SURPLUS LAND ACT OVERVIEW
Requirements, Process, Challenges, and Opportunities
for City-Owned Property
City Council Meeting
July 21, 2026
Item 10.1
Purpose of Presentation
• Legislative background of the California Surplus Land Act (SLA) • Explain when and how the Act applies
• Disposition process
• Agency (City) statutory obligations
• Discuss implementation challenges and best practices
• Preview potential opportunities for future City-owned property dispositions
Why the SLA Exists
• 1968: SLA first enacted
• 2019: First major overhaul
• Prioritize affordable housing
• Increase transparency in public land disposition
• Encourage productive reuse of publicly owned property • California Department of Housing & Community Development (HCD) enforcement
• 2024: Most recent updates
• Clarifications to process
• Refined exemptions
• Reduced technical penalties
• Purpose: Prioritize affordable housing while establishing a transparent process for disposition of public land
What is “Surplus Land”
• Definition of Surplus Land: Land that has been formally declared, in a public meeting, to be no longer necessary for the agency’s use • Definition of Exempt Surplus Land: Property that qualifies for specific exemptions under the SLA
• Inter-agency Transfers
• Affordable Housing Development
• Small Sites (less than one-half acre); not contiguous to agency/state owned open-space or low- and moderate-income housing purposes • Former street, right of way, or easement, conveyed to owner of adjacent property
• Council approval of dispositions is always required, and exempt declarations must have findings
Overview of Disposition Process
• City Determines Property No Longer Needed
• Internal memo for Department Heads; City Manager concurrence • Determine Surplus vs Exempt, if Surplus:
• Council Declaration
• Notice of Availability (if required) – See Next Slide • 60-Day Response Period
• 90-Day Good Faith Negotiation
• Disposition
• Exclusive Negotiating Rights Agreement (ENRA); sale; lease greater than 15 years
• Compliance Documentation
• Submission to HCD
• Deed restriction/Land Use Covenant Recording
Notice of Availability (NOA)
• Distribution to:
• HCD List
• Housing Sponsors
• Public Agencies
• Process:
• 60-Day Response Window
• If no response received, proceed with disposition
• If interest received, proceed with good faith negotiations • Good Faith Negotiation:
• 90-Day Negotiation Period
• Either agreement of terms, or no agreement reached
• City retains discretion after satisfying statutory obligations • HCD compliance considerations
Implementation Challenges
• Staffing
• Institutional knowledge
• Consistent practices over time
• Record Retention
• Legacy paper and electronic records
• Long-term compliance documentation (e.g., deed restrictions) • Interdepartmental Coordination
• Real Property – Housing – Planning – City Attorney – City Clerk – Public Works – MUD – IT
Best Practices
• Website landing page
• www.stocktonca.gov/surplus
• Unsolicited Business Proposal process (pending)
• Standardized resolutions
• Surplus vs Exempt Surplus (with justification)
• Compliance checklists
• Centralized records
• Cross-department coordination
• Proactive evaluation of City-owned properties
• Permanent documentation/tracking
• Deed restrictions
• Disposition process
• Updating outdated Dispositions Policies (pending)