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