OAKLAND — In an effort to boost its low-cost housing stock, Oakland intends to deposit 100 percent of proceeds from future sales of unused city-owned land into an affordable housing trust fund.

In addition, any city-owned land it chooses to lease would be offered first to developers that agree to sell at least half of their homes at below-market rates.

Both steps are part of the Public Land Policy that the Oakland City Council approved at its Dec. 14 meeting. City staff now must return with a proposed ordinance that would codify the policy.

The policy also requires that all construction projects on city parcels give priority to local workers and that project labor agreements be signed with local trade unions for developments of more than 80 units or that cost more than $40 million.

Proposed by council members Abel Guillen and Rebecca Kaplan, the policy is expected to yield at least 800 below-market-rate homes, or half of the 1,600 projected to be built on unused city parcels.

“There has not been a comprehensive policy that we’ve had in place as to how public lands should best be utilized for public benefit,” Guillen said at the meeting. “The status quo land disposition that we have in place is not sufficiently transparent, accountable nor inclusive of the many diverse communities and entities that may be impacted by the sale or lease of public land.”

Oakland currently owns 20 sites totaling about 24 acres that are available for development. It also owns eight sites that are the subject of exclusive negotiating agreements and would not be affected by the policy change.

Those that would fall under the policy include the Clay Street Garage in downtown, one on Clara Street and Edes Avenue in the Brookfield neighborhood, one on MacArthur Boulevard across from the Foothill Square shopping center, one on Wood Street between 20th and 18th streets in West Oakland and one within the Oak Knoll development at the former naval hospital.

The council voted to exclude two parcels — at 1800 San Pablo Ave. and 1911 Telegraph Ave. — from the policy. Both are best suited for mixed-use high-rises and could generate millions in impact fees for the city’s affordable housing trust fund, according to a city staff report.

The city administrator’s economic and workforce development department had come up with a strategy calling for 14 of the 20 sites to be used for 100 percent affordable housing, one to be used for a market-rate development and five to be used for commercial or mixed-use development. That strategy would have required a minimum 20 percent of the total residential units on city-owned property to be designated as below-market-rate and that 40 percent of the proceeds from land sales go to affordable housing, as well as 80 percent of the proceeds from land sales of market-rate developments.

But some speakers who have addressed the council since Oakland started working on the policy nearly four years ago decried that strategy at the Dec. 14 meeting and pushed for Guillen and Kaplan’s proposal instead.

“We need something visionary, we need something comprehensive, we need something holistic and we need something that represents the needs and concerns of the people of Oakland,” said Vanessa Riles, who helped draft the policy.