BILL NUMBER: SB 948	CHAPTERED
	BILL TEXT

	CHAPTER   968
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 10, 1999
	PASSED THE SENATE   SEPTEMBER 7, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 2, 1999
	AMENDED IN ASSEMBLY   AUGUST 31, 1999
	AMENDED IN ASSEMBLY   AUGUST 16, 1999
	AMENDED IN ASSEMBLY   JULY 13, 1999
	AMENDED IN ASSEMBLY   JULY 1, 1999
	AMENDED IN SENATE   APRIL 5, 1999

INTRODUCED BY   Senator Alarcon
   (Principal coauthor:  Senator Burton)
   (Principal coauthor:  Assembly Member Dutra)

                        FEBRUARY 25, 1999

   An act to amend Sections 7060, 7060.2, 7060.4, 7060.7, 65009,
65589.5, 65915, and 65950 of the Government Code, relating to
housing.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 948, Alarcon.  Affordable housing developments.
   (1) Under the Ellis Act, public entities generally are prohibited
from adopting any statute, ordinance, or regulation, or taking any
administrative action, to compel the owner of residential real
property to offer or to continue to offer accommodations in the
property for rent or lease.  The act also authorizes any public
entity that has in effect any system of rent control, notwithstanding
any provision of the Ellis Act, to subject to specified provisions,
accommodations that had been withdrawn from rent or lease and are
again offered for rent or lease for residential purposes within one
year of the date that the accommodations were withdrawn pursuant to a
60-day notice.
   This bill would revise the act's statement of legislative intent.
It would also extend the period from one year to 2 years that
accommodations that are offered again for rent or lease for
residential purposes are subject to specified regulatory provisions
and it would revise those provisions.  The bill would also require
that a specified notice and conditions apply to a tenant or lessee
who is at least 62 years of age or disabled, as defined, and has
lived in his or her accommodations for at least one year, as
specified, when the owner of the residential property delivers to the
public entity a notice of intent to withdraw the accommodations from
rent or lease under the act.
   The bill would also change the notice of intent to withdraw to the
public entity from 60 days to 120 days and would require that these
provisions shall only apply to accommodations where the date of
delivery to the public entity of the notice of intent to withdraw is
on or after January 1, 2000.
   (2) Under existing law, the Planning Zoning Law requires an action
or proceeding against local zoning and planning decisions of a
legislative body to be commenced and the legislative body to be
served within a year after accrual of the cause of action if it meets
certain requirements, including that it is brought in support of the
development of housing that meets the requirements for housing
persons and families with low or moderate incomes.  Where the action
or proceeding challenges the adequacy of a housing element, the
action or proceeding may be initiated up to 60 days following the
date the Department of Housing and Community Development reports its
findings concerning the housing element pursuant to specified
provisions.
   This bill would revise these provisions to include actions or
proceedings to encourage or facilitate the development of housing and
would include persons and families of very low and middle incomes.
The bill would also provide that any action or proceeding challenging
the adequacy of a housing element pursuant to these provisions may
be brought as specified above.
   (3) Existing law requires local agencies to make specified
findings before disapproving or conditionally approving certain
housing development projects.  Existing law also requires local
agencies to provide developer incentives for the production of lower
income housing units within a housing development if the developer
meets specified requirements.  Developer incentives include, among
other things, a density bonus, as defined.
   This bill would make specified changes in these findings relating
to very low income, low-income, lower to moderate-income housing,
middle-income households and the housing element of a general plan,
respectively.  The bill would revise the definition of "affordable to
low- and moderate-income households" to include very low income
households or middle-income households, as defined, and would add a
definition for "disapprove the development project" to these
provisions.  The bill would also require the court in any action
brought to enforce these provisions to order a local agency, within
60 days, to comply with these provisions and take action on the
development projects that were disapproved on the basis of findings
that were inadequate or lacked substantial evidence and to retain
jurisdiction for this purpose.  The bill would also revise the
definitions of "density bonus" and "area median income" to mean very
low or low- income households for purposes of these provisions.
   Because these changes would impose new duties on local agencies,
the bill would impose a state-mandated local program.
   (4) Under the Permit Streamlining Act, a public agency that is the
lead agency for a development project is required to approve or
disapprove the project within 180 days from the date of certification
by the lead agency of an environmental impact report if the report
is prepared pursuant to specified provisions.
   This bill, in addition, would reduce that period to 90 days if the
development project is affordable to very low or low-income
households and the project applicant has provided written notice to
the lead agency that an application has been or will be made to a
public or federal agency for an allocation or commitment of
financing, tax credits, bond authority, or other financial assistance
and there is confirmation that the application was made prior to
certification of the environmental impact report.
  (5) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 7060 of the Government Code is amended to read:

