BILL NUMBER: AB 2348 CHAPTERED
BILL TEXT
CHAPTER 724
FILED WITH SECRETARY OF STATE SEPTEMBER 23, 2004
APPROVED BY GOVERNOR SEPTEMBER 23, 2004
PASSED THE ASSEMBLY AUGUST 27, 2004
PASSED THE SENATE AUGUST 26, 2004
AMENDED IN SENATE AUGUST 23, 2004
AMENDED IN SENATE JUNE 24, 2004
AMENDED IN SENATE JUNE 16, 2004
AMENDED IN ASSEMBLY APRIL 16, 2004
INTRODUCED BY Assembly Member Mullin
FEBRUARY 19, 2004
An act to amend Sections 65583, 65583.1, 65589.5, and 65915 of,
and to add Section 65583.2 to, the Government Code, relating to
housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 2348, Mullin. Housing element: regional housing need.
(1) Existing law requires each city, county, or city and county to
prepare and adopt a general plan for its jurisdiction that contains
certain mandatory elements, including a housing element. One part of
the housing element is an assessment of housing needs and an
inventory of land suitable for residential development in meeting a
city's or county's share of the regional housing need, including
vacant sites and sites having potential for redevelopment, and an
analysis of the relationship of zoning facilities and services to
these sites. A city, county, or city and county is required to
submit a draft housing element or draft amendment to its housing
element to the Department of Housing and Community Development for a
determination of whether the draft complies with state law governing
housing elements.
This bill would revise the criteria for the inventory of sites to
require sites to be identified that can be developed for housing
within the planning period to accommodate that portion of a city's or
county's share of the regional housing need for all income levels,
as specified. The bill would expand the relocation assistance
available to persons displaced by sites identified for substantial
rehabilitation. By imposing additional duties upon local officials,
this bill would create a state-mandated local program.
The bill would also provide that the department is to evaluate a
proposed or adopted housing element for substantial compliance with
governing state law, and would revise the requirements that may be
imposed on a development project that contributes to meeting the
regional housing need.
(2) 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.
(3) This bill would become operative only if AB 2158 of the
2003-04 Regular Session is enacted and becomes operative.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 65583 of the Government Code is amended to
read:
65583. The housing element shall consist of an identification and
analysis of existing and projected housing needs and a statement of
goals, policies, quantified objectives, financial resources, and
scheduled programs for the preservation, improvement, and development
of housing. The housing element shall identify adequate sites for
housing, including rental housing, factory-built housing, and
mobilehomes, and shall make adequate provision for the existing and
projected needs of all economic segments of the community. The
element shall contain all of the following:
(a) An assessment of housing needs and an inventory of resources
and constraints relevant to the meeting of these needs. The
assessment and inventory shall include all of the following:
(1) An analysis of population and employment trends and
documentation of projections and a quantification of the locality's
existing and projected housing needs for all income levels. These
existing and projected needs shall include the locality's share of
the regional housing need in accordance with Section 65584.
(2) An analysis and documentation of household characteristics,
including level of payment compared to ability to pay, housing
characteristics, including overcrowding, and housing stock condition.
(3) An inventory of land suitable for residential development,
including vacant sites and sites having potential for redevelopment,
and an analysis of the relationship of zoning and public facilities
and services to these sites.
(4) An analysis of potential and actual governmental constraints
upon the maintenance, improvement, or development of housing for all
income levels and for persons with disabilities as identified in the
analysis pursuant to paragraph (6), including land use controls,
building codes and their enforcement, site improvements, fees and
other exactions required of developers, and local processing and
permit procedures. The analysis shall also demonstrate local efforts
to remove governmental constraints that hinder the locality from
meeting its share of the regional housing need in accordance with
Section 65584 and from meeting the need for housing for persons with
disabilities identified pursuant to paragraph (6).
(5) An analysis of potential and actual nongovernmental
constraints upon the maintenance, improvement, or development of
housing for all income levels, including the availability of
financing, the price of land, and the cost of construction.
(6) An analysis of any special housing needs, such as those of the
elderly, persons with disabilities, large families, farmworkers,
families with female heads of households, and families and persons in
need of emergency shelter.
(7) An analysis of opportunities for energy conservation with
respect to residential development.
(8) An analysis of existing assisted housing developments that are
eligible to change from low-income housing uses during the next 10
years due to termination of subsidy contracts, mortgage prepayment,
or expiration of restrictions on use. "Assisted housing
developments," for the purpose of this section, shall mean
multifamily rental housing that receives governmental assistance
under federal programs listed in subdivision (a) of Section 65863.10,
state and local multifamily revenue bond programs, local
redevelopment programs, the federal Community Development Block Grant
Program, or local in-lieu fees. "Assisted housing developments"
shall also include multifamily rental units that were developed
pursuant to a local inclusionary housing program or used to qualify
for a density bonus pursuant to Section 65916.
