BILL ANALYSIS Ó
AB 2783
Page 1
Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
David Chiu, Chair
AB 2783
(Eduardo Garcia) - As Amended March 28, 2016
SUBJECT: Affordable Housing and Sustainable Communities Program
SUMMARY: Requires the Strategic Growth Council (SGC) to revise
their adopted guidelines and selection criteria for affordable
housing project that qualify under the Affordable Housing and
Sustainable Communities Program (AHSC) for the Rural Innovation
Project Area (RIPA). Specifically, this bill:
1)Requires the SGC to revise their adopted guidelines and
selection criteria for affordable housing project that qualify
under the AHSC for the RIPA as follows:
a) Projects shall be allowed to build at nonmetropolitan
density requirements based on net density.
b) Defines "net density" to mean the total number of
dwelling units per acre of land to be developed for
resident or missed use excluding permanent streets,
required drainage facilities, sidewalks, parks, public
rights of way, easements, encroachments, and dedicated open
space.
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c) For projects that receive 4% low-income housing tax
credits, one hundred thousand dollars $100,000 per
restricted unit shall be added to the base amount for loan
limit calculations purposes.
d) Scoring must be awarded based on the extent to which an
application demonstrates walkable corridors and
incorporates features that encourage bicycling which will
exist upon completion of the project.
EXISTING LAW:
1)Establishes the SGC made up of the California Business
Consumer Services and Housing Agency (BCSH), California Health
and Human Services (CHHS), California Environmental Protection
Agency (CalEPA), California State Transportation Agency
(CalSTA), the California Department of Food and Agriculture
(CDFA) and the California Natural Resources Agency (CNRA); the
director of the Governor's Office of Planning and Research
(OPR).
2)Directs the SGC to develop guidelines and selection criteria
for the implementation of the AHCS to reduce greenhouse gas
emissions through projects that implement land use, housing,
transportation, and agricultural land preservation practices
to support infill and compact development and that support
related and coordinated public policy objectives including the
following:
a) Reducing air pollution;
b) Improving conditions in disadvantaged communities;
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c) Supporting or improving public health or other
co-benefits;
d) Improving connectivity and accessibility to jobs,
housing, and services;
e) Increasing options for mobility, including the Active
Transportation Program;
f) Increase transit ridership;
g) Preserve and develop affordable housing for lower income
people; and
h) Protect agricultural lands to support infill
development.
1)Requires a project to demonstrate the following to be eligible
for funding from the AHSC program:
a) Demonstrate that it will achieve a reduction in
greenhouse gas emissions;
b) Support implementation of an adopted or draft SCS, or if
a SCS is not required for the region a regional plan that
includes policies and programs that reduce greenhouse gas
emissions.
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c) Demonstrate consistency with the state planning
priorities established to achieve the state's environmental
goals.
1)Requires that at least 50% of the funding for AHSC benefit
projects in disadvantaged communities.
2)Requires SGC when revising its guidelines to develop the
guidelines and selection criteria, conduct at least two public
workshops (one in northern California and one in southern
California) to receive and consider public comments, and
publish the draft guidelines on its Internet Web site at least
30 days prior to the public meetings.
3)Requires SGC to consider comments from local governments,
regional agencies, and other stakeholders in adopting
guidelines and selection criteria.
4)Requires the SGC to conduct outreach to disadvantaged
communities to encourage comments on the draft guidelines from
those communities.
5)Defines "disadvantaged communities" to mean communities
identified by the CalEPA based on geographic, socioeconomic,
public health, and environmental hazard criteria, and may
include, but are not limited to, either of the following:
a) Areas disproportionately affected by environmental
pollution and other hazards that can lead to negative
public health effects, exposure, or environmental
degradation; and
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b) Areas with concentrations of people that are of low
income, high unemployment, low levels of homeownership,
high rent burden, sensitive populations, or low levels of
educational attainment.
FISCAL EFFECT: Unknown
COMMENTS:
In 2014, Legislature created the AHSC program funded through
cap-and-trade proceeds. SB 862 (Senate Budget and Fiscal Review
Committee) Chaptered 862, Statutes of 2014 continuously
appropriated 35% of the cap-and-trade funds for investments in
transit, affordable housing, and sustainable communities. Of
this, 10% is for transit and inter-city rail capital programs
administered by the Department of Transportation (Caltrans) and
the California Transportation Commission (CTC); 5% is for low
carbon transit operations through the State Transit Assistance
formula; and 20% is for affordable housing and sustainable
communities, with half of this funding going to affordable
housing projects that demonstrate a reduction in greenhouse
gases.
