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HomeMy WebLinkAboutCity Council Position on Legislation Pending before Congress (33) City of Huntington Beach File #: 20-1778 MEETING DATE: 7/20/2020 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Oliver Chi, City Manager Subject: City Council Position on Legislation Pending Before Congress and the State Legislature as Recommended by the City Council Intergovernmental Relations Committee (IRC) Statement of Issue: On July 15, 2020, the Intergovernmental Relations Committee (IRC) comprised of Mayor Lyn Semeta, Council Member Erik Peterson, and Council Member Patrick Brenden met to discuss pending Federal and State legislation. Financial Impact: There is no fiscal impact. Recommended Action: A) Approve a City position of Support on Senate Bill 1386 (Moorlach) "Local Government: Assessments, fees, and charges on water hydrants"; and, B) Approve a City position of Watch on Assembly Bill 1063 (Petrie-Norris) - "Planning and zoning law on housing elements, accessory dwelling units, and adequate site substitutes"; and, C) Approve a City position of Oppose on Senate Bill 1120 (Atkins) - "Subdivisions: tentative maps"; and, D) Approve a City position of Oppose on Senate Bill 1385 (Caballero) - "Local planning: housing, commercial zones"; and, E) Approve a City position of Watch on Senate Constitutional Amendment 1 (Allen) - "Public housing projects"; and, F) Approve a City position of Oppose on Senate Bill 1299 (Portantino) - "Housing development: incentives, rezoning of idle retail sites"; and, G) Approve a City position of Watch on Assembly Bill 2345 (Gonzalez) - "Planning and zoning: density bonuses, annual report, affordable housing"; and, H) Approve a City position of Watch on the Library Stabilization Fund Act (Reed and Levin). City of Huntington Beach Page 1 of 4 Printed on 7/17/2020 powereW LegistarTM File #: 20-1778 MEETING DATE: 7/20/2020 Alternative Action(s): Do not approve and direct staff accordingly. Analysis: The Intergovernmental Relations Committee (IRC) met to discuss pending Federal and State legislation on July 15, 2020 in addition to Administrative Items. The Committee reviewed the 2020 State Legislative Matrix provided by the City's Federal and State Advocate Townsend Public Affairs. The following is an analysis of the bills that the Committee chose to take the following positions on: ➢ SUPPORT - SB 1386 (Moorlach) "Local Government: Assessments, fees, and charges on water hydrants" Current law, known as the Proposition 218 Omnibus Implementation Act, prescribes specific procedures and parameters for local jurisdictions to comply with these requirements and, among other things, authorizes an agency providing water, wastewater, sewer, or refuse collection services to adopt a schedule of fees or charges authorizing automatic adjustments that pass through increases in wholesale charges for water, sewage treatment, or wastewater treatment or adjustments for inflation under certain circumstances. Current law defines, among other terms, the term "water" for these purposes to mean any system of public improvements intended to provide for the production, storage, supply, treatment, or distribution of water from any source. This bill would specify that hydrants, as defined, are part of the system of public improvements included in the definition of"water" for purposes of the Proposition 218 Omnibus Implementation Act. ➢ WATCH - AB 1063 (Petrie-Norris) - "Planning and zoning law on housing elements, accessory dwelling units, and adequate site substitutes" Current law authorizes the Department of Housing and Community Development, in evaluating a proposed or adopted housing element for substantial compliance with the provisions of the Planning and Zoning Law relating to housing elements, to allow a city or county to identify adequate sites by a variety of methods, as specified. Current law authorizes the department to allow a city or county to identify sites for accessory dwelling units based on the number of accessory dwelling units developed in the prior housing element planning period whether or not the units are permitted by right, the need for these units in the community, those units in the community, the resources or incentives available for their development, and any other relevant factors, as determined by the department. This bill would, instead, require the department, in making that evaluation, to allow a city or county to identify adequate sites by a variety of methods, as specified. The bill would require the department to allow a city or county to identify sites for potential accessory dwelling units based on existing zoning standards and the demonstrated potential capacity to accommodate accessory dwelling units and junior accessory dwelling units, as determined by the city or county. ➢ OPPOSE - SB 1120 (Atkins) - "Subdivisions: tentative maps" This Bill would, among other things, require a proposed housing development containing 2 residential units to be considered ministerially, without discretionary review or hearing, in zones where allowable uses are limited to single-family residential development if the proposed housing development meets certain requirements, including that the proposed housing development would not require demolition or alteration requiring evacuation or eviction of an existing housing unit that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. ➢ OPPOSE -SIB 1385 (Caballero) - "Local planning: housing, commercial zones" The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a housing element. This bill, the Neighborhood City of Huntington Beach Page 2 of 4 Printed on 7/17/2020 powereW$ LegistarT"' File #: 20-1778 MEETING DATE: 7/20/2020 Homes Act, would deem a housing development project, as defined, an allowable use on a neighborhood lot that is zoned for office or retail commercial use under a local agency's zoning code or general plan. The bill would require the density for a housing development under these provisions to meet or exceed the density deemed appropriate to accommodate housing for lower income households according to the type of local jurisdiction, including a density of at least 20 units per acre for a suburban jurisdiction. ➢ WATCH - Senate Constitutional Amendment 1 (Allen) - "Public housing projects" The California Constitution prohibits the development, construction, or acquisition of a low rent housing project, as defined, in any manner by any state public body until a majority of the qualified electors of the city, town, or county in which the development, construction, or acquisition of the low-rent housing project is proposed approve the project by voting in favor at an election, as specified. This measure would repeal these provisions. ➢ OPPOSE - SB 1299 (Portantino) - "Housing development: incentives, rezoning of idle retail sites" Current law establishes, among other housing programs, the Workforce Housing Reward Program, which requires the Department of Housing and Community Development to make local assistance grants to cities, counties, and cities and counties that provide land use approval to housing developments that are affordable to very low and low-income households. This bill, upon appropriation by the Legislature, would require the department to administer a program to provide incentives in the form of grants allocated as provided to local governments that rezone idle sites used for a big box retailer or a commercial shopping center to instead allow the development of workforce housing. The bill would define various terms for these purposes. In order to be eligible for a grant, the bill would require a local government, among other things, to apply to the department for an allocation of grant funds and provide documentation that it has met specified requirements. ➢ WATCH - AB 2345 (Gonzalez) - "Planning and zoning: density bonuses, annual report, affordable housing" The Planning and Zoning Law requires the planning agency of a city or county to provide by April 1 of each year an annual report to, among other entities, the Department of Housing and Community Development that includes, among other specified information, the number of net new units of housing that have been issued a completed entitlement, a building permit, or a certificate of occupancy, thus far in the housing element cycle, as provided. This bill would require that the annual report include specified information regarding density bonuses granted in accordance with specified law. ➢ WATCH - Library Stabilization Fund Act (Reed and Levin) This Act would establish a $2 billion fund to address financial losses of libraries due to COVID-19 and bolster library services. The Act would prioritize funding for the hardest hit communities and would be delivered through the Institute of Museum and Library Services. A large portion of the funds would be distributed to local libraries through state library agencies based on state population, with a minimum of $10 million to each state. The Act would also provide for competitive grants. The primary objective of this Act is to minimize the disruption of library services and staff furloughs and layoffs across the country. It would also defray costs related to the safe re-opening of libraries and support a range of services to patrons. Environmental Status: Not applicable Strategic Plan Goal: Non-Applicable -Administrative Item City of Huntington Beach Page 3 of 4 Printed on 7/17/2020 powerelf*LegistarTM File #: 20-1778 MEETING DATE: 7/20/2020 Attachment(s): 1. Senate Bill 1386 (Moorlach) 2. Assembly Bill 1063 (Petrie-Norris) 3. Senate Bill 1120 (Atkins) 4. Senate Bill 1385 (Caballero) 5. Senate Constitutional Amendment 1 (Allen and Wiener) 6. Senate Bill 1299 (Portantino) 7. Assembly Bill 2345 (Gonzalez) 8. Library Stabilization Fund Act (Reed and Levin) City of Huntington Beach Page 4 of 4 Printed on 7/17/2020 powereR4 Legistar7M City Council/ ACTION AGENDA July 20, 2020 Public Financing Authority 13. 20-1754 Approved and authorized execution of the Professional Services Contract between the City of Huntington Beach and Noll & Tam Architects to Complete a Library Facilities Master Plan Utilizing Restricted Library Development Impact Fee Funds; and, approve appropriation of funds Recommended Action: Approve and authorize the City Manager to execute "Professional Services Contract Between the City of Huntington Beach and Noll & Tam Architects for a Library Facilities Master Plan" and appropriate $289,697 in the Library Development Impact Fund (Business Unit 22950001 . Approved 7-0 14. 20 1766 Approved Appointments and Reappointments to the Huntington Beach Youth Board with Terms to Expire May 31, 2021 Recommended Action: A) As recommended by City Council Member liaisons Jill Hardy and Kim Carr, approve the appointment of the following students to a one-year term on the Huntington Beach Youth Board with terms to expire May 31, 2021: Vivian Bui - Huntington Beach High School, At-Large Member Luke Blankenbaker - Huntington Beach High School, At-Large Member Kenady Osborne - Marina High School, At-Large Member Emma Weston - Edison High School, At-Large Member B) As recommended by City Council Member liaisons Jill Hardy and Kim Carr, approve the reappointment of the following students to a one-year term on the Huntington Beach Youth Board with terms to expire May 31, 2021: Jenna Ali - Huntington Beach High School, Representative Bella Brannon - Ocean View High School, Representative Samuel Dater- Edison High School, Representative Kathryn Robinson - Marina High School, Representative Caitlin Sheetz - Edison High School, At-Large Member Approved 7-0 15. 20-1778 City Council Position on Legislation Pending Before Congress and the State Legislature as Recommended by the City Council Intergovernmental Relations Committee (IRC) Recommended Action: A) Approve a City position of Support on Senate Bill 1386 (Moorlach) "Local Government: Assessments, fees, and charges on water hydrants"; and, B) Approve a City position of support in concept/Watch on Assembly Bill 1063 (Petrie- City Council/ ACTION AGENDA July 20, 2020 Public Financing Authority Norris)-"Planning and zoning law on housing elements, accessory dwelling units, and adequate site substitutes"; and , C) Approve a City position of Oppose on Senate Bill 1120 (Atkins) -"Subdivisions: tentative maps"; and, D) Approve a City position of Oppose on Senate Bill 1385 (Caballero) -"Local planning: housing, commercial zones"; and, E) Approve a City position of Watch on Senate Constitutional Amendment 1 (Allen) - "Public housing projects"; and, F) Approve a City position of Oppose on Senate Bill 1299 (Portantino) -"Housing development: incentives, rezoning of idle retail sites"; and, G) Approve a City position of Watch on Assembly Bill 2345 (Gonzalez) -"Planning and zoning: density bonuses, annual report, affordable housing"; and, H) Approve a City position of Watch on the Library Stabilization Fund Act (Reed and Levin). Approved 7-0 as amended— Item B) added "support in concept" 16. 20 1744 Adopted Ordinance Nos. 4214, 4212, 4215, 4216, and 4213, Zoning Text Amendment (ZTA) No. 19-005 and Municipal Code Amendment adding Chapter 5.110 (Group Homes) Approved for introduction July 7, 2020, Vote: 7-0 Recommended Action: Approve Zoning Text Amendment No. 19-005 with findings (Attachment No. 1), approve amendment to Huntington Beach Municipal Code adding Chapter 5.110 (Group Homes). and adopt: Ordinance No. 4214, "An Ordinance of the City Council of the City of Huntington Beach Amending Chapter 203 of the Huntington Beach Zoning and Subdivision Ordinance Titled Definitions (Zoning Text Amendment No. 19-005);" and, Ordinance No. 4212, "An Ordinance of the City Council of the City of Huntington Beach Amending Chapter 204 of the Huntington Beach Zoning and Subdivision Ordinance Titled Use Classifications (Zoning Text Amendment No. 19-005);" and, Ordinance No. 4215, "An Ordinance of the City Council of the City of Huntington Beach Amending Chapter 210 of the Huntington Beach Zoning and Subdivision Ordinance Titled R Residential Districts (Zoning Text Amendment No. 19-005);" and, AMENDED IN ASSEMBLY DULY 27, 2020 AMENDED IN SENATE APRIL 1, 2020 SENATE BILL No. 1386 Introduced by Senator Moorlach February 21, 2020 An act to amend Section 53 750 of and to add Section 53750.5-ta,-to the Government Code, relating to local government finance. LEGISLATIVE COUNSEL'S DIGEST SB 1386, as amended, Moorlach. Local government: assessments, fees, and charges:-w et water: hydrants. The California Constitution specifies various requirements with respect to the levying of assessments and property-related fees and charges by a local agency, including requiring that the local agency provide public notice and a majority protest procedure in the case of assessments and submit property-related fees and charges for approval by property owners subject to the fee or charge or the electorate residing in the affected area following a public hearing. Existing law,known as the Proposition 218 Omnibus Implementation Act,prescribes specific procedures and parameters for local jurisdictions to comply with these requirements and, among other things,authorizes an agency providing water, wastewater, sewer, or refuse collection services to adopt a schedule of fees or charges authorizing automatic adjustments that pass through increases in wholesale charges for water, sewage treatment, or wastewater treatment or adjustments for inflation under certain circumstances. Existing law defines, among other terms, the term "water" for these purposes to mean any system of public improvements intended to provide for the production, storage, supply, treatment, or distribution of water from any source. 97 171 SB 1386 —2— This bill would specify that hydrants, as defined, are part of the system ofpublic improvements included in the definition of"water"for purposes of the Proposition 218 Omnibus Implementation ^et also ineludes the From any sottree. Act. The bill would specify that a property-related water service fee or charge by a local agency may include the costs to construct, maintain, repair, or replace water system, and the eost of water dispensed through publie hydfants, to the extent, those fees or eharges are eonsistent with the Califorfli n.._stit.•tio . hydrants to comply with fire codes and industry standards, and may include the cost of water distributed through hydrants. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. The people of the State of California do enact as follows: 2 amended to readl 3 53750. For ptirposes of Atliele X111.G and Attiele X111 D--of 4 the Galifomia Gonstittition and this artiele, the Following words 5 have the Following meanings, and shall be read and intefpreted in 6 light ofthe findings and deelaraf ions eontaitted in Seetion 5375 1: 7 'Ageney" means any loeal govemment as define 9 r..nstittttio. 10 'Assessment"means any levy or eharge by an ageney upon 11 real property that is based upon the speeial benefit eonf�ffed upon 12 13 imposed to pay the eapital eost of the publie t, the 14 maintenanee and opefatiott expenses of the publie improvement, 15 or the eost of the serviee being provided. 'Assessment" ittelutle-s, 16 "benefit " 17 " 18 " "means an afea that is deteftnined by an agettey to 19 20 97 172 —3— SB 1386 1 "Dfainage system" means any system of publi-e 2 , 3 . 4 "when applied to an existing tax or fee or ehafge, 5 6 for the tax of fee or eltarge, ineittding, bttt not limited to, 7 amendment or removai. of a sunset expiration d 8 "Flood 9 that is intended to proteet pfoperty firom overflow by water. 10 " means a pareel of real propefty that an 11 ageney has identified as having a speeial benefit eonferfed upon. 12 it and ttpon vvhieh a proposed assessment is to be imposed, or 13 pareel of real property upon whieh a proposed propefty felated 14 . 15 " when applied to a tax, assessment,--of 16 property eharge, 17 does either ofthe followlngL 18 , 19 assessment, fee, or ehatge. 20 , 21 or eharge is ealettlated, if that fevision results in an inereasedd 22 amotmt being levied on any person or pafeel. 23 " 24 ageney aetion thaf does either of both of the f-ollowing: 25 , or eftaI6�, III a%.%,Vjdjanee 26 27 for inflafion adjustment thaf was adopted by the ageney prior to 28 November c 1996. 29 , 30 eharge, so long as the rafe is not inereased beyond the 1eve4 31 previously approved by the agener, and the methodology 32 previously approved by the ageney is not fevised so as to res 33 an inerease in the amottnt being levied on any person or paree4-. 34 , or eharge is not deemed to be 35 " 36 of pfoperty are higher than wottid have resulted when the ageney 37 , if those higlier 38 payments are attributable to events other than an inereased fate o 39 revised methodologr, sueh as a ehange in the density-, ' , 40 or nattre of the ttse of land. 97 173 SB 1386 —4— 1 "Notiee by E 2 er-XH1 3 through a mailing,postage prepaid, deposited in the United States 4 Postal Seff iee md is deemed given when so deposited.Notiee by 5 mail may be itteluded in any other mailing to the reeord owne 6 that otherwise eomplies with Artiele Xill Gaf Xil1 9 of the 7 , bttt not limited 8 to, the mailing of a bill for the eolleetion of an assessment or 9 property related fee or eharge. 10 " means the owner of a pareel whose name 11 and address appears on the last eqttalized seettred property tax 12 t, roll, or in the ease of any pttblie etititr, the State o 13 California, or the 14nited Staf es, mearts the representative of that, 14 pttblie entity af the address of that entity known to the agetter. 15 " ineittdes systems, all real estate, fixtttres,-ttftd 16 , 17 , 18 disposition for sanitary or drairtag teluding lateral and 19 , sanitary 20 disposal plants of works, drains, eondttits, 21 otttlets for surfaee or storm waters, attd arty and all other works, 22 property, 23 or disposal of sewage,industrial waste,or surfaee or storm wafers. 24 " " shall tiot ineittde a sewer system that merel 25 eolleets sewage on the property of a single ownen 26 " means an 27 28 29 and Professions Gode). 30 "means any systern ofpublie improvements 31 , 32 prfferttion, abatement, and eontrol of veetors as defined in 33 34 a pest as defined in Seetiort 5006 of the Food and Agriettlfutua4 35 36 "means arty system o.fpttblie improvements,and the 37 publie fixtttfes, applianees, and arpttftenattees eonneeted to that 38 , 39 treatment, or disttibtttion ofwater from any soutee. 97 174 -5— SB 1386 1 SEC. 2: 2 SECTION]. Section 53750.5 is added to the Government Code, 3 to read: 4 53750.5. (a) The Legislature finds and declares all of the 5 following: 6 (1) Fire service is a different and distinct 7 eategery of service from 8 watef seffiee pfoviden, whieh aids the fire 1JIUVI—jer in 9 wig water service, which is one of several other services 10 that aids in the provision of fire service. 11 12 fixture, applianee, of appttrtettanee eonneeted to a water system 13 for the purpose of providing an immediately available water sel V 1%�U 14 and afe often used by a water serviee provider Fof water system 15 . 16 (2) Hydrants are part of the system of public improvements 17 described in subdivision (n) of Section 53750. 18 (3) Hydrants are generally designed, installed, and used to 19 provide an immediately available sttpply of wate water service 20 to aid in extinguishing fires that threaten property served by a 21 water service provider, and are generally not designed or installed 22 to provide water service to extinguish fires that threaten strdetttfes 23 and other * Is on propefty 24 pfovider, 25 , or struettffes 26 --itho tt water property not served by a water service 27 provider or wildfires. Hydrants are also used by a water service 28 provider for water system operations and maintenance. 29 (4) Hydrants are generally located in proximity to properties 30 served by a water service provider to facilitate water service to 31 those properties. 32 (4� 33 (5) Hydrants genefally and the water distributed through them 34 are not available to the public at large in substantially the same 35 manner as they are to property owners. owners served by a water 36 service provider because hydrants are designed, installed, and 37 used to serve properties receiving water service, and the public 38 at large does not generally have access to water through those 39 hydrants. Incidental or other de minimis use of hydrants and the 97 175 SB 1386 —6- 1 water distributed through them for other purposes does not change 2 their essential character as a property-related service. 3 4 purpose other than pfopefty proteetion in an emergeney does no 5 make either the hydrant or the watef dispensed from the hydran 6 available to the p4lie at large in stibstantially the same manne 7 as to property owners. 8 9 10 ; 11 beeattse the water is immediately available to be ttsed to extingftish 12 13 and eonettrrently bettefits all pareels, whieh are threafened with 14 damage or destfttetioti by the fire not being extingttished. 15 , 16 , and replaein.9 hydrants and eosts assoeiated with the 17 18 (6) Hydrants and the water distributed through them are part 19 of the property-related water service provided to all property 20 owners served by a water service provider because the water is 21 immediately available to be used to aid in extinguishing a direct 22 or indirect fire threat to properties and concurrently benefits all 23 parcels connected to the water system that are threatened with 24 damage or destruction by the fire not being extinguished. 25 (7) Property-related water service costs may include, but are 26 not limited to, any costs associated with constructing, maintaining, 27 repairing, upgrading, and replacing hydrants, and costs associated 28 with obtaining, treating, and distributing adequate volumes of 29 water to meet the water demands ofproperties served by the water 30 service provider, including water supplied for firefightingpurposes. 31 (b) To the ,.-.tent eonsistent Consistent with the requirements 32 of Section 6 of Article XIII D of the California Constitution, fees 33 or charges for property-related water service may include the costs 34 to construct, maintain, repair, or replace 35 to a water system, and the eost of water dispensed thfough publie 36 hydrants. hydrants to comply with fire codes and industry 37 standards, and may include the cost of water distributed through 38 hydrants. The fee or charge may be fixed and collected consistent 39 with Section 53069.9 of the Government Code, or with 97 176 —7— SB 1386 1 any other method consistent with Section 6 of Article MII D of 2 the California Constitution. 3 (c) For the purpose of this section, "hydrants" means all 4 hydrants and other infrastructure used to distribute water that 5 aids in the protection of property from fire, and all related or 6 appurtenant infrastructure and facilities owned by a water service 7 provider necessary or convenient for distributing water that aids 8 in the protection of property from fire, including adequately sized 9 and pressurized lines,pumps, and all appurtenances, but does not 10 include privately owned hydrants or other private fire response 11 related infrastructure. 12 (d) This section shall not be construed to prohibit a water 13 service provider from charging an individual property owner 14 consistent with Section 6 of Article XIIID of the California 15 Constitution for the water services related to privately owned 16 hydrants,fire meters,fire sprinklers, or other private fire response 17 related infrastructure. 18 (e) 19 (e) This section is declaratory of existing law. O 97 177 AMENDED IN SENATE JUKE 29, 2020 AMENDED IN SENATE JUNE 10, 2019 CALIFORNIA LEGISLATURE-2019-20 REGULAR SESSION ASSEMBLY BILL No. 1063 Introduced by Assembly Member Petrie-Norris February 21, 2019 An act to add Seetiott 100523 to the Government Gode, relating to amend Sections 65583.1 and 65583.2 of, and to add Section 65585.5 to, the Government Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST AB 1063, as amended, Petrie-Norris. Healtheafe euveiuge. warvers. Planning and Zoning Law: housing elements:accessory dwelling units: adequate site substitutes. (1) The Planning and Zoning Law requires that the housing element Of a city's or county's general plan consist of an identification and analysis of existing and projected housing needs and a statement of goals,policies, quantified objectives,financial resources, and scheduled programs for the preservation, improvement, and development of housing. The law requires the Department of Housing and Community Development to determine the existing and projected need for housing for each region, as specified. The law also requires that the housing element include an inventory of land suitable for residential development and requires that inventory to be used to identify sites that can be developed for housing within the planning period and that are sufficient to provide for the city's or county's share of the regional housing need. Existing law requires the planning agency of a city or county to submit a draft element or draft amendment to the department prior to adoption, 97 178 AB 1063 —2— as specified. Existing law requires the department to determine whether the draft element or draft amendment substantially complies with the provisions of the Planning and ZoningLaw relating to housing elements. Existing law authorizes the department, in evaluating a proposed or adopted housing elementfor substantial compliance with the provisions of the Planning and Zoning Law relating to housing elements, to allow a city or county to identify adequate sites by a variety of methods, as specified. Existing law authorizes the department to allow a city or county to identify sites for accessory dwelling units based on the number of accessory dwelling units developed in the prior housing element planning period whether or not the units are permitted by right, the need for these units in the community, those units in the community, the resources or incentives available for their development, and any other relevant factors, as determined by the department. This bill would, instead, require the department, in making that evaluation, to allow a city or county to identify adequate sites by a variety of methods, as specified. The bill would require the department to allow a city or county to identify sites for potential accessory dwelling units based on existing zoning standards and the demonstrated potential capacity to accommodate accessory dwelling units and junior accessory dwelling units, as determined by the city or county. If the combination of potential accessory dwelling units and junior accessory dwelling units constitutes greater than 50% of the units identified to meet the city's or county's share of the regional need for affordable housing for lower income households, the bill would require the housing element to provide supplementary policies,programs, and actions that further encourage or incentivize the development of accessory dwelling units and junior accessory dwelling units for lower income households. The bill would require the department to determine the affordability of a potential accessory dwelling unit or a junior accessory dwelling unit by taking into account relevant factors justified by the city or county, as specified. The bill would require the department to presume that very low and low-income renter households would occupy accessory units in a proportion greater than or equal to the proportion of very low and low- income renter households to all renter households in the city or county, as specified. Existing law authorizes the department to allow a city or county to substitute the provision of units for up to 25% of the city's or county's obligation to identify adequate sites for any income category if the city or county includes in its housing element a program committing the 97 179 —3— AB 1063 city or county to provide qualifying units in that income category within the city or county that will be made available through the provision of committed assistance, as specified. Under existing law, units qualify for inclusion in the program providing committed assistance if the units, among other requirements, are located either on foreclosed property or in a multifamily rental or ownership housing complex of 3 or more units, and have long-term affordability covenants and restrictions that require the units to be affordable to persons of low-or very low income for not less than SS years. Under existing law, units also qualify for inclusion in the program if the units, among other requirements, have long-term affordability covenants and restrictions that require the unit to be affordable to, and reserved for occupancy by,persons of the same or lower income group as the current occupants for a period of at least 40 years, and the city or county finds that the units are eligible, and are reasonably expected, to change from housing affordable to low- and very low income households to any other use during the next S years due to specified events. This bill, instead, would authorize the department to allow a city or county to substitute the provision of units for up to 50% of the city's or county's obligation to identify adequate sites for any income category if the city or county includes in its housing element a program that either commits the city or county to provide, or requires a private entity to provide, specified units in that income category within the city or county that will be made available through the provision of committed assistance, as specified. The bill would revise the qualifications for inclusion in the program for both types of units described above by reducing the minimum period