On May 11, 2021, the City Council declared the parcels located at 4528 and 4628 Fairway Boulevard as exempt surplus land pursuant to Government Code Section 54221 (f)(1)(A). This Government Code Section allows local agencies to declare certain properties exempt from the Surplus Land Act disposition process if the land is transferred for the development of affordable housing as described in Government Code Section 37364.
 
On September 14, 2021, the City Council authorized the execution of a Transfer Agreement between the City of Chino Hills and Pomona Valley Habitat for Humanity, Inc. (Habitat), a California non-profit corporation. The agreement requires Habitat to provide a preference to Chino Hills disabled veterans and their families that have lived within the City for at least one year. If it is not reasonably possible to find qualifying disabled veterans, then the qualified purchaser could include persons that are not disabled veterans. Additionally, each of the properties will be subject to a recorded affordable housing agreement which provides that, for a period of not less than 45 years after the date of the initial purchase of each home, the home may be sold only to persons or households of very low- income (not exceeding 50% of the San Bernardino County area median income, adjusted for household size). The restriction on sale to disabled veterans does not apply to subsequent transfers of the homes; rather, it only applies to the original sale of the completed home by Habitat.
 
Habitat has been unable to secure qualified buyers for the properties, due to circumstances outside of Habitat’s control. Two potential veteran owners were selected. One moved out of state due to personal reasons. The second buyer no longer qualified as very-low income. Changes at the Federal level to the veteran’s benefit program have increased incomes and as a result all prospective veteran households earn more than 50% of San Bernardino County Area Median Income.
 
Because both Habitat and the City desired to maintain our commitment to housing veterans within the City through Habitat’s “Veterans Build” program, staff reached out to the California Department of Housing and Community Development (HCD) for technical assistance and guidance to amend the “Exempt Surplus Land” determination to low-income and remove the very low-income exemption. Government Code Section 37364 (c) requires that a minimum of 50% of the area of the parcel be developed as very low-income. However, last year, Government Code Section 54221(f)(1) was modified to include an exemption for properties that were less than one-half acre in area and not contiguous to land owned by a state or local agency that is used for open-space or low-and moderate-income housing purposes. In recognition of the recent changes, HCD recommended to staff that the City Council adopt a new resolution declaring the properties exempt under Section 54221 (f)(1)(B) (small lot). Language in the Transfer Agreement has been amended to reflect changes to the qualified buyers’ requirements as noted in the proposed exempt surplus land resolution. These changes will allow Habitat to find qualified veterans to purchase the properties, consistent with the City's goals.

Pursuant to Government Code Section 54221(f)(1)(B), “exempt surplus land” means and includes surplus land that is less than one-half acre in area and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. The City Council finds and determines that the subject parcels are, both individually and cumulatively, less than one-half acre in area.  The City Council further finds that neither parcel is contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. Consequently, each parcel qualifies as “exempt surplus land” for purposes of the Surplus Land Act.