BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
326 (Strickland)
Hearing Date: 05/26/2009 Amended: 04/13/2009
Consultant: Mark McKenzie Policy Vote: T&H 10-0
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BILL SUMMARY: SB 326 would require the housing element to
include a calculation of a locality's existing and projected
foreclosure rate and its impact on housing needs.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
HCD review No new costs to ensure compliance.General
Mandate Unknown, moderate costs to local Local/
governments. Unlikely to be
reimbursable. General
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STAFF COMMENTS: For vote only.
The Planning and Zoning Law requires cities and counties to
prepare and adopt a general plan, including a housing element to
guide the future growth of a community. A housing element must
identify and analyze existing and projected housing needs,
identify adequate sites with appropriate zoning to meet its fair
share of the regional housing need, and ensure that regulatory
systems provide opportunities for, and do not unduly constrain,
housing development. The Department of Housing and Community
Development reviews both draft and adopted housing elements to
determine whether or not they are in substantial compliance with
the law.
SB 326 would require cities and counties to include within the
housing needs assessment portion of their housing elements a
quantification of their existing and projected foreclosure rates
and an analysis of the impact on housing needs.
Legislative Counsel has keyed SB 326 as a state-mandated local
program. Recent decisions by the Commission on State Mandates
(COSM), however, indicate that it is unlikely that local
governments would succeed in filing a test claim for
reimbursement for the higher level of service imposed by this
bill. In 2005, the COSM reversed previous decisions that had
provided for reimbursement to local governments and councils of
government (COGs) for the "Regional Housing Needs Determination"
mandate (Statutes of 1980, Chapter 1143). On reconsideration of
the previous decisions, the COSM determined, in light of
statutes enacted and court decisions rendered since 1980, that
previously approved test claims are not reimbursable because
cities, counties, and COGs have fee authority for this program,
as provided in Government Code Sections 65104 and 65584.1. In
light of these decisions, staff notes that the COSM would
probably not approve a claim for reimbursement related to SB 326
because local entities have the authority to charge fees for
planning costs, including costs associated with housing element
requirements. If a successful claim were filed, however, costs
would likely be relatively minor for each agency to comply with
the requirements of this bill.