BILL NUMBER: AB 1103	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Huffman

                        FEBRUARY 18, 2011

   An act to amend  Section   Sections 65583.1
and  65583.2 of  , and to add Section 65584.11 to,  the
Government Code, relating to land use.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1103, as amended, Huffman. Land use: housing element. 
   The 
    (1)    The  Planning and Zoning Law
requires a city or county to prepare and adopt a comprehensive,
long-term general plan, and requires the general plan to include
specified, mandatory elements, including a housing element. That law
requires the housing element, in turn, to contain, among other items,
an assessment of housing needs and an inventory of resources and
constraints relevant to the meeting of those needs. That law requires
that assessment and inventory, in turn, to include an inventory of
land suitable for residential development.
   That law further requires the inventory of land suitable for
residential development to be used to identify sites that can be
developed for housing, as specified, and that are sufficient to
provide for the jurisdiction's share of the regional housing need for
all income levels. 
   This bill would make a technical, nonsubstantive change to that
law.  
   This bill would provide that a city or county may request its
council of governments to adjust the city's or county's densities for
the city's or county's share of regional housing need for lower
income households based on a demonstration by the city or county that
the density is not consistent with the city's or county's
designation as nonmetropolitan, suburban, or metropolitan.  

   The bill would also specify that a city or county may meet the
appropriate regional housing needs assessment without using land use
controls to set aside the appropriate densities throughout the
jurisdiction.  
   The bill would also authorize a local government to count each
housing unit that meets the requirements of the jurisdiction's
sustainable communities strategy as 11/2 units for purposes of
meeting the local government's regional housing needs assessment.
 
   (2) The Planning and Zoning Law authorizes the Department of
Housing and Community Development to allow a city or county to
substitute the provision of units for up to 25% of the city's or
county's obligation to identify adequate sites for any income
category in its housing element if the city or county includes in its
housing element a program committing the city or county to provide
units in that income category within the city or county that will be
made available through the provision of committed assistance, during
the planning period covered by the element, to very low and
low-income households at affordable housing costs or affordable
rents, as defined. In order for a unit to qualify for inclusion in
the program, it must meet one of several, specified criteria. 

   This bill would add to that list of potential criteria, until
January 1, 2017, the additional criterion of being located on
foreclosed property and converted with committed assistance from the
city or county from nonaffordable to very low and low-income
households to affordable to those households.  
   The bill would also add to that list of potential criteria the
additional criterion of being a 2nd unit on a property that is
converted from nonaffordable to very low and low-income housing.

   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 65583.1 of the  
Government Code   is amended to read: 
   65583.1.  (a)  The Department of Housing and Community
Development, in evaluating a proposed or adopted housing element for
substantial compliance with this article, may allow a city or county
to identify adequate sites, as required pursuant to Section 65583, by
a variety of methods, including, but not limited to, redesignation
of property to a more intense land use category and increasing the
density allowed within one or more categories. The department may
also allow a city or county to identify sites for second units based
on the number of second units developed in the prior housing element
planning period whether or not the units are permitted by right, the
need for these units in the community, the resources or incentives
available for their development, and any other relevant factors, as
determined by the department. Nothing in this section reduces the
responsibility of a city or county to identify, by income category,
the total number of sites for residential development as required by
this article.
   (b) Sites that contain permanent housing units located on a
military base undergoing closure or conversion as a result of action
pursuant to the Defense Authorization Amendments and Base Closure and
Realignment Act (Public Law 100-526), the Defense Base Closure and
Realignment Act of 1990 (Public Law 101-510), or any subsequent act
requiring the closure or conversion of a military base may be
identified as an adequate site if the housing element demonstrates
that the housing units will be available for occupancy by households
within the planning period of the element. No sites containing
housing units scheduled or planned for demolition or conversion to
nonresidential uses shall qualify as an adequate site.
   Any city, city and county, or county using this subdivision shall
address the progress in meeting this section in the reports provided
pursuant to paragraph (1) of subdivision (b) of Section 65400.
