BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 910| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 910 Author: Dunn (D), et al Amended: 5/24/01 Vote: 21 SENATE HOUSING & COMM. DEV. COMMITTEE : 6-1, 4/2/01 AYES: Dunn, Monteith, Alarcon, Costa, Escutia, Romero NOES: Ackerman SENATE TRANSPORTATION COMMITTEE : 8-3, 5/1/01 AYES: Murray, Costa, Dunn, Figueroa, Monteith, Perata, Romero, Soto NOES: McClintock, Brulte, Speier SENATE APPROPRIATIONS COMMITTEE : 7-4, 5/21/01 AYES: Alpert, Bowen, Burton, Escutia, Karnette, Murray, Perata NOES: Battin, Johannessen, McPherson, Poochigian SUBJECT : General plans: housing elements SOURCE : Author DIGEST : This bill requires that specified transportation funding be reduced to any city or county that fails to have an approved housing element. Senate floor amendments of 5/24/01 require that a council of governments whose members have a combined population of more than 10 million adopt a regional housing needs allocation by a majority vote of the members from each CONTINUED SB 910 Page 2 county on the council's governing board. ANALYSIS : Existing law: 1.Requires each city, county, or city and county to prepare and adopt a general plan for its jurisdiction that contains certain mandatory elements, including a housing element. One part of the housing element is an assessment of housing needs which includes the locality's share of regional housing needs. That share is determined by the appropriate council of governments, subject to revision by the Department of Housing and Community Development. 2.Requires the local entities to submit a draft housing element or draft amendment to its housing element to the Department of Housing and Community Development for a determination of whether the draft complies with state law governing housing elements. 3.Provides that in an action brought by any party to review the conformity of a housing element with applicable state law, a court review shall extend to whether the housing element, or a portion or revision, substantially complies with that law. This bill : 1.Requires that a council of governments whose members have a combined population of more than 10 million (SCAG is the only region that meets this criterion) adopt a regional housing needs allocation by a majority vote of the members from each county on the council's governing board. 2.Requires a court, on a finding that there is not substantial compliance, to award the plaintiff reasonable attorney's fees and costs and to levy a penalty not to exceed specified amounts based on the population of the city or county. 3.Provides that all penalties shall accrue to the Housing SB 910 Page 3 Supply Account, and that no money in that account shall be expended except upon appropriation by the Legislature. Existing law provides that, in any action filed on or after January 1, 1991, challenging the validity of a housing element, there shall be a rebuttable presumption of the validity of the element or amendment if the Department of Housing and Community Development has found that the element or amendment substantially complies with the applicable law. This bill : 1.Provides that, in any action filed on or after January 1, 2002, challenging the validity of a housing element, there shall be a rebuttable presumption of nonvalidity of the element or amendment if the department has found that the element or amendment does not substantially comply. 2.Requires the State Controller to reduce by specified percentages the monthly allocation of funds disbursed under various fuel tax laws to any city, county, or city and county whose third or subsequent revision of its housing element is not in substantial compliance with state law or that during the previous housing element cycle did not adopt a housing element determined by the department to be in substantial compliance with state law, and to hold the money in an escrow account until the department determines there is substantial compliance. 