(A) The analysis shall include a listing of each development by
project name and address, the type of governmental assistance
received, the earliest possible date of change from low-income use
and the total number of elderly and nonelderly units that could be
lost from the locality's low-income housing stock in each year during
the 10-year period. For purposes of state and federally funded
projects, the analysis required by this subparagraph need only
contain information available on a statewide basis.
(B) The analysis shall estimate the total cost of producing new
rental housing that is comparable in size and rent levels, to replace
the units that could change from low-income use, and an estimated
cost of preserving the assisted housing developments. This cost
analysis for replacement housing may be done aggregately for each
five-year period and does not have to contain a project-by-project
cost estimate.
(C) The analysis shall identify public and private nonprofit
corporations known to the local government which have legal and
managerial capacity to acquire and manage these housing developments.
(D) The analysis shall identify and consider the use of all
federal, state, and local financing and subsidy programs which can be
used to preserve, for lower income households, the assisted housing
developments, identified in this paragraph, including, but not
limited to, federal Community Development Block Grant Program funds,
tax increment funds received by a redevelopment agency of the
community, and administrative fees received by a housing authority
operating within the community. In considering the use of these
financing and subsidy programs, the analysis shall identify the
amounts of funds under each available program which have not been
legally obligated for other purposes and which could be available for
use in preserving assisted housing developments.
(b) (1) A statement of the community's goals, quantified
objectives, and policies relative to the maintenance, preservation,
improvement, and development of housing.
(2) It is recognized that the total housing needs identified
pursuant to subdivision (a) may exceed available resources and the
community's ability to satisfy this need within the content of the
general plan requirements outlined in Article 5 (commencing with
Section 65300). Under these circumstances, the quantified objectives
need not be identical to the total housing needs. The quantified
objectives shall establish the maximum number of housing units by
income category that can be constructed, rehabilitated, and conserved
over a five-year time period.
(c) A program which sets forth a five-year schedule of actions the
local government is undertaking or intends to undertake to implement
the policies and achieve the goals and objectives of the housing
element through the administration of land use and development
controls, provision of regulatory concessions and incentives, and the
utilization of appropriate federal and state financing and subsidy
programs when available and the utilization of moneys in a low- and
moderate-income housing fund of an agency if the locality has
established a redevelopment project area pursuant to the Community
Redevelopment Law (Division 24 (commencing with Section 33000) of the
Health and Safety Code). In order to make adequate provision for
the housing needs of all economic segments of the community, the
program shall do all of the following:
(1) Identify actions that will be taken to make sites available
during the planning period of the general plan with appropriate
zoning and development standards and with services and facilities to
accommodate that portion of the city's or county's share of the
regional housing need for each income level that could not be
accommodated on sites identified in the inventory completed pursuant
to paragraph (3) of subdivision (a) without rezoning. Sites shall be
identified as needed to facilitate and encourage the development of
a variety of types of housing for all income levels, including
multifamily rental housing, factory-built housing, mobilehomes,
housing for agricultural employees, emergency shelters, and
transitional housing.
(A) Where the inventory of sites, pursuant to paragraph (3) of
subdivision (a), does not identify adequate sites to accommodate the
need for groups of all household income levels pursuant to Section
65584, the program shall identify sites that can be developed for
housing within the planning period pursuant to subdivision (h) of
Section 65583.2.
(B) Where the inventory of sites pursuant to paragraph (3) of
subdivision (a) does not identify adequate sites to accommodate the
need for farmworker housing, the program shall provide for sufficient
sites to meet the need with zoning that permits farmworker housing
use by right, including density and development standards that could
accommodate and facilitate the feasibility of the development of
farmworker housing for low- and very low income households.
(2) Assist in the development of adequate housing to meet the
needs of low- and moderate-income households.
(3) Address and, where appropriate and legally possible, remove
governmental constraints to the maintenance, improvement, and
development of housing, including housing for all income levels and
housing for persons with disabilities. The program shall remove
constraints to, or provide reasonable accommodations for housing
designed for, intended for occupancy by, or with supportive services
for, persons with disabilities.
(4) Conserve and improve the condition of the existing affordable
housing stock, which may include addressing ways to mitigate the loss
of dwelling units demolished by public or private action.
(5) Promote housing opportunities for all persons regardless of
race, religion, sex, marital status, ancestry, national origin,
color, familial status, or disability.
(6) (A) Preserve for lower income households the assisted housing
developments identified pursuant to paragraph (8) of subdivision (a).
The program for preservation of the assisted housing developments
shall utilize, to the extent necessary, all available federal, state,
and local financing and subsidy programs identified in paragraph (8)
of subdivision (a), except where a community has other urgent needs
for which alternative funding sources are not available. The program
may include strategies that involve local regulation and technical
assistance.
(B) The program shall include an identification of the agencies
and officials responsible for the implementation of the various
actions and the means by which consistency will be achieved with
other general plan elements and community goals. The local
government shall make a diligent effort to achieve public
participation of all economic segments of the community in the
development of the housing element, and the program shall describe
this effort.
