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 ----------------------------------------------------------------- |Ayes:|Torres, Atkins, Bradford, |Ayes:|Smyth, Alejo, Bradford, | | |Cedillo, Hueso, Jeffries, | |Campos, Davis, Gordon, | | |Miller | |Hueso, Knight, Norby | | | | | | ----------------------------------------------------------------- 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