3.Requires the department to report to the State Controller monthly a list of noncompliant jurisdictions. Comments Purpose of the bill . Under current law, the cities and counties are required on a specified basis to prepare and submit to the Department of Housing and Community Development for approval a so-called "housing element," which is a part of the entity's general plan and consists of "an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development SB 910 Page 4 of housing." The housing element is required to "identify adequate sites for housing, including rental housing, factory-built housing, and mobilehomes, and shall make adequate provision for the existing and projected needs of all economic segments of the community." According to the Department of Housing and Community Development, over 60 percent of local entities in the state are in full compliance with the law and have submitted the necessary documents. Nearly 30 percent of cities and counties, however, have not complied with this requirement, and supporters of this measure contend that "these local governments effectively raise the price of housing for working families even higher and force surrounding jurisdictions to take on a larger housing burden." Local jurisdictions may not be in compliance with the housing element requirement for a variety of reasons, including such factors as disinterest in growing or providing affordable housing or ongoing and thorny issues related to providing additional housing in already high-growth areas. The author argues that while state law mandates that all local jurisdictions submit a housing element, there are presently no really effective sanctions for non-compliance or the submittal of inadequate documents. The supporters further assert that the courts have limited ability to bring about compliance, and the denial of government housing funding is essentially meaningless for areas that may not be interested in stimulating the construction of additional housing units within their jurisdictions. Arguments in opposition . The League of California Cities and the California State Association of Counties argue that local governments are not the only or even main reason that the state's housing needs are not being met. They believe that this bill casts local officials as uncaring about their communities and is overly punitive. They raise the following specific points: 1.The rebuttable presumption of nonvalidity "elevates the opinion of an HCD staff member above the opinion of a judge" and subjects local governments to over-zealous interpretation of the law by the state. SB 910 Page 5 2.With respect to attorney's fees, the question of whether a significant benefit derives from the court challenge should be left for a judge to decide. 3.The ability of the court to halt development is sufficient remedy for non-compliance with housing element law and monetary penalties are therefore inappropriate. 4.Withholding state road repair funds from non-compliant jurisdictions will reward those who "collaborate" and punish those who "question the assumptions [of HCD] or mention local realities." As opposed to incentives, withholding funds will further jeopardize state and local government relations. 5.Housing element compliance is a convenient target for the lack of progress on larger housing supply issues, such as local government tax reform, state financing for affordable housing, and construction defect litigation. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No Fiscal Impact (in thousands) Major Provisions 2001-02 2002-03 2003-04 Fund Penalty assessment ----------unknown revenue increase---- Special Controller admin costs --unknown, probably not significant---- General Fuel funds reduction -------------see comments below--------- Local Staff comments: SB 910 will result in a reduction in the allocation of fuel tax revenue offset by increased allocation in future years when affected local governments are in compliance with state housing element laws. After a six month "grace period", the amount of the reduction will be 20%, increasing to a 40% reduction after one year and a 60% reduction if the jurisdiction has not been found to be SB 910 Page 6 in compliance within two years. SUPPORT : (Verified 5/23/01) Business Organizations Job-Center Housing Coalition California Apartment Association California Building Industry Association California Chamber of Commerce California Association of Realtors Apartment Assn of California Southern Cities Berkeley Property Owners Association Santa Barbara Rental Property Association Minority Apartment Owners Association California Housing Council Orange County Business Council Orange County Apartment Association California Business Properties Association Silicon Valley Manufacturing Group San Diego Regional Chamber of Commerce Vernon Property Association Tri-County Apartment Assn (San Mateo, Santa Clara, and Santa Cruz) Santa Cruz Area Chamber of Commerce Labor