Loading...
HomeMy WebLinkAboutConsider Positions on Legislation Pending Before the State L (5) 2000 Main Street, Huntington Beach,CA• ,t-41110 City of Huntington Beach s 92648 x _ . ,, F-6Iz VOI G:. REsifi J FD2'T:1 s- A -3- File #: 23-388 MEETING DATE: 5/2/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Al Zelinka, City Manager VIA: Travis K. Hopkins, Assistant City Manager PREPARED BY: Shannon Levin, Council Policy Analyst Subject: Consider positions on legislation pending before the State Legislature, as recommended by the Intergovernmental Relations Committee (IRC) Statement of Issue: On April 26, 2022, the IRC, comprised of Mayor Tony Strickland and Mayor Pro Tem Van Der Mark (with Council Member Pat Burns absent), discussed legislative items with relevance to Huntington Beach. Following discussion, the IRC chose to take positions on various State bills, which are presented to the full City Council for consideration. Financial Impact: Not applicable. Recommended Action: Approve one or more of the following positions on State legislation: A) Oppose AB 480 (Ting/Umberg) B) Support SB 747 (Caballero) C) Oppose AB 1035 (Muratsuchi) D) Oppose SB 4 (Wiener) E) Oppose AB 1485 (Haney/Wiener) F) Oppose AB 68 (Ward) G) Oppose SB 423 (Wiener) City of Huntington Beach Page 1 of 3 Printed on 4/27/2023 powerel /LegistarT' File #: 23-388 MEETING DATE: 5/2/2023 H) Watch SB 222 (Nguyen) I) Watch SB 1175 (Quirk-Silva) J) Oppose SB 252 (Gonzalez) Alternative Action(s): Do not approve one or more recommended action, and direct staff accordingly. Analysis: On April 26, 2023, the IRC reviewed and discussed various legislative and regional issues with relevance to Huntington Beach policies and priorities, as defined by City Council. The following is a summary of the items the IRC took positions on and are presented to City Council for consideration: 1. OPPOSE AB 480 (Ting/Umberg) Surplus Land This bill is an attempt at a prior bill that tried to expand the Surplus Lands Act that was stopped last year (AB 2357 Ting). This would permanently expand the reach of the SLA to include review of leases and all but eliminating the use of the Economic Opportunity Law for cities and counties. 2. SUPPORT SB 747 (Caballero) Surplus Land This bill that creates much-need efficiencies in SLA and upholds the Economic Opportunity Act to further economic development. 3. OPPOSE AB 1035 (Muratsuchi) Mobilehome parks: rent caps This would establish rent caps in mobile home parks, which is in direct conflict with the City's Charter Section 803. 4. OPPOSE SB 4 (Wiener) Planning and zoning: housing development: higher education institutions and religious institutions This would allow by-right zoning of medium and high-density housing on religious and educational properties located in residential areas. 5. OPPOSE AB 1485 (Haney/Wiener) Housing element: enforcement: Attorney General This bill would grant HCD and the Attorney General the unconditional right to intervene in specified housing law cases. 6. OPPOSE AB 68 (Ward) Land use: streamlined housing approvals: density, subdivision, and utility approvals This bill is a mechanism for HCD to allow by-right development and total authority to interpret housing law. 7. OPPOSE SB 423 (Wiener) Land use: streamlined housing approvals: multifamily housing developments This would allow for streamlined housing approvals and eliminate objective building standards by which to evaluate a project. City of Huntington Beach Page 2 of 3 Printed on 4/27/2023 powere'i LegistarTM File #: 23-388 MEETING DATE: 5/2/2023 8. WATCH SB 222 (Nguyen) Outdoor advertising: applications This bill would require the Department of Transportation (CalTrans) to consider the approval or denial of a pending outdoor advertising application before construction on an applicable highway project is completed. 9. WATCH SB 1175 (Quirk-Silva) Outdoor advertising displays: redevelopment agency project areas The bill would allow the applicable city or county to request from the Department of Transportation (CalTrans) a 10-year extension for treating a display in a redevelopment agency project, as described above, as an on-premises display if the display meets the criteria for a finding of good cause. 10.OPPOSE SB 252 (Gonzalez) Public retirement systems: fossil fuels: divestment This bill prohibits the Board of the Public Employees' Retirement System (PERS) and the Teachers' Retirement Board of the State Teachers' Retirement System (STRS) from making any additional or new investments or renewing existing investments of public employee retirement funds in a fossil fuel company, and requires PERS and STRS to liquidate investments in a fossil fuel company on or before July 1, 2031. Environmental Status: Not applicable. Strategic Plan Goal: Non Applicable - Administrative Item A t tachment(s): 1. AB 480 2. SB747 3. AB 1035 4. SB4 5. AB 1485 6. AB 68 7. SB423 8. SB 252 City of Huntington Beach Page 3 of 3 Printed on 4/27/2023 poweretaiii LegistarTM City Council/ ACTION AGENDA May 2, 2023 Public Financing Authority Successful lottery applicants in the Youth Sports category: 1. Surf City Premier Youth Sports and Fitness 2. Seaview Little League 3. South Huntington Beach Girls Fastpitch Softball 4. Culture Football Organization 5. Team 90, Inc., dba California Rush Alternates: 1) Huntington Beach Pop Warner Youth Football; 2) Huntington Valley Little League; and, 3) Vanguard Aquatics Successful lottery applicants in the Civic Organizations category: 1. Patriots and Paws 2. Lutheran Church of the Resurrection 3. Friends of the HB Junior Guards 4. HB Lions Foundation 5. Orange Coast Gakuen, Inc. Alternates: 1) O. C. Children's Theater(OCCT); 2) Apostolic Assembly of the Faith HB; and, 3) American Legion Huntington Beach Post 133 CONSENT CALENDAR Items pulled for separate discussion: #17 and#18(Kalmick); #22 and#29 (Burns) OFFICE OF THE CITY CLERK 16. 23-316 Approved and adopted Minutes Recommended Action: Approve and adopt the City Council/Public Financing Authority regular meeting minutes of April 4, 2023. Approved 7-0 17. 23-397 Received and filed a revision to the 2023 City Council Liaison List- Citizen Boards, Commissions, Committees and Task Forces Recommended Action: Receive and file the revised 2023 City Council Liaison List that assigns Councilmember McKeon as Alternate to the West Orange County Water Board. Approved 7-0 with identified amendments CITY MANAGER'S OFFICE 18. 23-388 Took positions on legislation pending before the State Legislature, as recommended by the Intergovernmental Relations Committee (IRC) Recommended Action: Approve one or more of the following positions on State legislation: Page 5 of 11 City Council/ ACTION AGENDA May 2, 2023 Public Financing Authority A) Oppose AB 480 (Ting/Umberg)Approved 4-0-3(Kalmick, Moser, Bolton-Abstain) B) Support SB 747 (Caballero)Approved 7-0 C) Oppose AB 1035 (Muratsuchi)Approved 7-0 D) Oppose SB 4 (Wiener)Approved 4-0-3(Kalmick, Moser, Bolton-Abstain) E) Oppose AB 1485 (Haney/Wiener)Approved 4-0-3(Kalmick, Moser, Bolton-Abstain) F) Oppose AB 68 (Ward)Approved 4-0-3(Kalmick,Moser, Bolton-Abstain) G) Oppose SB 423 (Wiener)Approved 7-0 H) Watch SB 222 (Nguyen) --No Action Taken-- I) Watch AB 1175 (Quirk-Silva)Approved 7-0 J) Oppose SB 252 (Gonzalez)Approved 4-3(Kalmick, Moser, Bolton-No) COMMUNITY AND LIBRARY SERVICES DEPARTMENT 19. 23-212 Approved and authorized License Agreement between the City of Huntington Beach and Subhash and Sushil Patel, Individuals, dba One Fine Blend for operation of food and beverage kiosk located at the Huntington Beach Central Library Recommended Action: Approve and authorize the Mayor and City Clerk to execute the"License Agreement between the City of the City of Huntington Beach and Subhash and Sushil Patel, dba One Fine Blend" for a food and beverage kiosk located at the Huntington Beach Central Library. Approved 7-0 COMMUNITY DEVELOPMENT DEPARTMENT 20. 23-357 Approved and authorized execution of a License Agreement between the City of Huntington Beach and the Huntington Beach Credit Union for ATM Services at City Hall Recommended Action: Approve and authorize the Mayor and City Clerk to execute the"Non-Exclusive License Agreement between the City of Huntington Beach and the Huntington Beach Credit Union for ATM Services at City Hall." Approved 7-0 FINANCE DEPARTMENT 21. 23-325 Approved the escheatment of Unclaimed Funds pursuant to Government Code Sections 50050-50057 Recommended Action: Review and approve the transfer of$9,575.48 of unclaimed funds from the City's Unclaimed Funds Liability Account to the City's Miscellaneous Revenue Account 10000100.48550 in compliance with Government Code Sections 50050-50057. Approved 7-0 Page 6 of 11 AMENDED IN ASSEMBLY APRIL 5, 2023 AMENDED IN ASSEMBLY MARCH 14, 2023 CALIFORNIA LEGISLATURE-2023-24 REGULAR SESSION ASSEMBLY BILL No. 480 Introduced by Assembly Member Ting (Principal coauthor: Senator Umberg) February 7, 2023 An act to amend Sections 54221, 54222, 54222.5, 54223, 54224, 54225, 54227, and 54230.5 of, and to add Section 54221.5 to, the • Government Code,relating to local government. LEGISLATIVE COUNSEL'S DIGEST AB 480, as amended, Ting. Surplus land. Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospective transferee, particularly that the local agency send a notice of availability to specified entities that have notified the Department of Housing and Community Development of their interest in surplus land, as specified. Under existing law, if the local agency receives a notice of interest, the local agency is required to engage in good faith negotiations with the entity desiring to purchase or lease the surplus land. Existing law requires a local agency to take formal action in a regular public meeting to declare land is surplus and is not necessary for the agency's use and to declare land as either "surplus land" or "exempt surplus land," as supported by written findings, before a local agency 97 140 AB 480 —2— may take any action to dispose of it consistent with an agency's policies or procedures. This bill would recast that provision and would authorize, exempt a local agency,in specified instances,that a local agency administratively declare land as from making a declaration at a public meeting for land that is "exempt surplus land" if the declaration and findings arc the local agency identifies the land in a notice that is published and available for public comment at least 30 days before the declaration exemption takes effect. The bill would also require a local agency to provide a written notification to the Department of Housing and Community Development of its declaration and findings 30 days before disposing of land declared"exempt surplus land."Because this bill would require local officials to perform additional duties, it would impose a state-mandated local program. Existing law defines"exempt surplus land,"for which a local agency is not required to follow the requirements for disposal of surplus land, except as provided, as, among other things, surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, as specified. This bill would require that those legal restrictions be documented and verified in writing by the relevant agencies that have authority relating to the restrictions. Existing law specifies that,for purposes of these provisions,the term "exempt surplus land,"includes, among other things, surplus land that is put out to open, competitive bid by a local agency, as specified, for purposes of a mixed-use development that is more than one acre in area, that includes not less than 300 housing units, and that restricts at least 25% of the residential units to lower income households with an affordable sales price or an affordable rent for a minimum of 55 years for rental housing and 45 years for ownership housing. This bill would modify these provisions to require that the mixed-use development include not less than 300 residential units. Existing law also defines exempt surplus land as,among other things, land that was transferred by the state to a local agency, as specified, • that includes residential units that are restricted to persons and families of low or moderate income with an affordable sales price or rent, at least 80% of which shall be restricted to persons and families of lower income. 97 141 —3— AB 480 This bill would expand the definition of exempt surplus land to include land that is owned by a California public-use airport on which residential use is prohibited pursuant to specified federal law. Existing law requires any local agency disposing of surplus land to send a written notice of availability of the property to specified entities. Existing law requires the Department of Housing and Community Development to maintain on its internet website a list of all notices of availability throughout the state. This bill would require the department to also maintain on its internet website a list of all entities, including housing sponsors, that have notified the department of their interest in surplus land for the purpose of developing low-and moderate-income housing.The bill would make other nonsubstantive changes to provisions that describe the entities to which notices of availability for developing low-and moderate-income housing,for open-space purposes,and for school facilities construction are required to be sent. Existing law requires that an entity proposing to use surplus land for developing low-and moderate-income housing agree to make available a specified percentage of the total number of units developed at affordable housing cost or affordable rent to lower income households, as specified, and that this requirement be contained in a covenant or restriction recorded against the surplus land at the time of the sale that shall run with the land and be enforceable by specified entities and persons. This bill would make nonsubstantive changes to the provisions that describe the entities and persons that can enforce the covenant or restriction. Existing law specifies that after the disposing agency has received a notice of interest from the entity desiring to purchase or lease the land, if price or terms cannot be agreed upon after a good faith negotiation period, the land may be disposed of, as specified. This bill would recast that provision to state that after the specified good faith negotiation,the local agency may dispose of the surplus land, as specified. Existing law proclaims that nothing in these provisions relating to the disposition of surplus property shall preclude a local agency,housing authority,or redevelopment agency that purchases land from a disposing agency from reconveying the land to a nonprofit or for-profit housing developer for development of low- and moderate-income housing. 97 142 AB 480 —4— This bill would modify that provision to remove reference to housing authorities and redevelopment agencies and make other nonsubstantive changes. Existing law specifies that any public agency disposing of surplus land to a specified entity that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land. This bill would modify those provisions to refer, instead, to a local agency disposing of surplus land. Existing law authorizes a local agency to negotiate concurrently with all entities that provide notice of interest for the purpose of developing affordable housing that meets specified requirements. This bill would modify that provision to reference low- and moderate-income housing that meets specified requirements. The bill would make other nonsubstantive changes to this provision. Existing law makes a local agency that disposes of land in violation of these provisions after receiving notice from the Department of Housing and Community Development liable for a penalty, of 30% of the final sale price of the surplus land sold for a first violation and 50% for any subsequent violation. This bill would,instead,make a local agency that disposes of surplus land in violation of these provisions after receiving a notification from the Department of Housing and Community Development,as specified, that the local agency is in violation of these provisions liable for a penalty of 30%of the greater of the final sale price,or of the fair market value at the time of disposition, as determined by an independent appraisal,of the surplus land for a first violation,and 50%of the greater of the 2 sums, for any subsequent violation. The bill would make nonsubstantive changes to,and correct an erroneous cross-reference in, those provisions. 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. 97 • 143 —5— AB 480 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 54221 of the Government Code is 2 amended to read: 3 54221. As used in this article, the following definitions shall 4 apply: 5 (a) (1) "Local agency" means every city, whether organized 6 under general law or by charter, county, city and county, district, 7 including school, sewer,water,utility, and local and regional park 8 districts of any kind or class, joint powers authority, successor 9 agency to a former redevelopment agency, housing authority, or 10 other political subdivision of this state and any instrumentality 11 thereof that is empowered to acquire and hold real property. 12 (2) The Legislature finds and declares that the term "district" 13 as used in this article includes all districts within the state, • 14 including, but not limited to, all special districts, sewer, water, 15 utility,and local and regional park districts,and any other political 16 subdivision of this state that is a district,and therefore the changes 17 in paragraph(1)made by the act adding this paragraph that specify 18 that the provisions of this article apply to all districts, including 19 school, sewer, water, utility, and local and regional park districts 20 of any kind or class, are declaratory of, and not a change in, 21 existing law. 22 (b) (1) "Surplus land"means land owned in fee simple by any 23 local agency that is not necessary for the agency's use as declared 24 by the local agency pursuant to Section 54221.5. 25 (2) "Surplus land" includes land held in the Community 26 Redevelopment Property Trust Fund pursuant to Section 34191.4 27 of the Health and Safety Code and land that has been designated 28 in the long-range property management plan approved by the 29 Department of Finance pursuant to Section 34191.5 of the Health 30 and Safety Code, either for sale or for future development, but 31 does not include any specific disposal of land to an identified entity 32 described in the plan. 33 (3) Nothing in this article prevents a local agency from obtaining 34 fair market value for the disposition of surplus land consistent with 35 Section 54226. 97 144 AB 480 —6— 1 (c) (1) Except as provided in paragraph (2), "agency's use" 2 shall include, but not be limited to, land that is being used, or is 3 planned to be used pursuant to a written plan adopted by the local 4 agency's governing board, for agency work or operations, 5 including,but not limited to,utility sites,watershed property,land 6 being used for conservation purposes, land for demonstration, 7 exhibition, or educational purposes related to greenhouse gas 8 emissions, and buffer sites near sensitive governmental uses, 9 including, but not limited to, wastewater treatment plants. 10 (2) (A) "Agency's use" shall not include commercial or 11 industrial uses or activities, including nongovernmental retail, 12 entertainment,or office development.Property disposed of for the 13 sole purpose of investment or generation of revenue shall not be 14 considered necessary for the agency's use. 15 (B) In the case of a local agency that is a district, excepting 16 those whose primary mission or purpose is to supply the public 17 with a transportation system, "agency's use" may include 18 commercial or industrial uses or activities, including 19 nongovernmental retail,entertainment, or office development or 20 be for the sole purpose of investment or generation of revenue if 21 the agency's governing body takes action in a public meeting 22 declaring that the use of the site will do one of the following: 23 (i) Directly further the express purpose of agency work or 24 operations. 25 (ii) Be expressly authorized by a statute governing the local 26 agency, provided the district complies with Section 54233.5 if 27 applicable. 28 (d) "Open-space purposes" means the use of land for public 29 recreation, enjoyment of scenic beauty, or conservation or use of 30 natural resources. 31 (e) "Persons and families of low or moderate income" has the 32 same meaning as provided in Section 50093 of the Health and 33 Safety Code. 34 (f) (1) Except as provided in paragraph (2), "exempt surplus 35 land"means any of the following: 36 (A) Surplus land that is transferred pursuant to Section 25539.4 37 or 37364. 38 (B) Surplus land that is (i) less than 5,000 square feet in area, 39 (ii) less than the minimum legal residential building lot size for 40 the jurisdiction in which the parcel is located,or 5,000 square feet 97 145 -7— AB 480 1 in area, whichever is less, or (iii)has no record access-and is less 2 than 10,000 square feet in area;and is not contiguous to land owned 3 by a state or local agency that is used for open-space or low- and 4 moderate-income housing purposes. If the surplus land is not sold 5 to an owner of contiguous land,it is not considered exempt surplus 6 land and is subject to this article. 7 (C) Surplus land that a local agency is exchanging for another 8 property necessary for the agency's use. 9 (D) Surplus land that a local agency is transferring to another 10 local,state,or federal agency for the agency's use,or to a federally 11 recognized California Indian tribe. 12 (E) Surplus land that is a former street, right of way, or 13 easement, and is conveyed to an owner of an adjacent property. 14 (F) Surplus land that is put out to open, competitive bid by a 15 local agency, provided all entities identified in subdivision (a) of 16 Section 54222 will be invited to participate in the competitive bid 17 process, for either of the following purposes: 18 (i) A housing development,that may have ancillary commercial 19 ground floor uses,that restricts 100 percent of the residential units 20 to persons and families of low or moderate income, with at least 21 75 percent of the residential units restricted to lower income 22 households,as defined in Section 50079.5 of the Health and Safety 23 Code, with an affordable sales price or an affordable rent, as 24 defined in Sections 50052.5 or 50053 of the Health and Safety 25 Code, for a minimum of 55 years for rental housing and 45 years 26 for ownership housing, and in no event shall the maximum 27 affordable sales price or rent level be higher than 20 percent below 28 the median market rents or sales prices for the neighborhood in 29 which the site is located. 30 (ii) A mixed-use development that is more than one acre in area, 31 that includes not less than 300 residential units, and that restricts 32 at least 25 percent of the residential units to lower income 33 households,as defined in Section 50079.5 of the Health and Safety 34 Code, with an affordable sales price or an affordable rent, as 35 defined in Sections 50052.5 and 50053 of the Health and Safety 36 Code; for a minimum of 55 years for rental housing and 45 years 37 for ownership housing. 38 (G) Surplus land that is subject to valid legal restrictions that 39 are not imposed by the local agency and that would make housing 40 prohibited, unless there is a feasible method to satisfactorily 97 • 146 AB 480 —8— 1 mitigate or avoid the prohibition on the site. The legal restriction 2 shall be documented and verified in writing by the relevant 3 agencies that have authority relating to the restrictions.An existing 4 nonresidential land use designation on the surplus land is not a 5 legal restriction that would make housing prohibited for purposes 6 of this subparagraph. Nothing in this article limits a local 7 jurisdiction's authority or discretion to approve land use, zoning, 8 or entitlement decisions in connection with the surplus land. 9 (H) Surplus land that was granted by the state in trust to a local 10 agency or that was acquired by the local agency for trust purposes 11 by purchase or exchange, and for which disposal of the land is 12 authorized or required subject to conditions established by statute. 13 (I) Land that is subject to Sections 17388, 17515, 17536,81192, 14 81397, 81399, 81420, and 81422 of the Education Code and Part 15 14(commencing with Section 53570)of Division 31 of the Health 16 and Safety Code, unless compliance with this article is expressly 17 required. 18 (J) Surplus land that is a former military base that was conveyed 19 by the federal government to a local agency, and is subject to 20 Article 8 (commencing with Section 33492.125) of Chapter 4.5 21 of Part 1 of Division 24 of the Health and Safety Code, provided 22 that all of the following conditions are met: 23 (i) The former military base has an aggregate area greater than 24 five acres, is expected to include a mix of residential and 25 nonresidential uses,and is expected to include no fewer than 1,400 26 residential units upon completion of development or redevelopment 27 of the former military base. 28 (ii) The affordability requirements for residential units shall be 29 governed by a settlement agreement entered into prior to September 30 1, 2020. Furthermore, at least 25 percent of the initial 1,400 31 residential units developed shall be restricted to lower income 32 households,as defined in Section 50079.5 of the Health and Safety 33 Code, with an affordable sales price or an affordable rent, as 34 defined in Sections 50052.5 and 50053 of the Health and Safety 35 Code, for a minimum of 55 years for rental housing and 45 years 36 for ownership housing. 37 (iii) Before disposition of the surplus land, the agency adopts 38 written findings that the land is exempt surplus land pursuant to 39 this subparagraph. 97 147 —9— AB 480 1 (iv) Before disposition of the surplus land, the recipient has 2 negotiated a project labor agreement consistent with the-local 3 agency's project stabilization agreement resolution,as adopted on 4 February 2, 2021, and any succeeding ordinance, resolution, or 5 policy,regardless of the length of the agreement between the local 6 agency and the recipient. 7 (v) The agency includes in the annual report required by 8 paragraph (2) of subdivision (a) of Section 65400 the status of 9 development of residential units on the former military base, 10 including the total number of residential units that have been 11 permitted and what percentage of those residential units are 12 restricted for persons and families of low or moderate income, as 13 defined in Section 50093 of the Health and Safety Code, or lower 14 income households, as defined in Section 50079.5 of the Health 15 and Safety Code. 16 A violation of this subparagraph is subject to the penalties 17 described in Section 54230.5. Those penalties are in addition to 18 any remedy a court may order for violation of this subparagraph 19 or the settlement agreement. 20 (K) Real property that is used by a district for agency's use 21 expressly authorized in subdivision (c). 22 (L) Land that has been transferred before June 30, 2019,by the 23 state to a local agency pursuant to Section 32667 of the Streets 24 and Highways Code and has a minimum planned residential density 25 of at least 100 dwelling units per acre, and includes 100 or more 26 residential units that are restricted to persons and families of low 27 or moderate income,with an affordable sales price or an affordable 28 rent, as defined in Sections 50052.5 and 50053 of the Health and 29 Safety Code,for a minimum of 55 years for rental housing and 45 30 years for ownership housing. For purposes of this paragraph, not 31 more than 20 percent of the affordable units may be restricted to 32 persons and families of moderate income and at least 80 percent 33 of the affordable units must be restricted to lower income 34 households as defined in Section 50079.5 of the Health and Safety 35 Code. 36 (M) Land that is owned by a California public-use airport on 37 which residential use is prohibited pursuant to Federal Aviation 38 Administration Order 5190.6B, Airport Compliance Program, 39 Chapter 20—Compatible Land Use and Airspace Protection. 97 148 AB 480 —10— 1 (2) Notwithstanding paragraph (1), a written notice of the 2 availability of surplus land for open-space purposes shall be sent 3 to the entities described in subdivision(b)of Section 54222 before 4 disposing of the surplus land,provided the land does not meet the 5 criteria in subparagraph (H) of paragraph(1), if the land is any of 6 the following: 7 (A) Within a coastal zone. 8 (B) Adjacent to a historical unit of the State Parks System. 9 (C) Listed on, or determined by the State Office of Historic 10 Preservation to be eligible for, the National Register of Historic 11 Places. 12 (D) Within the Lake Tahoe region as defined in Section 66905.5. 13 SEC. 2. Section 54221.5 is added to the Government Code,to 14 read: 15 54221.5. (a) Before taking any action to dispose of land, a 16 local agency shall declare that the land is either"surplus land" or 17 "exempt surplus land"as specified in this section.The declaration 18 shall be supported by written findings before the local agency may 19 dispose of the land in a manner that is consistent with this section 20 and the local agency's policies. 21 (b) Except as provided in subdivision (c), a local agency shall 22 take formal action at a regular public meeting to declare that land 23 is either"surplus land" or"exempt surplus land." 24 (c) Notwithstanding subdivision(b),a local agency may declare 25 administratively that land is not required to make a declaration at 26 a public meeting for land that is "exempt surplus land" pursuant 27 to subparagraphs (A), (B), (E), (H),-er(I)(I), or(M) of paragraph 28 (1) of subdivision (f) of Section 54221 if the declaration and 29 findings arc local agency identifies the land in a notice that is 30 published and available for public comment, including notice to 31 the entities identified in subdivision (a) of Section 54222, at least 32 30 days before the declaration exemption takes effect. 33 (d) Notwithstanding Section 54222.3,30 days before disposing 34 of land declared"exempt surplus land,"a local agency shall provide 35 the Department of Housing and Community Development a written 36 notification of its declaration and findings in a form and manner 37 prescribed by the department. 38 (e) A local agency may, on an annual basis, declare multiple 39 parcels as "surplus land" or"exempt surplus land." 97 149 -11— AB 480 1 SEC. 3. Section 54222 of the Government Code is amended 2 to read: 3 54222. Except as provided in Division 23 (commencing with 4 Section 33000) of the Public Resources Code, any local agency 5 disposing of surplus land, declared pursuant to subdivision (b) of 6 Section 54221.5, shall send, before disposing of that property or 7 participating in negotiations to dispose of that property with a 8 prospective transferee, a written notice of availability of the 9 property to all of the following: 10 (a) (1) A written notice of availability for developing low-and 11 moderate-income housing,in a form prescribed by the Department 12 of Housing and Community Development, shall be sent to any 13 local public entity, as defined in Section 50079 of the Health and 14 Safety Code,that has jurisdiction where the surplus land is located. 15 Housing sponsors, as defined by Section 50074 of the Health and 16 Safety Code, that have notified the Department of Housing and 17 Community Development of their interest in surplus land shall be 18 sent a notice of availability for the purpose of developing low-and 19 moderate-income housing.All notices shall be sent by electronic 20 mail, or by certified mail, and shall include the location and a 21 description of the property. 22 (2) The Department of Housing and Community Development 23 shall maintain on its internet website an up-to-date listing of, and 24 a link to,all notices of availability throughout the state and a listing 25 of all entities, including housing sponsors, that have notified the 26 department of their interest in surplus land for the purpose of 27 developing low- and moderate-income housing. 28 (b) A written notice of availability for open-space purposes shall 29 be sent: 30 (1) To any park or recreation department of any city within 31 which the surplus land is located. 32 (2) To any park or recreation department of the county within 33 which the surplus land is located. 34 (3) To any regional park authority having jurisdiction within 35 the area in which the surplus land is located.. 36 (4) To the State Resources Agency or any agency that may 37 succeed to its powers. 38 (c) A written notice of availability of land suitable for school 39 facilities construction or use by a school district for open-space 97 150 AB 480 —12— 1 purposes shall be sent to any school district that has jurisdiction 2 where the surplus land is located. 3 (d) A written notice of availability for developing property 4 located within an infill opportunity zone designated pursuant to 5 Section 65088.4 or within an area covered by a transit village plan 6 adopted pursuant to the Transit Village Development Planning 7 Act of 1994 (Article 8.5 (commencing with Section 65460) of 8 Chapter 3 of Division 1 of Title 7) shall be sent to any county, 9 city,city and county, successor agency to a former redevelopment 10 agency, public transportation agency, or housing authority within 11 whose jurisdiction the surplus land is located. 12 (e) The entity desiring to purchase or lease the surplus land for 13 any of the purposes authorized by this section shall notify in writing 14 the disposing agency of its interest in purchasing or leasing the 15 land within 60 days after the agency's notice of availability is sent 16 via certified mail or provided via electronic mail. 17 (f) For the purposes of this section, "participating in 18 negotiations" does not include the commissioning of appraisals, 19 due diligence prior to disposition,discussions with brokers or real 20 estate agents not representing a potential buyer, or other studies 21 to determine value or best use of land, issuance of a request for 22 qualifications,development of marketing materials,or discussions 23 conducted exclusively among local agency employees and elected 24 officials. 25 SEC.4. Section 54222.5 of the Government Code is amended 26 to read: 27 54222.5. An entity proposing to use the surplus land for 28 developing low-and moderate-income housing shall agree to make 29 available not less than 25 percent of the total number of units 30 developed on the parcels at affordable housing cost, as defined in 31 Section 50052.5 of the Health and Safety Code,or affordable rent, 32 as defined in Section 50053 of the Health and Safety Code, to 33 lower income households, as defined in Section 50079.5 of the 34 Health and Safety Code. Rental units shall remain affordable to, 35 and occupied by, lower income households for a period of at least 36 55 years.The initial occupants of all ownership units shall be lower 37 income households, and the units shall be subject to an equity 38 sharing agreement consistent with paragraph (2) of subdivision 39 (c) of Section 65915. These requirements shall be contained in a 40 covenant or restriction recorded against the surplus land at the time 97 151 -13— AB 480 1 of sale,that shall run with the land and shall be enforceable,against 2 any owner who violates a covenant or restriction and each 3 successor in interest who continues the violation, by any of the 4 following: 5 (a) The local agency that disposed of the surplus land. 6 (b) A resident of a unit subject to this section. 7 (c) A residents' association with members who reside in units 8 subject to this section. 9 (d) A former resident of a unit subject to this section who last 10 resided in that unit. 11 (e) An applicant seeking to enforce the covenants or restrictions 12 for a particular unit that is subject to this section, if the applicant 13 conforms to all of the following: 14 (1) Is of low or moderate income,pursuant to Section 50093 of 15 the Health and Safety Code. • 16 (2) Is able and willing to occupy that particular unit. 17 (3) Was denied occupancy of that particular unit due to an 18 alleged breach of a covenant or restriction implementing this 19 section. 20 (f) A person on an affordable housing waiting list who is of low 21 or moderate income,pursuant to Section 50093 of the Health and 22 Safety Code, and who is able and willing to occupy a unit subject 23 to this section. 24 SEC. 5. Section 54223 of the Government Code is amended 25 to read: 26 54223. (a) After the disposing agency has received a notice 27 of interest from the entity desiring to purchase or lease the surplus 28 land on terms that comply with this article, the disposing agency 29 and the entity shall enter into good faith negotiations to determine 30 a mutually satisfactory sales price and terms or lease terms. If the 31 price or terms cannot be agreed upon after a good faith negotiation 32 period of not less than 90 days, the local agency may dispose of 33 the surplus land without further regard to this article, except that 34 Section 54233 shall apply. 35 (b) Residential use shall be deemed an acceptable use for the 36 surplus land for the purposes of good faith negotiations with a 37 local agency conducted pursuant to this article. Nothing in this 38 subdivision shall restrict a local jurisdiction's authority or 39 discretion to approve land use,zoning, or entitlement decisions in 40 connection with the surplus land.Except as provided in subdivision 97 152 AB 480 —14— 1 (c), terms agreed to pursuant to the negotiations shall not do any 2 of the following: 3 (1) Disallow residential use of the site as a condition of the 4 disposal. 5 (2) Reduce the allowable number of residential units or the 6 maximum lot coverage below what may be allowed by zoning or 7 general plan requirements. 8 (3) Require as a condition of disposal, any design standards or • 9 architectural requirements that would have a substantial adverse 10 effect on the viability or affordability of a housing development 11 for very low,low-,or moderate-income households,other than the 12 minimum standards required by general plan, zoning, and 13 subdivision standards and criteria. 14 (c) Terms agreed to pursuant to the negotiations required by 15 subdivision(a)may include limitations on residential use or density 16 if, without the limitations, the residential use or density would 17 have a specific, adverse impact, supported by written findings, 18 upon the public health or safety or upon the operation or facilities 19 of a local agency, and there is no feasible method to satisfactorily 20 mitigate the impact. 21 SEC. 6. Section 54224 of the Government Code is amended 22 to read: 23 54224. Nothing in this article shall preclude a local agency 24 that purchases surplus land from a disposing agency pursuant to 25 this article from reconveying the surplus land to a nonprofit or 26 for-profit housing developer for development of low- and 27 moderate-income housing as authorized under other provisions of 28 law. 29 SEC. 7. Section 54225 of the Government Code is amended 30 to read: 31 54225. Any local agency disposing of surplus land to an entity 32 described in Section 54222 that intends to use the land for park or 33 recreation purposes,for open-space purposes,for school purposes, 34 or for low- and moderate-income housing purposes may provide 35 for a payment period of up to 20 years in any contract of sale or 36 sale by trust deed for the land. The payment period for surplus 37 land disposed of for housing for persons and families of low and 38 moderate income may exceed 20 years, but the payment period 39 shall not exceed the term that the land is required to be used for 40 low- or moderate-income housing. 97 153 -15— AB 480 1 SEC. 8. Section 54227 of the Government Code is amended 2 to read: 3 54227. (a) In the event that any local agency disposing of 4 surplus land receives a notice of interest to purchase or lease that 5 land from more than one of the entities to which notice of 6 availability was given pursuant to this article, the local agency 7 shall give first priority to the entity or entities that agree to use the 8 site for housing that meets the requirements of Section 54222.5. 9 If the local agency receives offers from more than one entity that 10 agrees to meet the requirements of Section 54222.5,then the local 11 agency shall give priority to the entity that proposes to provide the 12 greatest number of units that meet the requirements of Section 13 54222.5.In the event that more than one entity proposes the same 14 number of units that meet the requirements of Section 54222.5, 15 priority shall be given to the entity that proposes the deepest 16 average level of affordability for the affordable units. A local 17 agency may negotiate concurrently with all entities that provide 18 notice of interest for the purpose of developing low- and 19 moderate-income housing that meets the requirements of Section 20 54222.5. 