BILL ANALYSIS
AB 2508
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CONCURRENCE IN SENATE AMENDMENTS
AB 2508 (Caballero)
As Amended August 18, 2010
Majority vote
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|ASSEMBLY: |72-0 |(May 20, 2010) |SENATE: |36-0 |(August 23, |
| | | | | |2010) |
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Original Committee Reference: H. & C.D.
SUMMARY : Allows a city of greater than 100,000 in population
in a metropolitan statistical area of less than two million in
population to petition the Department of Housing and Community
Development (HCD) for an exception to its jurisdictional
classification for purposes of the Infill Infrastructure Grant
Program (IIG) if the agency believes that it is unable to meet
the related minimum housing density requirements.
The Senate amendments:
1)Clarify that only a city may petition for an exception to its
jurisdictional classification.
2)Include a sunset date of January 1, 2015.
EXISTING LAW :
1)Establishes IIG, administered by HCD, to provide grants to
fund capital improvement projects that are an integral part
of, or necessary to facilitate the development of, residential
or mixed-use infill development.
2)Requires projects funded under IIG to have average residential
densities of at least 30 units per acre in jurisdictions in
metropolitan counties, 20 units per acres in suburban
jurisdictions, 15 units per acre in incorporated cities within
nonmetropolitan counties and in nonmetropolitan counties that
have micropolitan areas, and 10 units per acres in rural
areas.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version passed by the Senate.
AB 2508
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FISCAL EFFECT : According to the Senate Appropriations
Committee, it is unclear how many cities would qualify for the
exception, but to the extent that more applicants would be
competing for IIG funds, this bill would create cost pressures
in the millions of dollars.
COMMENTS : The IIG program was established in 2007 with funding
from Proposition 1C, the Housing and Emergency Shelter Act of
2006. The program provides grants to fund infrastructure
investments that support residential and mixed-use infill
development projects. The program received just over $790
million from Proposition 1C; all of these funds have been
awarded. The program has been extremely competitive, with
requests for funding outstripping available resources by
approximately four to one. It is unclear when or if additional
funds will be made available for the infill program.
Under IIG, projects must meet certain average residential
densities in order to be eligible for funding. These densities
range from 10 to 30 units per acre depending on the way a
jurisdiction is classified. A jurisdiction's classification is
based on definitions established under Housing Element Law.
For the purposes of Housing Element Law and thus for the
purposes of IIG, the City of Salinas, with a population just
under 150,000, is classified as a metropolitan jurisdiction. As
such, an infill project in Salinas would have to be built at 30
units per acre or more in order to be eligible under the infill
program. The author and sponsor argue that Salinas lacks the
overall infrastructure to develop at a density above 30 units
per acre, and that Salinas should not be designated as a
metropolitan jurisdiction for the purposes of IIG because it is
not a central city or an urban core. Salinas has been unable to
compete under IIG because it has not had any projects that meet
the density requirements.
The city would like the opportunity to petition HCD in any
future IIG funding rounds for a different jurisdictional
classification that would allow it to submit projects for
consideration that are at a lower density than 30 units per
acre. AB 2508 allows a city to submit a petition for an
exemption to its jurisdictional classification along with an
application under IIG. The petition must explain what the
AB 2508
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limitations are for the jurisdiction in meeting the minimum
density required by its current classification. The bill sunsets
on January 1, 2015.
Analysis Prepared by : Anya Lawler / H. & C.D. / (916)
319-2085
FN: 0006326