Amended in Senate June 23, 2016

Amended in Assembly June 1, 2016

Amended in Assembly April 4, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2208

Introduced by Assembly Member Santiago

(Coauthor: Assembly Member Steinorth)

February 18, 2016

An act to amend Section 65583.2 of the Government Code, and to amend Section 50459 of the Health and Safety Code, relating to housing.

LEGISLATIVE COUNSEL’S DIGEST

AB 2208, as amended, Santiago. Local planning: housing element: inventory of land for residential development.

Existing law, the Planning and Zoning Law, requires a city or county to adopt a comprehensive, long-term general plan for the physical development of the city or the county and of any land outside its boundaries that bears relation to its planning. That law requires the general plan to contain specified mandatory elements, including a housing element. Existing law requires the housing element to contain an inventory of land suitable for residential development, as defined, and requires that inventory to be used to identify sites that can be developed for housing within the planning period and that are sufficient to provide for the jurisdiction’s share of the regional housing need for all income levels.

This bill would revise the definition of land suitable for residential development to include above sites owned or leased by a city, county, or city and county. By imposing new duties upon local agencies with respect to the housing element of the general plan, this bill would impose a state-mandated local program.

begin insert

This bill would also require, until December 31, 2023, the department to provide guidance to local governments to properly survey, detail, and account for sites listed pursuant to a requirement that the city or county consider the above-described guidelines for the preparation of housing elements. The bill would require the department to provide this guidance for purposes of the requirement that a city’s or county’s inventory of land suitable for residential development be used to identify sites that can be developed and provide for the jurisdiction’s share of the regional housing need for all income levels, as specified.

end insert

Existing law authorizes the Department of Housing and Community Development to adopt and, from time to time, revise guidelines for the preparation of housing elements and a document that meets specified requirements.

This bill would require the department to adopt and revise, as necessary, these guidelines.

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 reimbursement.

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.  

Section 65583.2 of the Government Code, as
amended by Section 232 of Chapter 303 of the Statutes of 2015,
is amended to read:

65583.2.  

(a)  A city’s or county’s inventory of land suitable
for residential development pursuant to paragraph (3) of
subdivision (a) of Section 65583 shall be used to identify sites that
can be developed for housing within the planning period and that
are sufficient to provide for the jurisdiction’s share of the regional
housing need for all income levels pursuant to Section 65584. As
used in this section, “land suitable for residential development”
includes all of the following:

(1) Vacant sites zoned for residential use.

(2) Vacant sites zoned for nonresidential use that allows
residential development.

(3) Residentially zoned sites that are capable of being developed
at a higher density, including above sites owned or leased by a
city, county, or city and county.

(4) Sites zoned for nonresidential use that can be redeveloped
for, and as necessary, rezoned for, residential use, including above
sites owned or leased by a city, county, or city and county.

(b) The inventory of land shall include all of the following:

(1) A listing of properties by parcel number or other unique
reference.

(2) The size of each property listed pursuant to paragraph (1),
and the general plan designation and zoning of each property.

(3) For nonvacant sites, a description of the existing use of each
property.

(4) A general description of any environmental constraints to
the development of housing within the jurisdiction, the
documentation for which has been made available to the
jurisdiction. This information need not be identified on a
site-specific basis.

(5) A general description of existing or planned water, sewer,
and other dry utilities supply, including the availability and access
to distribution facilities. This information need not be identified
on a site-specific basis.

(6) Sites identified as available for housing for above
moderate-income households in areas not served by public sewer
systems. This information need not be identified on a site-specific
basis.

(7) A map that shows the location of the sites included in the
inventory, such as the land use map from the jurisdiction’s general
plan, for reference purposes only.

