BILL ANALYSIS
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THIRD READING
Bill No: SB 46
Author: Perata (D)
Amended: 6/4/07
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 7-3, 4/17/07
AYES: Lowenthal, Cedillo, Corbett, Dutton, Oropeza,
Simitian, Torlakson
NOES: McClintock, Ashburn, Harman
NO VOTE RECORDED: Kehoe
SENATE APPROPRIATIONS COMMITTEE : 11-4, 5/31/07
AYES: Torlakson, Cedillo, Corbett, Dutton, Florez, Kuehl,
Oropeza, Ridley-Thomas, Simitian, Steinberg, Yee
NOES: Cox, Aanestad, Ashburn, Runner
NO VOTE RECORDED: Battin, Wyland
SUBJECT : Proposition 1Cs Regional Planning, Housing, and
Infill
Incentive Account
SOURCE : Author
DIGEST : This bill provides the statutory framework for
expenditure of the $850 in Proposition 1Cs Regional
Planning, Housing, and Infill Incentive Account.
ANALYSIS : In November 2006, California voters approved
Proposition 1C, the $2.85 billion Housing and Emergency
Shelter Trust Fund Act of 2006. The bond act includes an
CONTINUED
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$850 million Regional Planning, Housing, and Infill
Incentive Account (Account) that is subject to
appropriation and further statutory guidance from the
Legislature. Proposition 1C further provides that the
funds are available for infill incentive grants for capital
outlay related to infill housing and housing-related
development as well as for brownfield cleanup that promotes
infill housing and housing-related development that is
consistent with regional and local plans.
With respect to the capital outlay related to infill
development, Proposition 1C lists the following types of
projects but does not limit expenditures to these purposes:
1. Park creation, development, or rehabilitation to
encourage infill development.
2. Water, sewer, or other public infrastructure costs
associated with infill development.
3. Transportation improvements related to infill
development projects.
4. Traffic mitigation.
This bill provides the statutory framework for expenditure
of the $850 million in the Account. This bill requires the
Department of Housing and Community Development (HCD) to
administer a competitive program to provide capital outlay
grants for infill housing development and for related
infrastructure that is an integral part of the infill
housing development. The program is subject to the
following parameters:
1. The project site must be designated for residential or
mixed-use residential development in a general plan,
redevelopment plan, capital improvement plan, regional
blueprint, or regional transportation plan.
2. Eligible applicants include nonprofit or for profit
developers, a city, county, city and county, a
redevelopment agency, or a combination thereof.
3. "Qualifying infill project" is defined as (a) either a
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residential or mixed use residential project located
with an urbanized area on a site that has been
previously developed, or a vacant lot with 75 percent of
the perimeter adjoins parcels that are developed with
urban uses, or (b) an infrastructure project within a
qualifying infill area which may include residential or
mixed use projects.
4. "Qualifying infill area" is defined as a contiguous area
located within an urbanized area (a) that has been
previously developed, or where at least 75 percent of
the perimeter of the area adjoins parcels that are
developed with urban uses and (b) in which at least one
development application has been approved for a
residential or mixed-use residential project that meets
the definition and criteria in this section for a
qualified infill project.
5. "Urbanized area" is defined as an incorporated city or
census designated place with a population density of at
least 2,500 persons per square mile.
6. "Urban uses" is defined as any residential, commercial,
industrial, public institutional, transit or
transportation passenger facility, or retail use, or any
combination of those uses.
7. The project must be in a city or county that has an
HCD-approved housing element.
8. The project or area served by the grant must include 15
percent of units that will be affordable to renters
earning no more than 60 percent of the area median
income or homeowners earning not more than 120 percent
of area median income. Requires rental units remain
affordable for 55 years and ownership units be sold to
qualified households and subject to resale restrictions
for at least 30 years.
9. The project must be developed at average residential
density on the parcel that is equal to or greater than
the Mullin densities described in housing element law,
namely 30 units per acre for jurisdictions in
metropolitan counties, 20 units per acre in "suburban"
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jurisdictions, 15 units per acre in cities in
non-metropolitan counties, and 10 units per acre in
unincorporated areas in non-metropolitan counties.
