BILL ANALYSIS Ó AB 2180 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2180 (Ting) As Amended August 17, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |67-0 |(May 27, 2016) |SENATE: |33-1 |(August 24, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: L. GOV. SUMMARY: Expedites timelines for approval or disapproval by a public agency for certain types of development projects. The Senate amendments exempt the California Coastal Commission, when acting as the responsible agency, from the accelerated deadlines for certain residential and mixed use development projects. FISCAL EFFECT: 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. COMMENTS: AB 2180 Page 2 1)Bill Summary. This bill expedites, for a public agency, the review process for certain development projects, pursuant to the Permit Streamlining Act, specifically those development projects that are either: a) residential units only; or, b) mixed-use developments consisting of residential and nonresidential uses in which the nonresidential uses are less than 50% of the total square footage of the development and are limited to neighborhood commercial uses and to the first floor of buildings that are two or more stories. This bill requires any public agency that is the lead agency for a development project to approve or disapprove the project within 120 days from the date of certification by the lead agency of the environmental impact report (EIR), if an EIR is prepared for that development project. The bill also requires a public agency that is a responsible agency for a development project that has been approved by the lead agency to approve or disapprove the development project within whichever of the following periods of time is longer: a) Within 90 days from the date on which the lead agency has approved the project; or, b) Within 90 days of the date on which the completed application for the development project has been received and accepted as complete by that responsible agency. This bill is sponsored by the California Apartment Association. 2)Author's Statement. According to the author, "California is in the midst of an unprecedented housing crisis caused by a severe lack of new housing construction, both market rate and affordable. In its most recent report on housing, the Legislative Analyst's Office (LAO) stressed that facilitating AB 2180 Page 3 more private housing development was needed to make housing more affordable for low-income Californians. Unfortunately, the local and state approval processes for new housing construction are frequently slow and cumbersome. "AB 2180 seeks to expedite the housing construction permit approval process by reducing the time for a lead agency to approve a housing project from 180 to 120 days. The bill still ensures that purely affordable housing projects continue to get the same 90 day approval process. In addition, AB 2180 reduces the approval process for any other responsible public agencies from 180 days to 90 days for all types of housing developments. AB 2180 will ensure that badly needed housing projects move through the building approval process faster. It will not only reduce the amount of time, but will also reduce costs and other delays that can be associated with a lengthy approval process. AB 2180 is a modest, yet important step towards addressing California's severe housing shortage." 3)Background. The Permit Streamlining Act applies to all public agencies, including charter cities, and was adopted to ensure that permit applicants for projects are not subjected to protracted and unjustified governmental delays in the processing of the applications for development projects. The Legislature, in enacting the Permit Streamlining Act, declared that "there is a statewide need to ensure clear understanding of the specific requirements which must be met in connection with the approval of development projects and to expedite decisions on such projects." Submittal of a project application is the first step in the streamlined permitting process. Within 30 calendar days of receiving an application, a city is required to respond to the applicant in writing with the determination of whether the application is complete and accepted for filing. If the application is deemed complete, the city proceeds with the evaluation of the project, but if the application is incomplete, the city is required to indicate in detail the deficiencies in the application. AB 2180 Page 4 All deadlines under the Permit Streamlining Act begin from the day the application is accepted as complete or deemed complete. The completion date also starts the clock running on processing the application. If a city is acting as the lead agency for a project for which an EIR is prepared, then the city must approve or disapprove the project within 180 days from the date of the EIR's certification. The Act specifies other time lines for approval or disapproval by the public agency, in coordination with specific California Environmental Quality Act (CEQA) actions, like whether a project is exempt from CEQA, the adoption of a negative declaration, or the certification of an EIR. The Act also contains timelines for approval of a development project for a responsible agency, once the project has been approved by the lead agency. "Development project" is defined as either a) residential units only; or, b) mixed-use developments consisting of residential and nonresidential uses in which the nonresidential uses are less than 50% of the total square footage of the development and are limited to neighborhood commercial uses and to the first floor of buildings that are two or more stories. If approval or disapproval of a project does not occur within these deadlines, the project shall be deemed approved provided the prescribed public notice requirements have been met. 4)Arguments in Support. Supporters argue that the bill will ensure that badly needed housing projects move through the building approval process faster, thus reducing costs and other delays that can be associated with a lengthy approval process. 5)Arguments in Opposition. None on file. Analysis Prepared by: Debbie Michel / L. GOV. / (916) 319-3958 FN: AB 2180 Page 5 0004409