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For purposes of this Chapter 23A:
"Administrator" shall mean the City Administrator as set forth in Section 3.104 of the City's Charter.
"Affordable Housing" shall mean housing that is restricted as affordable to households earning up to 120% of the Area Median Income, and may also include housing for Homeless or formerly Homeless persons.
"Area Median Income" shall have the meaning set forth in Charter Section 16.110.
"Education Districts" shall mean the San Francisco Unified School District and the San Francisco Community College District.
"Enterprise Departments" shall mean the following City departments: the Port, the Airport, the Public Utilities Commission, the Municipal Transportation Agency, the Recreation and Parks Commission and the Fine Arts Museums Board of Trustees.
"Executive Director" shall mean the Executive Director of the MOHCD.
"Homeless" shall mean:
1. an individual or family who lacks a fixed, regular and adequate nighttime residence; or
2. an individual or family who has a primary nighttime residence that is:
A. a supervised publicly or privately operated shelter designed to provide temporary living accommodations; or
B. an institution that provides a temporary residence for individuals who have been institutionalized; or
C. a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings; or
3. families with minor children living in single resident occupancy rooms and other overcrowded housing conditions.
"Housing Trust Fund" shall mean the Housing Trust Fund established by the City under Charter Section 16.110.
"Middle Income Housing" shall mean housing that is affordable to households earning up to 150% of Area Median Income.
"MOHCD" shall mean the Mayor's Office of Housing and Community Development, and any successor City department.
"Property" shall mean any real property located within and owned by the City and County of San Francisco of one-quarter acre or more, excluding land and buildings reserved or intended to be reserved for open space or parks purposes, any land dedicated for public right-of-way purposes, any land used or reserved for transit lines, or public utility rights-of-way, or any publicly dedicated streets or rights-of-way. "Property" shall not include any real property owned by or on behalf of the Education Districts.
"State Surplus Property Statute" shall mean California Government Code Sections 54220 through 54233, as may be amended or supplanted.
"Surplus Property" shall mean any Property that is not required to fulfill the mission of the City department, commission or agency with jurisdiction or control of such Property and that is not required to fulfill the mission of another governmental agency pursuant to an inter-governmental transfer, and shall not include any land to be exchanged for other land to be used by a City department in accordance with an existing letter of intent or agreement;
"Underutilized Property" shall mean an entire Property or portion thereof (including air rights), with or without improvements, that is used by the City only at irregular periods of time or intermittently, or that is used by the City for current purposes that can be satisfied with only a portion of such Property, or that is not currently occupied or used by the City and for which there are no plans by the City to occupy or use such Property, and that has a potential for development as Affordable Housing while maintaining the existing and anticipated City uses of the Property.
By November 1 of each year, each City commission, department or agency shall compile and deliver to the Administrator a list of all Property that it occupies or is otherwise under its control. The list shall include at least the following:
(a) The street address of the Property (if there is one), and the Assessor's block and lot number;
(b) A general description of the Property, including the land size, dimensions and topography;
(c) The current use of the Property; and
(d) A general description of any structure(s) on the Property as well as an assessment of their physical condition.
Each City commission, department or agency shall maintain or shall work with the Administrator to maintain adequate inventory and accountability systems for the Property under its control to determine which Properties are Surplus or Underutilized for purposes of this Chapter 23A, and shall reasonably cooperate with requests for information from the Administrator. The Board shall appropriate funds to the Administrator to perform the functions set forth in this Chapter 23A.