10.Eligible expenditures of funds include:
A. Development, including construction and related
planning and design.
B. Project-specific creation, development, or
rehabilitation of parks or open space.
C. Water, sewer, utilities, or other infrastructure
related to the infill development.
D. Roads, parking structures, and transit linkages.
E. Support for alternative transit modes, including
walking, bicycling, and ride sharing.
F. Traffic mitigation.
G. Demolition and site preparation.
H. Sidewalks and streetscapes.
11.HCD shall use include the following priorities in its
rating and ranking of applications:
A. Project readiness which demonstrates all of the
following:
(1) The project can complete environmental
review and secure necessary entitlements.
(2) The project has sufficient funding.
(3) The project has necessary local support.
B. The extent to which the qualifying infill project
exceeds the Mullin density thresholds.
C. The extent to which the qualifying infill project
exceeds the 15 percent affordability requirement.
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D. The project locations consistency with an adopted
regional blueprint plan or other adopted regional
growth plan intended to foster efficient land use.
E. The extent to which the project includes elements
designed to achieve reductions in vehicle trips,
emissions, or miles traveled based on the following
criteria:
(1) Proximity and accessibility to a transit
station or major transit stop.
(2) Accessibility to alternative transit modes
like walking, biking, or ride sharing.
(3) Availability of pedestrian-friendly project
features.
12.HCD shall ensure a reasonable geographic distribution of
funds to the maximum extent feasible.
13.HCD shall establish reasonable deadlines for grantees to
encumber funds. Any funds not encumbered by the
deadline shall revert back to HCD for reallocation.
14.Grant funds must supplement, not supplant, other
available funding.
15.HCD may administer the program for 24 months with
guidelines that are exempt from the Administrative
Procedures Act.
16.HCD shall report annually on the program, including
grants awarded and the status of funded projects.
This bill also provides that upon appropriation, the
California Pollution Control Financing Authority
(Authority) shall award funds to qualifying infill projects
for the purposes of assessment, remedial planning and
reporting, technical assistance, cleanup or remediation of
brownfield sites, or related costs. "Eligible projects"
means the assessment, cleanup, or remediation of a
brownfield site that is proposed for development as a
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"qualifying infill project." Eligible applicants are
for-profit or non-profit developers of a qualifying infill
project, cities, counties, a city and county, and
redevelopment agencies. Priority shall go to projects in
"economically struggling communities," as defined. The
Authority shall also report to the Legislature annually on
the program, including grants awarded and the status of
funded projects.
Related Legislation
AB 29 (Hancock) establishes criteria for the allocation of
funds in Proposition 1C's Account.
AB 842 (Jones) limits grants from a portion of Proposition
1C's Account to jurisdictions within councils of
governments or counties that adopt plans to reduces the
growth increment of vehicle miles traveled by at least 10
percent.
AB 997 (Arambula) provides criteria for allocation of
Proposition 1C's Account, including a set aside through
2012 of $150 million for cities with a population of 30,000
or less.
AB 1053 (Nu?ez) requires the Secretary of the Business,
Transportation and Housing Agency to prepare and submit to
the Legislature a strategic plan, and obtain approval from
the Legislature for the plan, prior to expending any funds
from Proposition 1C that are not continuously appropriated.
AB 1231 (Garcia) establishes criteria for the allocation of
funds in Proposition 1C's Account.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2007-08 2008-09 2009-10 Fund
HCD grant administration $625 $1,250
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$1,140Bond*
Brownfield cleanup unknown costs to unspecifiedBond*
agency to administer brownfield
cleanup program
* Regional Planning, Housing, and Infill Incentive
Account
SUPPORT : (Verified 6/4/07)
Bay Area Council
California Association of Councils of Governments
Lee Homes
Thomas Enterprises
JJA:mw 6/5/07 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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