BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1690
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1690 (Gordon)
          As Amended  August 18, 2014
          Majority vote
           
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          |ASSEMBLY:  |76-0 |(May 15, 2014)  |SENATE: |30-0 |(August 21,    |
          |           |     |                |        |     |2014)          |
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           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  








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          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  








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          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 


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