BILL ANALYSIS                                                                                                                                                                                                    Ó






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 550
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  jackson
                                                         VERSION: 4/24/13
          Analysis by:  Alison Dinmore                   FISCAL:  YES
          Hearing date:  April 30, 2013



          SUBJECT:

          Increasing accessibility standards for persons with mobility and  
          communications disabilities in state- and locally-assisted  
          housing developments

          DESCRIPTION:

          This bill increases the number of accessible units required in  
          state- and locally-assisted housing developments for persons  
          with mobility disabilities from 5% to 10% and communications  
          disabilities (i.e., hearing and vision) from 2% to 4%. 

          ANALYSIS:

          California law establishes programs under the Department of  
          Housing and Community Development (HCD), including the  
          Multifamily Housing Program (MHP).  This program provides  
          financial assistance for the development and construction, as  
          well as the rehabilitation or acquisition and rehabilitation, of  
          transitional or rental housing developments.  HCD establishes a  
          competitive project selection process for these loans.  

          Developers of the projects are also subject to compliance with  
          the federal Fair Housing Act (1988), which applies design and  
          construction requirements to structures built after March 13,  
          1991.  All housing providers in all buildings, however, must  
          also make reasonable modifications for those people with  
          disabilities.  

          Every three years the California Building Standards Commission  
          (BSC) adopts revised building codes through proposal, review,  
          and adoption processes.  These processes ensure that interested  
          parties receive notice of the proposed regulations as well as an  
          opportunity to provide comments and concerns and participate in  
          the process.  Once adopted, state statute requires the BSC to  
          publish and make the building standards available to the public  
          at least 180 days before their effective date.  These procedures  




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          give the designers, contractors, local government planners,  
          building officials, and inspectors in construction time to  
          become familiar and ensure compliance with the code.  These  
          codes are then published as the California Building Code (CBC)  
          in the California Code of Regulations.  In intervening years,  
          the law also requires the BSC to consider building standards  
          proposed by state agencies at 18-month intervals (known as the  
          intervening code cycle) and to publish updates to the code as  
          necessary.  

          The Division of the State Architect (DSA) is one of several  
          state agencies that proposes changes to the CBC through the  
          BSC's rulemaking process.  DSA also develops and publishes  
          interpretations of code and policies and procedures necessary  
          for stakeholder understanding and for coordination of  
          enforcement among the DSA regional offices.  Accessibility  
          standards include building regulations for ensuring buildings,  
          structures, sidewalks, curbs, and related facilities are  
          accessible to and usable by persons with disabilities. 

          Since 1993, the CBC has required that new multifamily apartments  
          with three or more units and condominiums with four or more  
          units, constructed after March 1991, comply with HCD's  
          accessibility standards.  These standards state that all  
          ground-floor units in buildings without elevators and all units  
          in buildings with elevators shall be adaptable and on an  
          accessible route.

          Over the last two years, the BSC worked on updating the CBC, and  
          adopted the 2013 California Building Code in January, 2013.  The  
          2013 CBC goes into effect January 1, 2014.  Among other things,  
          California's new regulations place new accessibility  
          requirements on newly constructed "public housing" facilities.   
          These regulations require that a minimum of 5% of the total  
          units, or at least one unit in an assisted multifamily housing  
          project, provide mobility features.  They also require that 2%,  
          or at least one of the units, provide communications features.

          The 2013 CBC defines public housing as housing facilities that  
          are owned or operated or both, by or on behalf of a public  
          entity as well as privately owned housing made available for  
          public use as housing.

           This bill  increases the number of accessible units required in  
          state- and locally-assisted housing developments for those with  
          mobility disabilities from 5% to 10% and communications  




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          disabilities (i.e., hearing and vision) from 2% to 4% for all  
          building permit applications submitted after July 1, 2014.  This  
          bill also requires 10% of the units to be on an accessible  
          route. This bill expands the definition of "public housing" in  
          the CBC to include housing receiving financial assistance from  
          state or local governments or public agencies.  This bill  
          further defines financial assistance as the provision of any  
          land or any financial assistance, including bonds, loans or  
          grants or bond insurance or guarantees, rental assistance,  
          operational assistance, development assistance, downpayment  
          assistance, rehabilitation assistance, or housing tax credits,  
          including density bonuses. 