(c) Based on the information provided in subdivision (b), a city
or county shall determine whether each site in the inventory can
accommodate some portion of its share of the regional housing
need by income level during the planning period, as determined
pursuant to Section 65584. The analysis shall determine whether
the inventory can provide for a variety of types of housing,
including multifamily rental housing, factory-built housing,
mobilehomes, housing for agricultural employees, emergency
shelters, and transitional housing. The city or county shall
determine the number of housing units that can be accommodated
on each site as follows:

(1) If local law or regulations require the development of a site
at a minimum density, the department shall accept the planning
agency’s calculation of the total housing unit capacity on that site
based on the established minimum density. If the city or county
does not adopt a law or regulations requiring the development of
a site at a minimum density, then it shall demonstrate how the
number of units determined for that site pursuant to this subdivision
will be accommodated.

(2) The number of units calculated pursuant to paragraph (1)
shall be adjusted as necessary, based on the land use controls and
site improvements requirement identified in paragraph (5) of
subdivision (a) of Section 65583.

(3) For the number of units calculated to accommodate its share
of the regional housing need for lower income households pursuant
to paragraph (2), a city or county shall do either of the following:

(A) Provide an analysis demonstrating how the adopted densities
accommodate this need. The analysis shall include, but is not
limited to, factors such as market demand, financial feasibility, or
information based on development project experience within a
zone or zones that provide housing for lower income households.

(B) The following densities shall be deemed appropriate to
accommodate housing for lower income households:

(i) For an incorporated city within a nonmetropolitan county
and for a nonmetropolitan county that has a micropolitan area:
sites allowing at least 15 units per acre.

(ii) For an unincorporated area in a nonmetropolitan county not
included in clause (i): sites allowing at least 10 units per acre.

(iii) For a suburban jurisdiction: sites allowing at least 20 units
per acre.

(iv) For a jurisdiction in a metropolitan county: sites allowing
at least 30 units per acre.

(d) For purposes of this section, a metropolitan county,
nonmetropolitan county, and nonmetropolitan county with a
micropolitan area shall be as determined by the United States
Census Bureau. A nonmetropolitan county with a micropolitan
area includes the following counties: Del Norte, Humboldt, Lake,
Mendocino, Nevada, Tehama, and Tuolumne and other counties
as may be determined by the United States Census Bureau to be
nonmetropolitan counties with micropolitan areas in the future.

(e) (1) Except as provided in paragraph (2), a jurisdiction shall
be considered suburban if the jurisdiction does not meet the
requirements of clauses (i) and (ii) of subparagraph (B) of
paragraph (3) of subdivision (c) and is located in a Metropolitan
Statistical Area (MSA) of less than 2,000,000 in population, unless
that jurisdiction’s population is greater than 100,000, in which
case it shall be considered metropolitan. A county, not including
the City and County of San Francisco, shall be considered suburban
unless the county is in an MSA of 2,000,000 or greater in
population in which case the county shall be considered
metropolitan.

(2) (A) (i) Notwithstanding paragraph (1), if a county that is
in the San Francisco-Oakland-Fremont California MSA has a
population of less than 400,000, that county shall be considered
suburban. If this county includes an incorporated city that has a
population of less than 100,000, this city shall also be considered
suburban. This paragraph shall apply to a housing element revision
cycle, as described in subparagraph (A) of paragraph (3) of
subdivision (e) of Section 65588, that is in effect from July 1,
2014, to December 31, 2023, inclusive.

(ii) A county subject to this subparagraph shall utilize the sum
existing in the county’s housing trust fund as of June 30, 2013, for
the development and preservation of housing affordable to low- and
very low income households.

(B) A jurisdiction that is classified as suburban pursuant to this
paragraph shall report to the Assembly Committee on Housing
and Community Development, the Senate Committee on
Transportation and Housing, and the Department of Housing and
Community Development regarding its progress in developing
low- and very low income housing consistent with the requirements
of Section 65400. The report shall be provided twice: once, on or
before December 31, 2019, which report shall address the initial
four years of the housing element cycle, and a second time, on or
before December 31, 2023, which report shall address the
subsequent four years of the housing element cycle and the cycle
as a whole. The reports shall be provided consistent with the
requirements of Section 9795.