(Added by Ord. 227-02, File No. 011498, App. 11/26/200; amended by Prop. K, App. 11/3/2016)
(a) The Administrator shall review the list of Property submitted by City departments pursuant to Section 23A.5 to identify any Property that may be Surplus Property or Underutilized Property, and shall strike from this initial list any Property that does not meet the definition of Surplus Property or Underutilized Property under Section 23A.4, is under the jurisdiction of the Recreation and Park Department, the Airport or the Port, is part of the public right-of-way, or is subject to deed restrictions or other legal restrictions that would prevent the City from disposing of such Property pursuant to this Chapter 23A. The Administrator shall also provide to the Board of Supervisors a copy of the initial list upon request. No property shall be deemed Underutilized on the basis of available air rights if the applicable department head determines that development of such air rights would conflict with existing or planned future uses consistent with the department’s mission on that property. The Administrator shall also contact the Education Districts to ask if they have any surplus properties suitable for the development of Affordable Housing. The Administrator shall further consult with other City departments, the Mayor, and members of the Board of Supervisors to identify any Property listed on the initial list for which a City department other than the department with current jurisdiction has a specific operational need and shall remove such Properties from the Surplus Property Report. The Administrator shall thereafter initiate the transfer of jurisdiction over those identified Properties to the departments that can utilize them. The Administrator shall state in writing the reasons for the removal of each Property from the initial list and shall provide such report to MOHCD and the Board of Supervisors.
(b) By February 1 of each year, the Administrator shall compile a comprehensive report for the remaining Property listed that includes, at a minimum, the following information: the street address, if any, and the block and lot number for each Property; the City department with jurisdiction over each Property; a description of the zoning applicable to each Property; whether the property is vacant or intended to be vacant, contains any existing structures, and any additional information relevant to the potential development of the Property for Affordable Housing, including any legal restrictions or limitations on development of the Property such as the terms and conditions of any gift, trust, deed restriction, bond covenant or other covenants or restrictions (the "Surplus Property Report"). The Surplus Property Report shall also include a list of any and all City-owned properties that are adjacent to each listed Property and appear to be vacant or underutilized, along with the identification of the City department with jurisdiction over such adjacent property. The Surplus Property Report may include any property of the Education Districts for information purposes only. No later than March 1 of each year, the Administrator shall transmit the completed Surplus Property Report to MOHCD and to the Board of Supervisors. If the Administrator determines that there is no Surplus Property or Underutilized Property suitable for the development of Affordable Housing, the Administrator shall notify the Board of Supervisors of this determination. The Administrator shall maintain and release written records of all information compiled under this Chapter 23A in conformance with all state and local laws governing the retention and disclosure of public records.
(c) No later than April 15 of each year, the Board of Supervisors or a committee thereof shall hold a public hearing on the Surplus Property Report and determine if any Property should be transferred to MOHCD under Section 23A.7, provided the Board President may elect not to hold a hearing during any year in which the Administrator has determined that there is no Surplus Property or Underutilized Property suitable for the development of Affordable Housing. With respect to the Enterprise Departments and the Education Districts, the Board of Supervisors may make a recommendation of surplus and transfer, but the Enterprise Departments and the Education Districts shall each have the right to determine whether real property under its jurisdiction is surplus or underutilized and whether to dispose of property in any particular manner subject to the requirements of the City's Charter and California law.
(d) For a period of 120 days following the public hearing held under subsection (c) above, the City shall not initiate a request for bids or proposals or enter into contracts designed to facilitate the sale of Property (including brokerage and appraisal contracts) that the Board intends to transfer to MOHCD for any purpose other than the development of Affordable Housing, without the prior approval of the Board of Supervisors.
(a) Following the Board of Supervisors hearing under Section 23A.6(c) and no later than June 1 of each year, MOHCD shall evaluate the feasibility of each property for Affordable Housing based on typical development standards of site planning and constructability, and prepare a report to the Administrator identifying the properties suitable for Affordable Housing and those that are not suitable for Affordable Housing and explaining MOHCD's analysis and conclusions. The feasibility report shall be made available to all interested parties that have notified the Administrator to be placed on a notification list for this purpose.
(b) Following receipt of the MOHCD feasibility report, the Administrator shall prepare and submit to the Mayor and Board of Supervisors legislation either transferring jurisdiction over Surplus Properties to MOHCD or to another City department for such department's use, or seeking to sell such properties, as determined by the Administrator. The Administrator shall also provide to the Mayor and the Board of Supervisors a copy of the MOHCD feasibility report, and shall make recommendations to the Board regarding any proposed development of Underutilized Property for Affordable Housing.
