BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2208 (Santiago) - Local planning: housing element: inventory of land for residential development ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 23, 2016 |Policy Vote: T. & H. 11 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2208 would allow cities and counties to consider specified space above sites owned or leased by those jurisdictions as land that is suitable for residential development for purposes of housing element requirements. The bill would also require, rather than authorize, the Department of Housing and Community Development (HCD) to adopt and revise guidelines for the preparation of housing elements. Fiscal Impact: Ongoing HCD administrative costs of approximately $153,000 annually for staff time to update housing element guidelines any time planning statutes are amended. (General Fund) Unknown local costs by requiring cities and counties to consider new types of sites that could be identified for AB 2208 (Santiago) Page 1 of ? residential development. These costs are not state-reimbursable because local agencies have the authority to levy fees and charges to offset costs associated with local planning requirements. Background: Existing law requires every city and county to prepare and adopt a general plan containing seven mandatory elements, including a housing element. HCD establishes the regional housing needs allocation (RHNA) for each region, which is a determination of the number of new housing units for all specified income levels that will be necessary to accommodate population growth and to overcome existing housing deficiencies over the course of the next housing element cycle. The housing element prepared by a city or county must demonstrate how the jurisdiction plans to accommodate its share of the RHNA. As part of the process, existing law requires cities and counties to inventory land suitable for residential development, which is used to identify sites that can be developed for housing within the planning period that is sufficient to meet the regional housing needs for all income levels. "Land suitable for residential development" includes all of the following: Vacant sites zoned for residential use. Vacant sites zoned for nonresidential use that allows residential development. Residentially zoned sites that are capable of being developed at higher density. Sites zoned for nonresidential use that can be redeveloped and rezoned for residential use, as necessary. Existing law authorizes HCD to adopt, and revise, as necessary, guidelines for the preparation of housing elements, and for the preparation of a document that meets the requirements of both the housing element and specified documentation required under federal regulations. Proposed Law: AB 2208 would, for purposes of the housing element, revise the definition of "land suitable for residential development" to include the following areas: AB 2208 (Santiago) Page 2 of ? The space above sites owned or leased by cities and counties on residentially zoned sites that are capable of being developed at a higher density. The space above sites owned or leased by cities and counties on sites zoned for nonresidential use that can be redeveloped or rezoned for residential use, as necessary. The bill would also require, rather than authorize, HCD to adopt and revise guidelines for the preparation of housing elements, as necessary. In addition, AB 2208 would require HCD to provide guidance to cities and counties to properly survey, detail, and account for sites for purposes of specifying land suitable for residential development until December 31, 2023. Staff Comments: Some densely populated urban areas lack suitable land to provide for expanded housing development that would accommodate projected population growth across all income levels. This bill would provide clarity that cities and counties may also consider the space above sites owned or leased by those jurisdictions for purposes of identifying other land that may be suitable for residential development at a higher density, where such development would be feasible. HCD indicates that the provisions of AB 2208 requiring, rather than authorizing, the department to adopt and revise housing element guidelines, as necessary, would impose mandatory staffing costs on the department of approximately $153,000 annually. The guidelines are currently up to date with existing regulations and statutes, but HCD would be required to update the guidelines to reflect the changes in this bill, and any other statutory changes to housing element law that are enacted this year or in the future. Proposed Author Amendments: The author intends to amend the bill to delete a redundant provision that requires HCD to provide guidance to local governments to properly survey, detail, and account for sites for purposes of specifying land suitable for residential development. Specifically, the author will amend the bill to strike out lines 14-16 on page 7 of the bill. AB 2208 (Santiago) Page 3 of ? -- END --