BILL ANALYSIS Ó AB 208 Page 1 Date of Hearing: April 13, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 208 (Fuentes) - As Amended: April 7, 2011 Policy Committee: Housing and Community Development Vote: 7-0 Local Government 9-0 Urgency: Yes State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill: 1)Extends by 24 months the expiration date of any tentative map, vesting tentative map or parcel map for which a tentative map or tentative vesting map has been approved that has not expired when the bill becomes effective and that will expire before January 1, 2014. Also extends the expiration date by 24 months for any legislative, administrative or other approval by a state agency relating to a development project included in a map that is extended. 2)Provides that the determination on whether or not a subdivision map expires before January 1, 2014, shall take into account previous discretionary extensions, but not include extensions because of litigation stays and development moratoria. 3)Reduces from five years to three years the time during which add additional requirements cannot be added on a building permit after a final map is recorded for maps extended pursuant to this measure. 4)Specifies that an extension pursuant to this measure does not prohibit levying a fee or imposing a condition that requires the payment of a fee upon the issuance of a building permit, including fees related to the Mitigation Fee Act. FISCAL EFFECT AB 208 Page 2 No state costs. Local costs for extending expiration dates, if any, would not be reimbursable because local agencies have authority to levy fees and charges to cover their costs. COMMENTS 1)Background . The California Subdivision Map Act establishes a statewide regulatory framework for controlling the subdividing of land. As a first step toward development of the land, the developer is required to receive approval by the city or county of a tentative map. The tentative map generally expires after a specified period of time. In the early 1990s, many projects for which maps had been approved were postponed due to the housing collapse and generally weak economic conditions. As a result, many maps were set to expire. In order to avoid the time and expense associated with a new application process, the Legislature enacted SB 428 (Thompson), Chapter 407/1993. The measure provided a 24-month extension to all maps that had not expired as of the bill's effective date. The latest downturn in the housing market has again led to calls for relief. The Legislature passed SB 1185 (Lowenthal), Chapter 1284/2008, which granted a one-time 12-month extension for tentative and parcel maps that had not expired as of the enacting legislation's chaptering date of July 15, 2008. In addition, SB 1185 let local officials grant an additional year, at their discretion. In 2009 the Legislature passed AB 333 (Fuentes), Chapter 18, Statutes of 2009, to allow for an additional two-year extension on maps that had not expired before July 15, 2009. Two years later, the housing industry remains depressed and real estate developers face the prospect of their tentative and parcel maps expiring before they can build. 2)Rationale . The purpose of this bill is to provide an additional extension in recognition of depressed markets and financing challenges facing developers at this time. According to the bill's sponsor, the California Building Industry Association (CBIA), there are an estimated 2,500 tentative tract maps representing approximately 325,750 housing units that would be affected by the provisions of AB 208. The bill spares developers affected by the recession the AB 208 Page 3 added time and expense of obtaining new maps when the economic picture brightens. Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081