Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Director, Department of Housing
Subject: Resolution Finding the Real Property Located at 493 Eastmoor Avenue, Daly City, California, Exempt Surplus Land to be Disposed of Pursuant to Government Code Section 54220
RECOMMENDATION:
title
Adopt a resolution:
A) Finding and declaring certain real property known as 493 Eastmoor Avenue, a 0.37-acre parcel identified as Assessor's Parcel Number 008-082-200, located at 493 Eastmoor Avenue, Daly City, California, which is to be concurrently acquired in fee and disposed of by long-term lease by the County, as exempt surplus land under the Surplus Land Act; and
B) Authorizing and directing the Director of the Department of Housing, or designee, acting in consultation with the County Attorney, to execute any and all notices, certificates, and documents as may be necessary and advisable to effectuate the purposes of this resolution, and to provide notice of the Surplus Land Act exemption determination to the California Department of Housing and Community Development.
body
BACKGROUND:
Eastmoor Multifamily, L.P. currently owns in fee simple real property known as 493 Eastmoor Avenue, a 0.37-acre parcel identified as Assessor's Parcel Number 008-082-200, located at 493 Eastmoor Avenue, Daly City (the “Property”), which is currently a vacant parcel. Eastmoor Multifamily, L.P. proposes to construct a 72-unit 100-percent affordable housing project consisting of 71 income-restricted units and one manager’s unit, featuring resident amenities such as a courtyard, community room, reading room, fitness room, and structured parking (the “Project”).
The Project will serve households earning between 20% and 50% of the Area Median Income (AMI), with an average affordability level of approximately 33% of AMI, including 39 units designated for high-need households supported through County programs consisting of 16 units designated under the Housing for a Healthy California (HHC) program for people experiencing homelessness with high health care needs, 11 units designated under the Mental Health Services Act (MHSA) program for people experiencing homelessness with a significant mental illness, and 12 units designated under the Former Foster Youth (FFY) program to aid the transition of young people from foster care to independent living.
On November 18, 2025, pursuant to this Board’s authorizations and approvals under Resolution No. 081509, the County and Eastmoor Multifamily, L.P. entered into a Real Estate Purchase and Sale Agreement and Escrow Instructions (the “Agreement”) and negotiated a form of Ground Lease (the “Lease”) providing for the County’s acquisition of the Property in fee simple and the concurrent lease of the Property back to Eastmoor Multifamily, L.P. for the development and operation of the Project, and subject to specified contingencies and conditions.
Upon acquisition, the County will concurrently lease the Property back to Eastmoor Multifamily, L.P. for a 99-year Lease term, for the development and operation of the Project. The Lease will be recorded concurrently with the Grant Deed, ensuring that affordability covenants remain enforceable throughout the Lease term. Under the Lease, the Tenant (Eastmoor Multifamily, L.P.) will be solely responsible for all site maintenance, operations, and management at its own expense, while the County retains oversight and compliance rights as landlord.
The County’s acquisition of the Property and concurrent execution of the Lease allows the County to convert a portion of its prior predevelopment loan funding for the Project into a publicly owned asset without increasing its total financial commitment or its operational or maintenance obligations.
The Surplus Land Act is a state statute that local agencies must follow when disposing of surplus land, including entering into long-term leases. The Surplus Land Act requires local agencies across California to follow certain public notification and wait periods prior to disposing of publicly-owned land determined to be surplus or not necessary for local agency operations. One purpose of the Surplus Land Act is to give potential housing developers priority access to surplus land for development of new housing. The Surplus Land Act also allows local agencies to declare land exempt from the Surplus Land Act’s disposition requirements when certain criteria are met.
DISCUSSION:
Under the Surplus Land Act, the County may take formal action in a regular public meeting to declare land as "surplus land" or "exempt surplus land." Under Government Code Section 54221(f)(1)(A), “exempt surplus land” includes land that is transferred for the development of affordable housing pursuant to Government Code Section 25539.4.
Government Code Section 25539.4 provides in pertinent part that: “whenever the board of supervisors determines that any real property or interest therein owned, or to be purchased, by the county can be used to provide housing affordable to persons and families of low or moderate income . . . and that this use is in the county's best interests, the county may sell, lease, exchange, quitclaim, convey, or otherwise dispose of the real property or interest therein at less than fair market value, or purchase an interest in the real property, to provide that affordable housing without complying with other provisions of this article.”
This Board determined in Resolution No. 081509, that the use of the Property for affordable housing under the Project serves a public interest.
The County’s purchase and Lease of the Property for the Project satisfies the criteria set forth in Government Code Section 25539.4 because (1) at least 80 percent of the Property will be used for the development of housing, (2) at least 40 percent of the housing units will be affordable to households whose incomes are equal to or less than 75 percent of the maximum income of lower income households and at least half of these will be affordable to very low income households, and (3) the parties will execute a Regulatory Agreement, to be recorded in the Official Records of the Office of the Clerk-Recorder of the County of San Mateo pursuant to Government Code 25539.4(e), guaranteeing that Eastmoor Multifamily, L.P. as seller and lessee and its successors in interest will maintain the affordability restrictions described herein for at least 30 years.
Because the property meets these requirements, it therefore qualifies as “exempt surplus land” under Government Code Section 54221(f)(1)(A).
The County is required to provide notice of its exemption determination to State HCD 30 days prior to disposing of the property.
The County Attorney has reviewed and approved the proposed resolution as to form.
COMMUNITY IMPACT:
The County is dedicated to ensuring safe affordable housing options for all San Mateo County residents, especially the most vulnerable extremely low-income, very low-income and special-needs households. More than half of the homes created by the Project are targeted to populations supported through County programs who, without deeply affordable housing and coordinated supportive services, experience significant barriers to housing stability. These special needs units will house individuals with serious mental illness, individuals with significant health care needs, and former foster youth seeking affordable housing to avoid displacement from San Mateo County.
FISCAL IMPACT:
There is no fiscal impact associated with adopting this resolution.