BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2208


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          ASSEMBLY THIRD READING


          AB  
          2208 (Santiago)


          As Amended  April 4, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Housing         |7-0  |Chiu, Steinorth,      |                    |
          |                |     |Burke, Chau, Beth     |                    |
          |                |     |Gaines, Lopez, Mullin |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Local           |8-0  |Eggman, Waldron,      |                    |
          |Government      |     |Alejo, Bonilla, Chiu, |                    |
          |                |     |Cooley,               |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Beth Gaines, Linder   |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |19-1 |Gonzalez, Bloom,      |Bigelow             |
          |                |     |Bonilla, Bonta,       |                    |
          |                |     |Calderon, Chang,      |                    |
          |                |     |McCarty, Eggman,      |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Chau, Holden, |                    |
          |                |     |Jones, Obernolte,     |                    |








                                                                    AB 2208


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          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          SUMMARY:  Adds to the list of the types of sites that a local  
          government can identify as suitable for residential development  
          in the housing element.  Specifically, this bill:  


          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  








                                                                    AB 2208


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            accountable agency's current program purposes that can be  
            satisfied with only a portion of the property.  


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, 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. 


          COMMENTS:  


          Every local government is required to prepare a housing element  
          as part of its general plan.  The housing element process starts  
          when Department of Housing and Community Development (HCD)  
          determines the number of new housing units a region is projected  
          to need at all income levels (very low-, low-, moderate-, and  
          above-moderate income) over the course of the next housing  
          element planning period to accommodate population growth and  
          overcome existing deficiencies in the housing supply.  This  
          number is known as the regional housing needs assessment (RHNA).  
           The COG for the region, or HCD for areas with no COG, then  
          assigns a share of the RHNA number to every city and county in  
          the region based on a variety of factors.


          In preparing its housing element, a city or county must show how  
          it plans to accommodate its share of the 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.  











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          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  
          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.  


          Purpose of this bill:  According to the author, "In many urban,  
          dense areas, there is a distinct lack of land that can be used  
          for affordable housing.  In fact, the City of Los Angeles is  
          about to hit its development limit.  The city is now zoned to  
          house, at most, 4.2 million people.  The current population is  
          3.9 million.  There were 28,000 new housing starts in the Los  
          Angeles metro area last year (population 13 million), versus  
          64,000 in Houston (population 2 million).  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.  AB 2208 takes an important step in this  
          direction by requiring that local governments specifically  
          consider non-traditional spaces in their property surveys for  
          housing.  AB 2208 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." 








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          Assembly Housing and Community Development Committee Comments:


          The purpose of requiring a local government to identify land  
          suitable for residential development is to ensure that there are  
          enough sites that are available to meet the local jurisdictions  
          RHNA.  The definition of underutilized and public buildings on  
          which housing can be built above in this bill may not be  
          adequately defined and could result in sites not suitable for  
          residential development being included in the jurisdictions  
          housing element.   




          Analysis Prepared by:                                             
                          Lisa Engel / H. & C.D. / (916) 319-2085  FN:  
          0002977