BILL ANALYSIS Ó
AB 2522
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Date of Hearing: April 13, 2016
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
David Chiu, Chair
AB 2522
(Bloom) - As Amended April 5, 2016
SUBJECT: Land use: attached housing developments
SUMMARY: Allows an attached housing development to be permitted
as a "use by right" provided that it meets specified
requirements. Specifically, this bill:
1)Defines "use by right" to mean that a local government's
review of the owner-occupied or multi-family residential use
may not require a conditional use permit, planned unit
development permit, or other discretionary local government
review or constitute a "project" for the purposes of the
California Environmental Quality Act (CEQA). Requires any
subdivision of sites are subject to all laws including but not
limited to the local Subdivision Map Act. Use by right does
not exempt the use from design review. Design review does not
constitute a "project" for purposes of CEQA.
2)Defines "attached housing development" to mean:
a) A newly constructed or substantially rehabilitated
structure containing two or more dwelling units that is a
"housing development project;"
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b) "Housing development project" means a use consistent
with any of the following:
i. Residential use only;
ii. Mixed use developments consisting of
residential and nonresidential in which the
nonresidential uses are limited to neighborhood
commercial uses and to the first floor of buildings
that are more than two floors. Neighborhood commercial
means small-scale general or special stores that
provide goods primarily to the surrounding community;
or
iii. Transitional or supportive housing.
a) Does not include a second unit; and
b) Does not include a condominium conversion.
1)Requires the attached housing development to include housing
for very low, low-, or moderate-income households as follows:
a) At least 20% of the total units must be sold or rented
to lower income households making 80% of the area median
income (AMI) or below; or
b) 100% of the units must be sold or rented to moderate
income households, making between 80% to 120% of AMI or
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middle income households making 150% of AMI or below; and
c) Replacement of all rental units that existed on the site
where the attached housing development is constructed in
the last five years that were:
a. Occupied by very low- or low-income
households;
b. Restricted by a covenant or law to very low-
or low-income rents;
c. Subject to rent control if the occupants were
moderate, low- or very low-income.
1)Requires the attached housing development to either:
a) Satisfy existing exemptions within the California
Environmental Quality Act (CEQA) for farmworker housing,
low income housing developments, and infill sites with 100
housing units or less; or
b) Requires the attached housing development to:
i. Be located on a site that is included in the
jurisdiction's housing element inventory of
residential land suitable for development; or
ii. Be located on a site that has been or will be
rezoned as required by the jurisdiction's housing
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element and either the rezoning has been complete or
three years has passed following the date that the
jurisdiction's housing element was adopted unless an
extension to four years is granted because most of the
rezoning was completed within the previous three
years; and
iii. Provides that the attached housing development
cannot contain more dwelling units than were projected
by the jurisdiction in the housing element as well as
any density bonus units that the development is
eligible for; and
iv. Requires the attached housing development must
comply with applicable general plan and zoning
standards and criteria, including but not limited to
design standards in effect when the attached housing
development is determined to be complete; and
v. Requires the attached housing development to
either be in an "urbanized area" or "infill site."
1)Defines an "urbanized area" to mean:
a) An incorporated city with a population of at least
100,000 or an incorporated city with a population of less
than 100,000 if no more than two neighboring incorporated
cities have a population of at least 100,000; or
b) An unincorporated area that is either completed
surrounded by one or more incorporated cities and the
population of the incorporated area and the population of
the surrounding incorporated city or cities is not less
than 100,000 and the population density of the incorporated
area is at least equal to the population density of the
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surrounding city or cities OR an unincorporated area that
is located within urban growth boundary and has an existing
residential population of at least 5,000 persons per square
mile; or
c) In an census-defined place with a population density of
at least 5,000 persons per square mile; or
d) If the development is 50 units or less within an
incorporated city with a population density of at least
2,500 persons per square mile and total population of at
least 25,000.
1)Defines an "infill site" to mean a site in an urbanized area
where either:
a) The site has not been previously developed for urban
uses and both of the following apply: the site is
immediately adjacent to parcels that are developed with
qualified urban uses, or at least 75 percent of the
perimeter of the site adjoins parcels that are developed
with qualified urban uses, and the remaining 25 percent of
the site adjoins parcels that have previously been
developed for qualified urban uses AND no parcel in the
site has been built on within the past 10 years unless the
parcel was built on as result of a redevelopment agencies
plan, or
b) The site was previously developed for qualified urban
uses.
