Page 3 - Microsoft Word - Lozano Smith Surplus Property Checklist - August 2025.docx

Summary

The following is an executive summary of the process and statutory time requirements
throughout the process; a more detailed discussion follows.

 First identify the surplus real property and convene a committee to advise the governing
board in the development of a districtwide policy on the use or disposition of surplus real
property. (Ed. Code, §§ 17387 et seq.)

 Declare intent to sell or lease the property to general public: To place the property on the
market, the Board must consider the committee’s recommendation that the property be
declared surplus and declare its intent to dispose of the property in a resolution. (Ed. Code,
§ 17466.)

 Offers required by the Naylor Act (Ed. Code, §§ 17485 et seq.). The Naylor Act only applies
to real property that has been used entirely or partially for school playgrounds, playing fields,
or other outdoor recreational uses and open-space land particularly suited for recreational
purposes. If the Naylor Act does apply, the district must offer to negotiate to sell or lease the
property to certain entities, usually for a below-market rate. The district may seek a waiver
of the Naylor Act. (Ed. Code, § 33050.) The district must allow Naylor Act entities 60 days to
respond to the offer. (Ed. Code, § 17489(c).)

 Offers required under Education Code section 17464: Unless an applicable Education Code
exemption applies, any sale or lease with option to purchase requires these statutory offers:
 The property must be offered to a group of designated entities for park and
recreational purposes pursuant to Government Code sections 54220 et seq. (Ed.
Code, § 17464(b).) These entities must be allowed 60 days after receiving notice to
respond and may also be entitled to a negotiation period of 90 days after giving
notice to the district of their interest in the property.
 The property must also be offered to an additional group of designated public
entities. This group must also be notified that it has 60 days to make offers but is not
entitled to an additional negotiation period.
 For a lease that does not include an option to purchase, no additional notices, beyond
any required Naylor Act notices, are expressly required under the Education Code.
Additional notices may be required under the Surplus Land Act, as discussed below.

 Surplus Land Act (Gov. Code, §§ 54220 et seq.) (SLA): First determine whether the intended
transaction is subject to the SLA. The SLA only applies to sales, certain leases over 15 years
(inclusive of any renewals or extensions), land exchanges, and any leases that include an
option to purchase. The SLA does not apply to leases of 15 years or less or to leases of any
duration where no demolition or development is to occur.

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