California Labor Federation, AFL-CIO California State Assn of Electrical Workers California State Pipe Trades Council Western States Council of Sheet Metal Workers State Building and Construction Trades Council of California California-Nevada Conference of Operating Engineers Seniors AARP Congress of California Seniors California Association of Homes and Services for the Aging Older Women?s League CA Legislative Conference of Older Americans Sacramento Gray Panthers Senior Housing Action Collaborative, San Francisco Santa Monica Commission on Older Americans Planning for Elders in Central City, San Francisco SB 910 Page 7 Religious Organizations California Church Impact Jericho: A Voice for Justice California Catholic Conference of Bishops Lutheran Office of Public Policy?California Friends Committee on Legislation of California Council of Churches of Santa Clara County Unitarian Universalist Church of Fullerton Unitarian Universalist Fellowship of Laguna Beach Sisters of St Josephs of Carondelet, Los Angeles St. Peter's Housing Committee, San Francisco Sisters of the Holy Name, Fremont Civil Rights/Disabled/Fair Housing/Children's Groups MALDEF Protection and Advocacy Mental Health Advocacy Services, Los Angeles Transitional Living and Support, Sacramento HIV Advocacy Coalition, Southern California Branch Children?s Advocacy Institute Children Now Fair Housing Council of San Diego Westside Fair Housing Council, Los Angeles Sentinel Fair Housing, Oakland Fair Housing Foundation of Long Beach Independent Living Resources, Concord Homeless/Shelter Organizations Shelter Partnership, Inc., Los Angeles Loaves and Fishes, Sacramento Harbor Interfaith Shelter, San Pedro Friends of the Homeless, Santa Rosa Shelter Network of San Mateo County State and Regional Housing Organizations Western Center on Law and Poverty California Rural Legal Assistance Foundation Housing Policy Network of Southern California Southern CA Assn of Non-Profit Housing National Farmworker Service Center Mercy Charities Housing Housing California Nonprofit Housing Association of N CA SB 910 Page 8 Enterprise Foundation, Los Angeles Low Income Housing Fund California Reinvestment Committee California Network of NeighborWorks Programs Local Government City and County of San Francisco City of Sacramento City of Oakland City of Petaluma City of American Canyon Environmental Organizations Sierra Club California League of Conservation Voters Planning and Conservation League Los Angeles Area Housing Organizations Venice Community Housing West Hollywood Community Housing Corporation Coalition for Economic Survival, Los Angeles Preservation Properties, Santa Monica Inglewood Neighborhood Housing Services Skid Row Housing Trust, Los Angeles A Community of Friends, Los Angeles Esperanza Community Housing Corp, Los Angeles Los Angeles Housing Partnership Southern California Housing Development Corporation Project New Hope, Los Angeles Century Housing Corporation Hollywood Community Housing Corporation San Diego Area Housing Organizations Neighborhood House Association, San Diego City Heights CDC, San Diego MAAC Project, San Diego Orange County Housing Organizations Kennedy Commission, Lake Forest Related Companies of California WNC Associates, Costa Mesa Civic Center Barrio Housing Corp, Santa Ana Orange Co. Community Housing Corp, Santa Ana Clearinghouse CDFI, Lake Forest SB 910 Page 9 Orange Cares, Orange Partnership for Responsible Public Policy, Costa Mesa Interfaith Coalition for Social Justice St Joseph?s Health System, Santa Ana Bay Area Housing Organizations Mid-Peninsula Housing Coalition, Redwood City Housing Authority of the County of Santa Clara Eden Housing, Hayward La Raza Centro Legal, Inc., San Francisco Asian Law Alliance, San Jose East Bay Asian Local Development Corp, Oakland Rubicon Programs, Inc., Richmond Gubb and Barshay, LLP, San Francisco Tenderloin Housing Clinic, San Francisco General Assistance Advocacy Project, San Francisco Council of Community Housing Orgs, San Francisco Shelter, Inc., Concord West Contra Costa Conservation League, El Cerrito Santa Cruz Community Counseling Center Barbara Sanders and Associates, Oakland Goldfarb and Lipman, Attorneys, Oakland JRT and Associates, Sausalito Law Center for Families, Oakland Ecumenical Association for Housing, San Rafael Homeward Bound, San Rafael Daniel P. Lopez & Associates, San Leandro First Community Housing Inc., San Jose Santa Clara County Housing Action Coalition East