Amended in Senate March 26, 2015

Senate BillNo. 341


Introduced by Senator Nguyen

February 23, 2015


An act tobegin insert end insertbegin insertamend Section 50464 of, and toend insert add Section 50464.5begin delete toend deletebegin insert to,end insert the Health and Safety Code, relating to land use.

LEGISLATIVE COUNSEL’S DIGEST

SB 341, as amended, Nguyen. Housing:begin insert Department of Housing and Community Development:end insert localbegin delete fees: study.end deletebegin insert fees.end insert

Existing law authorizes the Department of Housing and Community Development tobegin delete makeend deletebegin insert take specified actions related to housing that include, among other things,end insert investigations of housing and community development in the state.

begin insert

This bill would require the department to take these actions.

end insert

Existing law requires fees charged by a local agency for specified purposes, including zoning variances, zoning changes, use permits, building inspections, building permits, the processing of maps under the provisions of the Subdivision Map Act, and planning services, to not exceed the estimated reasonable cost of providing the service for which the fee is charged, unless a question regarding the amount of the fee charged in excess of this cost is submitted to, and approved by, 23 of the electors.

This bill would require, by January 1, 2017, and every 5 years thereafter, the department to conduct a statewide survey of cities and counties to determine the total amount of fees and charges imposed on new home construction by local jurisdictions and submit the survey to specified committees of the Legislature.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

The Legislature hereby finds and declares the
2following:

3(a) According to the most recent United States Census,
4California’s poverty rate is 16 percent, 1.4 percent higher than the
5national rate of 14.6 percent. However, under an alternative
6method, also calculated by the United States Census Bureau, called
7the Supplemental Poverty Measure, California has the highest
8poverty rate in the nation at 23.4 percent, well above the national
9alternative rate of 15.5 percent.

10(b) The median value of a home in California ofbegin delete $383,900end delete
11begin insert $437,800end insert isbegin delete 111.6end deletebegin insert 144.3end insert percent higher than the national median
12home value ofbegin delete $181,400,end deletebegin insert $179,200,end insert yet the median household
13income of $61,400 in California is only 15.7 percent higher than
14the national average of $53,046. This may help to explain why
15onlybegin delete 56end deletebegin insert 54end insert percent of Californians own a home, far behind the
16national average ofbegin delete 65.5end deletebegin insert 64end insert percent.begin insert Fourtyend insertbegin insert-six percent of
17Californians rent. By national standards, California’s
18homeownership rate of 54 percent is the third lowest in the nation.end insert

19(c) According to the Department of Housing and Community
20Development’s 2001 report on local development fees,
21“California’s high residential development fees significantly
22contribute to its high housing costs and prices.” In fact, 15 years
23ago, local fees accounted for 10 to 15 percent of the cost of building
24a home. At that time, it was estimated that a reduction of local fees
25by half could increase home ownership by as much as 14 percent.
26Today, data from the California Building Industry Association
27shows local fees may account for 30 percent of the cost of a new
28home.

29begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 50464 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
30amended to read:end insert

31

50464.  

The departmentbegin delete may:end deletebegin insert shall do all of the following:end insert

32(a)  Make investigations of housing and community development
33in California.

P3    1(b)  Call conferences of representatives of all levels of
2government, industry, and private groups, to discuss housing and
3community development problems of California.

4(c)  Investigate and report upon substandard housing and the
5problems resulting therefrom and the work being done to remedy
6begin delete suchend deletebegin insert theseend insert conditions.

7(d)  Study the operation and enforcement of housing, building,
8zoning, and subdivision laws and regulations, of housing finance,
9taxes, redevelopment programs and public housing projects, as
10related to housing and community development.

11(e)  Examine the records of housing authorities and
12redevelopment agencies, and secure from them reports and copies
13of their records at any time.

14(f)  Promote the formation of organizations intended to increase
15the supply of adequate housing and the proper living environment
16for all the people of the state.

17(g)  With the Department of Transportation, investigate and
18report upon the consistency between state, local, and federal
19housing plans and programs and state, local, and federal
20transportation plans and programs.

21

begin deleteSEC. 2.end delete
22begin insertSEC. 3.end insert  

Section 50464.5 is added to the Health and Safety
23Code
, to read:

24

50464.5.  

(a) The department shall conduct a statewide survey
25of cities and counties to determine the total amount of fees and
26charges imposed on new home construction by local jurisdictions.
27The survey shall include the fees and charges imposed by at least
28150 cities, at least one city within each county, and all 58 counties.
29These fees and charges shall include, but not be limited to, all of
30the following:

31(1) Planning and zoning fees.

32(2) Environmental documentation fees.

33(3) Building permit fees.

34(4) Plan check fees.

35(5) School fees.

36(6) School mitigation fees.

37(7) Highway, road, traffic, and transit fees.

38(8) Water, wastewater, sewer, and drainage fees.

39(9) Utility or water connection fees.

40(10) Public safety fees.

P4    1(11) Capital facilities fees.

2(12) Affordable housing fees and assessments.

3(13) Parks and recreation fees.

4(b) The department shall complete this survey and submit its
5 findings to the Senate Committee on Transportation and Housing
6and the Assembly Committee on Housing and Community
7Development by January 1, 2017, and every five years thereafter.



O

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