(c) For those Surplus Properties transferred to MOHCD, the Executive Director shall publicize the availability of the Surplus Properties and seek applications for development of the Surplus Properties on a competitive basis in keeping with MOHCD's standard practices. The Executive Director also shall take all steps necessary to comply with the State Surplus Property Statute. For Underutilized Properties, the City department with jurisdiction over the property (excluding the Enterprise Departments) shall take action consistent with direction of the Board of Supervisors. With respect to real property under the jurisdiction of Enterprise Departments or the Education Districts, the Board of Supervisors may urge the Enterprise Departments or the Education Districts to consider approving a sale of such property for Affordable Housing or a transfer of such property to MOHCD for Affordable Housing. If an Enterprise Department or an Education District elects to transfer real property to MOHCD, the Administrator shall then prepare and submit to the Mayor and Board of Supervisors the appropriate legislation to accept the property for the development of Affordable Housing.
(Added by Ord. 227-02, File No. 011498, App. 11/26/2002; amended by Ord. 93-04, File No. 040537, App. 5/27/2004; Prop. K App. 11/3/2016)
(a) All real property transferred to MOHCD under this Chapter 23A shall be used to create Affordable Housing, and may include housing designed for Homeless or formerly Homeless individuals. The Executive Director shall seek to maximize the amount of Affordable Housing throughout MOHCD's real estate portfolio, subject to the availability of funds, and nothing in this Chapter shall limit the total number of Affordable Housing units that can be developed on any real property. MOHCD shall solicit development proposals on a competitive basis and impose income restrictions on all housing created under this Chapter in accordance with MOHCD's standard procedures and practices and guided by the priorities set forth below and in accordance with housing needs and performance measures identified in the City's Consolidated Plan, including target populations for affordable housing production over the previous two years. Subject to any disposition priority required by State law and other limitations expressly set forth herein, the development of all Surplus and Underutilized Property should be guided by the following priorities:
(1) First, for the development of affordable housing for people who are Homeless and persons earning less than 20% of the Area Median Income, provided that:
(A) The housing shall remain affordable for the useful life of the project;
(B) Housing costs in such housing shall not exceed 30% of the resident's income;
(C) Projects in which people who are Homeless rehabilitate and renovate property in exchange for their tenancy or "sweat equity" in the property shall be encouraged.
(2) Second, for the development of very low and low income affordable housing for persons earning no more than 60% of the Area Median Income, provided that the housing shall remain affordable for the useful life of the project.
(3) Third, for the development of mixed income housing projects for extremely low, very low, low and moderate income Affordable Housing as defined in Section 23A.4; provided that for any rental project, not less than 15% of the units will be affordable to households earning 55% of the Area Median Income, and for any ownership project, not less than 15% of the units will be affordable to households earning 90% of the Area Median Income.
(b) Notwithstanding Section 23A.8(a), for sites with development capacity of 200 or more units as determined by the Executive Director, the Executive Director may propose to use the property for a mixed-income housing project, including Middle Income Housing, by a qualified developer selected on a competitive basis. The Executive Director shall select a developer or co-developer that has at least five years experience developing and maintaining housing for seniors, veterans, the disabled or low income families in San Francisco. Not less than 33% of the residential units developed on the property must be Affordable Housing, and (1) for any rental project, not less than 15% of the units affordable to households earning 55% of the Area Median Income, and for any ownership project, not less than 15% of the units affordable to households earning 90% of the Area Median Income, and (2) subject to financial feasibility, at least 50% of the residential units developed on the property affordable in furtherance of the November 2014 Proposition K affordable housing goals. All deed restricted housing developed as part of these projects shall remain affordable for the useful life of the project.