   7060.  (a) No public entity, as defined in Section 811.2, shall,
by statute, ordinance, or regulation, or by administrative action
implementing any statute, ordinance or regulation, compel the owner
of any residential real property to offer, or to continue to offer,
accommodations in the property for rent or lease.
   (b) For the purposes of this chapter, the following definitions
apply:
   (1) "Accommodations" means either of the following:
   (A) The residential rental units in any detached physical
structure containing four or more residential rental units.
   (B) With respect to a detached physical structure containing three
or fewer residential rental units, the residential rental units in
that structure and in any other structure located on the same parcel
of land, including any detached physical structure specified in
subparagraph (A).
   (2) "Disabled" means a person with a disability, as defined in
Section 12955.3 of the Government Code.
  SEC. 2.  Section 7060.2 of the Government Code is amended to read:

   7060.2.  If a public entity, by valid exercise of its police
power, has in effect any control or system of control on the price at
which accommodations may be offered for rent or lease, that entity
may, notwithstanding any provision of this chapter, provide by
statute or ordinance, or by regulation as specified in Section
7060.5, that any accommodations which have been offered for rent or
lease and which were subject to that control or system of control at
the time the accommodations were withdrawn from rent or lease, shall
be subject to the following:
   (a) If the accommodations are offered again for rent or lease for
residential purposes within two years of the date the accommodations
were withdrawn from rent or lease, the following provisions shall
govern:
   (1) The accommodations shall be subject to any control on the
price at which they may be offered in the manner and to the same
extent as if the accommodations had not been withdrawn from rent or
lease.  This paragraph shall prevail over any conflicting provision
of law authorizing the landlord to establish the rental rate upon the
initial hiring of the accommodations.
   (2) The owner of the accommodations shall be liable to any tenant
or lessee who was displaced from the property by that action for
actual and exemplary damages.  Any action by a tenant or lessee
pursuant to this paragraph shall be brought within three years of the
withdrawal of the accommodations from rent or lease.  However,
nothing in this paragraph precludes a tenant from pursuing any
alternative remedy available under the law.
   (3) A public entity which has acted pursuant to this section may
institute a civil proceeding against any owner who has again offered
accommodations for rent or lease subject to this subdivision, for
exemplary damages for displacement of tenants or lessees.  Any action
by a public entity pursuant to this paragraph shall be brought
within three years of the withdrawal of the accommodations from rent
or lease.
   (4) Any owner who offers accommodations again for rent or lease
shall first offer the unit for rent or lease to the tenant or lessee
displaced from that unit by the withdrawal pursuant to this chapter,
if the tenant has advised the owner in writing within 30 days of the
displacement of his or her desire to consider an offer to renew the
tenancy and has furnished the owner with an address to which that
offer is to be directed.  That tenant, lessee, or former tenant or
lessee may advise the owner at any time during the eligibility of a
change of address to which an offer is to be directed.
   If the owner again offers the accommodations for rent or lease
pursuant to this subdivision, and the tenant or lessee has advised
the owner pursuant to this subdivision of a desire to consider an
offer to renew the tenancy, then the owner shall offer to reinstitute
a rental agreement or lease on terms permitted by law to that
displaced tenant or lessee.
   This offer shall be deposited in the United States mail, by
registered or certified mail with postage prepaid, addressed to the
displaced tenant or lessee at the address furnished to the owner as
provided in this subdivision, and shall describe the terms of the
offer.  The displaced tenant or lessee shall have 30 days from the
deposit of the offer in the mail to accept the offer by personal
delivery of that acceptance or by deposit of the acceptance in the
United States mail by registered or certified mail with postage
prepaid.
   (b) (1) If the accommodations are offered again for residential
purposes more than two years after the date the accommodations were
withdrawn from rent or lease, the accommodations shall be subject to
any control on the price at which they may be offered in the manner
and to the same extent as if the accommodations had not been
withdrawn from rent or lease, subject to any adjustments otherwise
available under the system of control.  This subdivision shall
prevail over any conflicting provision of law authorizing the
landlord to establish the rental rate upon the initial hiring of the
accommodations.
   (2) A public entity which has acted pursuant to this section, may
require by statute or ordinance, or by regulation as specified in
Section 7060.5, that an owner who offers accommodations again for
rent or lease within a period not exceeding 10 years from the date on
which they are withdrawn, and which are subject to this subdivision,
shall first offer the unit to the tenant or lessee displaced from
that unit by the withdrawal, if that tenant or lessee requests the
offer in writing within 30 days after the owner has notified the
public entity of an intention to offer the accommodations again for
residential rent or lease pursuant to a requirement adopted by the
public entity under subdivision (c) of Section 7060.4.  The owner of
the accommodations shall be liable to any tenant or lessee who was
displaced by that action for failure to comply with this paragraph,
for punitive damages in an amount which does not exceed the contract
rent for six months.
   (c) If the accommodations are demolished, and new accommodations
are constructed on the same property, and offered for rent or lease
within five years of the date the accommodations were withdrawn from
rent or lease, the newly constructed accommodations shall be subject
to any system of controls on the price at which they would be offered
on the basis of a fair and reasonable return on the newly
constructed accommodations, notwithstanding any exemption from such a
system of controls for newly constructed accommodations.
  SEC. 3.  Section 7060.4 of the Government Code is amended to read:

