San Francisco County Municipal Code Art. I In General

Sec. 23.1. Director of Property to Conduct Sales, Leases, Acceptances, and Other Real Estate Transactions. Sec. 23.2. Chapter Definitions. Sec. 23.3. Conveyance and Acquisition of Real Property.

Sec. 23.4. Acceptance of Deeds by Director of Property and Assistant. Sec. 23.5. Expenses of Real Estate Department in Connection with Leases, Acquisitions and Conveyances. Sec. 23.6. Sale or Lease of Public Utility Property. Sec. 23.7. Public Notice Required Prior to Board of Supervisors' Approval of a Sale, Transfer, or Other Conveyance of City-Owned Property. Sec. 23.8. Annual Real Property Reporting and Planning. Sec. 23.9. Government Entity Agreements.

As used in this Chapter 23, the following initially capitalized terms shall have the meanings ascribed to them in this Section 23.2: “Acquire” shall mean to acquire, accept, purchase, or exchange an easement or fee title in Real Property. “Acquisition” shall have a correlative meaning. “Affordable Housing” shall have the meaning set forth in Administrative Code Section 23A.4. “Appraisal” shall mean a written opinion of value, as defined by the most recent version of USPAP, that is prepared for or received by the City, is prepared by a Qualified Appraiser, and conforms with USPAP appraisal guidelines. “Appraisal Review” shall mean a written opinion about the quality of a Qualified Appraiser's work performed as part of an Appraisal that conforms with applicable USPAP appraisal review guidelines. An Appraisal Review shall be conducted by a Reviewer and include a summary of the reasons and findings for recommending or not recommending the subject Appraisal for approval. “City” shall mean the City and County of San Francisco. “Charter” shall mean the Charter of the City and County of San Francisco. “Code” shall mean the Administrative Code of the City and County of San Francisco. “Competitive Bidding Process” or “Competitive Bidding Procedures” shall mean a request for proposals, request for qualifications, or other publicly noticed competitive solicitation with specified criteria for selection.

“Convey” shall mean to convey, sell, transfer, grant, or relinquish an easement or fee title in Real Property. "Conveyance" shall have a correlative meaning. “Convey” shall mean to convey, sell, transfer, grant, or relinquish an easement or fee title in Real Property. “Conveyance” shall have a correlative meaning.1 “Government Entity” has the meaning set forth in Administrative Code Section 1.25(d), as may be amended from time to time. “Lease” shall mean a lease, sublease, or other means of granting a right to occupy or use Real Property, and shall also include a license, permit to enter, use permit, or other similar instrument. “Market Rent” shall mean the most probable rent that a Real Property should bring in a competitive and open market reflecting all conditions and restrictions of the lease agreement. “Qualified Appraiser” shall mean a person who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective, holds a certified general license issued by the California Bureau of Real Estate Appraisers and the designation of MAI from the Appraisal Institute, and has five or more years of recent experience appraising real estate of the same type and in the same city, county, or wider area, as applicable, as the subject Real Property. “Real Estate Department” shall mean the Real Estate Division of the Department of Administrative Services. “Real Property” shall mean any real property interest in land or improvements, including an easement, Lease, or fee interest. “Reviewer” shall mean a Qualified Appraiser who performs Appraisal Reviews. “USPAP” shall mean the current edition of the Uniform Standards of Professional Appraisal Practice in effect on the date of an Appraisal or Appraisal Review. (Added by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 103-16 , File No. 160361, App. 6/24/2016, Eff. 7/24/2016; Ord. 202-19, File No. 190679, App. 8/9/2019, Eff. 9/9/2019; Ord. 107-24, File No. 240301, App. 5/24/2024, Eff. 6/24/2024) (Former Sec. 23.2 repealed by Ord. 15-01, File No. 001965, App. 2/2/2001) CODIFICATION NOTE

