BILL ANALYSIS Ó AB 2208 Page 1 Date of Hearing: May 11, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2208 (Santiago) - As Amended April 4, 2016 ----------------------------------------------------------------- |Policy |Housing and Community |Vote:|7 - 0 | |Committee: |Development | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Local Government | |8 - 0 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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: AB 2208 Page 2 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. AB 2208 Page 3 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 AB 2208 Page 4 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." AB 2208 Page 5 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. AB 2208 Page 6 Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081