   7060.4.  (a) Any public entity which, by a valid exercise of its
police power, has in effect any control or system of control on the
price at which accommodations are offered for rent or lease, may
require by statute or ordinance, or by regulation as specified in
Section 7060.5, that the owner notify the entity of an intention to
withdraw those accommodations from rent or lease and may require that
the notice contain statements, under penalty of perjury, providing
information on the number of accommodations, the address or location
of those accommodations, the name or names of the tenants or lessees
of the accommodations, and the rent applicable to each residential
rental unit.
   Information respecting the name or names of the tenants, the rent
applicable to any residential rental unit, or the total number of
accommodations, is confidential information and for purposes of this
chapter shall be treated as confidential information by any public
entity for purposes of the Information Practices Act of 1977, as
contained in Chapter 1 (commencing with Section 1798) of Title 1.8 of
Part 4 of Division 3 of the Civil Code.  A public entity shall, to
the extent required by the preceding sentence, be considered an
"agency," as defined by subdivision (d) of Section 1798.3 of the
Civil Code.
   (b) The statute, ordinance, or regulation of the public entity may
require that the owner record with the county recorder a memorandum
summarizing the provisions, other than the confidential provisions,
of the notice in a form which shall be prescribed by the statute,
ordinance, or regulation, and require a certification with that
notice that actions have been initiated as required by law to
terminate any existing tenancies.  In that situation, the date on
which the accommodations are withdrawn from rent or lease for
purposes of this chapter is 120 days from the delivery in person or
by first-class mail of that notice to the public entity.  However, if
the tenant or lessee is at least 62 years of age or disabled, and
has lived in his or her accommodations for at least one year prior to
the date of delivery to the public entity of the notice of intent to
withdraw pursuant to subdivision (a), then the date of withdrawal of
the accommodations of that tenant or lessee shall be extended to one
year after the date of delivery of that notice to the public entity,
provided that the tenant or lessee gives written notice of his or
her entitlement to an extension to the owner within 60 days of the
date of delivery to the public entity of the notice of intent to
withdraw.  In that situation, the following provisions shall apply:
   (1) The tenancy shall be continued on the same terms and
conditions as existed on the date of delivery to the public entity of
the notice of intent to withdraw, subject to any adjustments
otherwise available under the system of control.
   (2) No party shall be relieved of the duty to perform any
obligation under the lease or rental agreement.
   (3) The owner may elect to extend the date of withdrawal on any
other accommodations up to one year after date of delivery to the
public entity of the notice of intent to withdraw, subject to
paragraphs (1) and (2).
   (4) Within 30 days of the notification by the tenant or lessee to
the owner of his or her entitlement to an extension, the owner shall
give written notice to the public entity of the claim that the tenant
or lessee is entitled to stay in their accommodations for one year
after date of delivery to the public entity of the notice of intent
to withdraw.
   (5) Within 90 days of date of delivery to the public entity of the
notice of intent to withdraw, the owner shall give written notice to
the public entity and the affected tenant or lessee of the owner's
election to extend the date of withdrawal and the new date of
withdrawal under paragraph (3).
   (c) The statute, ordinance, or regulation of the public entity
adopted pursuant to subdivision (a) may also require the owner to
notify any tenant or lessee displaced pursuant to this chapter of the
following:
   (1) That the public entity has been notified pursuant to
subdivision (a).
   (2) That the notice to the public entity specified the name and
the amount of rent paid by the tenant or lessee as an occupant of the
accommodations.
   (3) The amount of rent the owner specified in the notice to the
public entity.
   (4) Notice to the tenant or lessee of his or her rights under
paragraph (4) of subdivision (a) of Section 7060.2.
   (5) Notice to the tenant or lessee of the following:
   (A) If the tenant or lessee is at least 62 years of age or
disabled, and has lived in his or her accommodations for at least one
year prior to the date of delivery to the public entity of the
notice of intent to withdraw, then tenancy shall be extended to one
year after date of delivery to the public entity of the notice of
intent to withdraw, provided that the tenant or lessee gives written
notice of his or her entitlement to the owner within 60 days of date
of delivery to the public entity of the notice of intent to withdraw.

   (B) The extended tenancy shall be continued on the same terms and
conditions as existed on date of delivery to the public entity of the
notice of intent to withdraw, subject to any adjustments otherwise
available under the system of control.
   (C) No party shall be relieved of the duty to perform any
obligation under the lease or rental agreement during the extended
tenancy.
   (d) The statute, ordinance, or regulation of the public entity
adopted pursuant to subdivision (a) may also require the owner to
notify the public entity in writing of an intention to again offer
the accommodations for rent or lease.
  SEC. 4.  Section 7060.7 of the Government Code is amended to read:

   7060.7.  It is the intent of the Legislature in enacting this
chapter to supersede any holding or portion of any holding in Nash v.
City of Santa Monica, 37 Cal.3d 97 to the extent that the holding,
or portion of the holding, conflicts with this chapter, so as to
permit landlords to go out of business.  However, this act is not
otherwise intended to do any of the following:
   (a) Interfere with local governmental authority over land use,
including regulation of the conversion of existing housing to
condominiums or other subdivided interests or to other nonresidential
use following its withdrawal from rent or lease under this chapter.