The AHSC program is administered by the SGC and HCD. HCD is
responsible for implementing the transportation, housing, and
infrastructure components of the AHSC program. According to the
guidelines, "The AHSC program is designed to implement the GHG
emissions reductions through fewer shorter vehicle trips. The
AHSC program will fund integrated land use and transportation
projects supporting low-carbon transportation options. Promoting
mode shift to low-carbon transportation will require strategies
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that link residential areas, major employment centers and other
key destinations to accessible reliable, affordable safe,
comfortable transit, and active transportation options. The
AHSC provides grants and/or loans to projects that will achieve
GHG reductions and benefit disadvantaged communities through
increasing accessibility of affordable housing, employment
centers, and key destinations via low-carbon transportation
resulting in fewer vehicle miles travelled (VMT) through
shortened or reduced vehicle trip length or mode shift transit,
bicycling, or walking. Funding applicants track metrics in
accordance with the Air Resources Board's Funding Guidelines.
In the first round of funding, two projects in rural areas were
funded from the affordable housing set-aside. The SGC convened
four stakeholder meetings over the Fall of 2016 to receive
public comment and consider changes to the program. Recognizing
that rural projects were not able to compete well against urban
projects, the SGC changed their guidelines to set-aside 10% of
the total funding for AHSC for rural areas. As a result,
applicants in rural areas compete against other rural projects
rather than against urban projects that can generally show a
greater reduction in VMT.
In January, the SGC released a NOFA for the AHSC program which
included the new RIPA set aside and guidelines. In response they
received a total of 130 applications in all categories, 23 of
the applications are for RIPA. HCD is in the process of
determining which applicants will be asked to move to the next
phase of the process and submit full applications.
The intent of programs funded by cap-and-trade proceeds is to
reduce greenhouse gas emissions to achieve goals set in AB 32.
In order to meet this standard affordable housing project must
combine both density and proximity to public transportation in
order to result in fewer vehicle miles travelled which will
reduce our overall greenhouse gas production. The effect of this
bill is to reduce the density required for RIPA projects below
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what is required in the AHCS guidelines and potentially
undermine the goal of the program.
Arguments in support: According to the, The California
Coalition of Rural Housing, "AB 2783, a measure that will help
eliminate barriers to rural communities to access the AHSC
program to build safe affordable housing. Rural communities
throughout the state have been systematically overlooked and as
a result have not received investments from the AHSC program
which will help these communities increase their access to
affordable housing while also achieving greenhouse gas
reductions. In 2015, there were no rural affordable housing
projects that received funding from the AHSC. Out of the 36
projects that did received funding, two projects were in rural
communities but those did not result in the building of much
needed affordable housing in rural areas of the state. Despite
the RIPA being established by the SGC to address inequitable
distribution of fund, there are still threshold barriers that
hinder rural communities in the state having access to the
investments needed to help combat climate change while also
achieving other co-benefits, such as maximize overall economic,
public health and environmental benefits, improve air quality,
and lessen effects of climate change in California."
Arguments in opposition : According to the Metropolitan
Transportation Commission, "in response to concerns that the
AHSC program did not provide sufficient funding to rural areas
in its first two rounds, the AHSC guidelines for 2015-16 include
a target of 10% for RIPA proposals, though the target is not
binding in the event there aren't sufficient qualifying
applications. MTC does not oppose the RIPA target, but we do
oppose lowering what is already a relatively low density
requirement (20 units/acre, suburban standard) to the
non-metropolitan area standard of 15 units/acre. As an
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illustration the city of Calistoga has submitted for AHSC
funding an affordable housing development project for seniors
with an estimated density of 35 units/acre. The minimum density
requirements for the AHSC guidelines were developed with
extensive public input. Given the purpose of the AHSC program
is to reduce GHG emission by boosting the availability of
affordable housing in near transit, lowering the density
requirements undermines that goal."
Policy concerns :
In the Fall of last year, the SGC revised the guidelines for the
AHSC program to provide greater access for rural areas of the
state by eliminating competition between rural and urban
projects and allowing rural projects to compete against each
other. The committee may wish to consider allowing this process
to play out before pursing changes to the program.
Climate change is a dynamic and evolving situation that the
state needs to be able to respond to through policy and funding
mechanisms in an efficient and thoughtful manner. Locking
program guidelines into statute may undermine that process and
the fundamental purpose of the AHSC program, to reduce our GHG
emissions and slow climate change. The committee may wish to
consider if making changes to the guidelines through this bill
will invite other stakeholders who are dissatisfied with the
guidelines process to pursue changes through the legislative
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process.
REGISTERED SUPPORT / OPPOSITION:
Support
Burbank Housing Development Corporation
California Coalition for Rural Housing
Coachella Valley Housing Coalition
Comité Civico del Valle
La Union Hace La Fuerza
Peoples' Self Help Housing Corporation
Pueblo Unido CDC
Redwood Valley Little River Band of Pomo Indians
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Opposition
Metropolitan Transportation Commission
Analysis Prepared by:Lisa Engel / H. & C.D. / (961) 319-2085,
Lisa Engel / H. & C.D. / (916) 319-2085