21 (b) Notwithstanding subdivision(a),first priority shall be given 22 to an entity that agrees to use the site for park or recreational 23 purposes if the land being offered is already being used and will 24 continue to be used for park or recreational purposes,or if the land 25 is designated for park and recreational use in the local general plan • 26 and will be developed for that purpose. 27 SEC. 9. Section 54230.5 of the Government Code is amended 28 to read: 29 54230.5. (a) (1) A local agency that disposes of surplus land 30 in violation of this article after receiving a notification from the 31 Department of Housing and Community Development pursuant 32 to subdivision(b)that the local agency is in violation of this article 33 shall be liable for a penalty of 30 percent of the greater of the final 34 sale price, or of the fair market value of the surplus land at the 35 time of disposition, as determined by an independent appraisal, 36 appraisal of the surplus land sold in violation of this article for a 37 first—violation violation, and 50 percent of the greater of the two 38 sums,for any subsequent violation.An entity identified in Section 39 54222 or a person who would have been eligible to apply for 40 residency in any affordable housing developed or a housing 97 154 AB 480 —16— 1 organization as defined in Section 65589.5, or any beneficially 2 interested person or entity may bring an action to enforce this 3 section. A local agency shall have 60 days to cure or correct an 4 alleged violation before an action may be brought to enforce this 5 section,unless the local agency disposes of the surplus land before 6 curing or correcting the alleged violation,or the department deems 7 the alleged violation not to be a violation in less than 60 days. 8 (2) A penalty assessed pursuant to this subdivision shall,except . 9 as otherwise provided,be deposited into a local housing trust fund. 10 The local agency may elect to instead deposit the penalty moneys 11 into the Building Homes and Jobs Trust Fund or the Housing 12 Rehabilitation Loan Fund.Penalties shall not be paid out of funds 13 already dedicated to affordable housing,including,but not limited 14 to, Low and Moderate Income Housing Asset Funds, funds 15 dedicated to housing for very low, low-, and moderate-income 16 households, and federal HOME Investment Partnerships Program 17 and Community Development Block Grant Program funds. The 18 local agency shall commit and expend the penalty moneys 19 deposited into the local housing trust fund within five years of 20 deposit for the sole purpose of financing newly constructed housing 21 units that are affordable to extremely low,very low,or low-income 22 households. 23 (3) Five years after deposit of the penalty moneys into the local 24 housing trust fund,if the funds have not been expended,the funds 25 shall revert to the state and be deposited in the Building Homes 26 and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for 27 the sole purpose of financing newly constructed housing units 28 located in the same jurisdiction as the surplus land and that are 29 affordable to extremely low,very low,or low-income households. 30 Expenditure of any penalty moneys deposited into the Building 31 Homes and Jobs Trust Fund or the Housing Rehabilitation Loan 32 Fund pursuant to this subdivision shall be subject to appropriation 33 by the Legislature. 34 (b) (1) Before agreeing to terms for the disposition of surplus 35 land, a local agency shall provide to the Department of Housing 36 and Community Development a description of the notices of 37 availability sent, and negotiations conducted with any responding 38 entities,in regard to the disposal of the parcel of surplus land and 39 a copy of any restrictions to be recorded against the property 40 pursuant to -Section 54222.5, 54233, or 54233.5, whichever is 97 155 —.17— AB 480 1 applicable, in a form prescribed by the Department of Housing 2 and Community Development. A local agency may submit this 3 information after it has sent notices of availability required by • 4 Section 54222 and concluded negotiations with any responding 5 agencies.A local agency shall not be liable for the penalty imposed 6 by subdivision (a) if the Department of Housing and Community 7 Development does not notify the agency that the agency is in 8 violation of this article within 30 days of receiving the description. 9 (2) The Department of Housing and Community Development 10 shall do all of the following: 11 (A) Make available educational resources and materials that 12 inform each agency of its obligations under this article and that 13 provide guidance on how to comply with its provisions. 14 (B) Review information submitted pursuant to paragraph (1). 15 (C) Submit written findings to the local agency within 30 days 16 of receipt of the description required by paragraph (1) from the 17 local agency if the proposed disposal of the land will violate this 18 article. 19 (D) Review, adopt, amend, or repeal guidelines to establish 20 uniform standards to implement this section. The guidelines 21 adopted pursuant to this subdivision are not subject to Chapter 3.5 22 (commencing with Section 11340) of Part 1 of Division 3 of Title 23 2. 24 (E) Provide the local agency reasonable time, but not less than 25 60 days, to respond to the findings before taking any other action 26 authorized by this section. 27 (3) (A) The local agency shall consider findings made by the 28 Department of Housing and Community Development pursuant 29 to subparagraph (C) of paragraph (2) and shall do one of the 30 following: 31 (i) Correct any issues identified by the Department of Housing 32 and Community Development. 33 (ii) Provide written findings explaining the reason its process 34 for disposing of surplus land complies with this article and 35 addressing the Department of Housing and Community 36 Development's findings. 37 (B) If the local agency does not correct issues identified by the 38 Department of Housing and Community Development, does not 39 provide findings explaining the reason its process for disposing of 40 surplus land complies with this article and addressing the 97 156 AB 480 —18— 1 Department of Housing and Community Development's findings, 2 or if the Department of Housing and Community Development 3 finds that the local agency's findings are deficient in addressing 4 the issues identified by the Department of Housing and Community 5 Development, the Department of Housing and Community 6 Development shall notify the local agency, and may notify the 7 Attorney General,that the local agency is in violation of this article. 8 (c) The Department of Housing and Community Development 9 shall implement the changes in this section made by the act adding 10 this subdivision commencing on January 1, 2021. 11 (d) Notwithstanding subdivision (c), this section shall not be 12 construed to limit any other remedies authorized under law to 13 enforce this article including public records act requests pursuant 14 to Division 10 (commencing with Section 7920.000) of Title 1. 15 SEC. 10. If the Commission on State Mandates determines 16 that this act contains costs mandated by the state, reimbursement 17 to local agencies and school districts for those costs shall be made 18 pursuant to Part 7 (commencing with Section 17500) of Division 19 4 of Title 2 of the Government Code. 0 97 157 CITY OF HUNTINGTON BEACH o #Q 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 --coUNTV0;;" TONY STRICKLAND MAYOR May 2, 2023 The Honorable Philip Ting State Capitol, Ste. 8230 Sacramento, CA 95814 Dear Assembly Member Ting: The City of Huntington Beach regrets that it must OPPOSE Assembly Bill 480. This bill undermines the ability of local agencies to conduct appropriate economic development activities on properties they acquire or otherwise own. It would also expand the scope of authority for the Department of Housing and Community Development (HCD) to review"any action to dispose of land," which would include properties retained for agency use, properties declared "exempt • surplus," and properties that local agencies are authorized by other laws to acquire and dispose of for economic development purposes. The implementation of the Surplus Lands Act (SLA), including HCD's recent guidelines, have created immense delays and difficulties for local government agencies dealing with the control and disposal of their local properties. Regrettably, AB 480 would compound those difficulties by expanding state reviews and delays affecting properties retained for agency use and declared exempt surplus. Rather than expanding the scope of the SLA, we should seek significant reform. The Legislature should thoroughly evaluate the difficulties, bureaucratic delays and unintended consequences caused by implementation of the existing law on local agency activities, including addressing unresolved conflicts with other laws and state policy priorities the Legislature has enacted that affect the disposal of local agency property. For these reasons, the City of Huntington Beach regrets that it must respectfully Oppose AB 480. Please feel free to contact me at (714) 536-5553, or Tony.Strickland@surfcity-hb.org whenever needed. Sincerely, Tony Strickland Mayor Cc: Cecilia Aguiar Curry, Chair, Assembly Local Government Committee Buffy Wicks, Chair, Assembly Committee on Housing and Community Development Members, Assembly Committee on Local Government Members, Assembly Committee on Housing and Local Government Gurbax Sahota, Chief Executive Officer, CALED Fax 714.536.5233 Page 1 of 1 Office:714.536.5553 158 AMENDED IN SENATE APRIL 13, 2023 AMENDED IN SENATE MARCH 22, 2023 SENATE BILL No. 747 Introduced by Senator Caballero February 17, 2023 An act to amend Sections 52200, 52200.6, 52201, 54221, 54222, 54226, 54230, 54230.5, and 54234 of the Government Code, relating to local government. LEGISLATIVE COUNSEL'S DIGEST SB 747, as amended, Caballero. Land use: economic development: surplus land. (1) Existing law authorizes a city, county, or city and county, with the approval of its legislative body by resolution after a public hearing, to acquire, sell, or lease property in furtherance of the creation of an economic opportunity, as defined. Existing law specifies the Legislature's intent regarding those provisions. This bill would authorize a city,county,or city and county,in addition to a sale or lease, to otherwise transfer property to create an economic opportunity. The bill would make related, conforming changes. The bill would additionally state the Legislature's intent is to ensure that residents of the state have access to jobs that allow them to afford housing without the need for public subsidies. Existing law provides that the creation of an economic opportunity under that law is subject to certain notice and disclosure provisions. These provisions require each local agency, before approving an economic development subsidy within its jurisdiction, to provide specified information in written form to the public, and through its internet website, if available, about the business entities that are the 97 159 SB 747 —2— beneficiary of the economic development subsidy, the start and end dates and schedule of the subsidy,other related information,and to hold public hearings and report on those subsidies at specified intervals. This bill would subject the creation of an economic opportunity under the above-described provisions to only the above-described requirements regarding providing information to the public on that economic opportunity. The bill would specify that these provisions are an alternative to any other authority or procedures for cities and counties to acquire, sell, lease, or otherwise transfer real property owned by a city or county. (2) Existing law prescribes requirements for the disposal of surplus land by a local agency. Existing law defines "surplus land" for those purposes to generally mean land owned in fee simple by a local agency for which the local agency's governing body takes formal action in a public meeting declaring that the land is surplus and not necessary for the agency's use. Existing law provides that these requirements do not apply to the disposal of exempt surplus land by an agency of the state or any local government.Existing law requires a local agency to declare land as either surplus land or exempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it. Under existing law, exempt surplus land includes, among other types of land, property that is used by a district for an "agency's use" as expressly authorized, land for specified developments, including a mixed-use development, if put out to open, competitive bid by a local agency, as specified, and surplus land that is subject to specified valid legal restrictions. This bill would define the term"dispose"for these purposes to mean the sale of the surplus property or a lease of any surplus property entered into on or after January 1, 2024, for a term longer than 35 years, including renewal options, as specified. The bill would also redefine the term "agency's use" to include use for transit or transit-oriented development,property owned by a port that is used to support logistics uses,airports,state tidelands,sites for broadband equipment or wireless facilities, and waste disposal sites. The bill would define a district relative to an"agency's use"to include infrastructure financing districts, enhanced infrastructure financing districts, community revitalization and investment authorities,affordable housing authorities,transit village development districts, and climate resilience districts. This bill would revise and recast certain of the provisions related to exempt surplus land, including surplus land that is not contiguous to 97 160 —3— SB 747 land owned by a state or local agency, that is used for open space or low- and moderate- income housing purposes and meets specified conditions, surplus land that is a former parking lot that is conveyed to an owner of an adjacent property, and provisions related to mixed-use developments, among others. The bill would also specify that certain legal restrictions are valid legal restrictions and would require that for surplus land that is subject to valid legal restrictions to be considered exempt surplus land, the valid restrictions must be included as part of the local agency's above-described written findings. The bill would also include as exempt surplus land, land that is jointly developed or used for a joint development, land that was purchased using federal funds, land transferred to a community land trust, as specified, and additional categories of land determined by the department, including sites that are not suitable for housing. This bill would authorize a local agency to administratively declare that land is exempt surplus land, if the declaration and findings are posted on the local agency's internet website, published and available for public comment, including giving notice to specified entities, at least 30 days before the declarations take effect. The bill would make the local agency's declaration presumed conclusive,except as specified. The bill would specify that the law governing surplus land does not require a local agency to dispose of land that is determined to be surplus. The bill would specify that the requirements for the disposal of surplus land by a local agency do not apply to properties that a local agency proposes to sell,lease, or otherwise transfer under the above-described economic opportunity provisions. Existing law generally requires a local agency disposing of surplus land to send a written notice of availability of the property to specified entities prior to disposing of that property or participating in negotiations to dispose of that property with a prospective transferee. This bill would create an exception from that notice requirement if the prospective transferee is an affordable housing developer proposing to develop an affordable housing project on the site which that will meet or exceed a 25% affordability threshold, as described. Under existing law, a local agency that disposes of surplus land after receiving a notification from the Department of Housing and Community Development that the agency is in violation of the law is liable for 30% • of the final sale price of the land.Existing law authorizes certain entities and interested persons to bring an action to enforce these provisions. Existing law grants a local agency 60 days to cure or correct an alleged 97 161 SB 747 —4— violation before an action may be brought to enforce this provision, except as specified. This bill would require a local agency, upon receiving a notice of a violation from the department,to consider the matter at a public meeting within 30 days if the local agency proceeds with the disposal. The bill would specify that following the public hearing, the local agency has 60 days to cure or correct an alleged violation before an action may be brought to enforce this provision. Existing law further requires the department to review,adopt,amend, or repeal guidelines to establish uniform standards to implement this provision and specifies that those guidelines are not subject to the Administrative Procedure Act. This bill would additionally require the department to solicit public comments for 30 days and consider and respond in writing to the public comments prior to adopting,amending,or repealing the guidelines.The bill would additionally require the department to provide the local agency an appeals process to overturn an adverse action by the department affecting the local agency overseen by an independent trier of fact. Existing law provides that certain dispositions of real property by local agencies are subject to surplus land disposal procedures as they existed on December 31, 2019, if those dispositions are pursuant to specified legal agreements and the disposition is completed by December 31,2022,or by December 31,2024,if the property is located in a charter city with a population of over 2,000,000 persons and a local agency has an option agreement duly authorized by the governing body to purchase the property from a former redevelopment agency. This bill would expand the applicability of those disposition procedures to December 31, 2025, as to property located in a city or county that entered into a legally binding agreement to dispose of the property prior to September 30, 2019, and the transferee has exercised one or more unilateral extension options which were a component of the original agreement. With respect to land held in the Community Redevelopment Property Trust Fund or designated in a long-range property management plan either for.sale or retained for future development,existing law provides that certain dispositions of real property by local agencies are subject to surplus land disposal procedures as they existed on December 31, 2019, if those dispositions are pursuant to specified legal agreements entered into not later than December 31, 2020, and the disposition is 97 162 -5— SB 747 completed by December 31, 2022, or by December 31, 2024, if the property is located in a charter city with a population of over 2,000,000 persons and a local agency has an option agreement authorized by the local agency's governing body to purchase the property from the former redevelopment agency. This bill would expand the applicability of those disposition procedures for which an agreement has been entered into by December 31, 2020, if the disposition is completed by December 31, 2025, and the property is located in a city or county that entered into a legally binding agreement to dispose of the property before September 30, 2019,and the transferee has exercised one or more unilateral extension options which were a component of the original agreement. By imposing new duties on local agencies, the 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory • provisions noted above. 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 52200 of the Government Code is 2 amended to read: 3 52200. It is the intent of the Legislature to do all of the 4 following: 5 (a) Promote economic development on a local level so that 6 communities can enact local strategies to increase jobs, create 7 economic opportunity, and generate tax revenue for all levels of 8 government. 9 (b) Give local governments tools, at no cost,to the state, that 10 allow local governments to use their funds in a manner that 11 promotes economic opportunity. 12 (c) With the loss of redevelopment funds, cities, counties, and 13 cities and counties need to continue certain powers afforded to 14 redevelopment agencies that were critical to economic 97 163 SB 747 —6- 1 development, yet do not have an impact on schools and the state 2 budget. 3 (d) Ensure that residents of the state have access to jobs that 4 allow them to afford housing without the need for public subsidies. 5 SEC. 2. Section 52200.6 of the Government Code is amended 6 to read: 7 52200.6. (a) (1) This part shall not be interpreted to authorize 8 the use of eminent domain for economic development purposes. 9 (2) •For the purposes of this part, a city, county, or city and 10 county shall not sell, lease, or otherwise transfer, at a price that is 11 less than the fair market value,any real property that was acquired 12 through eminent domain.This prohibition shall not apply to either 13 of the following: 14 (A) Any real property governed by a long-range property 15 management plan pursuant to,Section 34191.5 of the Health and 16 Safety Code. 17 (B) Any housing asset transferred to a city, county, or city and 18 county pursuant to paragraph (1) of subdivision (a) of Section 19 34176 of the Health and Safety Code or subdivision(c)of Section 20 34181 of the Health and Safety Code,provided that the successor 21 agency or the designated local authority in the affected jurisdiction 22 has received a finding of completion from the Department of 23 Finance pursuant to Section 34179.7 of the Health and Safety 24 Code. 25 (b) The creation of an economic opportunity pursuant to this. 26 part shall be subject only to the provisions of Section 53083. 27 (c) The provisions of this part are an alternative to any other 28 authority granted to, or procedures required by law for, cities or 29 counties to acquire,sell,lease,or otherwise transfer property owned 30 by a city or county. 31 SEC. 3. Section 52201 of the Government Code is amended 32 to read: 33 52201. (a) (1) A city,county, or city and county may acquire 34 property in furtherance of the creation of an economic opportunity. 35 A city, county, or city and county may sell, lease, or otherwise 36 transfer property to create an economic opportunity. The 37 acquisition, sale, lease, or transfer shall first be approved by the 38 legislative body by resolution after a public hearing.Notice of the 39 time and place of the hearing shall be published in a newspaper 40 of general circulation in the community at least once per week for 97 164 • —7— SB 747 1 at least two successive weeks, as specified in Section 6066, prior 2 to the hearing. 3 (2) The city, county, or city and county shall make available, 4 for public inspection and copying at a cost not to exceed the cost 5 of duplication, a report no later than the time of publication of the 6 first notice of the hearing mandated by this section. This report 7 shall contain both of the following: 8 (A) A copy of the proposed acquisition, sale, lease, or transfer. 9 (B) A summary that describes and specifies all of the following: 10 (i) The cost of the agreement to the city, county, or city and 11 county,including land acquisition costs,clearance costs,relocation 12 costs, the costs of any improvements to be provided by the city, 13 county, or city and county,plus the expected interest on any loans 14 or bonds to finance the agreements. 15 (ii) For the sale, lease, or transfer of property, the estimated 16 value of the interest to be conveyed or leased, determined at the 17 highest and best uses permitted under the general plan or zoning. 18 (iii) For the sale, lease, or transfer of property, the estimated 19 value of the interest to be conveyed or leased, determined at the 20 use and with the conditions, covenants, and development costs 21 required by the sale, lease, or transfer. The purchase price or 22 present value of the lease payments which the lessor will be 23 required to make during the term of the lease. If the sale price or 24 total rental amount is less than the fair market value of the interest 25 to be conveyed or leased, determined at the highest and best use, 26 then the city, county, or city and county shall provide as part of 27 the summary an explanation of the reasons for the difference. 28 (iv) An explanation of why the acquisition, sale, lease, or 29 transfer of the property will assist in the creation of economic 30 opportunity, with reference to all supporting facts and materials 31 relied upon in making this explanation. 32 (b) The resolution approving the acquisition, sale, lease, or 33 transfer shall be adopted by a majority vote unless the legislative 34 body has provided by ordinance for a two-thirds vote for that 35 purpose and shall contain a finding that the acquisition,sale,lease, 36 or transfer of the property will assist in the creation of economic 37 opportunity. For the sale, lease, or transfer of property, the 38 resolution shall also contain one of the following findings: 39 (1) The consideration is not less than the fair market value at 40 its highest and best use. 97 165 SB 747 —8- 1 (2) The consideration is not less than the fair reuse value at the 2 use and with the covenants and conditions and development costs 3 authorized by the sale,lease, or transfer. 4 (c) The provisions of this section are an alternative to any other 5 procedures required by law or authority granted by law to a city, 6 county, or city and county, to sell, lease, or otherwise transfer 7 property owned by a city, county, or city and county. 8 SEC. 4. Section 54221 of the Government Code is amended 9 to read: 10 54221. As used in this article, the following definitions shall 11 apply: 12 (a) (1) "Local agency" means every city, whether organized . 13 under general law or by charter, county, city and county, district, 14 including school, sewer,water,utility, and local and regional park 15 districts of any kind or class, joint powers authority, successor 16 agency to a former redevelopment agency, housing authority, or 17 other political subdivision of this state and any instrumentality 18 thereof that is empowered to acquire and hold real property. 19 (2) The Legislature finds and declares that the term "district" 20 as used in this article includes all districts within the state, 21 including, but not limited to, all special districts, sewer, water, 22 utility,and local and regional park districts,and any other political 23 subdivision of this state that is a district,and therefore the changes 24 in paragraph(1)made by the act adding this paragraph that specify 25 that the provisions of this article apply to all districts, including 26 school, sewer, water, utility, and local and regional park districts 27 of any kind or class, are declaratory of, and not a change in, 28 existing law. 29 (b) (1) "Surplus land"means land owned in fee simple by any 30 local agency for which the local agency's governing body takes 31 formal action in a regular public meeting declaring that the land 32 is surplus and is not necessary for the agency's use. Land shall be 33 declared either "surplus land" or "exempt surplus land," as 34 supported by written findings,before a local agency may take any 35 action to dispose of it consistent with an agency's policies or 36 procedures. A local agency, on an annual basis, may declare 37 multiple parcels as "surplus land" or "exempt surplus land." A 38 local agency may administratively declare that lands as"exempt 39 surplus land" pursuant to subdivision (e) if the declaration and 40 findings are posted on the local agency's internet website or 97 166 -9— SB 747 1 published and available for public comment, and notice to the 2 entities identified in subdivision (a) of Section 54222 occurs, at 3 least 30 days before the declaration takes effect.A local agency's • 4 declaration, determination, and written findings pursuant to this 5 paragraph section shall be presumed conclusive, unless a 6 prejudicial abuse of discretion is clearly established. 7 (2) "Surplus land" includes land held in the Community 8 Redevelopment Property Trust Fund pursuant to Section 34191.4 9 of the Health and Safety Code and land that has been designated 10 in the long-range property management plan approved by the 11 Department of Finance pursuant to Section 34191.5 of the Health 12 and Safety Code, either for sale or for future development, but 13 does not include any specific disposal of land to an identified entity 14 described in the plan. 15 (c) (1) Except as provided in paragraph (2), "agency's use" 16 shall include, but not be limited to, land that is being used, is 17 planned to be used pursuant to a written plan adopted by the local 18 agency's governing board for, or is disposed to support pursuant 19 to subparagraph (B) of paragraph (2) agency work or operations, 20 including,but not limited to,utility sites,parcels used or planned 21 to be used for transit or transit-oriented development, property 22 owned by a port that is used to support logistics uses, airports, 23 ' state tidelands, watershed property, land being used for 24 conservation purposes, land for demonstration, exhibition, or 25 educational purposes related to greenhouse gas emissions, sites 26 for broadband equipment or wireless facilities, and buffer sites 27 near sensitive governmental uses, including, but not limited to, 28 waste disposal sites, and waste water treatment plants. 29 (2) (A) "Agency's use" shall not include commercial or 30 industrial uses or activities, including nongovernmental retail, 31 entertainment,or office development.Property disposed of for the 32 sole purpose of investment or generation of revenue shall not be 33 considered necessary for the agency's use. 34 (B) In the case of a local agency that is a district,including,but 35 not limited to, those described in clause (iii), "agency's use"may 36 include commercial or industrial uses or activities, including 37 nongovernmental retail, entertainment, or office development or 38 be for the sole purpose of investment or generation of revenue if 39 the agency's governing body takes action in a public meeting 40 declaring that the use of the site will do one of the following: 97 167 SB 747 —10— 1 (i) Directly further the express purpose of agency work or 2 operations. 3 (ii) Be expressly authorized by a statute governing the local 4 agency,provided the district complies with Section 54233.5 where 5 applicable. 6 (iii) For the purposes of this subparagraph, a district includes, 7 but is not limited to, any of the following: 8 (I) A district, as referenced in paragraph (2) of subdivision(a). 9 (II) An infrastructure finance district established pursuant to 10 Chapter 2.8(commencing with Section 53395)of Part 1 of Division 11 2 of Title 5. 12 (III) An enhanced infrastructure financing district established 13 pursuant to Chapter 2.99(commencing with Section 53398.50)of 14 Part 1 of Division 2 of Title 5. 15 (IV) A community revitalization and investment authority 16 established pursuant to Division 4 (commencing with Section 17 62000) of Title 6. 18 (V) An affordable housing authority established pursuant to 19 Division 5 (commencing with Section 62250) of Title 6. 20 (VI) A transit village development district established pursuant 21 to Article 8.5 (commencing with Section 65460) of Chapter 3 of 22 Division 1 of Title 7. 23 (VII) A climate resilience district established pursuant to 24 Division 6 (commencing with Section 62300) of Title 6. 25 (d) "Dispose"means either of the following: 26 (1) The sale of the surplus land. 27 (2) The entering of a lease-of for surplus land land, which is for 28 a term longer than 35 years, including renewal options included 29 in the terms of the initial lcasc. lease, entered into on or after 30 January 1, 2024. 31 (e) (1) Except as provided in paragraph (2), "exempt surplus 32 land" means any of the following: 33 (A) Surplus land that is transferred pursuant to Section 25539.4 34 or 37364. 35 (B) Surplus land that is not contiguous to land owned by a state 36 or local agency that is used for open space or low- and 37 moderate-income housing purposes and meets any of the following 38 conditions: 39 (i) Is less than 5,000 square feet in area. 97 • 168 -11— SB 747 1 (ii) Is less than the minimum legal residential building lot size 2 for the jurisdiction in which the parcel is located, or 5,000 square 3 feet in area, whichever is less. 4 (iii) Has no record access and is less than 10,000 square feet in 5 area. 6 (iv) Is sold or leased to an owner of contiguous land. 7 (C) Surplus land that a local agency is exchanging for another 8 property interest necessary for the agency's use. 9 (D) Surplus land that a local agency is transferring to another 10 local, state, or federal agency, or to a third-party intermediary for 11 future dedication for the receiving agency's use, or to a federally 12 recognized California Indian tribe. 13 (E) Surplus land that is a former street, right-of-way, parking 14 lot, or easement, and is conveyed to an owner of an adjacent 15 property. 16 (F) A housing development, which may have ancillary 17 commercial ground floor uses, that restricts 100 percent of the 18 residential units to persons and families of low or moderate income, 19 with at least 75 percent of the residential units restricted to lower 20 income households, as defined in Section 50079.5 of the Health 21 and Safety Code, with an affordable sales price or an affordable 22 rent, as defined in Sections 50052.5 or 50053 of the Health and 23 Safety Code,for a minimum of 55 years for rental housing and 45 24 years for ownership lousing, and in no event shall the maximum 25 affordable sales price or rent level be higher than 20 percent below 26 the median market rents or sales prices for the neighborhood in 27 which the site is located. 28 (G) A mixed-use development, which may include more than 29 one publicly owned parcel, that restricts at least 25 percent of the 30 residential units to lower income households,as defined in Section 31 50079.5 of the Health and Safety Code, with an affordable sales 32 price or an affordable rent, as defined in Sections 50052.5 and 33 50053 of the Health and Safety Code, for a minimum of 55 years 34 for rental housing and 45 years for ownership housing. 35 (H) Surplus land that is subject to valid legal restrictions that 36 are not imposed by the local agency and that would make housing 37 prohibited, unless there is a feasible method to satisfactorily 38 mitigate or avoid the prohibition on the site. 39 (i) Valid legal restrictions include, but are not limited to, all of 40 the following: 97 169 SB 747 —12— 1 (I) Existing constraints under ownership rights or contractual 2 obligations that prevent the use of the property for housing. 3 (II) Conservation or other easements or encumbrances that 4 prevent housing development. 5 (III) Existing leases, or other contractual obligations or 6 restrictions. 7 (IV) A requirement for voter approval to transfer the property. 8 (ii) Feasible methods to mitigate or avoid a valid legal restriction 9 on the site do not include a requirement that the local agency 10 acquire additional property rights or property interests belonging 11 to third parties. 12 (iii) An existing nonresidential land use designation on the 13 surplus land is not a legal restriction that would make housing 14 prohibited for purposes of this subparagraph. 15 (iv) Prior to disposition of the surplus land, the local agency 16 des shall include in its written findings adopted pursuant to 17 subdivision (b) the relevant legal restrictions as described in this 18 subparagraph. 19 (I) Surplus land that was granted by the state in trust to a local 20 agency or that was acquired by the local agency for trust purposes 21 by purchase or exchange, and for which disposal of the land is 22 authorized or required subject to conditions established by statute. 23 (J) Land that is subject to Sections 17388, 17515, 17536,81192, 24 81397, 81399, 81420, and 81422 of the Education Code and Part 25 14(commencing with Section 53570)of Division 31 of the Health 26 and Safety Code, unless compliance with this article is expressly 27 required. 28 (K) Surplus land that is a former military base that was conveyed 29 by the federal government to a local agency, and is subject to 30 Article 8 (commencing with Section 33492.125) of Chapter 4.5 31 of Part 1 of Division 24 of the Health and Safety Code, provided 32 that all of the following conditions are met: 33 (i) The former military base has an aggregate area greater than 34 five acres, is expected to include a mix of residential and 35 nonresidential uses,and is expected to include no fewer than 1,400 36 residential units upon completion of development or redevelopment 37 of the former military base. 38 (ii) The affordability requirements for residential units shall be 39 governed by a settlement agreement entered into prior to September 40 1, 2020. Furthermore, at least 25 percent of the initial 1,400 97 170 -13— SB 747 1 residential units developed shall be restricted to lower income 2 households,as defined in Section 50079.5 of the Health and Safety 3 Code, with an affordable sales price or an affordable rent, as 4 defined in Sections 50052.5 and 50053 of the Health and Safety 5 Code, for a minimum of 55 years for rental housing and 45 years 6 for ownership housing. 7 (iii) Prior to disposition of the surplus land, the agency adopts 8 written findings that the land is exempt surplus land pursuant to 9 this subparagraph. 10 (iv) Prior to the disposition of the surplus land,the recipient has 11 negotiated a project labor agreement consistent with the local 12 agency's project stabilization agreement resolution,as adopted on 13 February 2, 2021, and any succeeding ordinance, resolution, or 14 policy,regardless of the length of the agreement between the local 15 agency and the recipient. 16 (v) The agency includes in the annual report required by 17 paragraph (2) of subdivision (a) of Section 65400 the status of 18 development of residential units on the former military base, 19 including the total number of residential units that have been 20 permitted and what percentage of those residential units are 21 restricted for persons and families of low or moderate income, as 22 defined in Section 50093 of the Health and Safety Code, or lower 23 income households, as defined in Section 50079.5 of the Health 24 and Safety Code. 25 A violation of this subparagraph is subject to the penalties 26 described in Section 54230.5. Those penalties are in addition to 27 any remedy a court may order for violation of this subparagraph 28 or the settlement agreement. 29 (L) Real property that is used by a district for agency's use 30 expressly authorized in subdivision (c). 31 (M) Land that has been transferred before June 30,2019,by the 32 state to a local agency pursuant to Section 32667 of the Streets 33 and Highways Code and has a minimum planned residential density 34 of at least 100 dwelling units per acre, and includes 100 or more 35 residential units that are restricted to persons and families of low 36 or moderate income, as defined in Section 50093 of the Health 37 and Safety Code, with an affordable sales price or an affordable 38 rent, as defined in Sections 50052.5 and 50053 of the Health and 39 Safety Code,for a minimum of 55 years for rental housing and 45 40 years for ownership housing. For purposes of this subparagraph, 97 171 SB 747 —14— 1 not more than 20 percent of the affordable units may be restricted 2 to persons and families of moderate income and at least 80 percent 3 of the affordable units must be restricted to persons and families 4 of lower income as defined in Section 50079.5 of the Health and 5 Safety Code. 6 (N) Land that is jointly developed or used for a joint 7 development as authorized in Section 99420 of the Public Utilities 8 Code. 9 (0) Land that was purchased using federal funds and for which 10 a federal agency has authorized the use of the land for specific 11 purposes. 