   (c) (1) The Department of Housing and Community Development may
allow a city or county to substitute the provision of units for up to
25 percent of the community's obligation to identify adequate sites
for any income category in its housing element pursuant to paragraph
(1) of subdivision (c) of Section 65583 where the community includes
in its housing element a program committing the local government to
provide units in that income category within the city or county that
will be made available through the provision of committed assistance
during the planning period covered by the element to low- and very
low income households at affordable housing costs or affordable
rents, as defined in Sections 50052.5 and 50053 of the Health and
Safety Code, and which meet the requirements of paragraph (2). Except
as otherwise provided in this subdivision, the community may
substitute one dwelling unit for one dwelling unit site in the
applicable income category. The program shall do all of the
following:
   (A) Identify the specific, existing sources of committed
assistance and dedicate a specific portion of the funds from those
sources to the provision of housing pursuant to this subdivision.
   (B) Indicate the number of units that will be provided to both
low- and very low income households and demonstrate that the amount
of dedicated funds is sufficient to develop the units at affordable
housing costs or affordable rents.
   (C) Demonstrate that the units meet the requirements of paragraph
(2).
   (2) Only units that comply with subparagraph (A), (B),  or
(C)   (C), (D), or (e)  qualify for inclusion in
the housing element program described in paragraph (1), as follows:
   (A) Units that are to be substantially rehabilitated with
committed assistance from the city or county and constitute a net
increase in the community's stock of housing affordable to low- and
very low income households. For purposes of this subparagraph, a unit
is not eligible to be "substantially rehabilitated" unless all of
the following requirements are met:
   (i) At the time the unit is identified for substantial
rehabilitation, (I) the local government has determined that the unit
is at imminent risk of loss to the housing stock, (II) the local
government has committed to provide relocation assistance pursuant to
Chapter 16 (commencing with Section 7260) of Division 7 of Title 1
to any occupants temporarily or permanently displaced by the
rehabilitation or code enforcement activity, or the relocation is
otherwise provided prior to displacement either as a condition of
receivership, or provided by the property owner or the local
government pursuant to Article 2.5 (commencing with Section 17975) of
Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code,
or as otherwise provided by local ordinance; provided the assistance
includes not less than the equivalent of four months' rent and moving
expenses and comparable replacement housing consistent with the
moving expenses and comparable replacement housing required pursuant
to Section 7260, (III) the local government requires that any
displaced occupants will have the right to reoccupy the rehabilitated
units, and (IV) the unit has been found by the local government or a
court to be unfit for human habitation due to the existence of at
least four violations of the conditions listed in subdivisions (a) to
(g), inclusive, of Section 17995.3 of the Health and Safety Code.
   (ii) The rehabilitated unit will have long-term affordability
covenants and restrictions that require the unit to be available to,
and occupied by, persons or families of low- or very low income at
affordable housing costs for at least 20 years or the time period
required by any applicable federal or state law or regulation.
   (iii) Prior to initial occupancy after rehabilitation, the local
code enforcement agency shall issue a certificate of occupancy
indicating compliance with all applicable state and local building
code and health and safety code requirements.
   (B) Units that are located in a multifamily rental or ownership
housing complex of three or more units, are converted with committed
assistance from the city or county from nonaffordable to affordable
by acquisition of the unit or the purchase of affordability covenants
and restrictions for the unit, are not acquired by eminent domain,
and constitute a net increase in the community's stock of housing
affordable to low- and very low income households. For purposes of
this subparagraph, a unit is not converted by acquisition or the
purchase of affordability covenants unless all of the following
occur:
   (i) The unit is made available for rent at a cost affordable to
low- or very low income households.
   (ii) At the time the unit is identified for acquisition, the unit
is not available at an affordable housing cost to either of the
following:
   (I) Low-income households, if the unit will be made affordable to
low-income households.
   (II) Very low income households, if the unit will be made
affordable to very low income households.
   (iii) At the time the unit is identified for acquisition the unit
is not occupied by low- or very low income households or if the
acquired unit is occupied, the local government has committed to
provide relocation assistance prior to displacement, if any, pursuant
to Chapter 16 (commencing with Section 7260) of Division 7 of Title
1 to any occupants displaced by the conversion, or the relocation is
otherwise provided prior to displacement; provided the assistance
includes not less than the equivalent of four months' rent and moving
expenses and comparable replacement housing consistent with the
moving expenses and comparable replacement housing required pursuant
to Section 7260.
