BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2180| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2180 Author: Ting (D) Amended: 8/17/16 in Senate Vote: 21 SENATE GOVERNANCE & FIN. COMMITTEE: 5-0, 6/22/16 AYES: Hertzberg, Nguyen, Beall, Hernandez, Moorlach NO VOTE RECORDED: Lara, Pavley SENATE APPROPRIATIONS COMMITTEE: 5-0, 8/11/16 AYES: Lara, Beall, Hill, McGuire, Mendoza NO VOTE RECORDED: Bates, Nielsen ASSEMBLY FLOOR: 67-0, 5/27/16 (Consent) - See last page for vote SUBJECT: Land use: development project review SOURCE: Author DIGEST: This bill shortens deadlines for approval or disapproval of certain residential and mixed use developments under the Permit Streamlining Act. ANALYSIS: Existing law: 1)Requires every county and city to adopt a general plan that AB 2180 Page 2 sets out the intensity (density) and location for planned uses in the area covered by the plan. 2)Requires, generally, cities' and counties' major land use decisions-including development permitting-to be consistent with their general plans. 3)Requires various permits and compliance with local laws and regulations in order to construct new housing. 4)Requires, under the Permit Streamlining Act, public agencies to act fairly and promptly on applications for development permits, including to: a) Compile lists of information that applicants must provide and explain the criteria they will use to review permit applications. b) Determine within 30 days whether applications for development projects are complete. 5)Provides that a public agency's failure to act results in an application being "deemed complete." 6)Allows public agencies to request additional information, potentially extending the time before an application is deemed complete. 7)Defines public agencies to include state agencies, cities, charter cities, counties, special districts, and other political subdivisions of the state for the purposes of the Permit Streamlining Act. 8)Requires public agencies to act within a specific time period after completing any environmental review documents required AB 2180 Page 3 under the California Environmental Quality Act (CEQA), as follows: a) Local governments that serve as lead agencies under CEQA must act within: i) 60 days after completing a negative declaration or determining that a project is exempt from review, or ii) 180 days after certifying an environmental impact report (EIR). iii) 90 days of certifying an EIR for a residential or mixed use development that make at least 49% of the housing units affordable for low- or very low-income households and meet other specified conditions. b) Responsible agencies under CEQA must approve or disapprove the development project within 180 days of the date that either the lead agency approved the project or deemed the application complete, whichever is longer. 9)Allows the deadlines to be extended once for up to 90 days upon mutual agreement between the agency and the applicant. This bill: 1)Requires a lead agency to approve or disapprove an application for a residential or mixed use development that devotes at least half of its square footage to residential units and only includes small-scale commercial enterprises, within 120 days of certifying an EIR for the project. 2)Requires responsible agencies, other than the California Coastal Commission, to approve or disapprove those projects AB 2180 Page 4 within 90 days of the date that either the lead agency approved the project or deemed the application complete, whichever is longer. Background Housing prices in many parts of California-particularly in cities along the coast-vastly outstrip prices in other states. While the causes of these high housing prices are complex, studies have shown that a major factor is the undersupply of housing. Local governments looking to preserve the character of their neighborhoods or keep home values high have found novel ways to slow, modify, or halt new development that might otherwise lower prices. These tactics include prohibiting the construction of second units, imposing low-density zoning, or implementing explicit policies that limit growth. In addition, local government revenue streams have been limited by constitutional amendments, leading them to incentivize commercial development that uses fewer services and produces sales tax revenue over residential development that needs more services but produces limited amounts of property tax revenue. Some organizations want to expedite public agency decisions on residential and mixed use developments. Comments 1)Purpose of the bill. California is in the midst of an unprecedented housing crisis caused by a severe lack of new housing construction, both market rate and affordable. Unfortunately, the local and state approval processes for new housing construction are frequently slow and cumbersome. AB 2180 takes a modest but important step towards speeding those approvals by encouraging public agencies to act more quickly on residential and neighborhood-scale mixed use developments, while preserving all public notice and appeals requirements in current law. AB 2180 will ensure that badly needed housing projects move through the building approval process faster, thus reducing costs and other delays that can be associated AB 2180 Page 5 with a lengthy approval process. 2)Sure, but will it work? In practice, it can be hard to take advantage of the "deemed-approved" remedy in the Permit Streamlining Act. The Act doesn't apply to general plan amendments or zoning ordinances that are prerequisites to permitting any sort of development. And creative local governments have continued to develop new ways to slow or block dense residential or mixed use development that they fear would reduce housing prices, such as providing vague lists of required information. AB 2180 may expedite some approvals in communities that are already favorably inclined towards development, but stronger intervention in local planning and zoning may be needed to truly accelerate the construction of new housing and address high housing costs. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: Yes According to the Senate Appropriations Committee, unknown local costs to comply with accelerated project approval timelines. These costs are not state-reimbursable because local agencies can charge fees to offset any increased costs. (local fee disclaimer) SUPPORT: (Verified8/16/16) California Apartment Association California Association of Realtors California Building Industry Association California Business Properties Association California Chamber of Commerce OPPOSITION: (Verified8/16/16) AB 2180 Page 6 None received ASSEMBLY FLOOR: 67-0, 5/27/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bonilla, Bonta, Burke, Calderon, Campos, Chang, Chau, Chávez, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Harper, Roger Hernández, Holden, Irwin, Jones, Kim, Lackey, Levine, Linder, Lopez, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Nazarian, Obernolte, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon NO VOTE RECORDED: Bloom, Brough, Brown, Chiu, Dodd, Eduardo Garcia, Grove, Hadley, Jones-Sawyer, Low, Melendez, O'Donnell, Ting Prepared by:Anton Favorini-Csorba / GOV. & F. / (916) 651-4119 8/17/16 16:02:20 **** END ****