BILL NUMBER: AB 1198	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Norby

                        FEBRUARY 18, 2011

   An act to repeal Sections 65584, 65584.01, 65584.02, 65584.03,
65584.04, 65584.05, 65584.06, 65584.07, 65584.08, 65584.09, 65584.1,
65584.2, 65584.6, and 65584.7 of the Government Code, relating to
land use.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1198, as introduced, Norby. Land use: housing element: regional
housing need assessment.
   The Planning and Zoning Law requires a city or county to prepare
and adopt a comprehensive, long-term general plan, and requires the
general plan to include certain mandatory elements, including a
housing element. That law also requires the housing element, in turn,
to include, among other things, an assessment of housing needs and
an inventory of resources and constraints relevant to the meeting of
those needs. That law further requires the Department of Housing and
Community Development, for specified revisions of the housing
element, to determine the existing and projected need for housing for
each region, as specified. That law sets forth manners for
determining the regional housing need, bases for allocating regional
housing need, bases for revising, modifying, or appealing an
allocation of regional housing need, and other provisions relating to
assessment or allocation of regional housing need.
   This bill would repeal the requirement that the department
determine the existing and projected need for housing for each
region, as specified, and other specified provisions relating to the
assessment or allocation of regional housing need.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 65584 of the Government Code is repealed.

   65584.  (a) (1) For the fourth and subsequent revisions of the
housing element pursuant to Section 65588, the department shall
determine the existing and projected need for housing for each region
pursuant to this article. For purposes of subdivision (a) of Section
65583, the share of a city or county of the regional housing need
shall include that share of the housing need of persons at all income
levels within the area significantly affected by the general plan of
the city or county.
   (2) While it is the intent of the Legislature that cities,
counties, and cities and counties should undertake all necessary
actions to encourage, promote, and facilitate the development of
housing to accommodate the entire regional housing need, it is
recognized, however, that future housing production may not equal the
regional housing need established for planning purposes.
   (b) The department, in consultation with each council of
governments, shall determine each region's existing and projected
housing need pursuant to Section 65584.01 at least two years prior to
the scheduled revision required pursuant to Section 65588. The
appropriate council of governments, or for cities and counties
without a council of governments, the department, shall adopt a final
regional housing need plan that allocates a share of the regional
housing need to each city, county, or city and county at least one
year prior to the scheduled revision for the region required by
Section 65588. The allocation plan prepared by a council of
governments shall be prepared pursuant to Sections 65584.04 and
65584.05 with the advice of the department.
   (c) Notwithstanding any other provision of law, the due dates for
the determinations of the department or for the council of
governments, respectively, regarding the regional housing need may be
extended by the department by not more than 60 days if the extension
will enable access to more recent critical population or housing
data from a pending or recent release of the United States Census
Bureau or the Department of Finance. If the due date for the
determination of the department or the council of governments is
extended for this reason, the department shall extend the
corresponding housing element revision deadline pursuant to Section
65588 by not more than 60 days.
   (d) The regional housing needs allocation plan shall be consistent
with all of the following objectives:
   (1) Increasing the housing supply and the mix of housing types,
tenure, and affordability in all cities and counties within the
region in an equitable manner, which shall result in each
jurisdiction receiving an allocation of units for low- and very low
income households.
   (2) Promoting infill development and socioeconomic equity, the
protection of environmental and agricultural resources, and the
encouragement of efficient development patterns.
   (3) Promoting an improved intraregional relationship between jobs
and housing.
   (4) Allocating a lower proportion of housing need to an income
category when a jurisdiction already has a disproportionately high
share of households in that income category, as compared to the
countywide distribution of households in that category from the most
recent decennial United States census.
   (e) For purposes of this section, "household income levels" are as
determined by the department as of the most recent decennial census
pursuant to the following code sections:
   (1) Very low incomes as defined by Section 50105 of the Health and
Safety Code.
   (2) Lower incomes, as defined by Section 50079.5 of the Health and
Safety Code.
   (3) Moderate incomes, as defined by Section 50093 of the Health
and Safety Code.
   (4) Above moderate incomes are those exceeding the moderate-income
level of Section 50093 of the Health and Safety Code.
   (f) Notwithstanding any other provision of law, determinations
made by the department, a council of governments, or a city or county
pursuant to this section or Section 65584.01, 65584.02, 65584.03,
65584.04, 65584.05, 65584.06, 65584.07, or 65584.08 are exempt from
the California Environmental Quality Act (Division 13 (commencing
with Section 21000) of the Public Resources Code). 
  SEC. 2.  Section 65584.01 of the Government Code is repealed.

