BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1103
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS                    
          AB 1103 (Huffman)
          As Amended  July 12, 2011
          Majority vote
           
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          |ASSEMBLY:  |77-0 |(May 19, 2011)  |SENATE: |38-0 |(August 15,    |
          |           |     |                |        |     |2011)          |
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           Original Committee Reference:    H. & C.D.  

           SUMMARY :  Adds 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.  

           The Senate amendments  : 

          1)Delete language adding second units to the types of existing 
            units a local government can count towards meeting housing 
            element obligations under specified conditions.

          2)Specify that in order for a local government to count existing 
            units on foreclosed property toward meeting its share of the 
            regional housing need, at least an equal number of 
            new-construction multifamily rental units affordable to lower 
            income households must have been constructed in the city or 
            county within the same planning period.

          3)Delete language stating the intent of the Legislature to 
            examine whether the default densities in Housing Element Law 
            can be adjusted for some jurisdictions without impeding the 
            attainment of the state housing goal.

          4)Add uncodified language encouraging the Department of Housing 
            and Community Development's Housing Element Working Group to 
            discuss the default densities in Housing Element Law. 

           AS PASSED BY THE ASSEMBLY  , this bill added both units on 
          foreclosed property and second units to the types of existing 
          units a local government can count towards meeting housing 
          element obligations under conditions. 
           








                                                                 AB 1103
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          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.  

          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 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 








                                                                  AB 1103
                                                                  Page  3

          for at least 40 years. The bill also specifies that for the 
          units on foreclosed property to count, at least an equal number 
          of new-construction multifamily rental units affordable to lower 
          income households must have been constructed in the city or 
          county within the same planning period. 


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


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