BILL ANALYSIS                                                                                                                                                                                                    �




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  AB 208                      HEARING:  6/8/11
          AUTHOR:  Fuentes                      FISCAL:  Yes
          VERSION:  4/7/11                      TAX LEVY:  No
          CONSULTANT:  Detwiler                 

                        SUBDIVISION APPROVALS (URGENCY)
          

          Automatically extends outstanding local subdivision 
          approvals for two more years.


                           Background and Existing Law  

          Under the Subdivision Map Act, cities and counties approve 
          tentative maps that must be consistent with their general 
          plans, attaching scores of conditions.  Once subdividers 
          comply with those conditions, local officials must issue 
          final maps.  For smaller subdivisions (lot splits) local 
          officials usually use parcel maps, but they can require 
          tentative parcel maps followed by final parcel maps.

          In good economic times, an experienced subdivider can 
          comply with a tentative map's conditions in a few years.  
          Scarce financing, complex settings, and inexperience can 
          drag out the time between a tentative map's approval and 
          the filing of a final map.  If a tentative map expires, the 
          subdivider must start over, complying with any new required 
          conditions.

          Tentative maps can be valid for up to 16 years:
                 The initial life of a tentative map is two years.  
               At the option of the city or county, a map's initial 
               life can be three years.
                 Local officials can grant extensions for up to six 
               years.
                 If the subdivider spends substantial funds and 
               files phased final maps, the remaining tentative map 
               is automatically extended by three years, up to a 
               maximum of ten years.
          These deadlines don't apply during development moratoria 
          (up to five years) or during pending litigation (up to five 
          years).
           




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          In addition, the Legislature has extended the life of 
          unexpired subdivision approvals, without local review or 
          approval.  Unexpired subdivision maps that were valid on:
                 September 13, 1993, gained two more years (SB 428, 
               Thompson, 1993).
                 May 14, 1996, gained one more year (AB 771, Aguiar, 
               1996). 
                 July 15, 2008, gained one more year (SB 1185, 
               Lowenthal, 2008).
                 July 15, 2009, gained two more years (AB 333, 
               Fuentes, 2009).

          When the Legislature granted the one-year extension in 
          2008, it also let local officials grant an additional year, 
          at their discretion (SB 1185, Lowenthal, 2008).  

          Although few cities and counties track their previous 
          subdivision approvals, a building industry source reports 
          that there were 2,491 unexpired subdivision maps involving 
          325,747 residential units at the end of January 2011.  
          Because of the continuing poor housing construction market, 
          some legislators want to extend the life of unexpired 
          tentative maps for two more years.


                                   Proposed Law  

          For any tentative map, vesting tentative map, or parcel map 
          for which a tentative map or tentative vesting map has been 
          approved and the approval has not expired when this urgency 
          bill takes effect and would expire before January 1, 2014, 
          Assembly Bill 208 extends the expiration date by 24 months. 
           This extension is in addition to six other statutory 
          extensions.  When determining if a tentative map or parcel 
          map expires before January 1, 2014, AB 208 allows counting 
          only discretionary extensions approved before the bill's 
          effective date, but not extensions because of litigation or 
          moratoria.

          For any legislative, administrative, or other approval by a 
          state agency relating to a development project in a 
          subdivision affected by AB 208 that has not expired when 
          the bill takes effect, AB 208 extends the expiration date 
          by 24 months.  This extension is in addition to three other 
          statutory extensions.






          AB 208 -- 4/7/11 -- Page 3



          AB 208 reduces, from five years to three years, the period 
          of time after the approval of a tentative map or 
          recordation of a parcel map during which a city or county 
          is prohibited, with exceptions, from imposing specified 
          conditions on a building permit.

          The bill states that the prohibition on conditions being 
          placed on building permits does not prohibit a city, 
          county, or city and county from levying a fee or imposing a 
          condition that requires the payment of a fee upon the 
          issuance of a building permit or after the issuance, 
          including a fee as defined in the Mitigation Fee Act.


                               State Revenue Impact
          
          No estimate.