(c) If the Executive Director determines that any real property transferred to MOHCD under this Chapter 23A cannot be developed and used for Affordable Housing, the Executive Director shall prepare and submit to the Mayor and Board of Supervisors legislation either transferring jurisdiction over such property from MOHCD to another City department for such department's use or seeking to sell such property. It shall be City policy to encourage the sale of such property in accordance with the requirements of Administrative Code Section 23.3 and other applicable laws and to designate use of the net proceeds of such sales for the purpose of financing Affordable Housing in San Francisco.
(d) For any Property that is not transferred to MOHCD under this Chapter 23A but that the City sells for the development of 10 or more residential units, not less than 33% of the residential units developed on the property must be Affordable Housing, and (1) for any rental project, not less than 15% of the units affordable to households earning 55% of the Area Median Income, and for any ownership project, not less than 15% of the units affordable to households earning 90% of the Area Median Income, and (2) subject to financial feasibility, at least 50% of the residential units developed on the property affordable in furtherance of the November 2014 Proposition K affordable housing goals. All deed restricted housing developed as part of these projects shall remain affordable for the useful life of the project.
(Added by Ord. 227-02, File No. 011498, App. 11/26/2002; amended by Ord. 93-04, File No. 040537, App. 5/27/2004; Prop. K, App. 11/3/2016)
(Added by Ord. 93-04, File No. 040537, App. 5/27/2004; amended by Ord. 291-04, File No. 041316, App. 12/14/2004; repealed by Ord. 4-19, File No. 180217, App. 1/25/2019, Eff. 2/25/2019)
The City shall be guided by the following policy regarding the disposition of Surplus and Underutilized Property, which policy shall be the official policy of the City. This policy applies to Surplus and Underutilized Property regardless of whether such Property has been included in an annual Surplus Property Report.
(a) In furtherance of the State Surplus Property Statute, the City shall ask all local agencies that own real property within the City and County of San Francisco (including the Education Districts, the Bay Area Rapid Transit District, and other local agencies) and that intend to dispose of real property located in the City consisting of one-quarter acre or larger, to give the Executive Director advance notice of the proposed disposition together with an opportunity to negotiate for the acquisition of such real property for a period of not less than 120 days.
(b) Upon receipt of any such notice under subsection (a) above, if the Executive Director determines that the real property is feasible for Affordable Housing, the Executive Director shall negotiate in good faith to acquire the property and, if successful, shall seek an appropriation and any required approvals for such acquisition. If the Executive Director determines that the real property is suitable for Affordable Housing but that the City cannot acquire the property for financial or other reasons, the Executive Director shall notify Affordable Housing developers of the proposed disposition so that they may seek to acquire the property. The Executive Director shall maintain a list of Affordable Housing developers that are active in the City for purposes of this notification.
(c) Pursuant to the State Surplus Property Statute, and 2014 Proposition K affordable housing goals, if the Executive Director and the non-City local agency negotiate in good faith but cannot reach agreement on the terms for the City's acquisition of the real property, and the local agency then disposes of the property to another person or entity for the development of 10 or more residential units, then: (1) the local agency shall require that not less than 15% of the residential units developed on the property be affordable housing; and (2) rental units shall remain affordable to, and occupied by, lower income households for the useful life of the project, each as determined in accordance with the State Surplus Property Statute, as it may be amended. These requirements shall be contained in a covenant or restriction recorded against the real property at the time of disposition and be enforceable by the local agency against any subsequent owner.
(d) The Board of Supervisors encourages all non-City local agencies that intend to dispose of real property in the City to determine the fair market value of that real property assuming that not less than 33% of the total number of units developed on that property will be affordable housing, to the extent permitted by applicable law. Any local agency selling or leasing real property to the City for affordable housing may provide for an extended payment period equal to the period during which the property will be restricted as affordable housing.
(e) Nothing in this Section 23A.10 shall be interpreted to limit the power of any local agency to sell or lease real property at fair market value or at less than fair market value, consistent with applicable law.