12 (P) Land that is transferred to a community land trust, and all 13 of the following conditions are met: 14 (i) The property is being or will be developed or rehabilitated 15 as any of the following: 16 (I) An owner-occupied single-family dwelling. 17 (II) An owner-occupied unit in a multifamily dwelling. 18 (III) A member-occupied unit in a limited equity housing 19 cooperative. 20 (IV) A rental housing development. 21 (ii) Improvements on the property are or will be available for 22 use and ownership or for rent by qualified persons, as defined in 23 paragraph(6) of subdivision(c) of Section 214.18 of the Revenue 24 and Taxation Code. 25 (iii) (I) A deed restriction or other instrument, requiring a 26 contract or contracts serving as an enforceable restriction on the 27 sale or resale value of owner-occupied units or on the affordability 28 of rental units is recorded on or before the lien date following the 29 acquisition of the property by the community land trust. 30 (II) For purposes of this clause,the following definitions apply: 31 (ia) "A contract or contracts serving as an enforceable restriction 32 on the sale or resale value of owner-occupied units" means a 33 contract described in paragraph(11) of subdivision(a) of Section 34 402.1 of the Revenue and Taxation Code. 35 (ib) "A contract or contracts serving as an enforceable restriction 36 on the affordability of rental units" means an enforceable and 37 verifiable agreement with a public agency, a recorded deed 38 restriction,or other legal document described in subparagraph(A) 39 of paragraph(2) of subdivision(g) of Section 214 of the Revenue 40 and Taxation Code. 97 172 -15— SB 747 1 (iv) A copy of the deed restriction or other instrument shall be 2 provided to the assessor. 3 (Q) Additional categories of exempt surplus land as determined 4 by the department, including, but not limited to, sites that are not 5 suitable for housing. 6 (2) Notwithstanding paragraph (1), a written notice of the 7 availability of surplus land for open-space purposes shall be sent 8 to the entities described in subdivision (b) of Section 54222 prior 9 to disposing of the surplus land, provided the land does not meet 10 the criteria in subparagraph(I) of paragraph (1), if the land is any 11 of the following: 12 (A) Within a coastal zone. 13 (B) Adjacent to a historical unit of the Statc Parks Systcm.state 14 parks system. 15 (C) Listed on, or determined by the State Office of Historic 16 Preservation to be eligible for, the National Register of Historic 17 Places. 18 (D) Within the Lake Tahoe region as defined in Section 66905.5. 19 (f) "Open-space purposes" means the use of land for public 20 recreation, enjoyment of scenic beauty, or conservation or use of 21 natural resources. 22 (g) "Persons and families of low or moderate income" has the • 23 same meaning as provided in Section 50093 of the Health and 24 Safety Code. 25 SEC. 5. Section 54222 of the Government Code is amended 26 to read: 27 54222. Except as provided in Division 23 (commencing with 28 Section 33000) of the Public Resources Code, any local agency 29 disposing of surplus land shall send, prior to disposing of that 30 property or participating in negotiations to dispose of that property 31 with a prospective transferee other than an affordable housing 32 developer proposing to develop an affordable housing project on 33 the site that meets or exceeds the 25-percent affordability threshold 34 described in Section 54222.5, a written notice of availability of 35 the property to all of the following: 36 (a) (1) A written notice of availability for the purpose of 37 developing low- and moderate-income housing shall be sent to 38 any local public entity, as defined in Section 50079 of the Health 39 and Safety Code, within whose jurisdiction the surplus land is 40 located. Housing sponsors, as defined by Section 50074 of the 97 173 SB 747 —16— 1 Health and Safety Code, that have notified the Department of 2 Housing and Community Development of their interest in surplus 3 land shall be sent a notice of availability of surplus land for the 4 purpose of developing low- and moderate-income housing. All 5 notices shall be sent by electronic mail, or by certified mail, and 6 shall include the location and a description of the,property. 7 (2) The Department of Housing and Community Development 8 shall maintain on its internet website an up-to-date listing of all 9 notices of availability throughout the state. 10 (b) A written notice of availability for open-space purposes shall 11 be sent: 12 (1) To any park or recreation department of any city within 13 which the land may be situated. 14 (2) To any park or recreation department of the county within 15 which the land is situated. 16 (3) To any regional park authority having jurisdiction within 17 the area in which the land is situated. 18 (4) To the State Resources Agency or any agency that may 19 succeed to its powers. 20 (c) A written notice of availability of land suitable for school 21 facilities construction or use by a school district for open-space 22 purposes shall be sent to any school district in whose jurisdiction 23 the land is located. 24 (d) A written notice of availability for the purpose of developing 25 property located within an infill opportunity zone designated 26 pursuant to Section 65088.4 or within an area covered by a transit 27 village plan adopted pursuant to the Transit Village Development 28 Planning Act of 1994 (Article 8.5 (commencing with Section 29 65460) of Chapter 3 of Division 1 of Title 7) shall be sent to any 30 county, city, city and county, successor agency to a former 31 redevelopment agency, public transportation agency, or housing 32 authority within whose jurisdiction the surplus land is located. 33 (e) The entity or association desiring to purchase or lease the 34 surplus land for any of the purposes authorized by this section 35 shall notify in writing the disposing agency of its interest in 36 purchasing or leasing the land within 60 days after the agency's 37 notice of availability of the land is sent via certified mail or 38 provided via electronic mail. 39 (f) For the purposes of this section, "participating in 40 negotiations" does not include the commissioning of appraisals, 97 174 -17— SB 747 1 due diligence prior to disposition,discussions with brokers or real 2 estate agents not representing a potential buyer, or other studies 3 to determine value or best use of land, issuance of a request for 4 qualifications,development of marketing materials,or discussions 5 conducted exclusively among local agency employees and elected 6 officials. 7 SEC. 6. Section 54226 of the Government Code is amended 8 to read: 9 54226. (a) This article shall not be interpreted to limit the 10 power of any local agency to sell or lease surplus land at fair market 11 value or at less than fair market value, and any sale or lease at or 12 less than fair market value consistent with this article shall not be 13 construed as inconsistent with an agency's purpose. 14 (b) This article shall not prevent a local agency from obtaining 15 fair market value for the disposition of surplus land consistent with 16 this section. 17 (c) This article shall not be interpreted to limit a local agency's 18 authority or discretion to approve land use,zoning, or entitlement 19 decisions in connection with the surplus land. 20 (d) This article shall not be interpreted to require a local agency 21 to dispose of land that is determined to be surplus. 22 (e) This article shall not apply to properties that a local agency 23 proposes to sell, lease, or otherwise transfer pursuant to Part 4 24 (commencing with Section 52200) of Division 1 of Title 5. 25 (f) This article shall not apply when it conflicts with any other 26 provision or authority of statutory law. 27 SEC. 7. Section 54230 of the Government Code is amended 28 to read: 29 54230. (a) (1) On or before December 31 of each year, each 30 county and each city shall make a central inventory of all surplus 31 land, as defined in subdivision(b)of Section 54221, and all lands 32 in excess of its foreseeable needs, if any, identified pursuant to 33 Section 50569, located in all urbanized areas and urban clusters, 34 as designated by the United States Census Bureau, within the 35 jurisdiction of the county or city that the county or city or any of 36 its departments, agencies, or authorities owns or controls. 37 (2) (A) Subject to subparagraph(C),each county and each city 38 shall make a description of each parcel described in paragraph(1) 39 and the present use of the parcel a matter of public record and shall 40 report this information to the Department of Housing and 97 175 • SB 747 —18— 1 Community Development no later than April 1 of each year, 2 beginning April 1, 2021, in a form prescribed by the department, 3 as part of its annual progress report submitted pursuant to paragraph 4 (2) of subdivision (a) of Section 65400. 5 (B) The information reported pursuant to this paragraph shall 6 include, but not be limited to, the following information with 7 respect to each site: 8 (i) Street address, or similar location information. 9 (ii) Assessor's parcel number. 10 (iii) Existing use. 11 (iv) Whether the site is surplus land or exempt surplus land. 12 (v) Size in acres. 13 (C) The Department of Housing and Community Development 14 may,in its discretion,delay implementation of this paragraph until 15 April 1, 2022. 16 (3) Each county and each city,upon request,shall provide a list 17 of its surplus land and excess surplus land to an individual,limited 18 dividend corporation,housing corporation,or nonprofit corporation 19 without charge. 20 (b) The Department of Housing and Community Development 21 shall provide the information reported to it by a city or county 22 pursuant to paragraph (2) of subdivision (a) to the Department of 23 General Services for inclusion in a digitized inventory of all 24 state-owned parcels that are in excess of state needs. 25 (c) The Department of Housing and Community Development 26 may review, adopt, amend, and repeal standards, forms, and 27 definitions in order to implement this section. Any standards, 28 forms, or definitions adopted, amended, or repealed pursuant to 29 this subdivision are hereby exempt from the rulemaking provisions 30 of the Administrative Procedure Act (Chapter 3.5 (commencing 31 with Section 11340) of Part 1 of Division 3 of Title 2). 32 SEC. 8. Section 54230.5 of the Government Code is amended 33 to read: 34 54230.5. (a) (1) A local agency that disposes of land in 35 violation of this article after receiving a notification from the 36 Department of Housing and Community Development pursuant 37 to subdivision(b)that the local agency is in violation of this article 38 shall be liable for a penalty of 30 percent of the final sale price of 39 the land sold in violation of this article for a first violation and 50 40 percent for any subsequent violation.An entity identified in Section 97 176 -19— SB 747 1 54222 or a person who would have been eligible to apply for 2 residency in any affordable housing developed or a housing 3 organization as defined in Section 65589.5, or any beneficially 4 interested person or entity may bring an action to enforce this 5 section.Upon receiving a notice of violation from the department, 6 a local agency that proceeds with the disposal shall consider the 7 matter at a public meeting within 30 days. Following the public 8 meeting, a local agency shall have 60 days to cure or correct an 9 alleged violation before an action may be brought to enforce this 10 section,unless the local agency disposes of the land before curing 11 or correcting the alleged violation, or the department deems the 12 alleged violation not to be a violation in less than 60 days. 13 (2) A penalty assessed pursuant to this subdivision shall,except 14 as otherwise provided,be deposited into a local housing trust fund. 15 The local agency may elect to instead deposit the penalty moneys 16 into the Building Homes and Jobs Trust Fund or the Housing 17 Rehabilitation Loan Fund.Penalties shall not be paid out of funds 18 already dedicated to affordable housing,including,but not limited 19 to, Low and Moderate Income Housing Asset Funds, funds 20 dedicated to housing for very low, low-, and moderate-income 21 households, and federal HOME Investment Partnerships Program 22 and Community Development Block Grant Program funds. The 23 local agency shall commit and expend the penalty moneys 24 deposited into the local housing trust fund within five years of 25 deposit for the sole purpose of financing newly constructed housing 26 units that are affordable to extremely low,very low,or low-income 27 households. 28 (3) Five years after deposit of the penalty moneys into the local 29 housing trust fund,if the funds have not been expended,the funds 30 shall revert to the state and be deposited in the Building Homes 31 and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for 32 the sole purpose of financing newly constructed housing units 33 located in the same jurisdiction as the surplus land and that are 34 affordable to extremely low,very low,or low-income households. 35 Expenditure of any penalty moneys deposited into the Building 36 Homes and Jobs Trust Fund or the Housing Rehabilitation Loan 37 Fund pursuant to this subdivision shall be subject to appropriation 38 by the Legislature. 39 (b) (1) Prior to agreeing to terms for the disposition of surplus 40 land, a local agency shall provide to the Department of Housing 97 177 SB 747 —20— 1 and Community Development a description of the notices of 2 availability sent, and negotiations conducted with any responding 3 entities, in regard to the disposal of the parcel of surplus land and 4 a copy of any restrictions to be recorded against the property 5 pursuant to Section 54233 or 54233.5,whichever is applicable,in 6 a form prescribed by the Department of Housing and Community 7 Development. A local agency may submit this information after 8 it has sent notices of availability required by Section 54222 and 9 concluded negotiations with any responding agencies. A local 10 agency shall not be liable for the.penalty imposed by subdivision 11 (a) if the Department of Housing and Community Development 12 does not notify the agency that the agency is in violation of this 13 article within 30 days of receiving the description. 14 (2) The Department of Housing and Community Development 15 shall do all of the following: 16 (A) Make available educational resources and materials that 17 inform each agency of its obligations under this article and that 18 provide guidance on how to comply with its provisions. 19 (B) Review information submitted pursuant to paragraph (1). 20 (C) Submit written findings to the local agency within 30 days 21 of receipt of the description required by paragraph (1) from the 22 local agency if the proposed disposal of the land will violate this 23 article. 24 (D) Review, adopt, amend, or repeal guidelines to establish 25 uniform standards to implement this section. The guidelines 26 adopted pursuant to this subdivision are not subject to Chapter 3.5 27 (commencing with Section 11340) of Part 1 of Division 3 of Title 28 2. Prior to adopting, amending, or repealing guidelines, the 29 department shall do-all both of the following: 30 (i) Solicit public comments on the proposed guidelines for at 31 least 30 days. 32 (ii) Consider and respond to public comments in writing. 33 (E) Provide the local agency reasonable time, but not less than 34 60 days, to respond to the findings before taking any other action 35 authorized by this section. 36 (F) Provide the local agency an appeals process that is overseen 37 by an independent trier of fact to overturn an adverse action taken 38 by the department authorized by this section affecting the local 39 agency that is overseen by an indcpcndcnt trier of fact. agency. 97 178 —21— SB 747 1 (3) (A) The local agency shall consider findings made by the 2 Department of Housing and Community Development pursuant 3 to subparagraph (B) of paragraph (2) and shall do one of the 4 following: 5 (i) Correct any issues identified by the Department of Housing 6 and Community Development. 7 (ii) Provide written findings explaining the reason its process 8 for disposing of surplus land complies with this article and 9 addressing the Department of Housing and Community 10 Development's findings. 11 (B) If the local agency does not correct issues identified by the 12 Department of Housing and Community Development, does not 13 provide findings explaining the reason its process for disposing of 14 surplus land complies with this article and addressing the 15 Department of Housing and Community Development's findings, 16 or if the Department of Housing and Community Development 17 finds that the local agency's findings are deficient in addressing 18 the issues identified by the Department of Housing and Community 19 Development, the Department of Housing and Community 20 Development shall notify the local agency, and may notify the 21 Attorney General,that the local agency is in violation of this article. 22 (c) The Department of Housing and Community Development 23 shall implement the changes in this section made by the act adding 24 this subdivision commencing on January 1, 2021. 25 (d) Notwithstanding subdivision (c), this section shall not be 26 construed to limit any other remedies authorized under law to 27 enforce this article including public records act requests pursuant 28 to Division 10 (commencing with Section 7920.000) of Title 1. 29 SEC. 9. Section 54234 of the Government Code is amended 30 to read: 31 54234. (a) (1) If a local agency, as of September 30, 2019, 32 has entered into an exclusive negotiating agreement or legally 33 binding agreement to dispose of property, the provisions of this 34 article as it existed on December 31, 2019, shall apply, without 35 regard to the changes made to this article by Chapter 664 of the 36 Statutes of 2019, and all subsequent amendments to this article, 37 to the disposition of the property to the party that had entered into 38 such agreement or its successors or assigns, provided the 39 disposition is completed by either of the following dates, as 40 applicable: 97 179 SB 747 —22— 1 (A) December 31,2022,unless either of the conditions described 2 in subparagraph (B)apply. 3 (B) (i) December 31,2024,if the property is located in a charter 4 city with a population of over 2,000,000 persons and a local agency 5 has an option agreement duly authorized by the local agency's 6 governing body to purchase the property from the former 7 redevelopment agency. 8 (ii) December 31, 2025, if the property is located in a city or 9 county which entered into a legally binding agreement to dispose 10 of the property prior to September 30,2019,and the transferee has 11 exercised one or more unilateral extension options which were a 12 component of the original agreement. 13 (2) If a local agency, as of September 30, 2019, has entered 14 into an exclusive negotiating agreement or legally binding 15 agreement to dispose of property related to the Metro North 16 Hollywood Joint Development Project,the provisions of this article 17 as it existed on December 31, 2019, shall apply,without regard to 18 the changes made to this article by Chapter 664 of the Statutes of 19 2019, and all subsequent amendments to this article, to the 20 disposition of the property to the party that had entered into such 21 agreement or its successors or assigns,provided the disposition is 22 completed not later than December 31, 2024. 23 (3) If a local agency, as of September 30, 2019, has issued a 24 competitive request for proposals for the development of property 25 that includes at least 100 residential units and at least 25 percent 26 of the total residential units are restricted to lower income 27 households,as defined in Section 50079.5 of the Health and Safety 28 Code, with an affordable housing cost or an affordable rent, as 29 defined in Sections 50052.5 and 50053 of the Health and Safety 30 Code, for a minimum of 55 years for rental housing and 45 years 31 for ownership housing, the provisions of this article as it existed 32 on December 31, 2019, shall apply,without regard to the changes 33 made to this article by Chapter 664 of the Statutes of 2019, and 34 all subsequent amendments to this article,to the disposition of the 35 property to the party that participated in the competitive request 36 for proposals process,or the parry's successors or assigns,provided 37 a disposition and development agreement for the property is entered 38 into not later than December 31, 2024. A joint development 39 involving multiple parcels shall meet the requirements of this 40 paragraph so long as there was a single competitive request for 97 180 —23— SB 747 1 proposals process and the joint development otherwise meets all 2 the requirements listed in this paragraph. A "disposition and 3 development agreement" means an agreement between the 4 developer and the local agency that binds the developer to construct 5 a specific development and the local agency to dispose of the 6 property if permits and other entitlements for the project are 7 obtained. This paragraph shall not apply to land held in the 8 Community Redevelopment Property Trust Fund pursuant to 9 Section 34191.4 of the Health and Safety Code, or that has been 10 designated in a long-range property management plan pursuant to 11 Section 34191.5 of the Health and Safety Code. If the property is 12 not disposed of pursuant to a qualifying disposition and 13 development agreement before March 31,2026,or if no disposition 14 and development agreement is entered into before December 31, 15 2024, then future negotiations for and disposition of the property 16 shall be subject to the provisions of this article. 17 (4) The dates specified in paragraphs (1) to (3), inclusive, by 18 which the disposition of property must be completed shall be 19 extended if the disposition of property, the local agency's right or 20 ability to dispose of the property, or a development project for 21 which the property is proposed to be transferred, is the subject of 22 judicial challenge, by petition for writ of mandate, complaint for 23 declaratory relief or otherwise, to the date that is six months 24 following the final conclusion of such litigation. 25 (b) (1) With respect to land held in the Community 26 Redevelopment Property Trust Fund pursuant to Section 34191.4 27 of the Health and Safety Code, or that has been designated in a 28 long-range property management plan pursuant to Section 34191.5 29 of the Health and Safety Code,either for sale or retained for future 30 development, this article as it existed on December 31, 2019, 31 without regard to the changes made to this article by Chapter 664 32 of the Statutes of 2019, and all subsequent amendments to this 33 article, which take effect on January 1, 2020, shall apply to the 34 disposition of that property if both of the following apply: 35 (A) An exclusive negotiating agreement or legally binding 36 agreement for disposition is entered into not later than December 37 31, 2020. 38 (B) The disposition is completed not later than either of the 39 following dates, as applicable: 97 181 SB 747 —24— 1 (i) December 31,2022,unless the conditions described in clause 2 (ii) or(iii) apply. 3 (ii) December 31, 2024, if the property is located in a charter 4 city with a population of over 2,000,000 persons and a local agency 5 has an option agreement duly authorized by the local agency's 6 governing body to purchase the property from the former 7 redevelopment agency. 8 (iii) December 31, 2025, if the property is located in a city or 9 county which entered into a legally binding agreement to dispose 10 of the property prior to September 30,2019,and the transferee has 11 exercised one or more unilateral extension options which were a 12 component of the original agreement. 13 (2) If land described in paragraph(1)is the subject of litigation, 14 including,but not limited to,litigation challenging the disposition 15 of such property, the right or ability to dispose of the property, or 16 a development project for which such property is proposed to be 17 transferred, the dates specified in paragraph(1) shall be extended 18 to the date that is six months following the final conclusion of such 19 litigation. 20 (c) Nothing in this section shall authorize or excuse any violation 21 of the provisions of this article as it existed on December 31,2019, 22 in the disposition of any property to which such provisions apply 23 pursuant to subdivision (a) or(b). 24 SEC. 10. If the Commission on State Mandates determines 25 that this act contains costs mandated by the state, reimbursement 26 to local agencies and school districts for those costs shall be made 27 pursuant to Part 7 (commencing with Section 17500) of Division 28 4 of Title 2 of the Government Code. 0 97 182 �'� N �N� CITY OF HUNTINGTON BEAC • H • 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR May 3, 2023 The Honorable Anna Caballero State Capitol, Ste. 7620 Sacramento, CA 95814 Dear Senator Caballero: The City of Huntington Beach is pleased to SUPPORT Senate Bill 747, which contains much needed clarifications and reforms to the Surplus Land Act (SLA). and reaffirms the role of existing Economic Opportunity Law that is used by local agencies to acquire and dispose of property to improve economic opportunities for local residents. The implementation of the SLA, including recent guidelines by the Housing and Community Development Department, has created immense delays and difficulties for the City of Huntington Beach in dealing with the use of our properties to further housing and economic development goals in service of our residents. SB 747 addresses these concerns through an array of helpful changes and clarifications, provides for additional exceptions and definitions, and improves transparency and processes. Additional clarification to reaffirm the use of Economic Opportunity Law as a post- redevelopment tool is greatly needed. The City of Huntington Beach appreciates the proposed reform and thanks you for your leadership in beginning to apply a sharper legislative focus on the application of the SLA. This will ensure that the administration of the law remains consistent with legislative intent and avoids unintended delays or conflicts with other laws and policy priorities the Legislature has enacted, including actions to support and further economic development. For these reasons, the City of Huntington Beach is pleased to support SB 747. Please feel free to contact me at (714) 536-5553, or Tony.Strickland@surfcity-hb.org, whenever needed. Sincerely, Tony Strickland Mayor Cc: Members, Senate Committee on Governance and Finance Gurbax Sahota, Chief Executive Officer, CALED Fax 714.536.5233 Page 1 of 1 Office:714.536.5553 183 AMENDED IN ASSEMBLY APRIL 10, 2023 CALIFORNIA LEGISLATURE-2023-24 REGULAR SESSION ASSEMBLY BILL No. 1035 Introduced by Assembly Member Muratsuchi February 15, 2023 An act to add Section 798.30.7 to the Civil Code, relating to mobilehomes. LEGISLATIVE COUNSEL'S DIGEST AB 1035, as amended, Muratsuchi. Mobilehome parks: rent caps. Existing law, the Mobilehome Residency Law, prescribes various terms and conditions of tenancies in mobilehome parks. Existing law defines "tenancy" for these purposes as the right of a homeowner to use a site within a mobilehome park on which to locate, maintain, and occupy a mobilehome for human habitation, including the use of the services and facilities of the park. Existing law, prohibits, with certain exceptions,the management of a mobilehome park from increasing the gross rental rate for a tenancy in a qualified mobilehome park, as defined,more than 3%plus the percentage change in the cost of living, or 5%, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase, subject to specified conditions. Existing law defines "qualified mobilehome park"for these purposes as a mobilehome park that is located within and governed by the jurisdictions of 2 or more incorporated cities. This bill would enact the Mobilehome Affordability Act. The bill would prohibit the management of a mobilehome park from increasing the gross rental rate for a tenancy for a mobilehome space more than 3% plus the percentage change in the cost of living, as defined, over 98 184 AB 1035 —2— the course of any 12-month period,as specified.The bill would prohibit management from increasing the gross rental rate for a tenancy in more than 2 increments over a 12-month period, after the tenant maintains the tenancy over a 12-month period. The bill would prohibit management from imposing an increase in rent on a prospective purchaser or homeowner that purchases a mobilehome if the purchase qualifies as an in-place transfer, as specified. The bill would exempt specified mobilehome spaces from these provisions. Thc This bill would specify that these provisions apply to rent increases for mobilehome spaces occurring on or after January 1, 2023. The bill would provide that in the event that management increased the rent by more than the amount specified above between January 1, 2023, and January 1,2024,then the applicable rent on January 1,2024,is the rent as of January 1,2023,plus the maximum permissible increase,and that management is not liable to the homeowner for any corresponding rent overpayment. The bill would provide that its provisions shall not impair, alter, or change any rental term or obligation contained in a rental agreement in effect between management and a resident as of January 1, 2024, and which was entered into or became effective before January 1, 2023, except as described. The bill would void any waiver of the rights provided under these provisions.Thc bill would authorize a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent, or other regulations for a tenancy. The bill would not apply to a mobilehome park when a local government has adopted an ordinance, rule, regulation, or initiative measure prior to the effective date of the bill before January 1, 2024, that establishes a maximum amount that may be charged by management for rent or otherwise regulates the rental rate for a mobilehome tenancy. tenancy in that mobilehome park. This bill would state that its provisions are severable. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. The people of the State of California do enact as follows: 1 SECTION 1. This act shall be known, and may be cited, as the 2 Mobilehome Affordability Act. 3 SECTION 1. 4 SEC. 2. Section 798.30.7 is added to the Civil Code, to read: 98 185 -3— AB 1035 1 798.30.7. (a) (1) Subject to paragraph (2) and except as 2 provided in subdivision(b),management shall not,over the course 3 of any 12-month period,increase the gross rental rate for a tenancy 4 in a mobilehome park by more than 3 percent plus the percentage 5 change in the cost of living, or 5 percent, whichever is lower, of 6 the lowest gross rental rate charged for the tenancy at any time 7 during the 12 months prior to the effective date of the increase. 8 (2) If the same homeowner maintains a tenancy over any 9 12-month period,the gross rental rate for the tenancy shall not be 10 increased in more than two increments over that 12-month period, 11 subject to the other restrictions of this subdivision governing gross 12 rental rate increases. 13 (b) (1) Except as provided in paragraph (2),for a new tenancy 14 in which no homeowner from the prior tenancy remains in lawful 15 possession of the mobilehome space, management may establish 16 the an initial rental rate not subject to for the new tenancy without 17 complying with subdivision(a). However, subdivision 18 (a) shall be applicable to subsequent increases of the rental rate 19 after that initial rental rate has been established, except as unless 20 otherwise provided in this section. 21 (2) Notwithstanding paragraph(1),management shall not impose 22 an increase in rent on a prospective purchaser or homeowner that 23 purchases a mobilehome if the purchase qualifies as an in-place 24 transfer. Subdivision (a) shall apply to the new tenancy created 25 after an in-place transfer and the initial rental rate shall be set at 26 the rental rate of the previous tenancy. 27 (c) Management shall provide notice of any increase in the rental 28 rate, pursuant to subdivision (a), rate to each homeowner in 29 accordance with Section 798.30. 30 (d) (1) This section shall not apply to a tenancy for any of the 31 following: 32 {�} 33 (A) A mobilehome space restricted by deed, regulatory 34 restriction contained in an agreement with a governmental agency, 35 or other recorded document as affordable housing for persons and 36 families of very low, low, or moderate income, as defined in 37 Section 50093 of the Health and Safety Code, or subject to an 38 agreement that provides housing subsidies for affordable housing 39 for persons and families of very low, low, or moderate income, as 98 • 186 AB 1035 —4- 1 defined in Section 50093 of the Health and Safety Code or 2 comparable federal statutes. 3 (2) 4 (B) A mobilehome space subject to any ordinance, rule, 5 regulation, or initiative measure that restricts annual increases in 6 the rental rate to an amount less than that provided in subdivision 7 (a). 8 (3) 9 (C) A mobilehome space within a resident-owned mobilehome 10 park, as defined in Section 799. 11 (4) 12 (D) A mobilehome space occupied by a resident who is not a 13 homeowner, including, but not limited to, any spaces that are 14 directly rented by management. The rental amount to be charged 15 for any such spaces shall be governed by Sections 1946.2, 1947.12 16 and 1947.13. 17 (2) This section shall not apply to a mobilehome park when a 18 local government has adopted an ordinance, rule, regulation, or 19 initiative measure before January 1, 2024, that establishes a 20 maximum amount that may be charged by management for rent 21 or otherwise regulates the rental rate for a mobilehome tenancy 22 in that mobilehome park. 23 (3) This section shall not impair, alter, or change any rental 24 term or obligation contained in a rental agreement in effect 25 between management and a resident as of January 1, 2024, and 26 which was entered into or became effective before January 1, 2023. 27 However, any rental provisions contained in those agreements 28 shall be subject to the provisions of this section following the date 29 upon which the term of the agreement has ended or has been 30 renewed or extended. 31 (e) (1) This Except as provided in subdivision (d), this section 32 shall apply to all rent increases occurring on or after January 1, 33 2023. 34 (2) In the event that management has increased the rent by more 35 than the amount permissible under subdivision(a)between January 36 1, 2023, and January 1, 2024, both of the following shall apply: 37 (A) The applicable rent on January 1, 2024, shall be the rent as 38 of January 1, 2023,plus the maximum permissible increase under 39 subdivision (a). 98 187 -5— AB 1035 1 (B) Management shall not be liable to a homeowner for any 2 corresponding rent overpayment. 3 (f) Any waiver of the rights under this section shall be void as 4 contrary to public policy. • 5 (g) For the purposes of this section: 6 (1) "Consumer Price Index for All Urban Consumers for All 7 Items"means the following: 8 (A) The Consumer Price Index for All Urban Consumers for 9 All Items(CPI-U)for the metropolitan area in which the property 10 is located, as published by the United States Bureau of Labor 11 Statistics, which are as follows: 12 (i) The CPI-U for the Los Angeles-Long Beach-Anaheim 13 metropolitan area covering the Counties of Los Angeles and 14 Orange. 15 (ii) The CPI-U for the Riverside-San Bernardo-Ontario 16 metropolitan area covering the Counties of Riverside and San 17 Bernardino. 18 (iii) The CPI-U for the San Diego-Carlsbad metropolitan area 19 covering the County of San Diego. 20 (iv) The CPI-U for the San Francisco-Oakland-Hayward 21 metropolitan area covering the Counties of Alameda,Contra Costa, 22 Marin,San Francisco,and San Mateo.San Mateo,and Santa Clara. 23 (v) Any successor metropolitan area index to any of the indexes 24 listed in clauses (i) to (iv), inclusive. 25 (B) If the United States Bureau of Labor Statistics does not 26 publish a CPI-U for the metropolitan area in which the property 27 is located, the California Consumer Price Index for All Urban 28 Consumers for All Items as published by the Department of 29 Industrial Relations. 30 (C) On or after January 1, 2024, if the United States Bureau of 31 Labor Statistics publishes a CPI-U index for one or more 32 metropolitan areas not listed in subparagraph(A),that CPI-U index 33 shall apply in those areas with respect to rent increases that take 34 effect on or after August 1 of the calendar year in which the 35 12-month change in that CPI-U, as described in subparagraph(B) 36 of paragraph (2), is first published. 37 (2) (A) "Percentage change in the cost of living" means the 38 percentage change in the applicable CPI-U, as described in 39 paragraph (1) and computed pursuant to subparagraph (B) of this 40 paragraph. 98 188 AB 1035 —6— 1 (B) (i) For rent increases that take effect before August 1 of 2 any calendar year, the following shall apply: 3 (I) The percentage change shall be the percentage change in the 4 amount published for April of the immediately preceding calendar 5 year and April of the year before that. 6 (II) If there is not an amount published in April for the applicable 7 geographic area, the percentage change shall be the percentage 8 change in the amount published for March of the immediately 9 preceding calendar year and March of the year before that. 10 (ii) For rent increases that take effect on or after August 1 of 11 any calendar year, the following shall apply: 12 (I) The percentage change shall be the percentage change in the 13 amount published for April of that calendar year and April of the 14 immediately preceding calendar year. 15 (II) If there is not an amount published in April for the applicable 16 geographic area, the percentage change shall be the percentage 17 change in the amount published for March of that calendar year 18 and March of the immediately preceding calendar year. 19 (iii) The percentage change shall be rounded to the nearest 20 one-tenth of 1 percent. 21 (3) "In-place transfer"means the sale of a mobilehome pursuant 22 to Article 7 (commencing with Section 798.70) where the 23 mobilehome is transferred by a homeowner to a subsequent 24 homeowner and remains at the same mobilehome space. 25 (h) (1) Nothing in this section affects the authority of a local 26 government to adopt or maintain an ordinance, rule, regulation, 27 or initiative measure that establishes a maximum amount that may 28 be charged for rent, or other regulations for a tenancy. 29 (2) This section is not intended to express any policy regarding 30 the appropriate, allowable rental rate increase imposed by 31 ordinance, rule, regulation, or initiative measure regulating rent 32 increases, nor in connection with the continuation of any 33 mobilehome rent regulation that a local government has chosen 34 to enact and administer, based upon the particular needs or 35 economic conditions within the local jurisdiction. 36 (i) This section shall not apply to a mobilehome park when a 37 local government that has adopted an ordinance, rule, regulation, 38 or initiative measure prior to the effective date of this section that 39 establishes a maximum amount that may be charged by 98 189 -7— AB•1035 1 management for rcnt or othcrwisc regulates the rental rate for a 2 mobilchomc tenancy. 3 SEC. 2. 4 SEC. 3. The provisions of this measure are severable. If any 5 provision of this measure or its application is held invalid, that 6 invalidity shall not affect other provisions or applications that can 7 be given effect without the invalid provision or application. 0 98 190 May 3, 2023 The Honorable Al Muratsuchi 10210 Street,Suite 5610 Sacramento,CA 94249-0066 RE: AB 1035 Mobilehome parks: rent caps Notice of Opposition Dear Assemblymember Muratsuchi: The City of Huntington Beach respectfully opposes AB 1035.The proposed legislation would interfere with the free market rent system, which can interfere with a property's ability to produce sufficient income and remain competitive. The City of Huntington Beach Charter Section 803 states"The City shall not enact or enforce any measure which mandates the price or other consideration payable to the owner in connection with the sale, lease, rent, exchange or other transfer by the owner of real property...." For these reasons,the City of Huntington Beach respectfully opposes AB 1035. Sincerely, • Tony Strickland Mayor City of Huntington Beach Cc: Senator Janet Nguyen Senator Dave Min Assembly Member Diane Dixon Assembly Member Tri Ta ACC-OC Board of Directors(via email) Bismarck Obando, Director of Public Affairs(bismarck@calcities:org) League of California Cities (cityletters@calcities.org) 191 AMENDED IN SENATE MARCH 28, 2023 AMENDED IN SENATE FEBRUARY 22, 2023 SENATE BILL No. 4 Introduced by Senator Wiener (Principal coauthors:Assembly Members-McKitirterBerman,McKinnor, and Wicks) (Coauthors: Senators Becker, Cortese,Eggman, Gonzalez, Menjivar,and Skinner) (Coauthors:Assembly Members Alvarez, Friedman, Gabriel, Quirk-Silva, and Ward) December 5, 2022 An act to add Section 65913.16 to the Government Code,relating to housing. LEGISLATIVE COUNSEL'S DIGEST SB 4, as amended, Wiener. Planning and zoning: housing development: higher education institutions and religious institutions. 