1. So in Ord. 107-24.

The Director of Property may Convey any Real Property owned by the City upon recommendation of the department responsible for the administration of such Real Property, excepting park lands pursuant to Charter Section 4.113(2) or where a Conveyance of such Real Property would violate the terms of any gift, trust, deed restriction, bond covenant, or other covenant or restriction under which the City holds the Real Property. Such Conveyance may be made after the Board of Supervisors, by resolution, determines that the public interest or necessity demands, or will not be inconvenienced by, such Conveyance, and approves the Conveyance. The Board of Supervisors may authorize such Conveyance by resolution without advertisement, public auction, or Competitive Bidding Process if it determines that an advertisement, public auction, or Competitive Bidding Process is impractical, impossible, or is otherwise not in the public interest, including, for example only and not by way of limitation, when the Real Property is not capable of independent development, will be exchanged for other Real Property, or when the Board determines that a negotiated direct Conveyance of the Real Property will further a proper public purpose. Before the Board of Supervisors approves a Conveyance, the Director of Property shall appraise the fair market value of such Real Property based on a review of available and relevant data and give the notices required by California Government Code Section 54220 et seq., Administrative Code Chapter 23A, or any other applicable provision of state law. Before the Board of Supervisors approves any Acquisition of Real Property that is not a donation of Real Property, the Director of Property shall determine the fair market value of such Real Property based on a review of available and relevant data. If the Director of Property determines the fair market value of Real Property that the City intends to Acquire or Convey exceeds $10,000 and the proposed Acquisition is not a donation, the Director of Property shall obtain an Appraisal for the Real Property. If the Appraisal determines the fair market value of the Real Property exceeds $200,000, the Director of Property shall obtain an Appraisal Review for such Appraisal. Any Appraisal and Appraisal Review shall have an effective date of value that is not earlier than nine months before the date legislation for the proposed Acquisition or Conveyance is submitted to the Board of Supervisors. Notwithstanding anything to the contrary in this Section 23.3, to preserve Affordable Housing, the Director of MOHCD and the Director of Property are authorized to Acquire any Real Property without an Appraisal (1) through the exercise of rights and remedies under a deed of trust, deed in lieu of foreclosure, loan agreement, regulatory agreement, or other instrument securing the City’s interest in the Real Property, or (2) through negotiated contract or bid of Real Property that is to be sold through public auction, a judicial process, tax sale, or trustee sale. The Director of Property shall also advertise by publication the proposed Conveyance if the Conveyance will be by public auction or Competitive Bidding Process, for no less than 30 days. Every Conveyance other than a sale at public auction or through a Competitive Bidding Process shall be for a sales price of at least 100% of the appraised value of such Real Property, except where the Board determines either that (a) a lesser sum will further a proper public purpose, or (b) based on substantial evidence in the record, the terms and conditions of such Conveyance are reflective of the fair market value of the Real Property notwithstanding the appraised value.

(Added by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 179-03, File No. 030582, App. 7/18/2003; Ord. 103-16 , File No. 160361, App. 6/24/2016, Eff. 7/24/2016; Ord. 202-19, File No. 190679, App. 8/9/2019, Eff. 9/9/2019) (Former Sec. 23.3 repealed by Ord. 15-01, File No. 001965, App. 2/2/2001)

The Director of Property and the Assistant Director of Property of the City are hereby each authorized to accept and consent to deeds or other instruments granting Real Property to the City that are (1) Acquired to preserve Affordable Housing, as set forth in Section 23.3, or (2) approved by the Board of Supervisors, and to sign the required certificate of acceptance relating thereto. (Added by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 202-19, File No. 190679, App. 8/9/2019, Eff. 9/9/2019) (Former Sec. 23.4 repealed by Ord. 15-01, File No. 001965, App. 2/2/2001)

ACQUISITIONS AND CONVEYANCES. The Real Estate Department shall be entitled to payment of reasonable expenses in connection with negotiating Leases, Conveyances, Acquisitions, managing City owned Real Property, consulting with departments, and incidental work performed under the provisions of this Chapter. The department concerned shall pay the Real Estate Department for such expenses by interdepartmental work order or other means. (Added by Ord. 15-01, File No. 001965, App. 2/2/2001) (Former Sec. 23.2 repealed by Ord. 15-01, File No. 001965, App. 2/2/2001)