(d) The analysis and program for preserving assisted housing
developments required by the amendments to this section enacted by
the Statutes of 1989 shall be adopted as an amendment to the housing
element by July 1, 1992.
(e) Failure of the department to review and report its findings
pursuant to Section 65585 to the local government between July 1,
1992, and the next periodic review and revision required by Section
65588, concerning the housing element amendment required by the
amendments to this section by the Statutes of 1989, shall not be used
as a basis for allocation or denial of any housing assistance
administered pursuant to Part 2 (commencing with Section 50400) of
Division 31 of the Health and Safety Code.
SEC. 2. Section 65583.1 of the Government Code is amended to read:
65583.1. (a) The Department of Housing and Community Development,
in evaluating a proposed or adopted housing element for substantial
compliance with this article, may allow a city or county to identify
adequate sites, as required pursuant to Section 65583, by a variety
of methods, including, but not limited to, redesignation of property
to a more intense land use category and increasing the density
allowed within one or more categories. The department may also allow
a city or county to identify sites for second units based on the
number of second units developed in the prior housing element
planning period whether or not the units are permitted by right, the
need for these units in the community, the resources or incentives
available for their development, and any other relevant factors, as
determined by the department. Nothing in this section reduces the
responsibility of a city or county to identify, by income category,
the total number of sites for residential development as required by
this article.
(b) Sites that contain permanent housing units located on a
military base undergoing closure or conversion as a result of action
pursuant to the Defense Authorization Amendments and Base Closure and
Realignment Act (Public Law 100-526), the Defense Base Closure and
Realignment Act of 1990 (Public Law 101-510), or any subsequent act
requiring the closure or conversion of a military base may be
identified as an adequate site if the housing element demonstrates
that the housing units will be available for occupancy by households
within the planning period of the element. No sites containing
housing units scheduled or planned for demolition or conversion to
nonresidential uses shall qualify as an adequate site.
Any city, city and county, or county using this subdivision shall
address the progress in meeting this section in the reports provided
pursuant to paragraph (1) of subdivision (b) of Section 65400.
(c) (1) The Department of Housing and Community Development may
allow a city or county to substitute the provision of units for up to
25 percent of the community's obligation to identify adequate sites
for any income category in its housing element pursuant to paragraph
(1) of subdivision (c) of Section 65583 where the community includes
in its housing element a program committing the local government to
provide units in that income category within the city or county that
will be made available through the provision of committed assistance
during the planning period covered by the element to low- and very
low income households at affordable housing costs or affordable
rents, as defined in Sections 50052.5 and 50053 of the Health and
Safety Code, and which meet the requirements of paragraph (2).
Except as otherwise provided in this subdivision, the community may
substitute one dwelling unit for one dwelling unit site in the
applicable income category. The program shall do all of the
following:
(A) Identify the specific, existing sources of committed
assistance and dedicate a specific portion of the funds from those
sources to the provision of housing pursuant to this subdivision.
(B) Indicate the number of units that will be provided to both
low- and very low income households and demonstrate that the amount
of dedicated funds is sufficient to develop the units at affordable
housing costs or affordable rents.
(C) Demonstrate that the units meet the requirements of paragraph
(2).
(2) Only units that comply with subparagraph (A), (B), or (C)
qualify for inclusion in the housing element program described in
paragraph (1), as follows:
(A) Units that are to be substantially rehabilitated with
committed assistance from the city or county and constitute a net
increase in the community's stock of housing affordable to low- and
very low income households. For purposes of this subparagraph, a
unit is not eligible to be "substantially rehabilitated" unless all
of the following requirements are met:
(i) At the time the unit is identified for substantial
rehabilitation, (I) the local government has determined that the unit
is at imminent risk of loss to the housing stock, (II) the local
government has committed to provide relocation assistance pursuant to
Chapter 16 (commencing with Section 7260) of Division 7 of Title 1
to any occupants temporarily or permanently displaced by the
rehabilitation or code enforcement activity, or the relocation is
otherwise provided prior to displacement either as a condition of
receivership, or provided by the property owner or the local
government pursuant to Article 2.5 (commencing with Section 17975) of
Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code,
or as otherwise provided by local ordinance; provided the assistance
includes not less than the equivalent of four months' rent and moving
expenses and comparable replacement housing consistent with the
moving expenses and comparable replacement housing required pursuant
to Section 7260, (III) the local government requires that any
displaced occupants will have the right to reoccupy the rehabilitated
units, and (IV) the unit has been found by the local government or a
court to be unfit for human habitation due to the existence of at
least four violations of the conditions listed in subdivisions (a) to
(g), inclusive, of Section 17995.3 of the Health and Safety Code.
(ii) The rehabilitated unit will have long-term affordability
covenants and restrictions that require the unit to be available to,
and occupied by, persons or families of low- or very low income at
affordable housing costs for at least 20 years or the time period
required by any applicable federal or state law or regulation.