of time for the affordability covenants and restrictions to 20 years unless a longer period is required by other supplementary financial assistance. The bill would also revise the qualifications for the latter type of units by extending the period of time within which the city or county is required to find the units are eligible, and are reasonably expected, to change to another use to 10 years. Existing law requires a city or county that has included in its housing element a qualified program providing units with committed assistance to provide a progress report to the legislative body and to the department in the 3rd year of the planning period, as specified. If the city or county has not entered into an enforceable agreement of committed assistance for all units specified in those programs by July 1 of the 3rd year of the planning period, existing law requires the city or county to adopt an amended housing element identifying additional 97 180 AB 1063 —4— adequate sites sufficient to accommodate the number of units for which committed assistance was not provided not later than July 1 of the 4th year of the planning period. This bill would instead require the city or county to provide that report in the 5th year of the planning period. If the city or county has not entered into that agreement of committed assistance by July I of the 5th year of the planning period, the bill would require the city or county to adopt that amended housing element not later than July I of the 6th year of the planning period. Under existing law, the above-described provisions governing the substitution of adequate site identification with the provision of units do not apply to a city or county that, during the current or immediately prior planning period, has not met any of its share of the regional need for affordable housing for low- and very low income households. This bill would remove that exclusion. (2) The Planning and Zoning Law also requires the inventory of land suitable for residential development in the housing element to include, among other things, a description of the existing use of each property on nonvacant sites. Existing law requires the city or county to specify the additional development potential for each nonvacant site within the planning period and to provide an explanation of the methodology to determine that potential. If a city or county relies on nonvacant sites to accommodate 50% or more of its housing need for lower income households, existing law requires that methodology to demonstrate that the existing use does not constitute an impediment to additional development during the period covered by the housing element.Existing law requires an existing use to be presumed to impede additional residential development, absentfindings based on substantial evidence that the use is likely to be discontinued during the planning period. This bill would deem certain conditions to be substantial evidence that an existing use is likely to be discontinued during the planning period. (3) The Planning and Zoning Law requires a planning agency to submit its draft housing element or amendment to the housing element and, after adoption by the legislative body, a copy of the adopted housing element or amendment to the Department of Housing and Community Development for review. If the department finds that the housing element or amendment does not substantially comply with specified law, existing law requires the department to notify the city, county, or city and county, and authorizes the department to notify the 97 181 —5— AB 1063 Attorney General, that the city, county, or city and county is in violation ofstate law. Existing law authorizes the Attorney General, in an action relating to housing element compliance pursuant to a notice or referral from the department, to request that the court issue an order or judgment directing the jurisdiction to bring its housing element in substantial compliance and authorizes the court to impose fines and order specified other remedies under certain circumstances. This bill, for the 6th and each subsequent revision of the housing element, if an affected local government has submitted the revision of its housing element to the voters for approval before the applicable due date but the voters have not yet voted on the housing element revision, would exempt that local government from the above-described fines or other penalties for failure to adopt its housing element by the applicable due date. The bill, for the 6th and each subsequent revision of the housing element, if the affected local government has submitted the applicable revision of its housing element to the voters for approval before the applicable due date and the voters have rejected the housing element, would similarly exempt the affected local government from the above-described fines or penalties for failure to adopt its housing element by the applicable due date, but would authorize the court in an action brought by the Attorney General to order specified remedies under which the agent of the court may take all governmental actions necessary to bring the jurisdiction's housing element into substantial compliance in order to remedy identified deficiencies. The bill would define "affected local government"for these purposes to mean a local government that is subject to a requirement that the adoption or amendment of the housing element be approved by the voters of that local government and that has submitted a draft of the applicable proposed revision of its housing element to the department. Existing federal lavt, the Patient Proteetion and AfFordable Care Aet (PP�kGik), requires eaeh state to establish an Amefiea-n Health Benefit, a state to apply to the United States Departtnent ofllealth and litttnan if eertain etsiteria are met,ineluding that the state has enaeted a law that Calif6mia Health Benefit Exehange,also known as Govered Galifornia, to faeilitate the enrollment of qttalified individuals and qualified Stnall employers in qualified health plans as reqttirecl under PPAGA. 97 182 AB 1063 —6— This bill would require express statutory authority to reqttest a state innavaf ion waiver from the United States Depaftment of 1 lealth and 11ttman Seffiees. The bill would also make related findings and deelarations. Vote: majority. Appropriation: no. Fiscal committee: eyes. State-mandated local program: no. The people of the State of California do enact as follows: 1 SECTION 1. Section 65583.1 of the Government Code is 2 amended to read: 3 65583.1. (a) (1) The Department of Housing and Community 4 Development,in evaluating a proposed or adopted housing element 5 for substantial compliance with this article, shall allow a city 6 or county to identify adequate sites,as required pursuant to Section 7 65583, by a variety of methods, including, but not limited to, 8 redesignation of property to a more intense land use category and 9 increasing the density allowed within one or more categories.-The 10 (2) (A) The departments shall also allow a city or county 11 to identify sites for potential accessory dwelling units based on 12 the nttmbef of aeeessofy dwelling units developed in the 13 . d whether of not the units are 14 , 15 , 16 othef relevant faetors, as determined by the depaftment. �4othi-ng 17 existing zoning standards and the demonstrated potential capacity 18 to accommodate accessory dwelling units and junior accessory 19 dwelling units, as determined by the city or county. If the 20 combination of potential accessory dwelling units and junior 21 accessory dwelling units constitutes greater than 50 percent of the 22 units identified to meet the city's or county's share of the regional 23 need for affordable housing for lower income households, the 24 housing element shall provide supplementary policies,programs, 25 and actions thatfurther encourage or incentivize the development 26 of accessory dwelling units and junior accessory dwelling units 27 for lower income households. 28 (B) For purposes of this paragraph, the department shall 29 determine the affordability of a potential accessory dwelling unit 30 or a junior accessory dwelling unit by taking into account the city's 31 or county's need for accessory dwelling units and a junior 97 183 —7— AB 1063 1 accessory dwelling units in the city or county, the resources or 2 incentives available for their development, and any other relevant 3 factors justified by the city or county. The department shall 4 presume that very low and low-income renter households would 5 occupy accessory units in a proportion greater than or equal to 6 the proportion of very low and low-income renter households to 7 all renter households in the city or county, as determined by the 8 most recently available data from the United States Department 9 of Housing and Urban Development's Comprehensive Housing 1.0 Affordability Strategy database. 11 (3) Nothing in this section subdivision reduces the responsibility 12 of a city or county to identify,by income category,the total number 13 of sites for residential development as required by this article. 14 (b) (1) Sites that contain permanent housing units located on a 15 military base undergoing closure or conversion as a result of action 16 pursuant to the Defense Authorization Amendments and Base 17 Closure and Realignment Act(Public Law 100-526), the Defense 18 Base Closure and RealignmentAct of 1990(Public Law 101-510), 19 or any subsequent act requiring the closure or conversion of a 20 military base may be identified as an adequate site if the housing 21 element demonstrates that the housing units will be available for 22 occupancy by households within the planning period of the 23 element. No sites containing housing units scheduled or planned 24 for demolition or conversion to nonresidential uses shall qualify 25 as an adequate site. 26 Any 27 (2) Any city, city and county, or county using this subdivision 28 shall address the progress in meeting this section in the reports 29 provided pursuant to paragraph (1) of subdivision (b) of Section 30 65400. 31 (c) (1) The Department of Housing and Community 32 Development may allow a city or county to substitute the provision 33 of units for up to--2-_'� 50 percent of the city's or 34 county's obligation to identify adequate sites for any income 35 category in its housing element pursuant to paragraph (1) of 36 subdivision (c) of Section 65583 where the eommunity if the city 37 or county includes in its housing element a program eommitting 38 the loeal government to provide that either commits the city or 39 county to provide, or requires a private entity to provide, units in 40 that income category within the city or county that will be made 97 184 AB 1063 —8— 1 available through the provision of committed assistance during 2 the planning period covered by the element to low- and very low 3 income households at affordable housing costs or affordable rents, 4 as defined in Sections 50052.5 and 50053 of the Health and Safety 5 Code, and which meet the requirements of 6 paragraph (2), (3), or (4). Except as otherwise provided in this 7 subdivision, the city or county may substitute one 8 dwelling unit for one dwelling unit site in the applicable income 9 category. The program shall do all of the following: 10 (A) Identify the specific, existing sources of committed 11 assistance and dedicate a specific portion of the funds from those 12 sources to the provision of housing pursuant to this subdivision. 13 (B) Indicate the number of units that will be provided to both 14 low- and very low income households and demonstrate that the 15 amount of dedicated funds is sufficient to develop the units at 16 affordable housing costs or affordable rents. 17 (C) Demonstrate that the units meet the requirements of 18 paragrapher} (2), (3), or (4). 19 , 20 21 , as 22 (A-) 23 (2) Units—th-at qualify for inclusion in the housing element 24 program described in paragraph (1) if the units are to be 25 substantially rehabilitated with committed assistance from the city 26 or county and would constitute a net increase in the ' 27 city's or county's stock of housing affordable to low-and very low 28 income households.For purposes of this ,paragraph, 29 a unit is not eligible to be "substantially rehabilitated" unless all 30 of the following requirements are met: 31 (4) 32 (A) .At the time the unit is identified for substantial rehabilitation, 33 the city or county has 34 done all of the following: 35 (i) Determined that the unit is at imminent risk of loss to the 36 housing stock. 37 (ii) Committed to provide relocation assistance pursuant to 38 Chapter 16(commencing with Section 7260)of Division 7 of Title 39 1 to any occupants temporarily or permanently displaced by the 40 rehabilitation or code enforcement activity, or the relocation is 97 185 —9— AB 1063 1 otherwise provided prior to displacement either as a condition of 2 receivership, or provided by the property owner or the local 3 government pursuant to Article 2.5 (commencing with Section 4 17975) of Chapter 5 of Part 1.5 of Division 13 of the Health and 5 Safety Code,or as otherwise provided by local ordinance;provided 6 the assistance includes not less than the equivalent of four months' 7 rent and moving expenses and comparable replacement housing 8 consistent with the moving expenses and comparable replacement 9 housing required pursuant to Section 7260, 10 govemment requires 7260. 11 (iii) Required that any displaced occupants will have the right 12 to reoccupy the rehabilitated units, and-(Pv� 13 (iv) At the time the unit is identified for substantial 14 rehabilitation, the unit has been found by the-lo 15 city or county or a court to be unfit for human habitation due to 16 the existence of at least four violations of the conditions listed in 17 subdivisions(a)to (g), inclusive, of Section 17995.3 of the Health 18 and Safety Code. 19 20 (B) The rehabilitated unit will have long-term affordability 21 covenants and restrictions that require the unit to be available to, 22 and occupied by, persons or families of low- or very low income 23 at affordable housing costs for at least 20 years or the time period 24 required by any applicable federal or state law or regulation. 25 {4ij 26 (C) Prior to initial occupancy after rehabilitation,the local code 27 enforcement agency shall issue a certificate of occupancy indicating 28 compliance with all applicable state and local building code and 29 health and safety code requirements. 30 {B) 31 (3) Units 4iat are qualms for inclusion in the housing element 32 program described in paragraph (1) if the units meet all of the 33 following requirements: 34 (A) The units are located either on foreclosed property or in a 35 multifamily rental or ownership housing complex of three or more 36 units, aire units. 37 (B) The units are converted with committed assistancee 38 eiiy v, evuifty from nonaffordable to affordable by acquisition of 39 the unit or the purchase of affordability covenants and restrictions 40 for the unit, are not acquired by eminent ao__.ait , and eonstitut. 97 186 AB 1063 —to- 1 net inerease in the eotntnttnity's 2 low and very low ineome hottseh domain. For purposes of 3 this subparagraph, a unit is not converted by acquisition or the 4 purchase of affordability covenants unless all of the following 5 occur: 6 (i) The unit is made available for rent at a cost affordable to 7 low- or very low income households. 8 (ii) At the time the unit is identified for acquisition, the unit is 9 not available at an affordable housing cost to either of the 10 following: 11 (I) Low-income households, if the unit will be made affordable 12 to low-income households. 13 (II) Very low income households, if the unit will be made 14 affordable to very low income households. 15 (iii) At the time the unit is identified for acquisition the unit is 16 not occupied by low- or very low income households or if the 17 acquired unit is occupied, the local government or the private 18 entity providing the committed assistance has committed to provide 19 relocation assistance prior to displacement, if any, pursuant to 20 Chapter 16(commencing with Section 7260)of Division 7 of Title 21 1 to any occupants displaced by the conversion, or the relocation 22 is otherwise provided prior to displacement;provided the assistance 23 includes not less than the equivalent of four months' rent and 24 moving expenses and comparable replacement housing consistent 25 with the moving expenses and comparable replacement housing 26 required pursuant to Section 7260. 27 (iv) The unit is in decent, safe, and sanitary condition at the 28 time of occupancy. 29 (v) The unit has long-term affordability covenants and 30 restrictions that require the unit to be affordable to persons of low- 31 or very low income for not less than 5 5 years. 20 years, unless a 32 longer period is required by another supplementary financial 33 assistance program. 34 (vi) For units located in multifamily ownership housing 35 complexes with three or more units,or on or after January 1,2015, 36 on foreclosed properties, at least an equal number of 37 new-construction multifamily rental units affordable to lower 38 income households have been constructed in the city or county 39 within the same planning period as the number of ownership units 40 to be converted. 97 187 -11 — AB 1063 1 (C) The units would constitute a net increase in the city's or 2 county's stock of housing affordable to low-and very low income 3 households. 4 f G) 5 (4) Units qualify for inclusion in the housing element 6 program described in paragraph (1) if the units will be preserved 7 at affordable housing costs to persons or families of low- or very 8 low incomes with committed assistance from the city or county 9 by acquisition of the unit or the purchase of affordability covenants 10 for the unit. For purposes of this ,paragraph, a unit 11 shall not be deemed preserved unless all of the following occur: 12 0) 13 (A) The unit has long-term affordability covenants and 14 restrictions that require the unit to be affordable to, and reserved 15 for occupancy by, persons of the same or lower income group as 16 the current occupants for a period of at least-4 -yeaf� 20 years, 17 unless a longer period is required by another supplementary 18 financial assistance program. 19 (44) 20 (B) The unit is within an "assisted housing development," as 21 defined in paragraph (3) of subdivision (a) of Section 65863.10. 22 23 (C) The city or county finds, after a public hearing,that the unit 24 is eligible, and is reasonably expected, to change from housing 25 affordable to low- and very low income households to any other 26 use during the next-five 10 years due to termination of subsidy 27 contracts, mortgage prepayment, or expiration of restrictions on 28 use. 29 30 (D) The unit is in decent, safe,and sanitary condition at the time 31 of occupancy. 32 (-v) 33 (E) At the time the unit is identified for preservation it is 34 available at affordable cost to persons or families of low- or very 35 low income. 36 , 37 , 38 by Seetion 65588,has not met any of its sh—sifle 04'1-1.�..,IUIIrAI ftee4 39 for affordable hottsing, as defitied in Seetion 65 584, 40 97 188 AB 1063 —12— 1 (5) A city or county shall documents any housing unit 2 for which a building permit has been issued and all development 3 and permit fees have been paid orthe and any housing unit that 4 is eligible to be lawfully occupied. 5 (4) 6 (6) For purposes of this subdivision, ed the following 7 terms have the following meanings: 8 (A) "Committed assistance" means assistance for which 9 the city oreounty enters county, or a private entity pursuant to the 10 city's or county's inclusionary housing requirement, has entered 11 into a legally enforceable agreementduring the period from TtIftle 12 beginning of the pfojeetion period until the end ofthe seeond-yeaf 13 that obligates sufficient available funds to 14 provide the assistance necessary to make the identified units 15 affordable and that requires that the units be made available for 16 occupancy within two years of the exeetttion of the agreement. 17 during the planning period. "Committed assistance" does not 18 include tenant-based rental assistance. 19 "net 20 (B) "Net increase" includes only housing units provided 21 committed assistance pursuant to subparagraph (A) of (B) o 22 paragrapher) (2), (3), or (4) in the current planning period, as 23 defined in Section 65588, that were not provided committed 24 assistance in the immediately prior planning period. 25 "the 26 (C) "The time the unit is identified" means the earliest time 27 when any city or county agent, acting on behalf of a public entity, 28 has proposed in writing or has proposed orally or in writing to the 29 property owner, that the unit be considered for substantial 30 rehabilitation, acquisition, or preservation. 31 (7) In the third fifth year of the planning period, as defined by 32 Section 65588, in the report required pursuant to Section 65400, 33 each city or county that has included in its housing element a 34 program to provide units pursuant to , 35 of paragrapher (2), (3), or (4) shall report in writing to the 36 legislative body, and to the department within 30 days of making 37 its report to the legislative body, on its progress in providing units 38 pursuant to this subdivision. The report shall identify the specific 39 units for which committed assistance has been provided or which 40 have been made available to low-and very low income households, 97 189 -13— AB 1063 1 and it shall adequately document how each unit complies with this 2 subdivision. If, by July 1 of theme fifth year of the planning 3 period, the city or-eattrty county, or a private entity pursuant to 4 the city's or county's inclusionary housing requirement, has not 5 entered into an enforceable agreement of committed assistance for 6 all units specified in the programs adopted pursuant to 7 paragraph(2), (3), or(4), the city 8 or county shall, not later than July 1 of the fah sixth year of the 9 planning period,adopt an amended housing element in accordance 10 with Section 65585,identifying additional adequate sites pursuant 11 to paragraph (1) of subdivision (c) of Section 65583 sufficient to 12 accommodate the number of units for which committed assistance 13 was not provided. If a city or county does not amend its housing 14 element to identify adequate sites to address any shortfall, or fails 15 to complete the rehabilitation,acquisition,purchase of affordability 16 covenants, or the preservation of any housing unit within two years 17 after committed assistance was provided to that unit, it shall be 18 prohibited from identifying units pursuant to , 19 paragrapher (2), (3), or (4) in the housing element 20 that it adopts for the next planning period, as defined in Section 21 65588, above the number of units actually provided or preserved 22 due to committed assistance. 23 (d) A city or county may reduce its share of the regional housing 24 need by the number of units built between the start of the projection 25 period and the deadline for adoption of the housing element. If the 26 city or county reduces its share pursuant to this subdivision, the 27 city or county shall include in the housing element a description 28 of the methodology for assigning those housing units to an income 29 category based on actual or projected sales price, rent levels, or 30 other mechanisms establishing affordability. 31 SEC. 2. Section 65583.2 of the Government Code, as amended 32 by Section 15.5 of Chapter 664 of the Statutes of 2019, is amended 33 to read: 34 65583.2. (a) A city's or county's inventory of land suitable 35 for residential development pursuant to paragraph (3) of 36 subdivision (a) of Section 65583 shall be used to identify sites 37 throughout the community, consistent with paragraph (9) of 38 subdivision(c)of Section 65583,that can be developed for housing 39 within the planning period and that are sufficient to provide for 40 the jurisdiction's share of the regional housing need for all income 97 190 AB 1063 —14— 1 levels pursuant to Section 65584. As used in this section, "land 2 suitable for residential development" includes all of the sites that 3 meet the following standards set forth in subdivisions (c) and (g): 4 (1) Vacant sites zoned for residential use. 5 (2) Vacant sites zoned for nonresidential use that allows 6 residential development. 7 (3) Residentially zoned sites that are capable of being developed 8 at a higher density, including sites owned or leased by a city, 9 county, or city and county. 10 (4) Sites zoned for nonresidential use that can be redeveloped 11 for residential use, and for which the housing element includes a 12 program to rezone the site, as necessary, rezoned for, to permit 13 residential use, including sites owned or leased by a city, county, 14 or city and county. 15 (b) The inventory of land shall include all of the following: 16 (1) A listing of properties by assessor parcel number. 17 (2) The size of each property listed pursuant to paragraph (1), 18 and the general plan designation and zoning of each property. 19 (3) For nonvacant sites,a description of the existing use of each 20 property. If a site subject to this paragraph is owned by the city or 21 county, the description shall also include whether there are any 22 plans to dispose of the property during the planning period and 23 how the city or county will comply with Article 8 (commencing 24 with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 25 5. 26 (4) A general description of any environmental constraints to 27 the development of housing within the jurisdiction, the 28 documentation for which has been made available to the 29 jurisdiction. This information need not be identified on a 30 site-specific basis. 31 (5) (A) A description of existing or planned water, sewer, and 32 other dry utilities supply, including the availability and access to 33 distribution facilities. 34 (B) Parcels included in the inventory must have sufficient water, 35 sewer, and dry utilities supply available and accessible to support 36 housing development or be included in an existing general plan 37 program or other mandatory program or plan,including a program 38 or plan of a public or private entity providing water or sewer 39 service, to secure sufficient water, sewer, and dry utilities supply 40 to support housing development. This paragraph does not impose 97 191 -15— AB 1063 1 any additional duty on the city or county to construct, finance, or 2 otherwise provide water, sewer, or dry utilities to parcels included 3 in the inventory. 4 (6) Sites identified as available for housing for above 5 moderate-income households in areas not served by public sewer 6 systems. This information need not be identified on a site-specific 7 basis. 8 (7) A map that shows the location of the sites included in the 9 inventory,such as the land use map from the jurisdiction's general 10 plan, for reference purposes only. 11 (c) Based on the information provided in subdivision(b),a city 12 or county shall determine whether each site in the inventory can 13 accommodate the development of some portion of its share of the 14 regional housing need by income level during the planning period, 15 as determined pursuant to Section 65584. The inventory shall 16 specify for each site the number of units that can realistically be 17 accommodated on that site and whether the site is adequate to 18 accommodate lower income housing, moderate-income housing, 19 or above moderate-income housing. A nonvacant site identified 20 pursuant to paragraph(3)or(4)of subdivision(a)in a prior housing 21 element and a vacant site that has been included in two or more 22 consecutive planning periods that was not approved to develop a 23 portion of the locality's housing need shall not be deemed adequate 24 to accommodate a portion of the housing need for lower income 25 households that must be accommodated in the current housing 26 element planning period unless the site is zoned at residential 27 densities consistent with paragraph (3) of this subdivision and the 28 site is subject to a program in the housing element requiring 29 rezoning within three years of the beginning of the planning period 30 to allow residential use by right for housing developments in which 31 at least 20 percent of the units are affordable to lower income 32 households.An unincorporated area in a nonmetropolitan county 33 pursuant to clause (ii) of subparagraph (B) of paragraph (3) shall 34 not be subject to the requirements of this subdivision to allow 35 residential use by right. The analysis shall determine whether the 36 inventory can provide for a variety of types of housing, including 37 multifamily rental housing, factory-built housing, mobilehomes, 38 housing for agricultural employees, supportive housing, 39 single-room occupancy units,emergency shelters,and transitional 97 192 AB 1063 —16— 1 housing.The city or county shall determine the number of housing 2 units that can be accommodated on each site as follows: 3 (1) If local law or regulations require the development of a site 4 at a minimum density, the department shall accept the planning 5 agency's calculation of the total housing unit capacity on that site 6 based on the established minimum density. If the city or county 7 does not adopt a law or regulation requiring the development of a 8 site at a minimum density, then it shall demonstrate how the 9 number of units determined for that site pursuant to this subdivision 10 will be accommodated. 11 (2) The number of units calculated pursuant to paragraph (1) 12 shall be adjusted as necessary, based on the land use controls and 13 site improvements requirement identified in paragraph (5) of 14 subdivision(a)of Section 65583,the realistic development capacity 15 for the site, typical densities of existing or approved residential 16 developments at a similar affordability level in that jurisdiction, 17 and on the current or planned availability and accessibility of 18 sufficient water, sewer, and dry utilities. 19 (A) A site smaller than half an acre shall not be deemed adequate 20 to accommodate lower income housing need unless the locality 21 can demonstrate that sites of equivalent size were successfully 22 developed during the prior planning period for an equivalent 23 number of lower income housing units as projected for the site or 24 unless the locality provides other evidence to the department that 25 the site is adequate to accommodate lower income housing. 26 (B) A site larger than 10 acres shall not be deemed adequate to 27 accommodate lower income housing need unless the locality can 28 demonstrate that sites of equivalent size were successfully 29 developed during the prior planning period for an equivalent 30 number of lower income housing units as projected for the site or 31 unless the locality provides other evidence to the department that 32 the site can be developed as lower income housing. For purposes 33 of this subparagraph,"site"means that portion of a parcel or parcels 34 designated to accommodate lower income housing needs pursuant 35 to this subdivision. 36 (C) A site may be presumed to be realistic for development to 37 accommodate lower income housing need if, at the time of the 38 adoption of the housing element, a development affordable to 39 lower income households has been proposed and approved for 40 development on the site. 97 193 -17— AB 1063 1 (3) For the number of units calculated to accommodate its share 2 of the regional housing need for lower income households pursuant 3 to paragraph (2), a city or county shall do either of the following: 4 (A) Provide an analysis demonstrating how the adopted densities 5 accommodate this need. The analysis shall include, but is not 6 limited to, factors such as market demand,financial feasibility, or 7 information based on development project experience within a 8 zone or zones that provide housing for lower income households. 