Amended in Senate August 18, 2016

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 addbegin insert and repealend insert Section 65915.7begin delete toend deletebegin insert ofend insert the Government Code, relating to housing.

LEGISLATIVE COUNSEL’S DIGEST

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 approvalbegin delete forend deletebegin insert of aend insert commercial developmentbegin delete agrees to partnerend deletebegin insert has entered into an agreement for partnered housingend insert with an affordable housing developer tobegin delete constructend deletebegin insert contribute affordable housing throughend insert a joint project or 2 separate projects encompassing affordable housing,begin delete wouldend deletebegin insert wouldend insertbegin insert, until January 1, 2022,end insert 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, specifiedbegin delete variances.end deletebegin insert changes in land use requirements. This bill would also require a city or county to submit to the Department of Housing and Community Development information describing an approved commercial development bonus.end insert 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

SECTION 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.

7

SEC. 2.  

Section 65915.7 is added to the Government Code, to
8read:

9

65915.7.  

(a) When an applicant for approvalbegin delete forend deletebegin insert of aend insert
10 commercial developmentbegin delete agrees to partner with an affordable
11housing developerend delete
begin insert has entered into an agreement for partnered
12housing described in subdivision (c)end insert
tobegin delete constructend deletebegin insert end insertbegin insertcontribute
13 affordable housing throughend insert
a joint project or two separate projects
14encompassing affordable housing, the city, county, or city and
15county shall grant to the commercial developer a development
16bonus as prescribed in subdivision (b). begin delete Offsite housing constructed
17according to this subdivision shall be end delete
begin insertHousing shall be constructed
P3    1on the site of the commercial development or on a site that isend insert
begin insert end insertall
2of the following:

3(1) Within the boundaries of the local government.

4(2) In close proximity to public amenities including schools and
5employment centers.

6(3) Located within one-half mile of a major transit stop, as
7defined in subdivision (b) of Section 21155 of the Public Resources
8Code.

9(b) The development bonus granted to the commercial developer
10shall mean incentives, mutually agreed upon by the developer and
11the jurisdiction, that may include, but are not limited to, any of the
12following:

13(1) Up to a 20-percentbegin delete varianceend deletebegin insert increaseend insert in maximum allowable
14intensity in the Generalbegin delete Plan, zoning ordinance, or other regulation.end delete
15
begin insert Plan.end insert

16(2) Up to a 20-percentbegin delete varianceend deletebegin insert increaseend insert in maximum allowable
17floor area ratio.

18(3) Up to a 20-percentbegin delete varianceend deletebegin insert increaseend insert in maximum height
19requirements.

20(4) Up to a 20-percentbegin delete varianceend deletebegin insert reductionend insert in minimum parking
21requirements.

22(5) begin deleteA specific use end deletebegin insertUseend insert of a limited-use/limited-application
23elevator for upper floor accessibility.

begin insert

24
(6) An exception to a zoning ordinance or other land use
25regulation.

end insert

26(c) For the purposes of this section, the agreement for partnered
27housingbegin delete and commercial developmentsend deletebegin insert shall be between the
28commercial developer and the housing developer, shall identify
29how the commercial developer will contribute affordable housing,
30andend insert
shall be approved by thebegin delete affordable housing developer, the
31commercial developer, and the local government.end delete
begin insert city, county, or
32city and county.end insert

33(d) For the purposes of this section, affordable housing may be
34contributed by the commercial developer in one of the following
35manners:

36(1) The commercial developer may directly build the units.

37(2) The commercial developer maybegin delete dedicateend deletebegin insert donateend insert a portion
38of the site or property elsewhere to the affordable housing
39developer for use as a site for affordable housing.

P4    1(3) The commercial developer may makebegin delete an in-lieuend deletebegin insert a cashend insert
2 payment to the affordable housing developer that shall be used
3towards the costs ofbegin insert constructing theend insert affordable housing
4begin delete construction on a pendingend delete project.

5(e) For the purposes of this section, subparagraph (A) of
6paragraph (3) of subdivision (c) of Section 65915 shall apply.

7(f) Nothing in this section shall preclude any additional
8allowances or incentives offered to developers by local
9governments pursuant to law or regulation.

10(g)begin deleteend deletebegin delete(1)end delete If the developer of the affordable units does not
11commence with construction of those units in accordance with
12timelines ascribed by the agreement described in subdivision (c),
13the local government may withhold certificates of occupancy for
14the commercial development under construction until the developer
15has completed construction of the affordable units.

begin delete

16(2) For the purposes of this subdivision, “commence with
17construction” shall mean either of the following:

end delete
begin delete

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

end delete
begin delete

19(B) Issuance of building permits for the construction of the
20affordable units.

end delete

21(h) In order to qualify for a development bonus under this
22section, a commercial developer shall partner with a housing
23developer that provides at least 30 percent of the total units for
24low-income households or at least 15 percent of the total units for
25very low-income households.

26(i) Nothing in this section shall preclude anbegin delete applicant for a
27development bonusend delete
begin insert affordable housing developerend insert from seeking a
28density bonus, concessions or incentives, waivers or reductions of
29development standards, or parking ratios under Section 65915.

30(j) A development bonus pursuant to this section shall not
31include a reductionbegin insert or waiverend insert ofbegin delete fees for affordable housing or
32authorize noncompliance with other affordable housingend delete
begin insert theend insert
33 requirements withinbegin delete a local commercial linkage and impact fee
34ordinance.end delete
begin insert an ordinance that requires the payment of a fee by a
35commercial developer for the promotion or provision of affordable
36housing.end insert

begin insert

37
(k) A city or county shall submit to the Department of Housing
38and Community Development, as part of the annual report required
39by Section 65400, information describing a commercial
40development bonus approved pursuant to this section, including
P5    1the terms of the agreements between the commercial developer
2and the affordable housing developer, and the developers and the
3local jurisdiction, and the number of affordable units constructed
4as part of the agreements.

end insert
begin delete

23 5(k)

end delete

6begin insert(l)end insert For purposes of this section, “partner” shall mean formation
7of a partnership, limited liability company, corporation, or other
8entity recognized by the state in which the commercial
9development applicant and the affordable housing developer are
10each partners, members, shareholders or other participants, or a
11contract or agreement between a commercial development applicant
12and affordable housing developer for the development of both the
13commercial and the affordable housing properties.

begin insert

14
(m) This section shall remain in effect only until January 1,
152022, and as of that date is repealed.

end insert
16

SEC. 3.  

No reimbursement is required by this act pursuant to
17Section 6 of Article XIII B of the California Constitution because
18a local agency or school district has the authority to levy service
19charges, fees, or assessments sufficient to pay for the program or
20level of service mandated by this act, within the meaning of Section
2117556 of the Government Code.



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