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City of San Leandro <br />City Council <br />Meeting Date: October 17, 2022 <br />Agenda Number: 10.f. <br />Agenda Section: CONSENT CALENDAR <br />File Number: 22-566 <br />File Type: Staff Report <br />Adopt a Resolution to Authorize the City Manager to Create Policy to Comply with State of California <br />Surplus Land Act Law <br />COUNCIL PRIORITIES <br />·Housing and Homelessness <br />·Community & Business Development <br />SUMMARY & RECOMMENDATION <br />Staff recommends that the City Council approve a Resolution to affirm the City’s compliance with state <br />housing laws, including the Surplus Land Act, laws related to Accessory Dwelling Units (ADUs) and <br />Junior ADUs (JADUs) and state Density Bonus Law; which will, among other things, support the City’s <br />ability to obtain grants from the Metropolitan Planning Commission (MTC), the regional transportation <br />planning agency. <br />BACKGROUND <br />In 2022, the MTC adopted Resolution No. 4505, outlining the programming policy and project selection <br />criteria for the One Bay Area Grant Program (OBAG 3), including certain requirements to access these <br />funds. The OBAG program is the policy and programming framework for investing federal Surface <br />Transportation Block Grant Program (STP), Congestion Mitigation and Air Quality Improvement (CMAQ), <br />and other fund programs throughout the San Francisco Bay Area. The MTC established the OBAG <br />program in 2013 to strengthen the connection between transportation investments and regional goals for <br />focused growth in Priority Development Areas (PDAs), places near public transit that are planned for <br />new homes, jobs, and community amenities. <br />The San Francisco region has the highest housing costs in the United States and, from 2007-2014, the <br />Bay Area produced less than 30% of the need for low- and moderate-income housing units and is on <br />track to similarly underproduce low-income units during the 2015-2023 time period. For the City to <br />remain compliant and eligible for OBAG funding, a resolution must be adopted to agree to comply with <br />state housing laws, including the terms of Surplus Land Act (California Government Code § 54220 et <br />seq.). Eligibility for OBAG funding is critical for the City to maintain and enhance its efforts to improve <br />and maintain streets and roads as well as its bicycle and pedestrian facilities. <br />When local agencies sell or lease their surplus land to others, California’s Surplus Land Act (SLA) <br />requires them to prioritize that land for affordable housing, open space, and school use. Agencies must <br />let affordable housing developers, local park and recreation districts and departments, and school <br />districts know that the land is available, and give those entities a chance to purchase or lease the land <br />before initiating negotiations with others. There are certain exceptions to these requirements, including <br />Page 1 City of San Leandro Printed on 10/13/2022