   65584.01.  (a) For the fourth and subsequent revision of the
housing element pursuant to Section 65588, the department, in
consultation with each council of governments, where applicable,
shall determine the existing and projected need for housing for each
region in the following manner:
   (b) The department's determination shall be based upon population
projections produced by the Department of Finance and regional
population forecasts used in preparing regional transportation plans,
in consultation with each council of governments. If the total
regional population forecast for the planning period, developed by
the council of governments and used for the preparation of the
regional transportation plan, is within a range of 3 percent of the
total regional population forecast for the planning period over the
same time period by the Department of Finance, then the population
forecast developed by the council of governments shall be the basis
from which the department determines the existing and projected need
for housing in the region. If the difference between the total
population growth projected by the council of governments and the
total population growth projected for the region by the Department of
Finance is greater than 3 percent, then the department and the
council of governments shall meet to discuss variances in methodology
used for population projections and seek agreement on a population
projection for the region to be used as a basis for determining the
existing and projected housing need for the region. If no agreement
is reached, then the population projection for the region shall be
the population projection for the region prepared by the Department
of Finance as may be modified by the department as a result of
discussions with the council of governments.
   (c) (1) At least 26 months prior to the scheduled revision
pursuant to Section 65588 and prior to developing the existing and
projected housing need for a region, the department shall meet and
consult with the council of governments regarding the assumptions and
methodology to be used by the department to determine the region's
housing needs. The council of governments shall provide data
assumptions from the council's projections, including, if available,
the following data for the region:
   (A) Anticipated household growth associated with projected
population increases.
   (B) Household size data and trends in household size.
   (C) The rate of household formation, or headship rates, based on
age, gender, ethnicity, or other established demographic measures.
   (D) The vacancy rates in existing housing stock, and the vacancy
rates for healthy housing market functioning and regional mobility,
as well as housing replacement needs.
   (E) Other characteristics of the composition of the projected
population.
   (F) The relationship between jobs and housing, including any
imbalance between jobs and housing.
   (2) The department may accept or reject the information provided
by the council of governments or modify its own assumptions or
methodology based on this information. After consultation with the
council of governments, the department shall make determinations in
writing on the assumptions for each of the factors listed in
subparagraphs (A) to (F), inclusive, of paragraph (1) and the
methodology it shall use and shall provide these determinations to
the council of governments.
   (d) (1) After consultation with the council of governments, the
department shall make a determination of the region's existing and
projected housing need based upon the assumptions and methodology
determined pursuant to subdivision (c). The region's existing and
projected housing need shall reflect the achievement of a feasible
balance between jobs and housing within the region using the regional
employment projections in the applicable regional transportation
plan. Within 30 days following notice of the determination from the
department, the council of governments may file an objection to the
department's determination of the region's existing and projected
housing need with the department.
   (2) The objection shall be based on and substantiate either of the
following:
   (A) The department failed to base its determination on the
population projection for the region established pursuant to
subdivision (b), and shall identify the population projection which
the council of governments believes should instead be used for the
determination and explain the basis for its rationale.
   (B) The regional housing need determined by the department is not
a reasonable application of the methodology and assumptions
determined pursuant to subdivision (c). The objection shall include a
proposed alternative determination of its regional housing need
based upon the determinations made in subdivision (c), including
analysis of why the proposed alternative would be a more reasonable
application of the methodology and assumptions determined pursuant to
subdivision (c).
   (3) If a council of governments files an objection pursuant to
this subdivision and includes with the objection a proposed
alternative determination of its regional housing need, it shall also
include documentation of its basis for the alternative
determination. Within 45 days of receiving an objection filed
pursuant to this section, the department shall consider the objection
and make a final written determination of the region's existing and
projected housing need that includes an explanation of the
information upon which the determination was made. 
  SEC. 3.  Section 65584.02 of the Government Code is repealed.

   65584.02.  (a) For the fourth and subsequent revisions of the
housing element pursuant to Section 65588, the existing and projected
need for housing may be determined for each region by the department
as follows, as an alternative to the process pursuant to Section
65584.01:
   (1) In a region in which at least one subregion has accepted
delegated authority pursuant to Section 65584.03, the region's
housing need shall be determined at least 26 months prior to the
housing element update deadline pursuant to Section 65588. In a
region in which no subregion has accepted delegation pursuant to
Section 65584.03, the region's housing need shall be determined at
least 24 months prior to the housing element deadline.
   (2) At least six months prior to the department's determination of
regional housing need pursuant to paragraph (1), a council of
governments may request the use of population and household forecast
assumptions used in the regional transportation plan. This request
shall include all of the following:
   (A) Proposed data and assumptions for factors contributing to
housing need beyond household growth identified in the forecast.
These factors shall include allowance for vacant or replacement
units, and may include other adjustment factors.
   (B) A proposed planning period that is not longer than the period
of time covered by the regional transportation improvement plan or
plans of the region pursuant to Section 14527, but a period not less
than five years, and not longer than six years.
   (C) A comparison between the population and household assumptions
used for the Regional Transportation Plan with population and
household estimates and projections of the Department of Finance.
   (b) The department shall consult with the council of governments
regarding requests submitted pursuant to paragraph (2) of subdivision
(a). The department may seek advice and consult with the Demographic
Research Unit of the Department of Finance, the State Department of
Transportation, a representative of a contiguous council of
governments, and any other party as deemed necessary. The department
may request that the council of governments revise data, assumptions,
or methodology to be used for the determination of regional housing
need, or may reject the request submitted pursuant to paragraph (2)
of subdivision (a). Subsequent to consultation with the council of
governments, the department will respond in writing to requests
submitted pursuant to paragraph (1) of subdivision (a).
   (c) If the council of governments does not submit a request
pursuant to subdivision (a), or if the department rejects the request
of the council of governments, the determination for the region
shall be made pursuant to Sections 65584 and 65584.01. 
  SEC. 4.  Section 65584.03 of the Government Code is repealed.

