BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2208


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          Date of Hearing:  May 11, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2208 (Santiago) - As Amended April 4, 2016


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          |Policy       |Housing and Community          |Vote:|7 - 0        |
          |Committee:   |Development                    |     |             |
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          |             |Local Government               |     |8 - 0        |
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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:  This bill adds to the list of the types of sites that  
          a local government can identify as suitable for residential  
          development in their housing element.   Specifically, this bill:  
           










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          1)Adds the following to the list of "land suitable for  
            residential development" 


             a)   Buildings owned or under the control of a city or  
               county, zoned for residential use and capable of having  
               residential developments constructed above the existing  
               building;


             b)   Buildings owned or under the control of a city or a  
               county and zoned for nonresidential use that can be rezoned  
               for residential use and are capable of having residential  
               developments constructed above the building;


             c)   Underutilized sites zoned for residential use; and 


             d)   Underutilized sites zoned for nonresidential use that  
               allow residential development. 


          1)Defines "underutilized sites" to mean properties or portions  
            of a property that are used only at irregular periods or  
            intermittently by the accountable agency of the local  
            government, or a property that is being used for the  
            accountable agency's current program purposes that can be  
            satisfied with only a portion of the property.  


          FISCAL EFFECT:


          No state fiscal impact.  Although local costs to inventory  
          existing sites and make suitability determinations could be  
          substantial, local agencies have the authority to levy services  
          charges or fees for housing element related costs and thus, any  
          local costs are not reimbursable. 








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          COMMENTS:


          1)Purpose. According to the author, "In many urban, dense areas,  
            there is a distinct lack of land that can be used for  
            affordable housing.  In California's largest urban areas, and  
            those where land costs are the highest, it is particularly  
            important that local governments and developers both think  
            outside the box on how to use land and space more effectively.  
             This bill takes an important step in this direction by  
            requiring that local governments specifically consider  
            non-traditional spaces in their property surveys for housing.  
            This bill requires local governments to include underutilized  
            land, and available air rights when surveying property that  
            may be applicable for use in affordable housing as a part of  
            their Housing Element." 
          


          2)Background. In preparing its housing element, a city or county  
            must show how it plans to accommodate its share of the  
            regional housing needs assessment (RHNA).  The housing element  
            must include an inventory of sites already zoned for housing.   
            If a community does not have enough sites within its existing  
            inventory of residentially zoned land to accommodate its  
            entire RHNA, then the community must adopt a program to rezone  
            land within the first three years of the planning period. 





            Cities and counties are required to demonstrate that sites are  
            adequate to accommodate housing for each income group based on  
            the zoning after taking into consideration individual site  
            factors, such as property size, existing uses, environmental  
            constraints, and economic constraints.  With respect to the  








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            zoning, density can be used as a proxy for affordability.   
            Jurisdictions may establish the adequacy of a site for very  
            low- or low-income housing by showing that it is zoned at the  
            "default" density (also referred to as the Mullin density).  
            These densities range from 10 to 30 units per acre depending  
            on the type of jurisdiction.  Jurisdictions may also include  
            sites zoned at lower densities by providing an analysis of how  
            the lower density can accommodate the need for affordable  
            housing.  


            This bill would add underutilized sites and public buildings  
            that are capable of having residential developments  
            constructed above the existing structure to the types of sites  
            that can be identified to accommodate the jurisdictions' share  
            of RHNA.  


          3)Arguments in Support.  Supporters (cities) argue that the  
            expansion in the bill will provide cities additional  
            flexibility in meeting their regional housing needs by  
            identifying a greater number of sites where housing can be  
            built.


          4)Arguments in Opposition.  According to the American Planning  
            Association, California Chapter, "the requirement to assess  
            the potential addition of housing on top of existing public  
            facilities isn't viable. In order to add additional floors to  
            an existing operating public facility, the facility must be  
            built with the knowledge or potential for adding housing so  
            that the structure below the housing meets code requirements  
            to carry the weight and height of the added housing  
            development."  













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            There are also concerns that the definition of "underutilized"  
            and the public buildings on which housing can be built above  
            is not adequately developed in the bill and could result in  
            sites not suitable for residential development being included  
            in the jurisdiction's housing element.   


          5)Related Legislation.  This is one of six Assembly bills  
            addressing density bonus issues before this committee today.


             a)   AB 1934 (Santiago) creates a density bonus for  
               commercial developers that partner with an affordable  
               housing developer to construct a mixed-used development.


             b)   AB 2299 (Bloom) requires, instead of allows, a local  
               agency to, by ordinance, provide for the creation of second  
               units in single-family and multifamily residential zones,  
               and makes a number of other changes specifying what is  
               required to be in the ordinance.  


             c)   AB 2442 (Holden) requires local agencies to grant a  
               density bonus when an applicant for a housing development  
               agrees to construct housing for transitional foster youth,  
               disabled veterans, or homeless persons.


             d)   AB 2501 (Bloom and Low) makes a number of changes to  
               density bonus law.


             e)   AB 2556 (Nazarian) requires a jurisdiction, in cases  
               where a proposed development is replacing existing  
               affordable housing units, to adopt a rebuttable presumption  
               regarding the number and type of affordable housing units  
               necessary for density bonus eligibility.  









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          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081