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
          
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          |Version: June 23, 2016          |Policy Vote: T. & H. 11 - 0     |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 1, 2016    |Consultant: Mark McKenzie       |
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          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  







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            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: 








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           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.








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