Page 9 - Lozano Smith Property Checklist

issue that the District may wish to discuss with legal counsel for confirmation, as this is a
new legal requirement.

If any of the above entities is interested in obtaining the property, it must so notify the
District of its interest in purchasing or leasing the land within 60 days of the District’s written
solicitation. (Gov. Code § 54222(e).)

In the event of such notification, the District and the purchasing or leasing entity must enter
into good faith negotiations to determine a mutually satisfactory price. If the price cannot be
agreed upon after a good faith negotiation period of at least 90 days, the District’s
obligations under Government Code section 54222 are discharged. (Gov. Code § 54223(a).)

If the District does not agree to price and terms of sale during the 90-day period described
above, the District can proceed to the next step in the process. However, if negotiations are
unsuccessful and the District ultimately disposes of the land to an entity that uses the
property for development of 10 or more residential units, additional requirements related to
provision of affordable housing units will apply. (Gov. Code, § 54233.)

If none of the above government agencies purchases or leases the property with an option to
purchase under the foregoing procedures, the property must be offered at fair market value
to the following additional entities (Ed. Code § 17464(c)):

In writing to the Director of General Services, Regents of the University of California, the
Trustees of the California State University, the county and city in which the property is
situated, and any public housing authority in the county in which the property is situated,
and to any entity referenced in the paragraph immediately below (regarding Ed. Code §
17464(c)(2)) that has submitted a written request to the District to be directly notified of
the offer for sale or lease with an option to purchase the real property by the District.
(Ed. Code § 17464(c)(1).) This notice must be mailed no later than the date of the second
publication described in the paragraph immediately below.

By public notice, published once per week for three successive weeks (with at least five
days between each publication, not counting the actual publication dates) in a
newspaper of general circulation within the district, specifying that the property is being
made available to any public district, public authority, public agency, and other political
subdivision or public corporation in the state or of the federal government, and to other
nonprofit charitable or nonprofit public benefit corporations. (Ed. Code § 17464(c)(2).)

If any of the above entities is interested in purchasing the property, it must so notify
the District within 60 days of the third publication of the District’s notice of intent to
sell or lease. If the parties do not agree upon a mutually satisfactory price within this
60 day period, the property may be sold or leased by competitive bidding.

LozanoSmith.com Checklist for Sale or Lease of School District Surplus Property 7