   (iv) The unit is in decent, safe, and sanitary condition at the
time of occupancy.
   (v) The unit has long-term affordability covenants and
restrictions that require the unit to be affordable to persons of
low- or very low income for not less than 55 years.
   (vi) For units located in multifamily ownership housing complexes
with three or more units, at least an equal number of
new-construction multifamily rental units affordable to lower income
households have been constructed in the city or county within the
same planning period as the number of ownership units to be
converted.
   (C) Units that will be preserved at affordable housing costs to
persons or families of low- or very low incomes with committed
assistance from the city or county by acquisition of the unit or the
purchase of affordability covenants for the unit. For purposes of
this subparagraph, a unit shall not be deemed preserved unless all of
the following occur:
   (i) The unit has long-term affordability covenants and
restrictions that require the unit to be affordable to and reserved
for occupancy by persons of the same or lower income group as the
current occupants for a period of at least 40 years.
   (ii) The unit is within an "assisted housing development," as
defined in paragraph (3) of subdivision (a) of Section 65863.10.
   (iii) The city or county finds, after a public hearing, that the
unit is eligible, and is reasonably expected, to change from housing
affordable to low- and very low income households to any other use
during the next five years due to termination of subsidy contracts,
mortgage prepayment, or expiration of restrictions on use.
   (iv) The unit is in decent, safe, and sanitary condition at the
time of occupancy.
   (v) At the time the unit is identified for preservation it is
available at affordable cost to persons or families of low- or very
low income. 
   (D) Units that are second units on a property and are converted
from nonaffordable to very low and low-income housing.  
   (E) (i) Units that are located on foreclosed property that will be
converted with committed assistance from the city or county from
nonaffordable to very low and low-income households.  
   (ii) This subparagraph shall remain in effect only until January
1, 2017. 
   (3) This subdivision does not apply to any city or county that,
during the current or immediately prior planning period, as defined
by Section 65588, has not met any of its share of the regional need
for affordable housing, as defined in Section 65584, for low- and
very low income households. A city or county shall document for any
housing unit that a building permit has been issued and all
development and permit fees have been paid or the unit is eligible to
be lawfully occupied.
   (4) For purposes of this subdivision, "committed assistance" means
that the city or county enters into a legally enforceable agreement
during the period from the beginning of the projection period until
the end of the second year of the planning period that obligates
sufficient available funds to provide the assistance necessary to
make the identified units affordable and that requires that the units
be made available for occupancy within two years of the execution of
the agreement. "Committed assistance" does not include tenant-based
rental assistance.
   (5) For purposes of this subdivision, "net increase" includes only
housing units provided committed assistance pursuant to subparagraph
(A) or (B) of paragraph (2) in the current planning period, as
defined in Section 65588, that were not provided committed assistance
in the immediately prior planning period.
   (6) For purposes of this subdivision, "the time the unit is
identified" means the earliest time when any city or county agent,
acting on behalf of a public entity, has proposed in writing or has
proposed orally or in writing to the property owner, that the unit be
considered for substantial rehabilitation, acquisition, or
preservation.
   (7) In the third year of the planning period, as defined by
Section 65588, in the report required pursuant to Section 65400, each
city or county that has included in its housing element a program to
provide units pursuant to subparagraph (A), (B), or (C) of paragraph
(2) shall report in writing to the legislative body, and to the
department within 30 days of making its report to the legislative
body, on its progress in providing units pursuant to this
subdivision. The report shall identify the specific units for which
committed assistance has been provided or which have been made
available to low- and very low income households, and it shall
adequately document how each unit complies with this subdivision. If,
by July 1 of the third year of the planning period, the city or
county has not entered into an enforceable agreement of committed
assistance for all units specified in the programs adopted pursuant
to subparagraph (A), (B), or (C) of paragraph (2), the city or county
shall, not later than July 1 of the fourth year of the planning
period, adopt an amended housing element in accordance with Section
65585, identifying additional adequate sites pursuant to paragraph
(1) of subdivision (c) of Section 65583 sufficient to accommodate the
number of units for which committed assistance was not provided. If
a city or county does not amend its housing element to identify
adequate sites to address any shortfall, or fails to complete the
rehabilitation, acquisition, purchase of affordability covenants, or
the preservation of any housing unit within two years after committed
assistance was provided to that unit, it shall be prohibited from
identifying units pursuant to subparagraph (A), (B), or (C) of
paragraph (2) in the housing element that it adopts for the next
planning period, as defined in Section 65588, above the number of
units actually provided or preserved due to committed assistance.
