BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 305
                                                                  Page  1

          Date of Hearing:   April 23, 2003

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Sim?n Salinas, Chair
                    AB 305 (Mullin) - As Amended:  March 24, 2003
           
          SUBJECT  :   Density bonuses: child care facilities.

           SUMMARY  :   Requires a city or county to grant an additional  
          density bonus, concession, or incentive to a developer of  
          housing, otherwise entitled to a density bonus or other  
          incentive 
          if that developer includes a child care facility as part of the  
          housing development, unless the city or county makes a finding  
          that the existing area has adequate child care facilities.

           EXISTING LAW  :

          1)Requires a city or county to grant a density bonus and at  
            least one other specified incentive, or other housing  
            incentives of equivalent value, to a developer who agrees to  
            construct an affordable housing development of five or more  
            units unless the local government makes a finding that the  
            bonus and incentives are not needed to achieve affordability.

          2)Provides that to qualify for the benefits of this provision, a  
            proposed housing development must contain at least 20% of the  
            units affordable to low income households, 10% of the units  
            affordable to very low income households, or 50% of the units  
            reserved for seniors.

          3)Requires that the density bonus must be at least 25% over the  
            existing maximum density 
          for the site, unless a lesser amount is elected by the  
            developer.

          4)Provides that local government incentives may include:

             a)   Reduction in site development standards;

             b)   Modification of zoning code requirements (including a  
               reduction in setbacks, square footage requirements, or  
               parking spaces, or architectural design requirements that  
               exceed the minimum building standards);









                                                                  AB 305
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             c)   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 such nonresidential uses are compatible with the  
               project;

             d)   Other regulatory incentives or concessions proposed by  
               the developer or the city or county that result in  
               identifiable cost reductions. 

           FISCAL EFFECT  :   None

           COMMENTS  :

          1)California's current housing shortage is well documented.  To  
            keep up with demand, the state needs to build over 100,000  
            more housing units per year than it currently produces.  Lack  
            of available affordable housing poses a danger to the state's  
            economy.  Employers will find it increasingly difficult to  
            attract and retain a qualified workforce if workers are unable  
            to find affordable housing near their jobs.

          2)According to the 2001 California Child Care Portfolio, 55% of  
            California's children up to the age of 13 live with either two  
            working parents or a working single head of household.  Only  
            one slot at a licensed child care facility or family child  
            care home exists for every 4.6 of these children.  Only 5% of  
            these slots are for infants.  Even if a slot is available, the  
            cost of the child care is steep and, in some cases,  
            prohibitive.  In every county in California, the cost of  
            putting an infant or preschooler in full-time care exceeds the  
            fair market rent of a 
          two-bedroom apartment.  The author argues that builders need an  
            incentive to build child care in most urban areas, because of  
            the high cost of land.

          3)To help address the affordable housing shortage, the  
            Legislature enacted the density bonus law to encourage  
            development of more housing units.  This bill seeks to allow  
            local governments to offer additional density bonuses and  
            other incentives to builders of affordable housing who also  
            include child care facilities within the development. 

          4)This bill has been double-referred to both the Committees on  
            Housing and Community Development, where it was heard and  








                                                                  AB 305
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            passed with a 6-3 vote on April 9, 2003, and to Local  
            Government.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          CA Federation of Teachers 

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    J. Stacey Sullivan / L. GOV. / (916)  
          319-3958