BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1537
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1537 (Levine) - As Amended:  April 21, 2014 

          Policy Committee:                              Local  
          GovernmentVote:8 - 0
                        Housing and Community Development                   
            7 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill creates a pilot program for Marin County to utilize a  
          "suburban" default density standard for accommodating its share  
          of affordable housing.  Specifically, this bill:  

           1)Specifies that, for purposes of determining a jurisdiction's  
            "default density" for accommodating affordable housing, if a  
            county that is in the San Francisco-Oakland-Fremont,  
            California Metropolitan Statistical Area (MSA) has a  
            population of less than 400,000, that county is considered  
            suburban. If this county includes an incorporated city that  
            has a population of less than 100,000, this city is also  
            considered suburban.

          2)Provides this classification shall apply to a housing element  
            revision cycle that is in effect from July 1, 2014, to  
            December 31, 2023, inclusive.

          3)Requires all jurisdictions affected by this legislation report  
            to the Assembly Committee on Housing and Community  
            Development, the Senate Committee on Transportation and  
            Housing, and the Department of Housing and Community  
            Development (HCD) regarding its progress in developing low-  
            and very low-income housing.  The report must be provided on  
            or before December 31, 2019, and a second time, on or before  
            December 31, 2023.  The report is comprised of information  
            that is already required as part of all local governments'  
            annual Housing Element Progress Report to HCD. 









                                                                  AB 1537
                                                                  Page  2

           FISCAL EFFECT  

          Minor, non-reimbursable costs to the affected local agencies to  
          produce the required reports and make the necessary  
          administrative adjustments.
           
           COMMENTS  

           1)Purpose  . According to the author, this bill seeks to  
            "designate Marin County as suburban for purposes of its  
            housing element default density in the next housing element  
            cycle. With a population of 250,000, a suburban designation  
            will be a more appropriate reflection of the existing  
            character of the county and will help focus the discussions  
            over affordable housing development to the most relevant  
            issues."  This bill would affect the unincorporated area of  
            Marin County and the cities of Novato and San Rafael for the  
            next housing element cycle.

           2)Marin County  .  Marin County is rural and suburban in nature  
            with an aggregate population of about 252,000. It is included  
            in the San Francisco MSA and is considered metropolitan with a  
            default density of 30 dwelling units per acre.  Unlike cities  
            in suburban counties that are also considered suburban if  
            under 100,000 in population, cities in metropolitan counties  
            are only considered suburban if under 25,000 in population.   
            Marin County and its cities with a population greater than  
            25,000 have the same default density as downtown San  
            Francisco.

            The nine incorporated cities with a population of less than  
            25,000 have a default density of 20 dwelling units per acre,  
            but the unincorporated county areas around these incorporated  
            cities are designated metropolitan with a default density of  
            30 dwelling units per acre.

           3)Support  .  Marin County local officials and affordable housing  
            builders argue that this bill allows the affected suburban and  
            rural communities in Marin the flexibility to zone land  
            suitable for housing in a way that fits within the  
            communities' individual circumstances while still promoting  
            affordable development.

           4)Opposition  .  Affordable housing advocates note that default  
            densities are not mandatory and local governments can either  








                                                                  AB 1537
                                                                  Page  3

            zone the site at the default density or provide HCD with an  
            analysis demonstrating that the site is adequate to support  
            lower-income housing development at its zoned density level.  
            Opponents also point out that default density standards were  
            instituted after a lengthy working group process involving a  
            diverse group of stakeholders.  In opponents' view, the bill  
            is a result of local opposition to affordable housing and will  
            make difficult or impossible to build housing for lower-income  
            families in need.


           Analysis Prepared by  :    Jennifer Swenson / APPR. / (916)  
          319-2081