BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                          Senator Tom Torlakson, Chair


          BILL NO:  AB 305                      HEARING:  7/2/03
          AUTHOR:  Mullin                       FISCAL:  No
          VERSION:  6/24/03                     CONSULTANT:  Detwiler
          
                   DENSITY BONUSES AND CHILD CARE FACILITIES

                           Background and Existing Law  

          The Planning and Zoning Law requires every city and county  
          to adopt a general plan, with specified contents.  Local  
          officials' land use decisions -- zoning, subdivisions, use  
          permits, public works -- must be consistent with their  
          general plans.

          Local officials use a practice called incentive zoning to  
          entice private investors to meet public goals by rewarding  
          them with more developable space.  If an office project  
          includes an attractive street-level plaza, a city might  
          allow the developer to build a taller building with more  
          leasable office space.  Everyone profits.

          The Legislature created the housing density bonus as an  
          exception to the usual consistency requirement (AB 1151,  
          Roos, 1979).  When a developer agrees to build more  
          affordable housing, local officials must grant the  
          developer more units than the maximum density allowed by  
          the general plan and zoning,  and  at least one other  
          concession or incentive.  Alternatively, local officials  
          can provide incentives or concessions of equal financial  
          value.

          If the project sets aside:
                 20% of the units for lower income households, the  
               density bonus is 25% more units  and  at least one other  
               concession.
                 10% of the units for very low income households,  
               the density bonus is 25% more units  and  at least one  
               other concession.
                 50% of the units for senior citizens, the density  
               bonus is 25% more units  and  at least one other  
               concession.
                 20% of the units in a condominium project for  
               moderate income families, the density bonus is 10%  
               more units  and  at least one other concession.




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          The housing density bonus statute allows concessions that:
                 Reduce development, zoning, or design standards.
                 Allow mixed use zoning that reduces housing costs.
                 Provide other incentives or concession that reduce  
               costs.

          More working parents, longer commutes, and rising housing  
          costs have boosted the demand for child care facilities.   
          Advocates say that integrating child care facilities into  
          mixed-use developments can help.  They want to apply the  
          approach of the housing density bonus to reward builders  
          who provide child care facilities.
                                   Proposed Law  

          Assembly Bill 305 requires a city or county to grant either  
          an additional density bonus, or an additional concession or  
          incentive to an applicant who includes a child care  
          facility as part of the proposed housing project.

          If the city or county finds that the existing area has  
          adequate child care facilities, AB 305 allows local  
          officials to avoid this additional density bonus.

          The bill defines "child care facility" to exclude a family  
          day care home but include infant centers, preschools,  
          extended day care centers, and school age child care  
          centers.


                                     Comments  

          1.   Filling the need  .  California's families want more  
          child care opportunities.  Meeting this goal begins with  
          harnessing the power of the development industry to build  
          more child care facilities.  When residential developers  
          integrate child care facilities into their subdivisions,  
          apartment projects, and condominium developments, residents  
          get child care closer to home.  By adapting the concept of  
          incentive zoning to child care, AB 305 rewards builders who  
          make infant centers, preschools, and other care centers  
          part of their projects.  Following this quid-pro-quo,  
          everyone wins: families get closer child care and builders  
          get more profitable projects.

          2.   Violates plans' integrity  .  State law requires cities  





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          and counties to adhere to the principal of vertical  
          consistency; major land use decisions must be consistent  
          with local general plans.  Private developments and public  
          works projects must carry out the plans' goals, policies,  
          and standards.  That's why the courts call local general  
          plans the constitutions for community development.  But the  
          housing density bonus law violates the general plans'  
          integrity.  Private investors get to build more units than  
          public policy otherwise allows.  AB 305 also avoids general  
          plans' housing density standards, this time in the name of  
          building more child care facilities.  The Committee may  
          wish to consider whether the Legislature is sending mixed  
          messages to cities and counties: they must adopt balanced  
          general plans but a few favored interests get to ignore  
          community standards.  How can legislators insist on good  
          planning but then excuse some builders?

          3.   Two bonuses, too dense ?  AB 305 requires local  
          officials to "grant an additional density bonus" to a  
          builder who includes child care facilities in a housing  
          project that already qualifies for a density bonus.  If the  
          general plan and the maximum zoning density allow a 40-unit  
          apartment building and the applicant sets aside four units  
          (10%) for very low income tenants, the builder gets to put  
          up a 50-unit building (the 25% density bonus).  If the  
          project includes a child care facility, the builder gets a  
          total of 60 units (the additional 25% density bonus).  The  
          Committee may wish to consider whether building four very  
          low income units warrants a 50% jump in the maximum  
          density.

          4.   The missing link  .  The 1979 housing density bonus law  
          and its 2002 revisions reward investors who build  
          affordable housing for lower income, very low income, and  
          moderate income families, and for seniors (AB 1866, Wright,  
          2002).  But the density bonus for child care facilities in  
          AB 305 is not means-tested.  The bill does not require that  
          the child care facilities be available to low and moderate  
          income families.  Further, the bill does not link the new  
          density bonus to reducing the cost of child care  
          facilities.  The Committee may wish to consider an  
          amendment that requires at least 50% of the resulting child  
          care slots be available to children from low and very low  
          income families.

          5.  Double-referred  .  The Senate Rules Committee ordered  





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          the double-referral of AB 305.  On June 16, the Senate  
          Housing and Community Development Committee passed the bill  
          on a 6-2 vote.


                                 Assembly Actions 

          Assembly Housing & Community Development Committee:  6-3
          Assembly Local Government Committee:      5-3
          Assembly Floor:                                   49-28
           

                        Support and Opposition  (6/26/03)

           Support  :  California Child Care Resource and Referral  
          Network, California Federation of Teachers, California  
          Teachers Association.

           Opposition  :  Unknown.