Page 7 - Microsoft Word - Lozano Smith Surplus Property Checklist - August 2025.docx

o If possible, obtain information from City or County which outlines its approval process
(e.g., allowable densities and land uses, fees, exactions).

o Meet with key homeowners’ associations and community leaders concerning
recommended development plan.

IV. Board Action Declaring Property Surplus
The Education Code does not require the district to adopt an initial resolution to commence
the process of whether to declare district property as surplus.

However, effective January 1, 2020, the Surplus Land Act does require a declaration that
property is either “surplus land” or “exempt surplus land” prior to disposal of the property. A
“disposal” of property subject to the SLA includes:

o Any sale;

o Leases over 15 years in duration, inclusive of any renewals or extensions, unless no
demolition or development will occur;

o Property exchanges, regardless of whether monetary consideration is exchanged; and,

o Any lease with option to purchase at the time the lease is executed.

If a transaction does not meet one of the above definitions, then it is not subject to the SLA.
(Gov. Code, § 54221(d); California Department of Housing and Community Development
(HCD) Updated Surplus Land Act Guidelines, section 102(i) (updated August 1, 2024 (“HCD
Guidelines”).)

If the anticipated transaction is subject to the SLA, then the district declaration as “surplus
land” or “exempt surplus land” pursuant to Government Code section 54221(b)(1) is
required prior to disposal. The declaration is typically made at a regular meeting and
supported by written findings stated in a resolution. However, in some circumstances the
agency can instead publish a notice of their findings and provide a thirty (30) day public
comment period without a resolution. (Gov. Code, § 54221(b)(4).) When using this notice
and comment option, additional notice procedures apply, including notice to local housing
authorities and certain affordable housing developers.

Generally, most or all school district real property is likely to fall into the category of “exempt
surplus land.” Declaring the property as exempt surplus land will mean that the majority of
the requirements in Government Code sections 54220, et seq., will not apply, except for the
requirement to make written solicitations to agencies to purchase or lease the property for
park and recreational purposes. Pursuant to the HCD Guidelines, the written findings must
be submitted to HCD for review at least 30 days prior to “disposition” of the property.

LozanoSmith.com Checklist for Sale or Lease of School District Surplus Property 6