   SECTION 1.  SEC. 2.   Section 65583.2 of
the Government Code is amended to read:
   65583.2.  (a) A city's or county's inventory of land suitable for
residential development pursuant to paragraph (3) of subdivision (a)
of Section 65583 shall be used to identify sites that can be
developed for housing within the planning period and that are
sufficient to provide for the jurisdiction's share of the regional
housing need for all income levels  determined 
pursuant to Section 65584. As used in this section, "land suitable
for residential development" includes all of the following:
   (1) Vacant sites zoned for residential use.
   (2) Vacant sites zoned for nonresidential use that allows
residential development.
   (3) Residentially zoned sites that are capable of being developed
at a higher density.
   (4) Sites zoned for nonresidential use that can be redeveloped
for, and as necessary, rezoned for, residential use.
   (b) The inventory of land shall include all of the following:
   (1) A listing of properties by parcel number or other unique
reference.
   (2) The size of each property listed pursuant to paragraph (1),
and the general plan designation and zoning of each property.
   (3) For nonvacant sites, a description of the existing use of each
property.
   (4) A general description of any environmental constraints to the
development of housing within the jurisdiction, the documentation for
which has been made available to the jurisdiction. This information
need not be identified on a site-specific basis.
   (5) A general description of existing or planned water, sewer, and
other dry utilities supply, including the availability and access to
distribution facilities. This information need not be identified on
a site-specific basis.
   (6) Sites identified as available for housing for above
moderate-income households in areas not served by public sewer
systems. This information need not be identified on a site-specific
basis.
   (7) A map that shows the location of the sites included in the
inventory, such as the land use map from the jurisdiction's general
plan for reference purposes only.
   (c) Based on the information provided in subdivision (b), a city
or county shall determine whether each site in the inventory can
accommodate some portion of its share of the regional housing need by
income level during the planning period, as determined pursuant to
Section 65584. The analysis shall determine whether the inventory can
provide for a variety of types of housing, including multifamily
rental housing, factory-built housing, mobilehomes, housing for
agricultural employees, emergency shelters, and transitional housing.
The city or county shall determine the number of housing units that
can be accommodated on each site as follows:
   (1) If local law or regulations require the development of a site
at a minimum density, the department shall accept the planning agency'
s calculation of the total housing unit capacity on that site based
on the established minimum density. If the city or county does not
adopt a law or regulations requiring the development of a site at a
minimum density, then it shall demonstrate how the number of units
determined for that site pursuant to this subdivision will be
accommodated.
   (2) The number of units calculated pursuant to paragraph (1) shall
be adjusted as necessary, based on the land use controls and site
improvements requirement identified in paragraph (5) of subdivision
(a) of Section 65583.
   (3) For the number of units calculated to accommodate its share of
the regional housing need for lower income households pursuant to
paragraph (2), a city or county shall do either of the following:
   (A) Provide an analysis demonstrating how the adopted densities
accommodate this need. The analysis shall include, but is not limited
to, factors such as market demand, financial feasibility, or
information based on development project experience within a zone or
zones that provide housing for lower income households.
   (B) The following densities shall be deemed appropriate to
accommodate housing for lower income households:
   (i) For incorporated cities within nonmetropolitan counties and
for nonmetropolitan counties that have micropolitan areas: sites
allowing at least 15 units per acre.
   (ii) For unincorporated areas in all nonmetropolitan counties not
included in clause (i): sites allowing at least 10 units per acre.
   (iii) For suburban jurisdictions: sites allowing at least 20 units
per acre.