   65584.03.  (a) At least 28 months prior to the scheduled housing
element update required by Section 65588, at least two or more cities
and a county, or counties, may form a subregional entity for the
purpose of allocation of the subregion's existing and projected need
for housing among its members in accordance with the allocation
methodology established pursuant to Section 65584.04. The purpose of
establishing a subregion shall be to recognize the community of
interest and mutual challenges and opportunities for providing
housing within a subregion. A subregion formed pursuant to this
section may include a single county and each of the cities in that
county or any other combination of geographically contiguous local
governments and shall be approved by the adoption of a resolution by
each of the local governments in the subregion as well as by the
council of governments. All decisions of the subregion shall be
approved by vote as provided for in rules adopted by the local
governments comprising the subregion or shall be approved by vote of
the county or counties, if any, and the majority of the cities with
the majority of population within a county or counties.
   (b) Upon formation of the subregional entity, the entity shall
notify the council of governments of this formation. If the council
of governments has not received notification from an eligible
subregional entity at least 28 months prior to the scheduled housing
element update required by Section 65588, the council of governments
shall implement the provisions of Sections 65584 and 65584.04. The
delegate subregion and the council of governments shall enter into an
agreement that sets forth the process, timing, and other terms and
conditions of the delegation of responsibility by the council of
governments to the subregion.
   (c) At least 25 months prior to the scheduled revision, the
council of governments shall determine the share of regional housing
need assigned to each delegate subregion. The share or shares
allocated to the delegate subregion or subregions by a council of
governments shall be in a proportion consistent with the distribution
of households assumed for the comparable time period of the
applicable regional transportation plan. Prior to allocating the
regional housing needs to any delegate subregion or subregions, the
council of governments shall hold at least one public hearing, and
may consider requests for revision of the proposed allocation to a
subregion. If a proposed revision is rejected, the council of
governments shall respond with a written explanation of why the
proposed revised share has not been accepted.
   (d) Each delegate subregion shall fully allocate its share of the
regional housing need to local governments within its subregion. If a
delegate subregion fails to complete the regional housing need
allocation process among its member jurisdictions in a manner
consistent with this article and with the delegation agreement
between the subregion and the council of governments, the allocations
to member jurisdictions shall be made by the council of governments.

  SEC. 5.  Section 65584.04 of the Government Code is repealed.

   65584.04.  (a) At least two years prior to a scheduled revision
required by Section 65588, each council of governments, or delegate
subregion as applicable, shall develop a proposed methodology for
distributing the existing and projected regional housing need to
cities, counties, and cities and counties within the region or within
the subregion, where applicable pursuant to this section. The
methodology shall be consistent with the objectives listed in
subdivision (d) of Section 65584.
   (b) (1) No more than six months prior to the development of a
proposed methodology for distributing the existing and projected
housing need, each council of governments shall survey each of its
member jurisdictions to request, at a minimum, information regarding
the factors listed in subdivision (d) that will allow the development
of a methodology based upon the factors established in subdivision
(d).
   (2) The council of governments shall seek to obtain the
information in a manner and format that is comparable throughout the
region and utilize readily available data to the extent possible.
   (3) The information provided by a local government pursuant to
this section shall be used, to the extent possible, by the council of
governments, or delegate subregion as applicable, as source
information for the methodology developed pursuant to this section.
The survey shall state that none of the information received may be
used as a basis for reducing the total housing need established for
the region pursuant to Section 65584.01.
   (4) If the council of governments fails to conduct a survey
pursuant to this subdivision, a city, county, or city and county may
submit information related to the items listed in subdivision (d)
prior to the public comment period provided for in subdivision (c).
   (c) Public participation and access shall be required in the
development of the methodology and in the process of drafting and
adoption of the allocation of the regional housing needs.
Participation by organizations other than local jurisdictions and
councils of governments shall be solicited in a diligent effort to
achieve public participation of all economic segments of the
community. The proposed methodology, along with any relevant
underlying data and assumptions, and an explanation of how
information about local government conditions gathered pursuant to
subdivision (b) has been used to develop the proposed methodology,
and how each of the factors listed in subdivision (d) is incorporated
into the methodology, shall be distributed to all cities, counties,
any subregions, and members of the public who have made a written
request for the proposed methodology. The council of governments, or
delegate subregion, as applicable, shall conduct at least one public
hearing to receive oral and written comments on the proposed
methodology.
   (d) To the extent that sufficient data is available from local
governments pursuant to subdivision (b) or other sources, each
council of governments, or delegate subregion as applicable, shall
include the following factors to develop the methodology that
allocates regional housing needs:
   (1) Each member jurisdiction's existing and projected jobs and
housing relationship.
   (2) The opportunities and constraints to development of additional
housing in each member jurisdiction, including all of the following:

