BILL NUMBER: AB 842	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 29, 2007

INTRODUCED BY   Assembly Member Jones
   (Principal coauthors: Assembly Members DeSaulnier and Lieu)

                        FEBRUARY 22, 2007

    An act to amend Section 65009 of the Government Code,
relating to   An act to add Section 14522.5 to the
Government Code, to amend Sections 53545 and 53563 of, and to add
Section 53545.2 to, the Health and Safety Code, and to add Section
75066.5 to the Public Resources Code, relating to  local
planning.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 842, as amended, Jones. Regional plans:  housing and
 traffic reduction. 
   (1) Existing law authorizes the California Transportation
Commission to establish guidelines for the preparation of regional
transportation plans.  
   This bill would require the commission to update its guidelines
for the preparation of regional transportation plans, including a
requirement that each regional transportation plan provide for a 10%
reduction in the growth increment of vehicle miles traveled. 

   (2) Existing law, the Housing and Emergency Shelter Trust Fund Act
of 2006, authorizes the issuance of bonds in the amount of
$2,850,000,000 pursuant to the State General Obligation Bond Law.
Proceeds from the sale of these bonds are required to be used to
finance various existing housing programs, capital outlay related to
infill development, brownfield cleanup that promotes infill
development, and housing-related parks. The act establishes the
Housing and Emergency Shelter Trust Fund of 2006 in the State
Treasury, requires the sum of $850,000,000 to be deposited in the
Regional Planning, Housing, and Infill Incentive Account, which the
act establishes in the fund, and makes the money in the account
available, upon appropriation, for infill incentive grants for
capital outlay related to infill housing development and other
related infill development, and for brownfield cleanup that promotes
infill housing development and other related infill development
consistent with regional and local plans, subject to the conditions
and criteria that the Legislature may provide in statute. The act
requires the amount of $300,000,000 to be deposited in the
Transit-Oriented Development Account, which the act establishes in
the fund, for transfer to the Transit-Oriented Development
Implementation Fund, for expenditure, upon appropriation by the
Legislature, pursuant to the Transit-Oriented Development
Implementation Program established under the act.  
   This bill would require the sum of $300,000,000 to be made
available, upon appropriation, from the Regional Planning, Housing,
and Infill Incentive Account to the Department of Housing and
Community Development to fund grants to assist agencies of local
government in the planning and production of infill housing. The bill
would limit the grants to councils of governments that provide the
department with a regional land use and transportation planning
document that includes a reduction of the growth increment of vehicle
miles traveled by not less than 10% for the region, and to counties
not within the region of a council of governments that provide the
department with a countywide land use and transportation planning
document that includes a reduction of the growth increment of vehicle
miles traveled by not less than 10% for the county.  
   The bill would require the sum of $150,000,000 to be allocated
from the Transit-Oriented Development Account to the Transit-Oriented
Development Implementation Program, in the amount of $100,000,000
for loans and $50,000,000 for grants.  
   The bill would require the department to limit grants and loans
under the Transit-Oriented Development Implementation Program to
councils of governments and counties that provide the department with
a regional or countywide land use and transportation planning
document that includes a reduction of the growth increment of vehicle
miles traveled by not less than a specified percentage for the
region or county.  
   (3) The Safe Drinking Water, Water Quality and Supply, Flood
Control, River and Coastal Protection Bond Act of 2006 authorizes the
issuance of bonds in the amount of $5,388,000,000 pursuant to the
State General Obligation Bond Law. Proceeds from the sale of these
bonds are required to be used to fund various public resources
projects. Among other things, the act makes available the sum of
$90,000,000 for planning grants and planning incentives, including
revolving loan programs and other methods to encourage the
development of regional and local land use plans that are designed to
promote water conservation, reduce automobile use and fuel
consumption, encourage greater infill and compact development,
protect natural resources and agricultural lands, and revitalize
urban and community centers.  