(iii) Prior to initial occupancy after rehabilitation, the local
code enforcement agency shall issue a certificate of occupancy
indicating compliance with all applicable state and local building
code and health and safety code requirements.
(B) Units that are located in a multifamily rental housing complex
of four or more units, are converted with committed assistance from
the city or county from nonaffordable to affordable by acquisition of
the unit or the purchase of affordability covenants and restrictions
for the unit, are not acquired by eminent domain, and constitute a
net increase in the community's stock of housing affordable to low-
and very low income households. For purposes of this subparagraph, a
unit is not converted by acquisition or the purchase of
affordability covenants unless all of the following occur:
(i) The unit is made available at a cost affordable to low- or
very low income households.
(ii) At the time the unit is identified for acquisition, the unit
is not available at an affordable housing cost to either of the
following:
(I) Low-income households, if the unit will be made affordable to
low-income households.
(II) Very low income households, if the unit will be made
affordable to very low income households.
(iii) At the time the unit is identified for acquisition the unit
is not occupied by low- or very low income households or if the
acquired unit is occupied, the local government has committed to
provide relocation assistance prior to displacement, if any, pursuant
to Chapter 16 (commencing with Section 7260) of Division 7 of Title
1 to any occupants displaced by the conversion, or the relocation is
otherwise provided prior to displacement; provided the assistance
includes not less than the equivalent of four months rent and moving
expenses and comparable replacement housing consistent with the
moving expenses and comparable replacement housing required pursuant
to Section 7260.
(iv) The unit is in decent, safe, and sanitary condition at the
time of occupancy.
(v) The unit has long-term affordability covenants and
restrictions that require the unit to be affordable to persons of
low- or very low income for not less than 55 years.
(C) Units that will be preserved at affordable housing costs to
persons or families of low- or very low incomes with committed
assistance from the city or county by acquisition of the unit or the
purchase of affordability covenants for the unit. For purposes of
this subparagraph, a unit shall not be deemed preserved unless all of
the following occur:
(i) The unit has long-term affordability covenants and
restrictions that require the unit to be affordable to and reserved
for occupancy by persons of the same or lower income group as the
current occupants for a period of at least 40 years.
(ii) The unit is multifamily rental housing that receives
governmental assistance under any of the following state and federal
programs: Section 221(d)(3) of the National Housing Act (12 U.S.C.
Sec. 1715l(d)(3) and (5)); Section 236 of the National Housing Act
(12 U.S.C. Sec. 1715z-1); Section 202 of the Housing Act of 1959 (12
U.S.C. Sec. 1701q); for rent supplement assistance under Section 101
of the Housing and Urban Development Act of 1965, as amended (12
U.S.C. Sec. 1701s); under Section 515 of the Housing Act of 1949, as
amended (42 U.S.C. Sec. 1485); and any new construction, substantial
rehabilitation, moderate rehabilitation, property disposition, and
loan management set-aside programs, or any other program providing
project-based assistance, under Section 8 of the United States
Housing Act of 1937, as amended (42 U.S.C. Sec. 1437f); any state and
local multifamily revenue bond programs; local redevelopment
programs; the federal Community Development Block Grant Program; and
other local housing assistance programs or units that were used to
qualify for a density bonus pursuant to Section 65916.
(iii) The city or county finds, after a public hearing, that the
unit is eligible, and is reasonably expected, to change from housing
affordable to low- and very low income households to any other use
during the next five years due to termination of subsidy contracts,
mortgage prepayment, or expiration of restrictions on use.
(iv) The unit is in decent, safe, and sanitary condition at the
time of occupancy.
(v) At the time the unit is identified for preservation it is
available at affordable cost to persons or families of low- or very
low income.
(3) This subdivision does not apply to any city or county that,
during the current or immediately prior planning period, as defined
by Section 65588, has not met any of its share of the regional need
for affordable housing, as defined in Section 65584, for low- and
very low income households. A city or county shall document for any
such housing unit that a building permit has been issued and all
development and permit fees have been paid or the unit is eligible to
be lawfully occupied.
(4) For purposes of this subdivision, "committed assistance" means
that the city or county enters into a legally enforceable agreement
during the first two years of the housing element planning period
that obligates sufficient available funds to provide the assistance
necessary to make the identified units affordable and that requires
that the units be made available for occupancy within two years of
the execution of the agreement. "Committed assistance" does not
include tenant-based rental assistance.
(5) For purposes of this subdivision, "net increase" includes only
housing units provided committed assistance pursuant to subparagraph
(A) or (B) of paragraph (2) in the current planning period, as
defined in Section 65588, that were not provided committed assistance
in the immediately prior planning period.
(6) For purposes of this subdivision, "the time the unit is
identified" means the earliest time when any city or county agent,
acting on behalf of a public entity, has proposed in writing or has
proposed orally or in writing to the property owner, that the unit be
considered for substantial rehabilitation, acquisition, or
preservation.