   (b) Preempt local or municipal environmental or land use
regulations, procedures, or controls that govern the demolition and
redevelopment of residential property.
   (c) Override procedural protections designed to prevent abuse of
the right to evict tenants.
   (d) Permit an owner to withdraw from rent or lease less than all
of the accommodations, as defined by paragraph (1) or (2) of
subdivision (b) of Section 7060.
   (e) Grant to any public entity any power which it does not possess
independent of this chapter to control or establish a system of
control on the price at which accommodations may be offered for rent
or lease, or to diminish any such power which that public entity may
possess, except as specifically provided in this chapter.
   (f) Alter in any way either Section 65863.7 relating to the
withdrawal of accommodations which comprise a mobilehome park from
rent or lease or subdivision (f) of Section 798.56 of the Civil Code
relating to a change of use of a mobilehome park.
  SEC. 5.  Section 65009 of the Government Code is amended to read:
   65009.  (a) (1) The Legislature finds and declares that there
currently is a housing crisis in California and it is essential to
reduce delays and restraints upon expeditiously completing housing
projects.
   (2) The Legislature further finds and declares that a legal action
or proceeding challenging a decision of a city, county, or city and
county has a chilling effect on the confidence with which property
owners and local governments can proceed with projects.  Legal
actions or proceedings filed to attack, review, set aside, void, or
annul a decision of a city, county, or city and county pursuant to
this division, including, but not limited to, the implementation of
general plan goals and policies that provide incentives for
affordable housing, open-space and recreational opportunities, and
other related public benefits, can prevent the completion of needed
developments even though the projects have received required
governmental approvals.
   (3) The purpose of this section is to provide certainty for
property owners and local governments regarding decisions made
pursuant to this division.
   (b) (1) In an action or proceeding to attack, review, set aside,
void, or annul a finding, determination, or decision of a public
agency made pursuant to this title at a properly noticed public
hearing, the issues raised shall be limited to those raised in the
public hearing or in written correspondence delivered to the public
agency prior to, or at, the public hearing, except where the court
finds either of the following:
   (A) The issue could not have been raised at the public hearing by
persons exercising reasonable diligence.
   (B) The body conducting the public hearing prevented the issue
from being raised at the public hearing.
   (2) If a public agency desires the provisions of this subdivision
to apply to a matter, it shall include in any public notice issued
pursuant to this title a notice substantially stating all of the
following:  "If you challenge the (nature of the proposed action) in
court, you may be limited to raising only those issues you or someone
else raised at the public hearing described in this notice, or in
written correspondence delivered to the (public entity conducting the
hearing) at, or prior to, the public hearing."
   (3) The application of this subdivision to causes of action
brought pursuant to subdivision (d) applies only to the final action
taken in response to the notice to the city or county clerk.  If no
final action is taken, then the issue raised in the cause of action
brought pursuant to subdivision (d) shall be limited to those matters
presented at a properly noticed public hearing or to those matters
specified in the notice given to the city or county clerk pursuant to
subdivision (d), or both.
   (c) (1) Except as provided in subdivision (d), no action or
proceeding shall be maintained in any of the following cases by any
person unless the action or proceeding is commenced and service is
made on the legislative body within 90 days after the legislative
body's decision:
   (A) To attack, review, set aside, void, or annul the decision of a
legislative body to adopt or amend a general or specific plan.  This
paragraph does not apply where an action is brought based upon the
complete absence of a general plan or a mandatory element thereof,
but does apply to an action attacking a general plan or mandatory
element thereof on the basis that it is inadequate.
   (B) To attack, review, set aside, void, or annul the decision of a
legislative body to adopt or amend a zoning ordinance.
   (C) To determine the reasonableness, legality, or validity of any
decision to adopt or amend any regulation attached to a specific
plan.
   (D) To attack, review, set aside, void, or annul the decision of a
legislative body to adopt, amend, or modify a development agreement.
  An action or proceeding to attack, review, set aside, void, or
annul the decisions of a legislative body to adopt, amend, or modify
a development agreement shall only extend to the specific portion of
the development agreement that is the subject of the adoption,
amendment, or modification.  This paragraph applies to development
agreements, amendments, and modifications adopted on or after January
1, 1996.
   (E) To attack, review, set aside, void, or annul any decision on
the matters listed in Sections 65901 and 65903, or to determine the
reasonableness, legality, or validity of any condition attached to a
variance, conditional use permit, or any other permit.
   (F) Concerning any of the proceedings, acts, or determinations
taken, done, or made prior to any of the decisions listed in
subparagraphs (A), (B), (C), (D), and (E).
   (2) In the case of an action or proceeding challenging the
adoption or revision of a housing element pursuant to this
subdivision, the action or proceeding may, in addition, be maintained
if it is commenced and service is made on the legislative body
within 60 days following the date that the Department of Housing and
Community Development reports its findings pursuant to subdivision
(h) of Section 65585.
   (d) An action or proceeding shall be commenced and the legislative
body served within one year after the accrual of the cause of action
as provided in this subdivision, if the action or proceeding meets
both of the following requirements:
   (1) It is brought in support of or to encourage or facilitate the
development of housing that would increase the community's supply of
housing affordable to persons and families with low or moderate
incomes, as defined in Section 50079.5 of the Health and Safety Code,
or with very low incomes, as defined in Section 50105 of the Health
and Safety Code, or middle-income households, as defined in Section
65008 of this code.  This subdivision is not intended to require that
the action or proceeding be brought in support of or to encourage or
facilitate a specific housing development project.
   (2) It is brought with respect to actions taken pursuant to
Article 10.6 (commencing with Section 65580) of Chapter 3 of this
division, pursuant to Section 65589.5, 65863.6, 65915, or 66474.2 or
pursuant to Chapter 4.2 (commencing with Section 65913).
   A cause of action brought pursuant to this subdivision shall not
be maintained until 60 days have expired following notice to the city
or county clerk by the party bringing the cause of action, or his or
her representative, specifying the deficiencies of the general plan,
specific plan, or zoning ordinance.  A cause of action brought
pursuant to this subdivision shall accrue 60 days after notice is
filed or the legislative body takes a final action in response to the
notice, whichever occurs first.  A notice or cause of action brought
by one party pursuant to this subdivision shall not bar filing of a
notice and initiation of a cause of action by any other party.
   (e) Upon the expiration of the time limits provided for in this
section, all persons are barred from any further action or
proceeding.
   (f) Notwithstanding Sections 65700 and 65803, or any other
provision of law, this section shall apply to charter cities.
   (g) Except as provided in subdivision (d), this section shall not
affect any law prescribing or authorizing a shorter period of
limitation than that specified herein.
   (h) Except as provided in paragraph (4) of subdivision (c), this
section shall be applicable to those decisions of the legislative
body of a city, county, or city and county made pursuant to this
division on or after January 1, 1984.
  SEC. 6.  Section 65589.5 of the Government Code is amended to read:

