BILL ANALYSIS Ó AB 1690 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1690 (Gordon) As Amended August 18, 2014 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |76-0 |(May 15, 2014) |SENATE: |30-0 |(August 21, | | | | | | |2014) | ----------------------------------------------------------------- Original Committee Reference: H. & C.D. SUMMARY : Authorizes a city or county, when it fails to identify adequate sites in its housing element and must adopt a rezoning program, to accommodate all of its very low- and low-income housing need on sites designated for mixed uses only if those sites allow 100% residential use and require at least 50% residential floor area of a mixed-use project. The Senate amendments : 1)Authorize a city or county, pursuant to a rezoning program, to accommodate all of its very low- and low-income housing need on sites designated for mixed uses only if those sites allow 100% residential use and require at least 50% residential floor area. 2)Add chaptering amendments to avoid a conflict with AB 1537 (Levine) of the current legislative session. FISCAL EFFECT : None COMMENTS : Purpose of the bill: According to the author, encouraging mixed-use development is critical to California's smart growth goals. As local governments, particularly built-out urban communities, add more zoning designations and overlays, restrictive segregation of use is increasingly rare. Integrating commercial uses into a very low- and low-income project can also provide benefits from a development perspective. In the author's view, a commercial component can also make a project more attractive to a community, like a food desert, starved for services. The most direct benefit of accommodating more very low- and low-income residents in AB 1690 Page 2 mixed-use projects is that they are less likely to be isolated from jobs and services. The author contends that this bill will allow local cities and counties the option of planning for growth in a way that better integrates new low- and very low-income housing into communities. Background: 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 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 known as the regional housing needs assessment (RHNA). The council of governments (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. When a local government's housing element does not identify adequate sites to accommodate the need for groups of all household income levels, it must rezone those sites by a specific deadline during the planning period. This rezoning program has to accommodate 100% of the RHNA need for very low- and low-income households, for which site capacity has not been identified, on sites that are zoned to permit owner occupied and rental multifamily use by-right during the planning period. These zones must allow for, depending on the jurisdiction, between 16 and 20 units per acre. At least 50% of the very low- and low-income housing need must be accommodated on sites designated for residential use and for which nonresidential uses or mixed-uses are not permitted. This bill will impact reforms to housing element law that came out of the Housing Element Working Group (HEWG), which convened in 2003. One of the bills that implemented the reform, AB 2348 (Mullin), Chapter 724, Statutes of 2004, amended housing element law by clarifying the land inventory requirements to provide local governments more certainty about the statutory requirements. Amongst other things, AB 2348 provided clarity about the relationship between the land inventory and adequate AB 1690 Page 3 sites program. AB 2348 clarified that a rezoning program to provide adequate sites is only needed when the inventory does not identify adequate sites already appropriately zoned to accommodate the RHNA. This bill relates to the scenario where a local government has not identified adequate sites to accommodate its RHNA which, in the most recent housing element cycle, is comprised of about 25% of local governments statewide. As noted above, the rezoning program has to accommodate 100% of the RHNA need for very low- and low-income households on sites that are zoned to permit owner occupied and rental multifamily use by-right during the planning period. At least 50% of the very low- and low-income housing need must be accommodated on sites designated for residential use and for which nonresidential uses or mixed-uses are not permitted. Prior to the Senate amendments, this bill provided that this 50% requirement may also be accommodated on mixed-use sites. The Senate amendments address concerns surrounding the likelihood that affordable housing will actually be developed on mixed-use sites. While many cities and counties have adopted mixed-use zones, these sites do not necessarily require mixed uses or the inclusion of housing on a site. As a result, allowing a city or county to count mixed-use sites towards accommodating its affordable housing needs could result in commercial development occupying all or large portions of sites needed for affordable housing. As the rezoning program only applies if a local government fails to identify adequate sites to accommodate its RHNA share, it is especially important to encourage the actual development of affordable housing in these localities. With this in mind, the Senate amendments narrow the bill's original mixed-use zoning provision by only permitting mixed-use sites that allow 100% residential use and require at least 50% residential floor area. Analysis Prepared by : Rebecca Rabovsky / H. & C.D. / (916) 319-2085 FN: 0005150 AB 1690 Page 4