BILL ANALYSIS Ó AB 2561 Page 1 Date of Hearing: April 22, 2014 ASSEMBLY COMMITTEE ON JUDICIARY Bob Wieckowski, Chair AB 2561 (Bradford) - As Introduced: February 21, 2014 As Proposed to be Amended SUBJECT : PERSONAL AGRICULTURE: RESTRICTIONS IN RESIDENTIAL PROPERTY KEY ISSUE : SHOULD RESIDENTS OF COMMON INTEREST DEVELOPMENTS AND TENANTS IN CERTAIN TYPES OF RENTAL PROPERTY BE ABLE TO GROW FRESH FRUITS AND VEGETABLES FOR PERSONAL USE IN THEIR PRIVATE OUTDOOR SPACE, SUBJECT TO REASONABLE RESTRICTIONS BY THEIR HOMEOWNER'S ASSOCIATION OR LANDLORD, RESPECTIVELY? SYNOPSIS This bill seeks to enact the Neighborhood Food Act, legislation intended to remove obstacles to the practice of growing edible fruits and vegetables in urban and suburban residential neighborhoods for personal and community use or consumption. This bill is sponsored by the Sustainable Economies Law Center (SELC), a nonprofit group based in Oakland whose mission is to encourage communities to develop their own sustainable sources of food, housing, energy, and jobs. Specifically, the bill seeks to ensure that residents of CID's and tenants in certain kinds of rental properties may participate in "personal agriculture" activities-growing fruits and vegetable plants at home for personal use-subject to reasonable restrictions but not completely prohibited by their homeowner's association (HOA) or landlord. Proposed amendments eliminate authority for entrepreneurial agriculture in CIDs and in rental property altogether. With respect to rental property only, the proposed amendments limit personal agriculture to one-and two-unit properties, and require a tenant's plants to be confined to an outdoor area for the tenant's exclusive use, if any. With respect to CIDs only, the proposed amendments further clarify the use of reasonable restrictions upon personal agriculture by the HOA. Although the author and opponent continue to dialogue on the bill, the proposed amendments reflected in this analysis have apparently not yet caused any of the opponents to remove their opposition. AB 2561 Page 2 Due to time constraints, amendments accepted by the author will be taken in the Local Government Committee. SUMMARY : Seeks to ensure the ability of residents in common interest developments and tenants in one- or two-unit rental property to grow edible fruits and vegetables at home for personal use, subject to reasonable restrictions. Specifically, this bill : 1)Makes Legislative findings about the environmental, nutritional, economic and public health-related benefits associated with increased participation in growing fresh plant-based foods on the land where one resides. 2)Defines "personal agriculture" to mean a use of land where an individual cultivates edible plant crops for personal use or donation, excluding marijuana or any other unlawful plants. With respect to residential rental property: 3)Requires a landlord to permit a tenant to participate in personal agriculture in portable containers in the tenant's private area as long as the following conditions are met: a) The tenant regularly removes any dead plant material and weeds, unless the landlord and tenant have a preexisting or separate agreement regarding garden maintenance where the tenant is not responsible for such removal. b) The placement of the containers does not interfere with any tenant's parking spot. c) The placement of the containers does not create a trip-and-fall hazard, block doorways, block access to utility panels or cause water or other damage to the property. 4)Preserves the right of a landlord to periodically inspect any area where the tenant is engaging in personal agriculture, and to enter into a written agreement for the payment of excess water and trash bills, among other things. 5)Limits application of these provisions only to residential rental property consisting of a single building with one or two dwelling units. AB 2561 Page 3 With respect to residential property within a common interest development (CID): 6)Provides that any provision of a governing document of a CID that effectively prohibits or unreasonably restricts the homeowner from using his or her front or back yard for personal agriculture, or from the off-site sale or donation of produce grown on the property, shall be void and unenforceable. 7)Permits CID's to impose "reasonable restrictions" on the use of a homeowner's yard for personal agriculture, defined as restrictions that do not significantly increase the cost of engaging in personal agriculture or significantly decrease its efficiency. 8)Limits application of these provisions only to yards that are designated for the exclusive use of the homeowner. With respect to the restriction of personal agriculture by cities and counties: 9)Provides that cities and counties shall not prohibit personal agriculture, community agriculture, or entrepreneurial agriculture, as defined, within their jurisdiction, but that they may, by ordinance, adopt certain restrictions on any of these agricultural activities in a residential or commercial zone. 10)Specifies a number of types of restrictions that may be adopted by ordinance, including reasonable restrictions relating to nuisance prevention, public safety hazards, applicable building standards, and retail visitors to the property. EXISTING LAW : 1)Regulates the terms and conditions of residential tenancies, and generally requires landlords to keep the rental units in a condition fit for occupancy. (Civil Code Section 1940 et seq.) 2)Creates an implied covenant of quiet enjoyment in every lease, requiring that the tenant shall not be disturbed in his or her AB 2561 Page 4 possession by the landlord. (Civil Code Section 1927; Pierce v. Nash (1954) 126 Cal.App.2d 606, 612.) 