Los Angeles Municipal Code § 7.27 Private Sale

The Council, or the Municipal Facilities Committee in cases involving “remnants” as defined in Section 7.27.1(a), may determine that the public interest or necessity require the sale, conveyance or exchange of real property owned by the City or any City department, of the quitclaiming by the City or by any City department, of any interest in real property without notice of sale or advertisement for bids. In the event of this determination, the City Council may, by ordinance authorize the execution of a deed, contract or other instrument necessary to effect the sale, conveyance, exchange or quitclaim at and for a price or consideration and upon the terms and conditions to be specified in the ordinance; provided, however, that the ordinance shall be subject to the provisions of Sections 252 and 461 of the City Charter. In the event of such a determination by the Municipal Facilities Committee with respect to the sale of a “remnant” as defined in Section 7.27.1(a), the Municipal Facilities Committee may authorize the execution of a deed or other instrument necessary to effectuate the sale at and for the fair market value of the property as appraised by the Department of General Services, and upon the terms and conditions contained in the document entitled Title Transfer Instructions (Escrow) approved by the City Council and made a part of Council File No. 07-1894. Any substantive deviations from those terms and conditions, as determined by the City Attorney, shall require approval by the City Council by ordinance.

SECTION HISTORY

Based on Ord. No. 56,887. Amended by: Ord. No. 92,757; Ord. No. 150,946, Eff. 7-17-78; Ord. No. 180,834, Eff. 9-20-09.

Notwithstanding any other provision of this Code to the contrary, City-owned “remnants” under the jurisdiction and control of the Department of General Services may be sold by private sale as authorized by Section 7.27, provided all of the following criteria are met:

(a) Each property subject to sale must be a surplus City-owned “remnant”. “Remnant” means real property meeting the
requirements of Section 7.22 of the Los Angeles Administrative Code which (A) has less than the minimum legal residential building
lot size for the jurisdiction in which the parcel is located, or less than 5,000 square feet in area, whichever is less, or (B) has no record
access and is less than 10,000 square feet in area; and is not contiguous to land owned by a state or local agency, that is used for park,
recreational, open-space, or low- and moderate-income housing purposes, and is not located within an enterprise zone pursuant to
Section 7070 of the California Government Code, nor a designated program area as defined in California Government Code section
7082;

(b) The direct sale must be an all cash transaction and the buyer(s) must pay fair market value for the remnant as determined by an

appraisal by the Department of General Services;

(c) The buyer(s) must be owners of an “adjoining property.” An “adjoining property” is one which shares a common boundary with
the remnant subject to sale;

(d) The Department of General Services shall offer the remnant for sale to all adjoining property owners, and utilize a competitive
process to select the buyer(s) using price as its criteria;

(e) The terms and conditions of each sale must be those approved by the City Council in the document entitled Title Transfer
Instructions (Escrow) and made a part of Council File No. 07-1894, and must be presented by the Department of General Services to
the Municipal Facilities Committee for approval, and shall be approved as to form by the City Attorney; and

(f) Any remnant meeting the criteria set forth in California Government Code section 54221(f) must first be offered for sale to the
State in accordance with Government Code section 54220, et seq.

(g) The Santa Monica Mountains Conservancy (SMMC) shall have the first right of refusal on any surplus City-owned remnants
within the Santa Monica Mountains Zone, as defined in California Public Resources Code Section 33105, except where such property
is designated for acquisition as a park or recreation area by a federal, state, or local agency.

(1) The SMMC shall have the right to acquire such remnants at the City’s purchase price plus any administrative
management costs incurred by the City.

(2) The SMMC’s first right of refusal shall be renewed upon two years after the initial refusal or at any time as required by
State law, whichever occurs first.

SECTION HISTORY

Added by Ord. No. 180,834, Eff. 9-20-09. Amended by: Subsec. (g) added, Ord. No. 187,505, Eff. 7-4-22.

Notwithstanding any other provision of this Code, the Economic Development Department is authorized to convey any interest owned or controlled by the City in any real property below its fair market value, subject to the Council making a finding that the conveyance at the price with the terms and conditions imposed thereon serves a public purpose. Such conveyance may be made by either sale or lease; however, the sale or lease shall be first approved by the City Council after public hearing and shall be subject to approval by the Mayor.

Any disposition of real property, whether by sale or lease, which is made at a price below fair market value shall be supported by findings and an appraisal setting forth the following:

(a) The estimated fair market value of the interest to be conveyed, determined at the highest and best use;

(b) The purchase price or present value of the lease payments which the lessee will be required to make during the term of the

lease;

(c) The conditions and covenants imposed by the City for the conveyance (“City Conditions”) and an estimate of the increased

development costs to be incurred by the developer of the real property as a result of compliance with the City Conditions;

(d) The estimated value of the interest to be conveyed determined at the use and with the City Conditions (“Fair Reuse Value”); and

(e) An explanation as to why the sale or lease of the real property will assist in the economic development of the City, with

reference to all supporting facts and materials relied upon in making this explanation.

Nothing contained herein shall be interpreted to authorize the Department to mortgage any real property in contravention of Charter Section 104(a) or to acquire, whether by eminent domain or voluntary sale, or to dispose of any real property in a manner not otherwise authorized by law.

SECTION HISTORY

Added by Ord. No. 182,500, Eff. 5-22-13.

With the exception of those properties subject to Section 7.33.2, et seq. of this Code, the Los Angeles Housing Department is authorized to convey any interest owned or controlled by the City in any real property below its fair market value, subject to the Council making a finding that the conveyance at the price with the terms and conditions imposed thereon serves a public purpose. Such conveyance may be made by

either sale or lease; however, the sale or lease shall be first approved by the City Council after public hearing and shall be subject to approval by the Mayor.

Any disposition of real property, whether by sale or lease, which is made at a price below fair market value shall be supported by findings and an appraisal setting forth the following:

(a) The estimated fair market value of the interest to be conveyed, determined at the highest and best use;

(b) The purchase price or present value of the lease payments which the lessee will be required to make during the term of the

lease;

(c) The conditions and covenants imposed by the City for the conveyance (“City Conditions”) and an estimate of the increased

development costs to be incurred by the developer of the real property as a result of compliance with the City Conditions;

(d) The estimated value of the interest to be conveyed determined at the use and with the City Conditions (“Fair Reuse Value”); and

(e) An explanation as to why the sale or lease of the real property will assist in the development of affordable housing in the City,

with reference to all supporting facts and materials relied upon in making this explanation.

Nothing contained herein shall be interpreted to authorize the Department to mortgage any real property in contravention of Charter Section 104(a) or to acquire, whether by eminent domain or voluntary sale, or to dispose of any real property in a manner not otherwise authorized by law.

SECTION HISTORY

Added by Ord. No. 185,283, Eff. 1-15-18. Amended by: Ord. No. 187,122, Eff. 8-8-21.