BILL ANALYSIS                                                                                                                                                                                                    



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          SENATE THIRD READING
          SB 575 (Steinberg)
          As Amended  August 17, 2009
          Majority vote

           SENATE VOTE  :23-15  
           
           LOCAL GOVERNMENT    4-2         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Caballero, Arambula, De   |Ayes:|De Leon, Ammiano,         |
          |     |La Torre, Skinner         |     |Charles Calderon, Coto,   |
          |     |                          |     |Davis, Fuentes, Hall,     |
          |     |                          |     |John A. Perez,            |
          |     |                          |     |Skinner, Solorio,         |
          |     |                          |     |Torlakson, Hill           |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Knight, Duvall            |Nays:|Conway, Duvall, Harkey,   |
          |     |                          |     |Miller, Audra Strickland  |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Revises timelines for the adoption of the fifth  
          revision of the housing element by specified local governments,  
          provides for timelines for subsequent housing element revisions,  
          and makes other changes related to the clean-up of SB 375  
          (Steinberg), Chapter 728, Statutes 
          of 2008.  Specifically,  this bill  :

          1)Clarifies, for informational meetings required to be held by a  
            metropolitan planning organization (MPO) in each county within  
            the region for members of the board of supervisors and city  
            councils on the sustainable communities strategy (SCS) and  
            alternative planning strategy (APS), that the purpose of the  
            meetings is to discuss the SCS and APS, including the key land  
            use and planning assumptions.

          2)Clarifies that the deadline for completing required rezoning  
            shall be extended by one year 
          if the local government has completed the rezoning at densities  
            sufficient to accommodate at least 75% of the units for low-  
            and very-low income households (current law references "sites"  
            instead of "units").









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          3)Requires all local governments within the regional  
            jurisdiction of the San Diego Association of Governments  
            (SANDAG) to adopt the fifth revision of the housing element no  
            later than 18 months after adoption of the first regional  
            transportation plan (RTP) update after September 30, 2010.

          4)Specifies, for the fifth revision, that a local government  
            within the jurisdiction of SANDAG that has not adopted a  
            housing element for the fourth revision by January 1, 2009,  
            shall revise its housing element not less than every four  
            years, unless the local government does both of the following:

             a)   Adopts a housing element for the fourth revision no  
               later than March 31, 2010, which is in substantial  
               compliance with this article; and,

             b)   Completes any rezoning contained in the housing element  
               program for the fourth revision by June 30, 2010.

          5)Provides for deadlines for subsequent revisions of the housing  
            element beyond the fifth and sixth revisions.
          6)Provides, for subsequent revisions, that if a local government  
            does not adopt a housing element within 120 days of the  
            applicable deadlines, the local government shall be subject to  
            a housing element revision cycle of not less than every four  
            years until the local government has adopted two consecutive  
            revisions by the statutory deadline.

          7)Provides, if necessary, that the local government shall adopt  
            three consecutive four-year revisions by the statutory  
            deadline to ensure that when the local government adopts its  
            next housing element covering an eight-year planning period,  
            it does so at the deadline for adoption for other local  
            governments within the region also covering an eight-year  
            planning period.

          8)Requires that the MPO or regional transportation planning  
            agency for a region that has an eight-year revision interval  
            notify the Department of Housing and Community Development  
            (HCD) and the Department of Transportation (DOT) in writing of  
            the estimated adoption date for its next RTP at least 12  
            months prior to the estimated adoption date.

          9)Requires DOT to maintain and publish on its Internet Web site  








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            a current schedule of the estimated RTP adoption dates.

          10)Requires HCD to maintain and publish on its Internet Web site  
            a current schedule of the estimated and actual housing element  
            due dates.

          11)Requires each council of governments (COG) to publish on its  
            Internet Web site the estimated and actual housing element due  
            dates for the jurisdictions within its region and requires  
            COGs to send notice of these dates to interested parties.

          12)Provides, for purposes of determining the existing and  
            projected housing with a region, that the date of the next  
            scheduled revision of the housing element shall be deemed to  
            be the estimated adoption date of the RTP described in the  
            notice, plus 18 months.

          13)Defines "projection period" to be the time period for which  
            the regional housing need is calculated.