(f) A jurisdiction shall be considered metropolitan if the
jurisdiction does not meet the requirements for “suburban area”
above and is located in an MSA of 2,000,000 or greater in
population, unless that jurisdiction’s population is less than 25,000
in which case it shall be considered suburban.

(g) For sites described in paragraph (3) of subdivision (b), the
city or county shall specify the additional development potential
for each site within the planning period and shall provide an
explanation of the methodology used to determine the development
potential. The methodology shall consider factors including the
extent to which existing uses may constitute an impediment to
additional residential development, development trends, market
conditions, and regulatory or other incentives or standards to
encourage additional residential development on these sites.

(h) The program required by subparagraph (A) of paragraph (1)
of subdivision (c) of Section 65583 shall accommodate 100 percent
of the need for housing for very low and low-income households
allocated pursuant to Section 65584 for which site capacity has
not been identified in the inventory of sites pursuant to paragraph
(3) of subdivision (a) on sites that shall be zoned to permit
owner-occupied and rental multifamily residential use by right
during the planning period. These sites shall be zoned with
minimum density and development standards that permit at least
16 units per site at a density of at least 16 units per acre in
jurisdictions described in clause (i) of subparagraph (B) of
paragraph (3) of subdivision (c) and at least 20 units per acre in
jurisdictions described in clauses (iii) and (iv) of subparagraph (B)
of paragraph (3) of subdivision (c). At least 50 percent of the very
low and low-income housing need shall be accommodated on sites
designated for residential use and for which nonresidential uses
or mixed-uses are not permitted, except that a city or county may
accommodate all of the very low and low-income housing need
on sites designated for mixed uses if those sites allow 100 percent
residential use and require that residential use occupy 50 percent
of the total floor area of a mixed-use project.

(i) For purposes of this section and Section 65583, the phrase
“use by right” shall mean that the local government’s review of
the owner-occupied or multifamily residential use may not require
a conditional use permit, planned unit development permit, or other
discretionary local government review or approval that would
constitute a “project” for purposes of Division 13 (commencing
with Section 21000) of the Public Resources Code. Any subdivision
of the sites shall be subject to all laws, including, but not limited
to, the local government ordinance implementing the Subdivision
Map Act. A local ordinance may provide that “use by right” does
not exempt the use from design review. However, that design
review shall not constitute a “project” for purposes of Division 13
(commencing with Section 21000) of the Public Resources Code.
Use by right for all rental multifamily residential housing shall be
provided in accordance with subdivision (f) of Section 65589.5.

(j) Notwithstanding any other provision of this section, within
one-half mile of a Sonoma-Marin Area Rail Transit station, housing
density requirements in place on June 30, 2014, shall apply.

(k) For purposes of subdivisions (a) and (b), the department
shall provide guidance to local governments to properly survey,
detail, and account for sites listed pursuant to Section 65585.

(l) This section shall remain in effect only until December 31,
2023, and as of that date is repealed, unless a later enacted statute,
that is enacted before December 31, 2023, deletes or extends that
date.

SEC. 2.  

Section 65583.2 of the Government Code, as added
by begin delete Chapter 875 end delete begin insert Section 2.5 end insert of begin delete the Statutes end delete begin insert Chapter 875 end insert of begin insert the
Statutes of end insert 2014, is amended to read:

65583.2.  

(a) A city’s or county’s inventory of land suitable
for residential development pursuant to paragraph (3) of
subdivision (a) of Section 65583 shall be used to identify sites that
can be developed for housing within the planning period and that
are sufficient to provide for the jurisdiction’s share of the regional
housing need for all income levels pursuant to Section 65584. As
used in this section, “land suitable for residential development”
includes all of the following:

(1) Vacant sites zoned for residential use.

(2) Vacant sites zoned for nonresidential use that allows
residential development.

(3) Residentially zoned sites that are capable of being developed
at a higher density, including above sites owned or leased by a
city, county, or city and county.

(4) Sites zoned for nonresidential use that can be redeveloped
for, and, as necessary, rezoned for, residential use, including above
sites owned or leased by a city, county, or city and county.

