BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 2208           Hearing Date:    6/21/2016
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          |Author:   |Santiago                                              |
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          |Version:  |6/1/2016                                              |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Alison Dinmore                                        |
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          SUBJECT:  Local planning:  housing element:  inventory of land  
          for residential development


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

          ANALYSIS:
          
          Existing law:
          
          1)  Requires cities and counties, under existing planning and  
            zoning law, to prepare and adopt a general plan, including a  
            housing element, to guide the future growth of a community.   
            The housing element shall consist of an identification and  
            analysis of existing and projected housing needs and a  
            statement of goals, policies objectives, financial resources  
            and scheduled programs for the preservation, improvement, and  
            development of housing. 

          2)  Requires the housing element to identify adequate sites for  
            housing, including rental housing, factory-built housing,  
            mobilehomes, and emergency shelters and shall make adequate  
            provision for the existing and projected needs of all economic  
            segments of the community.

          3)  Requires a local government to inventory land suitable for  
            residential development to identify sites that can be  
            developed to meet the jurisdiction's regional housing needs  







          AB 2208 (Santiago)                                 Page 2 of ?
          
          
            for all income levels.  Provides that "land suitable for  
            residential development" includes all of the following:

             a)   Vacant sites zoned for residential use
             b)   Vacant sites zoned for nonresidential use that allow  
               residential development
             c)   Residentially zoned sites that are capable of being  
               developed at a higher density
             d)   Sites zoned for nonresidential use that can be  
               redeveloped for, and as necessary, rezoned for, residential  
               use

          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 (e.g., space above existing buildings) owned or  
               leased by a city, county or city and county.
             b)   Provides, for non-residentially zoned sites that can be  
               redeveloped for residential use, that this includes above  
               sites (e.g., space above existing buildings) owned or  
               leased by a city, county, or city and county.  

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

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

          COMMENTS:

          1)Purpose of the bill.  According to the author, California's  
            housing costs have far outpaced those of other states in the  
            last half century.  As of 2015, the typical California home  
            costs $440,000 - two and half times the national average, and  
            the average monthly rent in California is $1,240 - about 50%  
            higher than in other states.   It is possible to offset the  
            effects of high land costs through more dense development.  In  
            a sense, an area that acquires potential for air rights  
            development increases the supply of buildable land.








          AB 2208 (Santiago)                                 Page 3 of ?
          
          

            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.  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.  Specifically, this  
            bill requires local governments to include available air  
            rights when surveying property that may be applicable for use  
            in affordable housing as a part of their Housing Element.
          
          2)Housing Element background.  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 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  








          AB 2208 (Santiago)                                 Page 4 of ?
          
          
            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. 

          3)Is this bill really necessary?  Existing law permits local  
            jurisdictions to identify sites that are capable of being  
            developed at a higher density and sites zoned for  
            nonresidential use that can be redeveloped for residential  
            use.  This bill would elaborate that this "higher density"  
            includes above sites, or sites that could be developed in the  
            airspace above an existing development, that is owned or  
            leased by a city, county, or city and county.  The idea is to  
            highlight that locals can build more dense housing.  In fact,  
            HCD already reads this provision to permit local jurisdictions  
            to include "above sites" and considers these sites in local  
            housing elements as land suitable for residential development.  
             Given that the goal that this bill attempts to accomplish is  
            already covered in existing law, the committee may wish to  
            consider whether this bill is necessary.
          
          4)Unintended consequences.   This bill would add above sites of  
            publicly owned or leased buildings to the types of sites that  
            can be identified to accommodate a local jurisdiction's share  
            of the RHNA.  The committee may wish to consider whether local  
            jurisdictions should be able to count these sites towards the  
            RHNA if constructing residential developments above existing  
            buildings may not be feasible and would not result in  
            additional housing being built on those sites, to the  
            detriment of identifying other feasible sites.  
          
          5)Department of Redundancy Department.  The bill in its current  
            form requires in two separate provisions for HCD to provide  
            guidance to local governments to property survey, detail, and  
            account for sites listed pursuant to Section 65585.  The  
            author will agree to remove the second reference on page 12,  
            lines 11-13 in committee. 
          








          AB 2208 (Santiago)                                 Page 5 of ?
          
          
          Assembly Votes:

               Floor:    78-0
               Appr:     19-1
               L.Gov:    8-0
               H&CD:     7-0
          
          Related Legislation:
          
          AB 2864 (Daly) - authorizes a "housing organization," as  
          defined, to enforce the Housing Accountability Act (HAA).  This  
          bill will also be heard in this committee.

          AB 2865 (Lopez) - requires a local planning agency staff to  
          collect and compile public comments and provide them to each  
          member of the legislative body prior to the adoption of the  
          housing element.  This bill will also be heard in this  
          committee.

          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  Yes


           POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          June 15, 2016.)
          
            SUPPORT:  

          California Apartment Association
          California Council for Affordable Housing
          City of Los Angeles
          League of California Cities

          OPPOSITION:

          None received


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