   65589.5.  (a) The Legislature finds all of the following:
   (1) The lack of affordable housing is a critical problem which
threatens the economic, environmental, and social quality of life in
California.
   (2) California housing has become the most expensive in the
nation.  The excessive cost of the state's housing supply is
partially caused by activities and policies of many local governments
which limit the approval of affordable housing, increase the cost of
land for affordable housing, and require that high fees and
exactions be paid by producers of potentially affordable housing.
   (3) Among the consequences of those actions are discrimination
against low-income and minority households, lack of housing to
support employment growth, imbalance in jobs and housing, reduced
mobility, urban sprawl, excessive commuting, and air quality
deterioration.
   (4) Many local governments do not give adequate attention to the
economic, environmental, and social costs of decisions which result
in disapproval of affordable housing projects, reduction in density
of affordable housing projects, and excessive standards for
affordable housing projects.
   (b) It is the policy of the state that a local government not
reject or make infeasible affordable housing developments which
contribute to meeting the housing need determined pursuant to this
article without a thorough analysis of the economic, social, and
environmental effects of the action and without meeting the
provisions of subdivision (d).
   (c) The Legislature also recognizes that premature and unnecessary
development of agricultural lands to urban uses continues to have
adverse effects on the availability of those lands for food and fiber
production and on the economy of the state.  Furthermore, it is the
policy of the state that development should be guided away from prime
agricultural lands; therefore, in implementing this section, local
jurisdictions should encourage, to the maximum extent practicable, in
filling existing urban areas.
   (d) A local agency shall not disapprove a housing development
project affordable to very low, low- or moderate-income households or
condition approval in a manner which renders the project infeasible
for development for the use of very low, low- or moderate-income
households unless it makes written findings, based upon substantial
evidence in the record, as to one of the following:
   (1) The jurisdiction has adopted a housing element pursuant to
this article that has been revised in accordance with Section 65588
and that is in substantial compliance with this article, and the
development project is not needed for the jurisdiction to meet its
share of the regional housing need for very low, low-, or
moderate-income housing.
   (2) The development project as proposed would have a specific,
adverse impact upon the public health or safety, and there is no
feasible method to satisfactorily mitigate or avoid the specific
adverse impact without rendering the development unaffordable to low-
and moderate-income households.  As used in this paragraph, a
"specific, adverse impact" means a significant, quantifiable, direct,
and unavoidable impact, based on objective, identified written
public health or safety standards, policies, or conditions as they
existed on the date the application was deemed complete.
   (3) The denial of the project or imposition of conditions is
required in order to comply with specific state or federal law, and
there is no feasible method to comply without rendering the
development unaffordable to low- and moderate-income households.
   (4) Approval of the development project would increase the
concentration of lower income households in a neighborhood that
already has a disproportionately high number of lower income
households and there is no feasible method of approving the
development at a different site, including those sites identified
pursuant to paragraph (1) of subdivision (c) of Section 65583,
without rendering the development unaffordable to low- and
moderate-income households.
   (5) The development project is proposed on land zoned for
agriculture or resource preservation which is surrounded on at least
two sides by land being used for agricultural or resource
preservation purposes, or which does not have adequate water or
wastewater facilities to serve the project.
   (6) The development project is inconsistent with both the
jurisdiction's zoning ordinance and general plan land use designation
as specified in any element of the general plan as it existed on the
date the application was deemed complete, and the jurisdiction has
adopted a housing element pursuant to this article.
   (e) Nothing in this section shall be construed to relieve the
local agency from complying with the Congestion Management Program
required by Chapter 2.6 (commencing with Section 65088) of Division 1
of Title 7 or the
California Coastal Act (Division 20 (commencing with Section 30000)
of the Public Resources Code).  Neither shall anything in this
section be construed to relieve the local agency from making one or
more of the findings required pursuant to Section 21081 of the Public
Resources Code or otherwise complying with the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code).
   (f) Nothing in this section shall be construed to prohibit a local
agency from requiring the development project to comply with written
development standards, conditions, and policies appropriate to, and
consistent with, meeting the quantified objectives relative to the
development of housing, as required in the housing element pursuant
to subdivision (b) of Section 65583.  Nothing in this section shall
be construed to prohibit a local agency from imposing fees and other
exactions otherwise authorized by law which are essential to provide
necessary public services and facilities to the development project.

