BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 305
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 305 (Mullin)
          As Amended July 15, 2003
          Majority vote
           
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          |ASSEMBLY:  |49-28|(May 1, 2003)   |SENATE: |23-14|(August 21,    |
          |           |     |                |        |     |2003)          |
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           Original Committee Reference:    H. & C.D.  

           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.  

           The Senate amendments  redraft the density bonus provisions for  
          child care according to the following:

          1)Provide that when a developer seeks to build a housing  
            development that otherwise qualifies for a density bonus and  
            includes a child care facility the local government shall  
            grant either of the following:

             a)   An additional density bonus of residential space that is  
               equal to or greater than the child care facility; or, 

             b)   An additional incentive that contributes to the economic  
               feasibility of the child care facility.

          2)Require the local government to place the following conditions  
            on approval:

             a)   The child care facility shall remain in operation for as  
               long as the density bonus units are to remain affordable;  
               and,

             b)   The children who attend the child care facility shall be  
               of the same proportion or greater than the income  
               distribution reflected in the density bonus units.









                                                                  AB 305
                                                                  Page  2

          3)Defines "child care facility" as a child day care facility  
            other than a family day care home, including, but not limited  
            to, infant centers, preschools, extended day care facilities,  
            and schoolage child care centers.

           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  
            (Government Code Section 65915).

          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 (Government Code Section 65915).

          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 (Government Code Section 65915).

          4)Provides that local government incentives may include  
            (Government Code Section 65915):

             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);

             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; or,

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








                                                                 AB 305
                                                                  Page  3

          AS PASSED BY THE ASSEMBLY  , this bill required 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.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  California's current housing shortage is well  
          documented.  In addition to the lack of affordable housing,  
          according to the author, the demand for licensed day care also  
          exceeds supply.  The author asserts that there are 4.06 million  
          children in need of child care and only 886,871 licensed day  
          care slots.  The state average cost of child care is $8,521  
          annually and for the larger urban counties the average cost is  
          approximately $10,000 annually.  The author argues that builders  
          need an incentive to build child care in most urban areas  
          because of the high cost of land (e.g. in San Mateo the average  
          home sells for approximately $600,000).  California is the  
          largest state by population and still among the fastest growing.  
           

          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. 


           Analysis Prepared by  :    Hubert Bower / H. & C.D. / (916)  
          319-2085                                               FN:  
          0002477