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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)