9 (B) The following densities shall be deemed appropriate to 10 accommodate housing for lower income households: 11 (i) For an incorporated city within a nonmetropolitan county 12 and for a nonmetropolitan county that has a micropolitan area: 13 sites allowing at least 15 units per acre. 14 (ii) For an unincorporated area in a nonmetropolitan county not 15 included in clause (i): sites allowing at least 10 units per acre. 16 (iii) For a suburban jurisdiction: sites allowing at least 20 units 17 per acre. 18 (iv) For a jurisdiction in a metropolitan county: sites allowing 19 at least 30 units per acre. 20 (d) For purposes of this section, a metropolitan county, 21 nonmetropolitan county, and nonmetropolitan county with a 22 micropolitan area shall be as determined by the United States 23 Census Bureau. A nonmetropolitan county with a micropolitan 24 area includes the following counties: Del Norte,Humboldt, Lake, 25 Mendocino, Nevada, Tehama, and Tuolumne and other counties 26 as may be determined by the United States Census Bureau to be 27 nonmetropolitan counties with micropolitan areas in the future. 28 (e) (1) Except as provided in paragraph(2), a jurisdiction shall 29 be considered suburban if the jurisdiction does not meet the 30 requirements of clauses (i) and (ii) of subparagraph (B) of 31 paragraph (3) of subdivision (c) and is located in a Metropolitan 32 Statistical Area(MSA)of less than 2,000,000 in population,unless 33 that jurisdiction's population is greater than 100,000, in which 34 case it shall be considered metropolitan. A county, not including 35 the City and County of San Francisco,shall be considered suburban 36 unless the county is in an MSA of 2,000,000 or greater in 37 population in which case the county shall be considered 38 metropolitan. 39 (2) (A) (i) Notwithstanding paragraph (1), if a county that is 40 in the San Francisco-Oakland-Fremont California MSA has a 97 194 AB 1063 —18— 1 population of less than 400,000, that county shall be considered 2 suburban. If this county includes an incorporated city that has a 3 population of less than 100,000, this city shall also be considered 4 suburban.This paragraph shall apply to a housing element revision 5 cycle, as described in subparagraph (A) of paragraph (3) of 6 subdivision (e) of Section 65588, that is in effect from July 1, 7 2014, to December 31, 2028, inclusive. 8 (ii) A county subject to this subparagraph shall utilize the sum 9 existing in the county's housing trust fund as of June 30,2013, for 10 the development and preservation of housing affordable to low-and 11 very low income households. 12 (B) A jurisdiction that is classified as suburban pursuant to this 13 paragraph shall report to the Assembly Committee on Housing 14 and Community Development,the Senate Committee on Housing, 15 and the Department of Housing and Community Development 16 regarding its progress in developing low- and very low income 17 housing consistent with the requirements of Section 65400. The 18 report shall be provided three times: once, on or before December 19 31, 2019, which report shall address the initial four years of the 20 housing element cycle, a second time, on or before December 31, 21 2023, which report shall address the subsequent four years of the 22 housing element cycle, and a third time, on or before December 23 31, 2027, which report shall address the subsequent four years of 24 the housing element cycle and the cycle as a whole. The reports 25 shall be provided consistent with the requirements of Section 9795. 26 (f) A jurisdiction shall be considered metropolitan if the 27 jurisdiction does not meet the requirements for "suburban area" 28 above and is located in an MSA of 2,000,000 or greater in 29 population,unless that jurisdiction's population is less than 25,000 30 in which case it shall be considered suburban. 31 (g) (1) For sites described in paragraph (3) of subdivision (b), 32 the city or county shall specify the additional development potential 33 for each site within the planning period and shall provide an 34 explanation of the methodology used to determine the development 35 potential. The methodology shall consider factors including the 36 extent to which existing uses may constitute an impediment to 37 additional residential development, the city's or county's past 38 experience with converting existing uses to higher density 39 residential development,the current market demand for the existing 40 use,an analysis of any existing leases or other contracts that would 97 195 -19— AB 1063 1 perpetuate the existing use or prevent redevelopment of the site 2 for additional residential development,development trends,market 3 conditions, and regulatory or other incentives or standards to 4 encourage additional residential development on these sites. 5 (2) In addition to the analysis required in paragraph (1), when 6 a city or county is relying on nonvacant sites described in paragraph 7 (3) of subdivision (b) to accommodate 50 percent or more of its 8 housing need for lower income households,the methodology used 9 to determine additional development potential shall demonstrate 10 that the existing use identified pursuant to paragraph (3) of 11 subdivision (b) does not constitute an impediment to additional 12 residential development during the period covered by the housing 13 element. An existing use shall be presumed to impede additional 14 residential development, absent findings based on substantial 15 evidence that the use is likely to be discontinued during the 16 planning period.Any of the following conditions shall be deemed 17 to be substantial evidence that an existing use is likely to be 18 discontinued during the planning period: 19 (A) The existing improvement-to-land-value ratio is less than 20 1.0 for commercial and multifamily properties or less than 0.5 for 21 single-family properties according to the most recent available 22 property assessment roll. 23 (B) The site is designated a Moderate Resource area, High 24 Resource area, or Highest Resource area in the most recent Tax 25 Credit Allocation Committee Opportunity Map. 26 (C) Zoning for the site allows residential development by-right 27 that meets both of the following requirements: 28 (i) Have at least 100 percent more floor area than existing 29 structures on the site. 30 (ii) At least 20 percent of the units are affordable to lower 31 income households. 32 (D) The use of nonvacant sites are accompanied by programs 33 and policies that encourage or incentivize the redevelopment to 34 residential use. 35 (3) Notwithstanding any other law, and in addition to the 36 requirements in paragraphs (1) and (2), sites that currently have 37 residential uses, or within the past five years have had residential 38 uses that have been vacated or demolished,that are or were subject 39 to a recorded covenant, ordinance, or law that restricts rents to 40 levels affordable to persons and families of low or very low 97 196 AB 1063 —20- 1 income, subject to any other form of rent or price control through 2 a public entity's valid exercise of its police power, or occupied by 3 low or very low income households, shall be subject to a policy 4 requiring the replacement of all those units affordable to the same 5 or lower income level as a condition of any development on the 6 site. Replacement requirements shall be consistent with those set 7 forth in paragraph (3) of subdivision (c) of Section 65915. 8 (h) The program required by subparagraph(A)of paragraph(1) 9 of subdivision(c)of Section 65583 shall accommodate 100 percent 10 of the need for housing for very low and low-income households 11 allocated pursuant to Section 65584 for which site capacity has 12 not been identified in the inventory of sites pursuant to paragraph 13 (3) of subdivision (a) on sites that shall be zoned to permit 14 owner-occupied and rental multifamily residential use by right for 15 developments in which at least 20 percent of the units are 16 affordable to lower income households during the planning period. 17 These sites shall be zoned with minimum density and development 18 standards that permit at least 16 units per site at a density of at 19 least 16 units per acre in jurisdictions described in clause (i) of 20 subparagraph (B) of paragraph (3) of subdivision (c), shall be at 21 least 20 units per acre in jurisdictions described in clauses(iii)and 22 (iv) of subparagraph (B) of paragraph (3) of subdivision (c) and 23 shall meet the standards set forth in subparagraph(B)of paragraph 24 (5) of subdivision (b). At least 50 percent of the very low and 25 low-income housing need shall be accommodated on sites 26 designated for residential use and for which nonresidential uses 27 or mixed uses are not permitted, except that a city or county may 28 accommodate all of the very low and low-income housing need 29 on sites designated for mixed uses if those sites allow 100 percent 30 residential use and require that residential use occupy 50 percent 31 of the total floor area of a mixed-use project. 32 (i) For purposes of this section and Section 65583, the phrase 33 "use by right" shall mean that the local government's review of 34 the owner-occupied or multifamily residential use may not require 35 a conditional use permit,planned unit development permit,or other 36 discretionary local government review or approval that would 37 constitute a "project" for purposes of Division 13 (commencing 38 with Section 21000)of the Public Resources Code.Any subdivision 39 of the sites shall be subject to all laws, including, but not limited 40 to,the local government ordinance implementing the Subdivision 97 197 —21— AB 1063 1 Map Act.A local ordinance may provide that"use by right" does 2 not exempt the use from design review. However, that design 3 review shall not constitute a"project"for purposes of Division 13 4 (commencing with Section 21000) of the Public Resources Code. 5 Use by right for all rental multifamily residential housing shall be 6 provided in accordance with subdivision (f) of Section 65589.5. 7 0) Notwithstanding any other provision of this section, within 8 one-half mile of a Sonoma-Marin Area Rail Transit station,housing 9 density requirements in place on June 30, 2014, shall apply. 10 (k) For purposes of subdivisions (a) and (b), the department 11 shall provide guidance to local governments to properly survey, 12 detail, and account for sites listed pursuant to Section 65585. 13 (0 This section shall remain in effect only until December 31, 14 2028, and as of that date is repealed. 15 SEC. 3. Section 65583.2 of the Government Code, as amended 16 by Section 16.5 of Chapter 664 of the Statutes of 2019, is amended 17 to read: 18 65583.2. (a) A city's or county's inventory of land suitable 19 for residential development pursuant to paragraph (3) of 20 subdivision (a) of Section 65583 shall be used to identify sites 21 throughout the community, consistent with paragraph (9) of 22 subdivision(c)of Section 65583,that can be developed for housing 23 within the planning period and that are sufficient to provide for 24 the jurisdiction's share of the regional housing need for all income 25 levels pursuant to Section 65584. As used in this section, "land 26 suitable for residential development"includes all of the following 27 sites that meet the standards set forth in subdivisions (c) and (g): 28 (1) Vacant sites zoned for residential use. 29 (2) Vacant sites zoned for nonresidential use that allows 30 residential development. 31 (3) Residentially zoned sites that are capable of being developed 32 at a higher density, and sites owned or leased by a city, county, or 33 city and county. 34 (4) Sites zoned for nonresidential use that can be redeveloped 35 for residential use, and for which the housing element includes a 36 program to rezone the site, as necessary,to permit residential use, 37 including sites owned or leased by a city, county, or city and 38 county. 39 (b) The inventory of land shall include all of the following: 40 (1) A listing of properties by assessor parcel number. 97 198 AB 1063 —22— 1 (2) The size of each property listed pursuant to paragraph (1), 2 and the general plan designation and zoning of each property. 3 (3) For nonvacant sites,a description of the existing use of each 4 property. If a site subject to this paragraph is owned by the city or 5 county, the description shall also include whether there are any 6 plans to dispose of the property during the planning period and 7 how the city or county will comply with Article 8 (commencing_ 8 with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 9 5. 10 (4) A general description of any environmental constraints to 11 the development of housing within the jurisdiction, the 12 documentation for which has been made available to the 13 jurisdiction. This information need not be identified on a 14 site-specific basis. 15 (5) (A) A description of existing or planned water, sewer, and 16 other dry utilities supply, including the availability and access to 17 distribution facilities. 18 (B) Parcels included in the inventory must have sufficient water, 19 sewer, and dry utilities supply available and accessible to support 20 housing development or be included in an existing general plan 21 program or other mandatory program or plan,including a program 22 or plan of a public or private entity providing water or sewer 23 service, to secure sufficient water, sewer, and dry utilities supply 24 to support housing development. This paragraph does not impose 25 any additional duty on the city or county to construct, finance, or 26 otherwise provide water, sewer,or dry utilities to parcels included 27 in the inventory. 28 (6) Sites identified as available for housing for above 29 moderate-income households in areas not served by public sewer 30 systems. This information need not be identified on a site-specific 31 basis. 32 (7) A map that shows the location of the sites included in the 33 inventory, such as the land use map from the jurisdiction's general 34 plan for reference purposes only. 35 (c) Based on the information provided in subdivision(b), a city 36 or county shall determine whether each site in the inventory can 37 accommodate the development of some portion of its share of the 38 regional housing need by income level during the planning period, 39 as determined pursuant to Section 65584. The inventory shall 40 specify for each site the number of units that can realistically be 97 199 —23— AB 1063 1 accommodated on that site and whether the site is adequate to 2 accommodate lower income housing, moderate-income housing, 3 or above moderate-income housing. A nonvacant site identified 4 pursuant to paragraph(3)or(4)of subdivision(a)in a prior housing 5 element and a vacant site that has been included in two or more 6 consecutive planning periods that was not approved to develop a 7 portion of the locality's housing need shall not be deemed adequate 8 to accommodate a portion of the housing need for lower income 9 households that must be accommodated in the current housing 10 element planning period unless the site is zoned at residential 1 I densities consistent with paragraph (3) of this subdivision and the 12 site is subject to a program in the housing element requiring 13 rezoning within three years of the beginning of the planning period 14 to allow residential use by right for housing developments in which 15 at least 20 percent of the units are affordable to lower income 16 households. A city that is an unincorporated area in a 17 nonmetropolitan county pursuant to clause (ii) of subparagraph 18 (B) of paragraph (3) shall not be subject to the requirements of 19 this subdivision to allow residential use by right.The analysis shall 20 determine whether the inventory can provide for a variety of types 21 of housing, including multifamily rental housing, factory-built 22 housing, mobilehomes, housing for agricultural employees, 23 supportive housing, single-room occupancy units, emergency 24 shelters, and transitional housing. The city or county shall 25 determine the number of housing units that can be accommodated 26 on each site as follows: 27 (1) If local law or regulations require the development of a site 28 at a minimum density, the department shall accept the planning 29 agency's calculation of the total housing unit capacity on that site 30 based on the established minimum density. If the city or county 31 does not adopt a law or regulation requiring the development of a 32 site at a minimum density, then it shall demonstrate how the 33 number of units detennined for that site pursuant to this subdivision 34 will be accommodated. 35 (2) The number of units calculated pursuant to paragraph (1) 36 shall be adjusted as necessary, based on the land use controls and 37 site improvements requirement identified in paragraph (5) of 38 subdivision(a)of Section 65583,the realistic development capacity 39 for the site, typical densities of existing or approved residential 40 developments at a similar affordability level in that jurisdiction, 97 200 AB 1063 —24— 1 and on the current or planned availability and accessibility of 2 sufficient water, sewer, and dry utilities. 3 (A) A site smaller than half an acre shall not be deemed adequate 4 to accommodate lower income housing need unless the locality 5 can demonstrate that sites of equivalent size were successfully 6 developed during the prior planning period for an equivalent 7 number of lower income housing units as projected for the site or 8 unless the locality provides other evidence to the department that 9 the site is adequate to accommodate lower income housing. 10 (B) A site larger than 10 acres shall not be deemed adequate to 11 accommodate lower income housing need unless the locality can 12 demonstrate that sites of equivalent size were successfully 13 developed during the prior planning period for an equivalent 14 number of lower income housing units as projected for the site or 15 unless the locality provides other evidence to the department that 16 the site can be developed as lower income housing. For purposes 17 of this subparagraph,"site"means that portion of a parcel or parcels 18 designated to accommodate lower income housing needs pursuant 19 to this subdivision. 20 (C) A site may be presumed to be realistic for development to 21 accommodate lower income housing need if, at the time of the 22 adoption of the housing element, a development affordable to 23 lower income households has been proposed and approved for 24 development on the site. 25 (3) For the number of units calculated to accommodate its share 26 of the regional housing need for lower income households pursuant 27 to paragraph (2), a city or county shall do either of the following: 28 (A) Provide an analysis demonstrating how the adopted densities 29 accommodate this need. The analysis shall include, but is not 30 limited to, factors such as market demand,financial feasibility, or 31 information based on development project experience within a 32 zone or zones that provide housing for lower income households. 33 (B) The following densities shall be deemed appropriate to 34 accommodate housing for lower income households: 35 (i) For an incorporated city within a nonmetropolitan county 36 and for a nonmetropolitan county that has a micropolitan area: 37 sites allowing at least 15 units per acre. 38 (ii) For an unincorporated area in a nonmetropolitan county not 39 included in clause (i): sites allowing at least 10 units per acre. 97 201 —25— AB 1063 1 (iii) For a suburban jurisdiction: sites allowing at least 20 units 2 per acre. 3 (iv) For a jurisdiction in a metropolitan county: sites allowing 4 at least 30 units per acre. 5 (d) For purposes of this section, a metropolitan county, 6 nonmetropolitan county, and nonmetropolitan county with a 7 micropolitan area shall be as determined by the United States 8 Census Bureau. A nonmetropolitan county with a micropolitan 9 area includes the following counties: Del Norte,Humboldt, Lake, 10 Mendocino, Nevada, Tehama, and Tuolumne and other counties 11 as may be determined by the United States Census Bureau to be 12 nonmetropolitan counties with micropolitan areas in the future. 13 (e) A jurisdiction shall be considered suburban if the jurisdiction 14 does not meet the requirements of clauses (i) and (ii) of 15 subparagraph(B)of paragraph(3)of subdivision(c)and is located 16 in a Metropolitan Statistical Area (MSA) of less than 2,000,000 17 in population, unless that jurisdiction's population is greater than 18 100,000, in which case it shall be considered metropolitan. A 19 county, not including the City and County of San Francisco, shall 20 be considered suburban unless the county is in an MSA of 21 2,000,000 or greater in population in which case the county shall 22 be considered metropolitan. 23 (f) A jurisdiction shall be considered metropolitan if the 24 jurisdiction does not meet the requirements for "suburban area" 25 above and is located in an MSA of 2,000,000 or greater in 26 population,unless that jurisdiction's population is less than 25,000 27 in which case it shall be considered suburban. 28 (g) (1) For sites described in paragraph (3) of subdivision (b), 29 the city or county shall specify the additional development potential 30 for each site within the planning period and shall provide an 31 explanation of the methodology used to determine the development 32 potential. The methodology shall consider factors including the 33 extent to which existing uses may constitute an impediment to 34 additional residential development, the city's or county's past 35 experience with converting existing uses to higher density 36 residential development,the current market demand for the existing 37 use,an analysis of any existing leases or other contracts that would 38 perpetuate the existing use or prevent redevelopment of the site 39 for additional residential development,development trends,market 97 202 AB 1063 —26— 1 conditions, and regulatory or other incentives or standards to 2 encourage additional residential development on these sites. 3 (2) In addition to the analysis required in paragraph (1), when 4 a city or county is relying on nonvacant sites described in paragraph 5 (3) of subdivision (b) to accommodate 50 percent or more of its 6 housing need for lower income households,the methodology used 7 to determine additional development potential shall demonstrate 8 that the existing use identified pursuant to paragraph (3) of 9 subdivision (b) does not constitute an impediment to additional 10 residential development during the period covered by the housing 11 element. An existing use shall be presumed to impede additional 12 residential development, absent findings based on substantial 13 evidence that the use is likely to be discontinued during the 14 planning period.Any of the following conditions shall be deemed 15 to be substantial evidence that an existing use is likely to be 16 discontinued during the planning period: 17 (A) The existing improvement-to-land-value ratio is less than 18 1.0 for commercial and multifamily properties or less than 0.5 for 19 single-family properties according to the most recent available 20 property assessment roll. 21 (B) The site is designated a Moderate Resource area, High 22 Resource area, or Highest Resource area in the most recent Tax 23 Credit Allocation Committee Opportunity Map. 24 (C) Zoning for the site allows residential development by-right 25 that meets both of the following requirements: 26 (i) Have at least 100 percent more floor area than existing 27 structures on the site. 28 (ii) At least 20 percent of the units are affordable to lower 29 income households. 30 (D) The use of nonvacant sites are accompanied by programs 31 and policies that encourage or incentivize the redevelopment to 32 residential use. 33 (3) Notwithstanding any other law, and in addition to the 34 requirements in paragraphs (1) and (2), sites that currently have 35 residential uses, or within the past five years have had residential 36 uses that have been vacated or demolished,that are or were subject 37 to a recorded covenant, ordinance, or law that restricts rents to 38 levels affordable to persons and families of low or very low 39 income, subject to any other form of rent or price control through 40 a public entity's valid exercise of its police power, or occupied by 97 203 —27— AB 1063 1 low or very low income households, shall be subject to a policy 2 requiring the replacement of all those units affordable to the same 3 or lower income level as a condition of any development on the 4 site. Replacement requirements shall be consistent with those set 5 forth in paragraph(3) of subdivision (c) of Section 65915. 6 (h) The program required by subparagraph(A)of paragraph(1) 7 of subdivision(c)of Section 65583 shall accommodate 100 percent 8 of the need for housing for very low and low-income households 9 allocated pursuant to Section 65584 for which site capacity has 10 not been identified in the inventory of sites pursuant to paragraph 11 (3) of subdivision (a) on sites that shall be zoned to permit 12 owner-occupied and rental multifamily residential use by right for 13 developments in which at least 20 percent of the units are 14 affordable to lower income households during the planning period. 15 These sites shall be zoned with minimum density and development 16 standards that permit at least 16 units per site at a density of at 17 least 16 units per acre in jurisdictions described in clause (i) of 18 subparagraph (B) of paragraph (3) of subdivision (c), shall be at 19 least 20 units per acre in jurisdictions described in clauses(iii)and 20 (iv) of subparagraph (B) of paragraph (3) of subdivision (c), and 21 shall meet the standards set forth in subparagraph(B)of paragraph 22 (5) of subdivision (b). At least 50 percent of the very low and 23 low-income housing need shall be accommodated on sites 24 designated for residential use and for which nonresidential uses 25 or mixed uses are not permitted, except that a city or county may 26 accommodate all of the very low and low-income housing need 27 on sites designated for mixed uses if those sites allow 100 percent 28 residential use and require that residential use occupy 50 percent 29 of the total floor area of a mixed-use project. 30 (i) For purposes of this section and Section 65583, the phrase 31 "use by right" shall mean that the local government's review of 32 the owner-occupied or multifamily residential use may not require 33 a conditional use permit,planned unit development permit,or other 34 discretionary local government review or approval that would 35 constitute a "project" for purposes of Division 13 (commencing 36 with Section 21000)of the Public Resources Code.Any subdivision 37 of the sites shall be subject to all laws, including, but not limited 38 to, the local government ordinance implementing the Subdivision 39 Map Act.A local ordinance may provide that"use by right" does 40 not exempt the use from design review. However, that design 97 204 AB 1063 —28— 1 review shall not constitute a"project" for purposes of Division 13 2 (commencing with Section 21000) of the Public Resources Code. 3 Use by right for all rental multifamily residential housing shall be 4 provided in accordance with subdivision (f) of Section 65589.5. 5 0) For purposes of subdivisions(a)and(b),the department shall 6 provide guidance to local governments to properly survey, detail, 7 and account for sites listed pursuant to Section 65585. 8 (k) This section shall become operative on December 31,2028. 9 SEC. 4. Section 65585.5 is added to the Government Code, to 10 read: 11 65585.5. (a) For purposes of this section, "affected local 12 government" means a local government for which both of the 13 following apply: 14 (1) The local government is subject to a requirement that the 15 adoption or amendment of its housing element be approved by the 16 voters of the local government, including, but not limited to, a 17 requirement imposed by a charter adopted pursuant to Section 3 18 ofArticle XI of the California Constitution. 19 (2) The planning agency of the local government has submitted 20 a draft of the proposed revision of its housing element for the 21 applicable planning period to the department pursuant to Section 22 65585. 23 (b) Notwithstanding any other law, for the sixth and each 24 subsequent revision of the housing element, both of the following 25 shall apply: 26 (1) If an affected local government has submitted the applicable 27 revision of its housing element to the voters for approval before 28 the due date for its housing element pursuant to Section 65588, 29 but the voters have not yet voted on the housing element revision, 30 the affected local government shall not be subject to any fines or 31 other penalties pursuant to Section 65585 for failure to adopt its 32 housing element by the applicable due date pursuant to Section 33 65588. This paragraph shall only apply to an affected local 34 government until the date of the election at which the housing 35 element is submitted to the voters of the affected local government. 36 (2) Ifan affected local government has submitted the applicable 37 revision of its housing element to the voters for approval before 38 the due date for its housing element pursuant to Section 65588 39 and the voters have rejected the housing element, the affected local 40 government shall not be subject to any fines or other penalties 97 205 —29— AB 1063 1 pursuant to Section 65585 for failure to adopt its housing element 2 by the applicable date pursuant to Section 65588. However, in an 3 action brought by the Attorney General pursuant to Section 65585 4 against an affected local government described in this paragraph, 5 the court may order remedies available pursuant to Section 564 6 of the Code of Civil Procedure, under which the agent of the court 7 may take all governmental actions necessary to bring the 8 jurisdiction's housing element into substantial compliance pursuant 9 to this article in order to remedy identified deficiencies. 