(7) On July 1 of the third year of the planning period, as defined
by Section 65588, in the report required pursuant to Section 65400,
each city or county that has included in its housing element a
program to provide units pursuant to subparagraph (A), (B), or (C) of
paragraph (2) shall report in writing to the legislative body, and
to the department within 30 days of making its report to the
legislative body, on its progress in providing units pursuant to this
subdivision. The report shall identify the specific units for which
committed assistance has been provided or which have been made
available to low- and very low income households, and it shall
adequately document how each unit complies with this subdivision.
If, by July 1 of the third year of the planning period, the city or
county has not entered into an enforceable agreement of committed
assistance for all units specified in the programs adopted pursuant
to subparagraph (A), (B), or (C) of paragraph (2), the city or county
shall, not later than July 1 of the fourth year of the planning
period, adopt an amended housing element in accordance with Section
65585, identifying additional adequate sites pursuant to paragraph
(1) of subdivision (c) of Section 65583 sufficient to accommodate the
number of units for which committed assistance was not provided. If
a city or county does not amend its housing element to identify
adequate sites to address any shortfall, or fails to complete the
rehabilitation, acquisition, purchase of affordability covenants, or
the preservation of any housing unit within two years after committed
assistance was provided to that unit, it shall be prohibited from
identifying units pursuant to subparagraph (A), (B), or (C) of
paragraph (2) in the housing element that it adopts for the next
planning period, as defined in Section 65588, above the number of
units actually provided or preserved due to committed assistance.
SEC. 3. Section 65583.2 is added to the Government Code, to read:
65583.2. (a) A city's or county's inventory of land suitable for
residential development pursuant to paragraph (3) of subdivision (a)
of Section 65583 shall be used to identify sites that can be
developed for housing within the planning period and that are
sufficient to provide for the jurisdiction's share of the regional
housing need for all income levels pursuant to Section 65584. As
used in this section, "land suitable for residential development"
includes all of the following:
(1) Vacant sites zoned for residential use.
(2) Vacant sites zoned for nonresidential use that allows
residential development.
(3) Residentially zoned sites that are capable of being developed
at a higher density.
(4) Sites zoned for nonresidential use that can be redeveloped
for, and as necessary, rezoned for, residential use.
(b) The inventory of land shall include all of the following:
(1) A listing of properties by parcel number or other unique
reference.
(2) The size of each property listed pursuant to paragraph (1),
and the general plan designation and zoning of each property.
(3) For nonvacant sites, a description of the existing use of each
property.
(4) A general description of any environmental constraints to the
development of housing within the jurisdiction, the documentation for
which has been made available to the jurisdiction. This information
need not be identified on a site-specific basis.
(5) A general description of existing or planned water, sewer, and
other dry utilities supply, including the availability and access to
distribution facilities. This information need not be identified on
a site-specific basis.
(6) Sites identified as available for housing for above-moderate
income households in areas not served by public sewer systems. This
information need not be identified on a site-specific basis.
(7) A map that shows the location of the sites included in the
inventory, such as the land use map from the jurisdiction's general
plan for reference purposes only.
(c) Based on the information provided in subdivision (b), a city
or county shall determine whether each site in the inventory can
accommodate some portion of its share of the regional housing need by
income level during the planning period, as determined pursuant to
Section 65584. The analysis shall determine whether the inventory
can provide for a variety of types of housing, including multifamily
rental housing, factory-built housing, mobilehomes, housing for
agricultural employees, emergency shelters, and transitional housing.
The city or county shall determine the number of housing units that
can be accommodated on each site as follows:
(1) If local law or regulations require the development of a site
at a minimum density, the department shall accept the planning agency'
s calculation of the total housing unit capacity on that site based
on the established minimum density. If the city or county does not
adopt a law or regulations requiring the development of a site at a
minimum density, then it shall demonstrate how the number of units
determined for that site pursuant to this subdivision will be
accommodated.
(2) The number of units calculated pursuant to paragraph (1) shall
be adjusted as necessary, based on the land use controls and site
improvements requirement identified in paragraph (4) of subdivision
(a) of Section 65583.
(3) For the number of units calculated to accommodate its share of
the regional housing need for lower income households pursuant to
paragraph (2), a city or county shall do either of the following:
(A) Provide an analysis demonstrating how the adopted densities
accommodate this need. The analysis shall include, but is not
limited to, factors such as market demand, financial feasibility, or
information based on development project experience within a zone or
zones that provide housing for lower income households.
(B) The following densities shall be deemed appropriate to
accommodate housing for lower income households:
(i) For incorporated cities within nonmetropolitan counties and
for nonmetropolitan counties that have micropolitan areas: sites
allowing at least 15 units per acre.
(ii) For unincorporated areas in all nonmetropolitan counties not
included in clause (i): sites allowing at least 10 units per acre.
(iii) For suburban jurisdictions: sites allowing at least 20
units per acre.
(iv) For jurisdictions in metropolitan counties: sites allowing
at least 30 units per acre.
