Section 1484 - Priority 4: SB 580 Properties(a)Offer at Priority 4. SB 580 Properties are identified by address in § 1484.2. When Priority 4 is specified as the next priority by § 1477.1 or by § 1477.2, as applicable, then all Surplus Residential Properties that are also SB 580 Properties that have not already been sold shall be next offered to nonprofit entities dedicated to rehabilitating and maintaining the property for public and community access and use at a Reasonable Price pursuant to this section. If the property is located within the City of Los Angeles, then the City of Los Angeles will be treated as a nonprofit entity for purposes of this section and § 1484.1. For the purposes of this chapter, public and community access and use includes: (2) a community center; or(5) meeting space for community organizations; or(6) any other purpose that benefits the community in which the property sits and is approved by the Department in its sole discretion.(b)Soliciting Interest. The Department will solicit interest from nonprofit entities to purchase SB 580 Properties by publishing a notice in at least one newspaper of general circulation within the County of Los Angeles, pursuant to Government Code §§ 6060 and 6061.3. The Department may also use other means to solicit interest.(c)Response. Nonprofit entities interested in purchasing a SB 580 Property have 30 calendar days from the last day of the published notice in (b) to submit a statement of interest to the Department. The statement of interest shall include the nonprofit entity's name, address, telephone number, and email address.(d)Confirmation. The Department will confirm receipt of the statement of interest by email.(e)Request Bids. The Department will request bids by email from the nonprofit entities that responded pursuant to (c). If the property is located within the City of Los Angeles, then the Department will request a bid by email from the City of Los Angeles, regardless if the City of Los Angeles responded pursuant to (c). The request will include the following information for each property offered at Priority 4:(1) a copy of the current lease or rental agreement, if any; and(2) copies of all repair records for the prior three years; and(3) a copy of the Use and Resale Restrictions described in § 1484.1; and(4) the due date for bids.(f)Bid Submittal. A nonprofit entity has 45 calendar days from the date of the email described in (e) to provide written bids to the Department. Bids shall include, but are not limited to:(1) a 10-year proforma showing the financial sustainability of rehabilitating and maintaining the property for public and community access and use; and(2) an explanation of the nonprofit entity's plan for current Occupants, if any; and(3) an explanation of the nonprofit entity's proposal to comply with this chapter and the Use and Resale Restrictions; and(4) a detailed plan explaining how the property would be used for public and community access and use; and(5) a proposed Reasonable Price.(g)Bid Evaluation. The Department will review all bids provided by nonprofit entities pursuant to (f). Bids will be reviewed based on the following criteria:(1) the nonprofit entity's experience and capability in rehabilitating and maintaining historic properties for public and community access and use; and(2) the nonprofit entity's ability to sustainably make the property available for public and community access and use; and(3) the benefit to the property's community based on community need; and(4) compliance with this chapter and the Use and Resale Restrictions described in § 1484.1.(h)Interview. The Department may request a meeting with nonprofit entities to discuss their bids. Any such meeting will be held in Los Angeles County, and the Department will provide at least 15 calendar days written notice of the time and place.(i)Bid Deficiencies. If the Department determines that all bids for a SB 580 Property are deficient and that there is no acceptable bid, then the Department shall provide the bidding nonprofit entities an additional 30 calendar days to supplement their bids for that property. If after supplementation there is no acceptable bid, then the Department shall move the property to Priority 5.(j)Bid Awards. The Department retains sole discretion in determining a winning bid for a property and will announce the winning bid by sending an email to all nonprofit entities that bid on that property. The email will include: (1) The address of the property; and(2) A ranking of the top three bids. Bids that do not comply with, or propose noncompliance with, §§ 1484 or 1484.1 shall not be ranked; and(3) An explanation of the rankings of the top three bids.(k)Appeal Process. A nonprofit entity has seven calendar days from the date of the email described in (j) to submit an appeal by email to the Department describing the basis of the appeal. The appeal process consists of: (1) A review by the Department's District 7 Director of all bids for the property subject to the appeal; and(2) A determination by the Department's District 7 Director on the stated basis of the appeal; and(3) A written response to the appealing entity regarding the findings of the appeal; and(4) The decision of the Department's District 7 Director is final.(l)Sales Contracts. The Department will send a sales contract to a nonprofit entity for each property awarded to it. The sales contract shall be executed and returned to the Department within 30 calendar days of the date the Department sends the contract.(1) The Department will send the contracts no sooner than 10 calendar days after it sends the email announcing winning bids described in (j).(2) For any bid subject to appeal under (k), the Department will send the contract no sooner than 10 calendar days after a written response described in (k)(3).(m)Escrow. Upon execution of the sales contract, a nonprofit entity has 120 calendar days to close escrow. Upon written request, the Department will provide an additional 30 calendar days to close escrow.(n)Closing Costs and Escrow Fees.The purchasing nonprofit entity shall pay all closing costs and escrow fees.
(o)Nonperformance. If a nonprofit entity fails to timely execute a sales contract in the time provided in (l) or fails to close escrow in the time provided in (m), then:(1) The sales contract is void.(2) The Department will award the property to the nonprofit entity with the next highest ranked bid and send a sales contract pursuant to (l).(3) If there is no next highest ranked bid, then the property will proceed to Priority 5.(p)Reasonable Price. For the purposes of sections 1484 and 1484.1, the Reasonable Price means the price necessary to allow for the rehabilitation and maintenance of the property for public and community access and use. It may not be less than the Minimum Sales Price.(q)No Warranty. Any Priority 4 sale is "as-is" and without warranty.Cal. Code Regs. Tit. 21, § 1484
1. New section filed 7-26-2016; operative 7-26-2016 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 31).
2. Repealer and new section filed 12-13-2021 as an emergency; operative 12-13-2021 (Register 2021, No. 51). Pursuant to Government Code Section 54237.10, this is a statutorily deemed emergency and the emergency language remains in effect until 12-14-2023. A Certificate of Compliance must be transmitted to OAL by 12-13-2023 or emergency language will be repealed by operation of law on the following day.
3. Pursuant to Government Code section 54239.5(e)(3), as added by Senate Bill 959 (Stats. 2022, Ch. 668), a Certificate of Compliance must be transmitted to OAL by 9-30-2024 or language of the emergency order of 12-13-2021 (Register 2021, No. 51) will be repealed by operation of law on the following day (Register 2023, No. 27). Note: Authority cited: Section 54237, Government Code. Reference: Sections 54236, 54237 and 54239.1, Government Code.
1. New section filed 7-26-2016; operative 7/26/2016 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 31).
2. Repealer and new section filed 12-13-2021 as an emergency; operative 12/13/2021 (Register 2021, No. 51). Pursuant to Government Code Section 54237.10, this is a statutorily deemed emergency and the emergency language remains in effect until 12-14-2023. A Certificate of Compliance must be transmitted to OAL by 12-13-2023 or emergency language will be repealed by operation of law on the following day.