10 SECTION !. `'eetio ,nrrr00523 is aduet8 t3(ovefftment God 11 is rem: 12 13 of the state innovation waiver of Seetiott 133-2 of the federal ae 14 15 individttal and small group markets that are eonsistent with the 16 f�derai 17 (b) The I�egislatttfe also finds and deelares that if the stafe 18 proposes an innovafive strategy to offer eovefage in the inclividttal 19 , 20 wottid be as aeeessible,eomprehetisive,and aff6rdable as eoverage 21 , 22 of state residents eotnparable to the nttmber who wottld have been 23 eovefed ttndeir the federal aet with eoverage 4iat is equally of more 24 , and that wottid 26 (e) A waiver shall not be requested f�om the �4ttited States, 27 28 O 97 206 AMENDED IN SENATE JUNE 18, 2020 AMENDED IN SENATE MAY 20, 2020 SENATE BILL No. 1120 Introduced by Senators Atkins, Caballero,Rubio, and Wiener (Principal coauthor: Senator McGuire) (Coauthors: Senators Lena Gonzalez, Hill,Roth, and Rubio and Roth) February 19, 2020 An act to amend Section 66452.6 of, and to add Sections 65852.21 and 66411.7 to, the Government Code, relating to land use. LEGISLATIVE COUNSEL'S DIGEST SB 1120, as amended, Atkins. Subdivisions: tentative maps. The Planning and Zoning Law provides for the creation of accessory dwelling units by local ordinance, or, if a local agency has not adopted an ordinance, by ministerial approval, in accordance with specified standards and conditions. This biller would, among other things, require a proposed housing development containing 2 residential units to be considered ministerially, without discretionary review or hearing, in zones where allowable uses are limited to single-family residential development if the proposed housing development meets certain requirements, including that the proposed housing development would not require demolition or alteration requiring evacuation or eviction of an existing housing unit that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. The Subdivision Map Act vests the authority to regulate and control the design and improvement of subdivisions in the legislative body of 97 207 SB 1120 —2— a local agency and sets forth procedures governing the local agency's processing, approval, conditional approval or disapproval, and filing of tentative,final, and parcel maps,and the modification of those maps. Under the Subdivision Map Act,an approved or conditionally approved tentative map expires 24 months after its approval or conditional approval;approval or after any additional period of time as prescribed by local ordinance, not to exceed an additional 12 months, except as provided. This biller would, among other things, require a city or county to ministerially approve a parcel map for an urban lot split that meets certain requirements,including that the parcel does not contain housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. The bill would also extend the limit on the additional period that may be provided by ordinance, as described above, from 12 months to 24 months, months and would make other conforming or nonsubstantive changes. The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects. This bill, by establishing the ministerial review processes described above, would thereby exempt the approval of projects subject to those processes from CEQA. By increasing the duties of local agencies with respect to land use regulations, the bill would impose a state-mandated local program. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. 97 208 -3— SB 1120 The people of the State of California do enact as follows: 1 SECTION 1. Section 65852.21 is added to the Government 2 Code, to read: 3 65852.21. (a) A proposed housing development containing 4 two residential units shall be considered ministerially, without 5 discretionary review or a hearing, in zones where allowable uses 6 are limited to single-family residential development,if the proposed 7 housing development meets all of the following requirements: 8 (1) The parcel subject to the proposed housing development is 9 located within a city the boundaries of which include some portion 10 of either an urbanized area or urban cluster, as designated by the 11 United States Census Bureau, or, for unincorporated areas, a legal 12 parcel wholly within the boundaries of an urbanized area or urban 13 cluster, as designated by the United States Census Bureau. 14 (2) The parcel satisfies the requirements specified in 15 subparagraphs(B)to(K),inclusive,of paragraph(6)of subdivision 16 (a) of Section 65913.4. 17 (3) The proposed housing development would not require 18 demolition or alteration requiring evacuation or eviction of an 19 existing housing unit of any of the following types of housing: 20 (A) Housing that is subject to a recorded covenant, ordinance, 21 or law that restricts rents to levels affordable to persons and 22 families of moderate, low, or very low income. 23 (B) Housing that is subject to any form of rent or price control 24 through a public entity's valid exercise of its police power. 25 (C) A parcel on which an owner of residential real property has 26 exercised the owner's rights under Chapter 12.75 (commencing 27 with Section 7060) of Division 7 of Title 1 to withdraw 28 accommodations from rent or lease within 15 years before the date 29 that the development proponent submits an application pursuant 30 to Section 65913.4. 31 (D) Housing that has been occupied by a tenant in the last three 32 years. 33 (4) The development is not located si—tet"hat,has been plated 34 an a tiatiotial, stafe, or loeal historie register: within a historic 35 district, as defined in Section 5020.1 of the Public Resources Code, 36 that is designated or listed as a city or county landmark or historic 37 property or district pursuant to a city or county ordinance. 97 209 SB 1120 —4— 1 (b) (1) Notwithstanding any local law and except as provided 2 in paragraph (2), a city or county may impose objective zoning 3 and design standards that do not conflict with this section. 4 (2) The city or county shall not require the development project 5 to comply with an objective design standard that would prohibit 6 the development from including up to two units. 7 (c) (1) Except as provided in paragraph (2), subject to a local 8 ordinance that provides for a lower standard of parking, the 9 proposed development shall provide offstreet parking of up to one 10 space per unit. 11 (2) A local agency shall not impose parking requirements ifs 12 either of the following is true: 13 (A) The parcel is located within one-half mile walking distance 14 of . either a high-quality transit corridor, as defined 15 in subdivision (b) of Section 21155 of the Public Resources Code, 16 or a major transit stop, as defined in Section 21064.3 of the Public 17 Resources Code. 18 19 historieally signifieant histerie distrtiet-. 20 (,C—) 21 (B) There is a car share vehicle located within one block of the 22 parcel. 23 (d) (1) Except as provided in paragraphs (2) and (3), the 24 proposed housing development described in subdivision (a) shall 25 not require the demolition of more thanone existing exterior wall.-. 26 25 percent of the existing exterior structural walls. 27 (2) A proposed housing development may require the demolition 28 of more than one existing extetio., vvall 25 percent of the existing 29 exterior structural walls if a local ordinance so allows. 30 (3) A proposed housing development may require the demolition 31 of more than otte existing extetsior w 25 percent of the existing 32 exterior structural walls if the site has not been occupied by a 33 tenant in the last three years. 34 (e) A local agency may require, as part of the application for 35 a permit to create,pursuant to this section, a duplex connected to 36 an onsite water treatment system, a percolation test completed 37 within the last 5 years, or, if the percolation test has been 38 recertified, within the last 10 years. 39 69 A local agency shall require that a rental of any unit created 40 pursuant to this section be for a term longer than 30 days. 97 210 -5— SB 1120 1 {e.) 2 (g) Notwithstanding Section 65852.2, a local agency shall not 3 be required to permit an accessory dwelling unit on parcels that 4 use both the authority contained within this section and the 5 authority contained in Section 66411.7. 6 (f) 7 (h) A local agency may adopt an ordinance to implement the 8 provisions of this section.An ordinance adopted to implement this 9 section shall not be considered a project under Division 13 10 (commencing with Section 21000) of the Public Resources Code. 11 SEC. 2. Section 66411.7 is added to the Government Code,to 12 read: 13 66411.7. (a) Notwithstanding any other provision of this 14 division and any local law, a city or county shall ministerially 15 approve a parcel map for an urban lot split that meets all the 16 following requirements: 17 (1) The parcel map subdivides an existing parcel to create two 18 new parcels of equal size. 19 (2) (A) Except as provided in subparagraph (B), both newly 20 created parcels are no smaller than 1,200 square feet. 21 (B) A local agency may by ordinance adopt a smaller minimum 22 lot size to approve ministerially under this subdivision. 23 (3) The parcel being subdivided meets all the following 24 requirements: 25 (A) The parcel is zoned for residential use. 26 (B) The parcel is located within an urbanized area or urban 27 cluster. 28 (C) The parcel satisfies the requirements specified in 29 subparagraphs(B)to(K),inclusive,of paragraph(6)of subdivision 30 (a) of Section 65913.4. 31 (D) The parcel does not contain any of the following types of 32 housing: 33 (i) Housing that is subject to a recorded covenant, ordinance, 34 or law that restricts rents to levels affordable to persons and 35 families of moderate, low, or very low income. 36 (ii) Housing that is subject to any form of rent or price control 37 through a public entity's valid exercise of its police power. 38 (iii) A parcel or parcels on which an owner of residential real 39 property has exercised the owner's rights under Chapter 12.75 40 (commencing with Section 7060) of Division 7 of Title 1 to 97 211 SB 1120 —6— 1 withdraw accommodations from rent or lease within 15 years 2 before the date that the development proponent submits an 3 application pursuant to Section 65913.4. 4 (iv) Housing that has been occupied by a tenant in the last three 5 years. 6 (E) The parcel is not locatedon a site that has been plaeed on 7 a national, state,or loeal historie fegi within a historic district, 8 as defined in Section 5020.1 of the Public Resources Code, that 9 is designated or listed as a city or county landmark or historic 10 property or district pursuant to a city or county ordinance. 11 (F) The parcel has not been established through prior exercise 12 of an urban lot split as provided for in this section. 13 (G) Neither the owner of the parcel being subdivided nor 14 any person acting in concert with the owner haste previously 15 subdivided an adjoining adjacent parcel using an urban lot split 16 as provided for in this section. 17 (b) An application for an urban lot split shall be approved in 18 accordance with the following requirements: 19 (1) A local agency shall approve or deny an application for an 20 urban lot split ministerially without discretionary review. 21 (2) Notwithstanding Section 66411.1, a local agency shall not 22 impose regulations that require dedications of rights-of-way or the 23 construction of reasonable offsite and onsite improvements for the 24 parcels being created as a condition of issuing a parcel map for an 25 urban lot split. 26 (c) A local agency may require any of the following conditions 27 when receiving a request for an urban lot split: 28 (1) Easements. 29 (2) A requirement that the parcels have access to,provide access 30 to, or adjoin the public right-of-way. 31 (3) Offstreet parking of up to one space per unit, except that a 32 local agency shall not impose parking requirements in-a-xy either 33 of the following instances: 34 (A) The parcel is located within one-half mile walking distance 35 of publie tran either a high-quality transit corridor as defined 36 in subdivision (b) of Section 21155 of the Public Resources Code, 37 or a major transit stop as defined in Section 21064.3 of the Public 38 Resources Code. 39 40 histofieally signifieant historie distriet-. 97 212 —7— SB 1120 1 � 2 (B) There is a car share vehicle located within one block of the 3 parcel. 4 (d) (1) Except as provided in paragraph (2), notwithstanding 5 any local law, a city or county may impose objective zoning and 6 objective design standards applicable to a parcel created by an 7 urban lot split that do not conflict with this section. 8 (2) (A) A local agency shall not impose objective zoning or 9 objective design standards that reduce the buildable area on each 10 newly created parcel to less than 50 percent of the buildable area 11 on the parcel being subdivided. 12 (B) For the purposes of this paragraph, "buildable area"means 13 the area on the lot that remains after the application of zoning and 14 design standards and regulations that require dedications of 15 rights-of-way,easements,and the construction of reasonable offsite 16 and onsite improvements for the parcels being created. 17 (e) A local agency shall require that a rental of any unit created 18 pursuant to this section be for a term longer than 30 days. 19 ('e) 20 69 Notwithstanding Section 65852.2, a local agency shall not 21 be required to permit an accessory dwelling unit on parcels that 22 use both the authority contained within this section and the 23 authority contained in Section 65852.21. 24 25 (g) A local agency may adopt an ordinance to implement the 26 provisions of this section.An ordinance adopted to implement this 27 section shall not be considered a project under Division 13 28 (commencing with Section 21000) of the Public Resources Code. 29 SEC. 3. Section 66452.6 of the Government Code is amended 30 to read: 31 66452.6. (a) (1) An approved or conditionally approved 32 tentative map shall expire 24 months after its approval or 33 conditional approval, or after any additional period of time as may 34 be prescribed by local ordinance, not to exceed an additional 24 35 months. However, if the subdivider is required to expend two 36 hundred thirty-six thousand seven hundred ninety dollars 37 ($236,790) or more to construct, improve, or finance the 38 construction or improvement of public improvements outside the 39 property boundaries of the tentative map,excluding improvements 40 of public rights-of-way which abut the boundary of the property 97 213 SB 1120 —8— 1 to be subdivided and which are reasonably related to the 2 development of that property,each filing of a final map authorized 3 by Section 66456.1 shall extend the expiration of the approved or 4 conditionally approved tentative map by 48 months from the date 5 of its expiration, as provided in this section, or the date of the 6 previously filed final map,whichever is later.The extensions shall 7 not extend the tentative map more than 10 years from its approval 8 or conditional approval. However, a tentative map on property 9 subject to a development agreement authorized by Article 2.5 10 (commencing with Section 65864)of Chapter 4 of Division 1 may 11 be extended for the period of time provided for in the agreement, 12 but not beyond the duration of the agreement. The number of 13 phased final maps that may be filed shall be determined by the 14 advisory agency at the time of the approval or conditional approval 15 of the tentative map. 16 (2) Commencing January 1, 2012, and each calendar year 17 thereafter, the amount of two hundred thirty-six thousand seven 18 hundred ninety dollars ($236,790) shall be annually increased by 19 operation of law according to the adjustment for inflation set forth 20 in the statewide cost index for class B construction,as determined 21 by the State Allocation Board at its January meeting.The effective 22 date of each annual adjustment shall be March 1. The adjusted 23 amount shall apply to tentative and vesting tentative maps whose 24 applications were received after the effective date of the 25 adjustment. 26 (3) "Public improvements,"as used in this subdivision, include 27 traffic controls, streets, roads, highways, freeways, bridges, 28 overcrossings, street interchanges, flood control or storm drain 29 facilities, sewer facilities, water facilities, and lighting facilities. 30 (b) (1) The period of time specified in subdivision(a),including 31 any extension thereof granted pursuant to subdivision (e), shall 32 not include any period of time during which a development 33 moratorium, imposed after approval of the tentative map, is in 34 existence.However,the length of the moratorium shall not exceed 35 five years. 36 (2) The length of time specified in paragraph (1) shall be 37 extended for up to three years, but in no event beyond January 1, 38 1992, during the pendency of any lawsuit in which the subdivider 39 asserts, and the local agency which approved or conditionally 97 214 —9— SB 1120 1 approved the tentative map denies, the existence or application of 2 a development moratorium to the tentative map. 3 (3) Once a development moratorium is terminated, the map 4 shall be valid for the same period of time as was left to run on the 5 map at the time that the moratorium was imposed. However,if the 6 remaining time is less than 120 days, the map shall be valid for 7 120 days following the termination of the moratorium. 8 (c) The period of time specified in subdivision (a), including 9 any extension thereof granted pursuant to subdivision (e), shall 10 not include the period of time during which a lawsuit involving 11 the approval or conditional approval of the tentative map is or was 12 pending in a court of competent jurisdiction, if the stay of the time 13 period is approved by the local agency pursuant to this section. 14 After service of the initial petition or complaint in the lawsuit upon 15 the local agency,the subdivider may apply to the local agency for 16 a stay pursuant to the local agency's adopted procedures. Within 17 40 days after receiving the application,the local agency shall either 18 stay the time period for up to five years or deny the requested stay. 19 The local agency may, by ordinance, establish procedures for 20 reviewing the requests, including, but not limited to, notice and 21 hearing requirements,appeal procedures,and other administrative 22 requirements. 23 (d) The expiration of the approved or conditionally approved 24 tentative map shall terminate all proceedings and no final map or 25 parcel map of all or any portion of the real property included within 26 the tentative map shall be filed with the legislative body without 27 first processing a new tentative map. Once a timely filing is made, 28 subsequent actions of the local agency, including, but not limited 29 to,processing,approving,and recording,may lawfully occur after 30 the date of expiration of the tentative map. Delivery to the county 31 surveyor or city engineer shall be deemed a timely filing for 32 purposes of this section. 33 (e) Upon application of the subdivider filed before the expiration 34 of the approved or conditionally approved tentative map,the time 35 at which the map expires pursuant to subdivision (a) may be 36 extended by the legislative body or by an advisory agency 37 authorized to approve or conditionally approve tentative maps for 38 a period or periods not exceeding a total of six years. The period 39 of extension specified in this subdivision shall be in addition to 40 the period of time provided by subdivision (a). Before the 97 215 SB 1120 —10— I expiration of an approved or conditionally approved tentative map, 2 upon an application by the subdivider to extend that map,the map 3 shall automatically be extended for 60 days or until the application 4 for the extension is approved, conditionally approved, or denied, 5 whichever occurs first.If the advisory agency denies a subdivider's 6 application for an extension, the subdivider may appeal to the 7 legislative body within 15 days after the advisory agency has 8 denied the extension. 9 (f) For purposes of this section, a development moratorium 10 includes a water or sewer moratorium, or a water and sewer I 1 moratorium, as well as other actions of public agencies which 12 regulate land use, development, or the provision of services to the 13 land, including the public agency with the authority to approve or 14 conditionally approve the tentative map,which thereafter prevents, 15 prohibits, or delays the approval of a final or parcel map. A 16 development moratorium shall also be deemed to exist for purposes 17 of this section for any period of time during which a condition 18 imposed by the city or county could not be satisfied because of 19 either of the following: 20 (1) The condition was one that,by its nature,necessitated action 21 by the city or county, and the city or county either did not take the 22 necessary action or by its own action or inaction was prevented or 23 delayed in taking the necessary action before expiration of the 24 tentative map. 25 (2) The condition necessitates acquisition of real property or 26 any interest in real property from a public agency, other than the 27 city or county that approved or conditionally approved the tentative 28 map, and that other public agency fails or refuses to convey the 29 property interest necessary to satisfy the condition. However, 30 nothing in this subdivision shall be construed to require any public 31 agency to convey any interest in real property owned by it. A 32 development moratorium specified in this paragraph shall be 33 deemed to have been imposed either on the date of approval or 34 conditional approval of the tentative map,if evidence was included 35 in the public record that the public agency which owns or controls 36 the real property or any interest therein may refuse to convey that 37 property or interest, or on the date that the public agency which 38 owns or controls the real property or any interest therein receives 39 an offer by the subdivider to purchase that property or interest for 40 fair market value, whichever is later. A development moratorium 97 216 -11— SB 1120 1 specified in this paragraph shall extend the tentative map up to the 2 maximum period as set forth in subdivision (b), but not later than 3 January 1, 1992, so long as the public agency which owns or 4 controls the real property or any interest therein fails or refuses to 5 convey the necessary property interest, regardless of the reason 6 for the failure or refusal, except that the development moratorium 7 shall be deemed to terminate 60 days after the public agency has 8 officially made, and communicated to the subdivider, a written 9 offer or commitment binding on the agency to convey the necessary 10 property interest for a fair market value,paid in a reasonable time I I and manner. 12 SEC.4. The Legislature finds and declares that ensuring access 13 to affordable housing is a matter of statewide concern and not a 14 municipal affair as that term is used in Section 5 of Article XI of 15 the California Constitution.Therefore, Sections 1 and 2 of this act 16 adding Sections 65852.21 and 66411.7 to the Government Code 17 and Section 3 of this act amending Section 66452.6 of the 18 Government Code apply to all cities, including charter cities. 19 SEC. 5. No reimbursement is required by this act pursuant to 20 Section 6 of Article XIIIB of the California Constitution because 21 a local agency or school district has the authority to levy service 22 charges, fees, or assessments sufficient to pay for the program or 23 level of service mandated by this act,within the meaning of Section 24 17556 of the Government Code. O 97 217 AMENDED IN SENATE JUNE 18, 2020 AMENDED IN SENATE MAY 20, 2020 AMENDED IN SENATE MAY 6, 2020 SENATE BILL No. 1385 Introduced by Senators Caballero and Rubio (Principal coauthors: Senators Atkins, Lena Gonzalez,Hertzberg, McGuire, and Wiener) (Coauthors: Senators HillDurazo, Galgiani,Hill,Hueso,and Roth) February 21, 2020 An act to amend Sections 53339.6 and 65913.4 of,and to add Section 65852.23 to, the Government Code, relating to land use. LEGISLATIVE COUNSEL'S DIGEST SB 1385, as amended, Caballero. Local planning: housing: commercial zones. The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes,among other mandatory elements,a housing element.Existing law requires that the housing element include, among other things, an inventory of land suitable and available for residential development. If the inventory of sites does not identify adequate sites to accommodate the need for groups of all households pursuant to specified law,existing law requires the local government to rezone sites within specified time periods and that this rezoning accommodate 100% of the need for housing for very low and low-income households on sites that will be zoned to permit owner-occupied and rental multifamily residential use by right for specified developments. 96 218 SB 1385 —2— This bill, the Neighborhood Homes Act, would deem a housing development project, as defined, an ..,.mod allowable use on a neighborhood lot that is zoned for office or retail commercial use under a local agency's zoning code or general plan. The bill would require the density for a housing development under these provisions to meet or exceed the density deemed appropriate to accommodate housing for lower income households according to the type of local jurisdiction, including a density of at least 20 units per acre for a suburban jurisdiction. The bill would require the housing development to meet all other local requirements for a neighborhood lot zoned for office or retail commercial use, other than those that prohibit residential use, or allow residential use at a lower density than that required by the bill. The bill would provide that a housing development under these provisions is subject to the local zoning,parking,and design ordinances, and any design review or other public notice, comment, hearing, or procedure applicable to a housing development in a zone with the applicable density. The bill would provide that the local zoning designation applies if the existing zoning designation for the parcel allows residential use at a density greater than that required by these provisions. The bill would require a local agency to require that a rental of any unit created pursuant to the bill's provisions be for a term longer than 30 days. The bill would authorize a local agency that met its share of the regional housing need, as specified, to exempt a neighborhood lot from these provisions if the local agency concurrently reallocates the lost residential density to other lots so that there is no net loss in residential production capacity in the jurisdiction.The bill would specify that it does not alter or affect the application of any housing, environmental, or labor law applicable to a housing development authorized by these provisions, including, but not limited to, the California Coastal Act, the California Environmental Quality Act, the Housing Accountability Act, obligations to affirmatively further fair housing, and any state or local affordability laws or tenant protection laws. The bill would require an applicant of a housing development under these provisions to provide notice of a pending application to each commercial tenant of the neighborhood lot. The Housing Accountability Act, which is part of the Planning and Zoning Law,prohibits a local agency from disapproving,or conditioning approval in a manner that renders infeasible, a housing development project, as defined for purposes of the act, for very low, low-, or moderate-income households or an emergency shelter unless the local 96 219 —3— SB 1385 agency makes specified written findings based on a preponderance of the evidence in the record. That act states that it shall not be construed to prohibit a local agency from requiring a housing development project to comply with objective, quantifiable,written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdiction's share of the regional housing need,except as provided. That act further provides that a housing development project or emergency shelter shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to conclude that the housing development project or emergency shelter is consistent, compliant, or in conformity. The bill would provide that for purposes of the Housing Accountability Act, a proposed housing development project is consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if the housing development project is consistent with the standards applied to the parcel pursuant to specified provisions of the Neighborhood Homes:Act and if none of the square footage in the project is designated for hotel, motel, bed and breakfast inn, or other transient lodging use, except for a residential hotel, as defined. The Planning and Zoning Law,until January 1,2026, also authorizes a development proponent to submit an application for a multifamily housing development that is subject to a streamlined, ministerial approval process, as provided, and not subject to a conditional use permit, if the development satisfies specified objective planning standards, including a requirement that the site on which the development is proposed is zoned for residential use or residential mixed-use development, or has a general plan designation that allows residential use or a mix of residential and nonresidential uses, with at least '-/ of the square footage of the development designated for residential use. Under that law, the proposed development is also required to be consistent with objective zoning standards, objective subdivision standards, and objective design review standards in effect at the time the development is submitted to the local government. This bill would permit the development to be proposed for a site zoned for office or retail commercial use if the site has no existing commercial or residential tenants on 50% or more of its total square footage for a period of at least 3 years prior to the submission of the 96 220 SB 1385 —4— application. The bill would also provide that a project located on a neighborhood lot,as defined, shall be deemed consistent with objective zoning standards,objective design standards,and objective subdivision standards if the project meets the standards applied to the parcel pursuant to the Neighborhood Homes Act. The Mello-Roos Community Facilities Act of 1982 authorizes a local agency to establish a community facilities district to finance various services, including police protection, fire protection, recreation programs, and library services, and provides for the annexation of territory to an existing community facilities district. This bill would authorize an applicant seeking to develop a housing project on a neighborhood lot to request that a local agency establish a Mello-Roos Community Facilities District, or to request that the neighborhood lot be annexed to an existing community facilities district, as specified,to finance improvements and services to the units proposed to be developed. The bill would prohibit any further proceedings to be taken to annex the territory,or to authorize that annexation in the future, for a period of one year from the decision of the legislative body at the hearing on the annexation if a specified number or groups of persons, including 50% or more of the registered voters or 6 registered voters, whichever is more,residing within the territory proposed for annexation or proposed to be annexed in the future, file written protests with the legislative body. The bill would prohibit a local agency from imposing any development, impact, or mitigation fee, charge, or exaction in connection with the approval of a development project to the extent that those facilities and services are funded by a community facilities district established pursuant to these provisions. By imposing new duties on local agencies with regard to local planning and zoning, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. 96 221 —5— SB 1385 The people of the State of California do enact as follows: 1 SECTION 1. Section 53339.6 of the Government Code is 2 amended to read: 3 53339.6. (a) If 50 percent or more of the registered voters, or 4 six registered voters, whichever is more, residing within the 5 existing community facilities district, or if 50 percent or more of 6 the registered voters or six registered voters, whichever is more, 7 residing within the territory proposed for annexation or proposed 8 to be annexed in the future, or if the owners of one-half or more 9 of the area of land in the territory included in the existing district 10 and not exempt from special tax, or if the owners of one-half or 11 more of the area of land in the territory proposed to be annexed or 12 proposed to be annexed in the future and not exempt from the 13 special tax, file written protests against the proposed annexation 14 of territory to the existing community facilities district or the 15 proposed addition of territory to the existing community facilities 16 district in the future,and protests are not withdrawn so as to reduce 17 the protests to less than a majority,no further proceedings to annex 18 the same territory, or to authorize the same territory to be annexed 19 in the future, shall be undertaken for a period of one year from the 20 date of decision of the legislative body on the issues discussed at 21 the hearing. 