HomeMy WebLinkAbout14 RESOLUTION DECLARING APN 500-071-12 EXEMPT FROM REVISED SLA DocuSign Envelope ID: BEEAB75A-8508-4310-BF6D-8D90EB180C2B
Agenda Item 14
DS
Reviewed: �,?5W
1W AGENDA REPORT City Manager
Finance Director N/A
MEETING DATE: FEBRUARY 1 , 2022
TO: MATTHEW S. WEST, CITY MANAGER
FROM: ECONOMIC DEVELOPMENT DEPARTMENT
SUBJECT: RESOLUTION DECLARING ASSESSORS PARCEL NUMBER
(APN) 500-071-12 EXEMPT FROM THE REVISED SURPLUS
LAND ACT
SUMMARY
Resolution 22-04 will declare APN 500-071-12 exempt from the revised Surplus Land Act
(SLA) pursuant to California Government Code Sections 54221 (f)(1)(A) and 54234 and
the Final Surplus Land Act Guidelines Sections 103(b)(1)(A) and 103(b)(3)(A).
RECOMMENDATION
It is recommended that the City Council take the following actions:
1 . Adopt Resolution 22-04: A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUSTIN, CALIFORNIA, DECLARING CERTAIN REAL PROPERTY
COMPRISED OF ASSESSORS PARCEL NUMBER 500-071-12 EXEMPT FROM
THE REVISED SURPLUS LAND ACT PURSUANT TO CALIFORNIA
GOVERNMENT CODE SECTIONS 54221(f)(1)(A) AND 54234 AND THE FINAL
SURPLUS LAND ACT GUIDELINES SECTIONS 103(b)(1)(A) AND 103(b)(3)(A).
2. Authorize the City Manager to sign and direct staff to submit the appropriate
documentation to the California Department of Housing and Community
Development in connection with the Resolution.
FISCAL IMPACT
Not applicable
BACKGROUND
The Surplus Land Act (SLA) defines the process for local agencies to follow when
disposing of surplus parcels of land owned in fee that are no longer needed for the City's
use. The SLA set general timelines for posting notification of available surplus property,
defined the process for negotiating with an affordable housing developer in the event one
DocuSign Envelope ID: BEEAB75A-8508-4310-BF6D-8D90EB180C2B
Agenda Report—Surplus Property Declaration
February 1, 2022
Page 2
expresses interest, and the process for disposition absent any notification of interest or in
the event negotiations do not result in a sale to a qualifying affordable housing developer.
Assembly Bill 1486 (Ting, 2019) amended the SLA and significantly changed the terms
of the SLA, as well as added substantial penalties for noncompliance. The Final Housing
and Community Development Department (HCD) Guidelines (Final HCD Guidelines) for
compliance with the SLA were published in April 2021 .
The SLA and Final HCD Guidelines grant certain exemptions for various types of
property, and for property subject to certain agreements, including Exclusive Negotiating
Agreements (ENAs) that were entered into prior to September 30, 2019. In addition, the
SLA and Final HCD Guidelines grant certain exemptions for surplus land that is
transferred pursuant to Section 37364 of the Government Code.
The City and Family Promise of Orange County (Family Promise) entered into an ENA in
November 2018, and a Disposition and Development Agreement (DDA) on February 18,
2020, in order to develop housing affordable to low income families who find themselves
homeless. The "House of Ruth", a seven-unit apartment development with a resource
center and office will serve as transitional housing for homeless families.
DISCUSSION
Resolution 22-04 states the findings and declares Assessors Parcel Number 500-071-12
that comprises the House of Ruth project property exempt from the requirements of the
revised SLA pursuant to Government Code Sections 54221(f)(1)(A) and 54234 and the
Final HCD Guidelines Sections 103(b)(1)(A) and 103(b)(3)(A). There are no additional
SLA requirements on these parcels as long as Close of Escrow occurs before December
31 , 2022.
DocuSigned by: `` DocuSigned by:
C,U,V'tS�b IA,f,V, i`oSft,V'
C rIS't�3��leWoster Jerry usl565'465._.
Director of Economic Development Deputy Director of Economic Development
ATTACHMENTS
- Resolution 22-04
DocuSign Envelope ID: BEEAB75A-8508-4310-BF6D-8D90EB180C2B
RESOLUTION NO. 22-04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, DECLARING CERTAIN REAL
PROPERTY COMPRISED OF ASSESSORS PARCEL
NUMBER 500-071-12 EXEMPT FROM THE REVISED
SURPLUS LAND ACT PURSUANT TO CALIFORNIA
GOVERNMENT CODE SECTIONS 54221(f)(1)(A) AND
54234 AND THE FINAL SURPLUS LAND ACT GUIDELINES
SECTIONS 103(b)(1)(A) and 103(b)(3)(A).
