BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 558
                                                                  Page  1

          Date of Hearing:   April 29, 2009

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Norma Torres, Chair
                  AB 558 (Portantino) - As Amended:  April 13, 2009
           
          SUBJECT  :   Land use planning:  housing element:  foster youth  
          placement.

           SUMMARY  :   Allows a city to reduce its regional housing need  
          allocation by 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 regional housing need allocation  
            (RHNA) by 10% if it adopts a program that meets all of the  
            following requirements:

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

             b)   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)   Serves as a resource to assist interested persons in  
               accessing existing services that support the placement of  
               foster youth in existing family-based households;

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

             e)   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  
            cannot be shown to have met 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 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, 2017.

           


          EXISTING LAW  

          1)Requires every city and county to prepare and adopt a general  
            plan containing seven mandatory elements, including a housing  
            element (Government Code Sections 65300 and 65302).

          2)Requires a jurisdiction's 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 (Government Code Section  
            65583).

          3)Requires cities and counties to revise their housing elements  
            every eight years based on a staggered statutory schedule  
            (Government Code Section 65588).

          4)Requires, prior to each housing element revision, that each  
            COG, in conjunction with HCD, 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.   
            Where a COG does not exist, HCD determines the local share of  
            the region's housing need (Government Code Sections  
            65584-65584.09).

          5)Requires the housing element to plan for the following income  
            categories:









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             a)   Very low-income (50% or less of area median income);

             b)   Lower-income (80% or less of area median income);

             c)   Moderate-income (between 80% and 120% of area median  
               income); and

             d)   Above moderate-income (exceeding 120% of area median  
               income).

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

          Under the state's Housing Element law, every city and county is  
          required to prepare and regularly update a housing element to  
          plan for its existing and projected housing needs.  The  
          fundamental basis for housing elements is the regional housing  
          needs assessment process.  HCD, working with population  
          projections from the Department of Finance, assigns each region  
          a regional housing need allocation (RHNA) number that indicates  
          the number of housing units the region needs over the next eight  
          years across four income categories (very low-, low-, moderate-,  
          and above moderate-income).  The COG, or HCD in areas with no  
          COG, then allocates a share of the RHNA to each city and county  
          in the region. 

          In preparing its housing element, a city or county must show  
          that it has zoned, or will zone by the end of the third year of  
          the housing element planning period, enough land at appropriate  
          densities to accommodate its share of the RHNA.  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 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 to accommodate  
          its RHNA share, then the community must adopt a program to  
          rezone land at appropriate densities to accommodate the  
          community's housing need for all income groups by the end of the  
          third year of the planning period.  With respect to sites  
          rezoned to accommodate the need for very low- and low-income  
          housing, the new zoning must allow multifamily residential use  








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          by right (i.e. without discretionary review of individual  
          projects other than design review).

          Advocates for affordable housing have long maintained that the  
          housing element process is essential in order to make sure that  
          cities and counties adequately plan for housing for all income  
          levels.  Particular attention has been paid to making sure that  
          cities and counties plan for very low- and low-income housing,  
          which are 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 attempt at changes  
          must tread very carefully.

          AB 2322 would allow cities to reduce their RHNA share by 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, and 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 look like or do, 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 it RHNA share by 10% 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. 

          The author expresses the need for the bill this way:

            "Foster youth without relative caregivers are  
            disproportionately housed in group homes, juvenile justice  
            facilities, or homes that serve multiple, unrelated foster  
            youth.  These settings meet the child's basic, immediate  
            physical needs-food, clothing, shelter-but are not always  
            adequate for the emotional needs of these traumatized youth.   
            The result is often multiple placements and instability.  The  
            best environment for children without relative caregivers is a  
            family-based household willing to take on a potentially  








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            permanent parental responsibility."

          In addition, the author points out that the number of people  
          across the state willing to become foster parents declined by  
          more than 30 percent since 2001, with some counties experiencing  
          even greater declines.

          AB 2322 takes two important policy issues-the dramatic shortage  
          of family-based placements for foster youth and planning for  
          affordable housing-and merges them in a way that makes little  
          sense.  There is no discernible nexus between the housing  
          element process and the needs of foster youth.  It is hard to  
          know if AB 2322 will have much effect on the foster parent  
          shortage given that the parameters of what a city program would  
          look like are so loosely defined, but it is very clear that it  
          will do nothing to increase affordable housing production since  
          it will allow cities to zone for less housing than they  
          otherwise would be required to do.  Given the challenges in  
          zoning at the higher densities required to support affordable  
          housing, it is likely that most participating cities would  
          choose to reduce their RHNA share at the lower income levels,  
          making it even more difficult than it already is to get  
          critically needed affordable housing in the ground.  

          The author correctly points out that the housing element process  
          does not require cities and counties to plan for the needs of  
          foster youth.  Upon examination, this "omission" in the law  
          makes perfect sense.  The housing element process is focused on  
          planning to accommodate the increased housing production  
          necessary to erase existing deficiencies in the housing supply  
          and accommodate future population growth.  Foster youth are not  
          willfully excluded from the process, they simply do not fit in  
          because they are seeking placement in existing homes rather than  
          creating a demand for additional housing units.

          While the housing element does not address the needs of existing  
          foster youth, it is a tool that helps ensure that communities  
          plan for the needs of emancipated foster youth.  These youths  
          are overwhelmingly in need of housing that is affordable and  
          already face tremendous challenges when they age out of the  
          system.  By allowing cities to reduce their responsibility to  
          plan for housing, AB 558 may actually make it more difficult for  
          former foster youth, who already experience homelessness at an  
          alarming rate, to find adequate housing.   
           








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          AB 2322 raises a number of additional concerns.  The bill asks  
          COGs and HCD to approve plans for recruiting foster parents, an  
          area in which these entities have absolutely no experience or  
          expertise.  The bill asks cities to develop programs to increase  
          the number of foster parents, despite the fact that counties  
          oversee foster care.  Counties would not even be eligible to  
          participate in the program AB 2322 creates.  Additionally, the  
          bill specifies that cities cannot continue to receive the 10%  
          RHNA share reduction in subsequent planning periods if the  
          program cannot be shown to have met 2.5% or more of the city's  
          RHNA share in the previous planning period.  Under current law,  
          a city meets its share of the RHNA primarily by zoning enough  
          land.  Given that a city is not required to zone (nor could it)  
          to accommodate foster youths in existing households, it is  
          unclear how a program to increase foster placements would ever  
          result in a city meeting any percentage of its RHNA.  If the  
          intent is that a city could take the RHNA reduction in a second  
          planning period if the program resulted in the placement of a  
          number of foster youths in family-based households equal to 2.5%  
          of the city's RHNA share, it is unclear how this would be  
          measured.  How could a city prove which foster placements were a  
          direct result of its program?

           Prior legislation  :  AB 2322 (Portantino, 2008) was identical to  
          this bill.  AB 2322 failed passage in this Committee with a 2-2  
          vote.

           Double referred  :  The Assembly Committee on Rules referred AB  
          2322 to the Committee on Local Government and Housing and  
          Community Development.  The bill passed the Assembly Committee  
          on Local Government on April 1, 2009 by a vote of 7 to 0.

           




          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Federation of State, County and Municipal Employees
          Aspiranet

           Opposition 








                                                                 AB 558
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          California Rural Legal Assistance Foundation
          Housing California
          Non-Profit Housing Association of Northern California
          Western Center on Law and Poverty
           
          Analysis Prepared by  :    Anya Lawler / H. & C.D. / (916)  
          319-2085