22 (b) (1) This subdivision shall only apply to a proceeding to 23 annex or add territory that is zoned to allow residential use on a 24 neighborhood lot as provided in Section 65852.23. 25 (2) Notwithstanding subdivision (a), if 50 percent or more of 26 the registered voters or six registered voters, whichever is more, 27 residing within the territory proposed for annexation or proposed 28 to be annexed in the future, or if the owners of one-half or more 29 of the area of land in the territory proposed to be annexed or 30 proposed to be annexed in the future and not exempt from the 31 special tax, file written protests against the proposed annexation 32 of territory to the existing community facilities district or the 33 proposed addition of territory to the existing community facilities 34 district in the future,and protests are not withdrawn so as to reduce 35 the protests to less than a majority,no further proceedings to annex 36 the same territory, or to authorize the same territory to be annexed 37 in the future, shall be undertaken for a period of one year from the 96 222 SB 1385 —6— 1 date of decision of the legislative body on the issues discussed at 2 the hearing. 3 SEC. 2. Section 65852.23 is added to the Government Code, 4 to read: 5 65852.23. (a) (1) This section shall be known, and may be 6 cited, as the Neighborhood Homes Act. 7 (2) The Legislature finds and declares that creating more 8 affordable housing is critical to the achievement of regional 9 housing needs assessment goals, and that housing units developed 10 at higher densities are affordable by design for California residents, 11 without the necessity of public subsidies, income eligibility, 12 occupancy restrictions, lottery procedures, or other legal 13 requirements applicable to deed restricted affordable housing to 14 serve very low and low-income residents and special needs 15 residents. 16 (b) A housing development project shall be deemed an 17 authorized allowable use on a neighborhood lot that is zoned for 18 office or retail commercial use under a local agency's zoning code 19 or general plan. A housing development on a neighborhood lot 20 authorized under this section shall be subject to all of the following: 21 (1) (A) The density for the housing development shall meet or 22 exceed the applicable density deemed appropriate to accommodate 23 housing for lower income households identified in st+pafagfap-h 24 . as 25 follows: 26 (i) For an incorporated city within a nonmetropolitan county 27 and for a nonmetropolitan county that has a micropolitan area, 28 sites allowing at least 15 units per acre. 29 (ii) For an unincorporated area in a nonmetropolitan county 30 not included in subparagraph (A), sites allowing at least 10 units 31 per acre. 32 (iii) For a suburban jurisdiction, sites allowing at least 20 units 33 per acre. 34 (iv) For a jurisdiction in a metropolitan county, sites allowing 35 at least 30 units per acre. 36 (B) "Metropolitan county," "nonmetropolitan county," 37 "nonmetropolitan county with a micropolitan area," and 38 "suburban," shall have the same meanings as defined in 39 subdivisions (d), (e), and(j) of Section 65583.2. 96 223 —7— SB 1385 1 (2) (A) The housing development shall be subject to local 2 zoning, parking, design, and other ordinances applicable to a 3 housing development in a zone that meets the requirements of 4 paragraph (1). 5 (B) If more than one zoning designation of the local agency 6 meets the requirements of paragraph (1), the zoning standards 7 applicable to a parcel that allows residential use pursuant to this 8 section shall be the zoning standards that apply to the closest parcel 9 that allows residential use at a density that meets the requirements 10 of paragraph (1). 11 (C) If the existing zoning designation for the parcel,as adopted 12 by the local government,allows residential use at a density greater 13 than that required in paragraph (1), the local zoning designation 14 shall apply. 15 (3) The housing development shall comply with any design 16 review or other public notice, comment, hearing, or procedure 17 imposed by the local agency on a housing development in the 18 applicable zoning designation identified in paragraph (2). 19 (4) All other local requirements for a neighborhood lot zoned 20 for office or retail commercial use, other than those that prohibit 21 residential use, or allow residential use at a lower density than 22 provided in paragraph (1). 23 (c) A local agency shall require that a rental of any unit created 24 pursuant to this section be for a term longer than 30 days. 25 (e) 26 (d) (1) A local agency may exempt a neighborhood lot from 27 this section in its housing element if the local agency concurrently 28 reallocates the lost residential density to other lots so that there is 29 no net loss in residential production capacity in the jurisdiction. 30 (2) A local agency may reallocate the residential density from 31 an exempt neighborhood lot pursuant to this subdivision only upon 32 a finding by the local agency that the construction cost of the 33 reallocated housing units will not be greater than the construction 34 cost of housing units built under the applicable zoning standards 35 in paragraph (2) of subdivision (b). 36 (4) 37 (e) (1) This section does not alter or lessen the applicability of 38 any housing, environmental, or labor law applicable to a housing 39 development authorized by this section,including,but not limited 40 to, the following: 96 224 SB 1385 —8— 1 (A) The California Coastal Act of 1976 (Division 20 2 (commencing with Section 30000)of the Public Resources Code) 3 (B) The California Environmental Quality Act (Division 13 4 (commencing with Section 21000)of the Public Resources Code). 5 (C) The Housing Accountability Act (Section 65589.5). 6 (D) The Density Bonus Law(Section 65915). 7 (E) Obligations to affirmatively further fair housing, pursuant 8 to Section 8899.50. 9 (F) State or local affordable housing laws. 10 (G) State or local tenant protection laws. 11 (2) All local demolition ordinances shall apply to a project 12 developed on a neighborhood lot. 13 (3) For purposes of the Housing Accountability Act (Section 14 65589.5),a proposed housing development project that is consistent 15 with the standards applied to the parcel pursuant to paragraph (2) 16 of subdivision (b) shall be deemed consistent, compliant, and in 17 conformity with an applicable plan, program, policy, ordinance, 18 standard, requirement, or other similar provision. 19 (e) 20 (fi An applicant for a housing development under this section 21 shall provide written notice of the pending application to each 22 commercial tenant on the neighborhood lot when the application 23 is submitted. 24 ff) 25 (g) (1) An applicant seeking to develop a housing project on a 26 neighborhood lot may request that a local agency establish a 27 Mello-Roos Community Facilities District, or may request that 28 the neighborhood lot be annexed to an existing community facilities 29 district, as authorized in Chapter 2.5 (commencing with Section 30 53311) of Part 1 of Division 2 of Title 5 to finance improvements 31 and services to the units proposed to be developed. 32 (2) An annexation to a community facilities district for a 33 neighborhood lot shall be subject to a protest proceeding as 34 provided in subdivision (b) of Section 53339.6. 35 (3) An applicant who voluntarily enrolls in the district shall not 36 be required to pay a development,impact,or mitigation fee,charge, 37 or exaction in connection with the approval of a development 38 project to the extent that those facilities and services are funded 39 by a community facilities district established pursuant to this 40 subdivision. This paragraph shall not prohibit a local agency from 96 225 —9— SB 1385 1 imposing any application, development, mitigation, building, or 2 other fee to fund the construction cost of public infrastructure 3 facilities or services that are not funded by a community facilities 4 district to support a housing development project. 5 (g) 6 (h) For purposes of this section: 7 (1) "Housing development project" means a use consisting of 8 any of the following: 9 (A) Residential units only. 10 (B) Mixed-use developments consisting of residential and 11 nonresidential commercial retail or office uses.None of the square 12 footage of any such development shall be designated for hotel, 13 motel, bed and breakfast inn, or other transient lodging use, except 14 for a residential hotel. 15 (2) "Local agency"means a city,including a charter city,county, 16 or a city and county. 17 (3) "Neighborhood lot" means a lot zoned for office or retail 18 commercial uses and an eligible site for a housing development 19 project pursuant to subdivision(b). 20 (4) "Residential hotel" has the same meaning as defined in 21 Section 50519 of the Health and Safety Code. 22 SEC. 3. Section 65913.4 of the Government Code is amended 23 to read: 24 65913.4. (a) A development proponent may submit an 25 application for a development that is subject to the streamlined, 26 ministerial approval process provided by subdivision (b) and is 27 not subject to a conditional use permit if the development satisfies 28 all of the following objective planning standards: 29 (1) The development is a multifamily housing development that 30 contains two or more residential units. 31 (2) The development is located on a site that satisfies all of the 32 following: 33 (A) A site that is a legal parcel or parcels located in a city if, 34 and only if, the city boundaries include some portion of either an 35 urbanized area or urban cluster,as designated by the United States 36 Census Bureau, or, for unincorporated areas, a legal parcel or 37 parcels wholly within the boundaries of an urbanized area or urban 38 cluster, as designated by the United States Census Bureau. 39 (B) A site in which at least 75 percent of the perimeter of the 40 site adjoins parcels that are developed with urban uses. For the 96 226 SB 1385 —10— 1 purposes of this section,parcels that are only separated by a street 2 or highway shall be considered to be adjoined. 3 (C) (i) A site that meets the requirements of clause (ii) and 4 satisfies any of the following: 5 (I) The site is zoned for residential use or residential mixed-use 6 development. 7 (II) The site has a general plan designation that allows residential 8 use or a mix of residential and nonresidential uses. 9 (III) The site is zoned for office or retail commercial use and 10 has no existing commercial or residential tenants on 50 percent or 11 more of its total square footage for a period of at least three years 12 prior to the submission of the application. 13 (ii) A development on a site described in clause (i) shall have 14 at least two-thirds of the square footage of the development 15 designated for residential use. Additional density, floor area, and 16 units, and any other concession, incentive, or waiver of 17 development standards granted pursuant to the Density Bonus Law 18 in Section 65915 shall be included in the square footage 19 calculation. The square footage of the development shall not 20 include underground space, such as basements or underground 21 parking garages. 22 (3) (A) The development proponent has committed to record, 23 prior to the issuance of the first building permit, a land use 24 restriction or covenant providing that any lower or moderate 25 income housing units required pursuant to subparagraph (B) of 26 paragraph (4) shall remain available at affordable housing costs 27 or rent to persons and families of lower or moderate income for 28 no less than the following periods of time: 29 (i) Fifty-five years for units that are rented. 30 (ii) Forty-five years for units that are owned. 31 (B) The city or county shall require the recording of covenants 32 or restrictions implementing this paragraph for each parcel or unit 33 of real property included in the development. 34 (4) The development satisfies subparagraphs(A)and(B)below: 35 (A) Is located in a locality that the department has determined 36 is subject to this subparagraph on the basis that the number of units 37 that have been issued building permits,as shown on the most recent 38 production report received by the department, is less than the 39 locality's share of the regional housing needs,by income category, 40 for that reporting period. A locality shall remain eligible under 96 227 -11— SB 1385 1 this subparagraph until the department's determination for the next 2 reporting period. 3 (B) The development is subject to a requirement mandating a 4 minimum percentage of below market rate housing based on one 5 of the following: 6 (i) The locality did not submit its latest production report to the 7 department by the time period required by Section 65400, or that 8 production report reflects that there were fewer units of above 9 moderate-income housing issued building permits than were 10 required for the regional housing needs assessment cycle for that 11 reporting period. In addition, if the project contains more than 10 12 units of housing, the project does either of the following: 13 (1) The project dedicates a minimum of 10 percent of the total 14 number of units to housing affordable to households making at or 15 below 80 percent of the area median income. However, if the 16 locality has adopted a local ordinance that requires that greater 17 than 10 percent of the units be dedicated to housing affordable to 18 households making below 80 percent of the area median income, 19 that local ordinance applies. 20 (I1) (ia) If the project is located within the San Francisco Bay 21 area,the project,in lieu of complying with subclause(I),dedicates 22 20 percent of the total number of units to housing affordable to 23 households making below 120 percent of the area median income 24 with the average income of the units at or below 100 percent of 25 the area median income. However, a local ordinance adopted by 26 the locality applies if it requires greater than 20 percent of the units 27 be dedicated to housing affordable to households making at or 28 below 120 percent of the area median income,or requires that any 29 of the units be dedicated at a level deeper than 120 percent. In 30 order to comply with this subclause,the rent or sale price charged 31 for units that are dedicated to housing affordable to households 32 between 80 percent and 120 percent of the area median income 33 shall not exceed 30 percent of the gross income of the household. 34 (ib) For purposes of this subclause, "San Francisco Bay area" 35 means the entire area within the territorial boundaries of the 36 Counties of Alameda, Contra Costa, Marin, Napa, San Mateo, 37 Santa Clara, Solano,and Sonoma,and the City and County of San 38 Francisco. 39 (ii) The locality's latest production report reflects that there 40 were fewer units of housing issued building permits affordable to 96 228 SB 1385 —12— 1 either very low income or low-income households by income 2 category than were required for the regional housing needs 3 assessment cycle for that reporting period,and the project seeking 4 approval dedicates 50 percent of the total number of units to 5 housing affordable to households making at or below 80 percent 6 of the area median income. However, if the locality has adopted 7 a local ordinance that requires that greater than 50 percent of the 8 units be dedicated to housing affordable to households making at 9 or below 80 percent of the area median income,that local ordinance 10 applies. 11 (iii) The locality did not submit its latest production report to 12 the department by the time period required by Section 65400, or 13 if the production report reflects that there were fewer units of 14 housing affordable to both income levels described in clauses (i) 15 and (ii) that were issued building permits than were required for 16 the regional housing needs assessment cycle for that reporting 17 period,the project seeking approval may choose between utilizing 18 clause (i) or(ii). 19 (C) (i) A development proponent that uses a unit of affordable 20 housing to satisfy the requirements of subparagraph (B)may also 21 satisfy any other local or state requirement for affordable housing, 22 including local ordinances or the Density Bonus Law in Section 23 65915, provided that the development proponent complies with 24 the applicable requirements in the state or local law. 25 (ii) A development proponent that uses a unit of affordable 26 housing to satisfy any other state or local affordability requirement 27 may also satisfy the requirements of subparagraph (B), provided 28 that the development proponent complies with applicable 29 requirements of subparagraph (B). 30 (iii) A development proponent may satisfy the affordability 31 requirements of subparagraph (B) with a unit that is restricted to 32 households with incomes lower than the applicable income limits 33 required in subparagraph (B). 34 (5) The development, excluding any additional density or any 35 other concessions,incentives,or waivers of development standards 36 granted pursuant to the Density Bonus Law in Section 65915, is 37 consistent with objective zoning standards, objective subdivision 38 standards, and objective design review standards in effect at the 39 time that the development is submitted to the local government 40 pursuant to this section.For purposes of this paragraph,"objective 96 229 -13— SB 1385 1 zoning standards," "objective subdivision standards," and 2 "objective design review standards" mean standards that involve 3 no personal or subjective judgment by a public official and are 4 uniformly verifiable by reference to an external and uniform 5 benchmark or criterion available and knowable by both the 6 development applicant or proponent and the public official before 7 submittal. These standards may be embodied in alternative 8 objective land use specifications adopted by a city or county, and 9 may include,but are not limited to,housing overlay zones, specific 10 plans, inclusionary zoning ordinances, and density bonus 11 ordinances, subject to the following: 12 (A) A development shall be deemed consistent with the objective 13 zoning standards related to housing density, as applicable, if the 14 density proposed is compliant with the maximum density allowed 15 within that land use designation, notwithstanding any specified 16 maximum unit allocation that may result in fewer units of housing 17 being permitted. 18 (B) In the event that objective zoning,general plan, subdivision, 19 or design review standards are mutually inconsistent, a 20 development shall be deemed consistent with the objective zoning 21 and subdivision standards pursuant to this subdivision if the 22 development is consistent with the standards set forth in the general 23 plan. 24 (C) The amendments to this subdivision made by the act adding 25 this subparagraph do not constitute a change in,but are declaratory 26 of, existing law. 27 (D) A project located on a neighborhood lot, as defined in 28 Section 65852.23,shall be deemed consistent with objective zoning 29 standards, objective design standards, and objective subdivision 30 standards if the project meets the standards applied to the parcel 31 pursuant to subdivision (b) of Section "�T 65852.23 and if 32 none of the square footage in the project is designated for hotel, 33 motel, bed and breakfast inn, or other transient lodging use, except 34 for a residential hotel. For purposes of this subdivision, 35 "residential hotel" shall have the same meaning as defined in 36 Section 50519 of the Health and Safety Code. 37 (6) The development is not located on a site that is any of the 38 following: 39 (A) A coastal zone, as defined in Division 20 (commencing 40 with Section 30000) of the Public Resources Code. 96 230 SB 1385 —14— 1 (B) Either prime farmland or farmland of statewide importance, 2 as defined pursuant to United States Department of Agriculture 3 land inventory and monitoring criteria,as modified for California, 4 and designated on the maps prepared by the Farmland Mapping 5 and Monitoring Program of the Department of Conservation, or 6 land zoned or designated for agricultural protection or preservation 7 by a local ballot measure that was approved by the voters of that 8 jurisdiction. 9 (C) Wetlands, as defined in the United States Fish and Wildlife 10 Service Manual, Part 660 FW 2 (June 21, 1993). 11 (D) Within a very high fire hazard severity zone, as determined 12 by the Department of Forestry and Fire Protection pursuant to 13 Section 51178, or within a high or very high fire hazard severity 14 zone as indicated on maps adopted by the Department of Forestry 15 and Fire Protection pursuant to Section 4202 of the Public 16 Resources Code. This subparagraph does not apply to sites 1.7 excluded from the specified hazard zones by a local agency, 18 pursuant to subdivision (b) of Section 51179, or sites that have 19 adopted fire hazard mitigation measures pursuant to existing 20 building standards or state fire mitigation measures applicable to 21 the development. 22 (E) A hazardous waste site that is listed pursuant to Section 23 65962.5 or a hazardous waste site designated by the Department 24 of Toxic Substances Control pursuant to Section 25356 of the 25 Health- and Safety Code, unless the State Department of Public 26 Health, State Water Resources Control Board, or Department of 27 Toxic Substances Control has cleared the site for residential use 28 or residential mixed uses. 29 (F) Within a delineated earthquake fault zone as determined by 30 the State Geologist in any official maps published by the State 31 Geologist,unless the development complies with applicable seismic 32 protection building code standards adopted by the California 33 Building Standards Commission under the California Building 34 Standards Law (Part 2.5 (commencing with Section 18901) of 35 Division 13 of the Health and Safety Code), and by any local 36 building department under Chapter 12.2(commencing with Section 37 8875) of Division 1 of Title 2. 38 (G) Within a special flood hazard area subject to inundation by 39 the 1 percent annual chance flood(100-year flood) as determined 40 by the Federal Emergency Management Agency in any official 96 231 -15— SB 1385 1 maps published by the Federal Emergency Management Agency. 2 If a development proponent is able to satisfy all applicable federal 3 qualifying criteria in order to provide that the site satisfies this 4 subparagraph and is otherwise eligible for streamlined approval 5 under this section,a local government shall not deny the application 6 on the basis that the development proponent did not comply with 7 any additional permit requirement, standard, or action adopted by 8 that local government that is applicable to that site.A development 9 may be located on a site described in this subparagraph if either 10 of the following are met: 11 (i) The site has been subject to a Letter of Map Revision 12 prepared by the Federal Emergency Management Agency and 13 issued to the local jurisdiction. 14 (ii) The site meets Federal Emergency Management Agency 15 requirements necessary to meet minimum flood plain management 16 criteria of the National Flood Insurance Program pursuant to Part 17 59 (commencing with Section 59.1) and Part 60 (commencing 18 with Section 60.1) of Subchapter B of Chapter I of Title 44 of the 19 Code of Federal Regulations. 20 (H) Within a regulatory floodway as determined by the Federal 21 Emergency Management Agency in any official maps published 22 by the Federal Emergency Management Agency, unless the 23 development has received a no-rise certification in accordance 24 with Section 60.3(d)(3) of Title 44 of the Code of Federal 25 Regulations. If a development proponent is able to satisfy all 26 applicable federal qualifying criteria in order to provide that the 27 site satisfies this subparagraph and is otherwise eligible for 28 streamlined approval under this section, a local government shall 29 not deny the application on the basis that the development 30 proponent did not comply with any additional permit requirement, 31 standard, or action adopted by that local government that is 32 applicable to that site. 33 (I) Lands identified for conservation in an adopted natural 34 community conservation plan pursuant to the Natural Community 35 Conservation Planning Act(Chapter 10(commencing with Section 36 2800) of Division 3 of the Fish and Game Code), habitat 37 conservation plan pursuant to the federal Endangered Species Act 38 of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural 39 resource protection plan. 96 232 SB 1385 —16- 1 (J) Habitat for protected species identified as candidate, 2 sensitive, or species of special status by state or federal agencies, 3 fully protected species, or species protected by the federal 4 Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), 5 the California Endangered Species Act(Chapter 1.5 (commencing 6 with Section 2050) of Division 3 of the Fish and Game Code), or 7 the Native Plant Protection Act (Chapter 10 (commencing with 8 Section 1900) of Division 2 of the Fish and Game Code). 9 (K) Lands under conservation easement. 10 (7) The development is not located on a site where any of the 11 following apply: 12 (A) The development would require the demolition of the 13 following types of housing: 14 (i) Housing that is subject to a recorded covenant, ordinance, 15 or law that restricts rents to levels affordable to persons and 16 families of moderate, low, or very low income. 17 (ii) Housing that is subject to any form of rent or price control 18 through a public entity's valid exercise of its police power. 19 (iii) Housing that has been occupied by tenants within the past 20 10 years. 21 (B) The site was previously used for housing that was occupied 22 by tenants that was demolished within 10 years before the 23 development proponent submits an application under this section. 24 (C) The development would require the demolition of a historic 25 structure that was placed on a national, state, or local historic 26 register. 27 (D) The property contains housing units that are occupied by 28 tenants,and units at the property are,or were,subsequently offered 29 for sale to the general public by the subdivider or subsequent owner 30 of the property. 31 (8) The development proponent has done both of the following, 32 as applicable: 33 (A) Certified to the locality that either of the following is true, 34 as applicable: 35 (i) The entirety of the development is a public work for purposes 36 of Chapter 1 (commencing with Section 1720)of Part 7 of Division 37 2 of the Labor Code. 38 (ii) If the development is not in its entirety a public work, that 39 all construction workers employed in the execution of the 40 development will be paid at least the general prevailing rate of per 96 233 -17— SB 1385 1 diem wages for the type of work and geographic area, as 2 determined by the Director of Industrial Relations pursuant to 3 Sections 1773 and 1773.9 of the Labor Code, except that 4 apprentices registered in programs approved by the Chief of the 5 Division of Apprenticeship Standards may be paid at least the 6 applicable apprentice prevailing rate.If the development is subject 7 to this subparagraph, then for those portions of the development 8 that are not a public work all of the following shall apply: 9 (1) The development proponent shall ensure that the prevailing 10 wage requirement is included in all contracts for the performance 11 of the work. 12 (II) All contractors and subcontractors shall pay to all 13 construction workers employed in the execution of the work at 14 least the general prevailing rate of per diem wages, except that 15 apprentices registered in programs approved by the Chief of the 16 Division of Apprenticeship Standards may be paid at least the 17 applicable apprentice prevailing rate. 18 (III) Except as provided in subclause (V), all contractors and 19 subcontractors shall maintain and verify payroll records pursuant 20 to Section 1776 of the Labor Code and make those records 21 available for inspection and copying as provided therein. 22 (IV) Except as provided in subclause (V), the obligation of the 23 contractors and subcontractors to pay prevailing wages may be 24 enforced by the Labor Commissioner through the issuance of a 25 civil wage and penalty assessment pursuant to Section 1741 of the 26 Labor Code, which may be reviewed pursuant to Section 1742 of 27 the Labor Code, within 18 months after the completion of the 28 development, by an underpaid worker through an administrative 29 complaint or civil action, or by a joint labor-management 30 committee through a civil action under Section 1771.2 of the Labor 31 Code. If a civil wage and penalty assessment is issued, the 32 contractor, subcontractor, and surety on a bond or bonds issued to 33 secure the payment of wages covered by the assessment shall be 34 liable for liquidated damages pursuant to Section 1742.1 of the 35 Labor Code. 36 (V) Subclauses (III) and (IV) shall not apply if all contractors 37 and subcontractors performing work on the development are subject 38 to a project labor agreement that requires the payment of prevailing 39 wages to all construction workers employed in the execution of 40 the development and provides for enforcement of that obligation 96 234 SB 1385 —18— 1 through an arbitration procedure. For purposes of this clause, 2 "project labor agreement" has the same meaning as set forth in 3 paragraph (1) of subdivision (b) of Section 2500 of the Public 4 Contract Code. 5 (VI) Notwithstanding subdivision (c) of Section 1773.1 of the 6 Labor Code, the requirement that employer payments not reduce 7 the obligation to pay the hourly straight time or overtime wages 8 found to be prevailing shall not apply if otherwise provided in a 9 bona fide collective bargaining agreement covering the worker. 10 The requirement to pay at least the general prevailing rate of per 11 diem wages does not preclude use of an alternative workweek 12 schedule adopted pursuant to Section 511 or 514 of the Labor 13 Code. 14 (B) (i) For developments for which any of the following 15 conditions apply, certified that a skilled and trained workforce 16 shall be used to complete the development if the application is 17 approved: 18 (I) On and after January 1, 2018, until December 31, 2021, the 19 development consists of 75 or more units with a residential 20 component that is not 100 percent subsidized affordable housing 21 and will be located within a jurisdiction located in a coastal or bay 22 county with a population of 225,000 or more. 23 (II) On and after January 1,2022,until December 31,2025,the 24 development consists of 50 or more units with a residential 25 component that is not 100 percent subsidized affordable housing 26 and will be located within a jurisdiction located in a coastal or bay 27 county with a population of 225,000 or more. 28 (III) On and after January 1, 2018, until December 31, 2019, 29 the development consists of 75 or more units with a residential 30 component that is not 100 percent subsidized affordable housing 31 and will be located within a jurisdiction with a population of fewer 32 than 550,000 and that is not located in a coastal or bay county. 