BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 710
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          Date of Hearing:   April 27, 2011

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Norma Torres, Chair
                    AB 710 (Skinner) - As Amended:  April 25, 2011
           
          SUBJECT  :   Local planning: infill and transit-oriented 
          development.

           SUMMARY  :   Establishes minimum parking standards for new 
          transit-oriented development.  Specifically,  this bill  :  

          1)Prohibits a city, county, or city and county, including a 
            charter city, from requiring a minimum parking standard 
            greater than one parking space per thousand square feet of 
            nonresidential improvements and one parking space per unit of 
            residential improvements for any new development project, 
            including changes of use that incorporate existing building 
            improvements, in transit intensive areas.

          2)Specifies that the minimum parking standards only apply if the 
            proposed project and immediately adjoining properties are not 
            designated for development or redevelopment at a floor area 
            ratio below 0.75.

          3)Allows jurisdictions to require higher minimum standards for 
            new development if it makes written findings based upon 
            substantial evidence in the record, including a parking 
            utilization study completed within the last 24 months, that 
            shows existing publicly available parking that includes all 
            publicly owned on-street and off-street spaces and privately 
            owned off-street spaces accessible to the general public, 
            within one-quarter mile of the project site, but excluding any 
            spaces on exclusively residential streets, have a peak 
            occupancy that exceeds 85 percent at any point during the 
            study period.

          4)Defines "transit intensive area" as an area that is within 
            one-half mile of a major transit stop or high-quality transit 
            corridor included in a regional transportation plan. 

          5)Cross-references an existing definition of major transit stop 
            in Public Resources Code Section 21064.3, but specifies that 
            it also includes major transit stops that are included in the 
            applicable regional transportation plan. 








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          6)Defines a high-quality transit corridor as a corridor with 
            fixed route bus service with service intervals no longer than 
            15 minutes during peak commute hours. 

          7)Specifies that a project is considered to be within one-half 
            mile of a major transit stop or high-quality transit corridor 
            if all parcels within the project have no more than 25 percent 
            of their area farther than one-half mile from the stop or 
            corridor and if not more than 10 percent of the residential 
            units or 100 units, whichever is less, in the project are 
            farther than one-half mile from the stop or corridor.

          8)Includes findings related to the need to reduce excessive 
            minimum parking standards to support infill and 
            transit-oriented development.

          9)Includes within the definition of "sustainable communities" 
            for purposes of the Strategic Growth Council those communities 
            that incentivize infill development.
           
          EXISTING LAW:

           1)Defines "major transit stop" as a site containing an existing 
            rail transit station, a ferry terminal served by either a bus 
            or rail transit service, or the intersection of two or more 
            major bus routes with a frequency of service interval of 15 
            minutes or less during the morning and afternoon peak commute 
            periods (Public Resources Code Section 21064.3).  

           2)Establishes the Strategic Growth Council, consisting of  the 
            Director of State Planning and Research, the Secretary of the 
            Resources Agency, the Secretary for Environmental Protection, 
            the Secretary of Business, Transportation and Housing, the 
            Secretary of California Health and Human Services, and one 
            member of the public to be appointed by the Governor (Public 
            Resources Code Section 75121).  

           3)Requires the council, among other things, to recommend 
            policies and investment strategies and priorities to the 
            Governor, the Legislature, and to appropriate state agencies 
            to encourage the development of sustainable communities, such 
            as those communities that promote equity, strengthen the 
            economy, protect the environment, and promote public health 
            and safety (Public Resources Code Section 75125).








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           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

          SB 375 (Steinberg, Chapter 728, Statutes of 2008) aims to help 
          California achieve its greenhouse gas reduction objectives by 
          promoting more efficient land use and development patterns.  SB 
          375 lays out ambitious goals for the state, but it is widely 
          acknowledged that achieving those goals will require policy 
          changes at the state, regional, and local levels. 

          AB 710 addresses one impediment to achieving the goals of SB 375 
          by requiring low minimum parking requirements-one space per 
          housing unit or one space per 1,000 square feet of commercial 
          development-in transit-intensive areas that are slated for 
          high-density development. According to the sponsor, the 
          California Infill Builders Association, excessive minimum 
          parking requirements can add significantly to the cost of 
          projects in existing developed areas by 10 to 20 percent, making 
          projects financially infeasible.   

          AB 710 allows a jurisdiction to impose higher minimum parking 
          standards if a recent parking utilization study shows that 
          existing parking spaces in the area around the proposed project 
          site are already heavily utilized. Under existing law, cities 
          and counties could require the project developer to pay the cost 
          of preparing a parking study. Nothing in the bill precludes a 
          jurisdiction from allowing additional parking in a 
          transit-intensive area if the developer and the jurisdiction 
          agree that additional parking makes sense for the project. 

           Arguments in Support
           Supporters argue that AB 710 provides a significant incentive to 
          housing and commercial developers to pursue needed infill and 
          transit-oriented development projects. According to the 
          supporters, increases in public transportation options and the 
          development of more walkable and bikeable neighborhoods reduce 
          the demand for parking. Reducing minimum parking requirements 
          for projects in developed areas, and allowing builders and the 
          market to decide how much parking is needed, can ensure 
          sufficient amounts of parking and can significantly reduce the 
          cost of development and increase housing affordability.

           Arguments in Opposition








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           Opponents argue that AB 710's one-size-fits-all approach impedes 
          local discretion in land use decision-making and ignores the 
          fact that every community is different and has different needs. 
          Opponents feel that decisions about parking are best left to the 
          discretion of local governments, who are in a much better 
          position to determine how much parking their community requires. 


           Affordable Housing Concerns
           Western Center on Law & Poverty (WCLP) and the California Rural 
          Legal Assistance Foundation (CRLAF) have expressed concern that 
          AB 710 may have serious unintended consequences for affordable 
          housing, but have not taken a position on the bill and are 
          working with the author to address their concerns. They point 
          out that the bill may undercut provisions of the state's density 
          bonus law, which provides incentives to developers of 
          market-rate housing to include affordable units in their 
          projects  The two organizations note that they have long been 
          proponents of smart growth and improved access to public transit 
          for their low-income clients, but believe that AB 710 addresses 
          one part of the problem out of context with a whole host of 
          other concerns, including environmental justice issues.
           
          Double-Referred
           This bill was also referred to the Local Government Committee, 
          where it is scheduled to be heard on May 11, 2011, should it 
          pass out of this committee.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Infill Builders Association (sponsor)
          A.G. Spanos Companies, Inc.
          Civic Enterprise Development, LLC
          Codding Enterprises
          Creative Housing Associates
          Domus Development
          JMA Ventures, LLC
          Natural Resources Defense Council
          Policy in Motion
          Township Nine
          TransForm

           Opposition 








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          City of Concord
          City of Encinitas
          City of Lakewood
           
          Analysis Prepared by  :    Anya Lawler / H. & C.D. / (916) 
          319-2085