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