   (g) This section shall be applicable to charter cities because the
Legislature finds that the lack of affordable housing is a critical
statewide problem.
   (h) The following definitions apply for the purposes of this
section:
   (1) "Feasible" means capable of being accomplished in a successful
manner within a reasonable period of time, taking into account
economic, environmental, social, and technological factors.
   (2) "Affordable to very low, low-, or moderate-income households"
means that either (A) at least 20 percent of the total units shall be
sold or rented to lower income households, as defined in Section
50079.5 of the Health and Safety Code, or (B) 100 percent of the
units shall be sold or rented to moderate-income households as
defined in Section 50093 of the Health and Safety Code, or
middle-income households, as defined in Section 65008 of this code.
Housing units targeted for lower income households shall be made
available at a monthly housing cost that does not exceed 30 percent
of 60 percent of area median income with adjustments for household
size made in accordance with the adjustment factors on which the
lower income eligibility limits are based.  Housing units targeted
for persons and families of moderate income shall be made available
at a monthly housing cost that does not exceed 30 percent of 100
percent of area median income with adjustments for household size
made in accordance with the adjustment factors on which the moderate
income eligibility limits are based.
   (3) "Area median income" shall mean area median income as
periodically established by the Department of Housing and Community
Development pursuant to Section 50093 of the Health and Safety Code.
The developer shall provide sufficient legal commitments to ensure
continued availability of units for very low or low-income households
in accordance with the provisions of this subdivision for 30 years.