          COMMENTS:

          1.    Purpose of the bill  .  According to the author, people with  
            disabilities on average have lower-incomes than those who are  
            not disabled.  The U.S. Department of Labor found that only  
            20.5% of adults with disabilities are in the workforce  
            compared with 69.1% of people without disabilities.  This  
            means that people with disabilities, including veterans and  
            seniors, often require affordable housing.  In addition,  
            people with disabilities require housing that meets their  
            specific disability-related needs.  For example, those in  
            wheelchairs require building designs that allow them to move  
            freely through doorways and up and down stairs, as well as  
            features such as handle bars in bathrooms and lower counters  
            in kitchens.  Those with vision and hearing impairments  
            similarly require special communications features.  

            Presently, among California households with incomes below  
            45.1% of the federal poverty level, 10% have one or more  
            members with some type of mobility device.  Among elderly  
            populations in California (persons at least 65 years or  
            older), 30.1% have one or more members who use some type of  
            mobility device.  Between 9 and 22 out of every 1,000 people  
            have a severe hearing impairment or are deaf, and 1.8% of  
            Californians have a visual disability. The author is seeking  
            to increase the stock of state- and locally-funded units that  
            are accessible for those with mobility and communications  
            disabilities in order to meet these demands.  The author is  
            choosing to place these requirements in statute so that they  
            do not have to wait three years to go through the  
            administrative process.  Additionally, the sponsor is seeking  
            to clarify the definition of public housing to ensure that it  
            encompasses all publicly supported housing. 




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          2.    Building codes should not be placed in statute  .  The  
            current set of changes to the CBC, adopted in January 2013,  
            takes effect on January 1, 2014.  This two-year administrative  
            process was the largest overhaul of state accessibility  
            regulations in the past twenty years.  These kinds of changes  
            are made through the same administrative process to provide  
            the notice that interested parties require to ensure  
            compliance.  These parties look to the CBC, not the Health and  
            Safety Code, for accessibility standards.  Rather than putting  
            these changes into statute, the committee may wish to consider  
            directing HCD and DSA to develop building standards for  
            adoption by the BSC during the next intervening code cycle. 

          3.    Reserving accessible units for persons with disabilities  .   
            In many large urban areas, applicants for affordable housing  
            units are on a waiting list for many years.  When these  
            waiting lists open up periodically (e.g., every few years),  
            they fill-up after being open for a short time, often only a  
            few hours.  

            Department of Housing and Urban Development (HUD) regulations  
            state that federally- funded Public Housing Authorities can  
            set "local preferences" to move a household with greater  
            housing needs up on the waiting list as long as these  
            preferences are approved by HUD.  This can include people with  
            disabilities.  Additionally, HUD regulations state that when a  
            federally-funded unit becomes vacant, the owner or manager,  
            before offering such unit to a non-disabled applicant, shall  
            offer that unit first to a current occupant of the same  
            project who has a disability that requires the accessibility  
            features of the unit; and second, to an eligible qualified  
            applicant on the waiting list having a disability requiring  
            the accessibility features of the vacant unit. Additionally,  
            when offering a unit to an applicant not having a disability,  
            the owner may require the applicant to agree to move to a  
            non-accessible unit when available.

            With respect to state- or local-government assisted housing,  
            often those who are disabled do not have priority for units  
            that meet higher disability accessibility standards.  The  
            committee may wish to consider amending the bill to direct HCD  
            to implement similar requirements for state- and  
            locally-funded housing projects that give priority for  
            accessible units to persons with disabilities. 
            




