BILL ANALYSIS Ó
AB 744
Page 1
ASSEMBLY THIRD READING
AB
744 (Chau)
As Amended June 2, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+----------------------+---------------------|
|Housing |6-1 |Chau, Steinorth, |Beth Gaines |
| | |Burke, Chiu, Lopez, | |
| | |Mullin | |
| | | | |
|----------------+------+----------------------+---------------------|
|Local |7-2 |Gonzalez, Alejo, |Maienschein, Waldron |
|Government | |Chiu, Cooley, Gordon, | |
| | |Holden, Linder | |
| | | | |
|----------------+------+----------------------+---------------------|
|Appropriations |12-4 |Gomez, Bonta, |Bigelow, Chang, |
| | |Calderon, Daly, |Gallagher, Wagner |
| | |Eggman, Eduardo | |
| | |Garcia, Gordon, | |
| | |Holden, Quirk, | |
| | |Rendon, Weber, Wood | |
| | | | |
| | | | |
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AB 744
Page 2
SUMMARY: Requires a city, county, or city and county, upon the
request of a developer that receives a density bonus, to reduce or
eliminate the minimum parking requirements for the development, if
it meets specified criteria. Specifically, this bill:
1)Includes legislative intent language.
2)Defines a "major transit stop" to have the same meaning as
Public Resources Code Section 21155(b).
3)Provides that when a developer agrees to include the maximum
number of very low- and low- income units under Density Bonus
Law within one-half mile of a major transit stop and with
unobstructed access to the major transit stop from the
development, then upon the request of the developer a city,
county, or city and county shall not impose a parking ratio that
exceeds 0.5 spaces per bedroom.
4)Provides that if a development is 100% affordable to lower
income families then upon the request of a developer, a city,
county, or city and county, shall eliminate the minimum parking
requirements for the development, if it meets one of the
following criteria:
a) The development is located within one-half mile of a
"major transit stop" and there is unobstructed access to the
major transit stop from the development;
b) The development is a for-rent housing development for
individuals who are 62 years of age or older; or
c) The development is a special needs housing development.
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1)Provides that this bill does not preclude a city, county, or
city and county from reducing or eliminating a parking
requirement for developments of any type or location.
2)Allows a city, county, or city and county to impose a higher
parking standard than the one for 2), and 3), above, that does
not exceed the standard under Density Bonus Law, based upon
substantial evidence in an area-wide or jurisdiction-wide
parking study conducted by an independent consultant within the
last five years that includes but is not limited to an analysis
of: parking availability, differing levels of transit access,
walkability access to transit services, the potential for shared
parking, and the effect of parking requirements on the cost of
market-rate and subsidized parking.
3)Requires the city, county, or city and county who has completed
a parking study and imposes a higher standard than 2) and 3)
above, to make findings supporting the need for a higher parking
ratio.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, the fiscal impact is minor, non-reimbursable costs to
cities and counties.
COMMENTS:
Background:
California is facing a housing affordability crisis on many
fronts. According to the United States Department of Housing and
Urban Development, California has six of the most expensive rental
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markets in the country. Nationwide, rents in 2014 grew the fastest
in the San Jose and San Francisco metropolitan areas, increasing
by 14.4% and 13.5%, respectively. Between 2006 and 2011, rents
increased throughout the state by an average of 10%. Lower-income
households represent a majority of renter households. Out of 5.1
million renters in California, 60% are in lower-income households,
while one in four renter households are in the extremely
low-income. One in two renters in California pay in excess of 30%
of their income towards housing and one in four renters pay half
of their income towards housing.
The funding sources to support construction of affordable housing
have drastically diminished over the last five years. The
dissolution of redevelopment agencies eliminated up to $1 billion
in funding that was available for affordable housing construction.
The last statewide housing bond was approved in 2008 and the
proceeds of those bonds have been exhausted.
Density Bonus Law:
To help address California's affordable housing shortage, the
Legislature enacted density bonus law 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.
This bill would amend density bonus law to allow developers that
agree to either include a percentage of affordable units or where
the development is 100% affordable to lower income families and
individuals to request a city or county reduce or eliminate
parking ratios.
Cost of parking spaces:
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Affordable housing is expensive to build in California due to both
the amount of subsidy needed to make the housing affordable and
the cost of local regulatory requirements. In some cases, cities
and counties apply minimum parking standards to housing
developments that may 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. The average construction cost per space, excluding
land cost, in a parking structure in the United States is $24,000
for aboveground parking and $34,000 for underground parking.
Certain types of parking, podium or subterranean, can increase
parking costs by 6% or more relative to other types of parking.
This bill would require cities or counties to waive the minimum
parking ratio for developments that are solely for lower-income
tenants. These projects would have to be either close to major
transit, for seniors who are 62 years or older, or for special
needs populations. Developments that are solely affordable to
low-income tenants typically require Low-Income Housing Tax
Credits (LIHTC) to finance the project. To compete for LIHTC,
projects needs to meet scoring criteria including proximity to
transit. Although projects that are senior or special needs are
not required to meet the standard that they are within one-half
mile of major transit they will need to meet the transit
requirements of the LIHTC.
Parking study:
This bill would allow a city or county to impose a higher parking
ratio than then those outlined in this bill if the city has
conducted a study within the last five years that includes
substantial evidence that supports the need for a higher parking
ratio. The city could only increase the parking ratio to the
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existing standard that is allowed under Density Bonus Law. This
provision was included to address concerns raised by cities who
argued they needed a means to increase parking beyond the
requirements of this bill.
Sustainable development goals:
California has taken steps over the last several years to
establish programs and policies to help incentivize regional and
local planning efforts. AB 32 (Núñez), Chapter 488, Statutes of
2006: The California Global Solutions Act of 2006 requires
California to reduce greenhouse gas (GHG) emissions to 1990 levels
by 2020. SB 375 (Steinberg), Chapter 728, Statutes of 2008,
supports the state's climate action goals to reduce GHG emissions
through coordinated transportation and land use planning with the
goal of more sustainable communities. A key component of reducing
GHG emissions is moving people out of their cars and onto public
transit. Cities and counties are required to adopt sustainable
community strategies to show how development will support
reduction in GHG emissions.
Purpose of this bill:
According to the author, this bill would reduce a local barrier to
building affordable housing by requiring a city or county and an
affordable housing developer to negotiate the appropriate parking
ratio rather than relying upon a standard that does not make sense
for the development or the tenants living in the development.
Much of California's existing parking requirements are based on
low-density and single-purpose land use designations. Parking is
costly to build and maintain and can increase the cost of projects
in existing development areas.
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Analysis Prepared by:
Lisa Engel / H. & C.D. / (916) 319-2085 FN:
0000876