BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2208


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          2208 (Santiago)


          As Amended  August 15, 2016


          Majority vote


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          |ASSEMBLY:  |78-0  |(June 2, 2016) |SENATE: |38-0  |(August 18,      |
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          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  








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               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.








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          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  








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          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

















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