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          4.    Scope of applicability unclear  .  The CBC definition of  
            public housing applies to developments with three or more  
            units.  This bill is applicable to "public housing facilities  
            with residential dwelling units" and is unclear how many units  
            trigger these requirements.  Additionally, the definition of  
            "financial assistance" is ambiguous and overly broad.  The  
            definition applies to the provision of "any land," which could  
            be construed as land purchased for fair market value.  The  
            sponsors state that the standards should not apply to mortgage  
            assistance, however, the definition includes "downpayment  
            assistance."  The definition further lists ambiguous terms  
            such as rehabilitation assistance and development assistance.   
            Lastly, the bill applies to developments for which a developer  
            receives a density bonus.  These include private developments  
            with no public funding for which the developer has agreed to  
            include affordable units in exchange for incentives.  The  
            committee may wish to consider limiting the bill to  
            multifamily housing and redefining "financial assistance" as  
            the provision of land at less than fair market value or direct  
            financial assistance including loans, grants, guarantees,  
            project-based rental assistance, or state or federal  
            low-income housing tax credits. 
          
          5.    Costs  .  Supporters have suggested that due to the newly  
            increased standards in the CBC, the costs of increasing the  
            accessibility standards will be minimal.  They have not  
            provided cost estimates to confirm this, however.  As a  
            result, it is unclear how costly the increased standards will  
            be, particularly the requirement for 10% of units to be on an  
            accessible route.  Those in opposition state that the  
            effective date will affect projects that have already been  
            approved and do not provide a sufficient number of accessible  
            units.  These projects will require costly redesigns or will  
            not proceed.  

          6.    Opposition  . Those opposed to the bill argue that building  
            codes should not be placed into statute and, echoing the  
            consideration in comment 2 above, suggest that the bill direct  
            HCD and DSA to develop building standards for adoption by the  
            BSC in the next regularly scheduled triennial code adoption  
            cycle taking place after January 1, 2014.  The opponents also  
            raise the following concerns: 

                 Effective date of July 1, 2014 is unreasonable.   
               Additionally, those opposed state that the bill's effective  
               date (for building permits submitted on or after July 1,  




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               2014) does not provide sufficient time or notice for  
               compliance.  For example, projects that have already been  
               designed and approved but do not pull a permit until July  
               2014 would be subject to the new requirements retroactively  
               and would become infeasible.
                 Definition of financial assistance" is overly broad.   
               Those in opposition state that the inclusion of "any land"  
               or "any manner of financial assistance" by a local or state  
               entity would trigger compliance with the accessibility  
               requirements on many building rehabilitation projects.  The  
               opponents suggest a clarification that financial assistance  
               means a grant by a public agency of at least 50% of the  
               cost of public housing that is solely used for the  
               construction of residential dwelling units.  They also  
               support a notice requirement to the builders about the  
               standards in this bill. 
                 Application to existing housing?  The bill raises the  
               question of whether the increased standards would apply to  
               existing housing or if the bill applies only to new  
               construction.  
                 Which construction specifications are required?  The  
               bill does not provide clarity as to what specific  
               construction specifications are required to comply with the  
               10% and the 4% application requirements.  Opponents state  
               that building officials and designers must have precise  
               clarity as to "when" and "where" these standards will  
               apply. 
          
          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday, 
                     April 24, 2013.)

               SUPPORT:  Disability Rights California (sponsor)
                         The Arc and United Cerebral Palsy in California 
                         Association of California Caregiver Resource  
          Centers
                         Coalition of California Welfare Rights  
          Organizations, Inc.
                         Disability Rights Education and Defense Fund
                         Disability Rights Legal Center
                         National Association of Social Workers
                         National Multiple Sclerosis Society - California  
          Action Network
                         Multipurpose Senior Services Program Site  
          Association, Inc.
                         State Independent Living Council 




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               OPPOSED:  Apartment Association, California Southern Cities
                         California Apartment Association
                         California Building Industry Association
                         California Business Properties Association
                         East Bay Rental Housing Association
                         Nor Cal Rental Property Association