3)Regulates the purposes for which a renter's security deposit may be used, including, but not limited to, compensating the landlord for default on payment of rent, cleaning or repairing rented property, exclusive of normal wear and tear, or remedying future obligations under the rental agreement, as specified. (Code of Civil Procedure Section 1950.5 (a)-(e).) 4)Permits the governing board of a homeowners' association to adopt operating rules that apply generally to the management and operation of the common interest development or the conduct of the business and affairs of the association, provided that the rule is within the authority of the board to make, does not conflict with the association's articles, bylaws, or governing law, and is reasonable. (Civil Code Sections 4340 and 4350.) 5)Provides specified limits to the authority of an association or the governing documents to regulate the use of a member's separate interest, including provisions relating to the display of signs, the installation of solar energy systems, racial restrictions, and modification to property to accommodate a disability. (Civil Code Section 4700 et seq.) 6)Requires the legislative body of each county and city to adopt a comprehensive, long-term general plan, prepared by the local planning agency, for the physical development of the county or city, and of any land outside its boundaries which in the planning agency's judgment bears relation to its planning. (Government Code Section 65300.) 7)Requires the general plan to include a number of elements, including a land use element that designates the proposed general distribution and general location and extent of the uses of the land for housing, business, industry, open space, including agriculture, natural resources, recreation, and enjoyment of scenic beauty, education, public buildings and grounds, solid and liquid waste disposal facilities, and other categories of public and private uses of land. (Government Code Section 65302(a).) FISCAL EFFECT : As currently in print this bill is keyed fiscal. AB 2561 Page 5 COMMENTS : This bill seeks to enact the Neighborhood Food Act, legislation intended to remove obstacles to the practice of growing edible fruits and vegetables in urban and suburban residential neighborhoods for personal and community use or consumption. Specifically, the bill seeks to ensure that residents of CID's and tenants in certain kinds of rental properties may participate in "personal agriculture" activities-growing fruits and vegetable plants at home for personal use-subject to reasonable restrictions but not completely prohibited by their homeowner's association (HOA) or landlord. Stated Need for the Bill. This bill is sponsored by the Sustainable Economies Law Center (SELC), a nonprofit group based in Oakland whose mission is to support grassroots economic empowerment and encourage communities to develop their own sustainable sources of food, housing, energy, and jobs. According to the author: Most city and county zoning laws contain numerous detailed restrictions related to landscaping in residential and other city zones in addition to restrictive ordinances regarding "home occupations." Additionally, many vacant lots in residential zones are not zoned as agricultural and so using them as community gardens technically violates city codes in many cities. This creates unnecessary and illogical barriers to converting vacant land into community gardens or small commercial fruit and vegetable gardens. Finally, landlord-tenant leases and HOA contracts often don't allow the cultivation of food on residential property, whether for personal or commercial use. The common home occupation restrictions and lack of proper zoning for agriculture or gardens is especially problematic for gardeners who wish to sell produce grown in residential zones, even just a few baskets of produce to friends and neighbors, or even when taking all produce offsite to sell. These zoning laws frequently render many vegetable, fruit and herb gardens illegal and are sometimes enforced against community gardens and other micro-enterprise gardens in residential zones. While piecemeal efforts have moved extremely incrementally at local levels to change these laws, this bill seeks to remove these legal barriers and make growing food AB 2561 Page 6 accessible to all Californians with one piece of common sense legislation. Empowering individuals to grow food at home, on previously vacant lots and in community gardens on a small scale, will lead to positive economic, health, and environmental outcomes throughout the state. Proposed amendments eliminate entrepreneurial agriculture, limit personal agriculture only to one-and two-unit properties, and require a tenant's plants to be confined to an outdoor area for the tenant's exclusive use, if any. As currently in print, this bill requires landlords to permit tenants in any residential rental property to engage in personal and entrepreneurial agriculture in any area of the property that is for the exclusive use of the tenant, as long as certain conditions are met. By definition, property for the exclusive use of the tenant includes the indoor dwelling area (bedrooms, kitchens, bathrooms, etc.), meaning that the bill would require personal agriculture to be permitted indoors in single-family homes and apartments in multiunit buildings as well. In some properties, there may be a private balcony, patio, or outside yard area that is for the exclusive use of the tenant, but that