   This bill would require the sum of $30,000,000 to be made
available, upon appropriation, pursuant to certain provisions of the
act to councils of governments and counties to fund grants to assist
in the development of regional and countywide land use and
transportation planning documents. The bill would limit the grants to
councils of governments that commit to development of a regional
land use and transportation planning document that includes a
reduction of the growth increment of vehicle miles traveled by not
less than 10% for the region, and to counties not within the region
of a council of governments that commit to development of a
countywide land use and transportation planning document that
includes a reduction of the growth increment of vehicle miles
traveled by not less than 10% for the county.  
   The bill would require he sum of $60,000,000 to be made available,
upon appropriation, pursuant to certain provisions of the act to the
department to provide loans to cities, counties, and cities and
counties to assist in conforming general plans, zoning ordinances,
and specific project plans to a regional or countywide land use and
transportation planning document that includes a reduction of the
growth increment of vehicle miles traveled by not less than 10% for
the region or county.  
   The Planning and Zoning Law provides, among other things, that an
action or proceeding to encourage or facilitate the development of
housing that would increase the community's supply of housing
affordable to persons and families with very low, low-, moderate-, or
middle- income households must be commenced and the legislative body
of the city, county, or city and county served within a year after
accrual of the cause of action if it meets certain requirements.
 
   This bill would delete an obsolete reference in these provisions
and would also declare the Legislature's intent to enact legislation
to create eligibility standards for the funds that will be made
available from the Highway Safety, Traffic Reduction, Air Quality,
and Port Security Bond Act of 2006 and the Housing and Emergency
Shelter Trust Fund of 2006, and to require, as one of those
standards, that a project be located in a city or county where the
council of governments or the county has adopted a regional plan to
reduce the vehicle miles traveled per household and the city or
county has amended its general plan to implement the regional plan's
goal to reduce vehicle miles traveled per household by the percentage
specified in the regional plan. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 14522.5 is added to the 
 Government Code  , to read:  
   14522.5.  The commission shall update its guidelines for the
preparation of regional transportation plans, including, but not
limited to, a requirement that each regional transportation plan
provide for a 10 percent reduction in the growth increment of vehicle
miles traveled. 
   SEC. 2.    Section 53545 of the   Health and
Safety Code   is amended to read: 
   53545.  The Housing and Emergency Shelter Trust Fund of 2006 is
hereby created in the State Treasury. The Legislature intends that
the proceeds of bonds deposited in the fund shall be used to fund the
housing-related programs described in this chapter over the course
of the next decade. The proceeds of bonds issued and sold pursuant to
this part for the purposes specified in this chapter shall be
allocated in the following manner:
   (a) (1) One billion five hundred million dollars ($1,500,000,000)
to be deposited in the Affordable Housing Account, which is hereby
created in the fund. Notwithstanding Section 13340 of the Government
Code, the money in the account shall be continuously appropriated in
accordance with the following schedule:
   (A) (i) Three hundred forty-five million dollars ($345,000,000)
shall be transferred to the Housing Rehabilitation Loan Fund to be
expended for the Multifamily Housing Program authorized by Chapter
6.7 (commencing with Section 50675) of Part 2. The priorities
specified in Section 50675.13 shall apply to the expenditure of funds
pursuant to this clause.
   (ii) Fifty million dollars ($50,000,000) shall be transferred to
the Housing Rehabilitation Loan Fund to be expended under the
Multifamily Housing Program authorized by Chapter 6.7 (commencing
with Section 50675) of Part 2 for housing meeting the definitions in
paragraphs (2) and (3) of subdivision (e) of Section 11139.3 of the
Government Code. The department may provide higher per-unit loan
limits as necessary to achieve affordable housing costs to the target
population. Any funds not encumbered for the purposes of this clause
within 30 months of availability shall revert for general use in the
Multifamily Housing Program.