1)Applies to all cities and counties including charter cities
because the Legislature finds that the lack of affordable
housing is of vital statewide importance and thus a statewide
concern.
2)Operates independently of a jurisdictions obligation to
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identify multifamily sites developable by right in its housing
element.
3)Provides that the exemptions in this bill do not apply to the
Coastal Commission Act.
4)Provides that an applicant or public agency must comply with
the Subdivision Map Act.
5)Provides that no reimbursement is required pursuant to Section
6 of Article XIII B of the California Constitution.
EXISTING LAW:
1)Defines "use by right" to mean that a local government's
review of the owner-occupied or multifamily residential use
may not require a conditional use permit, planned unit
development permit, or other discretionary local government
review or constitute a "project" for the purposes of the
California Environmental Quality Act (CEQA) Requires any
subdivision of the sites are subject to all laws including but
not limited to the local Subdivision Map Act. Use by right
does not exempt the use from design review. Design review does
not constitute a "project" for purposes of CEQA.
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2)The Housing Accountability Act defines housing for very low,
low-, or moderate-income households to mean either:
a) At least 20% of the total units in a development must
be sold or rented to lower income households at 80% of AMI
or below (as defined in Section 50079.5 of the Health and
Safety Code); or
b) 100% of the units in a development must be sold or
rented to persons and families of moderate income between
80% to 120% of AMI (as defined in Section 50093 of the
Health and Safety Code) or to persons and families of
middle income at up to 150% of AMI. (Government Code
Section 65589.5)
1)The Housing Accountability Act provides that:
a) Housing units targeted for lower income households shall
be made available at a monthly housing cost that does not
exceed 30% of 60% of AMI with adjustments for household
size made in accordance with the adjustment factors on
which the lower income eligibility limits are based.
b) Housing units targeted for persons and families of
moderate income shall be made available at a monthly
housing cost that does not exceed 30% of 100% of AMI with
adjustments for household size made in accordance with the
adjustment factors on which the moderate-income eligibility
limits are based.
FISCAL EFFECT: Unknown.
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COMMENTS:
Background: California is facing a housing affordability crisis
on many fronts. According to the Public Policy Institute of
California (PPIC), as of February 2015, roughly 36% of mortgaged
homeowners and approximately 48% of all renters are spending
more than one-third of their household incomes on housing.
California continues to have the second lowest homeownership
rate in the nation and the Los Angeles metropolitan area is now
a majority renter region. In fact, five of the eight lowest
homeownership rates in the nation are in California metropolitan
areas.
California has 12% of the United States population, but 20% of
its homeless population - 63% of these homeless Californians are
unsheltered (the highest rate in the nation). At any given
time, 134,000 Californians are homeless. California has 24% of
the nation's homeless veterans and one-third of the nation's
chronically homeless. The state also has the largest numbers of
unaccompanied homeless children and youth, with 30% of the
national total.
By right proposal : This bill would exempt a housing development
that includes either 20% low-income units or 100% moderate
income units and middle income units from a conditional use
permit, a planned unit development permit or project level CEQA
review. In order to qualify, a housing development would need to
be on a site designated by the local government in its housing
element, be located in an urbanized area, and be consistent with
the adopted General Plan, written zoning, and design criteria.
In order to qualify for by right, the number of units in a
development could not exceed the number of units that the local
government had designated for the site in its housing element
plus any increased density a developers receives as part of a
density bonus.
The project would be exempt from a project level CEQA review;
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however it would be subject to environmental review as part of
the housing element review and adoption process. Public review
is also required when a local government adopts design
requirement, its General Plan, and zoning. A development that is
approved by right pursuant to this bill would be subject to
those reviews.
A housing development could not qualify for use by right if it
removes existing housing units that are affordable to low income
families or are subject to rent control unless replacement units
are included in the development in equal proportion.
Purpose of this bill: According to the author, "AB 2522 amends
Government Code Section 65589.4 to focus on building affordable
and workforce housing through a market-rate solution, and to
address continued strong local opposition to housing at the
local level through the CEQA process. This bill is also
designed to avoid further modification to or additional
requirements on the housing element itself as they will have
minimal positive effect on the amount of housing produced in the
state. AB 2522 would require by right approval by cities and
counties of any market rate multi-family rental housing project
that includes at least 20% low income housing or 100% moderate
income housing. The by right approval would apply to attached
housing projects proposed for sites already designated by the
city or county in the housing element for housing, in urban
areas, and subject to consistency with written up-front General
Plan, zoning and design criteria. By right approval is
completed without any discretionary approval, eliminating the
need for CEQA review, and is already required on any housing
element sites where rezoning was required. However, public
review is still required to establish design guidelines and the
zoning, and subdivisions remain subject to CEQA. Substantial
public review, comment and CEQA are also required during the
housing element review and adoption process."
