BILL ANALYSIS
AB 2508
Page 1
ASSEMBLY THIRD READING
AB 2508 (Caballero)
As Amended May 3, 2010
Majority vote
HOUSING 9-0 LOCAL GOVERNMENT 9-0
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|Ayes:|Torres, Arambula, |Ayes:|Smyth, Torlakson, |
| |Bradford, Eng, Gilmore, | |Arambula, Bradford, |
| |Knight, Saldana, | |Davis, Knight, Logue, |
| |Torlakson, Tran | |Solorio, Fong |
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SUMMARY : Allows a local agency to petition the Department of
Housing and Community Development (HCD) for an exception to its
jurisdictional classification for purposes of the Infill
Infrastructure Grant Program (IIG) if the agency believes that
it is unable to meet the related minimum housing density
requirements. Specifically, this bill :
1)Allows a local agency to submit a petition with its IIG
application.
2)Requires the petition to include the reasons why the agency
believes the exception is warranted.
3)Requires the agency to provide other information supporting
the need for the exception, including, but not limited to, any
limitations that the local agency may encounter in meeting the
related density requirements.
EXISTING LAW :
1)Establishes IIG, administered by HCD, to provide grants to
fund capital improvement projects that are an integral part
of, or necessary to facilitate the development of, residential
or mixed-use infill development.
2)Requires projects funded under IIG to have average residential
densities of at least 30 units per acre in jurisdictions in
metropolitan counties, 20 units per acres in suburban
jurisdictions, 15 units per acre in incorporated cities within
nonmetropolitan counties and in nonmetropolitan counties that
AB 2508
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have micropolitan areas, and 10 units per acres in rural
areas.
FISCAL EFFECT : None
COMMENTS : The IIG program was established in 2007 with funding
from Proposition 1C, the Housing and Emergency Shelter Act of
2006. The program provides grants to fund infrastructure
investments that support residential and mixed-use infill
development projects. The program received just over $730
million from Proposition 1C; all of these funds have been
awarded. The two IIG funding rounds were extremely competitive,
with requests for funding outstripping available resources by
approximately four to one. It is unclear when or if additional
funds will be made available for the infill program.
Under IIG, projects must meet certain average residential
densities in order to be eligible for funding. These densities
range from 10 to 30 units per acre depending on the way a
jurisdiction is classified. A jurisdiction's classification is
based on definitions established under Housing Element Law.
For the purposes of Housing Element Law and thus for the
purposes of IIG, the City of Salinas, with a population just
under 150,000, is classified as a metropolitan jurisdiction. As
such, an infill project in Salinas would have to be built at 30
units per acre or more in order to be eligible under the infill
program. The author and sponsor argue that Salinas lacks the
overall infrastructure to develop at a density above 30 units
per acre, and that Salinas should not be designated as a
metropolitan jurisdiction for the purposes of IIG because it is
not a central city or an urban core. Salinas was unable to
compete in the first two funding rounds under IIG because it did
not have any projects that met the density requirements.
The city would like the opportunity to petition HCD in any
future IIG funding rounds for a different jurisdictional
classification that would allow it to submit projects for
consideration that are at a lower density than 30 units per
acre. AB 2508 allows a jurisdiction to submit a petition for a
change in classification along with an application under IIG.
The petition must explain what the limitations are for the
jurisdiction in meeting the minimum density required by its
current classification.
AB 2508
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Analysis Prepared by : Anya Lawler / H. & C.D. / (916)
319-2085
FN: 0004294