10. The school has a potential to park additional 60-80 cars on-site but they will not be able to assess till all construction activity has been completed.
812
Agenda Item # 10.
Parking Restriction Proposal
1. Proposed parking restriction within one block radius of the school. a. Based on field observation, students leave at 12:00 since seniors elects now to have 7th period b. See a lot of the cars are gone by the mid-day
2. The parking restriction will be from 8:00 am to 12:00 pm a. It appears the majority of the parking issue is in the morning. The pickup at the end of the day seems orderly on the most part.
b. Because of the location of vehicle parking, student must cross Jardin to get to their cars. Students are not crossing at the cross walks.
c. The parking restriction will also reduce the need the number of students needing to cross the street. d. Trying to minimize impact to the residents.
3. Make the parking restriction uniform throughout the community. a. The residents along Jardin and surrounding neighborhood is being impacted by no parking along Almond.
b. The purpose of the 1 block radius is to discourage students parking further way from the school. 813
Agenda Item # 10.
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org
DATE: Wednesday, July 10, 2024
TO: Mayors, Council Members, City Clerks, and City Managers RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference and Expo, Oct. 16-18, 2024 Long Beach Convention Center
Every year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy.
Taking place on Oct. 18, the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions.
To cast a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official.
Action by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone.
Following council action, please submit your city’s delegates through the online submission portal by Wed., Sept. 25. When completing the Voting Delegate submission form, you will be asked to attest that council action was taken. You will need to be signed in to your My Cal Cities account when submitting the form.
Submitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide pre-conference communications with voting delegates.
Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration is open on the Cal Cities website.
Council Action Advised by September 25, 2024
814
Agenda Item # 11.
For a city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly.
Please view Cal Cities’ event and meeting policy in advance of the conference.
Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the General Assembly, they may not transfer the voting card to another city official.
Seating Protocol during General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.
The voting delegate desk, located in the conference registration area of the Long Beach Convention Center in Long Beach, will be open at the following times: Wednesday, Oct. 16, 8:00 a.m.-6:00 p.m. and Thursday, Oct. 17, 7:30 a.m.-4:00 p.m. On Friday, Oct. 18, the voting delegate desk will be open at the General Assembly, starting at 7:30 a.m., but will be closed during roll calls and voting.
The voting procedures that will be used at the conference are attached to this memo.
Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates.
Once again, thank you for submitting your voting delegate and alternates by Wednesday, Sept. 25. If you have questions, please contact Zach Seals at [email protected].
Attachments:
• General Assembly Voting Guidelines
• Information Sheet: Cal Cities Resolutions and the General Assembly 815
Agenda Item # 11.
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org General Assembly Voting Guidelines
1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.
2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee.
3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly.
4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution.
5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate.
6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.
7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly.
816
Agenda Item # 11.
Sixty days before the
Annual Conference
and Expo, Cal Cities
members may submit
policy proposals on
issues of importance
to cities. The resolution must
have the concurrence of at least
five additional member cities or
individual members.
How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure Cal Cities represents cities with one voice. These policies directly guide Cal Cities’ advocacy to promote local decision-making, and lobby against statewide policies that erode local control.
The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how resolutions and the General Assembly work.
The petitioned
resolution is an
alternate method
to introduce policy
proposals during
the annual conference. The
petition must be signed by
voting delegates from 10% of
member cities, and submitted to
the Cal Cities President at least
24 hours before the beginning
of the General Assembly.
Petitioned Resolutions
The Cal Cities
President assigns
general resolutions
to policy committees
where members
review, debate, and recommend
positions for each policy proposal.
Recommendations are forwarded
to the Resolutions Committee.
Who’s who
The Resolutions Committee
includes representatives
from each Cal Cities
diversity caucus, regional
division, municipal
department, and policy
committee, as well as
individuals appointed by
the Cal Cities president.
Voting delegates
are appointed by each
member city; every city
has one voting delegate.
The General Assembly is a
meeting of the collective
body of all voting
delegates —one from
every member city.
Seven policy committees
meet throughout the year
to review and recommend
positions to take on bills
and regulatory proposals.
Policy committees include
members from each Cal
Cities diversity caucus,
regional division, and
municipal department,
as well as individuals
appointed by the Cal
Cities president.
During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions
Committee. Potential Cal Cities bylaws
amendments are also considered at this meeting.
Cal Cities policy
development is a memberinformed process,
grounded in the voices and
experiences of city officials
throughout the state.
For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions
Committee considers
all resolutions. General
Resolutions approved1 by
either a policy committee
or the Resolutions Committee are next
considered by the General Assembly.
General resolutions not approved, or
referred for further study by both a
policy committee and the Resolutions
Committee do not go to the General
Assembly. All Petitioned Resolutions
are considered by the General
Assembly, unless disqualified.2
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f). 817 Agenda Item # 11.
