BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 2180|
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                                   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  








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            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  







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            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  







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            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  







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            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)









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          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


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