BILL ANALYSIS
AB 2348
Page 1
Date of Hearing: April 21, 2004
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Simon Salinas, Chair
AB 2348 (Mullin) - As Amended: April 16, 2004
SUBJECT : Housing element: regional housing need.
SUMMARY : Makes numerous changes to the provisions of housing
element law pertaining to land inventory, adequate sites, and
permitted use, based on the work of the Housing Element Work
Group (HEWG). Specifically, this bill :
1)Revises the criteria for the inventory of sites that can be
developed for housing within the planning period of the
general plan to accommodate that portion of a city's or
county's share of the regional housing need for all income
levels, as specified, and expands the relocation assistance
available to persons displaced by sites identified for
substantial rehabilitation.
2)Requires the Department of Housing and Community Development
(HCD) to evaluate a proposed or adopted housing element for
substantial compliance with governing state law.
3)Revises the requirements that may be imposed on a development
project that contributes to meeting the regional housing need.
4)Allows a city, county, or city and county to reduce its share
of the regional housing needs by 15% for each income group
under prescribed conditions.
EXISTING LAW :
1)Requires local governments to adequately plan to meet their
share of the regional housing need to accommodate the existing
and projected population.
2)Requires local government to plan to appropriately zone sites
to accommodate their share of the regional housing need.
3)Requires housing elements to include a land inventory
identifying sites suitable for residential development
compared with the local government's zoned residential
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development capacity and its share of the regional housing
need by income level.
4)Requires certain findings be made before a locality can reject
or unduly burden applications for affordable projects.
5)Requires that the developer of a residential project which
meets specified affordability criteria be granted an increase
equal to at least 25% over the existing applicable density.
FISCAL EFFECT : Unknown
COMMENTS :
1)Housing element law requires local governments to adequately
plan to meet their share of the regional housing need to
accommodate the existing and projected population. The law
recognizes the most critical decisions regarding housing
development occur at the local level within the context of the
general plan. In order for the private sector to adequately
address housing needs and demand, local governments must
regularly update their general plans, zoning, and development
standards to provide opportunities for, and to reduce
regulatory barriers to, housing development for all income
groups.
2)Housing element law requires local government to plan to
appropriately zone sites to accommodate their share of the
regional housing need. Current law requires housing elements
to include a land inventory identifying sites suitable for
residential development compared with the local government's
zoned residential development capacity with its share of the
regional housing need by income level. The purpose of the
land inventory is to determine whether additional governmental
actions (programs) are needed to provide sufficient sites with
appropriate zoning, development standards and infrastructure
capacity to address the entire regional need by income level.
For example, a RHNA of 500 units for a city means that its
housing element must demonstrate that it either has or commits
to making available within the planning period, appropriately
zoned sites on which at least 500 units of housing could be
constructed.
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3)Because the regional housing need allocation is broken down
into four income levels, the land inventory must demonstrate
sufficient sites for each income category. Under housing
element law, zoning and densities serve as a proxy for
accommodating affordability. That is, sites for lower income
households should be zoned at a density high enough to
encourage and facilitate the development of housing affordable
for lower income families. If the inventory does not identify
or designate adequate sites in its land inventory, the element
must include a program to make sites available within the
planning period.
4)HEWG proposed changes to the land inventory and adequate sites
requirement to provide greater certainty in the development
process and provide local governments with greater clarity and
certainty about the statutory requirements. The proposed
amendments will also increase the usefulness and value of the
housing element as a tool to facilitate the residential
development process.
5)According to HEWG, AB 2348 will:
a) Improve effectiveness of housing element as a tool to
facilitate housing development: The amendments provide
uniform content requirements for the land inventory to
ensure local governments provide sufficient detail and
information regarding the adequacy of sites to address the
regional housing need. Housing elements that include
sufficient information about the availability and
suitability of appropriately zoned sites are a great
resource for housing developers looking for land. Housing
developers indicate their ability to use an adequate land
inventory to identify potential housing development sites
significantly streamlines the development process.
Developers will be able to rely on the housing element to
identify the sites the local government believes are
appropriately zoned and ready for residential development.
b) Provide clarity and transparency to current
requirements. While many of the proposed amendments are
declarative of existing law and practice, local governments
have indicated that more specificity would provide greater
assurance of clarity and consistency to state review. In
addition, housing advocates have indicated that greater
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clarity about requirements will ensure that all housing
elements include comparable information about development
opportunities and facilitate housing construction
(especially affordable housing).
c) Promote efficient use of land resources and provide
local government with certainty regarding state review of
land inventory of housing element. This section provides a
"voluntary" rule of thumb option for local governments when
analyzing the zoning that can accommodate housing
developments for lower income households. Existing law
requires local governments to analyze the relationship of
zoning to the sites in the inventory relative to
accommodating the regional share allocation by income
level. These amendments mandate that the Department accept
certain densities as appropriate to accommodate a
jurisdiction's share of the regional housing need for lower
income households. If a local government does not choose
this option, the element can otherwise demonstrate the
appropriateness of zoning and densities to address the
lower income regional need (as in current law). These
amendments do not mandate establishing minimum densities.
