BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2208


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          ASSEMBLY THIRD READING


          AB  
          2208 (Santiago)


          As Amended  June 1, 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)   Provides, for residentially zoned sites that are capable  
               of being developed at a higher density, that this includes  
               above sites owned or leased by a city, county, or city and  
               county.


             b)   Provides, for sites zoned for nonresidential use that  
               can be redeveloped for, and as necessary, rezoned for,  
               residential use, that this includes above sites owned or  
               leased by a city, county, or city and county.


          2)States that Department of Housing and Community Development  
            (HCD) shall provide guidance to local governments to properly  
            survey, detail, and account for sites listed in the housing  
            element.


          3)Provides that HCD must, not may, adopt and revise as needed,  
            guidelines for the preparation of housing elements.


          4)States that no reimbursement is necessary because a local  








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            agency has the authority to levy service charges, fees, or  
            assessment sufficient to pay for the program or level of  
            service mandated by this act.


          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 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 council of government (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  








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          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  
          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 "above sites" of publicly owned or leased  
          buildings to the types of sites that can be identified to  
          accommodate a jurisdiction's share of the RHNA.  It may be  
          worthwhile to consider whether cities should be able to count  
          these sites toward the RHNA, if constructing residential  
          developments above existing buildings is not truly feasible and  
          would not result in additional housing units being built on  
          those sites.


          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  








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          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." 




          Analysis Prepared by:                                             
                          Rebecca Rabovsky / H. & C.D. / (961) 319-2085     
                                                                  FN:  
          0003377