BILL NUMBER: AB 1934 AMENDED
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
INTRODUCED BY Assembly Member Santiago
FEBRUARY 12, 2016
An act to add and repeal Section 65915.7
of 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 approval for
of a commercial development agrees to partner
has entered into an agreement for partnered housing
with an affordable housing developer to construct
contribute affordable housing through a joint
project or 2 separate projects encompassing affordable housing,
would would , until January 1,
2022, 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. 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. 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
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:
SECTION 1. The Legislature finds and declares that the development
of affordable housing is a matter of statewide concern and is not a
municipal affair as that term is used in Section 5 of Article XI of
the California Constitution. Therefore, Section 65915.7 of the
Government Code, as proposed to be added by this act, shall apply to
all cities, including charter cities.
SEC. 2. Section 65915.7 is added to the Government Code, to read:
65915.7. (a) When an applicant for approval for
of a commercial development agrees to
partner with an affordable housing developer has
entered into an agreement for partnered housing described in
subdivision (c) to construct
contribute affordable housing through a joint
project or two separate projects encompassing affordable housing, the
city, county, or city and county shall grant to the commercial
developer a development bonus as prescribed in subdivision (b).
Offsite housing constructed according to this subdivision
shall be Housing shall be constructed on the site of
the commercial development or on a site that is all
of the following:
(1) Within the boundaries of the local government.
(2) In close proximity to public amenities including schools and
(3) Located within one-half mile of a major transit stop, as
defined in subdivision (b) of Section 21155 of the Public Resources
(b) The development bonus granted to the commercial developer
shall mean incentives, mutually agreed upon by the developer and the
jurisdiction, that may include, but are not limited to, any of the
(1) Up to a 20-percent variance increase
in maximum allowable intensity in the General Plan,
zoning ordinance, or other regulation. Plan.
(2) Up to a 20-percent variance increase
in maximum allowable floor area ratio.
(3) Up to a 20-percent variance increase
in maximum height requirements.
(4) Up to a 20-percent variance reduction
in minimum parking requirements.
(5) A specific use Use of a
limited-use/limited-application elevator for upper floor
(6) An exception to a zoning ordinance or other land use
(c) For the purposes of this section, the agreement for partnered
housing and commercial developments shall be
between the commercial developer and the housing developer, shall
identify how the commercial developer will contribute affordable
housing, and shall be approved by the affordable
housing developer, the commercial developer, and the local
government. city, county, or city and co
(d) For the purposes of this section, affordable housing may be
contributed by the commercial developer in one of the following
(1) The commercial developer may directly build the units.
(2) The commercial developer may dedicate
donate a portion of the site or property elsewhere to the
affordable housing developer for use as a site for affordable
(3) The commercial developer may make an in-lieu
a cash payment to the affordable housing
developer that shall be used towards the costs of constructing
the affordable housing construction on a pending
(e) For the purposes of this section, subparagraph (A) of
paragraph (3) of subdivision (c) of Section 65915 shall apply.
(f) Nothing in this section shall preclude any additional
allowances or incentives offered to developers by local governments
pursuant to law or regulation.
(g) (1) If the developer of
the affordable units does not commence with construction of those
units in accordance with timelines ascribed by the agreement
described in subdivision (c), the local government may withhold
certificates of occupancy for the commercial development under
construction until the developer has completed construction of the
(2) For the purposes of this subdivision, "commence with
construction" shall mean either of the following:
(A) Commence or complete the construction of affordable units.
(B) Issuance of building permits for the construction of the
(h) In order to qualify for a development bonus under this
section, a commercial developer shall partner with a housing
developer that provides at least 30 percent of the total units for
low-income households or at least 15 percent of the total units for
very low-income households.
(i) Nothing in this section shall preclude an applicant
for a development bonus affordable housing developer
from seeking a density bonus, concessions or incentives,
waivers or reductions of development standards, or parking ratios
under Section 65915.
(j) A development bonus pursuant to this section shall not include
a reduction or waiver of fees for affordable
housing or authorize noncompliance with other affordable housing
the requirements within a local
commercial linkage and impact fee ordinance. an
ordinance that requires the payment of a fee by a commercial
developer for the promotion or provision of affordable housing.
(k) A city or county shall submit to the Department of Housing and
Community Development, as part of the annual report required by
Section 65400, information describing a commercial development bonus
approved pursuant to this section, including the terms of the
agreements between the commercial developer and the affordable
housing developer, and the developers and the local jurisdiction, and
the number of affordable units constructed as part of the
(l) For purposes of this section, "partner" shall mean
formation of a partnership, limited liability company, corporation,
or other entity recognized by the state in which the commercial
development applicant and the affordable housing developer are each
partners, members, shareholders or other participants, or a contract
or agreement between a commercial development applicant and
affordable housing developer for the development of both the
commercial and the affordable housing properties.
(m) This section shall remain in effect only until January 1,
2022, and as of that date is repealed.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.