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Real Estate and Airport Management

Surplus Property

What is surplus property? 

Surplus property is land owned by any local agency, that is determined to be no longer necessary for the agency's use.  

How does the City decide what property is surplus? 

The City’s process is described in Council Policy 700-41. Most notably, when the City declares a property as surplus, this action requires the action of the City Council so this is a public process.  

After property is declared as “surplus,” the City will send a 60-day Notice of Availability to local public entities and housing sponsors as defined by Section 50074 of the Health and Safety Code, pursuant to California Government Code Section 54222 et seq. If the City does not receive an offer within the prescribed time period or is unable to reach an agreement on the terms of an offer after 90 days of good faith negotiations, the City may issue a solicitation on the open market.   

PDF iconFlowchart: City's process for declaring land surplus

Why does the City have to go through this process? 

In 2019, AB 1486 was signed into law, which aimed to connect developers who are interested in building more affordable homes to surplus local public land that is both available and suitable for housing development. This law made several changes to the requirements in the Surplus Land Act that local agencies must adhere to when disposing of surplus public land. Beginning Jan. 1, 2021, local agencies are required to send negotiation summaries for each surplus land transaction (property sales and ground leases) to the California Department of Housing & Community Development (HCD). 

How do I purchase surplus property? 

If you are a… 

Housing sponsor or housing developer

To be notified of the availability of surplus property for affordable housing development, affordable housing developers should: 

Government Agency

Government agencies are notified through the Notice of Availability process.  

All other entities and agencies

Once a property has gone through the required Notice of Availability process, and assuming that process does not result in the lease or purchase of the property, the City may advertise the property on the open market through a solicitation on Planet Bids.