BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2161|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
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|327-4478 | |
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THIRD READING
Bill No: AB 2161
Author: Klehs (D)
Amended: 8/28/06 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SUBJECT : Redevelopment: Alameda County: City of
Hayward
SOURCE : Author
DIGEST : This bill, until January 1, 2012, authorizes the
Redevelopment Agency of the County of Alameda to count the
new construction of units outside the project area, but
within the City of Hayward towards satisfaction of these
housing obligations if certain conditions are met. This
authorization would apply only to the Mt. Eden Sub-Area of
the Eden Area Redevelopment Project Area.
ANALYSIS : The Community Redevelopment Law requires a
redevelopment agency to replace dwelling units housing
persons and families of low or moderate income that are
destroyed or removed from the low- and moderate-income
housing market as part of a redevelopment project that is
subject to a written agreement with the agency or where
financial assistance is provided by the agency. Existing
law also requires that specified percentages of new and
substantially rehabilitated dwelling units within a project
area that are developed by public or private entities or by
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persons other than the redevelopment agency be affordable
to and occupied by persons of low and moderate income.
These replacement, new, or rehabilitated dwelling units are
required to remain available at affordable housing cost to,
and occupied by, persons and families of low-income,
moderate-income, and very low income households for at
least 55 years for rental units and 45 years for
homeownership units.
This bill allows the County RDA to build low and very-low
income units outside the project area only if the following
conditions are met:
1. County must build two units outside the project
area for every unit that would have been built inside
the project area.
2. Units must be available to families with low or
very low income.
3. Units must be on a parcel immediately adjacent to
the Mt. Eden project area.
4. City of Hayward cannot count those units built by
the County toward the City's housing goals.
This bill declares that because of the unique circumstances
applicable to the Redevelopment Agency of Alameda County
with respect to local housing requirements, a statute of
general applicability could not be enacted within the
meaning of subdivision (b) of Section 16 of Article IV of
the California Constitution, thus necessitating the
enactment of a special statute.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/30/06)
Alameda County
City of Hayward
ARGUMENTS IN SUPPORT : According to supporters,
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"Currently, Eden Housing is in the process of trying to
build a 78-unit affordable housing project in the City of
Hayward. The Eden Housing project is contiguous to the
County's Mt. Eden Redevelopment Sub-Area, but not in the
project area. A project has also been recently approved to
develop 150 residential units within the Mt Eden Sub-Area.
To meet the affordability requirements, the developer is
proposing to contribute to the Eden Housing project. This
legislation would allow the County to count, on a
one-for-one basis, those units produced at the Eden Housing
project toward the County Redevelopment Agency's affordable
housing production requirement.
"The Redevelopment Agency of the County of Alameda adopted
the Eden Area Redevelopment Project in 2000. The project
area consists of five non-contiguous sub-areas: Castro
Valley, Cherryland, Foothill, Mt. Eden and San Lorenzo.
The Mt. Eden Sub-Area is made up of the remaining
unincorporated "islands" wholly surrounded by the City of
Hayward. The Mt. Eden Sub-Area is currently a mix of
residential and industrial land-uses and most properties
are served by septic systems and a small mutual water
company. The Mt. Eden area also lacks curb, gutter,
sidewalk and drainage facilities.
"The City of Hayward is proposing to annex about half of
the Mt. Eden Sub-Area, known as Phase 1. The second phase
would be annexed one year later. The Phase 1 annexation is
occurring because the Dutra family has assembled
approximately twelve acres that are now entitled, by the
City of Hayward, for approximately 150 for-sale residential
units to be developed by KB Homes. The KB Homes project is
generally bounded by Middle, Saklan, West and Eden Streets.
Eden is not identified on the attached map, but this
boundary street is on the east between the Mt. Eden
Sub-Area and the City of Hayward. The development can only
proceed with a successful annexation by the City of
Hayward.
"Redevelopment Law requires that at least 15% of all new
dwelling units developed within a project area by a public
or private entity shall be available to persons and
families of low and moderate income. That means by the
construction of the 150 unit project, 23 affordable housing
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units must be produced by the developer in the Eden
Redevelopment Project Area. The developer desires to meet
his affordable housing requirement by contributing to an
affordable 78 unit multi-family housing project that is
literally across the street from the Mt. Eden Sub-Area, but
in the City of Hayward."
CTW:nl 8/30/06 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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