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(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.
The Board of Supervisors may by ordinance waive the provisions of this Chapter 23A, including those provisions adopted by the voters, as applied to any particular property in order to further the purposes of the Chapter or for other public purposes, including the delivery, creation or expansion of health care, child care, education, open space, public safety, transit and infrastructure. The Board of Supervisors may by ordinance amend any provisions of this Chapter 23A relating to the timeline for reporting and holding public hearings.
(Added by Prop. K, App. 11/3/2016)
In undertaking this Surplus City Property Program, the City and County of San Francisco is assuming an undertaking only to promote the general welfare. It is not assuming, nor is it imposing on its officers, commissions, and employees, an obligation for breach of which it is liable in money damages to any person who claims that such breach proximately caused injury.
(Added by Ord. 227-02, File No. 011498, App. 11/26/2002)
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Chapter 23A or any part thereof is, for any reason, held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Chapter or any part thereof. The Board of Supervisors hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clause or phrases be declared unconstitutional or invalid or ineffective.
(Added by Ord. 227-02, File No. 011498, App. 11/26/2002)