BILL ANALYSIS Ó
AB 1934
Page 1
ASSEMBLY THIRD READING
AB
1934 (Santiago)
As Amended April 14, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Housing |6-0 |Chiu, Steinorth, | |
| | |Burke, Chau, Lopez, | |
| | |Mullin | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Local |8-0 |Eggman, Waldron, | |
|Government | |Alejo, Bonilla, Chiu, | |
| | |Cooley, Gordon, | |
| | |Linder | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |15-1 |Gonzalez, Bloom, |Obernolte |
| | |Bonilla, Bonta, | |
| | |Calderon, McCarty, | |
| | |Eggman, Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, Chau, | |
| | |Holden, Quirk, | |
| | |Santiago, Weber, Wood | |
AB 1934
Page 2
| | | | |
| | | | |
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SUMMARY: Creates a density bonus for commercial developers that
partner with an affordable housing developer to construct a
mixed-used development. Specifically, this bill:
1)Provides that when a commercial developer agrees to partner
with an affordable housing developer to construct a mixed-used
project with housing located on site of the proposed
development, a local government must in addition to granting
incentives and concessions under State Density Bonus Law also
grant the commercial developer a density bonus.
2)Provides that the density bonus for the commercial developer
means: exceptions resulting in significant cost reductions
over the maximum allowable intensity in the general fund,
zoning ordinance or other regulation of the city, county, or
city and county including but not limited to floor area ratios
and may include modification to the development standards such
as high and parking requirements.
3)Provides that no reimbursement is required by this act because
a local agency or school district has the authority to levy
service charges, fees, or assessments sufficient to pay the
program or level of service.
4)Makes findings and declarations that the development of
affordable housing is a matter of statewide concern and it is
not a municipal affair, and therefore, this bill applies to
all cities including charter cities.
AB 1934
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FISCAL EFFECT: According to the Assembly Appropriations
Committee, no state fiscal impact. Local agencies have the
authority to levy fees for related costs and thus, any local
costs are not reimbursable.
COMMENTS:
In 1979 the Legislature enacted density bonus law to help
address the affordable housing shortage and to encourage
development of more low- and moderate-income housing units.
Density bonus is a tool to encourage the production of
affordable housing that is used by both market rate and
affordable housing developers. In return for inclusion of
affordable units in a development, developers are given an
increase in density over a city's zoned density and concessions
and incentives. The increase in density and concessions and
incentives are to offset the cost the affordable units which
will be offered at a lower rent, as low as 30% of area median
income. Developers that seek a density bonus must agree to
restrict very low- and low-income rental units to affordable
levels for 55 years.
State law specifies concessions and incentives that a local
government may include in its density bonus ordinance including
a reduction in site development standards, or a modification of
zoning code requirements, or architectural design requirements
that exceed the minimum building standards, and approval of
mixed-use zoning in conjunction with the housing project if
commercial, office, industrial, or other land uses will reduce
the cost of the housing development and are compatible with the
project and the surrounding area. A developer or city can also
propose other regulatory incentives or concessions that result
in identifiable, financially sufficient, and actual cost
reductions.
AB 1934
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This bill seeks to encourage greater production of affordable
units by creating a "density bonus" for commercial developers
who partner with an affordable housing developer to construct
affordable units. Affordable housing developers would receive a
density bonus commensurate with the number of affordable units
included in the development plus concessions and incentives.
The affordable units must be built on the same site as the
commercial development. In addition to the density bonus and
concessions and incentives provided for the affordable units,
the commercial developer would receive a "density bonus" which
means exceptions to existing general plan and zoning regulations
that result in significant cost reductions.
Purpose of this bill: According to the author, "Local
governments can be wary of high density residential development
because of the corresponding increase in demand for public
services and infrastructure. Conversely, in an era of tight
budgets, local governments have more incentive to approve
commercial developments which will increase revenues (i.e.
hotels with transient occupancy tax or retail establishments
which generate sales tax). AB 1934 represents a solution to all
three of these dilemmas: a piece of California's affordable
housing crisis solution which brings both residential and
commercial developers to the table. AB 1934 creates a new
combined bonus that shall be provided by local governments to
affordable housing developers and commercial developers who
partner together to construct a mixed-use project in which
affordable housing will either be on-site or located within a
1-mile radius of the sister development. The variances can
include, but are not limited to, floor area ratios and
commercial linkage fees. AB 1934 seeks to marry two needs: a)
the state's need for affordable housing; and b) local
government's desire for increased revenues, by encouraging
non-traditional housing developers to enter the market and think
outside the box in their developments."
Analysis Prepared by:
AB 1934
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Lisa Engel / H. & C.D. / (916) 319-2085 FN:
0002976