BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: sb 968
SENATOR TOM TORLAKSON, CHAIRMAN
AUTHOR: torlakson
VERSION:
2/22/2005
Analysis by: Mark Stivers FISCAL: yes
SUBJECT:
Land supply for housing.
DESCRIPTION:
This bill would require cities and counties to identify
sufficient land for housing to accommodate each jurisdiction's
housing needs through the end of the general plan.
ANALYSIS:
The Planning and Zoning Law requires cities and counties to
prepare and adopt a general plan to guide the future growth of a
community. Every general plan must contain seven elements: land
use, circulation, housing, conservation, open-space, noise, and
safety.
A land use element shall designate the proposed general
distribution and location of the uses of land for housing,
business, industry, open space, education, and public
facilities. The land use element shall also include the
standards of population density and building intensity
recommended for the various districts covered by the plan.
A housing element must identify and analyze existing and
projected housing needs, identify adequate sites with
appropriate zoning to meet the housing needs of all income
segments of the community, and ensure that regulatory systems
provide opportunities for, and do not unduly constrain, housing
development. Housing elements generally cover a five-year
period. The quantity of housing for which a community must
identify sites is determined through the Regional Housing Needs
Assessment process.
This bill would require a land use element to identify
SB 968 (TORLAKSON) Page 2
sufficient land to accommodate the jurisdiction's housing needs
at appropriate densities through the end of the general plan's
planning period.
The bill would also make a number of findings relating to the
threat that the lack of housing poses to the state's
competitiveness and prosperity, the need for comprehensive and
long-term planning for housing, the need to reflect local needs
and circumstances, and the need to support public services and
infrastructure.
COMMENTS:
1)Purpose of the bill . This bill is intended to be a vehicle
for potential changes to housing planning statutes. The
League of California Cities has been meeting for over a year
with the California Building Industry Association and the
Homeownership Advancement Foundation in an attempt to find
common ground on increasing land supply for housing and
certainty in the entitlement process. At the same time, the
Secretary for Business, Transportation, and Housing has been
meeting with stakeholders to focus on ensuring a 20-year land
supply for housing. It is unclear whether or not either of
these discussions will result in a specific legislative
proposal, and if they do, it is unclear whether or not there
will be a consensus among a broader array of stakeholders.
This bill could be used to facilitate a larger discussion and
move forward with ideas that have a critical mass of
agreement.
2)The need to increase certainty for housing development .
California has under-produced housing each year since 1989.
The Department of Housing and Community Development estimates
that the California needs to produce 220,000 housing units per
year to keep up with population growth. During the decade of
the 1990's, only half of this need was met. While housing
production has recently topped 200,000 per units, it is still
short of demand in an otherwise extremely favorable economic
environment. Not only does this shortage result in higher
housing costs for working families, but business groups around
the state have cited the high cost of housing as one of the
biggest barriers to doing business in California.
Home builders and housing advocates often cite exclusive local
land use practices as the major barrier to producing
additional housing. In many communities, there is little land
SB 968 (TORLAKSON) Page 3
zoned for residential uses, and when land is available, it is
rarely zoned at densities that allow anything other than
luxury units to "pencil out." Even when builders propose
quality new housing developments that are consistent with
local plans, community opposition and long, discretionary
entitlement processes often raise costs, reduce the number and
affordability of units, and sometimes result in projects being
denied outright.
Multiple studies and forums have emphasized the need to
designate a sufficient long-range land supply for housing,
especially higher-density and multifamily housing, and to
ensure greater certainty in the entitlement process for
developments that are consistent with local plans and zoning.
The stakeholder conversations are attempting to address these
goals.
3)Concerns raised . The Planning and Conservation League (PCL)
has expressed strong concerns about the current language in
the bill. PCL believes the language tracks too closely with
land use proposals that the administration has floated
informally and that PCL strongly opposes. Requiring a 20-year
supply of land without providing certainty for preservation of
open space and farmland could be sprawl-inducing.
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
April 13, 2005.)
SUPPORT: California Building Industry Association
Homeownership Advancement Foundation
League of California Cities
OPPOSED: None received.