BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                 AB 1103
                                                                 Page  1


         ASSEMBLY THIRD READING
         AB 1103 (Huffman)
         As Amended  May 4, 2011
         Majority vote 

          HOUSING             7-0         LOCAL GOVERNMENT    9-0         
          
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         |Ayes:|Torres, Atkins, Bradford, |Ayes:|Smyth, Alejo, Bradford,   |
         |     |Cedillo, Hueso, Jeffries, |     |Campos, Davis, Gordon,    |
         |     |Miller                    |     |Hueso, Knight, Norby      |
         |     |                          |     |                          |
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          SUMMARY  :  Adds second units and units on foreclosed property to 
         the types of existing units a local government can count towards 
         meeting housing element obligations if it provides funding to make 
         the units affordable to low- and very low-income households for at 
         least 40 years.  

          FISCAL EFFECT  :  None

         COMMENTS  :  Every local government is required to prepare a housing 
         element as part of its general plan.  The housing element process 
         starts when the Department of Housing and Community Development 
         (HCD) determines the number of new housing units a region is 
         projected to need at all income levels (very low-, low-, 
         moderate-, and above moderate) over the course of the next housing 
         element planning period to accommodate population growth and 
         overcome existing deficiencies in the housing supply.  This number 
         is often referred to as the regional housing needs assessment 
         (RHNA) number.  The council of government (COG) for the region, or 
         HCD for areas with no COG, then assigns a share of the RHNA to 
         every city and county in the region based on a variety of factors.

         In preparing its housing element, a city or county must show how 
         it plans to accommodate its share of the RHNA.  The housing 
         element must include an inventory of sites already zoned for 
         housing.  If a jurisdiction does not have enough sites within its 
         existing inventory of residentially zoned land to accommodate its 
         entire RHNA, then it must adopt a program to rezone additional 
         land within the first three years of the planning period.  This 
         requirement ensures an adequate supply of land for the 
         construction of new housing.  









                                                                 AB 1103
                                                                 Page  2


         Existing law includes a limited exception to the zoning 
         requirement by allowing jurisdictions to accommodate up to 25% of 
         their RHNA share by making certain existing housing units 
         affordable to low- and very low-income households for 20 to 55 
         years depending on the type of unit.  Eligible units include units 
         that are substantially rehabilitated, units in multifamily 
         complexes that are not currently affordable, and units in an 
         assisted housing development (such as public housing) that are at 
         risk of conversion to market rate or to another use.  To count 
         units within this 25% cap, the jurisdiction must provide 
         "committed assistance," meaning that the city or county must enter 
         into a legally enforceable agreement that obligates sufficient 
         funds to make the identified units affordable for the required 
         time period.

         This bill adds second units and units on foreclosed property to 
         the types of existing units a local government can count towards 
         accommodating up to 25% of its RHNA, if it provides funding to 
         make the units affordable to low- and very low-income households 
         for at least 40 years.  


          Analysis Prepared by  :    Anya Lawler / H. & C.D. / (916) 
         319-2085FN: 0000667