The City owns real property located at the southwest corner of Stanford Avenue and Eighth Street at 11390-11400 Stanford Avenue, Garden Grove, the north portion of a larger assessor’s parcel APN No. 090-154-57. An appraisal determined the fair market value, and the highest and best use of the property is for multi-family residential development in accordance with the existing zoning.

Pursuant to the California Surplus Land Act Section 54221(b)(1), the City Council must declare City owned real property to be “surplus land” or “exempt surplus land” prior to the City taking action to sell or dispose of real property; and submit the determination to the California Department of Housing and Community Development (HCD) for its review and approval at least 30 days prior to disposition of the property. 

Exempt surplus land is defined to include surplus land that is transferred to another local agency for the agency’s use, per Government Section Code 54221(f)(1)(D). Additionally, Section 103(b)(3)(D) of the Surplus Land Act Guidelines issued by HCD, state that local agency surplus land that is transferred to another local agency for the transferee agency’s use is exempt from the provisions of Articles II and III of the SLA/HCD Guidelines.

The Garden Grove Housing Authority (GGHA) has the authority and power under Housing Authority Law and Housing Successor Law to provide funding for the production, improvement, or preservation of affordable housing. The City intends to sell and convey the Property located at 11390-11400 Stanford Avenue, Garden Grove, CA, to the GGHA for the development of affordable housing and is taking the required steps to declare that the Property is exempt surplus land, as supported by written findings. A Purchase and Sale Agreement between the City and GGHA will be presented to City Council for consideration at a future meeting.

There is no financial impact for the City Council to adopt the resolution declaring certain real property located at 11390-11400 Stanford Avenue, Garden Grove, as exempt Surplus Land.  An appraisal will be done on the subject property at a later time to determine the financial impact.

It is recommended that the City Council:

• Adopt the Resolution approving the exemption to the Surplus Land Act for sale of City owned real property to the Garden Grove Housing Authority; and
• Authorize the City Manager, or her designee, submit the Resolution to the California Department of Housing and Community Development for their review and approval, on behalf of the City. 

By: Monica Covarrubias

Sr. Project Manager