   (A) Lack of capacity for sewer or water service due to federal or
state laws, regulations or regulatory actions, or supply and
distribution decisions made by a sewer or water service provider
other than the local jurisdiction that preclude the jurisdiction from
providing necessary infrastructure for additional development during
the planning period.
   (B) The availability of land suitable for urban development or for
conversion to residential use, the availability of underutilized
land, and opportunities for infill development and increased
residential densities. The council of governments may not limit its
consideration of suitable housing sites or land suitable for urban
development to existing zoning ordinances and land use restrictions
of a locality, but shall consider the potential for increased
residential development under alternative zoning ordinances and land
use restrictions. The determination of available land suitable for
urban development may exclude lands where the Federal Emergency
Management Agency (FEMA) or the Department of Water Resources has
determined that the flood management infrastructure designed to
protect that land is not adequate to avoid the risk of flooding.
   (C) Lands preserved or protected from urban development under
existing federal or state programs, or both, designed to protect open
space, farmland, environmental habitats, and natural resources on a
long-term basis.
   (D) County policies to preserve prime agricultural land, as
defined pursuant to Section 56064, within an unincorporated area.
   (3) The distribution of household growth assumed for purposes of a
comparable period of regional transportation plans and opportunities
to maximize the use of public transportation and existing
transportation infrastructure.
   (4) The market demand for housing.
   (5) Agreements between a county and cities in a county to direct
growth toward incorporated areas of the county.
   (6) The loss of units contained in assisted housing developments,
as defined in paragraph (9) of subdivision (a) of Section 65583, that
changed to non-low-income use through mortgage prepayment, subsidy
contract expirations, or termination of use restrictions.
   (7) High-housing cost burdens.
   (8) The housing needs of farmworkers.
   (9) The housing needs generated by the presence of a private
university or a campus of the California State University or the
University of California within any member jurisdiction.
   (10) Any other factors adopted by the council of governments.
   (e) The council of governments, or delegate subregion, as
applicable, shall explain in writing how each of the factors
described in subdivision (d) was incorporated into the methodology
and how the methodology is consistent with subdivision (d) of Section
65584. The methodology may include numerical weighting.
   (f) Any ordinance, policy, voter-approved measure, or standard of
a city or county that directly or indirectly limits the number of
residential building permits issued by a city or county shall not be
a justification for a determination or a reduction in the share of a
city or county of the regional housing need.
   (g) In addition to the factors identified pursuant to subdivision
(d), the council of governments, or delegate subregion, as
applicable, shall identify any existing local, regional, or state
incentives, such as a priority for funding or other incentives
available to those local governments that are willing to accept a
higher share than proposed in the draft allocation to those local
governments by the council of governments or delegate subregion
pursuant to Section 65584.05.
   (h) Following the conclusion of the 60-day public comment period
described in subdivision (c) on the proposed allocation methodology,
and after making any revisions deemed appropriate by the council of
governments, or delegate subregion, as applicable, as a result of
comments received during the public comment period, each council of
governments, or delegate subregion, as applicable, shall adopt a
final regional, or
subregional, housing need allocation methodology and provide notice
of the adoption of the methodology to the jurisdictions within the
region, or delegate subregion as applicable, and to the department.
   (i) (1) It is the intent of the Legislature that housing planning
be coordinated and integrated with the regional transportation plan.
To achieve this goal, the allocation plan shall allocate housing
units within the region consistent with the development pattern
included in the sustainable communities strategy.
   (2) The final allocation plan shall ensure that the total regional
housing need, by income category, as determined under Section 65584,
is maintained, and that each jurisdiction in the region receive an
allocation of units for low- and very low income households.
   (3) The resolution approving the final housing need allocation
plan shall demonstrate that the plan is consistent with the
sustainable communities strategy in the regional transportation plan.

  SEC. 6.  Section 65584.05 of the Government Code is repealed.