Rather, the amendments impose a mandate on the Department
to accept specified densities as adequate. However, the
proposed amendments would encourage local governments to
establish minimum development densities which will serve to
promote more efficient use of land resources which will
promote preservation
of natural and agricultural land resources. Establishment of
minimum densities also will provide developers with greater
certainty and promote housing affordability.
d) Provide clarity about the relationship between the land
inventory and adequate sites program. The amendments
clarify that a program to provide adequate sites is only
needed when the inventory does not identify adequate sites
already appropriately zoned to accommodate the regional
housing need. While this is declaratory of existing law,
it will provide local governments with greater certainty
about their obligation under
the law.
e) Increase the effectiveness of provision in current law
that allows local governments to get "credit" for
rehabilitation when identifying adequate sites.
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f) Strengthen existing requirements that local government
make sites available "by-right"
if their land inventory does not identify existing sites
commensurate with the regional housing need. These
amendments increase affordable housing opportunities and
development certainty in communities whose land inventories
do not include adequate sites to address their regional
housing need. Existing law requires the local government
to make sites available by-right to meet their remaining
regional share need which cannot be met with existing
sites. The definition of "use by right" is strengthened to
indicate that the use will be allowed without the need for
local discretionary approvals. Design review of project
proposals is still permitted provided that such review does
not invoke discretionary review subject to CEQA.
6)The concept of "permitted use" or "use by right" is an
important means to greater certainty in the development
application process. Developers often point to the imposition
of changing or unforeseen conditions or demands on project
proposals as a major impediment to the development of
affordable housing. Localities can "pre-approve" residential
development on a particular site so that all the conditions of
development can be evaluated and addressed by a potential
developer. Housing Element law envisions that housing
development should be a "permitted use" on appropriately zoned
multifamily parcels within localities which are otherwise
unable to provide a land inventory with sufficient sites to
meet their Regional Housing Need Assessment at the time of
adoption of the housing element. However, greater clarity is
needed to ensure effective implementation. HEWG is
recommending changes to Housing Element law to establish
minimum densities for multifamily development on the
identified sites and to strengthen the definition of "use by
right" applicable to such sites.
7)Other areas of existing planning and zoning law limit the
ability of local jurisdictions to disapprove, or burden with
undue conditions, housing development proposals. Section
65589.5 requires certain findings be made before a locality
can reject or unduly burden applications for affordable
projects. HEWG agreed that the ability of local jurisdiction
to reject a project on the grounds that the project would
cause a disproportionate concentration of lower income
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households should be repealed. This is because this provision
has been used contrary to the objective of providing new
housing for overcrowded or overpaying lower income families.
In addition, HEWG proposes that no finding based on
inconsistency with planning or zoning requirements could be
used to reject an affordable project on a site identified for
affordable lower-income housing development in the local
housing element.
8)Density Bonus Law requires that the developer of a residential
project which meets specified affordability criteria be
granted an increase equal to at least 25% over the existing
applicable density. In response to concerns that the
imposition of local parking requirements severely hampers the
utilization of the law, HEWG proposes the adoption of maximum
parking standards applicable to density bonus projects.
9)Specifically, these amendments:
a) Clarify the relationship between the sites inventory and
the requirement to identify sufficient suitable sites to
meet the localities regional need;
b) Provide a locality's housing element program for
sufficient sites shall allow project densities that will
help ensure the feasibility of new housing developments;
c) Clarify that a "by right" development consistent with
existing zoning would not require conditional use permits
or other discretionary approvals, though general design
review and consistency with objective design standards
could be required;
d) Eliminate the authority to reject an affordable project
on the basis that its approval would result in a
concentration of lower income households within a
particular neighborhood;
e) Strengthen provisions of anti-NIMBY law including
clarifying that if a locality includes
a site for affordable housing use in its housing element site
inventory, it cannot deny an affordable housing development
on that site on the basis that the development is not
consistent with current zoning or the general plan;
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f) Ensure that parking requirements for developments
qualifying for a density bonus meet the needs of localities
and do not jeopardize the development of otherwise
appropriate housing on these sites, and establish maximum
parking requirements on a space per bedroom basis.
10)This bill has been double-referred to the Committees on Local
Government and Housing and Community Development.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : J. Stacey Sullivan / L. GOV. / (916)
319-3958