Arguments in support : According to the sponsor, the American
Planning Association, California Chapter, AB 2522 is designed to
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get more affordable and market rate housing built by, providing
greater certainty to developers who will know well before
submitting a project application what is required to receive the
by right approval through written, upfront General Plan, zoning
and design criteria. AB 2522 respects local planning for housing
because the sites where the housing would be approved by right
have already been designated as housing sites in the housing
element by the city or county itself, and the project must also
comply with written and adopted General Plan, zoning and design
criteria developed and approved by the local agency. Encourages
public engagement early in the process by shifting local
engagement and participation away from CEQA review at the time
of project approval, the public can engage much earlier in the
process during approval and adoption of the General Plan,
housing element, zoning and design criteria. AB 2522 provides a
clear and concrete solution that encourages the production of
housing rather than additional paperwork: Additional
requirements for the housing element have been passed by the
Legislature nearly every year for 20 years - these requirements
have not prevented a severe housing shortage. Further detailed
requirements for housing elements will have minimal positive
effects on the amount of housing produced in the state. The
emphasis now must be on increasing the production of housing at
all affordability levels.
Arguments in opposition : According to the League of California
Cities, "when a city prepares its housing element it does its
best to identify sites that accommodate its share of the RHNA.
However, a detailed engineering, environmental analysis is not
completed when the housing element is prepared. This means that
the maximum number of units may not be able to be accommodated
on a particular site because of engineering and environmental
issues that are discovered as part of the review of a housing
development. By right approval of the maximum units does not
allow a city to analyze whether the site can accommodate the
number of units. The bill requires continued affordability for
30 years. The density bonus law requires continued affordability
for 55 years. The League has always supported 55 years
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requirements to ensure continued affordability and availability.
Staff comments:
The committee may wish to consider the following amendments to
exempt jurisdictions who are successfully building affordable
housing from the provisions of this bill. In the most recently
competed RNHA cycle, local governments that exceed 60% of their
total RHNA for all income levels and exceed 40% of the RNHA for
very low- and low-income levels combined would have the option
of opting out of the requirements of the bill. Local
governments would be required to make a finding that they have
met these thresholds and would be required to notify HCD on
their housing element annual report that they opted-out.
This act shall not apply to a city, county, or a city and
county in the last RNHA cycle exceeded 60% of the total
regional housing needs in all income levels and exceeded 40%
of the combined RHNA for very-low- and low-income. A city,
county or city and county shall make a finding annually to
maintain this exemption.
The committee may wish to consider the following amendments to
ensure that the maximum numbers of affordable units are
constructed and that the housing is deed restricted for 55-years
for very low- and low- and 45 years for moderate income.
Amend 65589.4 (b) as follows:
(b) The attached housing development provides both of the
following:
(1) "Housing for very low, low or moderate income households"
as defined in paragraph (3) of subdivision (h) of Section
65589.5; and or
(2) Replacement housing units as required by paragraph (3) of
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subdivision (c) of Section 65915 , whichever provides the
greater amount of lower income housing .
The jurisdiction shall require the developer of the attached
housing development to provide sufficient legal commitments to
the local agency to ensure the continued availability and use
of the housing units for very low- and low-income households
for a period of at least 55 years and for moderate-income
households for a period of at least 45 years.
Technical amendment:
Page 3, line 22, delete "element" and replace with "development"
Double referred : If AB 2522 passes this committee, the bill
will be referred to the Committee on Local Government.
REGISTERED SUPPORT / OPPOSITION:
Support
American Planning Association, California Chapter (sponsor)
California Apartment Association
California Association of Realtors
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California Building Industry Association
California Housing Consortium
Opposition
City of Lakeport
City of Torrance
Council of Community Housing Organizations
League of California Cities
Analysis Prepared by:Lisa Engel / H. & C.D. / (916) 319-2085,
Lisa Engel / H. & C.D. / (961) 319-2085
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