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. That law allows a development proponent to submit an application for a development that is subject to a specified streamlined, ministerial approval process not subject to a conditional use permit, if the development satisfies certain objective planning standards. Existing law, the Zenovich-Moscone-Chacon Housing and Home Finance Act,establishes the California Tax Credit Allocation Committee within the Department of Housing and Community Development. Existing law requires the committee to allocate state low-income housing 97 192 SB 4 —2— tax credits in conformity with state and federal law that establishes a maximum rent that may be charged to a tenant for a project unit constructed using low-income housing tax credits. This bill would require that a housing development project be a use by right upon the request of an applicant who submits an application for streamlined approval, on any land owned by an independent institution of higher education or religious institution on or before January 1,2024,if the development satisfies specified criteria,'including that the development is not adjoined to any site where more than one-third of the square footage on the site is dedicated to industrial use. The bill would define various terms for these purposes. Among other things, the bill would require that 100% of the units, exclusive of manager units, in a housing development project eligible for approval as a use by right under these provisions be affordable to lower income households, except that 20% of the units may be for moderate-income households, and 5% of the units may be for staff of the independent institution of higher education or the religions religious institution that owns the land, provided that the units affordable to lower income households are offered at affordable rent,as set in an amount consistent with the rent limits established by the California Tax Credit Allocation Committee, or affordable housing cost, as specified. The bill would authorize the development to include ancillary uses on the ground floor of the development, as specified. This bill would specify that a housing development project that is eligible for approval as a use by right under the bill is also eligible for a density bonus or other incentives or concessions, bonus, incentives, or concessions, or waivers or reductions of development and parking standards, except as specified. The bill would require a development subject to these provisions to provide off-street parking of up to one space per unit,unless a state law or local ordinance provides for a lower standard of parking, in which case the law or ordinance applies. The bill would prohibit a local government from imposing any parking requirement on a development subject to these provisions if the development is located within one-half mile walking distance of public transit, either.a high-quality transit corridor or a major transit stop, as those terms are defined, or it is within one block of a car share vehicle. This bill would require a local government that determines a proposed development is in conflict with any objective planning standards, as specified, to provide the developer with written documentation explaining those conflicts under a specified timeframe. The bill would 97 193 -3— SB4 provide that the development shall be deemed to satisfy the required objective planning standards if the local government fails to provide the requisite documentation explaining any conflicts. The bill would authorize a local government to conduct a design review, as described, only if the design review focuses on compliance with the requisite criteria of a streamlined, ministerial review process. The bill would prohibit a local government from using a design review, as specified, from 'inhibiting, chilling, or precluding a streamlined, ministerial approval. The bill would require a local government to issue a subsequent permit for developments approved under the provisions of this act. 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 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 or to adopt a negative declaration if it finds that the project will not have that effect.CEQA does not apply to the ministerial approval of projects. This bill, by requiring approval of certain development projects as a use by right, would expand the exemption for ministerial approval of projects under CEQA. By adding to the duties of local planning officials with respect to approving certain development projects, 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 65913.16 is added to the Government 2 Code, to read: 97 194 SB 4 —4- 1 65913.16. (a) For This section shall be known, and may be 2 cited, as the Affordable Housing on Faith and Higher Education 3 Lands Act of 2023. 4 (b) For purposes of this section: 5 (1) "Applicant" means a qualified developer who submits an 6 application for streamlined approval pursuant to this section. 7 (2) "Development proponent" means a developer that submits 8 a housing development project application to a local government 9 under the streamlined, ministerial review process pursuant to this 10 chapter. 11 (3) "Health care expenditures" include contributions pursuant 12 to Section 501(c) or (d) or 401(a) of the Internal Revenue Code 13 and payments toward "medical care" as defined in Section 14 213(d)(1) of the Internal Revenue Code. 15 (4) "Housing development project" has the same meaning as 16 defined in Section 65589.5. 17 (5) "Independent institution of higher education"has the same 18 meaning as defined in Section 66010 of the Education Code. 19 (6) "Industrial use"means utilities,manufacturing,transportation 20 storage and maintenance facilities, and warehousing facilities. 21 "Industrial use" does not include power substations or utility 22 conveyance such as power lines, broadband wires, and pipes. 23 (7) "Local government" means a city, including a charter city, 24 county, including a charter county, or city and county, including 25 a charter city and county. 26 (8) "Qualified developer"means any of the following: 27 (A) A local public entity, as defined in Section 50079 of the 28 Health and Safety Code. 29 (B) (i) A developer that is a nonprofit corporation, a limited 30 partnership in which the managing general partner is a nonprofit 31 corporation,or a limited liability company in which the managing 32 member is a nonprofit corporation. 33 (ii) The developer, at the time of submission of an application 34 for development pursuant to this section,owns property or manages 35 housing units located on property that is exempt from taxation 36 pursuant to the welfare exemption established in subdivision (a) 37 of Section 214 of the Revenue and Taxation Code. 38 (C) A developer that contracts with a nonprofit corporation that 39 has received a welfare exemption under Section 214.15 of the 40 Revenue and Taxation Code for properties intended to be sold to 97 195 -5— SB 4 1 low-income families with financing in the form of zero interest 2 rate loans. 3 (D) A developer that the religious institution or independent 4 institution of education, as defined in this section, has contracted 5 with before to construct housing or other improvements to real 6 property. 7 (9) "Religious institution" means an institution owned, 8 controlled, and operated and maintained by a bona fide church, 9 religious denomination, or religious organization composed of 10 multidenominational members of the same well-recognized 11 religion, lawfully operating as a nonprofit religious corporation 12 pursuant to Part 4 (commencing with Section9)9110), or as 13 a corporation sole pursuant to Part 6(commencing with Section 14 10000), of Division 2 of Title 1 of the Corporations Code. 15 (10) "Use by right" means a development project that satisfies 16 both of the following conditions: 17 (A) The development project does not require a conditional use 18 permit, planned unit development permit, or other discretionary 19 local government review. 20 (B) The development project is not a"project" for purposes of 21 Division 13 (commencing with Section 21000) of the Public 22 Resources Code. 23 {lf)} 24 (c) Notwithstanding any inconsistent provision of a local 25 government's general plan, specific plan, zoning ordinance, or 26 regulation,upon the request of an applicant,a housing development 27 project shall be a use by right, if all of the following criteria are 28 satisfied: 29 (1) The development is located on land owned on or before 30 January 1,2024,by an independent institution of higher education 31 or a religious institution,including ownership through an affiliated 32 or associated nonprofit public benefit corporation organized 33 pursuant to the Nonprofit Corporation Law (Part 2 (commencing 34 with Section 5110) of Division 2 of Title 1 of the Corporations 35 Code). 36 (2) The development is located on a parcel that satisfies the 37 requirements specified in subparagraphs(A)and(B)of paragraph 38 (2) of subdivision (a) of Section 65913.4. 97 196 SB 4 —6- 1 (3) The development is located on a parcel that satisfies the 2 requirements specified in subparagraphs (B) to (K), inclusive, of 3 paragraph(6) of subdivision (a) of Section 65913.4. 4 (4) The development is located on a parcel that satisfies the 5 requirements specified in paragraph (7) of subdivision (a) of 6 Section 65913.4. 7 (5) The development is not adjoined to any site where more 8 than one-third of the square footage on the site is dedicated to 9 industrial use. For purposes of this subdivision, parcels separated 10 by only a street or highway shall be considered to be adjoined. 11 (6) The development projcct is located on a sitc that is 12 one-quarter acrc in size or greater. 13 (- 14 (6) One hundred percent of the development project's total units, 15 exclusive of a manager's unit or units, are for lower income 16 households,as defined by Section 50079.5 of the Health and Safety 17 Code, except that up to 20 percent of the total units in the 18 development may be for moderate-income households, as defined 19 in Section 50053 of the Health and Safety Code, and 5 percent of 20 the units may be for staff of the independent institution of higher 21 education or religious institution that owns the land. Units in the 22 development shall be offered at affordable housing cost,as defined 23 in Section 50052.5 of the Health and Safety Code,or at affordable 24 rent,as set in an amount consistent with the rent limits established 25 by the California Tax Credit Allocation Committee. The rent or 26 sales price for a moderate-income unit shall be affordable and shall 27 not exceed 30 percent of income for a moderate-income household 28 or homebuyer for a unit of similar size and bedroom count in the 29 same ZIP Code in the city,county, or city and county in which the 30 housing development is located. The applicant shall provide the 31 city, county, or city and county with evidence to establish that the 32 units meet the requirements of this paragraph.All units,exclusive 33 of any manager unit or units, shall be subject to a recorded deed 34 restriction as provided in this paragraph for at least the following 35 periods of time: 36 (A) Fifty-five years for units that are rented.However,the local 37 government may require that the rental units in the housing 38 development project be restricted to lower income and 39 moderate-income households for a longer period of time if that 40 restriction is consistent with all applicable regulatory requirements 97 197 -7— SB4 1 for state assistance. rented unless a local ordinance or the terms 2 of a federal, state, or local grant, tax credit, or other project 3 financing requires, as a condition of the development of residential 4 units, that the development include a certain percentage of units 5 that are affordable to, and occupied by, low-income, lower income, 6 very low income, or extremely low income households for a term 7 that exceeds 55 years for rental housing units. 8 (B) Forty-five years for units that arc owner occupied.Ilowever, 9 thc local government may require that owner-occupied units in , 10 thc housing development project be restricted to lower incomc and 11 moderate-income households for a longer period of time if that 12 restriction is consistent with all applicable regulatory requirements 13 for state assistance. owner-occupied or the first purchaser of each 14 unit participates in an equity sharing agreement as described in 15 subparagraph (C) of paragraph (2) of subdivision (c) of section 16 65915. 17 {8) 18 (7) The development project complies with all objective 19 development standards of the city or county that are not in conflict 20 with this section. 21 {9-) 22 (8) If the housing development project requires the demolition 23 of existing residential dwelling units,or is located on a site where 24 residential dwelling units have been demolished within the last 25 five years, the applicant shall comply with subdivision (d) of 26 Section 66300, as that section read as of January 1, 2024. 66300. 27 (-1-0) 28 (9) The applicant certifies to the local government that either 29 of the following is true for the housing development project, as 30 applicable: 31 (A) The entirety of the development project is a public work 32 for purposes of Chapter 1 (commencing with Section 1720)of Part 33 7 of Division 2 of the Labor Code. 34 (B) A development that contains more than 10 units and is not 35 in its entirety a public work for purposes of Chapter 1 (commencing 36 with Section 1720) of Part 7 of Division 2 of the Labor Code and 37 approved by a local government pursuant to Article 2(commencing 38 with Section 65912.110)of,or Article 3(commencing with Section 39 65912.120)of,Chapter 4.1 shall be subject to all of the following: 97 198 SB 4 -8- 1 (i) All construction workers employed in the execution of the 2 development shall be paid at least the general prevailing rate of 3 per diem wages for the type of work and geographic area, as 4 determined by the Director of Industrial Relations pursuant to 5 Sections 1773 and 1773.9 of the Labor Code, except that 6 apprentices registered in programs provided by the Chief of the 7 Division of Apprenticeship Standards may be paid at least the 8 applicable apprentice prevailing rate. 9 (ii) The development proponent shall ensure that the prevailing 10 wage requirement is included in all contracts for the performance 11 of the work for those portions of the development that are not a 12 public work. 13 (iii) All contractors and subcontractors for those portions of the 14 development that are not a public work shall comply with both of 15 the following: 16 (I) Pay to all construction workers employed in the execution 17 of the work at least the general prevailing rate of per diem wages, 18 except that apprentices registered in the programs approved by the 19 Chief of the Division of Apprenticeship Standards may be paid at 20 least the applicable apprentice prevailing rate. 21 (II) Maintain and verify payroll records pursuant to Section 22 1776 of the Labor Code and make those records available for 23 inspection and copying as provided in that section.This subclause 24 does not apply if all contractors and subcontractors performing 25 work on the development are subject to a project labor agreement 26 that requires the payment of prevailing wages to all construction 27 workers employed in the execution of the development and 28 provides for enforcement of that obligation through an arbitration 29 procedure. For purposes of this subclause, "project labor 30 agreement"has the same meaning as set forth in paragraph (1) of 31_ subdivision(b) of Section 2500 of the Public Contract Code. 32 (10) (A) The development proponent completes a phase I 33 environmental assessment, as defined in Section 25319.1 of the 34 Health and Safety Code.° 35 (B) If a recognized environmental condition is found, the 36 development proponent shall undertake a preliminary 37 endangerment assessment, as defined in Section 25319.5 of the 38 Health and Safety Code, prepared by an environmental assessor 39 to determine the existence of any release of a hazardous substance 40 on the site and to determine the potential for exposure of future 97 199 -9— SB 4 1 occupants to significant health hazards from any nearby property 2 or activity. 3 (i) If a release of hazardous substance is found to exist on the 4 site, the release shall be removed, or any significant effect of the 5 release shall be mitigated to a level of insignificance in compliance 6 with state and federal requirements. 7 (ii) If a potential for exposure to significant hazards from 8 surrounding properties or activities is found to exist, the effects 9 of the potential exposure shall be mitigated to a level of 10 insignificance in compliance with current state and federal 11 requirements. 12 (- j 13 (d) (1) The obligation of the contractors and subcontractors to 14 pay prevailing wages pursuant to this section may be enforced by 15 any of the following: 16 (A) The Labor Commissioner, through the issuance of a civil 17 wage and penalty assessment pursuant to Section 1741 of the Labor 18 Code,that may be reviewed pursuant to Section 1742 of the Labor 19 Code, within 18 months after the completion of the development. 20 (B) An underpaid worker through an administrative complaint 21 or civil action. 22 (C) A joint labor-management committee through a civil action 23 pursuant to Section 1771.2 of the Labor Code. 24 (2) If a civil wage and penalty assessment is issued pursuant to 25 this section,the contractor, subcontractor, and surety on a bond or 26 bonds issued to secure the payment of wages covered by the 27 assessment shall be liable for liquidated damages pursuant to 28 Section 1742.1 of the Labor Code. 29 (3) This subdivision does not apply if all contractors and 30 subcontractors performing work on the development are subject 31 to a project labor agreement that requires the payment of prevailing 32 wages to all construction workers employed in the execution of 33 the development and provides for enforcement of that obligation 34 through an arbitration procedure.For purposes of this subdivision, 35 "project labor agreement" has the same meaning as set forth in 36 paragraph (1) of subdivision (b) of Section 2500 of the Public 37 Contract Code. 38 {d) 39 (e) Notwithstanding subdivision (c) of Section 1773.1 of the. 40 Labor Code, the requirement that employer payments not reduce 97 200 SB4 —10- 1 the obligation to pay the hourly straight time or overtime wages 2 found to be prevailing does not apply to those portions of a 3 development that are not a public work if otherwise provided in a 4 bona fide collective bargaining agreement covering the worker. 5 (e-) 6 (f) The requirement of this section to pay at least the general 7 prevailing rate of per diem wages does not preclude use of an 8 alternative workweek schedule adopted pursuant to Section 511 9 or 514 of the Labor Code. 10 {#� 11 (g) In addition to the requirements of Section 65912.130, a 12 development of 50 or more housing units approved by a local 13 government pursuant to Article 2 (commencing with Section 14 65912.110)of,or Article 3 (commencing with Section 65912.120) 15 of, Chapter 4.1 shall meet all of the following labor standards: 16 (1) The development proponent shall require in contracts with 17 construction contractors and shall certify to the local government 18 that each contractor of any tier who will employ construction craft 19 employees or will let subcontracts for at least 1,000 hours shall 20 satisfy the requirements in paragraphs (2) and(3).A construction 21 contractor is deemed in compliance with paragraphs (2)and(3)if 22 it is signatory to a valid collective bargaining agreement that 23 requires use of registered apprentices and expenditures on health 24 care for employees and dependents. 25 (2) A contractor with construction craft employees shall either 26 participate in an apprenticeship program approved by the Division 27 of Apprenticeship Standards pursuant to Section 3075 of the Labor 28 Code,or request the dispatch of apprentices from a state-approved 29 apprenticeship program under the terms and conditions set forth 30 in Section 1777.5 of the Labor Code. A contractor without 31 construction craft employees shall show a contractual obligation 32 that its subcontractors comply with this subdivision. 33 (3) Each contractor with construction craft employees shall 34 make health care expenditures for each employee in an amount 35 per hour worked on the development equivalent to at least the 36 hourly pro rata cost of a Covered California Platinum-level plan 37 for two adults 40 years of age and two dependents 0 to 14 years 38 of age for the Covered California rating area in which the 39 development is located. A contractor without construction craft 40 employees shall show a contractual obligation that its 97 201 -11— SB4 1 subcontractors comply with this paragraph.Qualifying expenditures 2 shall be credited toward compliance with prevailing wage payment 3 requirements set forth in Section 65912.130. 4 (4) (A) The development proponent shall provide to the local 5 government, on a monthly basis while its construction contracts 6 on the development are being performed, a report demonstrating 7 compliance with paragraphs (2) and (3). The report shall be 8 considered public records under the California Public Records Act 9 (Division 10(commending with Section 7920.000)of Title 1),and 10 shall be open to public inspection. 11 (B) A development proponent that fails to provide the monthly 12 report shall be subject to a civil penalty for each month for which 13 the report has not been provided, in the amount of 10 percent of 14 the dollar value of construction work performed by that contractor 15 on the development in the month in question, up to a maximum 16 of ten thousand dollars($10,000).Any contractor or subcontractor 17 that fails to comply with paragraph(2) or(3) shall be subject to a 18 civil penalty of two hundred dollars($200)per day for each worker 19 employed in contravention of paragraph (2) or(3). 20 (C) Penalties may be assessed by the Labor Commissioner 21 within 18 months of completion of the development using the 22 procedures for issuance of civil wage and penalty assessments 23 specified in Section 1741 of the Labor Code,and may be reviewed 24 pursuant to Section 1742 of the Labor Code. Penalties shall be 25 deposited in the State Public Works Enforcement Fund established 26 pursuant to Section 1771.3 of the Labor Code. 27 (5) Each construction contractor shall maintain and verify 28 payroll records pursuant to Section 1776 of the Labor Code. Each 29 construction contractor shall submit payroll records directly to the 30 Labor Commissioner at least monthly in a format prescribed by 31 the Labor Commissioner in accordance with subparagraph(A) of 32 paragraph (3) of subdivision (a) of Section 1771.4 of the Labor 33 Code. The records shall include a statement of fringe benefits. 34 Upon request by a joint labor-management cooperation committee 35 established pursuant to the federal Labor Management Cooperation 36 Act of 1978 (29 U.S.C. Sec. 175a), the records shall be provided 37 pursuant to subdivision (e) of Section 1776 of the Labor Code. 38 (6) All construction contractors shall report any change in 39 apprenticeship program participation or health care expenditures 40 to the local government within 10 business days, and shall reflect 97 • 202 SB4 —12- 1 those changes on the monthly report. The reports shall be 2 considered public records pursuant to the California Public Records 3 Act(Division 10(commencing with Section 7920.000 of Title 1)) 4 and shall be open to public inspection. 5 (7) A joint labor-management cooperation committee established 6 pursuant to the federal Labor Management Cooperation Act of 7 1978 (29 U.S.C. Sec. 175a) shall have standing to sue a 8 construction contractor for failure to make health care expenditures 9 pursuant to paragraph (3) in accordance with Section 218.7 or 10 218.8 of the Labor Code. 11 {g) 12 (h) Notwithstanding any other provision of this section, a 13 development project that is eligible for approval as a use by right 14 pursuant to this section may include the following ancillary uses, 15 provided that those uses are limited to the ground floor of the 16 development: 17 (1) In a single-family residential zone, ancillary uses shall be 18 limited to uses that provide direct services to the residents of the 19 development and have a community benefit, including childcare 20 centers and community centers. 21 (2) In all other zones,the development may include commercial 22 uses that are permitted without a conditional use permit or planned 23 unit development permit. 24 (-l3) 25 (i) Notwithstanding any other provision of this section, a 26 development project that is eligible for approval as a use by right 27 pursuant to this section may include includes any religious 28 institutional use,or any use that was previously existing and legally 29 permitted by the city or county on the site, if all of the following 30 criteria are met: 31 (1) The total square footage of nonresidential space on the site 32 does not exceed the amount previously existing or permitted in a 33 conditional use permit. 34 (2) The total parking requirement for nonresidential space on 35 the site does not exceed the lesser of the amount existing or of the 36 amount required by a conditional use permit. 37 (3) The new uses abide by the same operational conditions as 38 contained in the pervious previous conditional use permit. 39 97 203 -13— SB4 1 (j) A housing development project that qualifies as a use by 2 right pursuant to subdivision (b) shall be allowed the following • 3 density, as applicable: 4 (1) (A) If the development project is located in a zone that 5 allows residential uses, the development project shall be allowed 6 a density of the applicable density deemed appropriate to 7 accommodate housing for lower income households identified in 8 subparagraph (B) of paragraph (3) of subdivision (c) of Section 9 65583.2 and a height of one story above the maximum 10 height otherwise applicable to the parcel. 11 (B) If the local government allows for greater residential density 12 on that parcel,or greater residential density or building heights on 13 an adjacent parcel,than permitted in subparagraph(A),the greater 14 density or building height shall apply. 15 (C) A housing development project that is located in a zone that 16 allows residential uses shall be eligible for a density 17 incentives or concession bonus, incentives, or concessions, or 18 waivers or reductions of development standards and parking ratios, 19 pursuant to Section 65915. 20 (2) (A) If the development project is located in a zone that does 21 not allow residential uses,the development project shall be allowed 22 a density of 40 units per acre and a height of one story above the 23 maximum height otherwise applicable to the parcel. 24 (B) If the local government allows for greater residential density 25 or building heights on that parcel, or an adjacent parcel, than 26 permitted in subparagraph (A), the greater density or building 27 height shall apply. A development project shall not use an 28 incentive, waiver, or concession to increase the height of the 29 development to greater than the height authorized under this 30 subparagraph. 31 (C) Except as provided in subparagraph (B) (B), a housing 32 development project that is located in a zone that does not allow 33 residential uses shall be eligible for a density bonus or other 34 incentives or concession bonus, incentives, or concessions, or 35 waivers or reductions of development standards and parking ratios, 36 pursuant to Section 65915. 37 ( 38 (k) (1) Except as provided in paragraph (2), the proposed 39 development shall provide off-street parking of up to one space 97 204 SB4 —14- 1 per unit,unless a state law or local ordinance provides for a lower 2 standard of parking,in which case the law or ordinance shall apply. 3 (2) A local government shall not impose a parking requirement 4 if either of the following is true: • 5 (A) The parcel is located within one-half mile walking distance 6 of public transit, either a high-quality transit corridor or a major 7 transit stop as defined in subdivision (b) of Section 21155 of the 8 Public Resources Code. 9 (B) There is a car share vehicle located within one block of the 10 parcel. 11 (k) 12 (l) (1) If the local government determines that the proposed 13 development is in conflict with any of the objective planning 14 standards specified in this section,it shall provide the development 15 proponent written documentation of which standard or standards 16 the development conflicts with, and an explanation for the reason 17 or reasons the development conflicts with that standard or 18 standards, within the following timeframes: 19 (A) Within 60 days of submittal of the development proposal 20 to the local government if the development contains 150 or fewer 21 housing units. 22 (B) Within 90 days of submittal of the development proposal 23 to the local government if the development contains more than 24 150 housing units. 25 (2) If the local government fails to provide the required 26 documentation pursuant to paragraph (1), the development shall 27 be deemed to satisfy the required objective planning standards. 28 (3) For purposes of this section, a development is consistent 29 with the objective planning standards if there is substantial 30 evidence that would allow a reasonable person to conclude that 31 the development is consistent with the objective planning standards. 32 (4) The determination of whether a proposed project submitted 33 pursuant to this section is or is not in conflict with the objective 34 planning standards is not a"project" as defined in Section 21065 35 of the Public Resources Code. 36 (5) Design review of the development may be conducted by the 37 local government's planning commission or any equivalent board 38 or commission responsible for review and approval of development 39 projects,or the city council or board of supervisors,as appropriate. 40 That design review shall be objective and be strictly focused on 97 205 -15— SB4 1 assessing compliance with criteria required for streamlined, 2 ministerial review of projects, as well as any reasonable objective 3 design standards published and adopted by ordinance or resolution 4 by a local jurisdiction before submittal of the development to the 5 local government,and shall be broadly applicable to developments 6 within the jurisdiction. That design review shall be completed as 7 follows and shall not in any way inhibit, chill, or preclude the 8 ministerial approval provided by this section or its effect, as 9 applicable: 10 (A) Within 90 days of submittal of the development proposal 11 to the local government pursuant to this section if the development 12 contains 150 or fewer housing units. 13 (B) Within 180 days of submittal of the development proposal 14 to the local government pursuant to this section if the development 15 contains more than 150 housing units. 16 (6) The local government shall ensure that the project satisfies 17 the requirements specified in subdivision (d) of Section 66300, 18 regardless of whether the development is within or not within an 19 affected city or within or not within an affected county. 20 (7) If the development is consistent with all objective 21 subdivision standards in the local subdivision ordinance, an 22 application for a subdivision pursuant to the Subdivision Map Act 23 (Division 2 (commencing with Section 66410)) shall be exempt 24 from the requirements of the California Environmental Quality 25 Act(Division 13 (commencing with Section 21000) of the Public 26 Resources Code). 27 (8) A local government's approval of a development pursuant 28 to this section shall, notwithstanding any other law, be subject to 29 the expiration timeframes specified in subdivision (f) of Section 30 65913.4. 31 (9) Any proposed modifications to a development project 32. approved pursuant to this section shall be undertaken pursuant to 33 subdivision(g) of Section 65913.4. 34 (10) A local government shall not adopt or impose any 35 requirement, including, but not limited to, increased fees or 36 inclusionary housing requirements,that applies to a project solely 37 or partially on the basis that the project is eligible to receive 38 streamlined, ministerial review pursuant to this section. 97 206 SB4 —16- 1 (11) A local government shall issue a subsequent permit required 2 for a development approved under this section pursuant to 3 paragraph (2) of subdivision (h) of Section 65913.4. 4 (12) A public improvement that is necessary to implement a 5 development that is approved pursuant to this section shall be 6 undertaken pursuant to paragraph(3)of subdivision(h)of Section 7 65913.4. 8 0) 9 (m) The Legislature finds and declares that ensuring residential 10 development at greater density on land owned by independent 11 institutions of higher education and religious institutions is a matter 12 of statewide concern and is not a municipal affair as that term is 13 used in Section 5 of Article XI of the California Constitution. 14 Therefore,this section applies to all cities,including charter cities. 15 (m) 16 (n) The provisions of paragraph (3) of subdivision (f) (g) 17 concerning health care expenditures are distinct and severable 18 from the remaining provisions of this section. However, all other 19 provisions of subdivision (f)(g) are material and integral parts of 20 this section and are not severable. If any provision of subdivision 21 (f),(g), exclusive of those included in paragraph(3),is held invalid, 22 the entire section shall be invalid and shall not be given effect. 23 SEC. 2. No reimbursement is required by this act pursuant to 24 Section 6 of Article XIIIB of the California Constitution because 25 a local agency or school district has the authority to levy service 26 charges, fees, or assessments sufficient to pay for the program or 27 level of service mandated by this act,within the meaning of Section 28 17556 of the Government Code. 0 97 207 May 3, 2023 The Honorable Scott Wiener 1021 0 Street,Suite 8620 Sacramento,CA 95814-4900 • RE: SB 4—Planning and Zoning: Housing Development: Higher Education Institutions and Religious Institutions Notice of Opposition Dear Senator Wiener: The City of Huntington Beach writes to express our opposition to SB 4 which would limit local control over planning,zoning, and approving new housing. SB 4 would require that a housing development project be a use by right upon the request of an applicant who submits an application for streamline approval on any land owned by an independent institution of higher education or religious institution. We believe that local governments should have the authorization to enact policies that shape development tailored to its community.SB 4 overrides these local preferences by directing local officials to ministerially approve housing on properties that are zoned for other uses. By-right legislation limits cities' discretionary review processes for local development projects, inherently restricting local representatives' ability to directly respond to the needs and interests of their constituents. For these reasons,the City of Huntington Beach respectfully opposes SB 4. Sincerely,. Tony Strickland Mayor City of Huntington Beach Cc: Senator Janet Nguyen Senator Dave Min Assembly Member Diane Dixon ACC-OC Board of Directors (via email) Bismarck Obando, Director of Public Affairs(bismarck@calcities.org) League of California Cities(cityletters@calcities.org) 208 AMENDED IN ASSEMBLY MARCH 28, 2023 CALIFORNIA LEGISLATURE-2023-24 REGULAR SESSION ASSEMBLY BILL No. 1485 Introduced by Assembly Member Haney (Principal coauthor: Senator Wiener) February 17, 2023 An act to amend Section 65585 of the Government Code,relating to housing. LEGISLATIVE COUNSEL'S DIGEST AB 1485, as amended, Haney. Housing element: enforcement: Attorney General. The Planning and Zoning Law requires each county and city to adopt a comprehensive,long-term general plan for the physical development of the county or city and requires that general plan to include, among other mandatory elements, a housing element. Existing law authorizes the dcpartmcnt Department of Housing and Community Development to notify the office of the Attorney General, that a city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to the housing element does not substantially comply with specified provisions of the Planning and Zoning Law, or that the local government has taken action or failed to act in violation of specified provisions of law relating to housing, including, among others, the Housing Accountability Act, the Density Bonus Law, and the Housing Crisis Act of 2019. Existing law provides that an intervention takes place when a nonparty becomes a party to an action or proceeding between other persons by, among other things,joining a plaintiff in claiming what is sought by the complaint. Existing law requires the court to permit a nonparty to 98 209 AB 1485 —2— intervene in the action or proceeding if a provision of law confers an unconditional right to intervene. This bill would permit the Office of the Attorney General to intervene as a matter of unconditional right in any legal action addressing a violation of the housing laws for which the department may notify the office of the Attorney Cenral that a city, county, or city and county has violated, as described above. This bill would permit both the department and the office of the Attorney General to intervene as a matter of unconditional right in any legal action addressing a violation of the specified housing laws described above, including, among others, the Housing Accountability Act, the Density Bonus Law, and the Housing Crisis Act of 2019. 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. Section 65585 of the Government Code is 2 amended to read: 3 65585. (a) In the preparation of its housing element,each city 4 and county shall consider the guidelines adopted by the department 5 pursuant to Section 50459 of the Health and Safety Code. Those 6 guidelines shall be advisory to each city or county in the 7 preparation of its housing element. 8 (b) (1) At least 90 days prior to adoption of a revision of its 9 housing element pursuant to subdivision (e) of Section 65588, or 10 at least 60 days prior to the adoption of a subsequent amendment 11 to this element, the planning agency shall submit a draft element 12 revision or draft amendment to the department. The local 13 government of the planning agency shall make the first draft 14 revision of a housing element available for public comment for at 15 least 30 days and, if any comments are received, the local 16 government shall take at least 10 business days after the 30-day 17 public comment period to consider and incorporate public 18 comments into the draft revision prior to submitting it to the 19 department. For any subsequent draft revision, the local 20 government shall post the draft revision on its internet website and 21 shall email a link to the draft revision to all individuals and 22 organizations that have previously requested notices relating to 98 210 -3— AB 1485 1 the local government's housing element at least seven days before 2 submitting the draft revision to the department. 3 (2) The planning agency staff shall collect and compile the 4 public comments regarding the housing element received by the 5 city, county, or city and county, and provide these comments to 6 each member of the legislative body before it adopts the housing 7 element. 8 (3) The department shall review the draft and report its written 9 findings to the planning agency within 90 days of its receipt of the 10 first draft submittal for each housing element revision pursuant to 11 subdivision (e) of Section 65588 or within 60 days of its receipt 12 of a subsequent draft amendment or an adopted revision or adopted 13 amendment to an element. The department shall not review the 14 first draft submitted for each housing element revision pursuant 15 to subdivision(e)of Section 65588 until the local government has 16 made the draft available for public comment for at least 30 days 17 and, if comments were received, has taken at least 10 business 18 days to consider and incorporate public comments pursuant to 19 paragraph(1). 