33 (IV) On and after January 1, 2020, until December 31, 2021, 34 the development consists of more than 50 units with a residential 35 component that is not 100 percent subsidized affordable housing 36 and will be located within a jurisdiction with apopulation of fewer 37 than 550,000 and that is not located in a coastal or bay county. 38 (V) On and after January 1,2022,until December 31,2025,the 39 development consists of more than 25 units with a residential 40 component that is not 100 percent subsidized affordable housing 96 235 -19— SB 1385 1 and will be located within a jurisdiction with a population of fewer 2 than 550,000 and that is not located in a coastal or bay county. 3 (ii) For purposes of this section,"skilled and trained workforce" 4 has the same meaning as provided in Chapter 2.9 (commencing 5 with Section 2600) of Part 1 of Division 2 of the Public Contract 6 Code. 7 (iii) If the development proponent has certified that a skilled 8 and trained workforce will be used to complete the development 9 and the application is approved, the following shall apply: 10 (I) The applicant shall require in all contracts for the 11 performance of work that every contractor and subcontractor at 12 every tier will individually use a skilled and trained workforce to 13 complete the development. 14 (II) Every contractor and subcontractor shall use a skilled and 15 trained workforce to complete the development. 16 (III) Except as provided in subclause (IV), the applicant shall 17 provide to the locality, on a monthly basis while the development 18 or contract is being performed,a report demonstrating compliance 19 with Chapter 2.9 (commencing with Section 2600) of Part 1 of 20 Division 2 of the Public Contract Code.A monthly report provided 21 to the locality pursuant to this subclause shall be a public record 22 under the California Public Records Act(Chapter 3.5 (commencing 23 with Section 6250) of Division 7 of Title 1) and shall be open to 24 public inspection. An applicant that fails to provide a monthly 25 report demonstrating compliance with Chapter 2.9 (commencing 26 with Section 2600) of Part 1 of Division 2 of the Public Contract 27 Code shall be subject to a civil penalty of ten thousand dollars 28 ($10,000)per month for each month for which the report has not 29 been provided.Any contractor or subcontractor that fails to use a 30 skilled and trained workforce shall be subject to a civil penalty of 31 two hundred dollars ($200) per day for each worker employed in 32 contravention of the skilled and trained workforce requirement. 33 Penalties may be assessed by the Labor Commissioner within 18 34 months of completion of the development using the same 35 procedures for issuance of civil wage and penalty assessments 36 pursuant to Section 1741 of the Labor Code, and may be reviewed 37 pursuant to the same procedures in Section 1742 of the Labor 38 Code. Penalties shall be paid to the State Public Works 39 Enforcement Fund. 96 236 SB 1385 —20— 1 (IV) Subclause (III) shall not apply if all contractors and 2 subcontractors performing work on the development are subject 3 to a project labor agreement that requires compliance with the 4 skilled and trained workforce requirement and provides for 5 enforcement of that obligation through an arbitration procedure. 6 For purposes of this subparagraph, "project labor agreement"has 7 the same meaning as set forth in paragraph (1) of subdivision (b) 8 of Section 2500 of the Public Contract Code. 9 (C) Notwithstanding subparagraphs(A)and(B),a development 10 that is subject to approval pursuant to this section is exempt from 11 any requirement to pay prevailing wages or use a skilled and 12 trained workforce if it meets both of the following: 13 (i) The project includes 10 or fewer units. 14 (ii) The project is not a public work for purposes of Chapter 1 15 (commencing with Section 1720) of Part 7 of Division 2 of the 16 Labor Code. 17 (9) The development did not or does not involve a subdivision 18 of a parcel that is,or,notwithstanding this section,would otherwise 19 be, subject to the Subdivision Map Act (Division 2 (commencing 20 with Section 66410)) or any other applicable law authorizing the 21 subdivision of land, unless the development is consistent with all 22 objective subdivision standards in the local subdivision ordinance, 23 and either of the following apply: 24 (A) The development has received or will receive financing or 25 funding by means of a low-income housing tax credit and is subject 26 to the requirement that prevailing wages be paid pursuant to 27 subparagraph (A) of paragraph (8). 28 (B) The development is subject to the requirement that 29 prevailing wages be paid,and a skilled and trained workforce used, 30 pursuant to paragraph (8). 31 (10) The development shall not be upon an existing parcel of 32 land or site that is governed under the Mobilehome Residency Law 33 (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 34 of Division 2 of the Civil Code), the Recreational Vehicle Park 35 Occupancy Law (Chapter 2.6 (commencing with Section 799.20) 36 of Title 2 of Part 2 of Division 2 of the Civil Code), the 37 Mobilehome Parks Act(Part 2.1 (commencing with Section 18200) 38 of Division 13 of the Health and Safety Code), or the Special 39 Occupancy Parks Act(Part 2.3 (commencing with Section 18860) 40 of Division 13 of the Health and Safety Code). 96 237 —21— SB 1385 1 (b) (1) If a local government determines that a development 2 submitted pursuant to this section is in conflict with any of the 3 objective planning standards specified in subdivision (a), it shall 4 provide the development proponent written documentation of 5 which standard or standards the development conflicts with, and 6 an explanation for the reason or reasons the development conflicts 7 with that standard or standards, as follows: 8 (A) Within 60 days of submittal of the development to the local 9 government pursuant to this section if the development contains 10 150 or fewer housing units. 11 (B) Within 90 days of submittal of the development to the local 12 government pursuant to this section if the development contains 13 more than 150 housing units. 14 (2) If the local government fails to provide the required 15 documentation pursuant to paragraph (1), the development shall 16 be deemed to satisfy the objective planning standards specified in 17 subdivision (a). 18 (3) For purposes of this section, a development is consistent 19 with the objective planning standards specified in subdivision (a) 20 if there is substantial evidence that would allow a reasonable person 21 to conclude that the development is consistent with the objective 22 planning standards. 23 (c) (1) Any design review or public oversight of the 24 development may be conducted by the local government's planning 25 commission or any equivalent board or commission responsible 26 for review and approval of development projects,or the city council 27 or board of supervisors, as appropriate. That design review or 28 public oversight shall be objective and be strictly focused on 29 assessing compliance with criteria required for streamlined projects, 30 as well as any reasonable objective design standards published 31 and adopted by ordinance or resolution by a local jurisdiction 32 before submission of a development application, and shall be 33 broadly applicable to development within the jurisdiction. That 34 design review or public oversight shall be completed as follows 35 and shall not in any way inhibit, chill, or preclude the ministerial 36 approval provided by this section or its effect, as applicable: 37 (A) Within 90 days of submittal of the development to the local 38 government pursuant to this section if the development contains 39 150 or fewer housing units. 96 238 SB 1385 —22— 1 (B) Within 180 days of submittal of the development to the 2 local government pursuant to this section if the development 3 contains more than 150 housing units. 4 (2) If the development is consistent with the requirements of 5 subparagraph (A) or (B) of paragraph (9) of subdivision (a) and 6 is consistent with all objective subdivision standards in the local 7 subdivision ordinance, an application for a subdivision pursuant 8 to the Subdivision Map Act(Division 2(commencing with Section 9 66410)) shall be exempt from the requirements of the California 10 Environmental Quality Act(Division 13 (commencing with Section 11 21000) of the Public Resources Code) and shall be subject to the 12 public oversight timelines set forth in paragraph(1). 13 (d) (1) Notwithstanding any other law, a local government, 14 whether or not it has adopted an ordinance governing automobile 15 parking requirements in multifamily developments, shall not 16 impose automobile parking standards for a streamlined 17 development that was approved pursuant to this section in any of 18 the following instances: 19 (A) The development is located within one-half mile of public 20 transit. 21 (B) The development is located within an architecturally and 22 historically significant historic district. 23 (C) When on-street parking permits are required but not offered 24 to the occupants of the development. 25 (D) When there is a car share vehicle located within one block 26 of the development. 27 (2) If the development does not fall within any of the categories 28 described in paragraph (1),the local government shall not impose 29 automobile parking requirements for streamlined developments 30 approved pursuant to this section that exceed one parking space 31 per unit. 32 (e) (1) If a local government approves a development pursuant 33 to this section, then, notwithstanding any other law, that approval 34 shall not expire if the project includes public investment in housing 35 affordability,beyond tax credits,where 50 percent of the units are 36 affordable to households making at or below 80 percent of the area 37 median income. 38 (2) (A) If a local government approves a development pursuant 39 to this section and the project does not include 50 percent of the 40 units affordable to households making at or below 80 percent of 96 239 —23— SB 1385 1 the area median income, that approval shall remain valid for three 2 years from the date of the final action establishing that approval, 3 or if litigation is filed challenging that approval, from the date of 4 the final judgment upholding that approval.Approval shall remain 5 valid for a project provided that vertical construction of the 6 development has begun and is in progress. For purposes of this 7 subdivision, "in progress" means one of the following: 8 (i) The construction has begun and has not ceased for more than 9 180 days. 10 (ii) If the development requires multiple building permits, an 11 initial phase has been completed, and the project proponent has 12 applied for and is diligently pursuing a building permit for a 13 subsequent phase, provided that once it has been issued, the 14 building permit for the subsequent phase does not lapse. 15 (B) Notwithstanding subparagraph(A),a local government may 16 grant a project a one-time, one-year extension if the project 17 proponent can provide documentation that there has been 18 significant progress toward getting the development construction 19 ready, such as filing a building permit application. 20 (3) If a local government approves a development pursuant to 21 this section, that approval shall remain valid for three years from 22 the date of the final action establishing that approval and shall 23 remain valid thereafter for a project so long as vertical construction 24 of the development has begun and is in progress.Additionally,the 25 development proponent may request, and the local government 26 shall have discretion to grant, an additional one-year extension to 27 the original three-year period. The local government's action and 28 discretion in determining whether to grant the foregoing extension 29 shall be limited to considerations and processes set forth in this 30 section. 31 (f) (1) A local government shall not adopt or impose any 32 requirement, including, but not limited to, increased fees or 33 inclusionary housing requirements,that applies to a project solely 34 or partially on the basis that the project is eligible to receive 35 ministerial or streamlined approval pursuant to this section. 36 (2) A local government shall issue a subsequent permit required 37 for a development approved under this section if the application 38 substantially complies with the development as it was approved 39 pursuant to subdivision (b). Upon receipt of an application for a 40 subsequent permit, the local government shall process the permit 96 240 SB 1385 —24— 1 without unreasonable delay and shall not impose any procedure 2 or requirement that is not imposed on projects that are not approved 3 pursuant to this section. Issuance of subsequent permits shall 4 implement the approved development, and review of the permit 5 application shall not inhibit, chill, or preclude the development. 6 For purposes of this paragraph, a "subsequent permit" means a 7 permit required subsequent to receiving approval under subdivision 8 (b), and includes, but is not limited to, demolition, grading, and 9 building permits and final maps, if necessary. 10 (g) (1) This section shall not affect a development proponent's 11 ability to use any alternative streamlined by right permit processing 12 adopted by a local government, including the provisions of 13 subdivision (i) of Section 65583.2. 14 (2) This section shall not prevent a development from also 15 qualifying as a housing development project entitled to the 16 protections of Section 65589.5.This paragraph does not constitute 17 a change in, but is declaratory of, existing law. 18 (h) The California Environmental Quality Act (Division 13 19 (commencing with Section 21000)of the Public Resources Code) 20 does not apply to actions taken by a state agency,local government, 21 or the San Francisco Bay Area Rapid Transit District to: 22 (1) Lease, convey, or encumber land owned by the local 23 government or the San Francisco Bay Area Rapid Transit District 24 or to facilitate the lease, conveyance, or encumbrance of land 25 owned by the local government, or for the lease of land owned by 26 the San Francisco Bay Area Rapid Transit District in association 27 with an eligible TOD project, as defined pursuant to Section 28 29010.1 of the Public Utilities Code, nor to any decisions 29 associated with that lease, or to provide financial assistance to a 30 development that receives streamlined approval pursuant to this 31 section that is to be used for housing for persons and families of 32 very low, low, or moderate income, as defined in Section 50093 33 of the Health and Safety Code. 34 (2) Approve improvements located on land owned by the local 35 government or the San Francisco Bay Area Rapid Transit District 36 that are necessary to implement a development that receives 37 streamlined approval pursuant to this section that is to be used for 38 housing for persons and families of very low, low, or moderate 39 income,as defined in Section 50093 of the Health and Safety Code. 96 241 —25— SB 1385 1 (i) For purposes of this section, the following terms have the 2 following meanings: 3 (1) "Affordable housing cost"has the same meaning as set forth 4 in Section 50052.5 of the Health and Safety Code. 5 (2) "Affordable rent" has the same meaning as set forth in 6 Section 50053 of the Health and Safety Code. 7 (3) "Department" means the Department of Housing and 8 Community Development. 9 (4) "Development proponent"means the developer who submits 10 an application for streamlined approval pursuant to this section. 11 (5) "Completed entitlements" means a housing development 12 that has received all the required land use approvals or entitlements 13 necessary for the issuance of a building permit. 14 (6) "Locality" or"local government" means a city, including a 15 charter city, a county, including a charter county, or a city and 16 county, including a charter city and county. 17 (7) "Moderate income housing units"means housing units with 18 an affordable housing cost or affordable rent for persons and 19 families of moderate income, as that term is defined in Section 20 50093 of the Health and Safety Code. 21 (8) "Production report"means the information reported pursuant 22 to subparagraph(H)of paragraph(2) of subdivision(a)of Section 23 65400. 24 (9) "State agency" includes every state office, officer, 25 department,division,bureau,board,and commission,but does not 26 include the California State University or the University of 27 California. 28 (10) "Subsidized" means units that are price or rent restricted 29 such that the units are affordable to households meeting the 30 definitions of very low and lower income, as defined in Sections 31 50079.5 and 50105 of the Health and Safety Code. 32 (11) "Reporting period" means either of the following: 33 (A) The first half of the regional housing needs assessment 34 cycle. 35 (B) The last half of the regional housing needs assessment cycle. 36 (12) "Urban uses" means any current or former residential, 37 commercial,public institutional,transit or transportation passenger 38 facility, or retail use, or any combination of those uses. 39 0) The department may review, adopt, amend, and repeal 40 guidelines to implement uniform standards or criteria that 96 242 SB 1385 —26— 1 supplement or clarify the terms, references, or standards set forth 2 in this section. Any guidelines or terms adopted pursuant to this 3 subdivision shall not be subject to Chapter 3.5 (commencing with 4 Section 11340)of Part 1 of Division 3 of Title 2 of the Government 5 Code. 6 (k) The determination of whether an application for a 7 development is subject to the streamlined ministerial approval 8 process provided by subdivision (b) is not a "project" as defined 9 in Section 21065 of the Public Resources Code. 10 (0 It is the policy of the state that this section be interpreted and 11 implemented in a manner to afford the fullest possible weight to 12 the interest of,and the approval and provision of,increased housing 13 supply. 14 (m) This section shall remain in effect only until January 1, 15 2026, and as of that date is repealed. 16 SEC. 4. No reimbursement is required by this act pursuant to 17 Section 6 of Article XIIIB of the California Constitution because 18 a local agency or school district has the authority to levy service 19 charges, fees, or assessments sufficient to pay for the program or 20 level of service mandated by this act,within the meaning of Section 21 17556 of the Government Code. O 96 243 Senate Constitutional Amendment No. 1 Introduced by Senators Allen and Wiener (Coauthor: Senator Lara) December 3, 2018 Senate Constitutional Amendment No. 1A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by repealing Article XXXIV thereof, relating to public housing projects. LEGISLATIVE COUNSEL'S DIGEST SCA 1, as introduced, Allen. Public housing projects. The California Constitution prohibits the development, construction, or acquisition of a low-rent housing project, as defined, in any manner by any state public body until a majority of the qualified electors of the city, town, or county in which the development, construction, or acquisition of the low-rent housing project is proposed approve the project by voting in favor at an election, as specified. This measure would repeal these provisions. Vote: 2/3. Appropriation: no. Fiscal committee: no. State-mandated local program: no. 1 Resolved by the Senate, the Assembly concurring, That the 2 Legislature of the State of California at its 2018-19 Regular 3 Session commencing on the third day of December 2018, 4 two-thirds of the membership of each house concurring, hereby 5 proposes to the people of the State of California, that the 6 Constitution of the State be amended as follows: 7 That Article XXXIV thereof is repealed. O 99 244 AMENDED IN SENATE JUNE 18, 2020 AMENDED IN SENATE APRIL 1, 2020 SENATE BILL No. 1299 Introduced by Senator Portantino (Coauthors:Senators Beall and Galgiani) February 21, 2020 An act to add Chapter 2.9 (commencing with Section 50495)to Part 2 of Division 31 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST SB 1299,as amended,Portantino.Housing development: incentives: rezoning of idle retail sites. Existing law establishes, among other housing programs, the Workforce Housing Reward Program, which requires the Department of Housing and Community Development to make local assistance grants to cities, counties, and cities and counties that provide land use approval to housing developments that are affordable to very low and low-income households. This bill, upon appropriation by the Legislature, would require the department to administer a program to provide incentives in the form of grants allocated as provided to local governments that rezone idle sites used for a big box retailer or a commercial shopping center to instead allow the development of workforce housing. The bill would define various terms for these purposes. In order to be eligible for a grant, the bill would require a local government, among other things, to apply to the department for an allocation of grant funds and provide documentation that it has met specified requirements. The bill would make the allocation of these grants subject to appropriation by the Legislature. The bill would require the department to issue a Notice of 97 245 SB 1299 —2— Funding Availability for each calendar year in which funds are made available for these purposes. The bill would require that the amount of grant awarded to each eligible local government be equal to the average amount of annual sales and use tax revenue generated by each idle site identified in the local government's application over the 7 years immediately preceding the date of the local government's application, subject to certain modifications, and that the local government receive this amount for each of the 7 years following the date of the local government's application. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. The people of the State of California do enact as follows: 1 SECTION 1. Chapter 2.9 (commencing with Section 50495) 2 is added to Part 2 of Division 31 of the Health and Safety Code, 3 to read: 4 5 CHAPTER 2.9. RETAIL SITE REZONING INCENTIVES 6 7 50495. For purposes of this chapter: 8 (a) "Big box retailer"means a store of greater than 75,000 square 9 feet of gross buildable area that generates or previously generated 10 sales or use tax pursuant to the Bradley-Burns Uniform Local Sales 11 and Use Tax Law (Part 1.5 (commencing with Section 7200) of 12 Division 2 of the Revenue and Taxation Code). 13 (b) "Commercial shopping center" means a group of two or 14 more stores that maintain a common parking lot for patrons of 15 those stores. 16 (c) "Idle"means that at least 80 percent of the leased or rentable 17 square footage of the big box retailer or commercial shopping 18 center site is not occupied for at least a 12-month calendar period. 19 (d) "Local government"means a city,county,or city and county. 20 (e) "NOFA" means Notice of Funding Availability. 21 (f) "Sales and use tax revenue" means the cumulative amount 22 of revenue generated by taxes imposed by a local government in 23 accordance with both of the following laws: 24 (1) The Bradley-Burns Uniform Local Sales and Use Tax Law 25 (Part 1.5 (commencing with Section 7200) of Division 2 of the 26 Revenue and Taxation Code). 97 246 —3— SB 1299 1 (2) The Transactions and Use Tax Law (Part 1.6 (commencing 2 with Section 7251) of Division 2 of the Revenue and Taxation 3 Code). 4 (g) (1) "Use by right"means that the local government's review 5 of a workforce housing does not require a conditional use permit, 6 planned unit development permit, or other discretionary local 7 government review or approval that would constitute a "project" 8 for purposes of Division 13 (commencing with Section 21000) of 9 the Public Resources Code. Any subdivision of the sites shall be 10 subject to all laws, including, but not limited to, the local 11 government ordinance implementing the Subdivision Map Act 12 (Division 2 (commencing with Section 66410) of Title 7 of the 13 Government Code). 14 (2) A local ordinance may provide that "use by right" does not 15 exempt the use from design review. However, that design review 16 shall not constitute a "project" for purposes of Division 13 17 (commencing with Section 21000) of the Public Resources Code. 18 (h) "Workforce housing" means an owner-occupied or rental 19 housing development with an affordable housing cost or affordable 20 rent to households with a household income greater than or equal 21 to 80 percent of the area median income, but no more than 120 22 percent of the area median income, for the area in which the big 23 box retailer or commercial shopping center site is located, as 24 determined pursuant to Section 50093. 25 50495.2. Upon appropriation by the Legislature,the department 26 shall administer a program to provide incentives in the form of 27 grants allocated in accordance with this chapter to local 28 governments that rezone idle sites used for a big box retailer or a 29 commercial shopping center to instead allow the development of 30 workforce housing. 31 50495.4. In order to be eligible for a grant under this chapter, 32 a local government shall do all of the following: 33 (a) Rezone one or more idle sites used for a big box retailer or 34 commercial shopping center to allow workforce housing as a use 35 by right. 36 (b) Approve and issue a certificate of occupancy for a workforce 37 housing development on each site rezoned pursuant to subdivision 38 (a) for which the local government seeks an incentive pursuant to 39 this chapter. 97 247 SB 1299 —4— 1 (c) Apply to the department for an allocation of grant funds and 2 provide documentation that it has complied with the requirements 3 of this section. 4 50495.6. (a) Upon appropriation by the Legislature for 5 purposes of this chapter, the department shall allocate a grant to 6 each local government that meets the criteria specified in Section 7 50495.4 in an amount determined pursuant to subdivision(b). For 8 each calendar year in which funds are made available for purposes 9 of this chapter, the department shall issue a NOFA for the 10 distribution of funds to a local government during the 12-month 11 period subsequent to the NOFA. The department shall accept 12 applications from applicants at the end of the 12-month period. 13 (b) The amount of grant provided to each eligible local 14 government, in each year for which the local government may 15 receive an allocation pursuant to subdivision (c), shall be as 16 follows: 17 (1) Subject to paragraphs(2)and(3),the annual amount of grant 18 shall be equal to the average amount of annual sales and use tax 19 revenue generated by each idle site identified in the local 20 government's application that meets the criteria specified in 21 subdivisions (a) and (b) of Section 50495.4 over the seven years 22 immediately preceding the date of the local government's 23 application. 24 (2) For any idle big box retailer or commercial shopping center 25 site rezoned by a local government in accordance with subdivision 26 (a) of Section 50495.4 to allow mixed uses, the amount of grant 27 pursuant to paragraph (1) shall be reduced in proportion to the 28 percentage of the square footage of the development that is used 29 for a use other than workforce housing. 30 (3) If for any NOFA the amount of funds made available for 31 purposes of this chapter is insufficient to provide each eligible 32 local government with the full amount specified in paragraphs (1) 33 and (2), based on the number of applications received, the 34 department shall reduce the amount of grant funds awarded to each 35 eligible local government proportionally. 36 (c) The department shall allocate the amount determined 37 pursuant to subdivision (b) to each eligible local government 38 annually for each of the seven years following the date of the local 39 government's application. 