(d) For purposes of this section, metropolitan counties,
nonmetropolitan counties, and nonmetropolitan counties with
micropolitan areas are as determined by the United States Census
Bureau. Nonmetropolitan counties with micropolitan areas include the
following counties: Del Norte, Humboldt, Lake Mendocino, Nevada,
Tehama, and Tuolumne and such other counties as may be determined by
the United States Census Bureau to be nonmetropolitan counties with
micropolitan areas in the future.
(e) A jurisdiction is considered suburban if the jurisdiction does
not meet the requirements of clauses (i) and (ii) of subparagraph
(B) of paragraph (3) of subdivision (c) and is located in a
Metropolitan Statistical Area (MSA) of less than 2,000,000 in
population, unless that jurisdiction's population is greater than
100,000, in which case it is considered metropolitan. Counties, not
including the City and County of San Francisco, will be considered
suburban unless they are in a MSA of 2,000,000 or greater in
population in which case they are considered metropolitan.
(f) A jurisdiction is considered metropolitan if the jurisdiction
does not meet the requirements for "suburban area" above and is
located in a MSA of 2,000,000 or greater in population, unless that
jurisdiction's population is less than 25,000 in which case it is
considered suburban.
(g) For sites described in paragraph (3) of subdivision (b) the
city or county shall specify the additional development potential for
each site within the planning period and shall provide an
explanation of the methodology used to determine the development
potential. The methodology shall consider factors including the
extent to which existing uses may constitute an impediment to
additional residential development, development trends, market
conditions, and regulatory or other incentives or standards to
encourage additional residential development on these sites.
(h) The program required by subparagraph (A) of paragraph (1) of
subdivision (c) of Section 65583 shall accommodate 100 percent of the
need for housing for very low and low-income households allocated
pursuant to Section 65584 for which site capacity has not been
identified in the inventory of sites pursuant to paragraph (3) of
subdivision (a) on sites that shall be zoned to permit owner-occupied
and rental multifamily residential use by right during the planning
period. These sites shall be zoned with minimum density and
development standards that permit at least 16 units per site at a
density of at least 16 units per acre in jurisdictions described in
clause (i) of subparagraph (B) of paragraph (3) of subdivision (c)
and at least 20 units per acre in jurisdictions described in clauses
(iii) and (iv) of subparagraph (B) of paragraph (3) of subdivision
(c). At least 50 percent of the very low and low-income housing need
shall be accommodated on sites designated for residential use and
for which nonresidential uses or mixed-uses are not permitted.
(i) For purposes of this section and Section 65583, the phrase
"use by right" shall mean that the local government's review of the
owner-occupied or multifamily residential use may not require a
conditional use permit, planned unit development permit, or other
discretionary local government review or approval that would
constitute a "project" for purposes of Division 13 (commencing with
Section 21100) of the Public Resources Code. Any subdivision of the
sites shall be subject to all laws, including, but not limited to,
the local government ordinance implementing the Subdivision Map Act.
A local ordinance may provide that "use by right" does not exempt
the use from design review. However, that design review shall not
constitute a "project" for purposes of Division 13 (commencing with
Section 21100) of the Public Resources Code. Use by right for all
rental multifamily residential housing shall be provided in
accordance with subdivision (f) of Section 65589.5.
SEC. 4. Section 65589.5 of the Government Code is amended to read:
65589.5. (a) The Legislature finds and declares all of the
following:
(1) The lack of housing is a critical problem that 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
that limit the approval of housing, increase the cost of land for
housing, and require that high fees and exactions be paid by
producers of 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 that result in
disapproval of housing projects, reduction in density of housing
projects, and excessive standards for housing projects.
(b) It is the policy of the state that a local government not
reject or make infeasible housing developments that 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 complying with subdivision (d).
(c) The Legislature also recognizes that premature and unnecessary
development of agricultural lands for 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, including farmworker housing as defined in subdivision (d)
of Section 50199.50 of the Health and Safety Code, for very low, low-
or moderate-income households or condition approval, including
through the use of design review standards, in a manner that 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) The development project is proposed on land zoned for
agriculture or resource preservation that 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.
(5) 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 in substantial compliance with this
article. This subdivision cannot be utilized to disapprove a housing
development project defined in subdivision (a) if the development
project is proposed on a site that is identified for very low, low-,
or moderate-income households in the jurisdiction's housing element,
and consistent with the density specified in the housing element,
even though it is inconsistent with both the jurisdiction's zoning
ordinance and general plan land use designation.
(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
objective, quantifiable, written development standards, conditions,
and policies appropriate to, and consistent with, meeting the
jurisdiction's share of the regional housing need pursuant to Section
65584. However, the development standards, conditions, and policies
shall be applied to facilitate and accommodate development at the
density permitted on the site and proposed by the development
project. Nothing in this section shall be construed to prohibit a
local agency from imposing fees and other exactions otherwise
authorized by law that 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 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) "Housing development project" means a use consisting of either
of the following:
(A) Residential units only.
