BILL ANALYSIS
AB 2280
Page 1
ASSEMBLY THIRD READING
AB 2280 (Saldana)
As Amended May 22, 2008
Majority vote
HOUSING 5-1 LOCAL GOVERNMENT 4-1
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|Ayes:|Saldana, Hancock, Mullin, |Ayes:|Caballero, De La Torre, |
| |Swanson, Evans | |Saldana, Galgiani |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Sharon Runner |Nays:|Smyth |
| | | | |
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SUMMARY : Makes various changes to the density bonus law.
Specifically, this bill :
1)Requires a developer to request a density bonus or concessions
and incentives no later than the date the application for the
first discretionary approval of the housing development is
submitted, if the housing development requires a discretionary
approval.
2)Prohibits a request for a density bonus or concessions and
incentives from being made after the date the application for
the first discretionary approval for the housing development
has been submitted, unless permitted by local ordinance or
unless no discretionary approvals were required for the
housing development.
3)Requires a request for a density bonus or concessions and
incentives to be reviewed concurrently with any required
discretionary approvals.
4)Clarifies that a developer is entitled to the concessions and
incentives provided for under density bonus law only when
requesting a density bonus, unless at least 49% of the units
in the housing development will be affordable to low- and very
low-income households.
5)Clarifies that all cities and counties must comply with the
provisions of density bonus law.
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6)Extends to five years the length of a time a local government
has to expend its share of funds from the sale of a
moderate-income density bonus unit.
7)Clarifies that the density bonus for senior housing is 20% of
the number of senior units included in the housing
development.
8)States that local governments do not have to approve requests
for concessions or incentives or grant any waivers or
reductions of development standards that would be contrary to
state or federal law.
9)Specifies that a city or county cannot apply development
standards on a density bonus project that would physically
preclude construction of the development at the allowable
density or with the required concessions or incentives.
10)Allows an applicant for a density bonus to submit to the city
or county a proposal for the waiver or reduction of
development standards that will physically preclude
construction at the allowable density or with the required
concessions or incentives.
11)Deletes the requirement that a developer show that the
requested waivers or modifications of development standards
ore necessary to make the housing units economically feasible.
12)Requires that a proposed source of funding be identified for
the very low-income units that are to be built on donated land
that qualified the applicant for a density bonus not later
than the date of approval of the final subdivision map, parcel
map, or residential development application.
13)Authorizes cities and counties to grant higher density
bonuses than provided for in the density bonus law if
permitted by local ordinance.
14)Defines "development standard" to include a site or
construction condition, such as a height limitation, a setback
requirement, a floor area ratio, an onsite open space
requirement, or a parking ratio that applies to a residential
development, the application of which would physically
preclude the construction of the housing development at the
density allowed.
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EXISTING LAW :
1)Requires all cities and counties to adopt an ordinance that
specifies how they will implement state density bonus law.
2)Requires cities and counties to grant a density bonus when an
applicant for a housing development of five or more units
seeks and agrees to construct a project that will contain at
least any one of the following:
a) 10% of the total units for lower income households;
b) 5% of the total units of a housing for very low-income
households;
c) A senior citizen housing development or mobilehome park;
or,
d) 10% of the units in a CID for moderate-income
households.
3)Requires that the applicant agree to, and the city or county
ensure, continued affordability of all low- and very
low-income units that qualified the applicant for the density
bonus for at least 30 years.
4)Requires that the applicant agree to, and the city or county
ensure, that the initial occupant of the moderate-income units
that are directly related to the receipt of the density bonus
in a CID are moderate-income and that the units are offered at
a cost affordable to moderate-income households.
5)Requires the local government to enforce an equity-sharing
agreement upon the resale of any moderate-income units that
qualified a housing development for a density bonus.
6)Provides that the local government shall recapture its
proportionate share of appreciation of any moderate-income
units upon resale, which shall be used within three years for
promotion of affordable homeownership.
7)Requires the city or county to allow an increase in density of
20% over the otherwise maximum allowable residential density
under the applicable zoning ordinance and land use element of
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the general plan for low-income, very low-income, or senior
housing, and by 5% for moderate-income housing in a CID.
8)Requires that the density bonus for low-, very low-, and
moderate-income units increase incrementally according to the
following formula:
a) For each 1% increase above 10% for low-income units, the
density bonus shall increase by 1.5% to a maximum of 35%;
b) For each 1% increase above 5% for very low income units,
the density bonus shall increase by 2.5% to a maximum of
35%; and,
c) For each 1% increase above 10% for moderate-income
units, the density bonus shall increase by 1% to a maximum
of 35%.
9)Requires cities and counties to provide an applicant for a
density bonus concessions and incentives based on the number
of below market-rate units included in the project as follows:
a) One incentive or concession if the project includes at
least 10% of the total units for low-income households, 5%
for very low-income households, or 10% for moderate-income
households in a CID;
b) Two incentives or concessions if the project includes at
least 20% of the total units for low-income households, 10%
for very low-income households, or 20% for moderate-income
households in a CID; and,
c) Three incentives or concessions if the project includes
at least 30% of the total units for low-income households,
15% for very low-income households, or 30% for
moderate-income households in a CID.