   (iv) For jurisdictions in metropolitan counties: sites allowing at
least 30 units per acre. 
   (4) A city or county may request the city's or county's council of
governments to adjust the densities specified in subparagraph (B) of
paragraph (3) based on a demonstration by the city or county that
the density is not consistent with the city's or county's designation
as nonmetropolitan, suburban, or metropolitan.  
   (5) For purposes of clauses (i) through (iv), inclusive, of
subparagraph (B) of paragraph (3), a city or county may meet the
appropriate regional housing needs assessment without using land use
controls to set aside the appropriate densities throughout the
jurisdiction. 
   (d) For purposes of this section, metropolitan counties,
nonmetropolitan counties, and nonmetropolitan counties with
micropolitan areas are as determined by the United States Census
Bureau. Nonmetropolitan counties with micropolitan areas include the
following counties: Del Norte, Humboldt, Lake, Mendocino, Nevada,
Tehama, and Tuolumne and such other counties as may be determined by
the United States Census Bureau to be nonmetropolitan counties with
micropolitan areas in the future.
   (e) A jurisdiction is considered suburban if the jurisdiction does
not meet the requirements of clauses (i) and (ii) of subparagraph
(B) of paragraph (3) of subdivision (c) and is located in a
Metropolitan Statistical Area (MSA) of less than 2,000,000 in
population, unless that jurisdiction's population is greater than
100,000, in which case it is considered metropolitan. Counties, not
including the City and County of San Francisco, will be considered
suburban unless they are in a MSA of 2,000,000 or greater in
population in which case they are considered metropolitan.
   (f) A jurisdiction is considered metropolitan if the jurisdiction
does not meet the requirements for "suburban area" above and is
located in a MSA of 2,000,000 or greater in population, unless that
jurisdiction's population is less than 25,000 in which case it is
considered suburban.
   (g) For sites described in paragraph (3) of subdivision (b), the
city or county shall specify the additional development potential for
each site within the planning period and shall provide an
explanation of the methodology used to determine the development
potential. The methodology shall consider factors including the
extent to which existing uses may constitute an impediment to
additional residential development, development trends, market
conditions, and regulatory or other incentives or standards to
encourage additional residential development on these sites.
   (h) The program required by subparagraph (A) of paragraph (1) of
subdivision (c) of Section 65583 shall accommodate 100 percent of the
need for housing for very low and low-income households allocated
pursuant to Section 65584 for which site capacity has not been
identified in the inventory of sites pursuant to paragraph (3) of
subdivision (a) on sites that shall be zoned to permit owner-occupied
and rental multifamily residential use by right during the planning
period. These sites shall be zoned with minimum density and
development standards that permit at least 16 units per site at a
density of at least 16 units per acre in jurisdictions described in
clause (i) of subparagraph (B) of paragraph (3) of subdivision (c)
and at least 20 units per acre in jurisdictions described in clauses
(iii) and (iv) of subparagraph (B) of paragraph (3) of subdivision
(c). At least 50 percent of the very low and low-income housing need
shall be accommodated on sites designated for residential use and for
which nonresidential uses or mixed-uses are not permitted.
   (i) For purposes of this section and Section 65583, the phrase
"use by right" shall mean that the local government's review of the
owner-occupied or multifamily residential use may not require a
conditional use permit, planned unit development permit, or other
discretionary local government review or approval that would
constitute a "project" for purposes of Division 13 (commencing with
Section 21000) of the Public Resources Code. Any subdivision of the
sites shall be subject to all laws, including, but not limited to,
the local government ordinance implementing the Subdivision Map Act.
A local ordinance may provide that "use by right" does not exempt the
use from design review. However, that design review shall not
constitute a "project" for purposes of Division 13 (commencing with
Section 21000) of the Public Resources Code. Use by right for all
rental multifamily residential housing shall be provided in
accordance with subdivision (f) of Section 65589.5.
   SEC. 3.    Section 65584.11 is added to the 
 Government Code   , to read:  
   65584.11.  A local government may count each housing unit that
meets the requirements of the jurisdiction's sustainable communities
strategy as one and one-half units for purposes of meeting the local
government's regional housing needs assessment.