(B) Mixed-use developments consisting of residential and
nonresidential uses in which nonresidential uses are limited to
neighborhood commercial uses and to the first floor of buildings that
are two or more stories. As used in this paragraph, "neighborhood
commercial" means small-scale general or specialty stores that
furnish goods and services primarily to residents of the
neighborhood.
(3) "Housing for 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.
(4) "Area median income" means 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.
(5) "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.
(6) "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 design changes, a reduction of
allowable densities or the percentage of a lot that 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, that have a substantial adverse effect on the
viability or affordability of a housing development for 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,
including design review standards, 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 housing for very low, low-, or moderate-income
households, including farmworker housing, without 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 and
shall award reasonable attorney's fees and costs of suit to the
plaintiff or petitioner who proposed the housing development, except
under extraordinary circumstances in which the court finds that
awarding fees would not further the purposes of this section. 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. 5. Section 65915 of the Government Code is amended to read:
65915. (a) When an applicant proposes a housing development
within the jurisdiction of a city, county, or city and county, that
local government shall provide the applicant incentives or
concessions for the production of housing units and child care
facilities as prescribed in this chapter. All cities, counties, or
cities and counties shall adopt an ordinance that specifies how
compliance with this section will be implemented.
(b) A city, county, or city and county shall either grant a
density bonus and at least one of the concessions or incentives
identified in subdivision (k), or provide other incentives or
concessions of equivalent financial value based upon the land cost
per dwelling unit, when the applicant for the housing development
agrees or proposes to construct at least any one of the following:
(1) Twenty 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.
(2) Ten 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.
(3) Fifty percent of the total dwelling units of a housing
development for qualifying residents, as defined in Section 51.3 of
the Civil Code.
(4) Twenty percent of the total dwelling units in a condominium
project as defined in subdivision (f) of Section 1351 of the Civil
Code, for persons and families of moderate income, as defined in
Section 50093 of the Health and Safety Code.
The city, county, or city and county shall grant the additional
concession or incentive required by this subdivision unless the city,
county, or city and county makes a written finding, based upon
substantial evidence, 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).
(c) (1) An applicant 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.
(2) An applicant shall agree to, and the city, county, or city and
county shall ensure, continued affordability of the moderate-income
units that are directly related to the receipt of the density bonus
for 10 years if the housing is in a condominium project as defined in
subdivision (f) of Section 1351 of the Civil Code.
(d) An applicant may submit to a city, county, or city and county
a proposal for the specific incentives or concessions that the
applicant requests pursuant to this section, and may request a
meeting with the city, county, or city and county. The city, county,
or city and county shall grant the concession or incentive requested
by the applicant unless the city, county, or city and county makes a
written finding, based upon substantial evidence, of either of the
following:
(1) The 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).
(2) The concession or incentive would have a specific adverse
impact, as defined in paragraph (2) of subdivision (d) of Section
65589.5, upon public health and safety or the physical environment or
on any real property that is listed in the California Register of
Historical Resources and for which 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.
The applicant may initiate judicial proceedings if the city,
county, or city and county refuses to grant a requested density
bonus, incentive, or concession. If a court finds that the refusal
to grant a requested density bonus, incentive, or concession is in
violation of this section, the court shall award the plaintiff
reasonable attorney's fees and costs of suit. Nothing in this
subdivision shall be interpreted to require a local government to
grant an incentive or concession that has a specific, adverse impact,
as defined in paragraph (2) of subdivision (d) of Section 65589.5,
upon health, safety, or the physical environment, and for which there
is no feasible method to satisfactorily mitigate or avoid the
specific adverse impact. Nothing in this subdivision shall be
interpreted to require a local government to grant an incentive or
concession that would have an adverse impact on any real property
that is listed in the California Register of Historical Resources.
The city, county, or city and county shall establish procedures for
carrying out this section, that 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 that 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) In no case may a city, county, or city and county apply any
development standard that will have the effect of precluding the
construction of a development meeting the criteria of subdivision (b)
at the densities or with the concessions or incentives
permitted by this section. An
applicant may submit to a city, county, or city and county a proposal
for the waiver or reduction of development standards and may request
a meeting with the city, county, or city and county. If a court
finds that the refusal to grant a waiver or reduction of development
standards is in violation of this section, the court shall award the
plaintiff reasonable attorney's fees and costs of suit. Nothing in
this subdivision shall be interpreted to require a local government
to waive or reduce development standards if the waiver or reduction
would have a specific, adverse impact, as defined in paragraph (2) of
subdivision (d) of Section 65589.5, upon health, safety, or the
physical environment, and for which there is no feasible method to
satisfactorily mitigate or avoid the specific adverse impact.
Nothing in this subdivision shall be interpreted to require a local
government to waive or reduce development standards that would have
an adverse impact on any real property that is listed in the
California Register of Historical Resources.
(f) The applicant shall show that the waiver or modification is
necessary to make the housing units economically feasible.