10)Specifies that concessions or incentives may include the
following:
a) A reduction in site development standards;
b) A modification of zoning code requirements or
architectural design requirements that exceed the minimum
building standards, including a reduction in setbacks,
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square footage requirements, or parking requirements, that
results in identifiable, financially sufficient, and actual
cost reductions;
c) Approval of mixed-use zoning in conjunction with the
housing project if commercial, office, industrial, or other
land uses will reduce the cost of the housing development,
and if such nonresidential uses are compatible with the
project; or,
d) Other regulatory incentives or concessions proposed by
the developer or the city or county that result in
identifiable cost reductions.
11)Requires the local government to grant the incentive or
concession requested by the developer unless the city or
county makes written findings that:
a) The concession or incentive is not needed to provide the
affordable housing; or,
b) The concession or incentive would have a specific
adverse impact on health and safety, the environment, or an
historical resource.
12)Prohibits a city or county from applying any development
standard that will have the effect of precluding the
construction of housing that qualifies for a density bonus at
the densities or with the concessions or incentives required
by density bonus law.
13)Allows a developer to request a waiver or reduction of
development standards.
14)Specifies that the developer must show that the requested
waiver or modification of development standards is necessary
to make the housing units economically feasible.
15)Defines "development standard" to include site and
construction conditions that apply to a residential
development pursuant to any ordinance, general plan element,
specific plan, charter amendment, or other local condition,
law, policy, resolution, or regulation.
16)Provides a 15% density bonus to the developer of any
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market-rate housing project who donates land to a city or
county that could accommodate housing for very low-income
households equal to at least 10% of the number of units in the
market-rate development. For each 1% increase above 10%, the
density bonus shall increase by 1% up to a maximum combined
density increase of 35%.
17)Provides that to be eligible for the land donation density
bonus, all of the following conditions must be met:
a) The applicant must donate and transfer the land no later
than the approval of the final subdivision map, parcel map
or development application;
b) The land being donated is suitable to accommodate units
affordable to very-low income households in an amount not
less than 10% of the number of residential units of the
proposed development;
c) The transferred land is at least one acre or can
accommodate 40 units, has the appropriate general plan
designation, is appropriately zoned for affordable housing,
can be served by infrastructure, and the land has all the
necessary permits and approvals;
d) The land is subject to deed restrictions ensuring
continued affordability;
e) The land is donated to the local agency or to a housing
developer approved by the local agency; and,
f) The transferred land is either within the boundary of
or, if the local agency agrees, within 1/4 mile of the
proposed development.
18)Provides that, upon the developer's request, the local
government may not require parking standards greater than the
following (the developer may, however request additional
parking incentives or concessions):
a) Zero to one bedrooms: one onsite parking space;
b) Two to three bedrooms: two onsite parking spaces; and,
c) Four or more bedrooms: two and one-half parking spaces.
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19)Clarifies that local governments may still grant density
bonuses greater than what is provided under state law, or
lower for developments that do not meet the requirements of
state law.
FISCAL EFFECT : None
COMMENTS : To help address California's affordable housing
shortage, the Legislature enacted density bonus law to encourage
the development of more affordable units. Under current law, a
city or county must grant a density bonus, concessions and
incentives, prescribed parking requirements, as well as waivers
of development standards upon a developer's request when the
developer includes a certain percentage of affordable housing in
a housing development project. Developers are entitled to
benefits under the density bonus law when they include as few as
one affordable housing unit as part of an otherwise market-rate
project. A housing project with only 5% very low-income housing
is entitled to a 20% density bonus, one concession, unlimited
waivers from development standards, and reduced parking
standards for the entire project. A 100% affordable project is
entitled to only slightly greater benefits: a 35% density
bonus, three concessions, unlimited waivers, and reduced parking
standards for the entire project.
Density bonus law was originally enacted in 1979, but has been
changed numerous times since. Most recently, SB 1818
(Hollingsworth), Chapter 928, Statutes of 2004, made significant
changes to the law, followed by SB 435 (Hollingsworth), Chapter
496, Statutes of 2005, which provided additional clarification
and clean-up. Due to the substantial changes the law has
undergone over the years, it is confusing to interpret and is
the subject of endless debates as to both its intent and its
requirements. Developers and cities frequently clash over what
the law dictates, costing time and money on both sides. In
addition, the law does not clearly state a timeline for
requesting a density bonus and concessions and incentives, so
developers are asking for these things at different stages of
their projects, including in some cases when the project is
already complete, making it impossible for cities to ever get a
full picture of the project they are approving. AB 2280
contains a number of provisions aimed at resolving conflicts and
clarifying requirements under the state's density bonus law,
including requiring requests for density bonuses and concessions
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and incentives to come in at the project application stage.
Analysis Prepared by : Anya Lawler / H. & C.D. / (916)
319-2085
FN: 0004836