Request that the City Council declare pursuant to
government code section 54221 that certain real
property owned by the City and located at 702 & 716
Bennett Valley road and 921 & 927 Rutledge avenue
(APN 038-151-004, 038-151-011, 009-333-009, 009-
333-014) is exempt surplus land that will be
transferred as affordable housing pursuant to
government code 37364
City Council Meeting
January 11, 2022
Jill Scott, Real Estate Manager
Real Estate Services
1 BACKGROUND
• May 2019 – City issued Request for Proposals for affordable housing development on City Property (702 Bennett Valley Road and 921 & 927 Rutledge Avenue).
• September 24, 2019 – City Council selected Freebird as Developer.
• June 19, 2021 – City Council approved Disposition and Development Agreement with Freebird.
• After the City issued the RFP , the State legislature adopted AB 1486, new requirements to the Surplus Lands Act (SLA). 2
NEW SURPLUS LANDS ACT
REQUIREMENTS
▪ Before disposing of any land, the Agency must declare property “surplus land” or “exempt surplus land” and
follow certain procedural requirements laid out for each. ▪ SLA does include exemptions when planning to dispose of land for affordable housing, including an exemption for land that is “transferred pursuant to Section 37364.” This authorizes Agencies to convey land for developing
housing where at least 40% of the total developed units are to be affordable to households whose incomes are
less than or equal to 75% of the maximum income for
lower income households (80% of AMI), and at least half of the affordable units are set aside for very low-income households (50% of Area Median Income).
3 NEW SURPLUS LANDS ACT
REQUIREMENTS
In order to ensure compliance with the Surplus
Lands Act the City Council must therefore adopt a
resolution finding that the conveyance of the
Property pursuant to the DDA is exempt from the
Surplus Lands Act and forward the resolution to HCD
prior to final conveyance.
4 RECOMMENDATION
It is recommended by Real Estate Services, Transportation and Public Works and Housing Departments that the
Council, by Resolution, declare pursuant to Government
Code Section 54221 that real property located at 702
Bennett Valley Road and 921 & 927 Rutledge Avenue (APN
038-151-004, 038-151-011, 009-333-009, 009-333-014) is
“exempt surplus land” under the Surplus Lands Act, and
directing that the Resolution be submitted to the State Department of Housing and Community Development in
accordance with Section 400(e) of the HCD Surplus Lands Act Guidelines. 5
6 QUESTIONS?