BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 414
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 414 (Jones)
          As Amended April 19, 2007
          Majority vote 

           LOCAL GOVERNMENT    4-2         HOUSING             5-2         
           
           ----------------------------------------------------------------- 
          |Ayes:|Caballero, De La Torre,   |Ayes:|Saldana, Bass, Hancock,   |
          |     |Lieber, Ma                |     |Mullin,                   |
          |     |                          |     |Swanson                   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Houston, La Malfa         |Nays:|Garcia, Sharon Runner     |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :  Places limits on the ability of cities and counties to  
          include vacant sites zoned for both commercial and residential  
          uses in their housing element's inventory of land suitable for  
          residential development.  Specifically,  this bill  :

          1)Places the following limits on the inclusion of vacant sites  
            zoned for nonresidential uses that also allow residential  
            development but for which the zoning or development standards  
            allow substantially all of the site to be developed without  
            residential uses:

             a)   Requires the housing unit capacity of these types of  
               sites as identified in the housing element to be limited to  
               one-half of their total residential development capacity;

             b)   Requires that any determination that a portion of a  
               locality's share of the regional housing need for  
               lower-income households can be accommodated on these types  
               of sites be based on the proportion of the locality's  
               lower-income housing need that was met on such sites in the  
               prior planning period; and,

             c)   Prevents cities and counties from allocating more than  
               30% of their share of the regional housing need for  
               lower-income households to these types of sites.

          2)States that the limitations do not apply to sites designated  








                                                                  AB 414
                                                                  Page  2


            as mixed-use on which both residential and commercial uses are  
            permitted and on which an exclusively nonresidential use is  
            not permitted.

           EXISTING LAW  :

          1)Requires every city and county to prepare and adopt a general  
            plan containing seven elements:  land use, circulation,  
            housing, conservation, open space, noise, and safety.

          2)Requires a jurisdiction's housing element to identify and  
            analyze existing and projected housing needs, identify  
            adequate sites with appropriate zoning to meet the housing  
            needs 
          of all income segments of the community, and ensure that  
            regulatory systems provide opportunities for, and do not  
            unduly constrain, housing development.

          3)Requires cities and counties to revise their housing elements  
            every five years based on a staggered statutory schedule.

          4)Requires, prior to each housing element revision, each council  
            of government (COG), in conjunction with the Department of  
            Housing and Community Development (HCD), to prepare a regional  
            housing needs assessment (RHNA) and allocates to each  
            jurisdiction in the region its fair share of the housing need  
            for all income categories.

          5)Allows vacant sites zoned for nonresidential use that allow  
            residential development to be included in the housing  
            element's inventory of land suitable for residential  
            development.

          6)Requires cities and counties to determine what portion of  
            their share of the regional housing need by income level can  
            be accommodated on each site included in their inventory of  
            land suitable for residential development.

           FISCAL EFFECT  :  None

          COMMENTS  :  This bill places limits on cities and counties using  
          "double-zoned" sites, vacant sites zoned for nonresidential uses  
          that allow residential development, to meet their obligation to  
          zone enough sites to accommodate their share of the regional  








                                                                  AB 414
                                                                  Page  3


          housing need.  Under the provisions of this bill, the housing  
          unit capacity for a double-zoned site would be limited to  
          one-half of what the site's total housing capacity would be if  
          it were to be developed with exclusively residential uses.  In  
          addition, the inclusion of these sites in the housing element  
          inventory would be based on the jurisdiction's track record in  
          accommodating housing on such sites in the prior planning  
          period.  In total, cities and counties could allocate no more  
          than 30% of their share of the regional housing need for  
          lower-income households to double-zoned sites.

          This bill makes a distinction between mixed-use sites and  
          double-zoned sites and states that the limitations do not apply  
          to mixed-use sites.  These sites are defined as being sites on  
          which both residential and nonresidential uses are allowed and  
          which must be developed with a mix of both uses.

          According to the sponsor, the California Rural Legal Assistance  
          Foundation, unlike mixed use zoning, double zoning creates an  
          either/or situation where the site may be used for residential  
          or nonresidential purposes.  This double zoning forces  
          affordable housing providers to compete with commercial  
          developers for the same piece of land.  The sponsor maintains  
          that more often than not, these sites end up being developed  
          exclusively for commercial purposes.  Thus, sites that were  
          identified in the housing element as being suitable for housing  
          are lost from the available inventory of land and affordable  
          housing developers are left with fewer options for locating  
          projects.

          When reviewing a local agency's housing element, HCD already  
          asks the city or county to justify the housing numbers assigned  
          to double-zoned sites that can potentially be developed with no  
          housing at all.  HCD looks at both the jurisdiction's past  
          performance in accommodating housing on double-zoned sites and  
          whether the housing numbers attributed to such sites are  
          realistic in light of development standards and other factors.   
          Given that HCD already limits the use of double-zoned sites in  
          meeting a jurisdiction's share of the regional housing need, it  
          is unclear whether the problems the sponsor cites are really  
          widespread.  Nonetheless, it may be helpful to codify HCD's  
          existing practice so that cities and counties understand at the  
          outset of the housing element preparation process what  
          justification is required when including double-zoned sites in  








                                                                  AB 414
                                                                 Page  4


          their inventory of sites suitable for housing.

          Opponents of this bill believe that HCD's existing review  
          process for double-zoned sites is sufficient and that there is  
          no widespread abuse of double-zoned sites.  They are concerned  
          that this bill is unnecessarily placing constraints on  
          jurisdictions that have a good track record with double-zoned  
          sites.  The author has been working with the opponents and it  
          appears that they may be close to a solution that will be  
          agreeable to all parties.

          The Legislature may wish to consider whether it is necessary to  
          limit the housing unit capacity on double-zoned sites to  
          one-half of the actual residential capacity.  If a local  
          agency's ability to use these sites is already being constrained  
          by past performance, it seems unnecessary to include such a cap.

           
          Analysis Prepared by  :    Anya Lawler / L. GOV. / (916) 319-3958


                                                                FN: 0000663