   65584.05.  (a) At least one and one-half years prior to the
scheduled revision required by Section 65588, each council of
governments and delegate subregion, as applicable, shall distribute a
draft allocation of regional housing needs to each local government
in the region or subregion, where applicable, based on the
methodology adopted pursuant to Section 65584.04. The draft
allocation shall include the underlying data and methodology on which
the allocation is based. It is the intent of the Legislature that
the draft allocation should be distributed prior to the completion of
the update of the applicable regional transportation plan. The draft
allocation shall distribute to localities and subregions, if any,
within the region the entire regional housing need determined
pursuant to Section 65584.01 or within subregions, as applicable, the
subregion's entire share of the regional housing need determined
pursuant to Section 65584.03.
   (b) Within 60 days following receipt of the draft allocation, a
local government may request from the council of governments or the
delegate subregion, as applicable, a revision of its share of the
regional housing need in accordance with the factors described in
paragraphs (1) to (9), inclusive, of subdivision (d) of Section
65584.04, including any information submitted by the local government
to the council of governments pursuant to subdivision (b) of that
section. The request for a revised share shall be based upon
comparable data available for all affected jurisdictions and accepted
planning methodology, and supported by adequate documentation.
   (c) Within 60 days after the request submitted pursuant to
subdivision (b), the council of governments or delegate subregion, as
applicable, shall accept the proposed revision, modify its earlier
determination, or indicate, based upon the information and
methodology described in Section 65584.04, why the proposed revision
is inconsistent with the regional housing need.
   (d) If the council of governments or delegate subregion, as
applicable, does not accept the proposed revised share or modify the
revised share to the satisfaction of the requesting party, the local
government may appeal its draft allocation based upon either or both
of the following criteria:
   (1) The council of governments or delegate subregion, as
applicable, failed to adequately consider the information submitted
pursuant to subdivision (b) of Section 65584.04, or a significant and
unforeseen change in circumstances has occurred in the local
jurisdiction that merits a revision of the information submitted
pursuant to that subdivision.
   (2) The council of governments or delegate subregion, as
applicable, failed to determine its share of the regional housing
need in accordance with the information described in, and the
methodology established pursuant to Section 65584.04.
   (e) The council of governments or delegate subregion, as
applicable, shall conduct public hearings to hear all appeals within
60 days after the date established to file appeals. The local
government shall be notified within 10 days by certified mail, return
receipt requested, of at least one public hearing on its appeal. The
date of the hearing shall be at least 30 days and not more than 35
days after the date of the notification. Before taking action on an
appeal, the council of governments or delegate subregion, as
applicable, shall consider all comments, recommendations, and
available data based on accepted planning methodologies submitted by
the appellant. The final action of the council of governments or
delegate subregion, as applicable, on an appeal shall be in writing
and shall include information and other evidence explaining how its
action is consistent with this article. The final action on an appeal
may require the council of governments or delegate subregion, as
applicable, to adjust the allocation of a local government that is
not the subject of an appeal.
   (f) The council of governments or delegate subregion, as
applicable, shall issue a proposed final allocation within 45 days
after the completion of the 60-day period for hearing appeals. The
proposed final allocation plan shall include responses to all
comments received on the proposed draft allocation and reasons for
any significant revisions included in the final allocation.
   (g) In the proposed final allocation plan, the council of
governments or delegate subregion, as applicable, shall adjust
allocations to local governments based upon the results of the
revision request process and the appeals process specified in this
section. If the adjustments total 7 percent or less of the regional
housing need determined pursuant to Section 65584.01, or, as
applicable, total 7 percent or less of the subregion's share of the
regional housing need as determined pursuant to Section 65584.03,
then the council of governments or delegate subregion, as applicable,
shall distribute the adjustments proportionally to all local
governments. If the adjustments total more than 7 percent of the
regional housing need, then the council of governments or delegate
subregion, as applicable, shall develop a methodology to distribute
the amount greater than the 7 percent to local governments. In no
event shall the total distribution of housing need equal less than
the regional housing need, as determined pursuant to Section
65584.01, nor shall the subregional distribution of housing need
equal less than its share of the regional housing need as determined
pursuant to Section 65584.03. Two or more local governments may agree
to an alternate distribution of appealed housing allocations between
the affected local governments. If two or more local governments
agree to an alternative distribution of appealed housing allocations
that maintains the total housing need originally assigned to these
communities, then the council of governments shall include the
alternative distribution in the final allocation plan.
   (h) Within 45 days after the issuance of the proposed final
allocation plan by the council of governments and each delegate
subregion, as applicable, the council of governments shall hold a
public hearing to adopt a final allocation plan. To the extent that
the final allocation plan fully allocates the regional share of
statewide housing need, as determined pursuant to Section 65584.01,
the council of governments shall have final authority to determine
the distribution of the region's existing and projected housing need
as determined pursuant to Section 65584.01. The council of
governments shall submit its final allocation plan to the department
within three days of adoption. Within 60 days after the department's
receipt of the final allocation plan adopted by the council of
governments, the department shall determine whether or not the final
allocation plan is consistent with the existing and projected housing
need for the region, as determined pursuant to Section 65584.01. The
department may revise the determination of the council of
governments if necessary to obtain this consistency.
   (i) Any authority of the council of governments to review and
revise the share of a city or county of the regional housing need
under this section shall not constitute authority to revise, approve,
or disapprove the manner in which the share of the city or county of
the regional housing need is implemented through its housing
program. 
  SEC. 7.  Section 65584.06 of the Government Code is repealed.

