BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 558
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          Date of Hearing:  April 1, 2009

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                             Anna Marie Caballero, Chair
               AB 558 (Portantino) - As Introduced:  February 25, 2009
           
          SUBJECT  :  Land use planning: housing element: foster youth  
          placement.

           SUMMARY  :  Allows a city to reduce its regional housing need  
          allocation (RHNA) by up to 10% if it adopts a program to  
          actively promote and assist in the placement of foster youth in  
          existing family-based households.  Specifically,  this bill  :

          1)Allows a city to reduce its RHNA by up to 10% if it adopts a  
            program that meets all of the following requirements:

             a)   It actively promotes placement of foster youth in  
               existing family-based households through advertisement and  
               city-based incentives;

             b)   It provides a process for coordinating city and county  
               assistance to help interested persons by providing  
               information and documents necessary to meet the  
               responsibility of caring for foster youth;

             c)   It serves as a resource to assist interested persons in  
               gaining access to existing services that support the  
               placement of foster youth in existing family-based  
               households;

             d)   It provides a plan to measure the success of the  
               program, in coordination with the county's current system  
               of data outcomes; and,

             e)   It is approved by the council of governments (COG) that  
               assigns the city's RHNA share, or by the Department of  
               Housing and Community Development (HCD) if there is no COG.

          2)Prohibits the COG or HCD from approving the program for a  
            subsequent housing element planning period if the program was  
            not responsible for meeting 2.5% or more of the city's RHNA  
            share in the previous planning period.

          3)Limits participation to five cities per COG and five cities  








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            from areas not covered by COGs.

          4)Requires each city that adopts a program to submit to the COG  
            or HCD, as appropriate, two progress reports per planning  
            period on dates established by the COG or HCD.

          5)Requires that these reports, include, but not be limited to,  
            the number of foster placements with a duration of one year or  
            more that occurred within the reporting period as verified by  
            the county program that manages foster placements.

          6)Sunsets the bill's provisions on January 1, 2016, unless a  
            later enacted statute deletes or extends the date.

          7)Makes a number of findings and declarations regarding the  
            problems faced by foster youth and the need to give cities  
            another tool to meet their RHNA requirement by involving them  
            in the task of identifying family-based environments for  
            foster youth.

           EXISTING LAW  :

          1)Requires every city and county to prepare and adopt a general  
            plan containing seven mandatory elements, including a housing  
            element. 

          2)Requires the housing element to 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.

          3)Requires each COG, in conjunction with HCD, and prior to each  
            housing element revision, to prepare a regional housing needs  
            assessment and allocate to each jurisdiction in the region its  
            fair share of the housing need for all income categories.

          4)Requires HCD to determine the local share of the region's  
            housing need in an area where a COG does not exist.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :









                                                                  AB 558
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          1)AB 558 is substantially similar to a bill heard in committee  
            in 2008 - AB 2322 (Portantino).  That bill passed out of the  
            Local Government Committee, but was ultimately held in the  
            Assembly Housing & Community Development Committee.

          2)This bill would allow cities to reduce their RHNA share by up  
            to 10% if they adopt a program to promote the placement of  
            foster youth in family-based households.  The program would  
            have to be approved by the COG, or HCD in areas with no COG.   
            Only five cities per COG and five cities in non-COG areas  
            could adopt such a program.  The bill sets forth very general  
            guidelines for what a program would entail, including actively  
            promoting placement of foster youth in existing family-based  
            households through advertisement and city-based incentives.  A  
            city would not be able to continue to reduce its RHNA share in  
            the next housing element planning period if the program was  
            not responsible for meeting at least 2.5% of the city's share  
            of the regional housing need in the previous planning period.

          3)The regional housing needs assessment is a fundamental  
            component of the housing element update process undertaken by  
            a city or county.  A RHNA is a short-term projection of  
            additional housing units needed to accommodate existing  
            households and projected household growth of all income levels  
            by the end of the housing element planning period. RHNAs  
            establish minimum housing development capacity that cities and  
            counties are to make available via their land use powers to  
            accommodate growth within a short-term planning period.  

          4)Cities and counties are required to demonstrate that sites are  
            adequate to accommodate housing for each income group based on  
            zoning (after taking into consideration various individual  
            site factors).  With respect to the zoning, density is used as  
            a proxy for affordability.  Jurisdictions may establish the  
            adequacy of a site for very low- or low-income housing by  
            demonstrating that the site realistically allows the densities  
            established in statute (commonly referred to as the "Mullin  
            densities") or by providing an analysis of how a lower density  
            can accommodate the need for affordable housing.  To the  
            extent that a community does not have adequate sites within  
            its existing inventory of residentially zoned land, then the  
            community must adopt a program to rezone land at appropriate  
            densities to accommodate the community's housing need for all  
            income groups during the planning period.  With respect to  
            sites rezoned to accommodate its need for very low- and  








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            low-income housing, the new zoning must allow multifamily  
            residential use by right (i.e. without discretionary review of  
            individual projects other than design review).

          5)Advocates for affordable housing have long maintained that the  
            RHNA process is necessary to make sure that cities and  
            counties adequately plan for housing for all income levels,  
            with a particular emphasis on planning for very low- and  
            low-income housing, which is often both the most needed type  
            of housing and the hardest to provide.  Local governments, for  
            their part, have complained about inconsistencies and  
            inequities in the allocation of RHNA numbers and certification  
            of housing elements by HCD.  In 2003 a housing element working  
            group comprised of stakeholders from all sides of the issue  
            agreed on two pieces of legislation, AB 2158 (Lowenthal),  
            Chapter 696, Statutes of 2003, and AB 2348 (Mullin), Chapter   
            724, Statutes of 2003.  These bills eased some of the tension  
            between the parties, but the issue of RHNA remains sensitive,  
            and any effort to revise it must tread very carefully.

          6)According to the author, the purpose of AB 558 is to inspire  
            city involvement in the placement of foster youth in  
            family-based households.  The author notes that the RHNA  
            process requires cities to zone for future housing needs in  
            four categories - very low, low, moderate, and above moderate  
            - but does not require planning for housing needs of foster  
            youth ages 0 - 18 who will need placement in existing homes.

          7)Previous legislative attempts seeking relief from the RHNA  
            process have not met with success.  The bills that have come  
            through this Committee in prior years have taken the approach  
            that a good practice, with respect to the provision of  
            housing, should result in a credit toward meeting the city or  
            county's RHNA number.  AB 558, however, takes two critically  
            important but unrelated issues - lack of foster parents and  
            lack of affordable housing production - and merges them in a  
            way that presents a conflict.  The major distinction is that  
            AB 558 seeks to find existing homes for foster youth, while  
            the intent of the RHNA process is to plan for future  
            (additional) housing needs as California's population grows.

          8)Counties manage social services, like foster care, for  
            residents within their jurisdiction.  This bill would only  
            allow for a reduction in RHNA for a city, even though cities  
            do not presently have the responsibility for providing such  








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            services.  The author notes that this is deliberate, and that  
            the purpose of the bill is to engage cities in the process of  
            placing foster youth.  The Committee may want to consider  
            whether the appropriate responsibility for placement of foster  
            youth vests with the county, the city, or both, since this  
            bill would allow for cities to undertake a new responsibility  
            that has traditionally been provided by the county.

          9)This bill is double-referred to the Committee on Housing and  
            Community Development.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Federation of State, County and Municipal Employees
          Aspiranet

           Opposition 
           
          CRLA Foundation (unless amended)
          Western Center on Law & Poverty (unless amended)

           
          Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)  
          319-3958