WHEREAS, the City of Tustin (City) owns certain real property comprised of
Assessors Parcel Number 500-071-12 (the "Property"); and
WHEREAS, the City is transferring the Property for the development of housing
affordable as described in Government Code Section 37364; and
WHEREAS, the Legislature reaffirmed in Government Code Section 37364 that
real property of cities can be utilized, in accordance with a city's best interests, to provide
housing affordable to persons and families of low or moderate income; and
WHEREAS, the City has determined that is in the City's best interests to provide
housing affordable to persons and families of low or moderate income by conveying the
Property for the development of transitional housing for homeless families who are
extremely low to low income; and
WHEREAS, the Legislature reaffirmed in Government Code Section 37364 that
real property of cities can be conveyed to provide housing affordable under whatever
terms and conditions the city deems best suited to the provision of such housing; and
WHEREAS, the City has determined to convey the Property for housing affordable
under the terms and conditions the City deems best suited to the provision of such
housing and those terms and conditions serve the need for transitional housing for low
income families; and
WHEREAS, the City Council finds that one hundred percent of the Property will be
developed for housing affordable to families of low or moderate income in accordance
with Government Code Section 37364(b); and
WHEREAS, the City Council finds that the Property will be developed in order for
one hundred percent of the units shall be affordable to households who incomes are equal
to, or less than, seventy-five percent of the maximum income of lower income households
and at least half of which shall be affordable to very low income households in accordance
with Government Code Section 37364(c); and
DocuSign Envelope ID: BEEAB75A-8508-4310-BF6D-8D90EB180C2B
WHEREAS, the Property will be conveyed to Family Promise to develop the
seven-unit House of Ruth project for families of low income and the Property shall be
restricted by a Declaration of Covenants and Restrictions (Regulatory Agreement) to
remain continually affordable to those persons and families for at least 55 years, in
accordance with Government Code Section 37364(d); and
WHEREAS, the Regulatory Agreement defines low income households in
accordance with Sections 50079 and 50093 of the Health and Safety Code; and
WHEREAS, the Property is being conveyed pursuant to an Exclusive Negotiating
Agreement with Family Promise (ENA) that was executed in November 2018 and a
Disposition and Development Agreement with Family Promise (DDA) that was executed
in February 2020, and the City plans to dispose of the Site pursuant to the requirements
of the ENA and DDA; and
WHEREAS, existing law established the Surplus Land Act (SLA)for local agencies
to follow when disposing of surplus properties no longer needed for the City's use; and
WHEREAS, on October 9, 2019, California Governor Gavin Newsom signed
Assembly Bill 1486 (Ting) into law, making substantive amendments to the SLA effective
January 1 , 2020; and
WHEREAS, the amended SLA requires local agencies to declare land as "surplus
land" or "exempt surplus land" prior to disposing of property owned by the local agency;
and
WHEREAS, the final Surplus Land Act Guidelines were published by the California
Housing and Community Development Department in April 2021 with additional guidance;
and
WHEREAS, since the ENA applicable to the Property was approved and executed
prior to September 30, 2019, the Property falls within the parameters of Government
Code 54234 and the Final Surplus Land Act Guidelines Section 103(b)(1)(A); and
WHEREAS, since the disposition of the Property falls within the parameters of
Government Code 54221(f)(1)(A), Government Code Section 37364, and the Final
Surplus Land Act Guidelines Section 103(b)(3)(A), the Property is exempt surplus
property for purposes of the Surplus Land Act and the Surplus Land Act Guidelines.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF TUSTIN, THAT:
1 . The foregoing recitals are hereby incorporated and adopted as the findings of
the City Council; and
DocuSign Envelope ID: BEEAB75A-8508-4310-BF6D-8D90EB180C2B
2. The Property comprised of APN 500-071-12 is hereby declared "exempt
surplus land" as defined in Government Code Section 54221 and, pursuant to
Government Code Section 54222.3, the Surplus Land Act shall not apply to the
disposal of the Property.
PASSED and ADOPTED by the City Council of the City of Tustin at a regular
meeting on 1 st day of February, 2022.
AUSTIN LUMBARD,
Mayor
ATTEST:
ERICA N. YASUDA,
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council of
the City of Tustin is five; that the above and foregoing Resolution No 22-04 was duly
passed and adopted at a regular meeting of the Tustin City Council, held on the 1st day
of February, 2022 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
ERICA N. YASUDA,
City Clerk