   (B) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, to be used for supportive
housing for individuals and households moving from emergency shelters
or transitional housing or those at risk of homelessness. The
Department of Housing and Community Development shall provide for
higher per-unit loan limits as reasonably necessary to achieve
housing costs affordable to those individuals and households. For
purposes of this subparagraph, "supportive housing" means housing
with no limit on length of stay, that is occupied by the target
population, as defined in subdivision (d) of Section 53260, and that
is linked to onsite or offsite services that assist the tenant to
retain the housing, improve his or her health status, maximize his or
her ability to live, and, when possible, work in the community. The
criteria for selecting projects shall give priority to  the
following  :
   (i) Supportive housing for people with disabilities who would
otherwise be at high risk of homelessness where the applications
represent collaboration with programs that meet the needs of the
person's disabilities.
   (ii) Projects that demonstrate funding commitments from local
governments for operating subsidies or services funding, or both, for
five years or longer.
   (C) One hundred thirty-five million dollars ($135,000,000) shall
be transferred to the fund created by subdivision (b) of Section
50517.5 to be expended for the programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2.
   (D) Three hundred million dollars ($300,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the Department of Housing and
Community Development, to be expended for the purposes of enabling
households to become or remain homeowners pursuant to the CalHome
Program authorized by Chapter 6 (commencing with Section 50650) of
Part 2, except ten million dollars ($10,000,000) shall be expended
for construction management under the California Self-Help Housing
Program pursuant to subdivision (b) of Section 50696.
   (E) Two hundred million dollars ($200,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the California Housing Finance
Agency, to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3. Up to one hundred million dollars
($100,000,000) of these funds may be expended pursuant to subdivision
(b) of Section 51504.
   (F) One hundred million dollars ($100,000,000) shall be
transferred to the Affordable Housing Innovation Fund, which is
hereby created in the State Treasury, to be administered by the
Department of Housing and Community Development. Funds shall be
expended for competitive grants or loans to sponsoring entities that
develop, own, lend, or invest in affordable housing and used to
create pilot programs to demonstrate innovative, cost-saving
approaches to creating or preserving affordable housing. Specific
criteria establishing eligibility for and use of the funds shall be
established in statute as approved by a 2/3 vote of each house of the
Legislature. Any funds not encumbered for the purposes set forth in
this subparagraph within 30 months of availability shall revert to
the Self-Help Housing Fund created by Section 50697.1 and shall be
available for the purposes described in subparagraph (D).
   (G) One hundred twenty-five million dollars ($125,000,000) shall
be transferred to the Building Equity and Growth in Neighborhoods
Fund to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to Chapter 14.5 (commencing with Section
50860) of Part 1. Any funds not encumbered for the purposes set forth
in this subparagraph within 30 months of availability shall revert
for general use in the CalHome Program.
   (H) Fifty million dollars ($50,000,000) shall be transferred to
the Emergency Housing and Assistance Fund to be distributed in the
form of capital development grants under the Emergency Housing and
Assistance Program authorized by Chapter 11.5 (commencing with
Section 50800) of Part 2 of Division 31. The funds shall be
administered by the Department of Housing and Community Development
in a manner consistent with the restrictions and authorizations
contained in Provision 3 of Item 2240-105-0001 of the Budget Act of
2000, except that any appropriations in that item shall not apply.
The competitive system used by the department shall incorporate
priorities set by the designated local boards and their input as to
the relative merits of submitted applications from within the
designated local board's county in relation to those priorities. In
addition, the funding limitations contained in this section shall not
apply to the appropriation in that budget item.
   (2) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this subdivision for the purpose of improving
the efficiency and effectiveness of the program, or for the purpose
of furthering the goals of the program.
   (3) The Bureau of State Audits shall conduct periodic audits to
ensure that bond proceeds are awarded in a timely fashion and in a
manner consistent with the requirements of this subdivision, and that
awardees of bond proceeds are using funds in compliance with
applicable provisions of this subdivision. The first audit shall be
conducted no later than one year from voter approval of this part.
   (4) In its annual report to the Legislature, the Department of
Housing and Community Development shall report how funds that were
made available pursuant to this subdivision and allocated in the
prior year were expended. The department shall make the report
available to the public on its Internet Web site.