                                     Comments  

          1.   Purpose of the bill  .  Subdividers will build fewer 
          houses and apartments in 2011 than before the construction 
          industry collapsed.  Until the demand for new housing 
          resumes, subdividers aren't likely to complete the required 
          conditions of their tentative maps and qualify for final 
          maps.  With statutory time limits looming, some builders 
          risk losing their earlier approvals and having to start 
          over again.  Similar to the Legislature's earlier responses 
          during other market slumps, AB 208 preserves subdividers' 
          ability to complete their conditions for two more years, 
          waiting for California's economy to pick up again.

          2.   It's about time  .  Although most are probably younger, 
          some unexpired tentative maps could be decades old.  One of 
          the oldest unexpired subdivisions may be Malibu Valley 
          Farms, approved by Los Angeles County in 1988.  Ronald 
          Reagan was in the White House, Barack Obama was starting 
          Harvard Law School, and Jerry Brown had just returned from 
          India.  Local extensions, a water district moratorium, 
          state extensions, litigation, and phased final maps kept 
          the Malibu Valley Farms' tentative map alive.  In the 
          meantime, local officials have overhauled their general 
          plans' housing elements two or three times.  The 





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          Legislature expanded the contents of local general plans to 
          include military operating areas (SB 1486, Knight, 2002; SB 
          926, Knight, 2004), Native American places (SB 18, Burton, 
          2004), fire hazards (AB 3065, Kehoe, 2004), and flood 
          hazards (AB 162, Wolk, 2007).  Further, the Legislature 
          imposed tougher development standards: a sufficient water 
          supply must be available for larger subdivisions (SB 221, 
          Kuehl, 2001) and local officials must deny subdivisions 
          threatened by flooding in the Sacramento-San Joaquin Valley 
          (SB 5, Machado, 2007).  Public officials now worry about 
          how land use decisions affect greenhouse gas emissions (AB 
          32, Nu�ez, 2006; SB 375, Steinberg, 2008).  Extending the 
          life of the oldest tentative maps may result in putting 
          houses in places that don't meet current land use 
          standards.  Subdivisions approved in the 1980s may not make 
          sense in 2011.

          3.   Consider this alternative  ?  Instead of another 
          mandatory statewide bill, the Committee may wish to 
          consider an alternative that allows local officials to 
          extend older tentative maps if they still make sense.  
          Under this alternative, a subdivider with an unexpired 
          tentative map could ask the city council or county 
          supervisors to grant an additional one- or two-year 
          extension, provided that the subdivision is consistent with 
          the city or county's current general plan.  This 
          alternative gives subdividers more time to complete the 
          remaining conditions on their older tentative maps, while 
          leaving substantial discretion in the hands of locally 
          elected officials.

          4.   State intervention or local discretion  ?  The state 
          government allows local officials to control land use 
          planning and development, except when they affect statewide 
          or regional resources.  In those cases, the voters and the 
          Legislature have created commissions to oversee local 
          decisions: the San Francisco Bay Conservation and 
          Development Commission, the Tahoe Regional Planning Agency, 
          the California Coastal Commission, the Delta Protection 
          Commission, Airport Land Use Commissions, and Local Agency 
          Formation Commissions.  Except for the four subdivision 
          extension bills, the state rarely intervenes to approve 
          projects or extend permits.  The Committee may wish to 
          consider whether the Legislature should directly intervene 
          in subdivision decisions or instead give local officials 
          the discretion to give extensions based on local 





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          circumstances.  Why not leave subdivision extensions up to 
          the city councils and county supervisors?


                                 Assembly Actions  

          Assembly Local Government Committee:  9-0
          Assembly Housing & Community Development Committee:  7-0
          Assembly Appropriations Committee:      15-0
          Assembly Floor:                              73-0


                         Support and Opposition  (6/2/11)

           Support  :  California Building Industry; American Council of 
          Engineering Companies - California Chapter; American 
          Planning Association - California Chapter; Apartment 
          Association of Greater Los Angeles, Santa Barbara, and San 
          Diego; California Apartment Association; California 
          Association of Realtors; California Business Properties 
          Association; California Chamber of Commerce; California 
          Mortgage Association; California State Association of 
          Counties; Engineering Contractors Association; League of 
          California Cities; Orange County Business Council; Regional 
          Council of Rural Counties; Western Electrical Contractors 
          Association; City of Torrance.

           Opposition  :  Unknown.