City of Los Altos 2024 Tentative Council Agenda Calendar All items and dates are tentative and subject to change unless a specific date has been noticed for a legally required Public Hearing.
Items may be added or removed from the shown date at any time and for any reason prior to the publication of the agenda.
AUGUST 28, 2024 – SPECIAL MEETING
PUBLIC HEARING:
Public Hearing #3 – Discussion of first draft maps
SEPTEMBER 10, 2024
CONSENT:
Accept the On-Call Spot Repair and CCTV Inspection Services for FY23/24 (Public Works) PUBLIC HEARING:
Adopt the IS/MND (Initial Study/Mit. Neg. Dec.) for the Adobe Creek Sewer Main Replacement Project (Pub. Works) Appeal the Approval of Tree Removal Permit (24-0062) for twenty-five (25) Apricot Trees located behind the Los Altos Police Department at 1 N. San Antonio Road (Dev. Svcs.)
SEPTEMBER 24, 2024
Conduct Interview Sessions for the 2024 Commission Recruitment Period Appointment of Commissioners
Remaining 2024 City Council agenda calendar items are pending and will be published at a later date. 818
Agenda Item # 12.
PROGRAM SUB PROJECT INITIATION DATE HEU COMPLETION DATE STATUS Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs).
Budget & Hire Planning
Technician December 31, 2022 COMPLETED
Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs).
Amend ADU Ordinance
based upon HCD's letter 6 months or less IN-PROGRESS
Program 6.G: Housing mobility
Allow more than one
JADU (at least two per
site)
with ADU Ordinance
Update IN-PROGRESS
Program 3.H: Amend design review process and
requirements.
Eliminate 3rd Party
Architectural Review February 28, 2023 COMPLETED
Program 3.H: Amend design review process and
requirements.
Dismiss Design Review
Commission February 28, 2023 COMPLETED
Program 3.L: Eliminate the requirement of story poles. March 31, 2023 COMPLETED Program 2.E: Conduct annual ADU rental income surveys.
Budget & Hire Housing
Manager March 31, 2023 COMPLETED
Program 4.J: Facilitate alternate modes of transportation for Adopt VMT Policy & June 30, 2023 COMPLETED Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs).
RFP-Permit Ready ADU
Plans July 31, 2023 COMPLETED
Program 1.H: Facilitate housing on City-owned sites. Financial Analysis July 1, 2023 December 31, 2023 IN-PROGRESS Program 3.D: Evaluate and adjust impact fees. August 1, 2023 December 31, 2024 IN-PROGRESS Program 1.H: Facilitate housing on City-owned sites. Release RFP December 31, 2023 DEVELOPING RFI/RFP Program 6.C: Target housing development in highest
resource areas. Initial Outreach September 31, 2023
Program 6.D: Promote Housing Choice (Section 8) rental
assistance program. September 31, 2023
Program 2.A: Continue to implement and enhance
inclusionary housing requirements. December 31, 2023 ONGOING Program 2.B: Establish an affordable housing in-lieu fee and commercial linkage fee. Housing in-lieu fee. December 31, 2023 COMPLETED Program 2.F: Water and Sewer Service Providers. December 31, 2023 COMPLETED Program 3.B: Modify building height in mixed-use zoning districts. Downtown Districts December 31, 2023 COMPLETED 819
Agenda Item # 12.
Program 3.E: Ensure that the density bonus ordinance
remains consistent with State law. December 31, 2023 ONGOING Program 3.H: Amend design review process and
requirements. Code Amendments December 31, 2023 COMPLETED Program 3.K: Standardize multimodal transportation
requirements.
Bicycle Storage and
Charging Regulations December 31, 2023 COMPLETED
Program 3.K: Standardize multimodal transportation
requirements.
Remove CSC Review of
Housing Developments December 31, 2023 COMPLETED
Program 4.C: Allow Low Barrier Navigation Centers
consistent with AB 101. December 31, 2023 COMPLETED
Program 4.D: Allow transitional and supportive housing
consistent with State law. December 31, 2023 COMPLETED
Program 4.E: Allow employee/farmworker housing
consistent with State law. December 31, 2023 COMPLETED
Program 4.F: Reasonably accommodate disabled persons’
housing needs. December 31, 2023 COMPLETED
Program 6.B: Maintain and expand an inventory of
affordable housing funding sources. Prepare Inventory. December 31, 2023 Program 6.E: Prepare and distribute anti-displacement
information. December 31, 2023
Program 1.A: Rezone for RHNA shortfall. January 31, 2024 COMPLETED Program 1.G: Rezone housing sites from previous Housing Elements. January 31, 2024 COMPLETED
Program 3.G: Amend Conditional Use Permits findings
applicable to housing developments. March 31, 2024 COMPLETED Program 3.I: Allow residential care facilities consistent with State law. January 31, 2024 COMPLETED
Program 3.J: Explicitly allow manufactured homes consistent with State law. January 31, 2024 COMPLETED
Program 3.F: Reduce Conditional Use Permit requirement for residential mixed-use and
multi-family. September 31, 2024 COMPLETED
Program 1.B: Facilitate higher density housing in the
Commercial Thoroughfare (CT) District. January 31, 2024 COMPLETED 820
Agenda Item # 12.