   (b) Eight hundred fifty million dollars ($850,000,000) shall be
deposited in the Regional Planning, Housing, and Infill Incentive
Account, which is hereby created in the fund. Funds in the account
shall be available, upon appropriation by the Legislature, and
subject to such other conditions and criteria as the Legislature may
provide in statute, for the following purposes:
   (1) For infill incentive grants for capital outlay related to
infill housing development and other related infill development,
including, but not limited to, all of the following:
   (A) No more than two hundred million dollars ($200,000,000) for
park creation, development, or rehabilitation to encourage infill
development.
   (B) Water, sewer, or other public infrastructure costs associated
with infill development.
   (C) Transportation improvements related to infill development
projects.
   (D) Traffic mitigation.
   (2) For brownfield cleanup that promotes infill housing
development and other related infill development consistent with
regional and local plans.
   (c) Three hundred million dollars ($300,000,000) to be deposited
in the Transit-Oriented Development Account, which is hereby created
in the fund, for transfer to the Transit-Oriented Development
Implementation Fund, for expenditure, upon appropriation by the
Legislature, pursuant to the Transit-Oriented Development
Implementation Program authorized by Part 13 (commencing with Section
 50560)   53560)  .
   (d) Two hundred million dollars ($200,000,000) shall be deposited
in the Housing Urban-Suburban-and-Rural Parks Account, which is
hereby created in the fund. Funds in the account shall be available
upon appropriation by the Legislature for housing-related parks
grants in urban, suburban, and rural areas, subject to the conditions
and criteria that the Legislature may provide in statute.
   SEC. 3.    Section 53545.2 is added to the  
Health and Safety Code   , to read:  
   53545.2.  (a) Upon appropriation, the sum of three hundred million
dollars ($300,000,000) shall be made available from the Regional
Planning, Housing, and Infill Incentive Account established under
subdivision (b) of Section 53545 to the department to fund grants to
assist agencies of local government in the planning and production of
infill housing. The grants shall be limited to the following:
   (1) Councils of governments that provide the department with a
regional land use and transportation planning document that includes
a reduction of the growth increment of vehicle miles traveled by not
less than 10 percent for the region.
   (2) Counties not within the region of a council of governments
that provide the department with a countywide land use and
transportation planning document that includes a reduction of the
growth increment of vehicle miles traveled by not less than 10
percent for the county.
   (b) Upon appropriation, the sum of one hundred fifty million
dollars ($150,000,000) shall be allocated from the Transit-Oriented
Development Account established under subdivision (c) of Section
53545 to the Transit-Oriented Development Implementation Program
authorized under Part 13 (commencing with Section 53560), in the
following amounts, for the following purposes:
   (1) One hundred million dollars ($100,000,000) for loans.
   (2) Fifty million dollars ($50,000,000) for grants. 
   SEC. 4.    Section 53563 of the   Health and
Safety Code   is amended to read: 
   53563.  (a) In ranking applications pursuant to this part, the
department shall, among other criteria, consider the extent to which
the project or development will increase public transit ridership and
minimize automobile trips.
   (b) The department shall also grant bonus points to projects or
developments that are in an area designated by the appropriate
council of governments for infill development as part of a regional
plan. 
   (c) The department shall limit grants under this part to the
following:  
   (1) Councils of governments that demonstrate to the department
that the proposed project is consistent with a regional land use and
transportation planning document and will reduce the growth increment
of vehicle miles traveled by not less than 15 percent for the
region.  
   (2) Counties not within the region of a council of governments
that demonstrate to the department that the proposed project is
consistent with a countywide land use and transportation planning
document and will reduce the growth increment of vehicle miles
traveled by not less than 15 percent for the county. 
   (d) The department shall limit loans under this part to the
following:  
   (1) Councils of governments that demonstrate to the department
that the proposed project is consistent with a regional land use and
transportation planning document and will reduce the growth increment
of vehicle miles traveled by not less than 10 percent for the
region.  
