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Staff Rpt 2025-04-15 HA - Exempt Surplus Land Declaration APN 600-030-039CONSENT CALENDAR ITEM NO. 2 City of La Quinta HOUSING AUTHORITY QUARTERLY MEETING: April 15, 2025 STAFF REPORT AGENDA TITLE: ADOPT RESOLUTION RESCINDING THE SURPLUS LAND DECLARATION FOR ASSESSOR PARCEL NUMBER 600-030-039 LOCATED IN THE CITY OF LA QUINTA, CALIFORNIA, AND DECLARING THE SAME PARCEL EXEMPT SURPLUS LAND PURSUANT TO THE SURPLUS LAND ACT; CEQA: FIND THE RESCISSION AND DECLARATION EXEMPT FROM ENVIRONMENTAL REVIEW PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT RECOMMENDATION • Adopt a Resolution to rescind the declaration of Assessor Parcel Number 600-030- 039, located near the northeast corner of Dune Palms Road and Highway 111, as surplus land under the Surplus Land Act, and declare it as exempt surplus land. • Find that the rescission and declaration are exempt from environmental review pursuant to the California Environmental Quality Act for the reasons stated in the Resolution. EXECUTIVE SUMMARY • On January 21, 2025, the La Quinta Housing Authority (Authority) adopted Resolution No. HA 2025-001 declaring Assessor Parcel Number (APN) 600-030- 039 as surplus land pursuant to the requirements of the Surplus Land Act (SLA) (Government Code Section 54221 et seq.). • Staff has determined that the subject parcel will be used only for affordable housing purposes that the City will facilitate for future development, resulting in the need to rescind the prior surplus land designation, and to declare this parcel exempt surplus land designation. • This action will remove the requirement to issue a Notice of Availability and engage in the SLA-mandated offer process and would preserve flexibility for the Authority to evaluate options for the properties. FISCAL IMPACT — None. BACKGROUND/ANALYSIS The SLA requires that public agencies declare land as either "surplus" or "exempt surplus" before it can be sold or leased for development. In accordance with this requirement, on January 21, 2025, the Authority adopted Resolution No. HA 2025-001 declaring the 7 vacant parcel identified as APN 600-030-039, located at the northeast corner of Dune Palms Road and Highway 111, as "surplus land" on the basis that the parcel was not necessary for the Authority's current operations or programs. Following this declaration, the parcel became subject to SLA procedural requirements including the issuance of a Notice of Availability to qualified entities, a 60-day period for expressions of interest, and a 90-day good faith negotiation period. Since the original declaration, staff has determined the long-term strategic needs of the Authority necessitate only affordable housing development on this parcel, serving future community development objectives. The parcel is identified in the City's current (2022- 2029) Housing Element, which was reviewed and approved by the California Department of Housing and Community Development. Specifically, the parcel is the approximately 5.2 acre site, with a new assessor parcel number that was previously identified as APN 600-030-018. The parcel is identified in the City's Housing Element under the "Vacant Land Inventory" (Table 11-50) as Site No. 5, which is a site identified for development of very low-, low-, and moderate income housing (i.e., affordable housing). Therefore, the SLA surplus land designation for the subject parcel is no longer appropriate, and the Authority will benefit from declaring the parcel exempt surplus land pursuant to the SLA, specifically Government Code Section 54221(F)(1)(L) (Gov. Code). Rescinding the surplus land designation and, instead, declaring the parcel as exempt surplus land pursuant to the SLA, specifically Government Code Section 54221(f)(1)(F), preserves the Authority's ability to sell or otherwise dispose of the parcel for the affordable housing purposes consistent with Section 54221(f)(1)(F). ENVIRONMENTAL REVIEW The rescission of the designation of the Parcel as "surplus land" and declaration of said Parcel as "exempt surplus land" is not a "project" under the California Environmental Quality Act (Pub. Res. Code, § 21000 et seq.("CEQA")) or the California Environmental Quality Act Guidelines (14 Cal. Code Regs., § 15000 et seq. ("CEQA Guidelines")), specifically CEQA Guidelines Section 15378(b)(5) as the action of the Authority is only administrative and will not result in direct or indirect physical changes in the environment. Even if the action(s) of the Authority were deemed to be a "project," the action is exempt pursuant to CEQA Guidelines Section 15060(c)(3) [common sense exemption] and none of the exceptions to this exemption as set forth in CEQA Guidelines Section 15300.2 apply. Finally, to the extent applicable, pursuant to CEQA Guidelines Section 15312, a sale of any surplus land is exempt from review under CEQA. ALTERNATIVES The Authority may elect not to rescind the surplus land designation and proceed with SLA requirements. Based on the determination of Affordable Housing being the only ultimate use for this land, staff does not recommend these alternatives. Prepared by: Approved by: Doug Kinley, Senior Management Analyst Gil Villalpando, Director of Business & Housing 8