Surplus Property

When the Banning City Council wishes to sell or otherwise dispose of almost all* City-owned property, they are now bound by the requirements of the Surplus Lands Act (more information on this statute is provided below).  Briefly, this means that each property must be declared by the City Council as "surplus land," defined by the Act as any land "not needed for the agency's use" GC§ 54221(b). 

Following the declaration of surplus, the City distributes a Notice of Availability (NOA) to eligible entities (defined in greater detail below), including the California Department of Housing and Community Development (HCD), any local public entity within the jurisdiction where the surplus local land is located, and developers who have notified HCD of their interest in developing affordable housing on surplus local land.

Any eligible entity desiring to purchase or lease the surplus land for any of the purposes described above must notify the City in writing of its intent to purchase or lease the land within 60 days after receipt of the City’s NOA. 

If the City receives notice of interest from any eligible entities, the SLA mandates a 90-day negotiation period with any designated entities that submit timely offers. If no notice of interest is received or negotiations do not result in a disposition, the City may proceed with the sale or lease of the property.

The SLA does not require the City to dispose of surplus land at less than fair market value. However, the SLA requires a Deed Restriction be placed on the property at the time of transfer that requires, at a minimum, any subsequent development of 10 or more residential units on the site must designate at least 15 percent of units as affordable.

*Please see a comprehensive guide on properties that are exempt under the HCD Surplus Lands Act Exemptions Guide, also included under Resources.

Surplus Lands Act (AB 1486)

The Surplus Land Act (Government Code Section 54220 et seq.) amended the State of California's Surplus Land Act (SLA) by prohibiting local agencies from commencing negotiations over the sale or lease of surplus property prior to sending notices about available, surplus local public land to designated entities ("eligible entities"), including:

• California Department of Housing and Development (HCD);
• Any local public entity within the jurisdiction where the surplus local land is located; and,
• Developers who have notified HCD of their interest in developing affordable housing on surplus local land.

State Surplus Land Act Notification Requirements

Effective January 1, 2020, the SLA requires a local agency to declare property as “surplus land” before taking any actions to dispose of such property. The process for a local agency to declare a property as surplus is outlined below:

Resources

• HCD Website on the Surplus Lands Act Process
• Frequently Asked Questions
• Sign Up to Receive Notices of Availability
• Exemptions to the Surplus Lands Act
• Statewide Mapping Database of All Surplus Lands

Current City-Owned Surplus Properties

*See 2022 process incorporating these 2 parcels into the 200 S. Hathaway Street surplus act compliance approval.