20 (c) In the preparation of its findings,the department may consult 21 with any public agency, group, or person. The department shall 22 receive and consider any written comments from any public 23 agency, group, or person regarding the draft or adopted element 24 or amendment under review. 25 (d) In its written findings, the department shall determine 26 whether the draft element or draft amendment substantially 27 complies with this article. 28 (e) Prior to the adoption of its draft element or draft amendment, 29 the legislative body shall consider the findings made by the 30 department. If the department's findings are not available within 31 the time limits set by this section, the legislative body may act 32 without them. 33 (f) If the department finds that the draft element or draft 34 amendment does not substantially comply with this article, the 35 legislative body shall take one of the following actions: 36 (1) Change the draft element or draft amendment to substantially 37 comply with this article. 38 (2) Adopt the draft element or draft amendment without changes. 39 The legislative body shall include in its resolution of adoption 40 written findings--h that explain the reasons the legislative body 98 211 AB 1485 —4— 1 believes that the draft element or draft amendment substantially 2 complies with this article article, despite the findings of the 3 department. 4 (g) Promptly following the adoption of its element or 5 amendment, the planning agency shall submit a copy to the 6 department. 7 (h) The department shall, within 90 days, review adopted 8 housing elements or amendments and report its findings to the 9 planning agency. 10 (i) (1) (A) The department shall review any action or failure 11 to act by the city, county, or city and county that it determines is 12 inconsistent with an adopted housing element or Section 65583, 13 including any failure to implement any program actions included 14 in the housing element pursuant to Section 65583.The department 15 shall issue written findings to the city, county, or city and county 16 as to whether the action or failure to act substantially complies 17 with this article, and provide a reasonable time no longer than 30 18 days for the city, county, or city and county to respond to the 19 findings before taking any other action authorized by this section, 20 including the action authorized by subparagraph (B). 21 (B) If the department finds that the action or failure to act by 22 the city, county, or city and county does not substantially comply 23 with this article,and if it has issued findings pursuant to this section 24 that an amendment to the housing element substantially complies 25 with this article, the department may revoke its findings until it 26 determines that the city, county, or city and county has come into 27 compliance with this article. 28 (2) The department may consult with any local government, 29 public agency, group, or person, and shall receive and consider 30 any written comments from any public agency, group, or person, 31 regarding the action or failure to act by the city, county, or city 32 and county described in paragraph(1),in determining whether the 33 housing element substantially complies with this article. 34 (j) The department shall notify the city, county, or city and 35 county and may notify the office of the Attorney General that the 36 city, county, or city and county is in violation of state law if the 37 department finds that the housing element or an amendment to this 38 element, or any action or failure to act described in subdivision 39 (i),does not substantially comply with this article or that any local 40 government has taken an action in violation of the following: 98 212 -5— AB 1485 1 (1) Housing Accountability Act(Section 65589.5). 2 (2) Section 65863. . 3 (3) Chapter 4.3 (commencing with Section 65915). 4 (4) Section 65008. 5 (5) Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019, 6 Sections 65941.1, 65943, and 66300). 7 (6) Section 8899.50. 8 (7) Section 65913.4. • 9 (8) Article 11 (commencing with Section 65650). 10 (9) Article 12 (commencing with Section 65660). 11 (10) Section 65913.11. 12 (11) Section 65400. 13 (12) Section 65863.2. 14 (13) Chapter 4.1 (commencing with Section 65912.100). 15 (k) Commencing July 1, 2019, prior to the Attorney General 16 bringing any suit for a violation of the provisions identified in 17 subdivision(j)related to housing element compliance and seeking 18 remedies available pursuant to this subdivision, the department 19 shall offer the jurisdiction the opportunity for two meetings in 20 person or via telephone to discuss the violation, and shall provide 21 the jurisdiction written findings regarding the violation. This 22 paragraph does not affect any action filed prior to the effective 23 date of this section.The requirements set forth in this subdivision 24 do not apply to any suits brought for a violation or violations of 25 paragraphs (1) and (3) to (9), inclusive, of subdivision (j). 26 (l) In any action or special proceeding brought by the Attorney. 27 General relating to housing element compliance pursuant to a 28 notice or referral under subdivision(j),the Attorney General may 29 request,upon a finding of the court that the housing element does 30 not substantially comply with the requirements of this article 31 pursuant to this section, that the court issue an order or judgment 32 directing the jurisdiction to bring its housing element into 33 substantial compliance with the requirements of this article. The 34 court shall retain jurisdiction to ensure that its order or judgment 35 is carried out. If a court determines that the housing element of 36 the jurisdiction substantially complies with this article, it shall 37 have the same force and effect, for purposes of eligibility for any 38 financial assistance that requires a housing element in substantial 39 compliance and for purposes of any incentives provided under • 98 • 213 AB 1485 —6— 1 Section 65589.9, as a determination by the department that the 2 housing element substantially complies with this article. 3 (1) If the jurisdiction has not complied with the order or 4 judgment after 12 months, the court shall conduct a status 5 conference.Following the status conference,upon a determination 6 that the jurisdiction failed to comply with the order or judgment 7 compelling substantial compliance with the requirements of this 8 article,the court shall impose fines on the jurisdiction,which shall 9 be deposited into the Building Homes and Jobs Trust Fund. Any 10 fine levied pursuant to this paragraph shall be in a minimum 11 amount of ten thousand dollars($10,000)per month,but shall not 12 exceed one hundred thousand dollars($100,000)per month,except 13 as provided in paragraphs (2) and (3). In the event that the 14 jurisdiction fails to pay fines imposed by the court in full and on 15 time,the court may require the Controller to intercept any available 16 state and local funds and direct such funds to the Building Homes 17 and Jobs Trust Fund to correct the jurisdiction's failure to pay. 18 The intercept of the funds by the Controller for this purpose shall 19 not violate any provision of the California Constitution. 20 (2) If the jurisdiction has not complied with the order or 21 judgment after three months following the imposition of fees 22 described in paragraph (1), the court shall conduct a status 23 conference.Following the status conference,if the court finds that 24 the fees imposed pursuant to paragraph(1)are insufficient to bring 25 the jurisdiction into compliance with the order or judgment, the 26 court may multiply the fine determined pursuant to paragraph (1) 27 by a factor of three. In the event that the jurisdiction fails to pay 28 fines imposed by the court in full and on time, the court may 29 require the Controller to intercept any available state and local 30 funds and direct such funds to the Building Homes and Jobs Trust 31 Fund to correct the jurisdiction's failure to pay. The intercept of 32 the funds by the Controller for this purpose shall not violate any 33 provision of the California Constitution. 34 (3) If the jurisdiction has not complied with the order or 35 judgment six months following the imposition of fees described 36 in paragraph(1),the court shall conduct a status conference.Upon 37 a determination that the jurisdiction failed to comply with the order 38 or judgment, the court may impose the following: 39 (A) If the court finds that the fees imposed pursuant to 40 paragraphs(1)and(2)are insufficient to bring the jurisdiction into 98 • 214 -7— AB 1485 1 compliance with the order or judgment, the court may multiply 2 the fine determined pursuant to paragraph (1) by a factor of six. 3 In the event that the jurisdiction fails to pay fines imposed by the 4 court in full and on time, the court may require the Controller to 5 intercept any available state and local funds and direct such funds 6 to the Building Homes and Jobs Trust Fund to correct the 7 jurisdiction's failure to pay. The intercept of the funds by the 8 Controller for this purpose shall not violate any provision of the 9 California Constitution. 10 (B) The court may order remedies available pursuant to Section 11 564 of the Code of Civil Procedure, under which the agent of the 12 court may take all governmental actions necessary to bring the 13 jurisdiction's housing element into substantial compliance pursuant 14 to this article in order to remedy identified deficiencies.The court 15 shall determine whether the housing element of the jurisdiction 16 substantially complies with this article and, once the court makes . 17 that determination, it shall have the same force and effect, for all 18 purposes, as the department's determination that the housing 19 element substantially complies with this article.An agent appointed 20 pursuant to this paragraph shall have expertise in planning in 21 California. 22 (4) This subdivision does not limit a court's discretion to apply 23 any and all remedies in an action or special proceeding for a 24 violation of any law identified in subdivision (j). 25 (m) In determining the application of the remedies available 26 under subdivision (l), the court shall consider whether there are 27 any mitigating circumstances delaying the jurisdiction from coming 28 into compliance with state housing law. The court may consider 29 whether a city, county, or city and county is making a good faith 30 effort to come into substantial compliance or is facing substantial 31 undue hardships. 32 (n) Nothing in this section shall limit the authority of the office 33 of the Attorney General to bring a suit to enforce state law in an 34 independent capacity.The office of the Attorney General may seek 35 all remedies available under law including those set forth in this 36 section, and shall be permitted to intervene as a matter of 37 unconditional right, under subparagraph (A) of paragraph (1) of 38 subdivision (d) of Section 387 of the Code of Civil Procedure, in 39 any legal action addressing a violation of any law set forth in 40 subdivision(j). section. 98 215 AB 1485 —8— 1 (o) Notwithstanding Sections 11040 and 11042,if the Attorney 2 General declines to represent the.department in any action or 3 special proceeding brought pursuant to a notice or referral under 4 subdivision (j) (j), the department may appoint or contract with 5 other counsel for purposes of representing the department in the 6 action or special proceeding. 7 (p) Notwithstanding any other provision of law, the statute of 8 limitations set forth in subdivision (a) of Section 338 of the Code 9 of Civil Procedure shall apply to any action or special proceeding 10 brought by the Office office of the Attorney General or pursuant 11 to a notice or referral under subdivision (j), or by the department 12 pursuant to subdivision (o). 13 (q) In any suit brought to enforce either this article or any state 14 law listed under subdivision (j), the department and the office of 15 the Attorney General shall each have the unconditional right to 16 intervene under subparagraph(A)of paragraph(1)of subdivision 17 (d) of Section 387 of the Code of Civil Procedure. The office of 18 the Attorney General shall have this unconditional right whether 19 intervening in an independent capacity or pursuant to a notice or 20 referral from the department. 0 98 216 May 3, 2023 The Honorable D Haney California State Assembly 1021 0 Street,Suite 5310 P.O. Box 942849 Sacramento, CA 94249-0017 RE:OPPOSE AB 1485(Haney)—Housing element: enforcement:Attorney General Dear Senator Haney, This bill would permit the Attorney General and the Department of Housing and Community Development to intervene as a matter of unconditional right in any legal action addressing housing laws.The right to intervene as a matter of unconditional right should certainly not be extended. For those reasons,the City of Huntington Beach opposes AB 1485. Should you have any questions about our position on this bill or about ACC-OC, please contact Ursula Luna-Reynosa, Community Development Director,at 714-536-5276 or Ursula.Luna-Reynosa@surfcity-hb.org. Sincerely, Tony Strickland Mayor CC: Senator Janet Nguyen Senator Dave Min Assembly Member Chris Holden, Chair of the Appropriations Committee Assembly Member Diane Dixon Assembly Member Tri Ta ACC-OC Board of Directors(via email) Bismarck Obando, Director of Public Affairs(bismarck@calcities.org) League of California Cities (cityletters@calcities.org) 217 AMENDED IN ASSEMBLY APRIL 12, 2023 AMENDED IN ASSEMBLY MARCH 16, 2023 CALIFORNIA LEGISLATURE-2023-24.REGULAR SESSION ASSEMBLY BILL No. 68 Introduced by Assembly Member Ward December 8, 2022 An act to amend Section 65585 of, to add Sections 65040.18, 65914.7.5,and 66425.5 to,and to add Chapter 4.3.1 (commencing with Section 65918.5) to Division 1 of Title 7 of, the Government Code, relating to land use. LEGISLATIVE COUNSEL'S DIGEST AB 68,as amended,Ward.Land use: streamlined housing approvals: density, subdivision, and utility approvals. Existing law,the Planning and Zoning Law,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. This bill would require a local government to approve a proposed housing development pursuant to a streamlined, ministerial approval process if the development meets certain objective planning standards, including,but not limited to,a requirement that the proposed parcel for the development be a climate-smart parcel,as described,or be included in the applicable region's sustainable communities strategy as a priority development area. The bill would set forth procedures for approving these developments and would set forth various limitations for these developments. The bill would authorize the Department of Housing 97 218 AB 68 —l— and Community Development to review, adopt, amend, and repeal guidelines, rules, and regulations to implement uniform standards or criteria that supplement or clarify the terms, references, or standards set forth by this process. Existing law requires the department to notify a city, county, or city and county, and authorizes the department to notify the office of the Attorney General,that the city,county,or city and county is in violation of state law if the department finds that the housing element or an amendment to the housing element does not substantially comply with specified provisions of the Planning and Zoning Law, or that the local government has taken action in violation of specified provisions of law relating to housing,including,among others,the Housing Accountability Act, the Density Bonus Law, and the Housing Crisis Act of 2019. This bill would add the streamlining procedures added by the bill to the list of laws subject to this notification requirement. 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.Existing law also sets forth various procedures related to land use actions and utility service in local jurisdictions, including, but not limited to, a requirement that a tentative a final map be made for certain housing projects, including all subdivisions creating 5 or more parcels. This bill would prohibit a county,or city if certain conditions are met, from increasing the planned density on climate resilient lands, as defined, from approving any tentative, final, or parcel maps for the subdivision of property within climate risk lands or climate refugia lands, as defined, and from approving an extension of water or sewer services on climate resilient lands unless specified planning requirements or conditions are met. The bill would require, as part of those requirements or conditions, the county or city to make certain findings that are confirmed by the Office of Planning and Research. The bill would set forth procedures for requesting those findings from the office. The bill would make conforming changes. By imposing additional duties on local officials,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. 97 219 -3— AB 68 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 65040.18 is added to the Government 2 Code, to read: 3 65040.18. (a) A county may submit an application to the office, 4 in the form and manner prescribed by the office,for the following 5 purposes: 6 (1) Receiving findings from the office for purposes of 7 subparagraphs (A) and (B) of paragraph (3) of subdivision (c) of 8 Section 65918.5.03. 9 (2) Receiving findings from the office for purposes of 10 subparagraph (D) of paragraph (3) of subdivision (c) of Section 11 65918.5.03. 12 (b) The office shall, in consultation with the Department of 13 . Housing and Community Development and the Natural Resources 14 Agency, review applications submitted by a county pursuant to 15 subdivision (a). 16 (c) (1) For applications submitted pursuant to paragraph(2)of 17 subdivision(a),the office shall issue findings in favor of the county 18 for purposes of subparagraph (D) of paragraph (3) of subdivision 19 (c) of Section 65918.5.03 if all of the following apply: 20 (A) There is a lack of sufficient acreage in existing communities 21 for the proposed residential development that is necessary to meet 22 the county's regional housing need. 23 (B) Acres that may be designated in existing communities for 24 the proposed residential development for purposes of meeting the 25 county's regional housing need are unlikely to be developed in the 26 required timeframe to meet the county's regional housing need. 27 (C) The county cannot redesignate sufficient acreage on lands 28 outside of climate resilient lands to meet the county's regional 29 housing need because the redesignation of land is infeasible or 30 because there is insufficient acreage available for redesignation.. 97 220 AB 68 —4- 1 (2) For purposes of this subdivision, "proposed residential 2 development" means the development related to the county's 3 increase in planned density, subdivision of property, or extension 4 of water or sewer service pursuant to Chapter 4.3.1 (commencing 5 with Section 65918.5). 6 (d) The office may review,adopt,amend,and repeal guidelines 7 to implement uniform standards or criteria that supplement or 8 clarify the terms,references, or standards set forth in this section. 9 (e) For purposes of this section,the definitions in Chapter 4.3.1 10 (commencing with Section 65918.5) apply. 11 (f) References to "county" in this section shall also refer to a 12 city when related to lands subject to Section 65918.5.04. 13 SEC. 2. Section 65585 of the Government Code is amended 14 to read: 15 65585. (a) In the preparation of its housing element,each city 16 and county shall consider the guidelines adopted by the department 17 pursuant to Section 50459 of the Health and Safety Code. Those 18 guidelines shall be advisory to each city or county in the 19 preparation of its housing element. 20 (b) (1) At least 90 days prior to adoption of a revision of its 21 housing element pursuant to subdivision (e) of Section 65588, or 22 at least 60 days prior to the adoption of a subsequent amendment 23 to this element, the planning agency shall submit a draft element 24 revision or draft amendment to the department. The local 25 government of the planning agency shall make the first draft 26 revision of a housing element available for public comment for at 27 least 30 days and, if any comments are received, the local 28 government shall take at least 10 business days after the 30-day 29 public comment period to consider and incorporate public 30 comments into the draft revision prior to submitting it to the 31 department. For any subsequent draft revision, the local 32 government shall post the draft revision on its internet website and 33 shall email a link to the draft revision to all individuals and 34 organizations that have previously requested notices relating to 35 the local government's housing element at least seven days before 36 submitting the draft revision to the department. 37 (2) The planning agency staff shall collect and compile the 38 public comments regarding the housing element received by the 39 city, county, or city and county, and provide these comments to 97 221 -5— AB 68 1 each member of the legislative body before it adopts the housing 2 element. 3 (3) The department shall review the draft and report its written 4 findings to the planning agency within 90 days of its receipt of the 5 first draft submittal for each housing element revision pursuant to 6 subdivision (e) of Section 65588 or within 60 days of its receipt 7 of a subsequent draft amendment or an adopted revision or adopted 8 amendment to an element. The department shall not review the 9 first draft submitted for each housing element revision pursuant 10 to subdivision(e)of Section 65588 until the local government has 11 made the draft available for public comment for at least 30 days 12 and, if comments were received, has taken at least 10 business 13 days to consider and incorporate public comments pursuant to 14 paragraph (1). 15 (c) In the preparation of its findings,the department may consult 16 with any public agency, group, or person. The department shall 17 receive and consider any written comments from any public 18 agency, group, or person regarding the draft or adopted element 19 or amendment under review. 20 (d) In its written findings, the department shall determine 21 whether the draft element or draft amendment substantially 22 complies with this article. 23 (e) Prior to the adoption of its draft element or draft amendment, 24 the legislative body shall consider the findings made by the 25 department. If the department's findings are not available within 26 the time limits set by this section, the legislative body may act 27 without them. 28 (f) If the department finds that the draft element or draft 29 amendment does not substantially comply with this article, the 30 legislative body shall take one of the following actions: 31 (1) Change the draft element or draft amendment to substantially 32 comply with this article. 33 (2) Adopt the draft element or draft amendment without changes. 34 The legislative body shall include in its resolution of adoption 35 written findings which explain the reasons the legislative body 36 believes that the draft element or draft amendment substantially 37 complies with this article despite the findings of the department. 38 (g) Promptly following the adoption of its element or 39 amendment, the planning agency shall submit a copy to the 40 department. 97 222 AB 68 —6- 1 (h) The department shall, within 90 days, review adopted 2 housing elements or amendments and report its findings to the 3 planning agency. • 4 (i) (1) (A) The department shall review any action or failure 5 to act by the city, county, or city and county that it determines is 6 inconsistent with an adopted housing element or Section 65583, 7 including any failure to implement any program actions included 8 in the housing element pursuant to Section 65583.The department 9 shall issue written findings to the city, county, or city and county 10 as to whether the action or failure to act substantially complies 11 with this article, and provide a reasonable time no longer than 30 12 days for the city, county, or city and county to respond to the 13 findings before taking any other action authorized by this section, 14 including the action authorized by subparagraph (B). 15 (B) If the department finds that the action or failure to act by 16 the city, county, or city and county does not substantially comply 17 with this article,and if it has issued findings pursuant to this section 18 that an amendment to the housing element substantially complies 19 with this article, the department may revoke its findings until it 20 determines that the city, county, or city and county has come into 21 compliance with this article. 22 (2) The department may consult with any local government, 23 public agency, group, or person, and shall receive and consider 24 any written comments from any public agency, group, or person, 25 regarding the action or failure to act by the city, county, or city 26 and county described in paragraph(1),in determining whether the 27 housing element substantially complies with this article. 28 (j) The department shall notify the city, county, or city and 29 county and may notify the office of the Attorney General that the 30 city, county, or city and county is in violation of state law if the 31 department finds that the housing element or an amendment to this 32 element, or any action or failure to act described in subdivision 33 (i),does not substantially comply with this article or that any local 34 government has taken an action in violation of the following: 35 (1) Housing Accountability Act(Section 65589.5). 36 (2) Section 65863. 37 (3) Chapter 4.3 (commencing with Section 65915). 38 (4) Section 65008. 39 (5) Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019, 40 Sections 65941.1, 65943, and 66300). 97 223 -7— AB 68 1 (6) Section 8899.50. 2 (7) Section 65913.4. 3 (8) Article 11 (commencing with Section 65650). 4 (9) Article 12 (commencing with Section 65660). 5 (10) Section 65913.11. 6 (11) Section 65400. 7 (12) Section 65863.2. 8 (13) Chapter 4.1 (commencing with Section 65912.100). 9 (14) Section 65914.7.5. 10 (k) Commencing July 1, 2019, prior to the Attorney General 11 bringing any suit for a violation of the provisions identified in 12 subdivision(j)related to housing element compliance and seeking 13 remedies available pursuant to this subdivision, the department 14 shall offer the jurisdiction the opportunity for two meetings in 15 person or via telephone to discuss the violation, and shall provide 16 the jurisdiction written findings regarding the violation. This 17 paragraph does not affect any action filed prior to the effective 18 date of this section.The requirements set forth in this subdivision 19 do not apply to any suits brought for a violation or violations of 20 paragraphs (1) and (3) to (9), inclusive, of subdivision (j). 21 (l) In any action or special proceeding brought by the Attorney 22 General relating to housing element compliance pursuant to a 23 notice or referral under subdivision (j), the Attorney General may 24 request,upon a finding of the court that the housing element does 25 not substantially comply with the requirements of this article 26 pursuant to this section, that the court issue an order or judgment 27 directing the jurisdiction to bring its housing element into 28 substantial compliance with the requirements of this article. The 29 court shall retain jurisdiction,to ensure that its order or judgment 30 is carried out. If a court determines that the housing element of 31 the jurisdiction substantially complies with this article, it shall 32 have the same force and effect, for purposes of eligibility for any 33 financial assistance that requires a housing element in substantial 34 compliance and for purposes of any incentives provided under 35 Section 65589.9, as a determination by the department that the 36 housing element substantially complies with this article. 37 (1) If the jurisdiction has not complied with the order or 38 judgment after 12 months, the court shall conduct a status 39 conference.Following the status conference,upon a determination 40 that the jurisdiction failed to comply with the order or judgment 97 224 AB 68 —8- 1 compelling substantial compliance with the requirements of this 2 article,the court shall impose fines on the jurisdiction,which shall 3 be deposited into the Building Homes and Jobs Trust Fund. Any 4 fine levied pursuant to this paragraph shall be in a minimum 5 amount of ten thousand dollars ($10,000)per month,but shall not 6 exceed one hundred thousand dollars($100,000)per month,except 7 as provided in paragraphs (2) and (3). In the event that the 8 jurisdiction fails to pay fines imposed by the court in full and on 9 time,the court may require the Controller to intercept any available 10 state and local funds and direct such funds to the Building Homes 11 and Jobs Trust Fund to correct the jurisdiction's failure to pay. • 12 The intercept of the funds by the Controller for this purpose shall 13 not violate any provision of the California Constitution. 14 (2) If the jurisdiction has not complied with the order or 15 judgment after three months following the imposition of fees 16 described in paragraph (1), the court shall conduct a status 17 conference.Following the status conference,if the court finds that 18 the fees imposed pursuant to paragraph(1)are insufficient to bring 19 the jurisdiction into compliance with the order or judgment, the 20 court may multiply the fine determined pursuant to paragraph(1) 21 by a factor of three. In the event that the jurisdiction fails to pay 22 fines imposed by the court in full and on time, the court may 23 require the Controller to intercept any available state and local 24 funds and direct such funds to the Building Homes and Jobs Trust 25 Fund to correct the jurisdiction's failure to pay. The intercept of 26 the funds by the Controller for this purpose shall not violate any 27 provision of the California Constitution. 28 (3) If the jurisdiction has not complied with the order or 29 judgment six months following the imposition of fees described 30 in paragraph(1),the court shall conduct a status conference.Upon 31 a determination that the jurisdiction failed to comply with the order 32 or judgment, the court may impose the following: 33 (A) If the court finds that the fees imposed pursuant to 34 paragraphs(1)and(2)are insufficient to bring the jurisdiction into 35 compliance with the order or judgment, the court may multiply 36 the fine determined pursuant to paragraph (1) by a factor of six. 37 In the event that the jurisdiction fails to pay fines imposed by the 38 court in full and on time, the court may require the Controller to 39 intercept any available state and local funds and direct such funds 40 to the Building Homes and Jobs Trust Fund to correct the 97 225 -9— AB 68 1 jurisdiction's failure to pay. The intercept of the funds by the 2 Controller for this purpose shall not violate any provision of the 3 California Constitution. 4 (B) The court may order remedies available pursuant to Section 5 564 of the Code of Civil Procedure, under which the agent of the 6 court may take all governmental actions necessary to bring the 7 jurisdiction's housing element into substantial compliance pursuant 8 to this article in order to remedy identified deficiencies.The court 9 shall determine whether the housing element of the jurisdiction 10 substantially complies with this article and, once the court makes 11 that determination, it shall have the same force and effect, for all 12 purposes, as the department's determination that the housing 13 element substantially complies with this article.An agent appointed 14 pursuant to this paragraph shall have expertise in planning in 15 California. 16 (4) This subdivision does not limit a court's discretion to apply 17 any and all remedies in an action or special proceeding for a 18 violation of any law identified in subdivision (j). 19 (m) In determining the application of the remedies available 20 under subdivision (l), the court shall consider whether there are 21 any mitigating circumstances delaying the jurisdiction from coming 22 into compliance with state housing law. The court may consider 23 whether a city, county, or city and county is making a good faith 24 effort to come into substantial compliance or is facing substantial 25 undue hardships. 26 (n) Nothing in this section shall limit the authority of the office 27 of the Attorney General to bring a suit to enforce state law in an 28 independent capacity.The office of the Attorney General may seek 29 all remedies available under law including those set forth in this 30 section. 31 (o) Notwithstanding Sections 11040 and 11042,if the Attorney 32 General declines to represent the department in any action or 33 special proceeding brought pursuant to a notice or referral under 34 subdivision (j)the department may appoint or contract with other 35 counsel for purposes of representing the department in the action 36 or special proceeding. 37 (p) Notwithstanding any other provision of law, the statute of 38 limitations set forth in subdivision(a) of Section 338 of the Code 39 of Civil Procedure shall apply to any action or special proceeding 40 brought by the Office of the Attorney General or pursuant to a 97 226 AB 68 —10— 1 notice or referral under subdivision (j), or by the department 2 pursuant to subdivision (o). 3 SEC. 3. Section 65914.7.5 is added to the Government Code, 4 to read: 5 65914.7.5. (a) For purposes of this section, the following 6 definitions apply: 7 (1) "Climate smart parcel" means a parcel located in a highest 8 resource, high resource, or moderate resource high-resource, or 9 moderate-resource area, as categorized by the California Tax 10 Credit Allocation Committee's opportunity maps, that meets 11 satisfies at least one : mobility 12 indicator. 13 (A) The parcel is located within one-half mile walking distance 14 of either a high-quality transit corridor or a major transit stop. 15 (B) The parcel is located in a very low vehicle travel area. 16 (C) The parcel is located within a mile from a cluster of six or 17 more of the following: 18 (i) Restaurants. 19 (ii) Bars. 20 (iii) Coffee shops. 21 (iv) Supermarkets. 22 (v) Grocery stores. 23 (vi) Hardware stores. 24 (vii) Parks. 25 (viii) Pharmacy. 26 (ix) Drugstore. 27 (2) "High-quality transit corridor" has the same meaning as 28 defined in subdivision(b)of Section 21155 of the Public Resources 29 Code. 30 (3) "Housing development" has the same meaning as defined 31 in paragraph (2) of subdivision(h) of Section 65589.5. 32 (4) "Local agency" means a city, county, or city and county, 33 whether general law or chartered. 34 (5) "Major transit stop" has the same meaning as defined in 35 Section 21064.3 subdivision (b) of Section 21155 of the Public 36 Resources Code. 37 (6) "Mobility indicator" means any of the following: 38 (A) The parcel is located within one-half mile walking distance 39 of either a high-quality transit corridor or a major transit stop. 40 (B) The parcel is located in a very low vehicle travel area. 97 227 -11— AB 68 1 (C) The parcel is located within one mile from a cluster of six 2 or more of the following: 3 (i) Restaurant. 4 (ii) Bar. 5 (iii) Coffee shop. 6 (iv) Supermarket. 7 (v) Grocery store. 8 (vi) Hardware store. 9 (vii) Park. 10 (viii) Pharmacy. 11 (ix) Drugstore. 12 (6 • 13 (7) "Objective zoning standards" and"objective design review 14 standards" mean standards that involve no personal or subjective 15 judgment by a public official and are uniformly verifiable by 16 reference to an external and uniform benchmark or criterion 17 available and knowable by both the development applicant or 18 proponent and the public official prior to submittal.These standards 19 may be embodied in alternative objective land use specifications 20 adopted by a local agency, and may include, but are not limited 21 to, housing overlay zones, specific plans, inclusionary zoning 22 ordinances, and density bonus ordinances. 23 (7) 24 (8) "Priority development area"means an area identified under 25 the region's most recent sustainable communities strategy as prime 26 locations for additional growth. These areas may include job 27 centers, transit priority areas, or other characteristics where 28 mobility options support achieving greenhouse gas emissions 29 reduction. 30 (-8j 31 (9) (A) "Very low vehicle travel area" means an urbanized 32 area,as designated by the United States Census Bureau,where the 33 existing residential development generates vehicle miles traveled 34 per capita that is below 85 percent of either regional vehicle miles 35 traveled per capita or city vehicle miles traveled per capita.capita, 36 or county vehicle miles per capita. 37 (B) For purposes of this subdivision,"area"may include a travel 38 analysis zone,hexagon, or grid. 39 (C) For purposes of determining"regional vehicle miles traveled 40 per capita" pursuant to this subdivision, a"region" is the entirety 97 228 AB 68 —12- 1 of incorporated and unincorporated areas governed by a 2 multicounty or single-county metropolitan planning organization, 3 or the entirety of the incorporated and unincorporated areas of an 4 individual county that is not part of a metropolitan planning 5 organization. 6 (b) A proposed housing development shall be subject to a 7 streamlined,ministerial approval process in subdivision(c)without 8 discretionary review or, hearing, if the proposed housing 9 development consists of multiple units and satisfies all of the 10 following objective planning standards: 11 (1) (A) For incorporated areas, the proposed housing 12 development is proposcd to be developed on a legal parcel or 13 parcels that includes at least a portion of an It is a legal parcel or 14 parcels located in a city if, and only if the city boundaries include 15 some portion of either urbanized area or urban cluster, as 16 designated by the United States Census Bureau. 17 (B) For unincorporated areas,the proposed housing development 18 is proposed to,be developed on a legal parcel or parcels wholly 19 within the boundaries of an urbanized area or urban cluster, as 20 designated by the United States Census Bureau. 21 (2) The proposed parcel for the proposed housing development 22 is zoned for residential use or residential mixed-use development, 23 or has a general plan designation that allows residential use or a 24 mix of residential and nonresidential uses, and at least two-thirds 25 of the square footage of the development is designated for 26 residential use. Additional density, floor area, and units, and any 27 other concession, incentive, or waiver of development standards 28 granted pursuant to the Density Bonus Law in Section 65915 shall 29 be included in the square footage calculation. The square footage 30 of the development shall not include underground space, such as 31 basements or underground parking garages. 32 (3) (A) The proposed parcel for the proposed housing 33 development satisfies the requirements specified in subparagraphs 34 (B)to(K),inclusive,of paragraph(6)of subdivision(a)of Section 35 65913.4. 36 (B) The proposed parcel is not in an area projected to experience 37 flooding at less than or equal to sea level rise of five feet according 38 to information from the National Oceanic and Atmospheric 39 Administration or according to the best available science. 97 229 -13— AB 68 1 (C) The proposed parcel is not on natural lands within 100 2 meters width of streams or rivers, including, but not limited to, 3 streams or rivers mapped in the United States Environmental 4 Protection Agency National Hydrography Dataset NHDPlus, and 5 not on natural lands mapped by the United States Forest Service, 6 Pacific Southwest Region, existing Vegetation CALVEG, or best 7 available science. 8 (4) The development on the proposed parcel would not require 9 the demolition or alteration of either of the following types of 10 housing: 11 (A) Housing that is subject to a recorded covenant, ordinance, 12 or law that restricts rents to levels affordable to persons and 13 families of moderate, low, or very low income, as defined in 14 Sections 50093 and 50105 of the Health and Safety Code. 15 (B) Housing that is subject to any form of rent or price control 16 through a public entity's valid exercise of its police power. 17 (5) The development on the proposed parcel would not require 18 the demolition of a historic structure that was placed on a national 19 or state historic register. 