TRANSFER, OR OTHER CONVEYANCE OF CITY-OWNED PROPERTY. Not less than 10 days prior to action by the Board of Supervisors approving a sale, transfer, or other conveyance of fee title to City- owned property, including but not limited to approval of a conveyance as part of the settlement of litigation, the Clerk of the Board shall work with City departments to make certain that the department having jurisdiction of the City-owned property shall cause notice of the proposed action t0 be given as follows: (a) Notice shall be posted on the site of the property to be conveyed ("the Transfer Site") in accordance with the requirements established by the Zoning Administrator under Planning Code Sections 311 and 312. (b) Written notice describing the proposed action shall be mailed to all owners and, to the extent practicable, occupants of properties within 150 feet of the Transfer Site in the same Assessor's Block and on the block face across from the Transfer Site. When the Transfer Site is a corner lot, the notification area shall further include all property on both block faces across from the Transfer Site, and the corner property diagonally across the street. The latest City-wide Assessor's roll for names and addresses of owners shall be used for such notice. (c) Written notice describing the proposed action shall also be mailed to persons or organizations that have indicated an interest in the Transfer Site or its area by including their names on a list maintained by the Planning Department. This notice requirement shall not apply to a transfer of jurisdiction between one City agency or department and another City agency or department. Failure to comply with these notice requirements shall not invalidate conveyance of such property. (Added by Ord. 25-04, File No. 031989, App. 2/19/2004)

(a) All City departments shall report to the Director of Property annually, no later than ninety (90) days before the end of each fiscal year, the physical condition, current utilization and department contact information for real property and facilities under the jurisdiction of such department on a form to be provided by the Director of Property. Such information shall be summarized and maintained by the Director of Property in an Annual Real Property and Facility Report, and relevant portions of such information shall be included in the Real Estate Information System (REIS) located on the Real Estate Division's intranet website. The Annual Real Property and Facility Report shall include a limited Real Estate Asset Management Plan for the upcoming fiscal year with the Director of Property's recommendations regarding specified City real property assets, including facility maintenance and management, capital repairs, and potential acquisitions or dispositions (subject to the Surplus Property Ordinance and other City requirements), with the intent of increasing the City's efficient utilization of its real property assets. (b) Each City department with jurisdiction over real property shall assign a real property and facilities staff person to work with the Real Estate Division in the timely reporting of information as required by this section. This staff person shall, following the Director of Property's approval, cause the appropriate data to be entered in the Real Estate Division's REIS. (c) The Director of Property shall present the Annual Real Property and Facility Report, including the Asset Management Plan, to the Board of Supervisors. Upon the Board of Supervisors' approval of the Asset Management Plan, the Director of Property shall, consistent with his or her authority and working with applicable City departments, implement the recommendations in the Asset Management Plan subject to any required City approvals following environmental review. (d) Each fiscal year the Director of Property shall include in his or her proposed budget sufficient funds to maintain the REIS, and to perform the tasks contemplated by the Asset Management Plan. (Added by Ord. 59-05, File No. 050061, App. 4/1/2005)

(a) Agreements with Government Entities for an Acquisition, Conveyance, or Lease of Real Property are exempt from the Competitive Bidding Process and Competitive Bidding Procedures requirements of Chapter 23. (b) As set forth in Section 1.25 of this Code, agreements with Government Entities for an Acquisition, Conveyance, or Lease of Real

Property are not subject to provisions of the Municipal Code, including but not limited to the Administrative, Labor and Employment, Environment, or Police Codes, imposing obligations or other restrictions on contractors. (c) This Section 23.9 applies to all agreements for an Acquisition, Conveyance, or Lease of Real Property under Chapter 23, however they are titled, including but not limited to any Lease, contract, memorandum of understanding, or similar instrument memorializing mutual obligations between the City and a Government Entity or Government Entities. (Added by Ord. 107-24, File No. 240301, App. 5/24/2024, Eff. 6/24/2024)