   65584.06.  (a) For cities and counties without a council of
governments, the department shall determine and distribute the
existing and projected housing need, in accordance with Section 65584
and this section. If the department determines that a county or
counties, supported by a resolution adopted by the board or boards of
supervisors, and a majority of cities within the county or counties
representing a majority of the population of the county or counties,
possess the capability and resources and has agreed to accept the
responsibility, with respect to its jurisdiction, for the
distribution of the regional housing need, the department shall
delegate this responsibility to the cities and county or counties.
   (b) The distribution of regional housing need shall, based upon
available data and in consultation with the cities and counties, take
into consideration market demand for housing, the distribution of
household growth within the county assumed in the regional
transportation plan where applicable, employment opportunities and
commuting patterns, the availability of suitable sites and public
facilities, agreements between a county and cities in a county to
direct growth toward incorporated areas of the county, or other
considerations as may be requested by the affected cities or counties
and agreed to by the department. As part of the allocation of the
regional housing need, the department shall provide each city and
county with data describing the assumptions and methodology used in
calculating its share of the regional housing need. Consideration of
suitable housing sites or land suitable for urban development is not
limited to existing zoning ordinances and land use restrictions of a
locality, but shall include consideration of the potential for
increased residential development under alternative zoning ordinances
and land use restrictions. The determination of available land
suitable for urban development may exclude lands where the Federal
Emergency Management Agency (FEMA) or the Department of Water
Resources has determined that the flood management infrastructure
designed to protect that land is not adequate to avoid the risk of
flooding.
   (c) Within 90 days following the department's determination of a
draft distribution of the regional housing need to the cities and the
county, a city or county may propose to revise the determination of
its share of the regional housing need in accordance with criteria
set forth in the draft distribution. The proposed revised share shall
be based upon comparable data available for all affected
jurisdictions, and accepted planning methodology, and shall be
supported by adequate documentation.
   (d) (1) Within 60 days after the end of the 90-day time period for
the revision by the cities or county, the department shall accept
the proposed revision, modify its earlier determination, or indicate
why the proposed revision is inconsistent with the regional housing
need.
   (2) If the department does not accept the proposed revision, then,
within 30 days, the city or county may request a public hearing to
review the determination.
   (3) The city or county shall be notified within 30 days by
certified mail, return receipt requested, of at least one public
hearing regarding the determination.
   (4) The date of the hearing shall be at least 10 but not more than
15 days from the date of the notification.
   (5) Before making its final determination, the department shall
consider all comments received and shall include a written response
to each request for revision received from a city or county.
   (e) If the department accepts the proposed revision or modifies
its earlier determination, the city or county shall use that share.
If the department grants a revised allocation pursuant to subdivision
(d), the department shall ensure that the total regional housing
need is maintained. The department's final determination shall be in
writing and shall include information explaining how its action is
consistent with this section. If the department indicates that the
proposed revision is inconsistent with the regional housing need, the
city or county shall use the share that was originally determined by
the department. The department, within its final determination, may
adjust the allocation of a city or county that was not the subject of
a request for revision of the draft distribution.
   (f) The department shall issue a final regional housing need
allocation for all cities and counties within 45 days of the
completion of the local review period. 
  SEC. 8.  Section 65584.07 of the Government Code is repealed.

