Page 14 - Lozano Smith Surplus Property Checklist 2023
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certain non-profit or civic organizations, if the county board of supervisors finds that
various conditions exist.
Land Exchanges (Ed. Code § 17536): The exchange of real property is exempt from the
surplus property procedures described herein. An exchange of properties with a private
person or entity may be accomplished by a resolution adopted by a two-thirds majority
of the Board. Due to an apparent error made when the Education Code was reorganized,
exchanges with public agencies are no longer as clearly addressed in the Education Code;
legal counsel should be consulted regarding those requirements.
Joint Occupancy (Ed. Code § 17515, et seq.): A school district may lease buildings or
property to other entities for a term of up to 99 years. This can include an arrangement
where the leasing entity makes improvements to school grounds. Effective June 29,
2020, Senate Bill 98 eliminated the requirement that a joint occupancy arrangement be
approved by the State Board of Education.
Certain Employee Housing Projects (Ed. Code § 17456): As of 2018, AB 1157 added
language to Education Code section 17456 regarding the financing of school district
employee housing projects. That statute exempts certain sale/saleback and
lease/leaseback property transactions from the full surplus property process, including
notice and offer requirements and competitive bidding. These types of transactions
generally generate funding through a certificate of participation. The statute now also
specifies that "the construction, reconstruction, or renovation of rental housing facilities
for school district employees" is a permissible capital outlay expenditure for purposes of
such a sale/saleback or lease/leaseback transaction.
Certain Employee Housing Projects (Gov. Code § 65914.7): Starting January 1, 2024, a
housing project is an allowable use on any real property owned by a local educational
agency without the need to follow surplus property procedures if all of the following
criteria are satisfied:
The housing development consists of at least 10 housing units.
The housing development has a 55-year recorded deed restriction that ensures
that most of the units are affordable to lower income or moderate-income
households, with at least 30 percent of the units lower-income.
All of the units of the housing development shall be rented by local educational
agency employees, local public employees, and other members of the public
pursuant to legally specified procedures.
The residential density for the housing development, as measured on the
development footprint, must be the greater of the density allowed by the city or
county or that deemed appropriate to accommodate housing for lower-income
households in the jurisdiction.
The height limit for the housing development shall be the greater of that allowed
by the city/county or 35 feet.
The property is adjacent to a property that principally permits residential uses.
{SR809018}
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