BILL ANALYSIS Ó AB 1103 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1103 (Huffman) As Amended July 12, 2011 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |77-0 |(May 19, 2011) |SENATE: |38-0 |(August 15, | | | | | | |2011) | ----------------------------------------------------------------- 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 Page 2 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 FN: 0001733