Bay Community Law Center, Oakland Alameda County Housing Authority Rural/Balance of State Housing Organizations Rural Communities HDC, Ukiah Rural California Housing Corporation, Sacramento California Institute for Rural Studies, Davis Sacramento Mutual Housing Association Sacramento Housing and Redevelopment Agency Sacramento Neighborhood Housing Services Sacramento Housing Alliance Renee Franken Associates, Sacramento USA Properties, Sacramento New Faze Development, Inc., Sacramento Legal Aid of Santa Barbara County SB 910 Page 10 Center for Community Advocacy, Salinas Chicano Consortium, Sacramento CHISPA, Salinas Napa Valley Community Housing South County Housing, Gilroy People?s Self-Help Housing Corp, San Luis Obispo Chico Housing Improvement Program Community Resource Associates, Clayton The Agora Group, Goleta Burbank HDC, Santa Rosa Nevada County Housing Development, Nevada City Pajaro Valley Housing Corporation, Watsonville Coachella Valley Housing Coalition, Indio Great Northern Corporation, Weed Scotts Valley Band of Pomo Indians Self-Help Enterprises, Visalia Community Housing Opportunities Corp., Davis Cabrillo Economic Development Corp, Saticoy OPPOSITION : (Verified 5/23/01) California Association of Councils of Governments California Chapter of the American Planning Association City of Adelanto City of Alameda City of Antioch City of Arcata City of Arroyo Grande City of Atascadero City of Atwater City of Banning City of Barstow City of Bell City of Bell Gardens City of Belmont City of Benicia City of Beverly Hills City of Big Bear Lake City of Brawley City of Buena Park City of Burbank City of Burlingame City of Campbell City of Carpinteria SB 910 Page 11 City of Cerritos City of Chico City of Chino City of Chowchilla City of Clayton City of Colfax City of Concord City of Corona City of Coronado City of Costa Mesa City of Culver City City of Delano City of Desert Hot Springs City of Fairfield City of Firebaugh City of Fontana City of Fortuna City of Foster City City of Fountain Valley City of Fremont City of Garden Grove City of Gilroy City of Glendale City of Glendora City of Gonzales City of Gustine City of Hayward City of Hemet City of Hermosa Beach City of Highland City of Hollister City of Huntington Park City of Indio City of Inglewood City of La Canada Flintridge City of La Palma City of Laguna Beach City of Laguna Hills City of Lake Forest City of Lakewood City of Lancaster City of Larkspur City of Lawndale City of Lemon Grove SB 910 Page 12 City of Lincoln City of Livingston City of Loma Linda City of Long Beach City of Los Alamitos City of Los Altos City of Los Angeles City of Los Banos City of Malibu City of Manteca City of Marina City of Menlo Park City of Merced City of Mill Valley City of Millbrae City of Modesto City of Modesto City of Monrovia City of Montclair City of Monterey City of Moreno Valley City of Morgan Hill City of Mountain View City of National City City of Norwalk City of Novato City of Ojai City of Ontario City of Orange City of Orland City of Palos Verdes Estates City of Paramount City of Parlier City of Port Hueneme City of Rancho Santa Margarita City of Red Bluff City of Redondo Beach City of Riverbank City of Riverside City of Rohnert Park City of Rolling Hills Estates City of Roseville City of San Bernardino City of San Carlos SB 910 Page 13 City of San Clemente City of San Dimas City of San Gabriel City of San Leandro City of San Luis Obispo City of San Marcos City of San Marcos City of San Marino City of San Mateo City of San Pablo City of Sand City City of Santa Ana City of Santa Barbara City of Santa Clara City of Santa Cruz City of Santa Fe City of Santa Maria City of Saratoga City of Seaside City of Sebastopol City of South Gate City of South San Francisco City of St. Helena City of Susanville City of Taft City of Temecula City of Thousand Oaks City of Torrance City of Ukiah City of Vacaville City of Victorville City of Vista City of Wasco City of Waterford City of Westlake Village City of Westminster City of Woodland City of Yucaipa County of Riverside County of San Bernardino Inland Empire Economic Partnership League of California Cities League of California Cities, Los Angeles County League of California Cities, Orange County Division SB 910 Page 14 San Joaquin Council of Governments Town of Danville Town of Mammoth Lake Town of Moraga Town of Paradise Town of Windsor NC:sl 5/25/01 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****