Existing law prescribes requirements for the disposal of surplus land by a local agency. Existing law defines "surplus land" for these purposes to mean land owned in fee simple by any local agency for which the local agency's governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agency's use. Existing law requires that land be declared either "surplus land" or "exempt surplus land," as supported by written findings, before a local agency may take any action to dispose of it consistent with an agency's policies or procedures. Existing law provides that an agency is not required to follow the requirements for the disposal of surplus land for "exempt surplus land." Existing law defines "exempt surplus land" to include certain types of land. Existing law makes a local agency that disposes of surplus land, in violation of the requirements for the disposal of surplus land after receiving specified notification from the department that the local agency is in violation, liable for a penalty of 30% of the applicable disposition value for a first violation and 50% for any subsequent violation, as provided. This bill would expand the definition of "exempt surplus land" to include certain land owned by the City of Ontario that satisfies specified requirements. The bill would require that these requirements be contained in a covenant or restriction recorded against the surplus land at the time of disposition, as provided. The bill would require that the city meet specified requirements to declare exempt surplus land pursuant to these provisions, including depositing funds from the deposition into a local housing-specific set-aside account, as provided. The bill would require the city to provide the Department of Housing and Community Development a written notification of its declaration and findings at least 30 days prior to disposing of land declared "exempt surplus land" pursuant to these provisions, and would require the department to notify the city if the department has determined the city is in violation of these provisions, as provided. The bill would provide that a violation these provisions would be considered a 2nd or subsequent violation of the requirements for the disposal of surplus land, as provided. This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Ontario.