BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 326|
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THIRD READING
Bill No: SB 326
Author: Strickland (R)
Amended: 4/13/09
Vote: 21
SENATE TRANS. & HOUSING COMMITTEE : 10-0, 4/28/09
AYES: Lowenthal, Huff, Ashburn, DeSaulnier, Harman,
Hollingsworth, Kehoe, Pavley, Simitian, Wolk
NO VOTE RECORDED: Oropeza
SENATE APPROPRIATIONS COMMITTEE : 13-0, 5/26/09
AYES: Kehoe, Cox, Corbett, Denham, DeSaulnier, Hancock,
Leno, Oropeza, Runner, Walters, Wolk, Wyland, Yee
SUBJECT : Housing elements and foreclosures
SOURCE : County of Santa Barbara
DIGEST : This bill requires cities and counties to
include within the housing needs assessment portion of
their housing elements a quantification of their existing
and projected foreclosure rates and an analysis of the
impact of foreclosures on housing needs.
ANALYSIS : The Planning and Zoning Law requires cities
and counties to prepare and adopt a general plan, including
a housing element, to guide the future growth of a
community. Following a staggered statutory schedule,
cities and counties located within the territory of a
metropolitan planning organization (MPO) must revise their
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housing elements every eight years, and cities and counties
in rural non-MPO regions must revise their housing elements
every five years. Before each revision, each community is
assigned its fair share of housing for each income category
through the regional housing needs assessment (RHNA)
process. A housing element must identify and analyze
existing and projected housing needs, identify adequate
sites with appropriate zoning to meet its share of the
RHNA, and ensure that regulatory systems provide
opportunities for, and do not unduly constrain, housing
development. The Department of Housing and Community
Development (HCD) reviews both draft and adopted housing
elements to determine whether or not they are in
substantial compliance with the law.
This bill requires cities and counties to include within
the housing needs assessment portion of their housing
elements a quantification of their existing and projected
foreclosure rates and an analysis of the impact of
foreclosures on housing needs.
Background
Historically, foreclosure rates have averaged about one
percent. While this average masks a fairly large degree of
variation from year to year, it is generally only during
times of economic stress or recession that high rates of
foreclosure cause concern from a public policy perspective.
Over the last 30 years in California, foreclosure rates
have hit or exceeded two percent only during the recession
of the mid 1990s and now. A housing element covers an
eight-year planning period in most cases. It is not clear
how the quantification and analysis of foreclosure rates at
a point in time when the housing element is being developed
will inform decisions regarding medium-term housing
programs and planning.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
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Major Provisions 2009-10 2010-11
2011-12 Fund
HCD review No new costs
to ensure compliance. General
Mandate Unknown, moderate costs to localLocal/
governments. Unlikely to be
reimburseGeneral
SUPPORT : (Verified 5/27/09)
County of Santa Barbara (source)
JJA:do 5/27/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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