BILL ANALYSIS Ó AB 2208 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2208 (Santiago) As Amended August 15, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |78-0 |(June 2, 2016) |SENATE: |38-0 |(August 18, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: H. & C.D. SUMMARY: Adds to the list of the types of sites that a local government can identify as suitable for residential development in the housing element. Specifically, 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 owned or leased by a city, county, or city and county. b) Provides, for sites zoned for nonresidential use that AB 2208 Page 2 can be redeveloped for, and as necessary, rezoned for, residential use, that this includes above sites 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 governments to properly survey, detail, and account for sites listed in the housing element. 3)States that no reimbursement is necessary because a local agency has the authority to levy service charges, fees, or assessment sufficient to pay for the program or level of service mandated by this act. The Senate amendments 1)Delete a provision that would have required, rather than authorized, HCD to adopt and revise guidelines for the preparation of housing elements. 2)Make technical, clarifying changes. FISCAL EFFECT: According to the Senate Appropriations Committee: 1)Minor and absorbable HCD costs to provide specified guidance. (General Fund) 2)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 state-reimbursable because local agencies have the authority to levy fees and charges to offset costs associated with local planning requirements. AB 2208 Page 3 COMMENTS: 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 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 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. This bill would add the airspace "above sites" of publicly owned AB 2208 Page 4 or leased buildings to the types of sites that can be identified to accommodate a jurisdiction's share of the RHNA, and requires HCD to provide guidance to local governments to properly survey, detail, and account for sites listed in the housing element. Senate amendments delete a provision that would have required, rather than authorized, HCD to adopt and revise guidelines for the preparation of housing elements. It may be worthwhile to consider whether cities should be able to count "above sites" toward the RHNA, if constructing residential developments above existing buildings is not truly feasible and would not result in additional housing units being built on those sites. Purpose of this bill: According to the author, "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. AB 2208 takes an important step in this direction by requiring that local governments specifically consider non-traditional spaces in their property surveys for housing." Analysis Prepared by: Rebecca Rabovsky/ H. & C.D. / (961) 319-2085 FN: 0004324 AB 2208 Page 5