20 (6) (A) Subject to subparagraph (B), the proposed parcel is 21 included in the applicable region's sustainable communities 22 strategy as a priority development area or is a climate-smart parcel. 23 (B) If the parcel is included in the applicable region's sustainable 24 communities strategy as a priority development area or is part of 25 a master environmental impact report pursuant to the California 26 Environmental Quality Act(Division 13(commencing with Section 27 21000) of the Public Resources Code), meets one of the mobility 28 indicators defined in paragraph (1) of subdivision (a), and the 29 proposed development would not be eligible for ministerial 30 approval under Section 65913.4 because it does not meet the 31 requirements of subparagraph(5)of subdivision(a)of that section, 32 then it shall be treated it shall be trcatcd as a climate-smart parcel 33 for purposes of this section. 34 (7) If the proposed housing development is units or more, 35 the development proponent certifies to the locality that it will 36 comply with the requirements of Section 65912.130 or 65912.131 37 of the Government Code. 38 (8) The proposed development dedicates a minimum of 39 percent of the total number of units,before calculating any density 40 bonus, to deed-restricted affordable housing. 97 230 AB 68 —14— 1 (c) (1) If a local agency determines that a development 2 submitted pursuant to this section is consistent with the objective 3 planning standards specified in subdivision (b) and pursuant to 4 paragraph (3), it shall approve the development. If a local agency 5 determines that a development submitted pursuant to this section 6 is in conflict with any of the objective planning standards specified 7 in subdivision (b), it shall provide the development proponent 8 written documentation of which standard or standards the 9 development conflicts with, and an explanation for the reason or 10 reasons the development conflicts with that standard or standards, 11 as follows: 12 (A) Within 60 days of submittal of the development to the local 13 agency pursuant to this section if the development contains 150 14 or fewer housing units. 15 (B) Within 90 days of submittal of the development to the local 16 agency pursuant to this section if the development contains more 17 than 150 housing units. 18 (2) If the local agency fails to provide the required 19 documentation pursuant to paragraph (1), the development shall 20 be deemed to satisfy the objective planning standards specified in 21 subdivision (b). 22 (3) For purposes of this section, a development is consistent 23 with the objective planning standards specified in subdivision(b) • 24 if there is substantial evidence that would allow a reasonable person 25 to conclude that the development is consistent with the objective 26 planning standards. The local agency shall not determine that a 27 development, including an application for a modification under 28 subdivision(b),is in conflict with the objective planning standards 29 on the basis that application materials are not included, if the 30 application contains substantial evidence that would allow a 31 reasonable person to conclude that the development is consistent 32 with the objective planning standards. 33 (d) (1) (A) A development proponent may request a 34 modification to a development that has been approved under the 35 streamlined, ministerial approval process provided in subdivision 36 (c) if that request is submitted to the local agency before the 37 issuance of the final building permit required for construction of 38 the development. 39 (B) Except as provided in paragraph(3), the local agency shall 40 approve a modification if it determines that the modification is 97 231 -15— AB 68 1 consistent with the objective planning standards specified in 2 subdivision (b) that were in effect when the original development 3 application was first submitted. 4 (C) The local agency shall evaluate any modifications requested 5 pursuant to this subdivision for consistency with the objective 6 planning standards using the same assumptions and analytical 7 methodology that the local agency originally used to assess 8 consistency for the development that was approved for streamlined, 9 ministerial approval pursuant to subdivision (c). 10 (D) A guideline that was adopted or amended by the department 11 pursuant to subdivision (f) after a development was approved 12 through the streamlined,ministerial approval process described in 13 subdivision (c) shall not be used as a basis to deny proposed 14 modifications. 15 (2) Upon receipt of the development proponent's application 16 requesting a modification, the local agency shall determine if the 17 requested modification is consistent with the objective planning 18 standard and either approve or deny the modification request within 19 60 days after submission of the modification, or within 90 days if 20 design review is required. 21 (3) Notwithstanding paragraph(1),the local agency may apply 22 objective planning standards adopted after the development 23 application was first submitted to the requested modification in 24 any of the following instances: 25 (A) The development is revised such that the total number of 26 residential units or total square footage of construction changes 27 by 15 percent or more. The calculation of the square footage of 28 construction changes shall not include underground space. 29 (B) The development is revised such that the total number of 30 residential units or total square footage of construction changes 31 by 5 percent or more and it is necessary to subject the development 32 to an objective standard beyond those in effect when the 33 development application was submitted in order to mitigate or 34 avoid a specific, adverse impact, as that term is defined in 35 subparagraph (A) of paragraph (1) of subdivision (j) of Section 36 65589.5, upon the public health or safety and there is no feasible 37 alternative method to satisfactorily mitigate or avoid the adverse 38 impact. The calculation of. the square footage of construction 39 changes shall not include underground space. 97 232 AB 68 —16- 1 (C) Objective building standards contained in the California 2 Building Standards Code (Title 24 of the California Code of 3 Regulations), including, but not limited to, building plumbing, 4 electrical, fire, and grading codes, may be applied to all 5 modification applications that are submitted prior to the,first 6 building permit application. Those standards may be applied to 7 modification applications submitted after the first building permit 8 application if agreed to by the development proponent. 9 (4) The local agency's review of a modification request pursuant 10 to this subdivision shall be strictly limited to determining whether 11 the modification, including any modification to previously 12 approved density bonus concessions or waivers, modify the 13 development's consistency with the objective planning standards 14 and shall not reconsider prior determinations that are not affected 15 by the modification. 16 (e) (1) For multifamily housing developments that consist of 17 multiple units on a climate-smart parcel that are submitted pursuant 18 to this section, the following shall apply: 19 (A) A local agency shall not require impose a setback greater 20 than four feet from the side, rear, and front lot lines. 21 22 not exceed 50 feet,unless the base density allows a greater height, 23 in which ease the larger of the two shall be used. 24 (B) A local agency shall not impose a height limit on a housing 25 development that is less than 50 feet. 26 (C) The A local agency shall not impose requirements that 27 preclude a development project that has a maximum lot coverage 28 of 60 percent. applicable to the housing development of less than 29 60 percent. 30 (D) The A local agency shall not impose or enforce a minimum 31 parking requirement. 32 (E) Depending on the number of mobility indicators indicators, 33 the local agency shall impose the following floor area ratios: not 34 do any of the following: 35 (i) For a housing development project on a parcel with one 36 mobility indicator, impose a floor area ratio that is less than 1.0. 37 (ii) For a housing development project on a parcel with two 38 mobility indicators, impose a floor area ratio that is less than 1.25. 39 (iii) For a housing development project on a parcel with all three 40 mobility indicators, impose a floor area ratio that is less than 1.5. 97 233 -17— AB 68 1 (2) A development proposed pursuant to this section shall be 2 eligible for a density bonus,incentives or concessions,waivers or 3 reductions of development standards, and parking ratios pursuant 4 to Section 65915. 5 (3) A local agency may impose objective zoning standards, 6 objective subdivision standards, and objective design review 7 standards that do not conflict with this section.However,the local 8 agency shall not do the following: 9 (A) Impose standards that would have the effect of physically 10 precluding the construction of projects that meet or exceed the 11 density standards described in subparagraph (B) of paragraph (3) 12 of subdivision (c) of Section 65583.2. 13 (B) Adopt or impose any requirement that applies to a 14 development project solely or partially on the basis that the project 15 is eligible to receive streamlined, ministerial review pursuant to 16 this section, including, but not limited to, increased fees or 17 inclusionary housing requirements. 18 (f) The Department of Housing and Community Development 19 may review, adopt, amend, and repeal guidelines, rules, and 20 regulations to implement uniform standards or criteria that 21 supplement or clarify the terms,references, or standards set forth 22 in this section. 23 SEC. 4. Chapter 4.3.1 (commencing with Section 65918.5) is 24 added to Division 1 of Title 7 of the Government Code, to read: 25 26 CHAPTER 4.3.1. DENSITY,SUBDIVISIONS,AND UTILITIES ON 27 CLIMATE RESILIENT,RISK,AND REFUGIA LANDS 28 29 65918.5. For purposes of this chapter,the following definitions 30 apply: 31 (a) "Climate resilient lands" means lands that are not existing 32 communities and that are not excluded lands. 33 (b) "Climate risk lands" mean lands within climate resilient 34 lands that have been identified as lands within very high and high 35 fire severity zones, lands identified as flood zones, or lands 36 identified as having a sea level rise risk of five feet according to 37 the latest science. 38 (c) "Climate refugia lands" means lands within Terrestrial 39 Connectivity categories 3,4, and 5 of the Department of Fish and 40 Wildlife's Area of Conservation Emphasis. 97 234 AB 68 —18— 1 (d) "Existing communities" means the following: 2 (1) For incorporated areas, lands within municipal boundaries 3 as of January 1, 2024. 4 (2) For unincorporated areas,an urbanized area or urban cluster, 5 as designated by the United States Census Bureau. 6 (e) "Excluded lands" are lands that meet one of the following 7 criteria: 8 (1) Parcels with vested rights. 9 (2) Lands within specific plans with an environmental impact 10 report adopted on or before January 1, 2024. 11 (3) Lands zoned for agriculture, rural, or rangeland succession 12 reasons to accommodate agricultural workforce that result in uses 13 that remain accessory to the primary use. 14 (f) "Planned density" means the density of housing that is 15 planned for the land or parcel, as set on January, 1, 2024, in the 16 county's general plan. 17 65918.5.01. The Legislature finds and declares that the purpose 18 of this chapter is to protect the public health and safety by 19 preserving high value natural and working lands for the benefit of 20 climate resilience, equitable access to open space, biodiversity, 21 wildlife corridors, and food security. 22 65918.5.02. (a) Notwithstanding any law, a county shall not 23 increase the planned density on climate resilient lands unless the 24 planning requirements or conditions set forth in Section 65918.5.03 25 are met. 26 (b) Notwithstanding any law, a county shall not approve any 27 tentative,final,or parcel maps pursuant to Division 2(commencing 28 with Section 66410)for the subdivision of property within climate 29 risk lands or climate refugia lands unless the planning requirements 30 or conditions set forth in Section 65918.5.03 are met. 31 (c) Notwithstanding any law, a county shall not approve an 32 extension of water or sewer services on climate resilient lands 33 unless the planning requirements or conditions set forth in Section 34 65918.5.03 are met or the extension of these services are to meet 35 public health and safety requirements for existing residents. 36 (d) This section does not apply to a town or existing community 37 that has a population fewer than 5,000, is unincorporated, and 38 97 235 -19— AB 68 1 65918.5.03. A county is not subject to Section 65918.5.02 if 2 all of the following planning requirements and conditions are 3 met: 4 (a) The county has a housing element that is approved by the 5 Department of Housing and Community Development. 6 (b) The county's board of supervisors makes a finding, based 7 on a preponderance of the evidence, of housing necessity. 8 (c) Following the finding in subdivision(b),the county's board 9 of supervisors does the following: 10 (1) Amends its general plan, pursuant to procedures required 11 by law, including Article 6 (commencing with Section 65350), to 12 increase the planned density on climate resilient lands,to authorize 13 the subdivision of property within climate risk lands or climate 14 refugia lands, or to authorize the extension of water or sewer 15 services on climate resilient lands, as applicable. 16 (2) In addition to notice required by Article 6 (commencing 17 with Section 65350),provides at least 30 days'notice of the public 18 hearing on the proposed amendments to the general plan to the 19 owners of properties adjacent to the area affected by the proposed 20 planned density increase, subdivision of property, or extension of 21 water or sewer services, as applicable, to the applicable local 22 agency formation commission, to any city in whose sphere of 23 influence the proposed planned density increase, subdivision of 24 property, or extension of water or sewer services, as applicable, 25 is located,and any other party that requests notice from the county 26 by submitting their name and contact information with the county 27 clerk. 28 (3) Makes, in conjunction with the amendment of the general 29 plan, all of the following findings: 30 (A) The proposed development requiring the increase in planned 31 density, subdivision of property, or extension of water or sewer 32 services is necessary to comply with state housing requirements, 33 as confirmed by the Office of Planning and Research. 34 (B) The parcels requiring the increase in planned density, 35 subdivision of property,or extension of water or sewer service, as 36 applicable,will not exceed the minimum area necessary to comply 37 with state housing law, as confirmed by the Office of Planning 38 , and Research. 39 (C) The proposed development requiring an increase in planned 40 density, subdivision of property, or extension of water or sewer 97 236 AB 68 —20— 1 service is immediately adjacent to developed areas and housing 2 proponent has provided evidence to the county that the county's 3 departments,any applicable community services districts,and any 4 other districts providing utilities or services to the relevant parcel 5 have adequate capacity to accommodate the proposed development 6 for the succeeding 30 years. For purposes of this subparagraph, 7 the county's departments and other districts providing utilities and 8 services include,but are not limited to,the fire department,sheriff's 9 department, public works department, water and sewer districts, 10 and school districts. 11 (D) There is no other existing residential or commercial property 12 available to accommodate the proposed development on lands 13 outside of climate resilient lands and it is not feasible to 14 accommodate the proposed development by redesignating lands 15 outside of climate resilient lands, as confirmed by the Office of 16 Planning and Research. 17 65918.5.04. Notwithstanding any law, any land that is subject 18 to Section 65918.5.02 that is annexed by a city after January 1, 19 2024,shall still be subject to the prohibitions of this chapter unless, 20 it is an excluded land. For purposes of land that is subject to this 21 section, references in this chapter to "county" shall also refer to 22 the city that annexed the land. 23 SEC. 5. Section 66425.5 is added to the Government Code, to 24 read: 25 66425.5. Notwithstanding any law, a county shall not approve 26 any tentative, final, or parcel maps for the subdivision of property 27 pursuant to this division unless the planning requirements or 28 conditions set forth in Section 65918.5.03 are met for the affected 29 parcels. 30 SEC. 6. The Legislature finds and declares that the provision 31 of adequate housing, in light of the severe shortage of housing at 32 all income levels in this state, and the preservation of high value 33 natural and working lands are matters of statewide concern and 34 are not municipal affairs as that term is used in Section 5 of Article 35 XI of the California Constitution. Therefore, Sections 2, 3,4, and 36 5 of this act amending Section 65585 of,adding Sections 65914.7.5 37 and 66425.5 to, and adding Chapter 4.3.1 (commencing with 38 Section 65918.5)to Division 1 of Title 7 of,the Government Code 39 applies to all cities, including charter cities. 97 237 —21—' AB 68 1 SEC. 7. No reimbursement is required by this act pursuant to 2 Section 6 of Article XIIIB of the California Constitution because 3 a local agency or school district has the authority to levy service 4 charges, fees, or assessments sufficient to pay for the program or 5 level of service mandated by this act,within the meaning of Section 6 17556 of the Government Code. 0 97 238 rUNTING O '' � ` y� CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 `2C�UNTY'toQAI TONY STRICKLAND MAYOR May 3, 2023 The Honorable Buffy Wicks California State Assembly 1021 0 St. Ste. 4240 Sacramento, CA 95814 SUBJECT: AB 68 (WARD) LAND USE: STREAMLINED HOUSING APPROVALS: DENSITY, SUBDIVISION, AND UTILITY APPROVALS Dear Chair Wicks and Members of the Housing and Community Development Committee: The City of Huntington Beach respectfully OPPOSES AB 68 (Ward) because the bill proposes to strip local governments of their land use authority by permanently prohibiting all new housing construction in counties that the bill claims are not "climate smart parcels". It will prevent local governments from permitting new housing units in most of their jurisdictions and mandates exclusionary land use policies. AB 68 may appear to be a climate bill. However, it is a mechanism for HCD to allow streamlined, by-right housing development, and it will give HCD total authority to interpret and strip local authority. For these reasons, the City of Huntington Beach respectfully opposes AB 68. Sincerely, Tony Strickland Mayor City of Huntington Beach Cc: Senator Janet Nguyen Senator Dave Min Assembly Member Diane Dixon Assembly Member Tri Ta ACC-OC Board of Directors (via email) Bismarck Obando, Director of Public Affairs (bismarck@calcities.org) League of California Cities (cityletters@calcities.org) Fax 714.536.5233 Page 1 of 1 Office: 714.536.5553 239 AMENDED IN SENATE MARCH 28, 2023 SENATE BILL No. 423 Introduced by Senator Wiener (Principal coauthor:Assembly Member Wicks) (Coauthor: Senator Hurtado) (Coauthor:Assembly Member Grayson) February 13, 2023 An act to amend Section 65913.4 of the Government Code,relating to land use. LEGISLATIVE COUNSEL'S DIGEST SB 423, as amended, Wiener. Land use: streamlined housing approvals: multifamily housing developments. Existing law,the Planning and Zoning Law,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, among others,that the development proponent has committed to record, prior to the issuance of the first building permit, a land use restriction or covenant providing that any lower or moderate-income housing units required, as specified, remain available at affordable housing costs, as defined, or rent to persons and families of lower or moderate-income for no less than specified periods of time. Existing law repeals these provisions on January 1, 2026. This bill would authorize the Department of General Services to act in the place of a locality or local government, at the discretion of that department, for purposes of the ministerial, streamlined review for development on property owned by or leased to the state.The bill would 98 240 SB 423 —2— delete the January 1,2026,repeal date,thereby making these provisions operative indefinitely. This bill would modify the above-described objective planning standards,including by deleting the standard that prohibits a multifamily housing development from being subject to the streamlined,ministerial approval process if the development is located in a coastal zone, and by providing an alternative definition for "affordable housing costs" for a development that dedicates 100%of units,exclusive of a manager's unit or units,to lower income households.The bill would,among other modifications, delete the objective planning standards requiring development proponents to pay at least the general prevailing rate of per diem wages and utilize a skilled and trained workforce and would instead require a development proponent to certify to the local government that certain wage and labor standards will be met,including • a requirement that all construction workers be paid at least the general prevailing rate of wages, as specified.The bill would require the Labor Commissioner to enforce the obligation to pay prevailing wages. By expanding the crime of perjury,the bill would impose a state-mandated local program. The bill would specify that the requirements to pay prevailing wages, use a workforce participating in an apprenticeship, or provide health care expenditures do not apply to a project that consists of 10 or fewer units and is not otherwise a public work. This bill would define "objective planning standards" to exclude codes requiring detailed technical specifications,and standards that are not reasonably ascertainable by the local government within specified time limits, as described. Existing law requires a local government to approve a development if the local government determines the development is consistent with the objective planning standards. Existing law requires, if the local government determines a submitted development is in conflict with any of the objective planning standards, the local government to provide the development proponent written documentation of the standards the development conflicts with and an explanation for the conflict within certain timelines depending on the size of the development. Existing law, the Housing Accountability Act, prohibits a local agency from disapproving a housing development project, as described, unless it makes specified written findings. This bill would instead require approval if a local government's planning director or any equivalent local government staff, including 98 241 —3— SB 423 all relevant planning and permitting departments, equivalent position determines the development is consistent with the objective planning standards. The bill would make conforming changes. The bill would require all departments of the local government that are required to issue an approval of the development prior to the granting of an entitlement to also comply with the above-described streamlined approval requirements within specified time periods. The bill would prohibit a local government from requiring a development proponent to provide consultant studics, as described, or othcr studies requiring, prior to approving a development that meets the requirements of the above-described streamlining provisions, compliance with any standards necessary to receive a postentitlement permit or studies, information, or other materials that arc unnecessary to ascertain consistency do not pertain directly to determining whether the development is consistent with the objective planning standards. standards applicable to the development. The bill would, for purposes of these provisions, establish that the total number of units in a development includes (1) all projects developed on a site,regardless of when those developments occur, and (2)all projects developed on sites adjacent to a site developed pursuant to these provisions if, after January 1, 2023, the adjacent site had been subdivided from the site developed pursuant to these provisions. Existing law authorizes the local government's planning commission or any equivalent board or commission responsible for review and approval of development projects,or as otherwise specified,to conduct any design review or public oversight of the development. This bill would remove the above-described authorization to conduct public oversight of the development and would only authorize design • review to be conducted by the local government's planning commission or any equivalent board or commission responsible for design review. By imposing additional duties on local officials,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 specified reasons. 98 242 SB 423 —4— 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. The Legislature finds and declares that it has 2 provided reforms and incentives to facilitate and expedite the 3 construction of affordable housing. Those reforms and incentives 4 can be found in the following provisions: 5 (a) Housing element law (Article 10.6 (commencing with 6 Section 65580) of Chapter 3 of Division 1 of Title 7 of the 7 Government Code). 8 (b) Extension of statute of limitations in actions challenging the 9 housing element and brought in support of affordable housing 10 (subdivision (d) of Section 65009 of the Government Code). 11 (c) Restrictions on disapproval of housing developments 12 (Section 65589.5 of the Government Code). 13 (d) Priority for affordable housing in the allocation of water and 14 sewer hookups (Section 65589.7 of the Government Code). 15 (e) Least cost zoning law (Section 65913.1 of the Government 16 Code). 17 (f) Density Bonus Law (Section 65915 of the Government 18 Code). 19 (g) Accessory dwelling units(Sections 65852.150 and 65852.2 20 of the Government Code). 21 (h) By-right housing, in which certain multifamily housing is 22 designated a permitted use (Section 65589.4 of the Government 23 Code). 24 (i) No-net-loss-in zoning density law limiting downzonings and 25 density reductions (Section 65863 of the Government Code). 26 (j) Requiring persons who sue to halt affordable housing to pay 27 attorney's fees (Section 65914 of the Government Code) or post 28 a bond (Section 529.2 of the Code of Civil Procedure). 29 (k) Reduced time for action on affordable housing applications 30 under the approval of development permits process (Article 5 31 (commencing with Section 65950) of Chapter 4.5 of Division 1 32 of Title 7 of the Government Code). 33 (l) Limiting moratoriums on multifamily housing(Section 65858 34 of the Government Code). 98 243 —5— SB 423 1 (m) Prohibiting discrimination against affordable housing 2 (Section 65008 of the Government Code). 3 (n) California Fair Employment and Housing Act (Part 2.8 4 (commencing with Section 12900) of Division 3 of Title 2 of the 5 Government Code). 6 (o) Community Redevelopment Law(Part 1 (commencing with 7 Section 33000)of Division 24 of the Health and Safety Code, and 8 in particular Sections 33334.2 and 33413 of the Health and Safety 9 Code). 10 (p) Streamlining housing approvals during a housing shortage 11 (Section 65913.4 of the Government Code). 12 (q) Housing sustainability districts (Chapter 11 (commencing 13 with Section 66200) of Division 1 of Title 7 of the Government 14 Code). 15 (r) Streamlining agricultural employee housing development 16 approvals (Section 17021.8 of the Health and Safety Code). 17 (s) The Housing Crisis Act of 2019 (Senate Bill 330 (Chapter 18 654 of the Statutes of 2019)). 19 (t) Allowing four units to be built on single-family parcels 20 statewide (Senate Bill 9(Chapter 162 of Statutes of 2021)). 21 (u) The Middle Class Housing Act of 2022 (Section 65852.24 22 of the Government Code). 23 ) 24 (v) Affordable Housing and High Road Jobs Act of 2022 25 (Chapter 4.1 (commencing with Section 65912.100) of Division 26 1 of Title 7 of the Government Code). 27 SEC. 2. Section 65913.4 of the Government Code is amended 28 to read: • 29 65913.4. (a) A development proponent may submit an 30 application for a development that is subject to the streamlined, 31 ministerial approval process provided by subdivision (c) and is 32 not subject to a conditional use permit or any other nonlegislative 33 discretionary approval if the development complies with 34 subdivision(b)and satisfies all of the following objective planning 35 standards: 36 (1) The development is a multifamily housing development that 37 contains two or more residential units. 38 (2) The development and the site on which it is located satisfy 39 all of the following: 98 244 SB 423 —6— 1 (A) It is a legal parcel or parcels located in a city if, and only 2 if,the city boundaries include some portion of either an urbanized 3 area or urban cluster, as designated by the United States Census 4 Bureau, or, for unincorporated areas, a legal parcel or parcels 5 wholly within the boundaries of an urbanized area or urban cluster, 6 as designated by the United States Census Bureau. 7 (B) At least 75 percent of the perimeter of the site adjoins parcels 8 that are developed with urban uses.For the purposes of this section, 9 parcels that are only separated by a street or highway shall be 10 considered to be adjoined. 11 (C) (i) A site that meets the requirements of clause (ii) and 12 satisfies any of the following: 13 (I) The site is zoned for residential use or residential mixed-use 14 development. 15 (II) The site has a general plan designation that allows residential 16 use or a mix of residential and nonresidential uses. 17 (III) The site is zoned for office or retail commercial use and 18 meets the requirements of Section 65852.24. 19 (ii) At least two-thirds of the square footage of the development 20 is designated for residential use. Additional density, floor area, 21 and units, and any other concession, incentive, or waiver of 22 development standards granted pursuant to the Density Bonus Law 23 in Section 65915 shall be included in the square footage 24 calculation. The square footage of the development shall not 25 include underground space, such as basements or underground 26 parking garages. 27 (3) (A) The development proponent has committed to record, 28 prior to the issuance of the first building permit, a land use 29 restriction or covenant providing that any lower or moderate 30 income housing units required pursuant to subparagraph (B) of 31 paragraph (4) shall remain available at affordable housing costs 32 or rent to persons and families of lower or moderate-income for 33 no less than the following periods of time: 34 (i) Fifty-five years for units that are rented. 35 (ii) Forty-five years for units that are owned. 36 (B) The city or county shall require the recording of covenants 37 or restrictions implementing this paragraph for each parcel or unit 38 of real property included in the development. 39 (4) The development satisfies clause (i) or(ii) of subparagraph 40 (A) and satisfies subparagraph (B) below: 98 245 -7— SB 423 1 (A) (i) For a development located in a locality that is in its sixth 2 or earlier housing element cycle, the development is located in 3 either of the following: 4 (I) In a locality that the department has determined is subject 5 to this clause on the basis that the number of units that have been 6 issued building permits, as shown on the most recent production 7 report received by the department, is less than the locality's share 8 of the regional housing needs, by income category, for that 9 reporting period. A• locality shall remain eligible under this 10 subclause until the department's determination for the next 11 reporting period. 12 (H) In a locality that the department has determined is subject 13 to this clause on the basis that the locality did not adopt a housing 14 element that has been found in substantial compliance with housing 15 element law (Article 10.6 (commencing with Section 65580) of 16 Chapter 3)by the department.A locality shall remain eligible under 17 this subclause until such time as the locality adopts a housing 18 element that has been found in substantial compliance with housing 19 element law (Article 10.6 (commencing with Section 65580) of 20 Chapter 3)by the department. • 21 (ii) For a development located in a locality that is in its seventh 22 or later housing element cycle, is located in a locality that the 23 department has determined is subject to this clause on the basis 24 that the locality did not adopt a housing element that has been 25 found in substantial compliance with housing element law(Article 26 10.6 (commencing with Section 65580) of Chapter 3) by the 27 department by the statutory deadline, or that the number of units 28 that have been issued building permits,as shown on the most recent 29 production report received by the department, is less than the 30 locality's share of the regional housing needs,by income category, 31 for that reporting period. A locality shall remain eligible under 32 this subparagraph until the department's determination for the next 33 reporting period. 34 (B) The development is subject to a requirement mandating a 35 minimum percentage of below market rate housing based on one 36 of the following: 37 (i) The locality did not adopt a housing element pursuant to 38 Section 65588 that has been found in substantial compliance with 39 the housing element law (Article 10.6 (commencing with Section 40 65580) of Chapter 3) by the department, did not submit its latest 98 246 SB 423 —8- 1 production report to the department by the time period required 2 by Section 65400, or that production report submitted to the 3 department reflects that there were fewer units of above 4 moderate-income housing issued building permits than were 5 required for the regional housing needs assessment cycle for that 6 reporting period. In addition, if the project contains more than 10 7 units of housing, the project does either of the following: 8 (I) The project dedicates a minimum of 10 percent of the total 9 number of units,before calculating any density bonus,to housing 10 affordable to households making at or below 80 percent of the area 11 median income. However, if the locality has adopted a local 12 ordinance that requires that greater than 10 percent of the units be 13 dedicated to housing affordable to households making below 80 14 percent of the area median income, that local ordinance applies. 15 (II) (ia) If the project is located within the San Francisco Bay 16 area,the project,in lieu of complying with subclause(I),dedicates 17 20 percent of the total number of units, before calculating any 18 density bonus,to housing affordable to households making below 19 120 percent of the area median income with the average income 20 of the units at or below 100 percent of the area median income. 21 However, a local ordinance adopted by the locality applies if it 22 requires greater than 20 percent of the units be dedicated to housing 23 affordable to households making at or below 120 percent of the 24 area median income,or requires that any of the units be dedicated 25 at a level deeper than 120 percent. In order to comply with this 26 subclause,the rent or sale price charged for units that are dedicated 27 to housing affordable.to households between 80 percent and 120 28 percent of the area median income shall not exceed 30 percent of 29 the gross income of the household. 30 (ib) For purposes of this subclause, "San Francisco Bay area" 31 means the entire area within the territorial boundaries of the 32 Counties of Alameda, Contra Costa, Marin, Napa, San Mateo, 33 Santa Clara,Solano,and Sonoma,and the City and County of San 34 Francisco. 35 (ii) The locality's latest production report reflects that there 36 were fewer units of housing issued building permits affordable to 37 either very low income or low-income households by income 38 category than were required for the regional housing needs 39 assessment cycle for that reporting period,and the project seeking 40 approval dedicates 50 percent of the total number of units,before 98 247 —9— SB 423 1 calculating any density bonus,to housing affordable to households 2 making at or below 80 percent of the area median income. 3 However,if the locality has adopted a local ordinance that requires 4 that greater than 50 percent of the units be dedicated to housing 5 affordable to households making at or below 80 percent of the area 6 median income, that local ordinance applies. 7 (iii) The locality did not submit its latest production report to 8 the department by the time period required by Section 65400, or 9 if the production report reflects that there were fewer units of 10 housing affordable to both income levels described in clauses (i) 11 and (ii) that were issued building permits than were required for 12 the regional housing needs assessment cycle for that reporting 13 period,the project seeking approval may choose between utilizing 14 clause (i) or(ii). 15 (C) (i) A development proponent that uses a unit of affordable 16 housing to satisfy the requirements of subparagraph (B)may also 17 satisfy any other local or state requirement for affordable housing, 18 including local ordinances or the Density Bonus Law in Section 19 65915, provided that the development proponent complies with 20 the applicable requirements in the state or local law. If a local 21 requirement for affordable housing requires units that are restricted 22 to households with incomes higher than the applicable income 23 limits required in subparagraph (B), then units that meet the 24 applicable income limits required in subparagraph (B) shall be 25 deemed to satisfy those local requirements for higher income units. 26 (ii) A development proponent that uses a unit of affordable 27 housing to satisfy any other state or local affordability requirement 28 may also satisfy the requirements of subparagraph (B), provided 29 that the development proponent complies with applicable 30 requirements of subparagraph (B). 31 (iii) A development proponent may satisfy the affordability 32 requirements of subparagraph (B) with a unit that is restricted to 33 households with incomes lower than the applicable income limits 34 required in subparagraph (B). 35 (D) The amendments to this subdivision made by the act adding 36 this subparagraph do not constitute a change in,but are declaratory 37 of, existing law. 38 (5) The development, excluding any additional density or any 39 other concessions,incentives,or waivers of development standards 40 for which the development is eligible pursuant to the Density Bonus 98 248 SB 423 —10— 1 Law in Section 65915, is consistent with objective zoning 2 standards, objective subdivision standards, and objective design 3 review standards in effect at the time that the development is 4 submitted'to the local government pursuant to this section, or at 5 the time a notice of intent is submitted pursuant to subdivision(b), 6 whichever occurs earlier.For purposes of this paragraph,"objective 7 zoning standards," "objective subdivision standards," and 8 "objective design review standards" mean standards that involve 9 no personal or subjective judgment by a public official and are 10 unifoiiiily verifiable by reference to an external and uniform 11 benchmark or criterion available and knowable by both the 12 development applicant or proponent and the public official before 13 submittal. These standards may be embodied in alternative 14 objective land use specifications adopted by a city or county, and 15 may include,but are not limited to,housing overlay zones,specific 16 plans, inclusionary zoning ordinances, and density bonus 17 ordinances, subject to the following: 18 (A) A development shall be deemed consistent with the objective 19 zoning standards related to housing density, as applicable, if the 20 density proposed is compliant with the maximum density allowed 21 within that land use designation, notwithstanding any specified 22 maximum unit allocation that may result in fewer units of housing 23 being permitted. 