   (2) Counties not within the region of a council of governments
that demonstrate to the department that the proposed project is
consistent with a countywide land use and transportation planning
document and will reduce the growth increment of vehicle miles
traveled by not less than 10 percent for the county. 
   SEC. 5.    Section 75066.5 is added to the  
Public Resources Code   , to read:  
   75066.5.  (a) Upon appropriation, the sum of thirty million
dollars ($30,000,000) shall be made available pursuant to subdivision
(c) of Section 75065 to councils of governments and counties to fund
grants to assist in the development of regional and countywide land
use and transportation planning documents. The grants shall be
limited to the following:
   (1) Councils of governments that commit to development of a
regional land use and transportation planning document that includes
a reduction of the growth increment of vehicle miles traveled by not
less than 10 percent for the region.
   (2) Counties not within the region of a council of governments
that commit to development of a countywide land use and
transportation planning document that includes a reduction of the
growth increment of vehicle miles traveled by not less than 10
percent for the county.
   (b) Upon appropriation, the sum of sixty million dollars
($60,000,000) shall be made available pursuant to subdivision (c) of
Section 75065 to the Department of Housing and Community Development
to provide loans to cities, counties, and cities and counties to
assist in conforming general plans, zoning ordinances, and specific
project plans to a regional or countywide land use and transportation
planning document that includes a reduction of the growth increment
of vehicle miles traveled by not less than 10 percent for the region
or county.  
  SECTION 1.    It is the intent of the Legislature
to enact legislation to create eligibility standards for the funds
that will be made available from the Highway Safety, Traffic
Reduction, Air Quality, and Port Security Bond Act of 2006 and the
Housing and Emergency Shelter Trust Fund of 2006, and to require, as
one of those standards, that a project be located in a city or county
where the council of governments or the county has adopted a
regional plan to reduce the vehicle miles traveled per household and
the city or county has amended its general plan to implement the
regional plan's goal to reduce vehicle miles traveled per household
by the percentage specified in the regional plan.  
  SEC. 2.   Section 65009 of the Government Code is
amended to read:
   65009.  (a) (1) The Legislature finds and declares that there
currently is a housing crisis in California and it is essential to
reduce delays and restraints upon expeditiously completing housing
projects.
   (2) The Legislature further finds and declares that a legal action
or proceeding challenging a decision of a city, county, or city and
county has a chilling effect on the confidence with which property
owners and local governments can proceed with projects. Legal actions
or proceedings filed to attack, review, set aside, void, or annul a
decision of a city, county, or city and county pursuant to this
division, including, but not limited to, the implementation of
general plan goals and policies that provide incentives for
affordable housing, open-space and recreational opportunities, and
other related public benefits, can prevent the completion of needed
developments even though the projects have received required
governmental approvals.
   (3) The purpose of this section is to provide certainty for
property owners and local governments regarding decisions made
pursuant to this division.
   (b) (1) In an action or proceeding to attack, review, set aside,
void, or annul a finding, determination, or decision of a public
agency made pursuant to this title at a properly noticed public
hearing, the issues raised shall be limited to those raised in the
public hearing or in written correspondence delivered to the public
agency prior to, or at, the public hearing, except where the court
finds either of the following:
   (A) The issue could not have been raised at the public hearing by
persons exercising reasonable diligence.
   (B) The body conducting the public hearing prevented the issue
from being raised at the public hearing.
   (2) If a public agency desires the provisions of this subdivision
to apply to a matter, it shall include in any public notice issued
pursuant to this title a notice substantially stating all of the
following: "If you challenge the (nature of the proposed action) in
court, you may be limited to raising only those issues you or someone
else raised at the public hearing described in this notice, or in
written correspondence delivered to the (public entity conducting the
hearing) at, or prior to, the public hearing."