   65584.07.  (a) During the period between adoption of a final
regional housing needs allocation and the due date of the housing
element update under Section 65588, the council of governments, or
the department, whichever assigned the county's share, shall reduce
the share of regional housing needs of a county if all of the
following conditions are met:
   (1) One or more cities within the county agree to increase its
share or their shares in an amount equivalent to the reduction.
   (2) The transfer of shares shall only occur between a county and
cities within that county.
   (3) The county's share of low-income and very low income housing
shall be reduced only in proportion to the amount by which the county'
s share of moderate- and above moderate-income housing is reduced.
   (4) The council of governments or the department, whichever
assigned the county's share, shall approve the proposed reduction, if
it determines that the conditions set forth in paragraphs (1), (2),
and (3) above have been satisfied. The county and city or cities
proposing the transfer shall submit an analysis of the factors and
circumstances, with all supporting data, justifying the revision to
the council of governments or the department. The council of
governments shall submit a copy of its decision regarding the
proposed reduction to the department.
   (b) (1) The county and cities that have executed transfers of
regional housing needs pursuant to subdivision (a) shall use the
revised regional housing need allocation in their housing elements
and shall adopt their housing elements by the deadlines set forth in
Section 65588.
   (2) A city that has received a transfer of a regional housing need
pursuant to subdivision (c) shall adopt or amend its housing element
within 30 months of the effective date of incorporation.
   (3) A county or city that has received a transfer of regional
housing need pursuant to subdivision (d) shall amend its housing
element within 180 days of the effective date of the transfer.
   (4) A county or city is responsible for identifying sites to
accommodate its revised regional housing need by the deadlines set
forth in paragraphs (1), (2), and (3).
   (5) All materials and data used to justify any revision shall be
made available upon request to any interested party within seven days
upon payment of reasonable costs of reproduction unless the costs
are waived due to economic hardship. A fee may be charged to
interested parties for any additional costs caused by the amendments
made to former subdivision (c) of Section 65584 that reduced from 45
to 7 days the time within which materials and data were required to
be made available to interested parties.
   (c) (1) If an incorporation of a new city occurs after the council
of governments, subregional entity, or the department for areas with
no council of governments, has made its final allocation under
Section 65584.03, 65584.04, 65584.06, or 65584.08, a portion of the
county's allocation shall be transferred to the new city. The city
and county may reach a mutually acceptable agreement for transfer of
a portion of the county's allocation to the city, which shall be
accepted by the council of governments, subregional entity, or the
department, whichever allocated the county's share. If the affected
parties cannot reach a mutually acceptable agreement, then either
party may submit a written request to the council of governments,
subregional entity, or to the department for areas with no council of
governments, to consider the facts, data, and methodology presented
by both parties and determine the number of units, by income
category, that should be transferred from the county's allocation to
the new city.
   (2) Within 90 days after the date of incorporation, either the
transfer, by income category, agreed upon by the city and county, or
a written request for a transfer, shall be submitted to the council
of governments, subregional entity, or to the department, whichever
allocated the county's share. A mutually acceptable transfer
agreement shall be effective immediately upon receipt by the council
of governments, the subregional entity, or the department. A copy of
a written transfer request submitted to the council of governments
shall be submitted to the department. The council of governments,
subregional entity, or the department, whichever allocated the county'
s share, shall make the transfer effective within 180 days after
receipt of the written request. If the council of governments
allocated the county's share, the transfer shall be based on the
methodology adopted pursuant to Section 65584.04 or 65584.08. If the
subregional entity allocated the subregion's share, the transfer
shall be based on the methodology adopted pursuant to Section
65584.03. If the department allocated the county's share, the
transfer shall be based on the considerations specified in Section
65584.06. The transfer shall neither reduce the total regional
housing needs nor change the regional housing needs allocated to
other cities by the council of governments, subregional entity, or
the department. A copy of the transfer finalized by the council of
governments or subregional entity shall be submitted to the
department. The council of governments, the subregional entity, or
the department, as appropriate, may extend the 90-day deadline if it
determines an extension is consistent with the objectives of this
article.
   (d) (1) If an annexation of unincorporated land to a city occurs
after the council of governments, subregional entity, or the
department for areas with no council of governments, has made its
final allocation under Section 65584.03, 65584.04, 65584.06, or
65584.08, a portion of the county's allocation may be transferred to
the city. The city and county may reach a mutually acceptable
agreement for transfer of a portion of the county's allocation to the
city, which shall be accepted by the council of governments,
subregional entity, or the department, whichever allocated the county'
s share. If the affected parties cannot reach a mutually acceptable
agreement, then either party may submit a written request to the
council of governments, subregional entity, or to the department for
areas with no council of governments, to consider the facts, data,
and methodology presented by both parties and determine the number of
units, by income category, that should be transferred from the
county's allocation to the city.
   (2) (A) Except as provided under subparagraph (B), within 90 days
after the date of annexation, either the transfer, by income
category, agreed upon by the city and county, or a written request
for a transfer, shall be submitted to the council of governments,
subregional entity, and to the department. A mutually acceptable
transfer agreement shall be effective immediately upon receipt by the
council of governments, the subregional entity, or the department.
The council of governments, subregional entity, or the department for
areas with no council of governments, shall make the transfer
effective within 180 days after receipt of the written request. If
the council of governments allocated the county's share, the transfer
shall be based on the methodology adopted pursuant to Section
65584.04 or 65584.08. If the subregional entity allocated the
subregion's share, the transfer shall be based on the methodology
adopted pursuant to Section 65584.03. If the department allocated the
county's share, the transfer shall be based on the considerations
specified in Section 65584.06. The transfer shall neither reduce the
total regional housing needs nor change the regional housing needs
allocated to other cities by the council of governments, subregional
entity, or the department for areas with no council of governments. A
copy of the transfer finalized by the council of governments or
subregional entity shall be submitted to the department. The council
of governments, the subregional entity, or the department, as
appropriate, may extend the 90-day deadline if it determines an
extension is consistent with the objectives of this article.
   (B) If the annexed land is subject to a development agreement
authorized under subdivision (b) of Section 65865 that was entered
into by a city and a landowner prior to January 1, 2008, the revised
determination shall be based upon the number of units allowed by the
development agreement.
   (3) A transfer shall not be made when the council of governments
or the department, as applicable, confirms that the annexed land was
fully incorporated into the methodology used to allocate the city's
share of the regional housing needs. 
  SEC. 9.  Section 65584.08 of the Government Code is repealed.

   65584.08.  (a) For the purposes of this section the "association"
is the Southern California Association of Governments.
   (b) For the fourth revision of the housing element pursuant to
Section 65588 within the region of the association, the existing and
projected need for housing for the region as a whole and each
jurisdiction within the region shall be determined according to the
provisions of this article except as those provisions are
specifically modified by this section.
   (c) The existing and projected housing need for the region shall
be determined in the following manner:
   (1) The association shall develop an integrated long-term growth
forecast by five-year increments. The growth forecast is not a
regional housing needs allocation plan.
   (2) The forecast shall consist of the following three major
variables by geographic area throughout the region:
   (A) Population.
   (B) Employment.
   (C) Households.
   (3) The association shall convert households into housing units
using replacement rates from the Department of Finance, and county
level vacancy rates, by weighing vacancy rates of for-sale and
for-rent units.
   (4) The association shall transmit the forecast to the department
with the following variables:
   (A) Population.
   (B) Employment.
   (C) Households.
   (D) Housing units.
   (E) Household formation ratios.

