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Desk Item PREPARED BY : MATT MORLEY DIRECTOR OF PARKS AND PUBLIC WORKS Reviewed by: Assistant Town Manager Town Attorney Finance MEETING DATE: 09/06/16 ITEM NO : 2 DESK ITEM COUNCIL AGENDA REPORT DATE: SEPTEMBER 6 , 2016 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI , TOWN MANAGER SUBJECT: ADOPT A RESOLUTION: A. DECLARING CERTAIN REAL PROPERTY AT 4 N EW YORK AVENUE APN 529 -27 -024 SURPLUS TO THE NEEDS OF THE TOWN. B. DIRECTING STAFF TO CONDUCT NOTIFICATION REQUIREMENTS PURSUANT TO CALIFORNIA GOVERNMENT CODE §54222. C. DIRECTING STAFF TO E XPLORE OPPORTUNITIES FOR SALE OR LEASE OF THE PROPERT Y SUBSEQUENT TO CO MPLETION OF THE REQU IRED NOTIFICATIONS. REMARKS : A Councilmember asked staff to provide information about California Senate Bill 1413 (Leno). This bill has passed both the Senate and the Assembly and is before the Governor for signature. That signature is expected at any time. The bill establishes the Teacher Housing Act of 2016. The act provides that school districts can offer affordable housing (low or very low income levels) on land owned by the school district where residents are limited to teach ers or school district employees only. Through the development of affordable housing, the bill allows the school district to “l everage federal, state, and local public, private, and nonprofit programs and fiscal resources available to housing developers.” School districts with an interest in pursuing property for this purpose have the first opportunity to negotiate with the Town through the prescribed California Government Code §54222 process . Los Gatos School Districts will be noticed directly on the a vailability of this property. The full language of Senate B ill 1413 is provided as Attachment 2. PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: DECLARING CERTAIN REAL PROPERTY AT 4 NEW YORK AVENUE APN 529 - 27 -024 SURPLUS TO THE NEEDS OF THE TOWN SEPTEMBER 6 , 2016 Attachment previously received with Staff Report on September 2, 2016 : 1. Resolution Attachment received with this Desk Item: 2. Senate Bill 1413 full l anguage ATTACHMENT 2 BILL NUMBER: SB 1413 ENROLLED BILL TEXT PASSED THE SENATE AUGUST 29, 2016 PASSED THE ASSEMBLY AUGUST 24, 2016 AMENDED IN ASSEMBLY JUNE 16, 2016 AMENDED IN SENATE MAY 10, 2016 AMENDED IN SENATE APRIL 27, 2016 AMENDED IN SENATE APRIL 19, 2016 AMENDED IN SENATE MARCH 30, 2016 INTRODUCED BY Senator Leno (Coauthors: Assembly Members Chiu and Ting) FEBRUARY 19, 2016 An act to add Part 14 (commencing with Section 53570) to Division 31 of the Health and Safety Cod e, relating to housing. LEGISLATIVE COUNSEL'S DIGEST SB 1413, Leno. School districts: employee housing. Existing law establishes various housing and home loan programs throughout the state to help low -income families and other specified groups. Existing law authorizes the governing board of any school district, when leasing a building for housing of school district employees, to lease the building for any period they deem necessary. This bill would authorize a school district to establish and implement programs, as provided, that address the housing needs of teachers and school district employees who face challenges in securing affordable housing. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) The Legislature fi nds and declares that the changes made by this act are necessary in order to provide affordable housing opportunities to teachers and other school district employees. (b) California places a high value on our public education system, and the stability o f housing for school employees is critical to the overall success and stability of each school in California. (c) The supply of new preschool through grade 12 teachers in California has hit a 12 -year low, and enrollment in educator preparation programs has dropped by more than 70 percent over the last decade, and this shortage most impacts schools serving more low -income and minority students. (d) Demand for teachers and staff is projected to grow further as school districts continue to recover from t he recession and seek to replace previously eliminated programs and positions. Districts are also coping with attrition, which averages about 8 percent of all teachers annually. This attrition includes inevitable retirements, as fully one -third of Californ ia teachers are over 50 years of age and 10 percent are over 60 years of age, but most attrition is due to younger teachers leaving. ATTACHMENT 2 (e) A growing trend driving teacher turnover is the steadily increasing cost of housing in certain markets. In addition to the negative emotional and developmental impacts teacher turnover has on students, the costs borne by school districts to recruit, hire, and train new teachers each summer is immense. In San Francisco alone, during the summer of 2015, the school district had to recruit, hire, and train 700 new teachers. Many cited housing costs as the reason why the teacher was leaving the school district. (f) St udents and the community at large are benefited by teachers living in the community in which they practice their profession. It ensures stability, community involvement, and stronger ties between teachers, their students, and their families. (g) By crea ting affordable housing options for teachers near or on schoolsites, it also reduces vehicle miles traveled and time away from teachers' homes, thereby reducing or eliminating commute time. SEC. 2. Part 14 (commencing with Section 53570) is added to Div ision 31 of the Health and Safety Code, to read: PART 14. Teacher Housing Act of 2016 53570. This part may be cited as the Teacher Housing Act of 2016. 53571. (a) The purpose of this part is to facilitate the acquisition, construction, r ehabilitation, and preservation of affordable rental housing for teachers and school district employees to allow teachers or school district employees to access and maintain housing stability. (b) A program established under this part shall be restricte d to "teacher or school district employees." 53572. As used in this part: (a) "Affordable rental housing" means a rental housing development, as defined in subdivision (d) of Section 50675.2, with a majority of its rents restricted to levels that are affordable to persons and families of low or moderate income, as defined in Section 50093, but neither definition is restrictive to only projects with five or more units. (b) "Teacher or school district employ ee" means any person employed by a unified school district maintaining prekindergarten, transitional kindergarten, and grades 1 to 12, inclusive, an elementary school district maintaining prekindergarten, transitional kindergarten, and grades 1 to 8, inclu sive, or a high school district maintaining grades 9 to 12, inclusive, including, but not limited to, certificated and classified staff. 53573. A school district may establish and implement programs that address the housing needs of teachers and school district employees who face challenges in securing affordable housing. To the extent feasible, the school district may establish and implement programs that, among other things, do the following: (a) Leverage federal, state, and local public, private, and nonprofit programs and fiscal resources available to housing developers. (b) Promote public and private partnerships. (c) Foster innovative financing opportunities. 53574. This part specifically creates a state policy supporting housing for t eachers and school district employees, as described in Section 42(g)(9) of the Internal Revenue Code, and, further, permits ATTACHMENT 2 school districts and developers in receipt of local or state funds or tax credits designated for affordable rental housing to restrict occupancy to teachers and school district employees on land owned by school districts, so long as that housing does not violate any other applicable laws.