(b) The inventory of land shall include all of the following:

(1) A listing of properties by parcel number or other unique
reference.

(2) The size of each property listed pursuant to paragraph (1),
and the general plan designation and zoning of each property.

(3) For nonvacant sites, a description of the existing use of each
property.

(4) A general description of any environmental constraints to
the development of housing within the jurisdiction, the
documentation for which has been made available to the
jurisdiction. This information need not be identified on a
site-specific basis.

(5) A general description of existing or planned water, sewer,
and other dry utilities supply, including the availability and access
to distribution facilities. This information need not be identified
on a site-specific basis.

(6) Sites identified as available for housing for above
moderate-income households in areas not served by public sewer
systems. This information need not be identified on a site-specific
basis.

(7) A map that shows the location of the sites included in the
inventory, such as the land use map from the jurisdiction’s general
plan for reference purposes only.

(c) Based on the information provided in subdivision (b), a city
or county shall determine whether each site in the inventory can
accommodate some portion of its share of the regional housing
need by income level during the planning period, as determined
pursuant to Section 65584. The analysis shall determine whether
the inventory can provide for a variety of types of housing,
including multifamily rental housing, factory-built housing,
mobilehomes, housing for agricultural employees, emergency
shelters, and transitional housing. The city or county shall
determine the number of housing units that can be accommodated
on each site as follows:

(1) If local law or regulations require the development of a site
at a minimum density, the department shall accept the planning
agency’s calculation of the total housing unit capacity on that site
based on the established minimum density. If the city or county
does not adopt a law or regulations requiring the development of
a site at a minimum density, then it shall demonstrate how the
number of units determined for that site pursuant to this subdivision
will be accommodated.

(2) The number of units calculated pursuant to paragraph (1)
shall be adjusted as necessary, based on the land use controls and
site improvements requirement identified in paragraph (5) of
subdivision (a) of Section 65583.

(3) For the number of units calculated to accommodate its share
of the regional housing need for lower income households pursuant
to paragraph (2), a city or county shall do either of the following:

(A) Provide an analysis demonstrating how the adopted densities
accommodate this need. The analysis shall include, but is not
limited to, factors such as market demand, financial feasibility, or
information based on development project experience within a
zone or zones that provide housing for lower income households.

(B) The following densities shall be deemed appropriate to
accommodate housing for lower income households:

(i) For an incorporated city within a nonmetropolitan county
and for a nonmetropolitan county that has a micropolitan area:
sites allowing at least 15 units per acre.

(ii) For an unincorporated area in a nonmetropolitan county not
included in clause (i): sites allowing at least 10 units per acre.

(iii) For a suburban jurisdiction: sites allowing at least 20 units
per acre.

(iv) For a jurisdiction in a metropolitan county: sites allowing
at least 30 units per acre.

(d) For purposes of this section, a metropolitan county,
nonmetropolitan county, and nonmetropolitan county with a
micropolitan area shall be as determined by the United States
Census Bureau. A nonmetropolitan county with a micropolitan
area includes the following counties: Del Norte, Humboldt, Lake,
Mendocino, Nevada, Tehama, and Tuolumne and other counties
as may be determined by the United States Census Bureau to be
nonmetropolitan counties with micropolitan areas in the future.

(e) A jurisdiction shall be considered suburban if the jurisdiction
does not meet the requirements of clauses (i) and (ii) of
subparagraph (B) of paragraph (3) of subdivision (c) and is located
in a Metropolitan Statistical Area (MSA) of less than 2,000,000
in population, unless that jurisdiction’s population is greater than
100,000, in which case it shall be considered metropolitan. A
county, not including the City and County of San Francisco, shall
be considered suburban unless the county is in an MSA of
2,000,000 or greater in population in which case the county shall
be considered metropolitan.

(f) A jurisdiction shall be considered metropolitan if the
jurisdiction does not meet the requirements for “suburban area”
above and is located in an MSA of 2,000,000 or greater in
population, unless that jurisdiction’s population is less than 25,000
in which case it shall be considered suburban.