97 248 —5— SB 1299 1 2 3 4 Gode. 5 50495.8. The department may review, adopt, amend, and repeal 6 guidelines to implement uniform standards or criteria that 7 supplement or clarify the terms, references, or standards set forth 8 in this chapter. Any guidelines or terms adopted pursuant to this 9 chapter shall not be subject to Chapter 3.5 (commencing with 10 Section 11340) of Part I of Division 3 of Title 2 ofthe Government 11 Code. O 97 249 AMENDED IN ASSEMBLY MAY 22, 2020 AMENDED IN ASSEMBLY MAY 11, 2020 CALIFORNIA LEGISLATURE-2019-20 REGULAR SESSION ASSEMBLY BILL No. 2345 Introduced by Assembly Members Gonzalez and Chiu February 18, 2020 An act to amend—S-ee im Sections 65400 and 65915 of the Government Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST AB 2345, as amended, Gonzalez. Planning and zoning: density bonuses: annual report: affordable housing. Existing (1) The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. That law requires the planning agency of a city or county to provide by April I of each year an annual report to, among other entities, the Department of Housing and Community Development that includes, among other specified information, the number of net new units of housing that have been issued a completed entitlement, a building permit, or a certificate of occupancy, thus far in the housing element cycle, as provided. This bill would require that the annual report include specified information regarding density bonuses granted in accordance with specified law. (2) Existing law, known as the Density Bonus Law, requires a-eity or eotinty city, county, or city and county to provide a developer that proposes a housing development within the jurisdictional boundaries 97 250 AB 2345 —2— of that city, county, or city and county with a density bonus and other incentives or concessions for the production of lower income housing units, or for the donation of land within the development,if the developer agrees to construct a specified percentage of units for very low income, low-income, or moderate-income households or qualifying residents and meets other requirements. Existing law provides for the calculation of the amount of density bonus for each type of housing development that qualifies under these provisions. Existing law specifies the number of incentives or concessions that an applicant can receive.Existing law-speeif t-s requires that an applicants receive 3 incentives or concessions for projects that include at least 30%of the total units for lower income households, at least 15%for very low income households,or at least 30%for persons or families of moderate income in a common interest development. Existing law speeiftes requires that an applicants receive 4 incentives or concessions for projects in which 100% of the total units are for lower income households, as specified. This bill,instead,would authorize an applicant to receive 3 incentives or concessions for projects that include at least 30% of the total units for lower income households, at least 12% of the total units for very low income households, or at least 30% for persons or families of moderate income in a common interest development. The bill would also authorize an applicant to receive 4 and 5 incentives or concessions, as applicable, for projects in which greater percentages of the total units are for lower income households, very low income households, or for persons or families of moderate income in a common interest development, as specified. The bill would also authorize an applicant to receive 6 incentives or concessions for projects in which 100% of the total units are for lower income households, as specified. Existing law provides that a housing development that receives a waiver from any maximum controls on density, as specified, shall not be is not eligible for,and shall not_..e-i--e'prohibits such a development from receiving, a waiver or reduction of development standards. This bill, instead, would provide that a housing development that receives a waiver from any maximum controls on density, shall-only be is only eligible for a specified waiver or reduction of development standards,unless the city,county,or city and county agrees to additional waivers or reductions of development standards. Existing law specifies that the density bonus, or the amount of the density increase over the otherwise allowable gross residential density, 97 251 -3— AB 2345 to which an applicant is entitled varies according to the amount by which the percentage of affordable housing units in a development exceeds a specified base percentage for units for lower income households, very low income households, senior citizens, persons and families of moderate income,transitional foster youth,or lower income students,as specified.Existing law authorizes a maximum density bonus of 35% for a housing development in which 20% or more of the total units are for lower income households. Existing law authorizes a maximum density bonus of 35% for a housing development in which 11% or more of the total units are for very low income households. Existing law authorizes a maximum density bonus of 35% for housing developments in which 40% or more of the total units are for persons and families of moderate income. This bill would include a maximum density bonus for a housing development in which 16% of the total units are for lower income households and would increase the maximum density bonus, to up to 50%, for construction of a housing development in which a greater percentage than that described above of total units are for lower income households, very low income households, and persons and families of moderate income, as specified. By adding to the duties of local planning officials with respect to the award of density bonuses,this bill would impose a state-mandated local program. Existing law speeifies , (3) Existing law prohibits, except as provided,upon the request of a developer, a city, county, or city and county shall not tseqttire from requiring a vehicular parking ratio for a development that qualifies for a density bonus that exceeds specified amounts of onsite parking per bedroom. Existing law also specifies the parking ratios applicable to a development that include a maximum percentage of low-income or very low income units, that is located within % mile of a transit stop, and that provides unobstructed access to the transit stop from the development. This bill would decrease the maximum ratio of vehicular parking for developments with 2 to 3 bedrooms, as specified.This bill would define the term "natural or constructed impediments" for purposes of determining whether a development has unobstructed access to a transit stop.The bill would-speeify require that the measurement of the distance of a development from a transit stopl be measured from any point on the property of the proposed development to any point on the property 97 252 AB 2345 —4— where the transit stop is located. The bill would authorize a developer to request that a city, county, or city and county not impose vehicular parking standards if the development meets specified , affordability requirements and either (A) provides unobstructed access to a major transit stop, as defined, or (B) is a for-rent housing development for individuals who are 62 years of age or o'�,-att4 older that will have either paratransit service or unobstructed access to a fixed bus route, as specified. (4) Existing law requires a city, county, or city and county to adopt an ordinance that species how it will implement the Density Bonus Law, but provides that failure to adopt an ordinance does not relieve a city, county, or city and county from complying with that law. Existing law also authorizes a city, county, or city and county, if permitted by local ordinance, to grant a density bonus greater than what is described in the Density Bonus Law or to grant a proportionately lower density bonus than what is required by the Density Bonus Law for developments that do not meet the requirements of that law. This bill, notwithstanding any other law, would provide that a city, county, or city and county that has adopted an ordinance pursuant to the Density Bonus Law that, as of the date immediately prior to the effective date of bill,provides for density bonuses that exceed the density bonuses required by the Density Bonus Law is not required to amend or otherwise update its ordinance to comply with the amendments made by this bill. (5) By adding to the duties of local planning officials with respect to preparing and submitting the above-described annual report to the Department of Housing and Community Development and awarding density bonuses, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. Section 65400 of the Government Code is 2 amended to read.• 97 253 —5— AB 2345 1 65400. (a) After the legislative body has adopted all or part 2 of a general plan, the planning agency shall do both of the 3 following: 4 (1) Investigate and make recommendations to the legislative 5 body regarding reasonable and practical means for implementing 6 the general plan or element of the general plan, so that it will serve 7 as an effective guide for orderly growth and development, 8 preservation and conservation of open-space land and natural 9 resources, and the efficient expenditure of public funds relating to 10 the subjects addressed in the general plan. 11 (2) Provide by April 1 of each year an annual report to the 12 legislative body, the Office of Planning and Research, and the 13 Department of Housing and Community Development that includes 14 all of the following: 15 (A) The status of the plan and progress in its implementation. 16 (B) The progress in meeting its share of regional housing needs 17 determined pursuant to Section 65584 and local efforts to remove 18 governmental constraints to the maintenance, improvement, and 19 development of housing pursuant to paragraph(3) of subdivision 20 (c) of Section 65583. 21 The housing element portion of the annual report, as required 22 by this paragraph, shall be prepared through the use of standards, 23 forms, and definitions adopted by the Department of Housing and 24 Community Development. The department may review, adopt, 25 amend, and repeal the standards, forms, or definitions, to 26 implement this article.Any standards,forms,or definitions adopted 27 to implement this article shall not be subject to Chapter 3.5 28 (commencing with Section 11340) of Part 1 of Division 3 of Title 29 2. Before and after adoption of the forms, the housing element 30 portion of the annual report shall include a section that describes 31 the actions taken by the local government towards completion of 32 the programs and status of the local government's compliance with 33 the deadlines in its housing element.That report shall be considered 34 at an annual public meeting before the legislative body where 35 members of the public shall be allowed to provide oral testimony 36 and written comments. 37 The report may include the number of units that have been 38 substantially rehabilitated, converted from nonaffordable to 39 affordable by acquisition, and preserved consistent with the 40 standards set forth in paragraph (2) of subdivision (c) of Section 97 254 AB 2345 —6— 1 65583.1. The report shall document how the units meet the 2 standards set forth in that subdivision. 3 (C) The number of housing development applications received 4 in the prior year. 5 (D) The number of units included in all development 6 applications in the prior year. 7 (E) The number of units approved and disapproved in the prior 8 year. 9 (F) The degree to which its approved general plan complies 10 with the guidelines developed and adopted pursuant to Section 11 65040.2 and the date of the last revision to the general plan. 12 (G) A listing of sites rezoned to accommodate that portion of 13 the city's or county's share of the regional housing need for each 14 income level that could not be accommodated on sites identified 15 in the inventory required by paragraph (1) of subdivision (c) of 16 Section 65583 and Section 65584.09.The listing of sites shall also 17 include any additional sites that may have been required to be 18 identified by Section 65863. 19 (H) The number of net new units of housing, including both 20 rental housing and for-sale housing and any units that the County 21 of Napa or the City of Napa may report pursuant to an agreement 22 entered into pursuant to Section 65584.08, that have been issued 23 a completed entitlement, a building permit, or a certificate of 24 occupancy, thus far in the housing element cycle, and the income 25 category, by area median income category, that each unit of 26 housing satisfies. That production report shall, for each income 27 category described in this subparagraph, distinguish between the 28 number of rental housing units and the number of for-sale units 29 that satisfy each income category. The production report shall 30 include, for each entitlement, building permit, or certificate of 31 occupancy,a unique site identifier that must include the assessor's 32 parcel number,but may include street address,or other identifiers. 33 (I) The number of applications submitted pursuant to subdivision 34 (a) of Section 65913.4, the location and the total number of 35 developments approved pursuant to subdivision (b) of Section 36 65913.4, the total number of building permits issued pursuant to 37 subdivision (b) of Section 65913.4, the total number of units 38 including both rental housing and for-sale housing by area median 39 income category constructed using the process provided for in 40 subdivision (b) of Section 65913.4. 97 255 —7— AB 2345 1 (J) If the city or county has received funding pursuant to the 2 Local Government Planning Support Grants Program(Chapter 3.1 3 (commencing with Section 50515) of Part 2 of Division 31 of the 4 Health and Safety Code), the information required pursuant to 5 subdivision(a)of Section 50515.04 of the Health and Safety Code. 6 (K) The following information with respect to density bonuses 7 granted in accordance with Section 65915: 8 (1) The number of density bonus applications received by the 9 city or county. 10 (ii) The number of density bonus applications approved by the I 1 city or county. 12 (iii) Data from a sample of projects, selected by the planning 13 agency, approved to receive a density bonus from the city or 14 county, including, but not limited to, the percentage of density 15 bonus received, the percentage of affordable units in the project, 16 the number of other incentives or concessions granted to the 17 project, and any waiver or reduction of parking standards for the 18 project. 19 (K) 20 (L) The Department of Housing and Community Development 21 shall post a report submitted pursuant to this paragraph on its 22 internet website within a reasonable time of receiving the report. 23 (b) If a court finds, upon a motion to that effect, that a city, 24 county, or city and county failed to submit, within 60 days of the 25 deadline established in this section, the housing element portion 26 of the report required pursuant to subparagraph (B) of paragraph 27 (2) of subdivision (a) that substantially complies with the 28 requirements of this section, the court shall issue an order or 29 judgment compelling compliance with this section within 60 days. 30 If the city, county, or city and county fails to comply with the 31 court's order within 60 days, the plaintiff or petitioner may move 32 for sanctions, and the court may, upon that motion, grant 33 appropriate sanctions. The court shall retain jurisdiction to ensure 34 that its order or judgment is carried out. If the court determines 35 that its order or judgment is not carried out within 60 days, the 36 court may issue further orders as provided by law to ensure that 37 the purposes and policies of this section are fulfilled. This 38 subdivision applies to proceedings initiated on or after the first 39 day of October following the adoption of forms and definitions by 40 the Department of Housing and Community Development pursuant 97 256 AB 2345 —8— 1 to paragraph(2) of subdivision (a),but no sooner than six months 2 following that adoption. 3 SEG: ON , 4 SEC. 2. Section 65915 of the Government Code is amended 5 to read: 6 65915. (a) (1) When an applicant seeks a density bonus for 7 a housing development within, or for the donation of land for 8 housing within,the jurisdiction of a city,county,or city and county, 9 that local government shall comply with this section. A city, 10 county, or city and county shall adopt an ordinance that specifies 11 how compliance with this section will be implemented. Failtre 12 Except as otherwise provided in subdivision (s),failure to adopt 13 an ordinance shall not relieve a city, county, or city and county 14 from complying with this section. 15 (2) A local government shall not condition the submission, 16 review, or approval of an application pursuant to this chapter on 17 the preparation of an additional report or study that is not otherwise 18 required by state law,including this section.This subdivision does 19 not prohibit a local government from requiring an applicant to 20 provide reasonable documentation to establish eligibility for a 21 requested density bonus, incentives or concessions, as described 22 in subdivision(d),waivers or reductions of development standards, 23 as described in subdivision(e), and parking ratios, as described in 24 subdivision (p). 25 (3) In order to provide for the expeditious processing of a density 26 bonus application, the local government shall do all of the 27 following: 28 (A) Adopt procedures and timelines for processing a density 29 bonus application. 30 (B) Provide a list of all documents and information required to 31 be submitted with the density bonus application in order for the 32 density bonus application to be deemed complete. This list shall 33 be consistent with this chapter. 34 (C) Notify the applicant for a density bonus whether the 35 application is complete in a manner consistent with the timelines 36 specified in Section 65943. 37 (D) (i) If the local government notifies the applicant that the 38 application is deemed complete pursuant to subparagraph (C), 39 provide the applicant with a determination as to the following 40 matters: 97 257 —9— AB 2345 1 (I) The amount of density bonus, calculated pursuant to 2 subdivision (f), for which the applicant is eligible. 3 (II) If the applicant requests a parking ratio pursuant to 4 subdivision(p),the parking ratio for which the applicant is eligible. 5 (lII) If the applicant requests incentives or concessions pursuant 6 to subdivision (d) or waivers or reductions of development 7 standards pursuant to subdivision (e), whether the applicant has 8 provided adequate information for the local government to make 9 a determination as to those incentives, concessions, or waivers or 10 reductions of development standards. 1 1 (ii) Any determination required by this subparagraph shall be 12 based on the development project at the time the application is 13 deemed complete. The local government shall adjust the amount 14 of density bonus and parking ratios awarded pursuant to this section 15 based on. any changes to the project during the course of 16 development. 17 (b) (1) A city,county,or city and county shall grant one density 18 bonus, the amount of which shall be as specified in subdivision 19 (f), and, if requested by the applicant and consistent with the 20 applicable requirements of this section,incentives or concessions, 21 as described in subdivision (d), waivers or reductions of 22 development standards,as described in subdivision(e),and parking 23 ratios, as described in subdivision (p), when an applicant for a 24 housing development seeks and agrees to construct a housing 25 development, excluding any units permitted by the density bonus 26 awarded pursuant to this section,that will contain at least any one 27 of the following: 28 (A) Ten percent of the total units of a housing development for 29 lower income households, as defined in Section 50079.5 of the 30 Health and Safety Code. 31 (B) Five percent of the total units of a housing development for 32 very low income households, as defined in Section 50105 of the 33 Health and Safety Code. 34 (C) A senior citizen housing development,as defined in Sections 35 51.3 and 51.12 of the Civil Code,or a mobilehome park that limits 36 residency based on age requirements for housing for older persons 37 pursuant to Section 798.76 or 799.5 of the Civil Code. 38 (D) Ten percent of the total dwelling units in a common interest 39 development, as defined in Section 4100 of the Civil Code, for 40 persons and families of moderate income, as defined in Section 97 258 AB 2345 -to- 1 50093 of the Health and Safety Code,provided that all units in the 2 development are offered to the public for purchase. 3 (E) Ten percent of the total units of a housing development for 4 transitional foster youth, as defined in Section 66025.9 of the 5 Education Code, disabled veterans, as defined in Section 18541, 6 or homeless persons, as defined in the federal McKinney-Vento 7 Homeless Assistance Act(42 U.S.C. Sec. 11301 et seq.).The units 8 described in this subparagraph shall be subject to a recorded 9 affordability restriction of 55 years and shall be provided at the 10 same affordability level as very low income units. 11 (F) (i) Twenty percent of the total units for lower income 12 students in a student housing development that meets the following 13 requirements: 14 (I) All units in the student housing development will be used 15 exclusively for undergraduate, graduate, or professional students 16 enrolled full time at an institution of higher education accredited 17 by the Western Association of Schools and Colleges or the 18 Accrediting Commission for Community and Junior Colleges. In 19 order to be eligible under this subclause, the developer shall, as a 20 condition of receiving a certificate of occupancy,provide evidence 21 to the city,county,or city and county that the developer has entered 22 into an operating agreement or master lease with one or more 23 institutions of higher education for the institution or institutions 24 to occupy all units of the student housing development with 25 students from that institution or institutions. An operating 26 agreement or master lease entered into pursuant to this subclause 27 is not violated or breached if, in any subsequent year,there are not 28 sufficient students enrolled in an institution of higher education 29 to fill all units in the student housing development. 30 (11) The applicable 20-percent units will be used for lower 31 income students. For purposes of this clause, "lower income 32 students"means students who have a household income and asset 33 level that does not exceed the level for Cal Grant A or Cal Grant 34 B award recipients as set forth in paragraph (1) of subdivision (k) 35 of Section 69432.7 of the Education Code. The eligibility of a 36 student under this clause shall be verified by an affidavit, award 37 letter, or letter of eligibility provided by the institution of higher 38 education that the student is enrolled in, as described in subclause 39 (I), or by the California Student Aid Commission that the student 40 receives or is eligible for financial aid, including an institutional 97 259 -11— AB 2345 1 grant or fee waiver, from the college or university, the California 2 Student Aid Commission, or the federal government shall be 3 sufficient to satisfy this subclause. 4 (III) The rent provided in the applicable units of the development 5 for lower income students shall be calculated at 30 percent of 65 6 percent of the area median income for a single-room occupancy 7 unit type. 8 (IV) The development will provide priority for the applicable 9 affordable units for lower income students experiencing 10 homelessness.A homeless service provider,as defined in paragraph 11 (3) of subdivision (e) of Section 103577 of the Health and Safety 12 Code, or institution of higher education that has knowledge of a 13 person's homeless status may verify a person's status as homeless 14 for purposes of this subclause. 15 (ii) For purposes of calculating a density bonus granted pursuant 16 to this subparagraph,the term"unit"as used in this section means 17 one rental bed and its pro rata share of associated common area 18 facilities.The units described in this subparagraph shall be subject 19 to a recorded affordability restriction of 55 years. 20 (G) One hundred percent of the total units, exclusive of a 21 manager's unit or units, are for lower income households, as 22 defined by Section 50079.5 of the Health and Safety Code,except 23 that up to 20 percent of the total units in the development may be 24 for moderate-income households, as defined in Section 50053 of 25 the Health and Safety Code. 26 (2) For purposes of calculating the amount of the density bonus 27 pursuant to subdivision (f), an applicant who requests a density 28 bonus pursuant to this subdivision shall elect whether the bonus 29 shall be awarded on the basis of subparagraph (A), (B), (C), (D), 30 (E), (F), or(G) of paragraph (1). 31 (3) For the purposes of this section,"total units,""total dwelling 32 units," or "total rental beds" does not include units added by a 33 density bonus awarded pursuant to this section or any local law 34 granting a greater density bonus. 35 (c) (1) (A) An applicant shall agree to, and the city, county, 36 or city and county shall ensure, the continued affordability of all 37 very low and low-income rental units that qualified the applicant 38 for the award of the density bonus for 55 years or a longer period 39 of time if required by the construction or mortgage financing 97 260 AB 2345 —12— 1 assistance program,mortgage insurance program,or rental subsidy 2 program. 3 (B) (i) Except as otherwise provided in clause(ii),rents for the 4 lower income density bonus units shall be set at an affordable rent, 5 as defined in Section 50053 of the Health and Safety Code. 6 (ii) For housing developments meeting the criteria of 7 subparagraph(G) of paragraph(1) of subdivision(b),rents for all 8 units in the development, including both base density and density 9 bonus units, shall be as follows: 10 (I) The rent for at least 20 percent of the units in the 11 development shall be set at an affordable rent,as defined in Section 12 50053 of the Health and Safety Code. 13 (II) The rent for the remaining units in the development shall 14 be set at an amount consistent with the maximum rent levels for 15 a housing development that receives an allocation of state or federal 16 low-income housing tax credits from the California Tax Credit 17 Allocation Committee. 18 (2) An applicant shall agree to, and the city, county, or city and 19 county shall ensure that, the initial occupant of all for-sale units 20 that qualified the applicant for the award of the density bonus are 21 persons and families of very low, low, or moderate income, as 22 required, and that the units are offered at an affordable housing 23 cost, as that cost is defined in Section 50052.5 of the Health and 24 Safety Code.The local government shall enforce an equity sharing 25 agreement,unless it is in conflict with the requirements of another 26 public funding source or law. The following apply to the equity 27 sharing agreement: 28 (A) Upon resale, the seller of the unit shall retain the value of 29 any improvements,the downpayment,and the seller's proportionate 30 share of appreciation. The local government shall recapture any 31 initial subsidy,as defined in subparagraph(B),and its proportionate 32 share of appreciation, as defined in subparagraph (C), which 33 amount shall be used within five years for any of the purposes 34 described in subdivision (e) of Section 33334.2 of the Health and 35 Safety Code that promote home ownership. 36 (B) For purposes of this subdivision, the local government's 37 initial subsidy shall be equal to the fair market value of the home 38 at the time of initial sale minus the initial sale price to the 39 moderate-income household,plus the amount of any downpayment 40 assistance or mortgage assistance. If upon resale the market value 97 261 -13— AB 2345 1 is lower than the initial market value,then the value at the time of 2 the resale shall be used as the initial market value. 3 (C) For purposes of this subdivision, the local government's 4 proportionate share of appreciation shall be equal to the ratio of 5 the local government's initial subsidy to the fair market value of 6 the home at the time of initial sale. 7 (3) (A) An applicant shall be ineligible for a density bonus or 8 any other incentives or concessions under this section if the housing 9 development is proposed on any property that includes a parcel or 10 parcels on which rental dwelling units are or,if the dwelling units 11 have been vacated or demolished in the five-year period preceding 12 the application, have been subject to a recorded covenant, 13 ordinance,or law that restricts rents to levels affordable to persons 14 and families of lower or very low income; subject to any other 15 form of rent or price control through a public entity's valid exercise 16 of its police power; or occupied by lower or very low income 17 households, unless the proposed housing development replaces 18 those units, and either of the following applies: 19 (i) The proposed housing development, inclusive of the units 20 replaced pursuant to this paragraph, contains affordable units at 21 the percentages set forth in subdivision (b). 22 (ii) Each unit in the development, exclusive of a manager's unit 23 or units, is affordable to, and occupied by, either a lower or very 24 low income household. 25 (B) For the purposes of this paragraph, "replace" shall mean 26 either of the following: 27 (i) If any dwelling units described in subparagraph (A) are 28 occupied on the date of application, the proposed housing 29 development shall provide at least the same number of units of 30 equivalent size to be made available at affordable rent or affordable 31 housing cost to, and occupied by,persons and families in the same 32 or lower income category as those households in occupancy. If 33 the income category of the household in occupancy is not known, 34 it shall be rebuttably presumed that lower income renter households 35 occupied these units in the same proportion of lower income renter 36 households to all renter households within the jurisdiction, as 37 determined by the most recently available data from the United 38 States Department of Housing and Urban Development's 39 Comprehensive Housing Affordability Strategy database. For 40 unoccupied dwelling units described in subparagraph (A) in a 97 262 AB 2345 —14— 1 development with occupied units, the proposed housing 2 development shall provide units of equivalent size to be made 3 available at affordable rent or affordable housing cost to, and 4 occupied by, persons and families in the same or lower income 5 category as the last household in occupancy.If the income category 6 of the last household in occupancy is not known, it shall be 7 rebuttably presumed that lower income renter households occupied 8 these units in the same proportion of lower income renter 9 households to all renter households within the jurisdiction, as 10 determined by the most recently available data from the United 11 States Department of Housing and Urban Development's 12 Comprehensive Housing Affordability Strategy database. All 13 replacement calculations resulting in fractional units shall be 14 rounded up to the next whole number.If the replacement units will 15 be rental dwelling units, these units shall be subject to a recorded 16 affordability restriction for at least 55 years. If the proposed 17 development is for-sale units, the units replaced shall be subject 18 to paragraph (2). 19 (ii) If all dwelling units described in subparagraph (A) have 20 been vacated or demolished within the five-year period preceding 21 the application, the proposed housing development shall provide 22 at least the same number of units of equivalent size as existed at 23 the highpoint of those units in the five-year period preceding the 24 application to be made available at affordable rent or affordable 25 housing cost to, and occupied by,persons and families in the same 26 or lower income category as those persons and families in 27 occupancy at that time, if known. If the incomes of the persons 28 and families in occupancy at the highpoint is not known, it shall 29 be rebuttably presumed that low-income and very low income 30 renter households occupied these units in the same proportion of 31 low-income and very low income renter households to all renter 32 households within the jurisdiction, as determined by the most 33 recently available data from the United States Department of 34 Housing and Urban Development's Comprehensive Housing 35 Affordability Strategy database. All replacement calculations 36 resulting in fractional units shall be rounded up to the next whole 37 number. If the replacement units will be rental dwelling units, 38 these units shall be subject to a recorded affordability restriction 39 for at least 55 years. If the proposed development is for-sale units, 40 the units replaced shall be subject to paragraph (2). 97 263 -15— AB 2345 1 (C) Notwithstanding subparagraph (B), for any dwelling unit 2 described in subparagraph (A)that is or was, within the five-year 3 period preceding the application, subject to a form of rent or price 4 control through a local government's valid exercise of its police 5 power and that is or was occupied by persons or families above 6 lower income, the city, county, or city and county may do either 7 of the following: 8 (i) Require that the replacement units be made available at 9 affordable rent or affordable housing cost to, and occupied by, 10 low-income persons or families. If the replacement units will be 11 rental dwelling units, these units shall be subject to a recorded 12 affordability restriction for at least 55 years. If the proposed 13 development is for-sale units, the units replaced shall be subject 14 to paragraph (2). 15 (ii) Require that the units be replaced in compliance with the 16 jurisdiction's rent or price control ordinance, provided that each 17 unit described in subparagraph (A) is replaced. Unless otherwise 18 required by the jurisdiction's rent or price control ordinance,these 19 units shall not be subject to a recorded affordability restriction. 20 (D) For purposes of this paragraph, "equivalent size" means 21 that the replacement units contain at least the same total number 22 of bedrooms as the units being replaced. 23 (E) Subparagraph (A) does not apply to an applicant seeking a 24 density bonus for a proposed housing development if the 25 applicant's application was submitted to, or processed by, a city, 26 county, or city and county before January 1, 2015. 