BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Tom Torlakson, Chairman
842 (Jones)
Hearing Date: 8/7/08 Amended: 6/24/08
Consultant: Mark McKenzie Policy Vote: T.&H. 9-3
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BILL SUMMARY: AB 842 would require the Department of Housing
and Community Development (HCD), when ranking applications for
funding under the Infill Incentive Grant (Infill) Program and
the Transit Oriented Development Implementation (TOD) Program,
to award preference or priority to projects located in areas
where the local or regional entity has adopted a general plan,
transportation plan, or regional blueprint that will reduce the
growth of vehicle miles traveled (VMT) by at least 10 percent,
and the project is consistent with that planning document.
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Fiscal Impact (in thousands)
Major Provisions 2008-09 2009-10 2010-11 Fund
HCD admin: VMT assessments $237 $43 $43 Bond*
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*Split evenly between the Regional Planning, Housing, and Infill
Incentive Account and Transit-Oriented Development Fund
(Proposition 1C). See staff comments noting possibility of
General Fund impact.
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STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
The Housing and Emergency Shelter Trust Fund Act of 2006
(Proposition 1C) authorizes the issuance of $2.85 billion in
general obligation bonds, including $850 million for the Infill
Regional Planning, Housing, and Infill Incentive Account for
infill incentive grants and brownfield cleanup, including the
Infill Infrastructure Grant Program, and $300 million for the
Transit Oriented Development (TOD) Account for the TOD
Implementation Program. These funds are available to the
Department of Housing and Community Development (HCD), upon
appropriation by the Legislature. Of the $850 million available
for Infill projects and $300 million available for TOD projects,
only $400 million in Infill funds and $140 million in TOD funds
remain.
AB 842 would require HCD to modify its rating and ranking
systems for the Infill and TOD programs to award preference or
substantial priority to projects located in an area where the
planning documents adopted by the relevant local agency
incorporate a 10 percent reduction in the growth increment in
VMT. The proposed project must be consistent with that planning
document. In order to determine the effectiveness of the VMT
reduction goals, HCD would need to review existing VMT models,
consult with stakeholders, and establish guidelines so that
applicants are evaluated consistently. HCD does not currently
have staff resources with expertise in VMT modeling, so this
bill would likely require a consulting contract to review local
entities' VMT modeling and recommend criteria for inclusion in
guidelines and regulations. HCD estimates that initial costs to
implement this bill would be $237,000 for staff and consulting
contracts. Ongoing costs to allow additional time for
application review and to confirm credibility of VMT reduction
claims would be $43,000.
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AB 842 (Jones)
Staff notes that HCD is authorized to use up to 5 percent of
Proposition 1C bond funds appropriated to these programs for
administrative purposes. This bill could result in a General
Fund impact if HCD's administrative costs exceed 5 percent as a
result of the additional costs associated with assessing VMT
modeling, incorporating criteria into the guidelines, and rating
and ranking project applications for these programs.
Staff notes that existing law requires HCD to consider a
project's proximity a transit station or major transit stop, and
proximity of housing to parks, employment or retail centers,
schools, or social services when reviewing applications for the
Infill program. TOD projects must be within one quarter mile of
a transit station and additional priority is given to projects
that would increase public transit ridership and minimize
automobile trips. In short, projects funded under the existing
criteria for the Infill and TOD programs often facilitate the
goal of reducing vehicle miles traveled.
Proposed amendments would require HCD to coordinate with
Caltrans for VMT analysis.