BILL ANALYSIS Ó
AB 2442
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Date of Hearing: April 13, 2016
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
David Chiu, Chair
AB 2442
(Holden) - As Amended March 17, 2016
SUBJECT: Density bonuses
SUMMARY: Requires a city, county, or city and county to grant
one density bonus and concessions and incentives to an applicant
for housing development that includes 10% of the total units of
a housing development for transitional age, foster youth,
disabled veterans, or homeless persons.
EXISTING LAW:
1)Defines a "foster youth" to mean a person who is currently in
foster care, and "former foster youth" means a person who is
an emancipated foster youth and who is up to 24 years of age.
2)Defines "disabled veteran" to mean any veteran who is
currently declared by the United States Veterans
Administration to be 10 percent or more disabled as a result
of service in the armed forces. Proof of such disability shall
be deemed conclusive if it is of record in the United States
Veterans Administration.
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3)Requires all cities and counties to adopt an ordinance that
specifies how they will implement state density bonus law.
4)Requires cities and counties to grant a density bonus when an
applicant for a housing development of five or more units
seeks and agrees to construct a project that will contain at
least any one of the following:
a) Ten percent of the total units for lower income
households;
b) Five percent of the total units of a housing for very
low income households;
c) A senior citizen housing development or mobilehome park;
and,
d) Ten percent of the units in a common-interest
development (CID) for moderate-income households.
1)Requires the city or county to allow an increase in density of
20% over the otherwise maximum allowable residential density
under the applicable zoning ordinance and land use element of
the general plan for low-income, very low-income, or senior
housing, and by five percent for moderate-income housing in a
CID.
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FISCAL EFFECT: Unknown
COMMENTS:
Density bonus law was originally enacted in 1979, but has been
changed numerous times since. The Legislature enacted the
density bonus law to help address the affordable housing
shortage and to encourage development of more low and moderate
income housing units. Density bonus is a tool to encourage the
production of affordable housing used by both market rate and
affordable housing developers. In return for inclusion of
affordable units in a development, developers are given an
increase in density over a city's zoned density and concessions
and incentives. The increase in density and concessions and
incentives are intended to financial support the inclusion of
the affordable units.
All local governments are required to adopt an ordinance that
provides concessions and incentives to developers that seek a
density bonus on top of the city's zoned density in exchange for
including extremely low-, very low-, low-, and moderate-income
housing. Failure to adopt an ordinance does not relieve a local
government from complying with state density bonus law. Local
governments must grant a density bonus when an applicant for a
housing development of five or more units seeks and agrees to
construct a project that will contain at least any one of the
following:
Ten percent of the total units for lower income
households;
Five percent of the total units of a housing for very
low income households;
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A senior citizen housing development or mobilehome park;
and,
Ten percent of the units in a common-interest
development (CID) for moderate-income households.
A developer can submit a request to a local government as part
of their density bonus application for incentives and
concessions. Developers can receive the following number of
incentives or concessions:
One incentive or concession for projects that include at
least 10% of the total units for lower income households,
at least 5% for very low income households, or at least 10%
for moderate income households in a common interest
development
Two incentives or concessions for projects with at least
20% lower income households, at least 10% for very low
income households, or at least 20% for moderate income
households in common interest developments.
Three incentives or concessions for projects with at
least 30% lower income households, at least 15% for very
low income households, or at least 30% for moderate income
households in common interest developments.
Typically, housing developments that serve special needs
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populations are financed using public funding to reduce the debt
service on the projects. It's unclear whether or not market rate
developers would opt to dedicate at least 10% of the units in
development to a transition age foster youth, disabled veterans,
and homeless person in return for increased density and
concessions and incentives. In addition, these populations would
be captured under the existing percentages for very low- and
low-income households.
Staff comments:
A developer can receive a density bonus and concessions and
incentives under this bill if they agree that 10% of the units
in the housing development are reserved for special needs
populations. The bill does not specify the income level of the
individual, the amount of density a developer would receive for
inclusion of the units, or provide for the continuous use of the
units.
Committee amendments:
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1)Require the units to be subject to a recorded affordability
restriction of 55 years.
2)Make the density bonus that a developer receives the same as
the amount allowed for senior housing units.
3)Require the units to be provided at a same affordability level
as very low- income units.
Technical amendment:
On page 3, line 10 delete "or" and after "(D)" add in,"( E )"
Double referred: If AB 2442 passes this committee, the bill
will be referred to the Committee on Local Government
REGISTERED SUPPORT / OPPOSITION:
Support
AB 2442
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Bonita Unified School District
David & Margaret Youth and Family Services
Hillsides
Michael D. Antonovich, Supervisor, County of Los Angeles
Opposition
None on file
Analysis Prepared by:Lisa Engel / H. & C.D. / (916) 319-2085,
Lisa Engel / H. & C.D. / (961) 319-2085