BILL ANALYSIS
AB 2508
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Date of Hearing: May 5, 2010
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
AB 2508 (Caballero) - As Amended: May 3, 2010
SUBJECT : Infill Incentive Grant Program of 2007.
SUMMARY : Creates a process for local agencies to petition to
the Department of Housing and Community Development (HCD) for a
jurisdiction reclassification if the agency's classification
under Housing Element Law jeopardizes its ability to meet
threshold requirements for the Infill Incentives Grant (IIG)
Program of 2007. Specifically, this bill :
1)Allows a local agency, for the IIG Program, to petition HCD
for an exception to the jurisdiction's classification pursuant
to Housing Element Law, if the agency believes it is unable to
meet the density requirements as specified in Housing Element
Law.
2)Provides that the local agency submit the petition with its
application for the IIG Program, and provides that the agency
shall include reasons why the agency believes the exception is
warranted.
3)Specifies that the local agency provide information supporting
the need for the exception, including, but not limited to, any
limitations that the agency may encounter in meeting the
density requirements.
4)Provides that the exception shall only be for the purposes of
the IIG Program.
EXISTING LAW :
1)Establishes the IIG Program of 2007, a competitive grant
program administered by the Department of Housing and
Community Development for the purposes of allocating funds to
selected capital improvement projects that are an integral
part of, or necessary to facilitate the development of, a
qualifying infill project or a qualifying infill area.
2)Establishes eligibility requirements for qualifying infill
projects or qualifying infill areas for the IIG Program.
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3)Provides that qualifying infill projects or areas must include
average residential densities on the parcels to be developed
that are equal to or greater than the densities described in
Housing Element Law (subparagraph (B) of paragraph (3) of
subdivision (c) of Section 65583.2 of the Government Code):
a) Thirty units per acre in jurisdictions in metropolitan
counties;
b) Twenty units per acre in suburban jurisdictions;
c) Fifteen units per acre in incorporated cities within
nonmetropolitan counties and for nonmetropolitan counties
that have micropolitan areas; and
d) Ten units per acres in rural areas.
4)Specifies that jurisdictions are classified as follows:
a) Metropolitan counties, nonmetropolitan counties, and
nonmetropolitan counties with micropolitan areas are as
determined by the United States Census Bureau;
b) Nonmetropolitan counties with micropolitan areas include
the following counties: Del Norte, Humboldt, Lake,
Mendocino, Nevada, Tehama, and Tuolumne and such other
counties as may be determined by the United States Census
Bureau to be nonmetropolitan counties with micropolitan
areas in the future;
c) Suburban jurisdictions are those located in a
Metropolitan Statistical Area (MSA) of less than 2,000,000,
unless that jurisdiction's population is greater than
100,000, in which case it is considered metropolitan.
Counties, not including the City and County of San
Francisco, are considered suburban unless they are in an
MSA of 2,000,000 or greater in population in which case
they are considered metropolitan; and,
d) Metropolitan jurisdictions are those located in an MSA
of 2,000,000 or greater, unless the jurisdiction's
population is less than 25,000 in which case it is
considered suburban.
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5)Provides that HCD adopt guidelines for the operation of the
IIG program.
6)Requires that HCD report to the Legislature on its activities
relating to the IIG program, for each fiscal year within the
duration of the IIG program.
FISCAL EFFECT : Unknown
COMMENTS :
1)The IIG Program was established in 2007 [SB 86, (Committee on
Budget and Fiscal Review), Chapter 179, Statutes of 2007] and
provides grants to fund infrastructure investments that
support residential and mixed-use infill development projects.
The program received $730 million from Proposition 1C, the
Housing and Emergency Shelter Act of 2006, and held two
competitive funding rounds. It is unclear whether additional
funds will be devoted toward the IIG program.
2)The IIG program, as a condition of eligibility, requires that
projects meet certain average residential densities. For
example, jurisdictions in metropolitan counties must meet the
required density for projects of at least 30 units per acre,
suburban jurisdictions must meet the threshold of at least 20
units per acre, and rural areas must meet at least 10 units
per acre. The definitions of "metropolitan," "suburban," and
"rural" are included in Housing Element Law (see #4 above in
the Existing Law section).
3)The City of Salinas, for example, has a population of
approximately 150,000, and based on the definitions in Housing
Element law, is therefore classified as a "metropolitan"
jurisdiction. Salinas, in order to qualify for the IIG
program, was required to have projects meeting the density of
at least 30 units per acre. The author notes that Salinas
should not be designated as a metropolitan jurisdiction for
the purposes of the IIG Program because it is not a central
city or an urban core. Additionally, the author argues that
Salinas lacks the overall infrastructure to develop at a
density at or above 30 units. Salinas was unable to compete in
the first two funding rounds because it did not have any
projects that met the density requirements.
4)AB 2508 allows a jurisdiction to submit a petition for a
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change in classification (metropolitan to suburban, for
example) to HCD, along with that jurisdiction's application
for the IIG program. The petition must explain what the
limitations are for the jurisdiction in meeting the minimum
density required by its current classification. The bill does
not require HCD to approve or deny the petition, but gives HCD
the flexibility to consider the petition as a part of the
overall application for funding.
5)Support Arguments : This bill puts the impetus on the local
agency to provide reasons why their classification is in
error, and gives HCD flexibility to determine whether a
reclassification makes sense given the quality of the project
and limitations of the local jurisdiction. Supporters argue
that small communities that are trying to implement
progressive planning within their communities should not be
shut out of a grant process based on a one-size-fits-all
standard. Additionally, AB 2508 gives HCD discretion to assist
local agencies in meeting the state's overall housing goals.
Opposition Arguments : Since both rounds of the IIG Program
are closed and no new funding is on the horizon, it may not
make sense to amend the IIG statute at this time. Instead,
the author may wish to pursue a discussion with interested
parties about the applicability of definitions contained in
Housing Element Law, and whether linking HCD program funding
to these densities may actually disincentivize a jurisdiction
from seeking state funding for what might otherwise be a good
project that fits the needs of the local community and
furthers the goals of infill development.
6)This bill was heard by the Committee on Housing and Community
Development on April 28, 2010, where it passed with a 9-0
vote.
REGISTERED SUPPORT / OPPOSITION :
Support
City of Salinas
League of California Cities
Opposition
None on file
AB 2508
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Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958