          14)Requires that the regional housing need for the new  
            projection period begins on the date of December 31 or June 30  
            that most closely precedes the end of the previous projection  
            period.

          15)Provides that meetings related to the development of grant  
            guidelines and policies and the approval of grants held by the  
            Strategic Growth Council (SGC) shall be subject to the  
            Bagley-Keene Open Meeting Act.

          16)Exempts from the provisions of the Bagley-Keene Open Meeting  
            Act a meeting at which SGC members are meeting as members of  
            the Governor's cabinet.

          17)Provides that SB 375 (Steinberg), Chapter 728, Statutes of  
            2008, shall be known and may be cited as the Sustainable  
            Communities and Climate Protection Act.

          18)Specifies, for the Tahoe Regional Planning Agency, that the  
            Tahoe MPO shall use the Regional Plan for the Lake Tahoe  
            Region as the SCS, provided it complies with requirements of  
            the bill.
          19)Defines "regional transportation plan update" to mean a  
            regional transportation plan adopted to satisfy the  








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            requirements of subdivision (d) of Section 65080.

          20)Incorporates chaptering out amendments to resolve potential  
            statutory conflicts with AB 720 (Caballero) in the event that  
            both bills are chaptered.

           EXISTING LAW  :

          1)Requires MPOs to prepare RTPs directed at achieving a  
            coordinated and balanced regional transportation system,  
            including, but not limited to, mass transportation, highway,  
            railroad, maritime, bicycle, pedestrian, goods movement, and  
            aviation facilities and services.

          2)Requires each MPO to include, within its RTP, an SCS designed  
            to achieve specified targets for GHG emission reduction; if  
            the SCS does not achieve the reduction target, the MPO must  
            prepare an APS.

          3)Requires each city, county, or city and county to prepare and  
            adopt a general plan for its jurisdiction that contains  
            certain mandatory elements, including a housing element.

          4)Provides that the housing element shall consist of an  
            identification and analysis of existing and projected housing  
            needs and a statement of goals, policies, quantified  
            objectives, financial resources, and scheduled programs for  
            the preservation, improvement, and development of housing.

          5)Requires HCD, for the fourth and subsequent revisions of the  
            housing element, to determine the existing and projected need  
            for housing for each region through the regional housing needs  
            assessment (RHNA) process.

          6)Requires, within the first year of the planning period of the  
            new housing element, the city or county to zone or rezone  
            adequate sites to accommodate the unaccommodated portion of  
            RHNA from the prior planning period, if a city or county in  
            the prior planning period failed to identify or make available  
            adequate sites to accommodate their RHNA.

          7)Requires local governments within an MPO that has elected to  
            move from a five-year to a four-year RTP cycle to adopt an  
            eight-year RHNA cycle and to adopt their next housing elements  








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            18 months after the adoption of the first RTP after the  
            election.

          8)Requires all local governments within an MPO in a  
            non-attainment region, other than those within the  
            jurisdiction of SANDAG, to adopt the fifth revision of their  
            housing elements no later than 18 months after the adoption of  
            the first RTP to be adopted after September 30, 2010.

          9)Requires local governments within SANDAG's jurisdiction to  
            adopt their fifth revision no later than five years from the  
            fourth revision, and their sixth revision no later than 18  
            months after the adoption of the first RTP to be adopted after  
            the fifth revision due date.

          10)Requires the MPO to conduct at least two informational  
            meetings in each county within the region for members of the  
            board of supervisors and city councils on the SCS and APS.

          11)Provides that the purpose of the informational meetings held  
            by MPOs is to present a draft of the SCS to the members of the  
            board of supervisors and the city council members in that  
            county and to solicit and consider their input and  
            recommendations.

          12)Provides for the creation of SGC, and provides that SGC  
            shall:

             a)   Identify and review activities and funding programs of  
               member state agencies that may be coordinated to improve  
               air and water quality, improve natural resource protection,  
               increase the availability of affordable housing, improve  
               transportation, meet the goals of the California Global  
               Warming Solutions Act of 2006, encourage sustainable land  
               use planning, and revitalize urban and community centers in  
               a sustainable manner;

             b)   Recommend policies and investment strategies and  
               priorities to the Governor, the Legislature, and to  
               appropriate state agencies to encourage the development of  
               sustainable communities;

             c)   Provide, fund, and distribute data and information to  
               local governments and regional agencies that will assist in  








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               developing and planning sustainable communities;

             d)   Manage and award grants and loans to support the  
               planning and development of sustainable communities; and,

             e)   Develop guidelines for awarding financial assistance and  
               eligibility, and develop criteria for determining the  
               amount of financial assistance.

