BILL ANALYSIS Ó
AB 2442
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
2442 (Holden)
As Amended August 19, 2016
Majority vote
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|ASSEMBLY: |63-8 |(May 19, 2016) |SENATE: | 39-0 |(August 23, |
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Original Committee Reference: H. & C.D.
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.
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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
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.
The Senate amendments make conforming changes to avoid
chaptering conflicts with AB 2556 (Nazarian) and AB 2501
(Bloom), both of the current legislative session.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, no state fiscal impact. Local agencies have the
authority to levy fees for related costs and thus, any local
costs are not reimbursable.
COMMENTS: Density bonus law was originally enacted in 1979, but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
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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:
1)Ten percent of the total units for lower income households;
2)Five percent of the total units of a housing for very low
income households;
3)A senior citizen housing development or mobilehome park; and,
4)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:
1)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.
2)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.
3)Three incentives or concessions for projects with at least 30%
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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 transition age foster youth, disabled
veterans, and homeless persons 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
Analysis Prepared by:
Lisa Engel / H. & C.D. / (916) 319-2085 FN:
0004844