BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 931
                                                                  Page  1

          Date of Hearing:   April 27, 2011

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Norma Torres, Chair
                   AB 931 (Dickinson) - As Amended:  April 15, 2011
           
          SUBJECT  :   CEQA exemption: housing projects.

           SUMMARY :   Increases the maximum retail use from 15 percent to 
          25 percent in the definition of "residential" for purposes of an 
          existing California Environmental Quality Act (CEQA) exemption 
          for infill housing projects meeting specified criteria.  

           EXISTING LAW  

          1)Under CEQA requires lead agencies with the principal 
            responsibility for carrying out or approving a proposed 
            project to prepare a negative declaration, mitigated 
            declaration, or environmental impact report (EIR) for this 
            action, unless the project is exempt from CEQA. CEQA includes 
            various statutory exemptions, as well as categorical 
            exemptions in the CEQA Guidelines. (Public Resources Code 
            Section 21000, et seq.)

          2)Exempts from CEQA specified residential housing projects that 
            meet criteria established to ensure the project does not have 
            a significant effect on the environment, including:

             a)   Affordable agricultural housing projects of not more 
               than 45 units within a city, or 20 units within an 
               agricultural zone, on a site not more than five acres in 
               size;

             b)   Affordable urban housing projects of not more than 100 
               units on a site not more than five acres in size; and

             c)   Urban infill housing projects of not more than 100 units 
               on a site not more than four acres in size that is within 
               one-half mile of a major transit stop.

             (Public Resources Code Sections 21159.20-21159.28)

          3)With respect to the CEQA exemption for urban infill housing 
            projects, specifies that the exemption applies only to 
            residential projects and defines "residential" as a use 








                                                                  AB 931
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            consisting of either of the following:

             a)   Residential units only; or

             b)   Residential units and primarily neighborhood-serving 
               goods, services, or retail uses that do not exceed 25 
               percent of the total floor area of the project.

              (Public Resources Code Section 21159.24)

           FISCAL EFFECT  :   Unknown

           

          COMMENTS  :  

          CEQA provides a process for evaluating the environmental effects 
          of applicable projects undertaken or approved by public 
          agencies. If a project is not exempt from CEQA, an initial study 
          is prepared to determine whether the project may have a 
          significant effect on the environment. If the initial study 
          shows that the project would not have a significant effect on 
          the environment, the lead agency must prepare a negative 
          declaration. If the initial study shows that the project may 
          have a significant effect, the lead agency must prepare an EIR.  

           Generally, an EIR must accurately describe the proposed project, 
          identify and analyze each significant environmental impact 
          expected to result from the proposed project, identify 
          mitigation measures to reduce those impacts to the extent 
          feasible, and evaluate a range of reasonable alternatives to the 
          proposed project. Prior to approving any project that has 
          received environmental review, an agency must make certain 
          findings. If mitigation measures are required or incorporated 
          into a project, the agency must adopt a reporting or monitoring 
          program to ensure compliance with those measures.
           
           SB 1925 (Sher), Chapter 1039, Statutes of 2002, exempted from 
          CEQA certain residential projects providing affordable urban or 
          agricultural housing, or located on an infill site within an 
          urbanized area, and meeting specified unit and acreage criteria. 
           The stated intent of the Legislature in enacting those 
          provisions included "creating a streamlined procedure for 
          agricultural employee housing, affordable housing, and urban 
          infill housing projects that do not have an adverse effect on 








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          the environment."

          For purposes of qualifying for the CEQA exemption for infill 
          housing, among other criteria projects must be either entirely 
          residential or include residential units and primarily 
          neighborhood-serving goods, services, or retail uses that do not 
          exceed 15 percent of the total floor area of the project. 

          AB 931 increases the amount of a project that can be devoted to 
          retail uses to 25 percent. According to the author, numerous 
          communities around the state have indicated frustration over the 
          inability of certain infill projects to meet the criteria for 
          exemption from CEQA under existing law. The author argues that 
          in order to encourage more infill development in existing urban 
          areas consistent with the goals of SB 375 (Steinberg), Chapter 
          728, Statutes of 2008, the infill exemption needs to be 
          re-examined.  AB 931 makes a relatively minor change to the 
          existing exemption for infill housing as an initial step in 
          making the exemption more usable in communities that are trying 
          to encourage infill.
           
          Double referred  :  The Assembly Committee on Rules referred AB 
          931 to the Committee on Natural Resources and Housing and 
          Community Development.  This bill is schedule to be heard in the 
          Committee on Natural Resources on April 25, 2011.  
           
           REGISTERED SUPPORT / OPPOSITION  :   
           
           None on file

           Analysis Prepared by  :    Anya Lawler / H. & C.D. / (916) 
          319-2085