would typically be found in single-family homes and not multiunit apartment buildings. As currently in print, in addition to personal agriculture, the bill also requires landlords to permit entrepreneurial agriculture, defined as "cultivation of edible plant crops for the purpose of sale or donation." Apartment associations and property owners that oppose the bill contend that the bill unfairly grants tenants the new right to grow as much food on the rental property as they desire, including cultivation on a commercial scale, and that as a result, these properties will suffer physical damage, decrease in value, and landlords would lose control over appearance of the property, among other things. Although the bill permits personal agriculture only in portable containers (i.e. potted plants) and provides that placement of the containers may not cause water or other damage to the property, opponents contend that provision is vague and that potted plants are still likely to damage the property over time because they need soil and water. In order to try to address the concerns of apartment associations who oppose the bill, the author proposes to amend the bill to significantly narrow the scope of agriculture allowed in residential rental properties. First, the proposed AB 2561 Page 7 amendments eliminate entrepreneurial agriculture and clarify that personal agriculture is permitted only for the tenant's personal use or for donation to others. Second, the proposed amendments limit personal agriculture only to one- and two-unit properties, meaning that it will be permitted in single-family homes and duplexes, but effectively excluded from large multi-unit apartment buildings. Third, the proposed amendments limit personal agriculture to outdoor areas for the tenant's exclusive use-thus alleviating earlier concerns expressed by opponents about the scope of damage to the inside of the rental property posed by potted plants not otherwise visible without a key to the premises. In short, the bill as proposed to be amended allows only tenants in one- and two-unit rental properties to engage in personal, not entrepreneurial, agriculture in their exclusive use outdoor area and subject to certain restrictions by the landlord. Despite the proposed amendments, the apartment associations continue to officially oppose the bill at the time of this analysis, although both sides expressed intent to continue to discuss areas of compromise. Background on common interest developments . CIDs are multi-unit communities characterized by the following: (1) separate ownership of individual residential units coupled with an undivided interest in common property; (2) covenants, conditions, and restrictions (CC&Rs) that limit the use of both separate interests and common property; and (3) management of common property and enforcement of restrictions by a homeowner's association (HOA). Under the Davis-Stirling Act, which sets forth general rules governing common interest developments, each individual CID is subject to rules and regulations set forth by the HOA's "governing documents." These governing documents include the recorded declaration and any other documents, such as bylaws, operating rules of the association, or articles of incorporation that govern the operation of the association. CIDs are governed by volunteer boards of directors who are elected by the members of the HOA and who are responsible for interpreting the governing documents and state law. Except when CIDs are first developed, no state agency provides ongoing oversight to these communities. In order to amend the governing documents, an HOA must follow the procedure outlined in their governing documents, or if the governing documents are silent, the process provided in state law. State law and most governing documents require that a majority of members vote to approve an amendment to the governing documents. AB 2561 Page 8 An increasing proportion of Californians now live in CID's-by some accounts between one-fourth and one-third of all Californians-and it is likely CIDs represent the majority of new housing being built in the state. Furthermore, the governing documents of CIDs typically contain many restrictions over aspects of use, appearance, and transferability of interest of the property. For these reasons, this bill seeks to facilitate the ability of homeowners in the ever-expanding CID-segment of the population to engage in personal agriculture in their own yards, subject to reasonable restrictions but not prohibited by their homeowner's association. Proposed amendments eliminate entrepreneurial agriculture and clarify the use of reasonable restrictions in CIDs. As proposed to be amended, this bill eliminates authority for entrepreneurial agriculture and clarifies that personal agriculture is permitted for the tenant's personal use or for donation to others. The proposed amendments also state that any provision of a CID governing document shall be void and unenforceable if it effectively prohibits or restricts either (1) the use of the homeowner's front or back yard for personal agriculture, or (2) the off-site sale or donation of produce grown on the homeowner's property. The bill does not, however, prohibit a CID from imposing "reasonable restrictions" on the use of a homeowner's yard for personal agriculture, which are defined as restrictions that do not significantly increase the cost of engaging in personal agriculture or significantly decrease its efficiency. Prior to the author's proposed amendments, the bill was opposed by homeowners' associations, including ECHO and CAI, on the general