(Added by Ord. 227-02, File No. 011498, App. 11/26/2002; amended by Ord. 93-04, File No. 040537, App. 5/27/2004; Ord. 291-04, File No. 041316, App. 12/14/2004; Prop. K, App. 11/3/2016)
(a) Subject to (1) the terms and conditions of any gift, trust, deed restriction, bond covenant or other covenants or restrictions, mortgage, deed of trust, lease, license, use agreement or other agreement applicable to such Property, (2) state or federal laws related to the disposition of surplus property, including, without limitation, the State Surplus Property Statute, and (3) the jurisdictional authority over Property granted to certain commissions under the City's Charter, including, without limitation, as set forth in Charter Sections 4.112, 4.113, 4.114, 4.115, 5.101, 8A.102, 8B.121 and Appendix B3.581, the Board of Supervisors may by resolution approve the dispositions recommended by the Executive Director in accordance with this Chapter 23A or approve dispositions different from those recommended by the Executive Director. Upon approval of such a resolution, it shall be the duty of the Executive Director to take all steps necessary to implement the resolution. For the avoidance of doubt, property acquired by the City in the future for the specific purpose of developing housing shall not be deemed Surplus or Underutilized for purposes of this Chapter 23A, and the terms of Board of Supervisors approval of any purchase, sale or transfer agreement relative to such Property shall govern the subsequent development arrangements.
(b) Any final declaration that Property is Surplus or Underutilized and any final conveyance of Property under this Chapter 23A shall be in accordance with and subject to all applicable laws, including (1) the terms and conditions of any gift, trust, deed restriction, bond covenant or other covenants or restrictions, mortgage, deed of trust, lease, license, use agreement or other agreement applicable to such Property, (2) state or federal laws related to the disposition of surplus property, including, without limitation, the State Surplus Property Statute, (3) the jurisdictional authority over Property granted to certain commissions under the City's Charter, including, without limitation, as set forth in Charter Sections 4.112, 4.113, 4.114, 4.115, 5.101, 8A.102, 8B.121 and Appendix B3.581, and (4) the requirements set forth in Administrative Code Section 23.3 of further Board of Supervisors approval by resolution or ordinance of final transaction documents after the completion of all required environmental review under the California Environmental Quality Act (Cal. Pub. Res. Code Secs. 21000 et seq.), provided, however, that the requirements set forth in Section 23.3 of sale by public auction or competitive bidding and a sales price of at least 100% of appraised fair market value shall not apply to dispositions pursuant to this Chapter. Any such duly approved conveyance may be at no cost or less than fair market value as a conveyance that furthers a proper public purpose.
(c) Any conveyance of Property at less than fair market value for Affordable Housing under this Section 23A.11 shall include covenants that require that the Property be used for Affordable Housing in conformance with this Chapter 23A and prohibits any developer of Property from reselling, transferring or subleasing Property at a profit, or such other "anti-speculation" requirements as the Executive Director may approve.
(d) Any City department other than an Enterprise Department wishing to dispose of Surplus or Underutilized Property under such department’s jurisdiction in a manner other than pursuant to this Chapter 23A, regardless of whether such Surplus or Underutilized Property is listed on the then current Surplus Property Report, shall notify the Administrator, the Executive Director, the Board of Supervisors, and interested parties that have notified the Administrator to be placed on a notification list for this purpose, prior to seeking any approvals of any proposed disposition. The notice shall include the same information about the Surplus or Underutilized Property required under Section 23A.5. The Administrator and the Executive Director shall review such information and, within 45 days after submission, make recommendations to the Board of Supervisors regarding the disposition of the Surplus or Underutilized Property consistent with the policy set forth in Section 23A.10. The Board of Supervisors may by resolution approve a disposition consistent with such recommendations and this Chapter or approve a different disposition. Upon approval of such a resolution, it shall be the duty of the Administrator, the Executive Director, and other City officials, as appropriate, to take all steps necessary to implement the resolution.
(e) The failure by any City department to comply with this Chapter 23A shall not invalidate the transfer or conveyance of any real property to a purchaser or encumbrancer for value.
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