24 (B) In the event that objective zoning,general plan,subdivision, 25 or design review standards are mutually inconsistent,, a 26 development shall be deemed consistent with the objective zoning 27 and subdivision standards pursuant to this subdivision if the 28 development is consistent with the standards set forth in the general 29 plan. 30 (C) It is the intent of the Legislature that the objective zoning 31 standards, objective subdivision standards, and objective design 32 review standards described in this paragraph be adopted or 33 amended in compliance with the requirements of Chapter 905 of 34 the Statutes of 2004. 35 (D) The amendments to this subdivision made by the act adding 36 this subparagraph do not constitute a change in,but are declaratory 37 of, existing law. 38 (E) A project that satisfies the requirements of Section 65852.24 39 shall be deemed consistent with objective zoning standards, 40 objective design standards, and objective subdivision standards if 98 249 -11— SB 423 1 the project is consistent with the provisions of subdivision (b) of 2 Section 65852.24 and if none of the square footage in the project 3 is designated for hotel, motel, bed and breakfast inn, or other 4 transient lodging use, except for a residential hotel. For purposes 5 of this subdivision,"residential hotel"shall have the same meaning 6 as defined in Section 50519 of the Health and Safety Code. 7 (6) The development is not located on a site that is any of the 8 following: 9 (A) Either prime farmland or farmland of statewide importance, 10 as defined pursuant to United States Department of Agriculture 11 land inventory and monitoring criteria,as modified for California, 12 and designated on the maps prepared by the Farmland Mapping 13 and Monitoring Program of the Department of Conservation, or 14 land zoned or designated for agricultural protection or preservation 15 by a local ballot measure that was approved by the voters of that 16 jurisdiction. 17 (B) Wetlands, as defined in the United States Fish and Wildlife • 18 Service Manual, Part 660 FW 2 (June 21, 1993), unless the 19 development within the wetlands has been authorized by a permit 20 or other approval issued pursuant to federal or other state law. 21 (C) Within a very high fire hazard severity zone, as determined 22 by the Department of Forestry and Fire Protection pursuant to 23 Section 51178, or within a high or very high fire hazard severity 24 zone as indicated on maps adopted by the Department of Forestry 25 and Fire Protection pursuant to Section 4202 of the Public 26 Resources Code. This subparagraph does not apply to sites 27 excluded from the specified hazard zones by a local agency, 28 pursuant to subdivision (b) of Section 51179, or sites that have 29 adopted fire hazard mitigation measures pursuant to existing 30 building standards or state fire mitigation measures applicable to 31 the development. 32 (D) A hazardous waste site that is listed pursuant to Section 33 65962.5 or a hazardous waste site designated by the Department 34 of Toxic Substances Control pursuant to Section 25356 of the 35 Health and Safety Code, unless either of the following apply: 36 (i) The site is an underground storage tank site that received a 37 uniform closure letter issued pursuant to subdivision(g)of Section 38 25296.10'of the Health and Safety Code based on closure criteria 39 established by the State Water Resources Control Board for 40 residential use or residential mixed uses. This section does not 98 250 SB 423 —12— 1 alter or change the conditions to remove a site from the list of 2 hazardous waste sites listed pursuant to Section 65962.5. 3 (ii) The State Department of Public Health, State Water 4 Resources Control Board,Department of Toxic Substances Control, 5 or a local agency making a determination pursuant to subdivision 6 (c) of Section 25296.10 of the Health and Safety Code, has 7 otherwise determined that the site is suitable for residential use or 8 residential mixed uses. 9 (E) Within a delineated earthquake fault zone as determined by 10 the State Geologist in any official maps published by the State 11 Geologist,unless the development complies with applicable seismic 12 protection building code standards. adopted by the California 13 Building Standards Commission under the California Building 14 Standards Law (Part 2.5 (commencing with Section 18901) of 15 Division 13 of the Health and Safety Code), and by any local 16 building department under Chapter 12.2(commencing with Section 17 8875) of Division 1 of Title 2. 18 (F) Within a special flood hazard area subject to inundation by 19 the 1 percent annual chance flood(100-year flood) as determined 20 by the Federal Emergency Management Agency in any official 21 maps published by the Federal Emergency Management Agency. 22 If a development proponent is able to satisfy all applicable federal 23 qualifying criteria in order to provide that the site satisfies this 24 subparagraph and is otherwise eligible for streamlined approval 25 under this section,a local government shall not deny the application 26 on the basis that the development proponent did not comply with 27 any additional permit requirement, standard, or action adopted by 28 that local government that is applicable to that site.A development 29 may be located on a site described in this subparagraph if either 30 of the following are met: 31 (i) The site has been subject to a Letter of Map Revision 32 prepared by the Federal Emergency Management Agency and 33 issued to the local jurisdiction. 34 (ii) The site meets Federal Emergency Management Agency 35 requirements necessary to meet minimum flood plain management 36 criteria of the National Flood Insurance Program pursuant to Part 37 59 (commencing with Section 59.1) and Part 60 (commencing 38 with Section 60.1) of Subchapter B of Chapter I of Title 44 of the 39 Code of Federal Regulations. 98 251 -13— SB 423 1 (G) Within a regulatory floodway as determined by the Federal 2 Emergency Management Agency in any official maps published 3 by the Federal Emergency Management Agency, unless the 4 development has received a no-rise certification in, accordance 5 with Section 60.3(d)(3) of Title 44 of the Code of Federal 6 Regulations. If a development proponent is able to satisfy all 7 applicable federal qualifying criteria in order to provide that the 8 site satisfies this subparagraph and is otherwise eligible for 9 streamlined approval under this section, a local government shall 10 not deny the application on the basis that the development 11 proponent did not comply with any additional permit requirement, 12 standard, or action adopted by that local government that is 13 applicable to that site. 14 (H) Lands identified for conservation in an adopted natural 15 community conservation plan pursuant to the Natural Community 16 Conservation Planning Act(Chapter 10(commencing with Section 17 2800) of Division 3 of the Fish and Game Code), habitat 18 conservation plan pursuant to the federal Endangered Species Act 19 of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural 20 resource protection plan. 21 (I) Habitat for protected species identified as candidate, 22 sensitive, or species of special status by state or federal agencies, 23 fully protected species, or species protected by the federal 24 Endangered Species Act of 1973 (16 U.S.C.. Sec. 1531 et seq.), 25 the California Endangered Species Act(Chapter 1.5(commencing 26 with Section 2050) of Division 3 of the Fish and Game Code), or 27 the Native Plant Protection Act (Chapter 10 (commencing with 28 Section 1900) of Division 2 of the Fish and Game Code), unless 29 the development within the habitat has been authorized by a permit 30 or approval issued pursuant to federal or other state law. 31 (J) Lands under conservation easement. 32 (7) The development is not located on a site where any of the 33 following apply: 34 (A) The development would require the demolition of the 35 following types of housing: 36 (i) Housing that is subject to a recorded covenant, ordinance, 37 or law that restricts rents to levels affordable to persons and 38 families of moderate, low, or very low income. 39 (ii) Housing that is subject to any form of rent or price control 40 through a public entity's valid exercise of its police power. 98 252 SB 423 —14— 1 (iii) Housing that has been occupied by tenants within the past 2 10 years. 3 (B) The site was previously used for housing that was occupied 4 by tenants that was demolished within 10 years before the 5 development proponent submits an application under this section. 6 (C) The development would require the demolition of a historic 7 structure that was placed on a national, state, or local historic 8 register. 9 (D) The property contains housing units that are occupied by 10 tenants,and units at the property are,or were,subsequently offered 11 for sale to the general public by the subdivider or subsequent owner 12 of the property. 13 (8) Except as provided in paragraph (9), a proponent of a 14 development project approved by a local government pursuant to 15 this section shall require in contracts with construction contractors, 16 and shall certify to the local government, that the following 17 standards specified in this paragraph will be met in project 18 construction, as applicable: 19 (A) A development.that is not in its entirety a public work for 20 purposes of Chapter 1 (commencing with Section 1720) of Part 7 21 of Division 2 of the Labor Code and approved by a local 22 government pursuant to Article 2 (commencing with Section 23 65912.110) or Article 3 (commencing with Section 65912.120) 24 shall be subject to all of the following: 25 (i) All construction workers employed in the execution of the 26 development shall be paid at least the general prevailing rate of 27 per diem wages for the type of work and geographic area, as 28 determined by the Director of Industrial Relations pursuant to 29 Sections 1773 and 1773.9 of the Labor Code, except that 30 apprentices registered in programs approved by the Chief of the 31 Division of Apprenticeship Standards may be paid at least the 32 applicable apprentice prevailing rate. 33 (ii) The development proponent shall ensure that the prevailing 34 wage requirement is included in all contracts for the performance 35 of the work for those portions of the development that are not a 36 public work. 37 (iii) All contractors and subcontractors for those portions of the 38 development that are not a public work shall comply with both of 39 the following: 98 253 -15— SB 423 1 (I) Pay to all construction workers employed in the execution 2 of the work at least the general prevailing rate of per diem wages, 3 except that apprentices registered in programs approved by the 4 Chief of the Division of Apprenticeship Standards may be paid at 5 least the applicable apprentice prevailing rate. 6 (II) Maintain and verify payroll records pursuant to Section 7 1776 of the Labor Code and make those records available for 8 inspection and copying as provided in that section.This subclause 9 does not apply if all contractors and subcontractors performing 10 work on the development are subject to a project labor agreement 11 that requires the payment of prevailing wages to all construction 12 workers employed in the execution of the development and 13 provides for enforcement of that obligation through an arbitration 14 procedure. For purposes of this subclause, "project labor 15 agreement"has the same meaning as set forth in paragraph(1) of 16 subdivision (b) of Section 2500 of the Public Contract Code. 17 (B) (i) The obligation of the contractors and subcontractors to 18. pay prevailing wages pursuant to this paragraph may be enforced 19 by any of the following: 20 (I) The Labor Commissioner through the issuance of a civil 21 wage and penalty assessment pursuant to Section 1741 of the Labor 22 Code, which may be reviewed pursuant to Section 1742 of the 23 Labor Code, within 18 months after the completion of the 24 development. 25 (II) An underpaid worker through an administrative complaint 26 or civil action. 27 (III) A joint labor-management committee through a civil action 28 under Section 1771.2 of the Labor Code. 29 (ii) If a civil wage and penalty assessment is issued pursuant to 30 this paragraph,the contractor,subcontractor,and surety on a bond 31 or bonds issued to secure the payment of wages covered by the 32 assessment shall be liable for liquidated damages pursuant to 33 Section 1742.1 of the Labor Code. 34 (iii) This paragraph does not apply if all contractors and 35 subcontractors performing work on the development are subject 36 to a project labor agreement that requires the payment of prevailing 37 wages to all construction workers employed in the execution of 38 the development and provides for enforcement of that obligation 39 through an arbitration procedure. For purposes of this clause, 40 "project labor agreement" has the same meaning as set forth in 98 254 SB 423 —16— 1 paragraph (1) of subdivision (b) of Section 2500 of the Public 2 Contract Code. 3 (C) Notwithstanding subdivision (c) of Section 1773.1 of the 4 Labor Code, the requirement that employer payments not reduce 5 the obligation to pay the hourly straight time or overtime wages 6 found to be prevailing does not apply to those portions of 7 development that are not a public work if otherwise provided in a 8 bona fide collective bargaining agreement covering the worker. 9 (D) The requirement of this paragraph to pay at least the general 10 prevailing rate of per diem wages does not preclude use of an 11 alternative workweek schedule adopted pursuant to Section 511 12 or 514 of the Labor Code. 13 (E) A development of 50 or more housing units approved by a 14 local government pursuant to this section shall meet all of the 15 following-labor standards: 16 (i) The development proponent shall require in contracts with 17 construction contractors and shall certify to the local government 18 that each contractor of any tier who will employ construction craft 19 employees or will let subcontracts for at least 1,000 hours shall 20 satisfy the requirements in clauses (ii) and (iii). A construction 21 contractor is deemed in compliance with clauses (ii) and (iii)if it 22 is signatory to a valid collective bargaining agreement that requires 23 utilization of registered apprentices and expenditures on health 24 care for employees and dependents. 25 (ii) A contractor with construction craft employees shall either 26 participate in an apprenticeship program approved by the California 27 Division of Apprenticeship Standards pursuant to Section 3075 of 28 the Labor Code, or request the dispatch of apprentices from a 29 state-approved apprenticeship program under the terms and 30 conditions set forth in Section 1777.5 of the Labor Code. A 31 contractor without construction craft employees shall show a 32 contractual obligation that its subcontractors comply with this 33 clause. 34 (iii) Each contractor with construction craft employees shall 35 make health care expenditures for each employee in an amount 36 per hour worked on the development equivalent to at least the 37 hourly pro rata cost of a Covered California Platinum level plan 38 for two adults 40 years of age and two dependents 0 to 14 years 39 of age for the Covered California rating area in which the 40 development is located. A contractor without construction craft 98 255 -17— SB 423 1 employees shall show a contractual obligation that its 2 subcontractors comply with this clause. Qualifying expenditures 3 shall be credited toward compliance with prevailing wage payment 4 requirements set forth in this paragraph. 5 (iv) (I) The development proponent shall provide to the local 6 government, on a monthly basis while its construction contracts 7 on the development are being performed, a report demonstrating 8 compliance with clauses (ii) and (iii). The reports shall be 9 considered public records under the California Public Records Act 10 (Division 10(commencing with Section 7920.000)of Title 1),and 11 shall be open to public inspection. 12 (II) A development proponent that fails to provide the monthly 13 report shall be subject to a civil penalty for each month for which 14 the report has not been provided, in the amount of 10 percent of 15 the dollar value of construction work performed by that contractor 16 on the development in the month in question, up to a maximum 17 of ten thousand dollars($10,000).Any contractor or subcontractor 18 that fails to comply with clauses (ii) and (iii) shall be subject to a 19 civil penalty of two hundred dollars($200)per day for each worker 20 employed in contravention of clauses (ii) and(iii). 21 (III) Penalties may be assessed by the Labor Commissioner 22 within 18 months of completion of the development using the 23 procedures for issuance of civil wage and penalty assessments 24 specified in Section 1741 of the Labor Code,and may be reviewed 25 pursuant to Section 1742 of the Labor Code. Penalties shall be 26 deposited in the State Public Works Enforcement Fund established 27 pursuant to Section 1771.3 of the Labor Code. 28 (v) Each construction contractor shall maintain and verify 29 payroll records pursuant to Section 1776 of the Labor Code. Each 30 construction contractor shall submit payroll records directly to the 31 Labor Commissioner at least monthly in a format prescribed by 32 the Labor Commissioner in accordance with subparagraph (A) of 33 paragraph (3) of subdivision (a) of Section 1771.4 of the Labor 34 Code. The records shall include a statement of fringe benefits. 35 Upon request by a joint labor-management cooperation committee 36 established pursuant to the Federal Labor Management Cooperation 37 Act of 1978 (29 U.S.C. Sec. 175a), the records shall be provided 38 pursuant to subdivision (e) of Section 1776 of the Labor Code. 39 (vi) All construction contractors shall report any change in 40 apprenticeship program participation or health care expenditures 98 256 SB 423 —18— 1 to the local government within 10 business days, and shall reflect 2 those changes on the monthly report. The reports shall be 3 considered public records pursuant to the California Public Records 4 Act(Division 10(commencing with Section 7920.000)of Title 1) 5 and shall be open to public inspection. 6 (vii) A joint labor-management cooperation committee 7 established pursuant to the Federal Labor Management Cooperation 8 Act of 1978 (29 U.S.C. Sec. 175a) shall have standing to sue a 9 construction contractor for failure to make health care expenditures 10 pursuant to clause(iii)in accordance with Section 218.7 or 218.8 11 of the,Labor Code. 12 (9) Notwithstanding paragraph(8),a development that is subject 13 to approval pursuant to this section is,exempt from any requirement 14 to pay prevailing wages, use a workforce participating in an 15 apprenticeship, or provide health care expenditures if it satisfies 16 both of the following: 17 (A) The project consists of 10 or fewer units. 18 (B) The project is not a public work for purposes of Chapter 1 19 (commencing with Section 1720) of Part 7 of Division 2 of the 20 Labor Code. 21 (10) The development shall not be upon an existing parcel of 22 land or site that is governed under the Mobilehome Residency Law 23 (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 24 of Division 2 of the Civil Code), the Recreational Vehicle Park 25 Occupancy Law(Chapter 2.6 (commencing with Section 799.20) 26 of Title 2 of Part 2 of Division 2 of the Civil Code), the 27 Mobilehome Parks Act(Part 2.1 (commencing with Section 18200) 28 of Division 13 of the Health and Safety Code), or the Special 29 Occupancy Parks Act(Part 2.3 (commencing with Section 18860) 30 of Division 13 of the Health and Safety Code). 31 (b) (1) (A) (i) Before submitting an application for a 32 development subject to the streamlined, ministerial approval 33 process described in subdivision (c), the development proponent 34. shall submit to the local government a notice of its intent to submit 35 an application. The notice of intent shall be in the form of a 36 preliminary application that includes all of the information 37 described in Section 65941.1, as that section read on January 1, 38 2020. 39 (ii) Upon receipt of a notice of intent to submit an application 40 described in clause (i), the local government shall engage in a 98 257 -19— SB 423 1 scoping consultation regarding the proposed development with 2 any California Native American tribe that is traditionally and 3 culturally affiliated with the geographic area, as described in 4 Section 21080.3.1 of the Public Resources Code, of the proposed 5 development.In order to expedite compliance with this subdivision, 6 the local government shall contact the Native American Heritage 7 Commission for assistance in identifying any California Native 8 American tribe that is traditionally and culturally affiliated with 9 the geographic area of the proposed development. 10 (iii) The timeline for noticing and commencing a scoping 11 consultation in accordance with this subdivision shall be as follows: 12 (I) The local government shall provide a formal notice of a 13 development proponent's notice of intent to submit an application 14 described in clause (i) to each California Native American tribe 15 that is traditionally and culturally affiliated with the geographic 16 area of the proposed development within 30 days of receiving that 17 notice of intent. The formal notice provided pursuant to this 18 subclause shall include all of the following: 19 (ia) A description of the proposed development. 20 (ib) The location of the proposed development. 21 (ic) An invitation to engage in a scoping consultation in 22 accordance with this subdivision. 23 (II) Each California Native American tribe that receives a formal 24 notice pursuant to this clause shall have 30 days from the receipt 25 of that notice to accept the invitation to engage in a scoping 26 consultation. 27 (III) If the local government receives a response accepting an 28 invitation to engage in a scoping consultation pursuant to this 29 subdivision, the local government shall commence the scoping 30 consultation within 30 days of receiving that response. 31 (B) The scoping consultation shall recognize that California 32 Native American tribes traditionally and culturally affiliated with 33 a geographic area have knowledge and expertise concerning the 34 resources at issue and shall take into account the cultural 35 significance of the resource to the culturally affiliated California 36 Native American tribe. 37 (C) The parties to a scoping consultation conducted pursuant 38 to this subdivision shall be the local government and any California 39 Native American tribe traditionally and culturally affiliated with 40 the geographic area of the proposed development. More than one 98 258 SB 423 —20— 1 California Native American tribe traditionally and culturally 2 affiliated with the geographic area of the proposed development 3 may participate in the scoping consultation. However, the local 4 government, upon the request of any California Native American 5 tribe traditionally and culturally affiliated with the geographic area 6 of the proposed development, shall engage in a separate scoping 7 consultation with that California Native American tribe. The 8 development proponent and its consultants may participate in a 9 scoping consultation process conducted pursuant to this subdivision 10 if all of the following conditions are met: 11 (i) The development proponent and its consultants agree to 12 respect the principles set forth in this subdivision. 13 (ii) The development proponent and its consultants engage in 14 the scoping consultation in good faith. 15 (iii) The California Native American tribe participating in the 16 scoping consultation approves the participation of the development 17 proponent and its consultants. The California Native American 18 tribe may rescind its approval at any time during the scoping 19 consultation,either for the duration of the scoping consultation or 20 with respect to any particular meeting or discussion held as part 21 of the scoping consultation. 22 (D) The participants to a scoping consultation pursuant to this 23 subdivision shall comply with all of the following confidentiality 24 requirements: 25 (i) Section 7927.000. 26 (ii) Section 7927.005. 27 (iii) Subdivision(c)of Section 21082.3 of the Public Resources 28 Code. 29 (iv) Subdivision (d) of Section 15120 of Title 14 of the 30 California Code of Regulations. 31 (v) Any additional confidentiality standards adopted by the 32 California Native American tribe participating in the scoping 33 consultation. 34 (E) The California Environmental Quality Act (Division 13 35 (commencing with Section 21000)of the Public Resources Code) 36 shall not apply to a scoping consultation conducted pursuant to 37 this subdivision. 38 (2) (A) If,after concluding the scoping consultation,the parties 39 find that no potential tribal cultural resource would be affected by 40 the proposed development,the development proponent may submit 98 259 —21— SB 423 1 an application for the proposed development that is subject to the 2 streamlined,ministerial approval process described in subdivision 3 (c). 4 (B) If, after concluding the scoping consultation, the parties 5 find that a potential tribal cultural resource could be affected by 6 the proposed development and an enforceable agreement is 7 documented between the California Native American tribe and the 8 local government on methods,measures, and conditions for tribal 9 cultural resource treatment,the development proponent may submit 10 the application for a development subject to the streamlined, 11 ministerial approval process described in subdivision(c).The local 12 government shall ensure that the enforceable agreement is included 13 in the requirements and conditions for the proposed development. 14 (C) If, after concluding the scoping consultation, the parties 15 find that a potential tribal cultural resource could be affected by 16 the proposed development and an enforceable agreement is not 17 documented between the California Native American tribe and the 18 local government regarding methods, measures, and conditions 19 for tribal cultural resource treatment, the development shall not 20 be eligible for the streamlined, ministerial approval process 21 described in subdivision (c). 22 (D) For purposes of this paragraph,a scoping consultation shall 23 be deemed to be concluded if either of the following occur: 24 (i) The parties to the scoping consultation document an 25 enforceable agreement concerning methods, measures, and 26 conditions to avoid or address potential impacts to tribal cultural 27 resources that are or may be present. 28 (ii) One or more parties to the scoping consultation, acting in 29 good faith and after reasonable effort, conclude that a mutual 30 agreement on methods, measures, and conditions to avoid or 31 address impacts to tribal cultural resources that are or may be 32 present cannot be reached. 33 (E) If the development or environmental setting substantially 34 changes after the completion of the scoping consultation,the local 35 government shall notify the California Native American tribe of 36 the changes and engage in a subsequent scoping consultation if 37 requested by the California Native American tribe. 38 (3) A local government may only accept an application for 39 streamlined,ministerial approval pursuant to this section if one of 40 the following applies: 98 260 SB 423 —22— 1 (A) A California Native American tribe that received a formal 2 notice of the development proponent's notice of intent to submit 3 an application pursuant to subclause (I) of clause (iii) of 4 subparagraph(A) of paragraph(1) did not accept the invitation to 5 engage in a scoping consultation. 6 (B) The California Native American tribe accepted an invitation 7 to engage in a scoping consultation pursuant to subclause (II) of 8 clause(iii) of subparagraph(A) of paragraph(1)but substantially 9 failed to engage in the scoping consultation after repeated 10 documented attempts by the local government to engage the 11 California Native American tribe. 12 (C) The parties to a scoping consultation pursuant to this 13 subdivision find that no potential tribal cultural resource will be 14 affected by the proposed development pursuant to subparagraph 15 (A) of paragraph (2). 16 (D) A scoping consultation between a California Native 17 American tribe and the local government has occurred in 18 accordance with this subdivision and resulted in agreement 19 pursuant to subparagraph (B) of paragraph (2). 20 (4) A project shall not be eligible for the streamlined,ministerial 21 process described in subdivision(c)if any of the following apply: 22 (A) There is a tribal cultural resource that is on a national,state, 23 tribal,or local historic register list located on the site of the project. 24 (B) There is a potential tribal cultural resource that could be 25 affected by the proposed development and the parties to a scoping 26 consultation conducted pursuant to this subdivision do not 27 document an enforceable agreement on methods, measures, and 28 conditions for tribal cultural resource treatment, as described in 29 subparagraph (C) of paragraph (2). 30 (C) The parties to a scoping consultation conducted pursuant 31 to this subdivision do not agree as to whether a potential tribal 32 cultural resource will be affected by the proposed development. 33 (5) (A) If, after a scoping consultation conducted pursuant to 34 this subdivision, a project is not eligible for the streamlined, 35 ministerial process described in subdivision (c) for any or all of 36 the following reasons, the local government shall provide written 37 documentation of that fact, and an explanation of the reason for 38 which the project is not eligible, to the development proponent 39 and to any California Native American tribe that is a party to that 40 scoping consultation: 98 261 —23— SB 423 1 (i) There is a tribal cultural resource that is on a national, state, 2 tribal,or local historic register list located on the site of the project, 3 as described in subparagraph(A) of paragraph (4). 4 (ii) The parties to the scoping consultation have not documented 5 an enforceable agreement on methods, measures, and conditions 6 for tribal cultural resource treatment,as described in subparagraph 7 (C) of paragraph (2) and subparagraph (B) of paragraph (4). 8 (iii) The parties to the scoping consultation do not agree as to 9 whether a potential tribal cultural resource will be affected by the 10 proposed development, as described in subparagraph (C) of 11 paragraph (4). 12 (B) The written documentation provided to a development 13 proponent pursuant to this paragraph shall include information on 14 how the development proponent may seek a conditional use permit 15 or other discretionary approval of the development from the local 16 government. 17 (6) This section is not intended, and shall not be construed, to 18 limit consultation and discussion between a local government and 19 a California Native American tribe pursuant to other applicable 20 law, confidentiality provisions under other applicable law, the 21 protection of religious exercise to the fullest extent permitted under 22 state and federal law,or the ability of a California Native American 23 tribe to submit information to the local government or participate 24 in any process of the local government. 25 (7) For purposes of this subdivision: 26 (A) "Consultation" means the meaningful and timely process 27 of seeking, discussing, and considering carefully the views of 28 others, in a manner that is cognizant of all parties' cultural values 29 and, where feasible, seeking agreement. Consultation between 30 local governments and Native American tribes shall be conducted 31 in a way that is mutually respectful of each party's sovereignty. 32 Consultation shall also recognize the tribes' potential needs for 33 confidentiality with respect to places that have traditional tribal 34 cultural importance. A lead agency shall consult the tribal 35 consultation best practices described in the "State of California 36 Tribal Consultation Guidelines: Supplement to the General Plan 37 Guidelines"prepared by the Office of Planning and Research. 38 (B) "Scoping"means the act of participating in early discussions 39 or investigations between the local government and California 40 Native American tribe, and the development proponent if 98 • 262 SB 423 —24— 1 authorized by the California Native American tribe,regarding the 2 potential effects a proposed development could have on a potential 3 tribal cultural resource, as defined in Section 21074 of the Public 4 Resources Code, or California Native American tribe, as defined 5 in Section 21073 of the Public Resources Code. 6 (8) This subdivision shall not apply to any project that has been 7 approved under the streamlined, ministerial approval process 8 provided under this section before the effective date of the act 9 adding this subdivision. 10 (c) (1) * Notwithstanding any local law, if a local government's 11 planning director or any cquivalcnt local government staff, 12. including all relevant planning and permitting departments, 13 equivalent position determines that a development submitted 14 pursuant to this section is consistent with the objective planning 15 standards specified in subdivision (a) and pursuant to paragraph 16 (3) of this subdivision,-it the local government shall approve the 17 development.Upon a determination that a development submitted 18 pursuant to this section is in conflict with any of the objective 19 planning . standards specified in subdivision (a), the local 20 government staff or relevant local planning and permitting 21 department that made the determination shall provide the 22 development proponent written documentation of which standard 23 or standards the development conflicts with, and an explanation 24 for the reason or reasons the development conflicts with that 25 standard or standards, as follows: 26 (A) Within 60 days of submittal of the development to the local 27 government pursuant to this section if the development contains 28 150 or fewer housing units. 29 (B) Within 90 days of submittal of the development to the local 30 government pursuant to this section if the development contains 31 more than 150 housing units. 32 (2) If the local government's planning director or any equivalent 33 local government staff equivalent position fails to provide the 34 required documentation pursuant to paragraph(1),the development 35 shall be deemed to satisfy the objective planning standards 36 specified in subdivision (a). 37 (3) For purposes of this section, a development is consistent 38 with the objective planning standards specified in subdivision (a) 39 if there is substantial evidence that would allow a reasonable person 40 to conclude that the development is consistent with the objective 98 263 —25— SB 423 1 planning standards.The local government shall not determine that 2 a development, including an application for a modification under 3 subdivision (g), (h), is in conflict with the objective planning 4 standards on the basis that application materials are not included, 5 if the application contains substantial evidence that would allow 6 a reasonable person to conclude that the development is consistent 7 with the objective planning standards. 8 (4) For purposes of evaluating consistency with the objective 9 planning standards under this section, the local government shall 10 11 requiring presubmittal scope approval by the local government or 12 other studies or materials that arc unnecessary to ascertain 13 consistency with the objective planning standards. 14 (4) Upon submittal of an application for streamlined, ministerial 15 approval pursuant to this section to the local government, all 16 departments of the local government that are required to issue an 17 approval of the development prior to the granting of an entitlement 18 shall comply with the requirements of this section within the time 19 periods specified in paragraph(1). 20 (d) (1) Any design review of the development may be conducted 21 by the local government's planning commission or any equivalent 22 board or commission responsible for design review. That design 23 review shall be objective and be strictly focused on assessing 24 compliance with criteria required for streamlined projects,as well 25 as any reasonable objective design standards published and adopted 26 by ordinance or resolution by a local jurisdiction before submission 27 of a development application, and shall be broadly applicable to 28 development within the jurisdiction. That design review shall be 29 completed, and if the development is consistent with all objective 30 standards,the local government shall approve the development as 31 follows and shall not in any way inhibit, chill, or preclude the 32 ministerial approval provided by this section or its effect, as • 33 applicable: 34 (A) Within 90 days of submittal of the development to the local 35 government pursuant to this section if the development contains 36 150 or fewer housing units. 37 (B) Within 180 days of submittal of the development to the 38 local government pursuant to this section if the development 39 contains more than 150 housing units. • 98 264 SB 423 —26— 1 (2) If the development is consistent with the requirements of 2 subparagraph (A) or (B) of paragraph (9) of subdivision (a) and 3 is consistent with all objective subdivision standards in the local 4 subdivision ordinance, an application for a subdivision pursuant 5 to the Subdivision Map Act(Division 2(commencing with Section 6 66410)) shall be exempt from the requirements of the California 7 Environmental Quality Act(Division 13(commencing with Section 8 21000) of the Public Resources Code) and shall be subject to the 9 public oversight timelines set forth in paragraph (1). • 10 (3) If a local government determines that a development 11 submitted pursuant to this section is in conflict with any of the 12 standards imposed pursuant to paragraph (1), it shall provide the 13 development proponent written documentation of which objective 14 standard or standards the development conflicts with, and an 15 explanation for the reason or reasons the development conflicts 16 with that objective standard or standards consistent with the 17 timelines described in paragraph (1) of subdivision (c). 18 (e) (1) Notwithstanding any other law, a local government, 19 whether or not it has adopted an ordinance governing automobile 20 parking requirements in multifamily developments, shall not 21 impose automobile parking standards for a streamlined 22 development that was approved pursuant to this section in any of 23 the following instances: 24 (A) The development is located within one-half mile of public 25 transit. 26 (B) The development is located within an architecturally and 27 historically significant historic district. 28 (C) When on-street parking permits are required but not offered 29 to the occupants of the development. 30 (D) When there is a car share vehicle located within one block 31 of the development. 32 (2) If the development does not fall within any of the categories 33 described in paragraph(1),the local government shall not impose 34 automobile parking requirements for streamlined developments 35 approved pursuant to this section that exceed one parking space 36 per unit. 37 (f) Notwithstanding any law, a local government shall not 38 require any of the following prior to approving a development that 39 meets the requirements of this section: 98 265 —27— SB 423 1 (1) Studies, information, or other materials that do not pertain 2 directly to determining whether the development is consistent with 3 the objective planning standards applicable to the development. 4 (2) (A) Compliance with any standards necessary to receive a 5 postentitlement permit. 6 (B) This paragraph does not prohibit a local agency from 7 requiring compliance with any standards necessary to receive a 8 postentitlement permit after a permit has been issued pursuant to 9 this section. 10 (C) For purposes of this paragraph, "postentitlement permit" 11 has the same meaning as provided in subparagraph (A) of 12 paragraph (3) of subdivision (j) of Section 65913.3. 13 {#� 14 (g) (1) If a local government approves a development pursuant 15 to this section, then,notwithstanding any other law, that approval 16 shall not expire if the project satisfies both of the following 17 requirements: 18 (A) The project includes public investment in housing 19 affordability,beyond tax credits. 20 (B) At least 50 percent of the units are affordable to households 21 making at or below 80 percent of the area median income. 