principle that any bill that seeks to restrict an HOA's governing documents intrudes upon the existing process of self-governance by members that is a central characteristic of HOAs. ECHO writes in opposition: "When a separate interest in a common interest development is purchased, the buyer agrees to abide by the governing documents of the HOA. Those governing documents can be amended by a vote of the association. This bill bypasses that process and takes away the collective voice of the other homeowners of the association who may have legitimate reasons for denying personal agriculture in their neighborhood." The Committee notes that, notwithstanding the authority for AB 2561 Page 9 self-governance provided to HOAs by statute, the Legislature over the years also has seen fit to modify or limit that authority when thought appropriate to further other important public policy goals. For example, the Legislature recently approved and the Governor signed SB 209 (Corbett), Ch. 121. Stats. 2011, to promote the ownership of electric vehicles and the reduction in pollution that they cause, among other things. Specifically, SB 209 rendered void and unenforceable any provisio of an HOA's governing documents that effectively prohibits or restricts the installation or use of an electrical vehicle charging station by an individual owner, as specified. Like that measure, this bill provides that HOAs retain authority to impose reasonable restrictions, in this case upon personal agriculture, but they may not adopt rules that would prohibit or effectively prohibit the practice. Similar restrictions upon HOA authority to prohibit certain practices are sprinkled through the Civil Code, including with respect to installation of solar energy systems (Section 714), installation of satellite dishes or antennas (Section 4725), ownership of pets (Section 4715), and rental of the property to tenants (Section 4740), among others. In short, the proposed amendments seek to ensure that owners in common interest developments may engage in personal (but not entrepreneurial) agriculture in their exclusive outdoor yard areas, and that HOA's may impose reasonable restrictions but may not effectively prohibit or unreasonably restrict personal agriculture. At the time of this analysis, the author and the CID associations continue to engage in dialogue, but it is not known whether these proposed amendments are sufficient to remove their opposition. Double referral to Assembly Local Government for analysis of local land use issues. Should this bill pass this Committee, it will be referred to the Assembly Local Government Committee for consideration. For this reason, this analysis focuses only on the landlord-tenant and CID provisions of the bill (Sections 2 and 3), while preserving the local land use issues (Section 4) for analysis in the Local Government Committee who has jurisdiction over such matters. ARGUMENTS IN SUPPORT : This bill is supported by produce companies and advocates for urban agriculture, who write in support: AB 2561 Page 10 (This bill) will increase access to fresh produce for all Californians, regardless of their place of residence and socioeconomic limitations. Allowing small-scale local food production will also reduce the carbon footprint of our food system by shortening the distance between produce and consumer. The bill also promotes efficient, fruitful use of water and land resources, empowering Californians to prioritize food cultivation over ornamental lawns and vacant lots. ARGUMENTS IN OPPOSITION : The bill is opposed by several apartment associations and property owners. Two of them, the Apartment Association of Greater Los Angeles and the Santa Barbara Rental Property Association, state: (We) support the objectives of the author - to promote nutrition and good eating habits in areas of the state that have difficulty doing so. And, we agree while homegrown fruits and vegetables may not be the answer to drought, obesity, diabetes and health care costs, there is ample evidence that suggests they are part of the answer. But the Legislature's support for and enthusiasm about nutrition and improving access to fresh fruits and vegetables does not justify such a serious trespass as AB 2561 is on two fundamental principles undergirding rental housing: 1) promoting and preserving the quiet enjoyment of the premises; and 2) protecting against damage to the physical property and associated premises. Indeed, those principles have been long upheld by the Legislature. Unfortunately, rather than encouraging or providing incentives for the creation of community gardens, particularly in urban areas and in neighborhoods where fruits and vegetables aren't easily accessible, AB 2561 takes a heavy-handed approach - mandating that residents be given the right to demand of property owners that they allow indoor and outdoor gardening, regardless of physical limitations of properties, the impacts on other residents and the vast potential for damage to the properties. REGISTERED SUPPORT / OPPOSITION : Support Sustainable Economies Law Center (SELC) (sponsor) AB 2561 Page 11 City Slicker Farms Phat Beets Produce, Inc. Virtually Green Opposition Apartment Association, California Southern Cities Apartment Association of Greater Los Angeles Apartment Association of Orange County California Apartment Association (unless amended) Community Associations Institute (CAI) East Bay Rental Housing Association Educational Community of Homeowners (ECHO) Nor Cal Rental Property Association Santa Barbara Rental Property Association Analysis Prepared by : Anthony Lew / JUD. / (916) 319-2334