(g) (1) For the purposes of this chapter, except as provided in
paragraph (2), "density bonus" means a density increase of at least
25 percent, unless a lesser percentage is elected by the applicant,
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 applicant to the city, county,
or city and county. All density calculations resulting in fractional
units shall be rounded up to the next whole number. The granting of
a density bonus shall not be interpreted, in and of itself, to
require a general plan amendment, local coastal 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, 20, or 50 percent of the total. The density
bonus shall apply to housing developments consisting of five or more
dwelling units.
(2) For the purposes of this chapter, if a development does not
meet the requirements of paragraph (1), (2), or (3) of subdivision
(b), but the applicant agrees or proposes to construct a condominium
project as defined in subdivision (f) of Section 1351 of the Civil
Code, in which at least 20 percent of the total dwelling units are
reserved for persons and families of moderate income, as defined in
Section 50093 of the Health and Safety Code, a "density bonus" of at
least 10 percent shall be granted, unless a lesser percentage is
elected by the applicant, 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
applicant to the city, county, or city and county. All density
calculations resulting in fractional units shall be rounded up to the
next whole number. The granting of a density bonus shall not be
interpreted, in and of itself, to require a general plan amendment,
local coastal 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 20 percent of the
total. The density bonus shall apply to housing developments
consisting of five or more dwelling units.
(h) (1) When an applicant proposes to construct a housing
development that conforms to the requirements of subdivision (b) and
includes a child care facility that will be located on the premises
of, as part of, or adjacent to, the project, the city, county, or
city and county shall grant either of the following:
(A) An additional density bonus that is an amount of square feet
of residential space that is equal to or greater than the amount of
square feet in the child care facility.
(B) An additional concession or incentive that contributes
significantly to the economic feasibility of the construction of the
child care facility.
(2) The city, county, or city and county shall require, as a
condition of approving the housing development, that the following
occur:
(A) The child care facility shall remain in operation for a period
of time that is as long as or longer than the period of time during
which the density bonus units are required to remain affordable
pursuant to subdivision (c).
(B) Of the children who attend the child care facility, the
children of very low income households, lower income households, or
families of moderate income shall equal a percentage that is equal to
or greater than the percentage of dwelling units that are required
for very low income households, lower income households, or families
of moderate income pursuant to subdivision (b).
(3) Notwithstanding any requirement of this subdivision, a city,
county, or a city and county shall not be required to provide a
density bonus or concession for a child care facility if it finds,
based upon substantial evidence, that the community has adequate
child care facilities.
(4) "Child care facility," as used in this section, means 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.
(i) "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 the
purposes of this section, "housing development" also includes either
(1) a project to substantially rehabilitate and convert an existing
commercial building to residential use, or (2) the substantial
rehabilitation of an existing multifamily dwelling, as defined in
subdivision (d) of Section 65863.4, where the result of the
rehabilitation would be a net increase in available residential
units. For the purpose 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.
(j) The granting of a concession or incentive shall not be
interpreted, in and of itself, to require a general plan amendment,
local coastal plan amendment, zoning change, or other discretionary
approval. This provision is declaratory of existing law.
(k) For the 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 that
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 that result in
identifiable and actual 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.
(l) If an applicant 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, county, or city and county may, at its discretion, grant
more than one density bonus.
(m) Nothing in this section shall be construed to supersede or in
any way alter or lessen the effect or application of the California
Coastal Act (Division 20 (commencing with Section 30000) of the
Public Resources Code).
(n) A local agency may charge a fee to reimburse it for costs it
incurs as a result of amendments to this section enacted during the
2001-02 Regular Session of the Legislature.
(o) For purposes of this section, the following definitions shall
apply:
(1) "Development standard" means any ordinance, general plan
element, specific plan, charter amendment, or other local condition,
law, policy, resolution, or regulation.
(2) "Maximum allowable residential density" means the density
allowed under the zoning ordinance, or if a range of density is
permitted, means the maximum allowable density for the specific
zoning range applicable to the project.
(p) (1) Upon the request of the developer, no city, county, or
city and county shall require a vehicular parking ratio, inclusive of
handicapped and guest parking, of a development meeting the criteria
of subdivision (b), that exceeds the following ratios:
(A) Zero to one bedrooms: one onsite parking space.
(B) Two to three bedrooms: two onsite parking spaces.
(C) Four and more bedrooms: two and one-half parking spaces.
(2) If the total number of parking spaces required for a
development is other than a whole number, the number shall be rounded
up to the next whole number. For purposes of this subdivision, a
development may provide "onsite parking" through tandem parking or
uncovered parking, but not through on-street parking.
(3) This subdivision shall apply to a development meeting the
requirements of subdivision (b) and only at the request of the
applicant. An applicant may request additional parking incentives or
concessions beyond those provided in this section, subject to
subdivision (d).
SEC. 6. 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.
SEC. 7. This act shall become operative only if Assembly Bill 2158
of the 2003-04 Regular Session is enacted and becomes operative.