BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2308
                                                                  Page  1

          Date of Hearing:   May 9, 2012

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Norma Torres, Chair
                    AB 2308 (Torres) - As Amended:  March 29, 2012
          
          SUBJECT  :   Land use: housing element: regional housing need.

           SUMMARY  :   Allows a city or county to reduce its share of the 
          regional housing need by the number of units built between the 
          start of the projection period and the deadline for adoption of 
          the housing element, as specified. Specifically,  this bill  :  

          1)Allows a city or county to reduce its share of the regional 
            housing need by the number of units built between the start of 
            the projection period and the deadline for adoption of the 
            housing element.

          2)Provides that a city or county must include in its housing 
            element a description of the methodology for assigning any 
            housing units used to reduce its share of the regional housing 
            need to an income category based on actual or projected sales 
            price, rent levels, or other mechanisms establishing 
            affordability.

           EXISTING LAW  

          1)Requires every city and county to prepare and adopt a general 
            plan containing seven mandatory elements, including a housing 
            element (Government Code Sections 65300 and 65302).

          2)Requires a jurisdiction's housing element to identify and 
            analyze existing and projected housing needs, identify 
            adequate sites with appropriate zoning to meet the housing 
            needs of all income segments of the community, and ensure that 
            regulatory systems provide opportunities for, and do not 
            unduly constrain, housing development (Government Code Section 
            65583).

          3)Requires cities and counties within a metropolitan planning 
            organization in a region classified as a nonattainment area 
            for one or more pollutants regulated by the federal Clean Air 
            Act to revise their housing elements every eight years based 
            on a staggered statutory schedule, and requires all other 
            local governments to revise their housing elements every five 








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            years based on a staggered statutory schedule (Government Code 
            Section 65588).

          4)Requires, prior to each housing element revision, that each 
            council of governments (COG), in conjunction with the 
            Department of Housing and Community Development (HCD), prepare 
            a regional housing needs assessment (RHNA) and allocate to 
            each jurisdiction in the region its fair share of the housing 
            need for all income categories.  Where a COG does not exist, 
            HCD determines the local share of the region's housing need.  
            (Government Code Sections 65584-65584.09) 




          5)Divides the RHNA into the following income categories:

             a)   Very low-income (50% or lower of area median income), 
               including extremely low-income (30% or lower of area median 
               income);

             b)   Low-income (80% or lower of area median income);

             c)   Moderate-income (between 80% and 120% of area median 
               income); and

             d)   Above moderate-income (exceeding 120% area median 
               income).


          6)Requires housing elements to include an inventory of land 
            suitable for residential development that identifies enough 
            sites that can be developed for housing within the planning 
            period to accommodate the jurisdiction's share of the regional 
            housing need (Government Code Sections 65583 and 65583.2).


          7)Allows a city or county to meet up to 25% of its share of the 
            regional housing need through a program committing the local 
            government to provide financial assistance to make certain 
            existing housing units affordable to low- and very low-income 
            households during the planning period (Government Code Section 
            65583.1).

           FISCAL EFFECT  :   None








                                                                  AB 2308
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           COMMENTS  :   

          Every local government is required to prepare a housing element 
          as part of its general plan.  The housing element process starts 
          when HCD determines the number of new housing units a region is 
          projected to need at all income levels (very low-, lower-, 
          moderate-, and above-moderate income) 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 "RHNA" number (short 
          for regional housing needs assessment).  The COG for the region, 
          or HCD for areas with no COG, then assigns a share of the RHNA 
          number 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 rezone additional land 
          within the first three years of the planning period. With 
          respect to sites rezoned to accommodate the need for very low- 
          and low-income housing, the new zoning must allow multifamily 
          residential use by right and be zoned at minimum densities of 16 
          to 50 units per acre depending on the jurisdiction.

          Existing law allows jurisdictions to meet up to 25% of their 
          zoning obligation by instead adopting a program to make certain 
          existing housing units affordable to low- and very low-income 
          households during the planning period.  Eligible units include 
          units that are to be substantially rehabilitated, units in 
          multifamily rental complexes that are to be converted from 
          unaffordable to 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.  In all cases, the 
          units must have affordability covenants and restrictions that 
          will keep them affordable to low- and very-low income households 
          for 20 to 55 years depending on the type of unit.

          In reviewing housing elements for compliance with the law, HCD 
          has long allowed local governments to subtract from their RHNA 
          share any units constructed after the beginning of the 
          projection period but before the housing element due date. For 








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          most areas of the state, the projection period for RHNA numbers 
          covers a period of time that is longer than the housing element 
          planning period. In other words, in most areas of the state the 
          RHNA number reflects the number of housing units a jurisdiction 
          is projected to need not just during the period of time covered 
          by the housing element but also for some period of time prior to 
          the housing element due date. If some of those needed units 
          already have been constructed by the time the housing element is 
          due, HCD recognizes that there is no longer a need for the 
          jurisdiction to plan for them. AB 2308 places this long-standing 
          and common-sense HCD policy into law.  

           Double referred  :  The bill passed the Committee on Local 
          Government on May 2, 2012, by a vote of 9 to 0.
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          League of California Cities

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Anya Lawler / H. & C.D. / (916) 
          319-2085