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The property is located on an infill site as defined by law.
The development satisfies other local objective zoning standards, objective
subdivision standards, and objective design review standards that do not preclude
the housing development from achieving the permitted residential density or
height.
The property is located entirely within any applicable urban limit line or urban
growth boundary established by local ordinance.
The housing development complies with all infrastructure-related requirements,
including payment of impact fees to local governments.

IX. Use of Proceeds of Sale or Lease with Option to Purchase
Statutory limitations on the use of the proceeds of the sale of surplus property apply to (1)
sales and (2) leases with the option to purchase. They do not apply to leases with no option
to purchase.

The proceeds of the sale of surplus property generally must be used for capital outlay or non-
recurring maintenance costs. The proceeds of a lease with option to purchase may be
deposited in a restricted fund for routine repairs for up to a 5-year period. The proceeds
must be used for one-time expenditures, and may not be used for ongoing expenditures,
such as general operating expenses. (Ed. Code § 17462(a).)

With concurrence of the State Allocation Board that the District has no anticipated need for
additional sites or construction in the next ten years or major deferred maintenance
requirements, the District may surrender its state facility funding eligibility for those ten
years and place the proceeds into its general fund, again for one-time expenditures. (Ed.
Code § 17462(a).)

Subject to certain conditions and State Allocation Board concurrence, a school district having
an average daily attendance of less than 10,001 in any fiscal year may deposit interest
earned on the funds from a sale of surplus property in that fiscal year into the general fund
for any general fund purpose, while surrendering state facilities funding for ten years. (Ed.
Code § 17463.)

Under Senate Bill 98, effective on June 29,2020, the Legislature revived Education Code
section 17463.7, which authorizes school districts to deposit the proceeds of the sale of
surplus property that was purchased entirely with local funds into the general fund for one-
time expenditures if certain conditions are met. This legislation will expire on July 1, 2024,
but for any transaction for the sale or lease with option to purchase that a school district
initiates between June 29, 2020, and July 1, 2024, and for the proceeds from that sale or
lease transaction that are received after June 30, 2024, are still considered proceeds that
can be deposited in accordance with this section. (Ed. Code § 17463.7.)

Effective as of October 2, 2013, the Legislature authorized the State Allocation Board (SAB)
to establish a program requiring school districts to return state school facilities funding to the

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