27 (d) (1) An applicant for a density bonus pursuant to subdivision 28 (b) may submit to a city, county, or city and county a proposal for 29 the specific incentives or concessions that the applicant requests 30 pursuant to this section, and may request a meeting with the city, 31 county, or city and county. The city, county, or city and county 32 shall grant the concession or incentive requested by the applicant 33 unless the city,county,or city and county makes a written finding, 34 based upon substantial evidence, of any of the following: 35 (A) The concession or incentive does not result in identifiable 36 and actual cost reductions, consistent with subdivision (k), to 37 provide for affordable housing costs,as defined in Section 50052.5 38 of the Health and Safety Code, or for rents for the targeted units 39 to be set as specified in subdivision (c). 97 264 AB 2345 —16— 1 (B) The concession or incentive would have a specific, adverse 2 impact, as defined in paragraph (2) of subdivision (d) of Section 3 655 89.5,upon public health and safety or the physical environment 4 or on any real property that is listed in the California Register of 5 Historical Resources and for which there is no feasible method to 6 satisfactorily mitigate or avoid the specific,adverse impact without 7 rendering the development unaffordable to low-income and 8 moderate-income households. 9 (C) The concession or incentive would be contrary to state or 10 federal law. 11 (2) The applicant shall receive the following number of 12 incentives or concessions: 13 (A) One incentive or concession for projects that include at least 14 10 percent of the total units for lower income households, at least 15 5 percent for very low income households, or at least 10 percent 16 for persons and families of moderate income in a common interest 17 development. 18 (B) Two incentives or concessions for projects that include at 19 least 20 percent of the total units for lower income households, at 20 least 10 percent for very low income households, or at least 20 21 percent for persons and families of moderate income in a common 22 interest development. 23 (C) Three incentives or concessions for projects that include at 24 least 30 percent of the total units for lower income households, at 25 least 12 percent for very low income households, or at least 30 26 percent for persons and families of moderate income in a common 27 interest development. 28 (D) Four incentives or concessions for projects that include at 29 least 31 percent of the total units for lower income households, at 30 least 13 percent for very low income households, or at least 31 31 percent for persons and families of moderate income in a common 32 interest development. 33 (E) Five incentives or concessions for projects that include at 34 least 33 percent of the total units for lower income households, at 35 least 15 percent for very low income households, or at least 33 36 percent for persons and families of moderate income in a common 37 interest development. 38 (F) Six incentives or concessions for projects meeting the criteria 39 of subparagraph (G) of paragraph (1) of subdivision (b). If the 40 project is located within one-half mile of a major transit stop, as 97 265 -17— AB 2345 1 defined in subdivision(b)of Section 21155 of the Public Resources 2 Code, the applicant shall also receive a height increase of up to 3 three additional stories, or 33 feet. 4 (3) The applicant may initiate judicial proceedings if the city, 5 county, or city and county refuses to grant a requested density 6 bonus, incentive, or concession. If a court finds that the refusal to 7 grant a requested density bonus, incentive, or concession is in 8 violation of this section, the court shall award the plaintiff 9 reasonable attorney's fees and costs of suit. Nothing in this 10 subdivision shall be interpreted to require a local government to 11 grant an incentive or concession that has a specific,adverse impact, 12 as defined in paragraph(2) of subdivision(d) of Section 65589.5, 13 upon health, safety, or the physical environment, and for which 14 there is no feasible method to satisfactorily mitigate or avoid the 15 specific adverse impact. Nothing in this subdivision shall be 16 interpreted to require a local government to grant an incentive or 17 concession that would have an adverse impact on any real property 18 that is listed in the California Register of Historical Resources. 19 The city, county, or city and county shall establish procedures for 20 carrying out this section that shall include legislative body approval 21 of the means of compliance with this section. 22 (4) The city, county, or city and county shall bear the burden 23 of proof for the denial of a requested concession or incentive. 24 (e) (1) In no case may a city, county, or city and county apply 25 any development standard that will have the effect of physically 26 precluding the construction of a development meeting the criteria 27 of subdivision (b) at the densities or with the concessions or 28 incentives permitted by this section. Subject to paragraph (3), an 29 applicant may submit to a city, county, or city and county a 30 proposal for the waiver or reduction of development standards that 31 will have the effect of physically precluding the construction of a 32 development meeting the criteria of subdivision(b)at the densities 33 or with the concessions or incentives permitted under this section, 34 and may request a meeting with the city,county,or city and county. 35 If a court finds that the refusal to grant a waiver or reduction of 36 development standards is in violation of this section, the court 37 shall award the plaintiff reasonable attorney's fees and costs of 38 suit. Nothing in this subdivision shall be interpreted to require a 39 local government to waive or reduce development standards if the 40 waiver or reduction would have a specific, adverse impact, as 97 266 AB 2345 —18— 1 defined in paragraph (2) of subdivision (d) of Section 65589.5, 2 upon health, safety, or the physical environment, and for which 3 there is no feasible method to satisfactorily mitigate or avoid the 4 specific adverse impact. Nothing in this subdivision shall be 5 interpreted to require a local government to waive or reduce 6 development standards that would have an adverse impact on any 7 real property that is listed in the California Register of Historical 8 Resources, or to grant any waiver or reduction that would be 9 contrary to state or federal law. 10 (2) A proposal for the waiver or reduction of development 11 standards pursuant to this subdivision shall neither reduce nor 12 increase the number of incentives or concessions to which the 13 applicant is entitled pursuant to subdivision (d). 14 (3) A housing development that receives a waiver from any 15 maximum controls on density pursuant to clause (ii) of 16 subparagraph(D) of paragraph (3)of subdivision(f) shall only be 17 eligible for a waiver or reduction of development standards as 18 provided in subparagraph (F) of paragraph (2) of subdivision (d) 19 and clause(ii)of subparagraph(D)of paragraph(3)of subdivision 20 (f), unless the city, county, or city and county agrees to additional 21 waivers or reductions of development standards. 22 (f) For the purposes of this chapter, "density bonus" means a 23 density increase over the otherwise maximum allowable gross 24 residential density as of the date of application by the applicant to 25 the city, county, or city and county, or, if elected by the applicant, 26 a lesser percentage of density increase, including, but not limited 27 to,no increase in density.The amount of density increase to which 28 the applicant is entitled shall vary according to the amount by 29 which the percentage of affordable housing units exceeds the 30 percentage established in subdivision (b). 31 (1) For housing developments meeting the criteria of 32 subparagraph (A) of paragraph (1) of subdivision (b), the density 33 bonus shall be calculated as follows: 34 35 Percentage Low-Income Units Percentage Density 36 Bonus 37 10 20 38 11 21.5 39 12 23 40 13 24.5 97 267 -19— AB 2345 1 14 26 2 15 27.5 3 16 29 4 17 30.5 5 18 32 6 19 33.5 7 20 35 8 21 38.75 9 22 42.5 10 23 46.25 11 24 50 12 25 50 13 26 50 14 27 50 15 28 50 16 29 50 17 30 50 18 31 50 19 32 50 20 33 50 21 22 (2) For housing developments meeting the criteria of 23 subparagraph (B) of paragraph (1) of subdivision (b), the density 24 bonus shall be calculated as follows: 25 26 Percentage Very Low Income Units Percentage Density Bonus 27 5 20 28 6 22.5 29 7 25 30 8 27.5 31 9 30 32 10 32.5 33 11 35 34 12 38.75 35 13 42.5 36 14 46.25 37 15 50 38 39 40 97 268 AB 2345 —20- 2 3 4 5 6 7 8 9 1.0 11 (3) (A) For housing developments meeting the criteria of 12 subparagraph (C) of paragraph(1) of subdivision (b), the density 13 bonus shall be 20 percent of the number of senior housing units. 14 (B) For housing developments meeting the criteria of 15 subparagraph (E) of paragraph (1) of subdivision (b), the density 16 bonus shall be 20 percent of the number of the type of units giving 17 rise to a density bonus under that subparagraph. 18 (C) For housing developments meeting the criteria of 19 subparagraph (F) of paragraph (1) of subdivision (b), the density 20 bonus shall be 35 percent of the student housing units. 21 (D) For housing developments meeting the criteria of 22 subparagraph(G)of paragraph(1)of subdivision(b),the following 23 shall apply: 24 (i) Except as otherwise provided in clause(ii),the density bonus 25 shall be 80 percent of the number of units for lower income 26 households. 27 (ii) If the housing development is located within one-half mile 28 of a major transit stop, as defined in subdivision (b) of Section 29 21155 of the Public Resources Code, the city, county, or city and 30 county shall not impose any maximum controls on density. 31 (4) For housing developments meeting the criteria of 32 subparagraph (D) of paragraph (1) of subdivision (b), the density 33 bonus shall be calculated as follows: 34 35 Percentage Moderate-Income Units Percentage Density Bonus 36 10 5 37 11 6 38 12 7 39 13 8 40 14 9 97 269 -21 - AB 2345 1 15 10 2 16 11 3 17 12 4 18 13 5 19 14 6 20 15 7 21 16 8 22 17 9 23 18 10 24 19 11 25 20 12 26 21 13 27 22 14 28 23 15 29 24 16 30 25 17 31 26 18 32 27 19 33 28 20 34 29 21 35 30 22 36 31 23 37 32 24 38 33 25 39 34 26 40 35 27 41 38.75 28 42 42.5 29 43 46.25 30 44 50 31 32 (5) All density calculations resulting in fractional units shall be 33 rounded up to the next whole number. The granting of a density 34 bonus shall not require,or be interpreted,in and of itself,to require 35 a general plan amendment, local coastal plan amendment, zoning 36 change, or other discretionary approval. 37 (g) (1) When an applicant for a tentative subdivision map, 38 parcel map, or other residential development approval donates 39 land to a city, county, or city and county in accordance with this 40 subdivision,the applicant shall be entitled to a 15-percent increase 97 270 AB 2345 —22- 1 above the otherwise maximum allowable residential density for 2 the entire development, as follows: 3 4 Percentage Very Low Income Percentage Density Bonus 5 10 15 6 11 16 7 12 17 8 13 18 9 14 19 10 15 20 11 16 21 12 17 22 13 18 23 14 19 24 15 20 25 16 21 26 17 22 27 18 23 28 19 24 29 20 25 30 21 26 31 22 27 32 23 28 33 24 29 34 25 30 35 26 27 (2) This increase shall be in addition to any increase in density 28 mandated by subdivision(b),up to a maximum combined mandated 29 density increase of 35 percent if an applicant seeks an increase 30 pursuant to both this subdivision and subdivision (b).All density 31 calculations resulting in fractional units shall be rounded up to the 32 next whole number.Nothing in this subdivision shall be construed 33 to enlarge or diminish the authority of a city, county, or city and 34 county to require a developer to donate land as a condition of 35 development. An applicant shall be eligible for the increased 36 density bonus described in this subdivision if all of the following 37 conditions are met: 38 (A) The applicant donates and transfers the land no later than 39 the date of approval of the final subdivision map, parcel map, or 40 residential development application. 97 271 —23— AB 2345 1 (B) The developable acreage and zoning classification of the 2 land being transferred are sufficient to permit construction of units 3 affordable to very low income households in an amount not less 4 than 10 percent of the number of residential units of the proposed 5 development. 6 (C) The transferred land is at least one acre in size or of 7 sufficient size to permit development of at least 40 units, has the 8 appropriate general plan designation, is appropriately zoned with 9 appropriate development standards for development at the density 10 described in paragraph (3) of subdivision (c) of Section 65583.2, 11 and is or will be served by adequate public facilities and 12 infrastructure. 13 (D) The transferred land shall have all of the permits and 14 approvals, other than building permits, necessary for the 15 development of the very low income housing units on the 16 transferred land, not later than the date of approval of the final 17 subdivision map, parcel map, or residential development 18 application, except that the local government may subject the 19 proposed development to subsequent design review to the extent 20 authorized by subdivision (i) of Section 65583.2 if the design is 21 not reviewed by the local government before the time of transfer. 22 (E) The transferred land and the affordable units shall be subject 23 to a deed restriction ensuring continued affordability of the units 24 consistent with paragraphs (1) and (2) of subdivision (c), which 25 shall be recorded on the property at the time of the transfer. 26 (F) The land is transferred to the local agency or to a housing 27 developer approved by the local agency. The local agency may 28 require the applicant to identify and transfer the land to the 29 developer. 30 (G) The transferred land shall be within the boundary of the 31 proposed development or, if the local agency agrees, within 32 one-quarter mile of the boundary of the proposed development. 33 (H) A proposed source of funding for the very low income units 34 shall be identified not later than the date of approval of the final 35 subdivision map, parcel map, or residential development 36 application. 37 (h) (1) When an applicant proposes to construct a housing 38 development that conforms to the requirements of subdivision(b) 39 and includes a childcare facility that will be located on the premises 97 272 AB 2345 —24— 1 of, as part of, or adjacent to, the project, the city, county, or city 2 and county shall grant either of the following: 3 (A) An additional density bonus that is an amount of square 4 feet of residential space that is equal to or greater than the amount 5 of square feet in the childcare facility. 6 (B) An additional concession or incentive that contributes 7 significantly to the economic feasibility of the construction of the 8 childcare facility. 9 (2) The city, county, or city and county shall require, as a 10 condition of approving the housing development,that the following 11 occur: 12 (A) The childcare facility shall remain in operation for a period 13 of time that is as long as or longer than the period of time during 14 which the density bonus units are required to remain affordable 15 pursuant to subdivision (c). 16 (B) Of the children who attend the childcare facility,the children 17 of very low income households, lower income households, or 18 families of moderate income shall equal a-percentage that is equal 19 to or greater than the percentage of dwelling units that are required 20 for very low income households, lower income households, or 21 families of moderate income pursuant to subdivision (b). 22 (3) Notwithstanding any requirement of this subdivision,a city, 23 county,or city and county shall not be required to provide a density 24 bonus or concession for a childcare facility if it finds, based upon 25 substantial evidence, that the community has adequate childcare 26 facilities. 27 (4) "Childcare facility," as used in this section, means a child 28 daycare facility other than a family daycare home, including, but 29 not limited to, infant centers, preschools, extended daycare 30 facilities, and schoolage childcare centers. 31 (i) "Housing development," as used in this section, means a 32 development project for five or more residential units, including 33 mixed-use developments.For the purposes of this section,"housing 34 development" also includes a subdivision or common interest 35 development, as defined in Section 4100 of the Civil Code, 36 approved by a city, county, or city and county and consists of 37 residential units or unimproved residential lots and either a project 38 to substantially rehabilitate and convert an existing commercial 39 building to residential use or the substantial rehabilitation of an 40 existing multifamily dwelling, as defined in subdivision (d) of 97 273 —25— AB 2345 1 Section 65863.4, where the result of the rehabilitation would be a 2 net increase in available residential units. For the purpose of 3 calculating a density bonus, the residential units shall be on 4 contiguous sites that are the subject of one development 5 application, but do not have to be based upon individual 6 subdivision maps or parcels.The density bonus shall be permitted 7 in geographic areas of the housing development other than the 8 areas where the units for the lower income households are located. 9 0) (1) The granting of a concession or incentive shall not require 10 or be interpreted, in and of itself, to require a general plan 11 amendment, local coastal plan amendment, zoning change, study, 12 or other discretionary approval. For purposes of this subdivision, 13 "study" does not include reasonable documentation to establish 14 eligibility for the concession or incentive or to demonstrate that 15 the incentive or concession meets the definition set forth in 16 subdivision (k). This provision is declaratory of existing law. 17 (2) Except as provided in subdivisions (d) and(e), the granting 18 of a density bonus shall not require or be interpreted to require the 19 waiver of a local ordinance or provisions of a local ordinance 20 unrelated to development standards. 21 (k) For the purposes of this chapter, concession or incentive 22 means any of the following: 23 (1) A reduction in site development standards or a modification 24 of zoning code requirements or architectural design requirements 25 that exceed the minimum building standards approved by the 26 California Building Standards Commission as provided in Part 2.5 27 (commencing with Section 18901) of Division 13 of the Health 28 and Safety Code, including, but not limited to, a reduction in 29 setback and square footage requirements and in the ratio of 30 vehicular parking spaces that would otherwise be required that 31 results in identifiable and actual cost reductions, to provide for 32 affordable housing costs, as defined in Section 50052.5 of the 33 Health and Safety Code, or for rents for the targeted units to be 34 set as specified in subdivision (c). 35 (2) Approval of mixed-use zoning in conjunction with the 36 housing project if commercial,office,industrial,or other land uses 37 will reduce the cost of the housing development and if the 38 commercial, office, industrial, or other land uses are compatible 39 with the housing project and the existing or planned development 40 in the area where the proposed housing project will be located. 97 274 AB 2345 —26— 1 (3) Other regulatory incentives or concessions proposed by the 2 developer or the city, county, or city and county that result in 3 identifiable and actual cost reductions to provide for affordable 4 housing costs, as defined in Section 50052.5 of the Health and 5 Safety Code, or for rents for the targeted units to be set as specified 6 in subdivision (c). 7 (0 Subdivision (k) does not limit or require the provision of 8 direct financial incentives for the housing development, including 9 the provision of publicly owned land, by the city, county, or city 10 and county, or the waiver of fees or dedication requirements. 11 (m) This section does not supersede or in any way alter or lessen 12 the effect or application of the California Coastal Act of 1976 13 (Division 20 (commencing with Section 30000) of the Public 14 Resources Code). Any density bonus, concessions, incentives, 15 waivers or reductions of development standards,and parking ratios 16 to which the applicant is entitled under this section shall be 17 permitted in a manner that is consistent with this section and 18 Division 20 (commencing with Section 30000) of the Public 19 Resources Code. 20 (n) If permitted by local ordinance,nothing in this section shall 21 be construed to prohibit a city, county, or city and county from 22 granting a density bonus greater than what is described in this 23 section for a development that meets the requirements of this 24 section or from granting a proportionately lower density bonus 25 than what is required by this section for developments that do not 26 meet the requirements of this section. 27 (o) For purposes of this section, the following definitions shall 28 apply: 29 (1) "Development standard" includes a site or construction 30 condition, including, but not limited to, a height limitation, a 31 setback requirement, a floor area ratio, an onsite open-space 32 requirement, or a parking ratio that applies to a residential 33 development pursuant to any ordinance, general plan element, 34 specific plan, charter, or other local condition, law, policy, 35 resolution, or regulation. 36 (2) "Maximum allowable residential density"means the density 37 allowed under the zoning ordinance and land use element of the 38 general plan, or, if a range of density is permitted, means the 39 maximum allowable density for the specific zoning range and land 40 use element of the general plan applicable to the project. 1f the 97 275 —27— AB 2345 1 density allowed under the zoning ordinance is inconsistent with 2 the density allowed under the land use element of the general plan, 3 the general plan density shall prevail. 4 (p) (1) Except as provided in paragraphs(2), (3), and(4),upon 5 the request of the developer,a city,county,or city and county shall 6 not require a vehicular parking ratio,inclusive of handicapped and 7 guest parking,of a development meeting the criteria of subdivisions 8 (b) and (c), that exceeds the following ratios: 9 (A) Zero to one bedroom: one onsite parking space. 10 (B) Two to three bedrooms: one and one-half onsite parking 11 spaces. 12 (C) Four and more bedrooms:two and one-half parking spaces. 13 (2) (A) Notwithstanding paragraph (1), if a development 14 includes 15 16 (f) an at least 20 percent low income units for housing 17 developments meeting the criteria of subparagraph (A) of 18 paragraph (1) of subdivision (b) or at least 11 percent very low 19 income units for housing developments meeting the criteria of 20 subparagraph (B) of paragraph (1) of subdivision (b), is located 21 within one-half mile of a major transit stop, as defined in 22 subdivision (b) of Section 21155 of the Public Resources Code, 23 and there is unobstructed access to the major transit stop from the 24 development, then, upon the request of the developer, a city, 25 county, or city and county shall not impose a vehicular parking 26 ratio,inclusive of handicapped and guest parking,that exceeds 0.5 27 spaces per unit. 28 (B) For purposes of this subdivision, a development shall have 29 unobstructed access to a major transit stop if a resident is able to 30 access the major transit stop without encountering natural or 31 constructed impediments. For purposes of this subparagraph, 32 "natural or constructed impediments" includes, but is not limited 33 to, freeways, rivers, mountains, and bodies of water, but does not 34 include residential structures, shopping centers, parking lots, or 35 rails used for transit. 36 (C) The distance of a development described in subparagraph 37 (A) from a major transit stop shall be measured from any point 38 located on the property of the proposed development to any point 39 on the property on which the major transit stop is located,including 97 276 AB 2345 —28— 1 any parking lot owned by the transit authority or other local agency 2 operating the major transit stop. 3 (3) Notwithstanding paragraph (1), if a development consists 4 solely of rental units, exclusive of a manager's unit or units, with 5 an affordable housing cost to lower income families, as provided 6 in Section 50052.5 of the Health and Safety Code, then,upon the 7 request of the developer, a city, county, or city and county shall 8 not impose vehicular parking standards if the developments meets 9 either of the following criteria: 10 (A) The development is located within one-half mile of a major 11 transit stop, as defined in subdivision (b) of Section 21155 of the 12 Public Resources Code, and there is unobstructed access to the 13 major transit stop from the development. if-the 14 (B) The development is a for-rent housing development for 15 individuals who are 62 years of age or older that complies with 16 Sections 51.2 and 51.3 of the Civil-Code, Code and the 17 development, shall have has either paratransit service or 18 unobstructed access,within one-half mile,to fixed bus route service 19 that operates at least eight times per day. 20 (4) Notwithstanding paragraphs (1) and (8), if a development 21 consists solely of rental units, exclusive of a manager's unit or 22 units, with an affordable housing cost to lower income families, 23 as provided in Section 50052.5 of the Health and Safety Code,and 24 the development is either a special needs housing development, 25 as defined in Section 51312 of the Health and Safety Code, or a 26 supportive housing development, as defined in Section 50675.14 27 of the Health and Safety Code, then, upon the request of the 28 developer, a city, county, or city and county shall not impose any 29 minimum vehicular parking requirement. A development that is 30 a special needs housing development shall have either paratransit 31 service or unobstructed access, within one-half mile, to fixed bus 32 route service that operates at least eight times per day. 33 (5) 1f the total number of parking spaces required for a 34 development is other than a whole number, the number shall be 35 rounded up to the next whole number. For purposes of this 36 subdivision, a development may provide onsite parking through 37 tandem parking or uncovered parking, but not through onstreet 38 parking. 39 (6) This subdivision shall apply to a development that meets 40 the requirements of subdivisions(b)and(c),but only at the request 97 277 —29— AB 2345 1 of the applicant. An applicant may request parking incentives or 2 concessions beyond those provided in this subdivision pursuant 3 to subdivision (d). 4 (7) This subdivision does not preclude a city, county, or city 5 and county from reducing or eliminating a parking requirement 6 for development projects of any type in any location. 7 (8) Notwithstanding paragraphs (2) and (3), if a city, county, 8 city and county, or an independent consultant has conducted an 9 areawide or jurisdictionwide parking study in the last seven years, 10 then the city, county, or city and county may impose a higher 11 vehicular parking ratio not to exceed the ratio described in 12 paragraph(1),based upon substantial evidence found in the parking 13 study, that includes, but is not limited to, an analysis of parking 14 availability, differing levels of transit access, walkability access 15 to transit services, the potential for shared parking, the effect of 16 parking requirements on the cost of market-rate and subsidized 17 developments,and the lower rates of car ownership for low-income 18 and very low income individuals, including seniors and special 19 needs individuals. The city, county, or city and county shall pay 20 the costs of any new study. The city, county, or city and county 21 shall make findings, based on a parking study completed in 22 conformity with this paragraph,supporting the need for the higher 23 parking ratio. 24 (9) A request pursuant to this subdivision shall neither reduce 25 nor increase the number of incentives or concessions to which the 26 applicant is entitled pursuant to subdivision (d). 27 (q) Each component of any density calculation, including base 28 density and bonus density, resulting in fractional units shall be 29 separately rounded up to the next whole number. The Legislature 30 finds and declares that this provision is declaratory of existing law. 31 (r) This chapter shall be interpreted liberally in favor of 32 producing the maximum number of total housing units. 33 (s) Notwithstanding any other law, if a city, county, or city and 34 county has adopted an ordinance pursuant to this section that, as 35 of the date immediately prior to the effective date of the act adding 36 this subdivision, provides for density bonuses that exceed the 37 density bonuses required by this section, that city, county, or city 38 and county is not required to amend or otherwise update its 39 ordinance to comply with the amendments made to this section by 40 the act adding this subdivision. 97 278 AB 2345 —30— 1 SEG. -2. 2 SEC. 3. No reimbursement is required by this act pursuant to 3 Section 6 of Article XIIIB of the California Constitution because 4 a local agency or school district has the authority to levy service 5 charges, fees, or assessments sufficient to pay for the program or 6 level of service mandated by this act,within the meaning of Section 7 17556 of the Government Code. O 97 279 The LI*brary4 ®4 Stabiii* zation Fund COVID-i9 is causing significant financial losses for libraries, resulting in disruption to core library services,thousands of staff furloughs and layoffs across the country. Fiscal ai""CH USRA r MIAM o.er ero�c stabilization is needed to preserve crucial library services for students,jobseekers, rural and Tribal residents,and small 1 --- businesses—now and in the recovery to come. The Library Stabilization Fund Act would establish a$2 billion unemployment forms curbside fund to address financial losses and bolster library services, Miami-Dade Public Library System. with priority to the hardest-hit communities. Delivered through the Institute of Museum and Library Services (IMLS), Librarians manufactu PPE in Los Angeles Pub;ui the funding would provide: Library's Octavia Lab. i. ■ $1.7 billion to be distributed to local libraries through state library agencies based on state population,with a minimum of$10 million to each state 0 $45 million in formula grants to Tribal libraries ■ $200 million in competitive grants to strengthen library services to communities affected by COVI D-19 - ■ $40 million for IMLS to administer grants and conduct research and data collection related to the impacts of COVID-19 Funds would keep nearly 370,000 library workers on the job,defray costs related to safe re-opening, and support a range of library services to millions of patrons, including: ■ High-speed internet access and digital literacy training ■ Resources to facilitate remote learning for educators and students of all ages ■ Tools and guidance for entrepreneurs to research emerging markets,design business plans and launch startups ■ Employment assistance,from resume writing to job search to GED certification ■ Support in applying for veteran's benefits, unemployment assistance, medical coverage and other government services ■ Programs that foster early literacy,entrepreneurship and lifelong learning The legislation was introduced on July 2 by Sen.Jack Reed (RI) and Rep.Andy Levin (MI-9). For more information: D ALAAmericanLibraryAssoeiation Kevin Maher:kmaher@alawash.org / GavinBaker:gbake$�alawash.org