BILL ANALYSIS Ó
AB 744
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Date of Hearing: May 27, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
744 (Chau) - As Amended March 26, 2015
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|Policy |Housing and Community |Vote:|6 - 1 |
|Committee: |Development | | |
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| |Local Government | |7 - 2 |
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Urgency: No State Mandated Local Program: YesReimbursable:
Yes
SUMMARY:
This bill requires a city or county, upon the request of a
developer that receives a density bonus, to eliminate the
minimum onsite parking requirements on the development that is
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within one-half mile of a major transit stop, is a senior
housing development, or is a special needs housing development.
FISCAL EFFECT:
Minor, non-reimbursable costs to cities and counties.
COMMENTS:
1)Purpose. According to the author, "In some cases, cities and
counties apply minimum parking standards to housing
development that do not reflect the demand from tenants for
parking. These projects may be close to transit stations or
home to seniors or individuals with special needs who drive
less frequently and have fewer vehicles. Parking spaces,
which sometimes go unused, can significantly increase the cost
of construction. AB 744 aligns local land use decisions more
closely with the goals of AB 32 (The California Global
Solutions Act of 2006) and SB 375 (Steinberg, Chapter 728,
Statutes of 2008) by reducing the parking required for
projects that are close to transit or serve individuals who
have fewer cars. The bill also provides another incentive to
developers to include affordable units in their development in
turn for a reduction in parking requirements, where those
reductions make sense."
2)Background. The density bonus law is designed to encourage the
development of more affordable units. Under current law, a
city or county must grant a density bonus, concessions and
incentives, prescribed parking requirements, as well as
waivers of development standards upon a developer's request
when the developer includes a certain percentage of affordable
housing in a housing development project.
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The density bonus law was originally enacted in 1979, but has
been changed numerous times. In 2004, the Legislature made
significant changes to the law, including reducing the number
of housing units required at below market rate in order to
qualify for a density bonus. Currently, developers are
entitled to benefits under the density bonus law when they
include one or more affordable housing unit(s) as part of an
otherwise market-rate project. A housing project with 5% of
very low-income housing is entitled to a 20% density bonus,
one concession, unlimited waivers from development standards,
and reduced parking standards for the entire project.
3)Arguments in Support. Supporters argue that outdated,
one-size-fits all minimum parking requirements increase
development costs, and therefore, housing and rental prices,
by distorting the market for parking, will instead allow the
developer to build to actual parking demand and thereby allow
renters and homebuyers to save money on their units.
4)Arguments in Opposition. The League of California Cities
writes that the density bonus law already offers two tiers of
parking incentives to developers: a) Statutory maximums
commencing at one parking space per bedroom; and b) The
ability to seek additional concessions to further reduce
parking below the maximums, and that the League is unclear why
the existing provisions are inadequate.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081
AB 744
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