   (4) "Neighborhood" means a planning area commonly identified as
such in a community's planning documents, and identified as a
neighborhood by the individuals residing and working within the
neighborhood.  Documentation demonstrating that the area meets the
definition of neighborhood may include a map prepared for planning
purposes which lists the name and boundaries of the neighborhood.
   (5) "Disapprove the development project" includes any instance in
which a local agency does either of the following:
   (A) Votes on a proposed housing development project application
and the application is disapproved.
   (B) Fails to comply with the time periods specified in
subparagraph (B) of paragraph (1) of subdivision (a) of Section
65950.  An extension of time pursuant to Article 5 (commencing with
Section 65950) shall be deemed to be an extension of time pursuant to
this paragraph.
   (i) If any city, county, or city and county denies approval or
imposes restrictions, including a reduction of allowable densities or
the percentage of a lot which may be occupied by a building or
structure under the applicable planning and zoning in force at the
time the application is deemed complete pursuant to Section 65943,
which have a substantial adverse effect on the viability or
affordability of a housing development affordable to very low, low-,
or moderate-income households, and the denial of the development or
the imposition of restrictions on the development is the subject of a
court action which challenges the denial, then the burden of proof
shall be on the local legislative body to show that its decision is
consistent with the findings as described in subdivision (d) and that
the findings are supported by substantial evidence in the record.
   (j) When a proposed housing development project complies with
applicable, objective general plan and zoning standards and criteria
in effect at the time that the housing development project's
application is determined to be complete, but the local agency
proposes to disapprove the project or to approve it upon the
condition that the project be developed at a lower density, the local
agency shall base its decision regarding the proposed housing
development project upon written findings supported by substantial
evidence on the record that both of the following conditions exist:
   (1) The housing development project would have a specific, adverse
impact upon the public health or safety unless the project is
disapproved or approved upon the condition that the project be
developed at a lower density.  As used in this paragraph, a
"specific, adverse impact" means a significant, quantifiable, direct,
and unavoidable impact, based on objective, identified written
public health or safety standards, policies, or conditions as they
existed on the date the application was deemed complete.
   (2) There is no feasible method to satisfactorily mitigate or
avoid the adverse impact identified pursuant to paragraph (1), other
than the disapproval of the housing development project or the
approval of the project upon the condition that it be developed at a
lower density.
   (k) If in any action brought to enforce the provisions of this
section, a court finds that the local agency disapproved a project or
conditioned its approval in a manner rendering it infeasible for the
development of very low, low-, or moderate-income households without
properly making the findings required by this section or without
making sufficient findings supported by substantial evidence, the
court shall issue an order or judgment compelling compliance with
this section within 60 days, including, but not limited to, an order
that the local agency take action on the development project.  The
court shall retain jurisdiction to ensure that its order or judgment
is carried out.  If the court determines that its order or judgment
has not been carried out within 60 days, the court may issue further
orders as provided by law to ensure that the purposes and policies of
this section are fulfilled.
   (l) In any action, the record of the proceedings before the local
agency shall be filed as expeditiously as possible and,
notwithstanding Section 1094.6 of the Code of Civil Procedure, all or
part of the record may be filed (1) by the petitioner with the
petition or petitioner's points and authorities, (2) by the
respondent with respondent's points and authorities, (3) after
payment of costs by the petitioner, or (4) as otherwise directed by
the court.  If the expense of preparing the record has been borne by
the petitioner and the petitioner is the prevailing party, the
expense shall be taxable as costs.
  SEC. 7.  Section 65915 of the Government Code is amended to read:
   65915.  (a) When a developer of housing proposes a housing
development within the jurisdiction of the local government, the
city, county, or city and county shall provide the developer
incentives for the production of lower income housing units within
the development if the developer meets the requirements set forth in
subdivisions (b) and (c).  The city, county, or city and county shall
adopt an ordinance which shall specify the method of providing
developer incentives.
   (b) When a developer of housing agrees or proposes to construct at
least (1) 20 percent of the total units of a housing development for
lower income households, as defined in Section 50079.5 of the Health
and Safety Code, or (2) 10 percent of the total units of a housing
development for very low income households, as defined in Section
50105 of the Health and Safety Code, or (3) 50 percent of the total
dwelling units of a housing development for qualifying residents, as
defined in Section 51.3 of the Civil Code, a city, county, or city
and county shall either (1) grant a density bonus and at least one of
the concessions or incentives identified in subdivision (h) unless
the city, county, or city and county makes a written finding that the
additional concession or incentive is not required in order to
provide for affordable housing costs as defined in Section 50052.5 of
the Health and Safety Code or for rents for the targeted units to be
set as specified in subdivision (c), or (2) provide other incentives
of equivalent financial value based upon the land cost per dwelling
unit.
   (c) A developer shall agree to and the city, county, or city and
county shall ensure continued affordability of all lower income
density bonus units for 30 years or a longer period of time if
required by the construction or mortgage financing assistance
program, mortgage insurance program, or rental subsidy program.
Those units targeted for lower income households, as defined in
Section 50079.5 of the Health and Safety Code, shall be affordable at
a rent that does not exceed 30 percent of 60 percent of area median
income.  Those units targeted for very low income households, as
defined in Section 50105 of the Health and Safety Code, shall be
affordable at a rent that does not exceed 30 percent of 50 percent of
area median income.  If a city, county, or city and county does not
grant at least one additional concession or incentive pursuant to
paragraph (1) of subdivision (b), the developer shall agree to and
the city, county, or city and county shall ensure continued
affordability for 10 years of all lower income housing units
receiving a density bonus.
   (d) A developer may submit to a city, county, or city and county a
preliminary proposal for the development of housing pursuant to this
section prior to the submittal of any formal requests for general
plan amendments, zoning amendments, or subdivision map approvals.
The city, county, or city and county shall, within 90 days of receipt
