 |
AGENDA ITEM NO. 10.
CITY OF HAWTHORNE City Council AGENDA BILL For the meeting of 08/26/2025 Originating Department: City Attorney |
City Manager:
Department Head:
SUBJECT:
RESOLUTION NO. 8549 - DECLARE THE PROPERTY OWNED BY THE CITY OF HAWTHORNE IN ITS CAPACITY AS THE HOUSING SUCCESSOR TO THE FORMER HAWTHORNE COMMUNITY REDEVELOPMENT AGENCY AND LOCATED IMMEDIATELY SOUTH OF 14115 CORDARY AVENUE (ASSESSOR PARCEL NUMBER 4051-030-902) “EXEMPT SURPLUS” UNDER THE SURPLUS LAND ACT (GOVERNMENT CODE SECTIONS 54220 ET SEQ.) IN COMPLIANCE WITH GOVERNMENT CODE SECTION 54221(F)(1)(F).
RECOMMENDED MOTION:
Staff recommends that the city council approve Resolution No. 8549 declaring the property located immediately south of 14115 Cordary Avenue (Assessor Parcel Number 4051-030-902) "exempt surplus” under the Surplus Land Act.
DISCUSSION:
Summary
The property located immediately south of 14115 Cordary Avenue (Assessor Parcel Number 4051-030-902) (“Project Site”) is owned by the City in its capacity as Housing Successor to the former Hawthorne Community Redevelopment Agency (“Housing Successor”). Prior to disposing of the Project Site, the City Council, in its capacity as Housing Successor, must declare the Project Site as surplus land or exempt surplus land. Under Government Code Section 54221(f)(1)(F), property to be developed for rental affordable housing in accordance with that statute can be declared exempt surplus land. This development is in alignment with the City’s 6th Cycle Housing Element Update (2021-2029) (“Housing Element Update”).
Background:
The Project Site was acquired by the former Hawthorne Community Redevelopment Agency in 2011 and has remained with the City in its role as the Housing Successor. In August 2022, the City submitted the adopted Housing Element Update to the California Department of Housing and Community Development (“State HCD”). The adopted final Housing Element Update emphasizes the use of City-owned sites as a key program to increase the supply of affordable housing. As land acquisition is typically a significant cost in developing affordable housing, the use of City-owned land would alleviate the impact of land cost on the feasibility of affordable housing development and allow the City’s limited resources to be used more effectively in producing affordable housing.
Surplus Land Act
The California Surplus Land Act (Government Code Section 54220 et seq.) (“SLA”) requires all local agencies to offer property to affordable housing developers, as well as schools, parks and open space, when disposing of “surplus land.” The California State Legislature updated the SLA significantly in 2019 to expand its requirements. Before a local agency may dispose of land that is no longer necessary for its use, the land must be declared either "surplus land" or "exempt surplus land," as supported by written findings.
For “surplus land,” the City must go through a formal process to offer the land to qualifying entities and negotiate with responsive parties. The SLA also contains exemptions for certain types of land and developments (“exempt surplus land”) where this more extensive process does not apply. One exemption under Government Code section 54221(f)(1)(F), applies to:
“(i) surplus land that is to be developed for a housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, for 55 years for rental housing, 45 years for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands, unless a local ordinance or a federal, state, or local grant, tax credit, or other project financing requires a longer period of affordability, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located, and;
(ii) requires the clause (i) requirements shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.”
The Project Site qualifies for this exemption if it will be restricted to be developed with 100 percent affordable housing in accordance with Government Code section 54221(f)(1)(F)(ii). The attached Resolution declares the Project Site exempt surplus land pursuant to Section 54221(f)(1)(F) and directs that the Resolution be sent to the State HCD for review at least 30 days prior to disposition. HCD will then review the Resolution and will make and provide to the City a finding as to whether the City’s proposed sale will comply with the SLA.
The property located immediately south of 14115 Cordary Avenue (Assessor Parcel Number 4051-030-902) (“Project Site”) is owned by the City in its capacity as Housing Successor to the former Hawthorne Community Redevelopment Agency (“Housing Successor”). Prior to disposing of the Project Site, the City Council, in its capacity as Housing Successor, must declare the Project Site as surplus land or exempt surplus land. Under Government Code Section 54221(f)(1)(F), property to be developed for rental affordable housing in accordance with that statute can be declared exempt surplus land. This development is in alignment with the City’s 6th Cycle Housing Element Update (2021-2029) (“Housing Element Update”).
Background:
The Project Site was acquired by the former Hawthorne Community Redevelopment Agency in 2011 and has remained with the City in its role as the Housing Successor. In August 2022, the City submitted the adopted Housing Element Update to the California Department of Housing and Community Development (“State HCD”). The adopted final Housing Element Update emphasizes the use of City-owned sites as a key program to increase the supply of affordable housing. As land acquisition is typically a significant cost in developing affordable housing, the use of City-owned land would alleviate the impact of land cost on the feasibility of affordable housing development and allow the City’s limited resources to be used more effectively in producing affordable housing.
Surplus Land Act
The California Surplus Land Act (Government Code Section 54220 et seq.) (“SLA”) requires all local agencies to offer property to affordable housing developers, as well as schools, parks and open space, when disposing of “surplus land.” The California State Legislature updated the SLA significantly in 2019 to expand its requirements. Before a local agency may dispose of land that is no longer necessary for its use, the land must be declared either "surplus land" or "exempt surplus land," as supported by written findings.
For “surplus land,” the City must go through a formal process to offer the land to qualifying entities and negotiate with responsive parties. The SLA also contains exemptions for certain types of land and developments (“exempt surplus land”) where this more extensive process does not apply. One exemption under Government Code section 54221(f)(1)(F), applies to:
“(i) surplus land that is to be developed for a housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, for 55 years for rental housing, 45 years for ownership housing, and 50 years for rental or ownership housing located on tribal trust lands, unless a local ordinance or a federal, state, or local grant, tax credit, or other project financing requires a longer period of affordability, and in no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located, and;
(ii) requires the clause (i) requirements shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.”
The Project Site qualifies for this exemption if it will be restricted to be developed with 100 percent affordable housing in accordance with Government Code section 54221(f)(1)(F)(ii). The attached Resolution declares the Project Site exempt surplus land pursuant to Section 54221(f)(1)(F) and directs that the Resolution be sent to the State HCD for review at least 30 days prior to disposition. HCD will then review the Resolution and will make and provide to the City a finding as to whether the City’s proposed sale will comply with the SLA.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
n/a
FISCAL IMPACT:
None
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act.