Program 1.C: Allow housing in the Office Administrative (OA) District. January 31, 2024 COMPLETED
Program 1.E: Update the Loyola Corners Specific Plan. January 31, 2024 COMPLETED Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs).
Adopt-Permit Ready ADU
Plans December 31, 2024 IN-PROGRESS
Program 3.A: Prepare a Downtown parking plan and update citywide parking requirements. Downtown Parking Plan December 31, 2024 IN-PROGRESS Program 3.A: Prepare a Downtown parking plan and update citywide parking requirements.
Comprehensive Parking
Ordinance Update December 31, 2024 COMPLETED
Program 3.B: Modify building height in mixed-use zoning districts.
Neighborhood (CN)
District December 31, 2024 COMPLETED
Program 3.C: Remove floor-to-area ratio (FAR) restriction at Rancho Shopping Center and
Woodland Plaza. December 31, 2024 COMPLETED
Program 3.M: Modify parking requirements for emergency
shelters consistent with State
law. December 31, 2024 COMPLETED
Program 2.B: Establish an affordable housing in-lieu fee and commercial linkage fee. Commercial linkage fee. December 31, 2025 IN-PROGRESS Program 1.D: Allow housing on certain Public and
Community Facilities District sites and
facilitate housing on religious institution properties. December 31, 2025 Program 6.G: Housing mobility
Allow housing on all
religious sites within the
City December 31, 2025
Program 1.F: Rezone Village Court parcel. January 31, 2024 COMPLETED Program 4.H: Provide additional density bonuses and
incentives for housing that accommodates special needs
groups. December 31, 2025
Program 4.I: Allow senior housing with extended care
facilities in multi-family and mixed-use zoning districts. December 31, 2025 Program 1.I: Incentivize Downtown lot consolidation. July 31, 2026 821
Agenda Item # 12.
Program 4.G: Assist seniors to maintain and rehabilitate their homes. July 31, 2026
Program 6.C: Target housing development in highest
resource areas. Follow-up Outreach September 31, 2026
Program 1.H: Facilitate housing on City-owned sites. Entitlement Review December 31, 2026 Program 3.N: Modify standards in the R3 zoning districts. December 31, 2026 COMPLETED Program 4.J: Facilitate alternate modes of transportation for residents.
Capital Improvement
Project for above head
pedestrian crossing
signals on San Antonio
Road near Downtown Los
Altos December 31, 2027
Program 5.F: Incentivize the creation of play areas for multifamily housing projects. December 31, 2027 Program 1.K: Participate in regional housing needs planning efforts. Ongoing
Program 1.L: General Plan amendments. Ongoing
Program 1.M: SB 9 implementation. Ongoing
Program 1.N: Facilitate and monitor pipeline housing
projects. Ongoing
Program 2.C: Assist in securing funding for affordable
housing projects. Ongoing
Program 2.D: Encourage and streamline Accessory Dwelling Units (ADUs). Ongoing
Program 2.E: Conduct annual ADU rental income surveys. Annual Survey Annually ONGOING Program 4.A: Support efforts to fund homeless services. Ongoing Program 4.B: Continue to participate in local and regional forums for homelessness,
supportive, and transitional housing. Ongoing
Program 5.A: Monitor condominium conversions. Ongoing
822
Agenda Item # 12.
Program 5.B: Continue to administer the City’s affordable housing programs. Ongoing
Program 5.C: Restrict commercial uses from displacing
residential neighborhoods. Ongoing
Program 5.D: Implement voluntary code inspection program. Ongoing Program 5.E: Help secure funding for housing rehabilitation and assistance programs. Ongoing
Program 6.A: Assist residents with housing discrimination and landlord-tenant
complaints. Ongoing
Program 6.B: Maintain and expand an inventory of
affordable housing funding sources.
Inform, Evaluate
Apply/Submit Ongoing
Program 6.F: Affirmatively market physically accessible units. Ongoing Program 7.A: Promote energy and water conservation and
greenhouse gas reduction
through education and awareness campaigns. Ongoing
Program 7.B: Monitor and implement thresholds and
statutory requirements of climate change legislation. Ongoing 823
Agenda Item # 12.