BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                   SB 910|
          |Office of Senate Floor Analyses   |                         |
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                                 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





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          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  







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            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  







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          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.








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          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  







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          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







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          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







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          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







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          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







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          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







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          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







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          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







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          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







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          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

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