of a written proposal, notify the housing developer in writing of
the procedures under which it will comply with this section.  The
city, county, or city and county shall establish procedures for
carrying out this section, which shall include legislative body
approval of the means of compliance with this section.  The city,
county, or city and county shall also establish procedures for
waiving or modifying development and zoning standards which would
otherwise inhibit the utilization of the density bonus on specific
sites.  These procedures shall include, but not be limited to, such
items as minimum lot size, side yard setbacks, and placement of
public works improvements.
   (e) The housing developer shall show that the waiver or
modification is necessary to make the housing units economically
feasible.
   (f) For the purposes of this chapter, "density bonus" means a
density increase of at least 25 percent, unless a lesser percentage
is elected by the developer, over the otherwise maximum allowable
residential density under the applicable zoning ordinance and land
use element of the general plan as of the date of application by the
developer to the city, county, or city and county.  The granting of a
density bonus shall not be interpreted, in and of itself, to require
a general plan amendment, zoning change, or other discretionary
approval.  The density bonus shall not be included when determining
the number of housing units which is equal to 10 or 20 percent of the
total.  The density bonus shall apply to housing developments
consisting of five or more dwelling units.
   (g) "Housing development," as used in this section, means one or
more groups of projects for residential units constructed in the
planned development of a city, county, or city and county.  For
purposes of calculating a density bonus, the residential units do not
have to be based upon individual subdivision maps or parcels.  The
density bonus shall be permitted in geographic areas of the housing
development other than the areas where the units for the lower income
households are located.
   (h) For purposes of this chapter, concession or incentive means
any of the following:
   (1) A reduction in site development standards or a modification of
zoning code requirements or architectural design requirements which
exceed the minimum building standards approved by the California
Building Standards Commission as provided in Part 2.5 (commencing
with Section 18901) of Division 13 of the Health and Safety Code,
including, but not limited to, a reduction in setback and square
footage requirements and in the ratio of vehicular parking spaces
that would otherwise be required.
   (2) Approval of mixed use zoning in conjunction with the housing
project if commercial, office, industrial, or other land uses will
reduce the cost of the housing development and if the commercial,
office, industrial, or other land uses are compatible with the
housing project and the existing or planned development in the area
where the proposed housing project will be located.
   (3) Other regulatory incentives or concessions proposed by the
developer or the city, county, or city and county which result in
identifiable cost reductions.
   This subdivision does not limit or require the provision of direct
financial incentives for the housing development, including the
provision of publicly owned land, by the city, county, or city and
county, or the waiver of fees or dedication requirements.
   (i) If a developer agrees to construct both 20 percent of the
total units for lower income households and 10 percent of the total
units for very low income households, the developer is entitled to
only one density bonus and at least one additional concession or
incentive identified in Section 65913.4 under this section although
the city, city and county, or county may, at its discretion, grant
more than one density bonus.
  SEC. 8.  Section 65950 of the Government Code is amended to read:
   65950.  (a) Any public agency that is the lead agency for a
development project shall approve or disapprove the project within
whichever of the following periods is applicable:
   (1) One hundred eighty days from the date of certification by the
lead agency of the environmental impact report if an environmental
impact report is prepared pursuant to Section 21100 or 21151 of the
Public Resources Code for the development project.
   (2) Ninety days from the date of certification by the lead agency
of the environmental impact report if an environmental impact report
is prepared pursuant to Section 21100 or 21151 of the Public
Resources Code for the development project and all of the following
conditions are met:
   (A) The development project is affordable to very low or
low-income households, as defined by Sections 50105 and 50079.5 of
the Health and Safety Code, respectively.
   (B) Prior to the application being deemed complete for the
development project pursuant to Article 3 (commencing with Section
65940), the lead agency received written notice from the project
applicant that an application has been made or will be made for an
allocation or commitment of financing, tax credits, bond authority,
or other financial assistance from a public agency or federal agency,
and the notice specifies the financial assistance that has been
applied for or will be applied for and the deadline for application
for that assistance, the requirement that one of the approvals of the
development project by the lead agency is a prerequisite to the
application for or approval of the application for financial
assistance, and that the financial assistance is necessary for the
project to be affordable as required pursuant to subparagraph (A).
   (C) There is confirmation that the application has been made to
the public agency or federal agency prior to certification of the
environmental impact report.
   (3) Sixty days from the date of adoption by the lead agency of the
negative declaration if a negative declaration is completed and
adopted for the development project.
   (4) Sixty days from the determination by the lead agency that the
project is exempt from the California Environmental Quality Act
(Division 13 (commencing with Section 21000) of the Public Resources
Code) if the project is exempt from the California Environmental
Quality Act.
   (b) Nothing in this section precludes a project applicant and a
public agency from mutually agreeing in writing to an extension of
any time limit provided by this section pursuant to Section 65957.
   (c) For purposes of this section, "lead agency" and "negative
declaration" shall have the same meaning as those terms are defined
in Sections 21067 and 21064 of the Public Resources Code,
respectively.
  SEC. 9.  The Legislature finds and declares both of the following:

   (a) The amendments made by this act to subdivision (c) of Section
65009 of the Government Code, excluding the portion of the amendment
related to middle-income households, are declaratory of existing law.

   (b) The amendments made by this act to Section 65915 of the
Government Code are declaratory of existing law.
  SEC. 10.  Sections 1 to 4, inclusive, of this act shall apply only
to accommodations where the date of delivery to the public entity of
the notice of intent to withdraw pursuant to subdivision (a) of
Section 7060.4 of the Government Code is on or after January 1, 2000.
  Chapter 12.75 (commencing with Section 7060) of Division 7 of Title
1 of the Government Code as it existed prior to this act shall
continue to apply to any accommodations that are withdrawn pursuant
to a notice of intent to withdraw that has been delivered to a public
entity prior to January 1, 2000.
  SEC. 11.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.