Page 16 - Microsoft Word - Lozano Smith Surplus Property Checklist - August 2025.docx
P. 16
However, compliance with the Government Code requirements related to surplus land may
still be necessary. (See Sections IV & V(D), above).
o Child Care and Development Services (Ed. Code, § 17458): The district may sell or lease
any surplus real property to any contracting agency exclusively for the delivery of
childcare and development services (as defined in Ed. Code, § 8208), for not less than five
years.
o 30 Days (Ed. Code, § 17480): The district may lease any property for a period not
exceeding 30 separate or consecutive calendar days in each fiscal year.
o Residences (Ed. Code, § 17481): The Board, by a two-thirds vote of its members, may
lease school district property with a residence which cannot be developed for district
purposes because of the unavailability of funds for a term not exceeding three months.
o Historic Buildings (Ed. Code, § 17482): The Board may sell or lease a building that has an
historic value, and the site upon which the building is located, for fair market value to
certain non-profit or civic organizations, if the county board of supervisors finds that
various conditions exist.
o Land Exchanges (Ed. Code, § 17536): The exchange of real property is exempt from the
surplus property procedures set forth in the Education Code and described herein. An
exchange of properties with a private person or entity may be accomplished by a
resolution adopted by a two-thirds majority of the Board. Due to an apparent error
made when the Education Code was reorganized, sales and exchanges between public
agencies are no longer as clearly addressed in the Education Code; legal counsel should
be consulted regarding those requirements.
o Joint Occupancy (Ed. Code, §§ 17515 et seq.): A school district may lease buildings or
property to other entities for a term of up to 99 years. This can include an arrangement
where the leasing entity makes improvements to school grounds. Effective June 29,
2020, Senate Bill 98 eliminated the requirement that a joint occupancy arrangement be
approved by the State Board of Education.
o Certain Employee Housing Projects (Ed. Code, § 17456): As of 2018, AB 1157 added
language to Education Code section 17456 regarding the financing of school district
employee housing projects. That statute exempts certain sale/saleback and
lease/leaseback property transactions from the full surplus property process, including
notice and offer requirements and competitive bidding. These types of transactions
generally generate funding through a certificate of participation. The statute now also
specifies that "the construction, reconstruction, or renovation of rental housing facilities
for school district employees" is a permissible capital outlay expenditure for purposes of
such a sale/saleback or lease/leaseback transaction.
LozanoSmith.com Checklist for Sale or Lease of School District Surplus Property 15