(g) For sites described in paragraph (3) of subdivision (b), the
city or county shall specify the additional development potential
for each site within the planning period and shall provide an
explanation of the methodology used to determine the development
potential. The methodology shall consider factors including the
extent to which existing uses may constitute an impediment to
additional residential development, development trends, market
conditions, and regulatory or other incentives or standards to
encourage additional residential development on these sites.

(h) The program required by subparagraph (A) of paragraph (1)
of subdivision (c) of Section 65583 shall accommodate 100 percent
of the need for housing for very low and low-income households
allocated pursuant to Section 65584 for which site capacity has
not been identified in the inventory of sites pursuant to paragraph
(3) of subdivision (a) on sites that shall be zoned to permit
owner-occupied and rental multifamily residential use by right
during the planning period. These sites shall be zoned with
minimum density and development standards that permit at least
16 units per site at a density of at least 16 units per acre in
jurisdictions described in clause (i) of subparagraph (B) of
paragraph (3) of subdivision (c) and at least 20 units per acre in
jurisdictions described in clauses (iii) and (iv) of subparagraph (B)
of paragraph (3) of subdivision (c). At least 50 percent of the very
low and low-income housing need shall be accommodated on sites
designated for residential use and for which nonresidential uses
or mixed-uses are not permitted, except that a city or county may
accommodate all of the very low and low-income housing need
on sites designated for mixed uses if those sites allow 100 percent
residential use and require that residential use occupy 50 percent
of the total floor area of a mixed-use project.

(i) For purposes of this section and Section 65583, the phrase
“use by right” shall mean that the local government’s review of
the owner-occupied or multifamily residential use may not require
a conditional use permit, planned unit development permit, or other
discretionary local government review or approval that would
constitute a “project” for purposes of Division 13 (commencing
with Section 21000) of the Public Resources Code. Any subdivision
of the sites shall be subject to all laws, including, but not limited
to, the local government ordinance implementing the Subdivision
Map Act. A local ordinance may provide that “use by right” does
not exempt the use from design review. However, that design
review shall not constitute a “project” for purposes of Division 13
(commencing with Section 21000) of the Public Resources Code.
Use by right for all rental multifamily residential housing shall be
provided in accordance with subdivision (f) of Section 65589.5.

begin delete

(k) For purposes of subdivisions (a) and (b), the department
shall provide guidance to local governments to properly survey,
detail, and account for sites listed pursuant to Section 65585.

end delete begin delete

(l)

end delete

begin insert (k) end insert  This section shall become operative on December 31, 2023.

SEC. 3.  

Section 50459 of the Health and Safety Code is
amended to read:

50459.  

(a)  The department shall adopt, and revise, as
necessary, guidelines for any of the following:

(1)  The preparation of housing elements required by Section
65302 and Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code.

(2)  The preparation of a document that meets both of the
following sets of requirements:

(A)  Requirements for housing elements pursuant to Section
65302 and Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code.

(B)  Requirements for the Consolidated Submissions for
Community Planning and Development Programs required by Part
91 of Title 24 of the Code of Federal Regulations.

(b)  The department shall review housing elements and
amendments for substantial compliance with Article 10.6
(commencing with Section 65580) of Chapter 3 of Division 1 of
Title 7 of the Government Code and report its findings pursuant
to Section 65585 of the Government Code.

(c)  On or before April 1, 1995, and annually thereafter, the
department shall report to the Legislature on the status of housing
elements and the extent to which they comply with the
requirements of Article 10.6 (commencing with Section 65580)
of Chapter 3 of Division 1 of Title 7 of the Government Code. The
department shall also make this report available to any other public
agency, group, or person who requests a copy.

(d)  The department may, in connection with any loan or grant
application submitted to the agency, require submission to the
department for review of any housing element and any local
housing assistance plan adopted pursuant to the Housing and
Community Development Act of 1974 (Public Law 93-383).

SEC. 4.  

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.