BILL ANALYSIS Ó
AB 2442
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2442 (Holden) - As Amended April 14, 2016
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|Policy |Housing and Community |Vote:|6 - 1 |
|Committee: |Development | | |
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|-------------+-------------------------------+-----+-------------|
| |Local Government | |7 - 0 |
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY: This bill 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
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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)
that the density bonus must 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) consistent with density bonus
that a developer receives for senior housing units.
FISCAL EFFECT:
No state fiscal impact. Local agencies have the authority to
levy fees for related costs and thus, any local costs are not
reimbursable.
COMMENTS:
1)Purpose. 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 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.
2)Background. Density bonus is a tool to encourage the
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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
moderate-income housing.
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.
3)Related Legislation. This is one of six Assembly bills
addressing density bonus issues before this committee today.
a) AB 1934 (Santiago) creates a density bonus for
commercial developers that partner with an affordable
housing developer to construct a mixed-used development.
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b) AB 2208 (Santiago) adds to the list of the types of
sites that a local government can identify as suitable for
residential development in their housing element.
c) AB 2299 (Bloom) requires, instead of allows, a local
agency to, by ordinance, provide for the creation of second
units in single-family and multifamily residential zones,
and makes a number of other changes specifying what is
required to be in the ordinance.
d) AB 2501 (Bloom and Low) makes a number of changes to
density bonus law.
e) AB 2556 (Nazarian) requires a jurisdiction, in cases
where a proposed development is replacing existing
affordable housing units, to adopt a rebuttable presumption
regarding the number and type of affordable housing units
necessary for density bonus eligibility.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081
AB 2442
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