22 (2) (A) If a local government approves a development pursuant 23 to this section, and the project does not satisfy the requirements 24 of subparagraphs(A)and(B)of paragraph(1),that approval shall 25 remain valid for three years from the date of the final action 26 establishing that approval, or if litigation is filed challenging that 27 approval, from the date of the final judgment upholding that 28 approval. Approval shall remain valid for a project provided 29 construction activity, including demolition and grading activity, 30 on the development site has begun pursuant to a permit issued by 31 the local jurisdiction and is in progress. For purposes of this 32 subdivision, "in progress" means one of the following: 33 (i) The construction has begun and has not ceased for more than 34 180 days. 35 (ii) If the development requires multiple building permits, an 36 initial phase has been completed, and the project proponent has 37 applied for and is diligently pursuing a building permit for. a 38 subsequent phase, provided that once it has been issued, the 39 building permit for the subsequent phase does not lapse. • 98 266 SB 423 —28— 1 (B) Notwithstanding subparagraph(A),a local government may 2 grant a project a one-time, one-year extension if the project 3 proponent can provide documentation that there has been 4 significant progress toward getting the development construction 5 ready, such as filing a building permit application. 6 (3) If the development proponent requests a modification 7 pursuant to subdivision-(g) (h), then the time during which the 8 approval shall remain valid shall be extended for the number of 9 days between the submittal of a modification request and the date 10 of its final approval, plus an additional 180 days to allow time to 11 obtain a building permit. If litigation is filed relating to the 12 modification request,the time shall be further extended during the 13 pendency of the litigation.The extension required by this paragraph 14 shall only apply to the first request for a modification submitted 15 by the development proponent. 16 (4) The amendments made to this subdivision by the act that 17 added this paragraph shall also be retroactively applied to 18 developments approved prior to January 1, 2022. 19 (g) 20 (h) (1) (A) A development proponent may request a 21 modification to a development that has been approved under the 22 streamlined,ministerial approval process provided in subdivision 23 (c) if that request is submitted to the local government before the 24 issuance of the final building permit required for construction of 25 the development. 26 (B) Except as provided in paragraph (3), the local government 27 shall approve a modification if it determines that the modification 28 is consistent with the objective planning standards specified in 29 subdivision (a) that were in effect when the original development 30 application was first submitted. 31 (C) The local government shall evaluate any modifications 32 requested pursuant to this subdivision for consistency with the 33 objective planning standards using the same assumptions and 34 analytical methodology that the local government originally used 35 to assess consistency for the development that was approved for 36 streamlined, ministerial approval pursuant to subdivision (c). 37 (D) A guideline that was adopted or amended by the department 38 pursuant to subdivision(m)(n)after a development was approved 39 through the streamlined,ministerial approval process described in 98 267 —29— SB 423 1 subdivision (c) shall not be used as a basis to deny proposed 2 modifications. 3 (2) Upon receipt of the development proponent's application 4 requesting a modification, the local government shall determine 5 if the requested modification is consistent with the objective 6 planning standard and either approve or deny the modification 7 request within 60 days after submission of the modification, or 8 within 90 days if design review is required. 9 (3) Notwithstanding paragraph (1), the local government may 10 apply objective planning standards adopted after the development 11 application was first submitted to the requested modification in 12 any of the following instances: 13 (A) The development is revised such that the total number of 14 residential units or total square footage of construction changes 15 by 15 percent or more. The calculation of the square footage of 16 construction changes shall not include underground space. 17 (B) The development is revised such that the total number of 18 residential units or total square footage of construction changes 19 by 5 percent or more and it is necessary to subject the development 20 to an objective standard beyond those in effect when the 21 development application was submitted in order to mitigate or 22 avoid a specific, adverse impact, as that term is defined in 23 subparagraph (A) of paragraph (1) of subdivision (j) of Section 24 65589.5, upon the public health or safety and there is no feasible 25 alternative method to satisfactorily mitigate or avoid the adverse 26 impact. The calculation of the square footage of construction 27 changes shall not include underground space. 28 (C) (i) Objective building standards contained in the California 29 Building Standards Code (Title 24 of the California Code of 30 Regulations), including, but not limited to, building plumbing, 31 electrical, fire, and grading codes, may be applied to all 32 modification applications that are submitted prior to the first 33 building permit application. Those standards may be applied to 34 modification applications submitted after the first building permit 35 application if agreed to by the development proponent. 36 (ii) The amendments made to clause (i) by the act that added 37 clause (i) shall also be retroactively applied to modification 38 applications submitted prior to January 1, 2022. 39 (4) The local government's review of a modification request 40 pursuant to this subdivision shall be strictly limited to determining 98 268 SB 423 —30— 1 whether the modification,including any modification to previously 2 approved density bonus concessions or waivers, modify the 3 development's consistency with the objective planning standards 4 and shall not reconsider prior determinations that are not affected 5 by the modification. 6 (h 7 (i) (1) A local government shall not adopt or impose any 8 requirement, including, but not limited to, increased fees or 9 inclusionary housing requirements,that applies to a project solely 10 or partially on the basis that the project is eligible to receive 11 ministerial or streamlined approval pursuant to this section. 12 (2) (A) A local government shall issue a subsequent permit 13 required for a development approved under this section if the 14 application substantially complies with the development as it was 15 approved pursuant to subdivision (c). Upon receipt of an 16 application for a subsequent permit, the local government shall 17 process the permit without unreasonable delay and shall not impose 18 any procedure or requirement that is not imposed on projects that 19 are not approved pursuant to this section. The local government 20 shall consider the application for subsequent permits based upon 21 the objective standards specified in any state or local laws that 22 were in effect when the original development application was 23 submitted, unless the development proponent agrees to a change 24 in objective standards. Issuance of subsequent permits shall 25 implement the approved development, and review of the permit 26 application shall not inhibit, chill, or preclude the development. 27 For purposes of this paragraph, a "subsequent permit" means a 28 permit required subsequent to receiving approval under subdivision 29 (c), and includes, but is not limited to, demolition, grading, 30 encroachment, and building permits and final maps, if necessary. 31 (B) The amendments made to subparagraph(A)by the act that 32 added this subparagraph shall also be retroactively applied to 33 subsequent permit applications submitted prior to January 1,2022. 34 (3) (A) If a public improvement is necessary to implement a 35 development that is subject to the streamlined,ministerial approval 36 pursuant to this section, including, but not limited to, a bicycle 37 lane, sidewalk or walkway, public transit stop, driveway, street 38 paving or overlay,a curb or gutter,a modified intersection,a street 39 sign or street light, landscape or hardscape, an above-ground or 40 underground utility connection, a water line, fire hydrant, storm 98 269 —31— SB 423 1 or sanitary sewer connection,retaining wall,and any related work, 2 and that public improvement is located on land owned by the local 3 government, to the extent that the public improvement requires 4 approval from the local government, the local government shall 5 not exercise its discretion over any approval relating to the public 6 improvement in a manner that would inhibit,chill,or preclude the 7 development. 8 (B) If an application for a public improvement described in 9 subparagraph (A) is submitted to a local government, the local 10 government shall do all of the following: 11 (i) Consider the application based upon any objective standards 12 specified in any state or local laws that were in effect when the 13 original development application was submitted. 14 (ii) Conduct its review and approval in the same manner as it 15 would evaluate the public improvement if required by a project 16 that is not eligible to receive ministerial or streamlined approval 17 pursuant to this section. 18 (C) If an application for a public improvement described in 19 subparagraph (A) is submitted to a local government, the local 20 government shall not do either of the following: 21 (i) Adopt or impose any requirement that applies to a project 22 solely or partially on the basis that the project is eligible to receive 23 ministerial or streamlined approval pursuant to this section. 24 (ii) Unreasonably delay in its consideration,review,or approval 25 of the application. 26 27 (j) (1) This section shall not affect a development proponent's 28 ability to use any alternative streamlined by right permit processing 29 adopted by a local government, including the provisions of 30 subdivision (i) of Section 65583.2. 31 (2) This section shall not prevent a development from also 32 qualifying as a housing development project entitled to the 33 protections of Section 65589.5.This paragraph does not constitute 34 a change in, but is declaratory of, existing law. 35 36 (k) The California Environmental Quality Act (Division 13 37 (commencing with Section 21000)of the Public Resources Code) 38 does not apply to actions taken by a state agency,local government, 39 or the San Francisco Bay Area Rapid Transit District to: 98 270 SB 423 —32— 1 (1) Lease, convey, or encumber land owned by the local 2 government or the San Francisco Bay Area Rapid Transit District 3 or to facilitate the lease, conveyance, or encumbrance of land 4 owned by the local government, or for the lease of land owned by 5 the San Francisco Bay Area Rapid Transit District in association 6 with an eligible TOD project, as defined pursuant to Section 7 29010.1 of the Public Utilities Code, nor to any decisions 8 associated with that lease, or to provide financial assistance to a 9 development that receives streamlined approval pursuant to this 10 section that is to be used for housing for persons and families of 11 very low, low, or moderate income, as defined in Section 50093 12 of the Health and Safety Code. 13 (2) Approve improvements located on land owned by the local 14 government or the San Francisco Bay Area Rapid Transit District 15 that are necessary to implement a development that receives 16 streamlined approval pursuant to this section that is to be used for 17 housing for persons and families of very low, low, or moderate 18 income,as defined in Section 50093 of the Health and Safety Code. 19 {JO 20 (l) For purposes of establishing the total number of units in a 21 development under this chapter, a development or development 22 project includes both of the following: 23 (1) All projects developed on a site, regardless of when those 24 developments occur. 25 (2) All projects developed on sites adjacent to a site developed 26 pursuant to this chapter if, after January 1, 2023, the adjacent site 27 had been subdivided from the site developed pursuant to this 28 chapter. 29 (4) 30 (m) For purposes of this section, the following terms have the 31 following meanings: 32 (1) "Affordable housing cost"has the same meaning as set forth 33 in Section 50052.5 of the Health and Safety Code. 34 (2) (A) Subject to the qualification provided by subparagraphs 35 (B) and (C), "affordable rent" has the same meaning as set forth 36 in Section 50053 of the Health and Safety Code. 37 (B) For a development for which an application pursuant to this 38 section was submitted prior to January 1, 2019, that includes 500 39 units or more of housing,and that dedicates 50 percent of the total 40 number of units,before calculating any density bonus,to housing 98 271 -33— SB 423 1 affordable to households making at, or below, 80 percent of the 2 area median income,affordable rent for at least 30 percent of these 3 units shall be set at an affordable rent as defined in subparagraph 4 (A) and "affordable rent" for the remainder of these units shall 5 mean a rent that is consistent with the maximum rent levels for a 6 housing development that receives an allocation of state or federal 7 low-income housing tax credits from the California Tax Credit 8 Allocation Committee. 9 (C) For a development that dedicates 100 percent of units, 10 exclusive of a manager's unit or units,to lower income households, 11 "affordable rent" shall mean a rent that is consistent with the 12 maximum rent levels stipulated by the public program providing 13 financing for the development. 14 (3) "Department" means the Department of Housing and 15 Community Development. 16 (4) "Development proponent"means the developer who submits 17 a housing development project application to a local government 18 under the streamlined, ministerial review process pursuant to this 19 section. 20 (5) "Completed entitlements" means a housing development 21 that has received all the required land use approvals or entitlements 22 necessary for the issuance of a building permit. 23 (6) "Health care expenditures" include contributions under 24 Section 401(a), 501(c), or 501(d) of the Internal Revenue Code 25 and payments toward "medical care," as defined in Section 26 213(d)(1) of the Internal Revenue Code. 27 (7) "Housing development project"has the same meaning as in 28 Section 65589.5. 29 (8) "Locality" or"local government" means a city, including a 30 charter city, a county, including a charter county, or a city and 31 county, including a charter city and county. 32 (9) "Moderate-income housing units"means housing units with 33 an affordable housing cost or affordable rent for persons and 34 families of moderate income, as that term is defined in Section 35 50093 of the Health and Safety Code. 36 (10) "Objective planning standards"shall not include standards 37 in the.California Building Standards Code (Title 24 of the 38 California Codc of Regulations), local building codes, fire codes, 39 noise ordinances, other codes requiring detailed technical 40 specifications, studies that arc evaluated with subsequent permits, 98 272 SS 423 —34— 1 or other standards that arc not reasonably ascertainable by the local 2 government within the time limits set forth in subdivisions(c)and 3 (d). Excluded objective planning standards include, but arc not 4 limited to, construction logistics plans,plumbing plans, electrical 5 plans, grading, excavation plans, gcotechnical studies, and offsite 6 public improvement plans. 7 (11) 8 (10) "Production report" means the information reported 9 pursuant to subparagraph (H) of paragraph (2) of subdivision (a) 10 of Section 65400. 11 (12) 12 (11) "State agency" includes every state office, officer, 13 department,division,bureau,:board,and commission,but does not 14 include the California State University or the University of 15 California. 16 (13) 17 (12) "Reporting period"means either of the following: 18 (A) The first half of the regional housing needs assessment • 19 cycle. 20 (B) The last half of the regional housing needs assessment cycle. 21 (14) 22 (13) "Urban uses" means any current or former residential, 23 commercial,public institutional,transit or transportation passenger 24 facility, or retail use, or any combination of those uses. 25 (m) 26 (n) The department may review, adopt, amend, and repeal 27 guidelines to implement uniform standards or criteria that 28 supplement or clarify the terms,references, or standards set forth 29 in this section. Any guidelines or terms adopted pursuant to this 30 subdivision shall not be subject to Chapter 3.5 (commencing with 31 Section 11340)of Part 1 of Division 3 of Title 2 of the Government 32 Code. 33 (-n 34 (o) The determination of whether an application for a 35 development is subject to the streamlined ministerial approval 36 process provided by subdivision (c) is not a "project" as defined 37 in Section 21065 of the Public Resources Code. 38 (o) 39 (p) Notwithstanding any law, for purposes of this section and 40 for development on property owned by or leased to the state, the 98 273 —35— SB 423 1 Department of General Services may act in the place of a locality 2 or local government, at the discretion of the department. 3 fp) 4 (q) The provisions of clause (iii) of subparagraph (E) of 5 paragraph(8)of subdivision(a)relating to health care expenditures 6 are distinct and severable from the remaining provisions of this 7 section. However, the remaining portions of paragraph (8) of 8 subdivision (a) are a material and integral part of this section and 9 are not severable. If any provision or application of paragraph (8) 10 of subdivision (a) is held invalid, this entire section shall be null 11 and void. 12 (q) 13 (r) It is the policy of the state that this section be interpreted 14 and implemented in a manner to afford the fullest possible weight 15 to the interest of, and the approval and provision of, increased 16 housing supply. 17 SEC.3. The Legislature finds and declares that ensuring access 18 to affordable housing is a matter of statewide concern and is not 19 a municipal affair as that term is used in Section 5 of Article XI 20 of the California Constitution. Therefore, Section 2 of this act 21 amending Section 65913.4 of the Government Code applies to all 22 cities, including charter cities. 23 SEC. 4. No reimbursement is required by this act pursuant to 24 Section 6 of Article XIIIB of the California Constitution because 25 a local agency or school district has the authority to levy service 26 charges, fees, or assessments sufficient to pay for the program or 27 level of service mandated by this act or because costs that may be 28 incurred by a local agency or school district will be incurred 29 because this act creates a new crime or infraction, eliminates a 30 crime or infraction,or changes the penalty for a crime or infraction, 31 within the meaning of Section 17556 of the Government Code,or 32 changes the definition of a crime within the meaning of Section 6 33 of Article XIII B of the California Constitution. 0 98 274 CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 9 r= "`'°UAI-Fit>, TONY STRICKLAND MAYOR May 3, 2023 The Honorable Scott Wiener 1021 0 Street, Suite 8620 Sacramento, CA 95814-4900 RE: SB 423 (Wiener) Streamlined housing approvals: multifamily housing developments: SB 35 (Chapter 366, Statutes of 2017) Expansion. Dear Senator Wiener: The City of Huntington Beach writes to express our OPPOSITION to SB 423, which would greatly expand SB 35 (Chapter 366, Statutes of 2017) provisions and eliminate the January 1, 2026 sunset date. On any given day, newspaper headlines in California and across the nation are highlighting the State's growing housing supply and affordability crisis. Seven in ten Californians view housing affordability as one of the top problems in their community, and there is growing concern from residents that housing prices are so expensive, younger generations will be priced out of ever being able to buy a home. The City of Huntington Beach intimately understands this crisis as it plays out in our community every day. Local leaders are working to find creative solutions so homes of all income levels can be built, while navigating the state's annual barrage of overreaching housing bills that have thus far demonstrated limited success. SB 423 is the latest overreaching bill. This measure would double-down on the recent trend of the State overriding its own mandated local housing plans by forcing cities to approve certain housing projects without regard to the quality of the project for its future residents or the needs of the community, opportunities for environmental review, or public input. While it may be frustrating and less profitable for some developers to provide open space, safe fire access, parking and address neighborhood concerns about traffic, air quality, infrastructure capacity and other development impacts, those directly affected by such projects have a right to be heard. Public engagement also often leads to better projects. Not having such outlets will increase public distrust in government and result in additional ballot measures limiting housing development. Instead of continuing to pursue top-down, one-size-fits-all legislation, lawmakers should collaborate with local officials. That is why the League of California Cities is calling on the Governor and lawmakers to include a $3 billion annual investment in the state Fax 714.536.5233 Page 1 of 2 Office:714.536.5553 275 budget to help cities prevent and reduce homelessness and spur housing development. Targeted, ongoing funding is the only way cities can find community-based solutions that get our residents off the streets and keep them in their homes. California will never produce the number of homes needed with an increasingly state driven, by-right housing approval process. What is really needed is a sustainable state investment that matches the scale of this long-term crisis. For these reasons, the City of Huntington Beach respectfully opposes SB 423. Sincerely, Tony Strickland Mayor City of Huntington Beach Cc: Senator Janet Nguyen Senator Dave Min Assembly Member Diane Dixon ACC-OC Board of Directors (via email) Bismarck Obando, Director of Public Affairs (bismarck@calcities.org) League of California Cities (cityletters@calcities.org) Fax 714.536.5233 Page 2 of 2 Office: 714.536.5575 276 SENATE BILL No. 252 Introduced by Senators Gonzalez,Stern,and Wiener January 30, 2023 An act to amend Section 16642 of, and to add Section 7513.76 to, the Government Code, relating to public retirement systems. LEGISLATIVE COUNSEL'S DIGEST SB 252, as introduced, Gonzalez. Public retirement systems: fossil fuels: divestment. The California Constitution grants the retirement board of a public employee retirement system plenary authority and fiduciary responsibility for investment of moneys and administration of the retirement fund and system. These provisions qualify this grant of powers by reserving to the Legislature the authority to prohibit investments if it is in the public interest and the prohibition satisfies standards of fiduciary care and loyalty required of a retirement board. Existing law prohibits the boards of the Public Employees'Retirement System and the State Teachers' Retirement System from making new investments or renewing existing investments of public employee retirement funds in a thermal coal company, as defined. Existing law requires the boards to liquidate investments in thermal coal companies on or before July 1, 2017, and requires the boards, in making a determination to liquidate investments, to constructively engage with thermal coal companies to establish whether the companies are transitioning their business models to adapt to clean energy generation. Existing law provides that it does not require a board to take any action unless the board determines in good faith that the action is consistent with the board's fiduciary responsibilities established in the California Constitution. 99 277 SB 252 —2— This bill would prohibit the boards of the Public Employees' Retirement System and the State Teachers' Retirement System from making new investments or renewing existing investments of public employee retirement funds in a fossil fuel company, as defined. The bill would require the boards to liquidate investments in a fossil fuel company on or before July 1,2030.The bill would temporarily suspend the above-described liquidation provision upon a good faith determination by the board that certain conditions materially impact normal market mechanisms for pricing assets, as specified, and would make this suspension provision inoperative on January 1, 2035. The bill would provide that it does not require a board to take any action unless the board determines in good faith that the action is consistent with the board's fiduciary responsibilities established in the California Constitution. This bill would require the boards, commencing February 1, 2025, and annually thereafter, to file a report with the Legislature and the Governor, containing specified information, including a list of fossil fuel companies of which the board has liquidated their investments. The bill would provide that board members and other officers and employees shall be held harmless and be eligible for indemnification in connection with actions taken pursuant to the bill's requirements, as specified. 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. Section 7513.76 is added to the Government 2 Code, to read: 3 7513.76. (a) The Legislature finds and declares all of the 4 following: 5 (1) The combustion of coal,oil,and natural gas,known as fossil 6 fuels, is the single largest contributor to global climate change. 7 (2) Climate change affects all parts of the California economy 8 and environment, and the Legislature has adopted numerous laws 9 to mitigate greenhouse gas emissions and to adapt to a changing 10 climate. 11 (3) Fossil fuel companies' plans to expand production, public 12 relations campaigns, and efforts to obstruct climate stabilization 99 • 278 -3— SB 252 1 policies are incompatible with California's climate goals, and our 2 obligation to current and future generations. 3 (4) The production of fossil fuels and the effects of climate 4 change resulting from the use of fossil fuels all lead to 5 disproportionate adverse impacts on low-income communities and 6 communities of color. 7 (5) A transition away from fossil fuels to clean energy will 8 create greater employment, support the economy, and improve 9 public health. 10 (6) The purpose of this section is to require the Public 11 Employees'Retirement System and the State Teachers'Retirement 12 System, consistent with, and not in violation of, their fiduciary 13 responsibilities, to divest their holdings of fossil fuel company 14 investments as one part of the state's broader efforts to decarbonize 15 the California economy and to transition to clean, pollution-free 16 energy resources. 17 (b) As used in this section, the following definitions apply: 18 (1) "Board" means the Board of Administration of the Public 19 Employees'Retirement System or the Teachers'Retirement Board 20 of the State Teachers'Retirement System, as applicable. 21 (2) "Company" means a sole proprietorship, organization, 22 association, corporation, partnership, venture, or other entity, or 23 its subsidiary or affiliate, that exists for profitmaking purposes or 24 to otherwise secure economic advantage. 25 (3) "Investment"means the purchase, ownership, or control of 26 publicly issued stock, corporate bonds, or other debt instruments 27 issued by a company. "Investments" also includes purchase, 28 ownership,or control of mutual funds and exchange-traded funds, 29 unless the board is satisfied on reasonable grounds that a mutual 30 fund or exchange-traded fund is unlikely to have in excess of 2 31 percent of its assets, averaged annually, directly or indirectly 32 invested in fossil fuel companies. 33 (4) "Public employee retirement funds" means the Public 34 Employees' Retirement Fund described in Section 20062 of this 35 code, and the Teachers' Retirement Fund described in Section 36 22167 of the Education Code. 37 (5) "Fossil fuel"means petroleum oil,natural gas, and thermal 38 coal.Thermal coal is coal used to generate electricity, such as that 39 which is burned to create steam to run turbines.Thermal coal does 40 not mean metallurgical coal or coking coal used to produce steel. 99 279 SB 252 —4— 1 (6) "Fossil fuel company"means one of the 200 largest publicly 2 traded fossil fuel companies, as established by carbon content in 3 the companies'proven oil, gas, and coal reserves. 4 (c) The board shall not make additional or new investments or 5 renew existing investments of public employee retirement funds 6 in a fossil fuel company. 7 (d) (1) The board shall liquidate investments in a fossil fuel 8 company on or before July 1, 2030. 9 (2) Notwithstanding paragraph (1), this subdivision shall be 10 suspended upon a good faith determination by the board that an 11 act of God, war, or other unforeseeable event creates conditions 12 that materially impact normal market mechanisms for pricing assets 13 and shall only be reinstated upon a subsequent good faith finding 14 of the board that market conditions have substantially returned to 15 normal ex-ante. Upon such a finding, the board shall have six 16 months to liquidate any remaining investments in a fossil fuel 17 company. 18 (3) Paragraph (2) shall remain in effect only until January 1, 19 2035, and as of that date is inoperative. 20 (e) (1) Commencing February 1, 2025, and annually on 21 February 1 thereafter,the board shall create a report that includes 22 the following: 23 (A) A list of fossil fuel companies of which the board has 24 liquidated its investments pursuant to subdivision(d). 25 (B) A list of fossil fuel companies with which the board still 26 has not liquidated its investments. 27 (C) A list of fossil fuel companies of which the board has not 28 liquidated its investments as a result of a determination made 29 pursuant to subdivision(f)that a sale or transfer of investments is 30 inconsistent with the fiduciary responsibilities of the board as 31' described in Section 17 of Article XVI of the California 32 Constitution and the board's findings adopted in support of that 33 determination. 34 (D) An analysis of methods and opportunities to rapidly and 35 effectively reduce dependence on fossil fuels and transition to 36 alternative energy sources in a realistic timeframe that avoids 37 negatively contributing to economic conditions particularly 38 damaging to public employee retirement funds and to overall net 39 employment earnings of the state's workforce. 99 280 -5— SB 252 1 (2) The board shall submit the report to the Legislature, in 2 compliance with Section 9795,and to the Governor,and shall post 3 the report on the board's internet website. 4 (f) Nothing in this section shall require a board to take action 5 as described in this section unless the board determines in good 6 faith that the action described in this section is consistent with the 7 fiduciary responsibilities of the board described in Section 17 of 8 Article XVI of the California Constitution. 9 SEC. 2. Section 16642 of the Government Code, as amended 10 by Section 3 of Chapter 459 of the Statutes of 2019, is amended 11 to read: 12 16642. (a) Present, future, and former board members of the 13 Public Employees' Retirement System or the State Teachers' 14 Retirement System, jointly and individually, state officers and 15 employees,research firms described in subdivision(d)of Section 16 7513.6, and investment managers under contract with the Public 17 Employees'Retirement System or the State Teachers'Retirement 18 System shall be indemnified from the General Fund and held 19 harmless by the State of California from all claims,demands,suits, 20 actions, damages, judgments, costs, charges, and expenses, 21 including court costs and attorney's fees, and against all liability, 22 losses, and damages of any nature whatsoever that these present, 23 future, or former board members, officers, employees, research 24 firms as described in subdivision(d)of Section 7513.6,or contract • 25 investment managers shall or may at any time sustain by reason 26 of any decision to restrict, reduce, or eliminate investments 27 pursuant to Sections 7513.6, 7513.7, 7513.74, and 7513.75. 28 7513.75, and 7513.76. 29 (b) This section shall remain in effect only until Section 7513.74 30 is repealed, and as of that date is repealed. 31 SEC. 3. Section 16642 of the Government Code, as added by 32 Section 4 of Chapter 459 of the Statutes of 2019, is amended to 33 read: 34 16642. (a) Present, future, and former board members of the 35 Public Employees' Retirement System or the State Teachers' 36 Retirement System, jointly and individually, state officers and 37 employees,research firms described in subdivision(d)of Section 38 7513.6, and investment managers under contract with the Public 39 Employees'Retirement System or the State Teachers'Retirement 40 System shall be indemnified from the General Fund and held 99 • 281 SB 252 —6— 1 harmless by the State of California from all claims,demands,suits, 2 actions, damages, judgments, costs, charges, and expenses, 3 including court costs and attorney's fees, and against all liability, 4 losses, and damages of any nature whatsoever that these present, 5 future, or former board members, officers, employees, research 6 firms as described in subdivision(d)of Section 7513.6,or contract 7 investment managers shall or may at any time sustain by reason 8 of any decision to restrict, reduce, or eliminate investments 9 pursuant to Sections 7513.6, 7513.7, and 7513.75. 7513.75, and 10 7513.76. 11 (b) This section shall become operative upon the repeal of 12 Section 7513.74. 0 99 282 ' ‘2,\`NCT°"'' CITY OF HUNTINGTON BEACH ~' " 9= 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 TONY STRICKLAND MAYOR May 3, 2023 The Honorable Lena Gonzalez California State Senate 33rd District 1021 0 Street, Suite 7720 Sacramento, CA 95814 RE: OPPOSE SB 252 (Gonzalez)—Public retirement systems: fossil fuels: divestment Dear Senator Gonzalez, On behalf of public employees and teachers, as well as state taxpayers, the ACC-OC Board of Directors voted to oppose SB 252. As introduced, this bill would prohibit the California Public Employees' Retirement System (CaIPERS) and the State Teachers' Retirement System (STRS) from making new investments or renewing existing investments of public employee retirement funds in fossil fuel companies. SB 252 would further require the boards to liquidate investments in a fossil fuel company on or before July 1, 2030. Lastly, the bill would require a report to the Legislature and the Governor beginning in 2025 to provide information on fossil fuel companies where the board has liquidated their investments. It is important that CaIPERS has the flexibility needed to exercise their fiduciary duties on behalf of public agencies and public employees in California. By limiting their ability to invest in specific industries to achieve other policy goals, the resulting lower returns for these retirement systems destabilizes those systems and requires a further infusion of tax dollars to make up the difference. Rather than destabilize state retirement systems serving public employees, the State Legislature should work with industries of concern to achieve meaningful changes that benefit all Californians. Should you have any questions about ACC-OC's position on SB 252, please contact Alisa Backstrom, City Treasurer, at 714-536-5299 or at Alisa.Backstrom@surfcity-hb.org. Sincerely, Tony Strickland Mayor City of Huntington Beach CC: Senator Janet Nguyen Senator Dave Min Assembly Member Diane Dixon Assembly Member Tri Ta ACC-OC Board of Directors (via email) Bismarck Obando, Director of Public Affairs (bismarck@calcities.org) League of California Cities (cityletters@calcities.org) Fax 714.536.5233 Page 1 of 1 Office: 714.536.5553 283 Mr. Amory Hanson 8102 Ellis Avenue Apartment 121 Huntington Beach CA 92646 May 2,2023 The Mayor of Huntington Beach 2000 Main Street Huntington Beach CA 92648 My Dear Mister Mayor, I am writing to urge the city council to recommit Item XVIIIC to the intergovernmental relations committee and take a watch position on AB 1035. Our mobile home residents are facing a crisis,and need help in some way. I personally would prefer a local solution,but AB 1035 is a solution that should remain of interest,particularly given that Council Beach's charter limits the solutions available to the Huntington Beach City council. In addition,this law is now unlikely to be considered until 2024, due to some recent developments. By that time,a local solution other then rent stabilization may have developed and if not, it is quite possible preparations will be beginning for an initiative for a charter amendment,making AB 1035's purpose moot for Huntingtonians. I am also concerned that by the Huntington Beach City council voting to oppose AB 1035, it could potentially be seen as a charter violation, since the Huntington Beach Cty Council would be addressing rent stabilization. SUPPLEMENTAL Thank you for considering my thoughts on Item XVIIIC COMMUNICATION Meeting Date: 5/4 093 _ . �. Agenda Item No.: I$ (2,3' � � Mr. Amory Hanson 8102 Ellis Avenue Apartment 121 Huntington Beach CA 92646 Sincerely Yours, Mr.Amory Hanson CC: The Honorable Grace Vandermark CC:The Honorable Rhonda Bolton CC: The Honorable Patrick Burns CC: The Honorable Daniel Kalmick CC: The Honorable Casey McKeon CC: The Honorable Natalie Moser Mr.Amory Hanson 8102 Ellis Avenue Apartment 121 Huntington Beach CA 92646 May 2, 2023 The Mayor of Huntington Beach 2000 Main Street Huntington Beach CA 92648 My Dear Mister Mayor, I am writing to express my support for Item XVIIID • Sincerely Yours, Mr.Amory Hanson CC: The Honorable Grace Vandermark CC:The Honorable Rhonda Bolton CC: The Honorable Patrick Burns CC: The Honorable Daniel Kalmick CC: The Honorable Casey McKeon CC: The Honorable Natalie Moser SUPPLEMENTAL COMMUNICATION 1Aaeting Date: 3/9-bon Agenda Item No.; 1 Fr(23 -3 8l-) Mr.Amory Hanson 8102 Ellis Avenue Apartment 121 Huntington Beach CA 92646 May 2,2023 The Mayor of Huntington Beach 2000 Main Street Huntington Beach CA 92648 My Dear Mister Mayor, I am writing to express my support for Item XVIIIE. Sincerely Yours, Mr. Amory Hanson CC: The Honorable Grace Vandermark CC:The Honorable Rhonda Bolton CC:The Honorable Patrick Burns CC: The Honorable Daniel Kalmick CC: The Honorable Casey McKeon CC: The Honorable Natalie Moser SUPPLEMENTAL COMMUNICATION Meeting Date: 1(9. Agenda Item NO.; t (a5 3') Mr.Amory Hanson 8102 Ellis Avenue Apartment 121 Huntington Beach CA 92646 May 2, 2023 The Mayor of Huntington Beach 2000 Main Street Huntington Beach CA 92648 My Dear Mister Mayor, I am writing to express my support for Item XVIIIF. Sincerely Yours, Mr. Amory Hanson CC: The Honorable Grace Vandermark CC:The Honorable Rhonda Bolton CC: The Honorable Patrick Burns CC: The Honorable Daniel Kalmick CC: The Honorable Casey McKeon CC: The Honorable Natalie Moser SUPPLEMENTAL COMMUNICATION +4AAting Date: c/a aaa'� Agenda Item No.; I$ (d3"3W) Mr.Amory Hanson 8102 Ellis Avenue Apartment 121 Huntington Beach CA 92646 May 2,2023 The Mayor of Huntington Beach 2000 Main Street Huntington Beach CA 92648 My Dear Mister Mayor, I am writing to express my support for Item XVIIIG. Sincerely Yours, Mr.Amory Hanson CC: The Honorable Grace Vandermark CC:The Honorable Rhonda Bolton CC: The Honorable Patrick Burns CC: The Honorable Daniel Kalmick CC: The Honorable Casey McKeon CC: The Honorable Natalie Moser SUPPLEMENTAL COMMUNICATION meeting Des: 44/ 23 Agenda Item No.• Moore, Tania From: Fikes, Cathy Sent: Tuesday, May 2, 2023 9:21 AM To: Agenda Alerts Subject: FW:AB 1035 From: Kathy Crafton<dkcrafton@twc.com> Sent: Monday, May 1, 2023 4:52 PM To: CITY COUNCIL<city.council@surfcity-hb.org> Subject: Fw:AB 1035 Dear Huntington Beach City Council Members: It is urgent that AB 1035 be passed as soon as possible. I have lived in Skandia Mobile Home Park in Huntington Beach, CA for 25 years and had planned to stay here until I die. I am an 85 year old widow of a 26 year Air Force Veteran living on Social Security and 50% of my income goes to my monthly space rent. In addition, my home value has dropped $100,000 because of the exorbitant increase the new owners require of new buyers which leaves me unable to afford to sell. There are many others here in the same position (or worse) and I earnestly request your support in order to SAVE OUR SENIORS. Thank you for your consideration. Kathryn Crafton 16444 Bolsa Chica St. #94 Huntington Beach, CA 92649 SUPPLEMENTAL COMMUNICATION Meeting Date: c"/r? Poa3 Agenda Item No.; i & (g3