   (3) The application of this subdivision to causes of action
brought pursuant to subdivision (d) applies only to the final action
taken in response to the notice to the city or clerk of the board of
supervisors. If no final action is taken, then the issue raised in
the cause of action brought pursuant to subdivision (d) shall be
limited to those matters presented at a properly noticed public
hearing or to those matters specified in the notice given to the city
or clerk of the board of supervisors pursuant to subdivision (d), or
both.
   (c) (1) Except as provided in subdivision (d), no action or
proceeding shall be maintained in any of the following cases by any
person unless the action or proceeding is commenced and service is
made on the legislative body within 90 days after the legislative
body's decision:
   (A) To attack, review, set aside, void, or annul the decision of a
legislative body to adopt or amend a general or specific plan. This
paragraph does not apply where an action is brought based upon the
complete absence of a general plan or a mandatory element thereof,
but does apply to an action attacking a general plan or mandatory
element thereof on the basis that it is inadequate.
   (B) To attack, review, set aside, void, or annul the decision of a
legislative body to adopt or amend a zoning ordinance.
   (C) To determine the reasonableness, legality, or validity of any
decision to adopt or amend any regulation attached to a specific
plan.
   (D) To attack, review, set aside, void, or annul the decision of a
legislative body to adopt, amend, or modify a development agreement.
An action or proceeding to attack, review, set aside, void, or annul
the decisions of a legislative body to adopt, amend, or modify a
development agreement shall only extend to the specific portion of
the development agreement that is the subject of the adoption,
amendment, or modification. This paragraph applies to development
agreements, amendments, and modifications adopted on or after January
1, 1996.
   (E) To attack, review, set aside, void, or annul any decision on
the matters listed in Sections 65901 and 65903, or to determine the
reasonableness, legality, or validity of any condition attached to a
variance, conditional use permit, or any other permit.
   (F) Concerning any of the proceedings, acts, or determinations
taken, done, or made prior to any of the decisions listed in
subparagraphs (A), (B), (C), (D), and (E).
   (2) In the case of an action or proceeding challenging the
adoption or revision of a housing element pursuant to this
subdivision, the action or proceeding may, in addition, be maintained
if it is commenced and service is made on the legislative body
within 60 days following the date that the Department of Housing and
Community Development reports its findings pursuant to subdivision
(h) of Section 65585.
   (d) An action or proceeding shall be commenced and the legislative
body served within one year after the accrual of the cause of action
as provided in this subdivision, if the action or proceeding meets
both of the following requirements:
   (1) It is brought in support of or to encourage or facilitate the
development of housing that would increase the community's supply of
housing affordable to persons and families with low or moderate
incomes, as defined in Section 50079.5 of the Health and Safety Code,
or with very low incomes, as defined in Section 50105 of the Health
and Safety Code, or middle-income households, as defined in Section
65008 of this code. This subdivision is not intended to require that
the action or proceeding be brought in support of or to encourage or
facilitate a specific housing development project.
   (2) It is brought with respect to actions taken pursuant to
Article 10.6 (commencing with Section 65580) of Chapter 3 of this
division, pursuant to Section 65589.5, 65863.6, 65915, or 66474.2 or
pursuant to Chapter 4.2 (commencing with Section 65913).
   A cause of action brought pursuant to this subdivision shall not
be maintained until 60 days have expired following notice to the city
or clerk of the board of supervisors by the party bringing the cause
of action, or his or her representative, specifying the deficiencies
of the general plan, specific plan, or zoning ordinance. A cause of
action brought pursuant to this subdivision shall accrue 60 days
after notice is filed or the legislative body takes a final action in
response to the notice, whichever occurs first. A notice or cause of
action brought by one party pursuant to this subdivision shall not
bar filing of a notice and initiation of a cause of action by any
other party.
   (e) Upon the expiration of the time limits provided for in this
section, all persons are barred from any further action or
proceeding.
   (f) Notwithstanding Sections 65700 and 65803, or any other
provision of law, this section shall apply to charter cities.
   (g) Except as provided in subdivision (d), this section shall not
affect any law prescribing or authorizing a shorter period of
limitation than that specified herein.