BILL ANALYSIS                                                                                                                                                                                                    Ó






           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                       AB 2208|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 


                                   THIRD READING 


          Bill No:  AB 2208
          Author:   Santiago (D), et al.
          Amended:  8/15/16 in Senate
          Vote:     21 

           SENATE TRANS. & HOUSING COMMITTEE:  11-0, 6/21/16
           AYES:  Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva,  
            McGuire, Mendoza, Roth, Wieckowski

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/11/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           ASSEMBLY FLOOR:  78-0, 6/2/16 - See last page for vote

           SUBJECT:   Local planning:  housing element:  inventory of land  
                     for residential development


          SOURCE:    Author

          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  








                                                                    AB 2208  
                                                                    Page  2


            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  
            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  
               the airspace 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 the  
               airspace above sites (e.g., space above existing buildings)  
               owned or leased by a city, county, or city and county.  








                                                                    AB 2208  
                                                                    Page  3


          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.

          Comments

          1)Purpose.  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.  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  







                                                                    AB 2208  
                                                                    Page  4


            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  
            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)Unintended consequences.   This bill adds the airspace 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.  An unintended consequence  
            of this bill is that local jurisdictions could count these  
            sites towards the RHNA, even if constructing residential  
            developments above existing buildings may not be feasible.   
            This would result in no additional housing being built on  
            those sites, to the detriment of identifying other feasible  
            sites where housing construction is feasible.  


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes
          
          According to the Senate Appropriations Committee:

           Minor and absorbable HCD costs to provide specified guidance.  
            (General Fund)

           Unknown local costs by requiring cities and counties to  
            consider new types of sites that could be identified for  
            residential development.  These costs are not  







                                                                    AB 2208  
                                                                    Page  5


            state-reimbursable because local agencies have the authority  
            to levy fees and charges to offset costs associated with local  
            planning requirements.


          SUPPORT:   (Verified8/12/16)


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


          OPPOSITION:   (Verified8/12/16)


          None received

          ASSEMBLY FLOOR:  78-0, 6/2/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonta, Brough, Brown, Burke, Calderon, Campos,  
            Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh,  
            Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher,  
            Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez,  
            Gonzalez, Gray, Grove, Hadley, Harper, Roger Hernández,  
            Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine,  
            Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty,  
            Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell,  
            Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas,  
            Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner,  
            Waldron, Weber, Wilk, Williams, Wood, Rendon
          NO VOTE RECORDED:  Bonilla, Gordon

          Prepared by:Alison Dinmore / T. & H. / (916) 651-4121
          8/15/16 20:10:16


                                   ****  END  ****


          








                                                                    AB 2208  
                                                                    Page  6