BILL ANALYSIS Ó AB 2208 Page 1 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 Page 2 | | |Quirk, Santiago, | | | | |Wagner, Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------- 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 AB 2208 Page 3 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 AB 2208 Page 4 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 AB 2208 Page 5 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