Amended in Senate August 1, 2016

Amended in Senate June 14, 2016

Amended in Assembly June 1, 2016

Amended in Assembly April 14, 2016

Amended in Assembly April 4, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1934

Introduced by Assembly Member Santiago

February 12, 2016

An act to add Section 65915.7 to the Government Code, relating to housing.


AB 1934, as amended, Santiago. Planning and zoning: development bonuses: mixed-use projects.

The Planning and Zoning Law requires, when an applicant proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus and other incentives or concessions for the production of lower income housing units or for the donation of land within the development if the developer, among other things, agrees to construct a specified percentage of units for very low, low-, or moderate-income households or qualifying residents.

This bill, when an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a joint project or 2 separate projects encompassing affordable housing, would require a city, county, or city and county to grant to the commercial developer a development bonus, as specified. The bill would define the development bonus to mean incentives mutually agreed upon by the developer and the jurisdiction that may include but are not limited to, specified variances. By increasing the duties of local officials relating to the administration of development bonuses, this bill would create a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1


The Legislature finds and declares that the
2development of affordable housing is a matter of statewide concern
3and is not a municipal affair as that term is used in Section 5 of
4Article XI of the California Constitution. Therefore, Section
565915.7 of the Government Code, as proposed to be added by this
6act, shall apply to all cities, including charter cities.


SEC. 2.  

Section 65915.7 is added to the Government Code, to



(a) When an applicant for approval for commercial
10development agrees to partner with an affordable housing developer
11to construct a joint project or two separate projects encompassing
12affordable housing, the city, county, or city and countybegin delete shall, in
13addition to any density bonus and incentives or concessions granted
14to the affordable housing developer as prescribed in subparagraph
15(C) of paragraph (2) of subdivision (d) of Section 65915,end delete
begin insert shallend insert
16 grant to the commercial developer a development bonus as
17prescribed in subdivision (b). Offsite housing constructed according
18to this subdivision shall be all of the following:

19(1) Within the boundaries of the local government.

20(2) In close proximity to public amenities including schools and
21employment centers.

P3    1(3) Located within one-half mile of a major transit stop, as
2defined in subdivision (b) of Section 21155 of the Public Resources

4(b) The development bonus granted to the commercial developer
5shall mean incentives, mutually agreed upon by the developer and
6the jurisdiction, that may include, but are not limited to, any of the

8(1) Up to a 20-percent variance in maximum allowable intensity
9in the General Plan, zoning ordinance, or other regulation.

10(2) Up to a 20-percent variance in maximum allowable floor
11area ratio.

12(3) Up to a 20-percent variance in maximum height

14(4) Up to a 20-percent variance in minimum parking

16(5) A specific use of a limited-use/limited-application elevator
17for upper floor accessibility.

18(c) For the purposes of this section, the agreement for partnered
19housing and commercial developments shall be approved by the
20affordable housing developer, the commercial developer, and the
21local government.

22(d) For the purposes of this section, affordable housing may be
23contributed by the commercial developer in one of the following

25(1) The commercial developer may directly build the units.

26(2) The commercial developer may dedicate a portion of the
27site or property elsewhere to the affordable housing developer for
28use as a site for affordable housing.

29(3) The commercial developer may make an in-lieu payment to
30the affordable housing developer that shall be used towards the
31costs of affordable housing construction on a pending project.

32(e) For the purposes of this section, subparagraph (A) of
33paragraph (3) of subdivision (c) of Section 65915 shall apply.

34(f) Nothing in this section shall preclude any additional
35allowances or incentives offered to developers by local
36governments pursuant to law or regulation.

37(g) (1) If the developer of the affordable units does not
38commence with construction of those units in accordance with
39timelines ascribed by the agreement described in subdivision (c),
40the local government may withhold certificates of occupancy for
P4    1begin delete any market rate unitsend deletebegin insert the commercial developmentend insert under
2construction until the developer has completed construction of the
3affordable units.

4(2) For the purposes of this subdivision, “commence with
5construction” shall mean either of the following:

6(A) Commence or complete the construction of affordable units.

7(B) Issuance of building permits for the construction of the
8affordable units.

begin insert

(h) In order to qualify for a development bonus under this
10section, a commercial developer shall partner with a housing
11developer that provides at least 30% of the total units for
12low-income households or at least 15% of the total units for very
13low-income households.

end insert
begin insert

(i) Nothing in this section shall preclude an applicant for a
15development bonus from seeking a density bonus, concessions or
16incentives, waivers or reductions of development standards, or
17parking ratios under Section 65915.

end insert
begin insert

(j) A development bonus pursuant to this section shall not
19include a reduction of fees for affordable housing or authorize
20noncompliance with other affordable housing requirements within
21a local commercial linkage and impact fee ordinance.

end insert
begin delete


end delete

23begin insert(k)end insert For purposes of this section, “partner” shall mean formation
24of a partnership, limited liability company, corporation, or other
25entity recognized by the state in which the commercial
26development applicant and the affordable housing developer are
27each partners, members, shareholders or other participants, or a
28contract or agreement between a commercial development applicant
29and affordable housing developer for the development of both the
30commercial and the affordable housing properties.


SEC. 3.  

No reimbursement is required by this act pursuant to
32Section 6 of Article XIII B of the California Constitution because
33a local agency or school district has the authority to levy service
34charges, fees, or assessments sufficient to pay for the program or
35level of service mandated by this act, within the meaning of Section
3617556 of the Government Code.