BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2348
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2348 (Mullin)
          As Amended August 23, 2004
          Majority vote
           
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          |ASSEMBLY:  |78-0 |(May 24, 2004)  |SENATE: |38-0 |(August 26,    |
          |           |     |                |        |     |2004)          |
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           Original Committee Reference:    L. GOV.  

           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).

           The Senate amendments :

          1)Specify that "use by right," as defined, does not exempt any  
            subdivision of the relevant sites from local ordinances  
            implementing the Subdivision Map Act.

          2)Delete a provision making requirements for identifying sites  
            for farmworker housing applicable commencing with the next  
            revision of housing elements after the enactment of the bill.

          3)Provide that the provisions of this bill shall only become  
            operative if AB 2158 (Lowenthal), pending in the Senate, is  
            also enacted and becomes operative on or before January 1,  
            2005.

          4)Make other minor technical and clarifying changes.

           AS PASSED BY THE ASSEMBLY  , this bill:

          1)Revised 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)Required the Department of Housing and Community Development  








                                                                  AB 2348
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            (HCD) to evaluate a proposed or adopted housing element for  
            substantial compliance with governing state law.

          3)Revised the requirements that may be imposed on a development  
            project that contributes to meeting the regional housing need.  


          4)Allowed 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.

           FISCAL EFFECT  :  According to the Assembly Appropriations'  
          Committee analysis, there are:

          1)Unknown state-reimbursable mandated costs, probably in excess  
            of $150,000 annually, for expanded relocation assistance  
            requirements on local governments.

          2)Minor, absorbable workload costs to HCD.
           
          COMMENTS  :  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.  This bill reflects  
          HEWG's recommended 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.  This  
          bill will also increase the usefulness and value of the housing  
          element as a tool to facilitate the residential development  
          process.  According to HEWG, this bill will improve  
          effectiveness of housing element as a tool to:

          1)Facilitate housing development.

          2)Provide clarity and transparency to current requirements.

          3)Promote efficient use of land resources and provide local  
            government with certainty regarding state review of land  
            inventory of housing element.

          4)Provide clarity about the relationship between the land  








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            inventory and adequate sites program.

          5)Increase the effectiveness of provision in current law that  
            allows local governments to get "credit" for rehabilitation  
            when identifying adequate sites.

          6)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.

          The concept of "permitted use" or "use by right" is an important  
          means to greater certainty in the development application  
          process.  However, greater clarity is needed to ensure effective  
          implementation.  This bill changes 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.  Other areas of existing  
          planning and zoning law limit the ability of local jurisdictions  
          to disapprove, or burden with undue conditions, housing  
          development proposals.  This bill repeals the ability of local  
          jurisdiction to reject a project on the grounds that the project  
          would cause a disproportionate concentration of lower-income  
          households, and states that no finding based on inconsistency  
          with planning or zoning requirements can be used to reject an  
          affordable project on a site identified for affordable  
          lower-income housing development in the local housing element.

          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.


           Analysis Prepared by  :    J. Stacey Sullivan / L. GOV. / (916)  
          319-3958                FN: 0008720