BILL ANALYSIS Ó
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Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Susan Talamantes Eggman, Chair
AB 2442
(Holden) - As Amended April 14, 2016
SUBJECT: Density bonuses.
SUMMARY: Requires local agencies to grant a density bonus, when
an applicant for a housing development agrees to construct
housing for transitional foster youth, disabled veterans, or
homeless persons. Specifically, this bill:
1)Requires a local agency to grant one density bonus, when an
applicant for a housing development seeks and agrees to
construct a housing development that contains 10% of the total
units for transitional foster youth, disabled veterans, or
homeless persons, as those terms are defined in code.
2)Requires the units to be subject to a recorded affordability
restriction of 55 years and to be provided at the same
affordability level as very low-income units.
3)Specifies, for housing developments meeting the criteria of
1), above, that the density bonus shall be 20% of the number
of the type of units giving rise to a density bonus, as
specified, thus making the density bonus for 1), above,
consistent with density bonus that a developer receives for
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senior housing units.
4)States that no reimbursement is necessary because a local
agency has the authority to levy service charges, fees, or
assessments sufficient to pay for the program or level of
service mandated by this act.
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% 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.
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) 10% of the total units for lower-income households;
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b) 5% of the total units of a housing for very low-income
households;
c) A senior citizen housing development or mobilehome park;
and,
d) 10% 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 5% for moderate-income housing in a CID.
FISCAL EFFECT: This bill is keyed fiscal.
COMMENTS:
1)Bill Summary. This bill requires a local agency to grant one
density bonus, when an applicant for a housing development
seeks and agrees to construct a housing development that
contains 10% of the total units for transitional foster youth,
disabled veterans, or homeless persons, as those terms are
defined in code, and requires the units to be subject to a
recorded affordability restriction of 55 years and to be
provided at the same affordability level as very low-income
units. Additionally, the bill specifies that the density
bonus shall be 20% of the number of the type of units giving
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rise to a density bonus, thus making the density bonus for the
bill consistent with the density bonus that a developer would
receive for senior housing units.
This bill is an author-sponsored measure.
2)Author's Statement. According to the author, "Many at-risk
populations can benefit from affordable housing options, made
available by providing existing incentives to build density
housing. In existing law, income level and age are the only
factors available for housing developers and local governments
to consider, when making the commitment to build a housing
project that has been granted a multiple density bonus. AB
2442 adds that a Multiple Density Bonus can be obtained by a
housing developer, if an agreement is made to build housing
and set aside ten percent of the housing units for former
foster youth, disabled veterans, and/or formerly homeless
individuals. These units would be made available for
55 years at the affordability rate of very low-income units.
3)Background. 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 financially 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
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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:
a) 10% of the total units for lower-income households;
b) 5% of the total units of a housing for very low-income
households;
c) A senior citizen housing development or mobilehome park;
and,
d) 10% 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:
a) 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
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b) 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.
c) 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
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.
1)Arguments in Support. Supporters argue that this bill will
establish new fiscal incentives for housing developers to
dedicate units specifically for this population of youth, and
will thus expand the availability of affordable housing for
these youth and enhance their opportunities and outcomes.
2)Arguments in Opposition. None on file.
3)Double-Referral. This bill was heard in the Housing and
Community Development Committee on April 13, 2016, where it
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passed with a 6-1 vote.
REGISTERED SUPPORT / OPPOSITION:
Support
Hillsides
Bonita Unified School District
David & Margaret Youth and Family Services
Michael D. Antonovich, Supervisor, County of Los Angeles
Individual letters (126)
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Opposition
None on file
Analysis Prepared by:Debbie Michel / L. GOV. / (916) 319-3958