          13)Provides that SGC's meetings shall be open to the public and  
            shall be subject to the Bagley-Keene Open Meeting Act.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, by specifying duties for local governments, the bill  
          contains mandated costs.  However, since the measure primarily  
          modifies and clarifies provisions contained in SB 375 and other  
          elements of existing law, the incremental costs attributable to  
          this bill are likely to be minor.

           COMMENTS  :  This bill is a clean-up measure to SB 375, which  
          links housing policy, land use and transportation planning, and  
          environmental review with climate policy, with the intent of  
          reducing greenhouse gas emissions through the development of an  
          SCS, thus setting up a process to help achieve the goals of the  
          Global Warming Solutions Act of 2006 [AB 32 (Nunez), Chapter  
          488, Statutes of 2006].

          This bill makes some technical corrections to clean-up SB 375,  
          but the majority of the provisions contained in this bill deal  
          with housing elements and the housing element revision adoption  
          schedule.

          One of the major sections of SB 375 coordinates the RHNA process  
          with the regional transportation planning process.  Prior to SB  
          375, local governments were required to revise their housing  
          elements every five years.  The RHNA process was also on a  
          five-year schedule.  
          However, most MPOs adopt an RTP every four years pursuant to  
          federal law, meaning that the planning for housing and  
          transportation rarely occurs at the same.  SB 375 aligns these  
          processes by creating an eight-year housing element cycle,  
          meaning that one RHNA planning period will equal two RTP  
          planning periods.









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          The alignment provisions contained in SB 375 take effect for the  
          fifth revision of the housing element for local governments.   
          Under the provisions of SB 375, once the local government  
          receives its RHNA allocation (and adopts an RTP at the same  
          time), it then has 18 months to prepare its housing element and  
          submit it to HCD - beginning with the first RTP to be adopted  
          after September 30, 2010.  Those local governments that fail to  
          submit a housing element to HCD within the 18-month timeline  
          would fall out of the eight-year housing element cycle and will  
          then be required to submit their housing element every four  
          years to HCD.

          The timelines specified in SB 375 for RTP and housing element  
          adoption, however, are problematic for SANDAG and local  
          governments in SANDAG's regional jurisdiction. Under the  
          provisions of SB 375, the fifth housing element revision for  
          local governments in SANDAG's region would be due the summer of  
          2010, and the sixth housing element revision would be due in  
          December of 2012 (thus creating a 2  year "interim" housing  
          element).  Given that SANDAG will be the first MPO to implement  
          the provisions of SB 375, SANDAG is seeking to eliminate the  
          "interim" housing element cycle, which would allow the region to  
          focus its resources on developing the next RHNA, SCS, and RTP in  
          accordance with the goals of SB 375.

          Under SB 575's provisions, those local governments in SANDAG's  
          jurisdiction that have not adopted a housing element for the  
          fourth revision by January 1, 2009, will then be required to  
          revise their housing elements not less than every four years,  
          unless they can meet both of the following requirements:  1) The  
          jurisdiction adopts a housing element for the fourth revision no  
          later than March 31, 2010 which is in substantial compliance,  
          and, 2) The jurisdiction completes any rezoning contained in the  
          housing element program for the fourth revision by June 30,  
          2010.

          There is a possibility that an MPO on an eight-year RHNA cycle  
          will have cities within its jurisdiction that are on a four-year  
          housing element cycle.  SB 375 and this bill are silent on how  
          the RHNA allocation process would work for those local  
          governments that are on a four-year cycle - would the local  
          government split the RHNA number in half and plan for half the  
          number in its housing element?  Or, would the MPO assign a  
          number halfway through the planning period to provide those  








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          local governments on a four-year schedule with their RHNA  
          number?  The Legislature may wish to ask the author to address  
          this in this bill, since this question may create confusion for  
          local governments as they implement SB 375.


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


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