             (F) Replacement rates.
   (G) Owner and renter vacancy rates.
   (5) Upon receiving the forecast, the department shall determine
the existing and projected housing need for the region in accordance
with paragraph (2) of subdivision (c) of, and with subdivision (d)
of, Section 65584.01.
   (d) The association shall conduct a public workshop for the
purpose of surveying its member jurisdictions pursuant to subdivision
(b) of Section 65584.04. Not less than 30 days prior to the date of
commencement of the public workshop, the association shall notify
affected jurisdictions about the manner in which it proposes to
consider the factors specified in subdivision (d) of Section 65584.04
in the housing allocation process. Local governments may submit
information about the factors before the workshop for consideration
by the association and incorporation into the discussion of the
methodology at the workshop.
   (e) The association shall delegate development of the housing need
allocation plan to the subregional entities, if the association and
the subregional entities agree in writing to that delegation and the
association ensures that the total regional housing need, by income
category, is maintained.
   (f) The association shall conduct a minimum of 14 public workshops
to discuss the regional growth forecast and the methodology,
including the factors, by which housing needs are proposed to be
allocated to subregions, or, in the absence of a subregion, to
individual jurisdictions. The workshops shall also present
opportunities for jurisdictions and members of the public or relevant
stakeholders to provide information to the association on local
conditions and factors. Following the workshops, and concurrent with
the adoption of its draft housing allocation plan, the association
shall describe the following:
   (1) The manner in which the plan is consistent with the housing,
employment, transportation, and environmental needs of the region.
   (2) The manner in which the methodology that produced the plan
complies with subdivision (e) of Section 65584.04.
   (3) The manner in which the information received in the public
workshops was considered in the methodology used to allocate the
regional housing need.
   (g) Following the adoption of the draft housing allocation plan, a
local government may request from the association or the delegate
subregion, as applicable, a revision of its share of the regional
housing need in accordance with the factors described in subdivision
(d) of Section 65584.04, including any information submitted by the
local government pursuant to subdivision (d). The request for a
revised share shall be based upon comparable data available for all
affected jurisdictions and accepted planning methodology, and shall
be supported by adequate documentation. The association or delegate
subregion, as applicable, shall establish a timeline for accepting
and reviewing revision requests. However, revision requests shall not
be accepted after the deadline for filing an appeal pursuant to
subdivision (i). The association or delegate subregion shall respond
to the request in writing no later than the close of the appeal
process, and shall describe the rationale for its decision.
   (h) Both the methodology and allocation process shall consider the
factors listed under subdivision (d) of Section 65584.04 and promote
the goals and objectives of subdivision (d) of Section 65584 and the
regional transportation plan growth forecasting process to integrate
housing planning with projected population growth and
transportation. The association shall complete the final housing need
allocation plan on or before June 30, 2007. It is the intent of the
Legislature that the housing element update deadlines, as required
under Section 65588, and as modified by the department under
paragraph (2) of subdivision (a) of Section 65584.02, will not be
extended. The association shall submit a report to the Legislature on
or before March 30, 2007, describing the progress it has made in
completing the final need allocation plan.
   (i) A city or county may file one appeal of its draft allocation
to the association, or a delegate subregion, pursuant to subdivision
(e) of Section 65584.05, based upon any of the following criteria:
   (1) The association or delegate subregion, as applicable, failed
to adequately consider the information submitted pursuant to
subdivision (d), or a significant and unforeseen change in
circumstances has occurred in the local jurisdiction that merits a
revision of the information submitted pursuant to that subdivision.
   (2) The association or delegate subregion, as applicable, failed
to determine the local government's share of the regional housing
need in accordance with the information described in, and the
methodology established pursuant to subdivision (f).
   (j) A city or county shall not be allowed to file more than one
appeal under subdivision (i), and no appeals may be filed relating to
any adjustments made pursuant to subdivision (g) of Section
65584.05.
   (k) The final allocation plan shall be subject to the provisions
of subdivision (h) of Section 65584.05.
   (l) The final allocation plan adopted by the association shall
ensure that the total regional housing need, by income category, as
determined under subdivision (c), is maintained. The resolution
adopted by the association approving the final housing need
allocation plan shall show how the plan:
   (1) Is consistent with the objectives of this section and article.

   (2) Is consistent with the pending update of the regional
transportation plan.
   (3) Takes into account the information provided to the association
by its member jurisdictions and members of the public pursuant to
subdivisions (d) and (f).(m) This section shall remain in effect only
until January 1, 2015, and as of that date is repealed, unless a
later enacted statute, that is enacted before January 1, 2015,
deletes or extends that date. 
  SEC. 10.  Section 65584.09 of the Government Code is repealed.

   65584.09.  (a) For housing elements due pursuant to Section 65588
on or after January 1, 2006, if a city or county in the prior
planning period failed to identify or make available adequate sites
to accommodate that portion of the regional housing need allocated
pursuant to Section 65584, then the city or county shall, within the
first year of the planning period of the new housing element, zone or
rezone adequate sites to accommodate the unaccommodated portion of
the regional housing need allocation from the prior planning period.
   (b) The requirements under subdivision (a) shall be in addition to
any zoning or rezoning required to accommodate the jurisdiction's
share of the regional housing need pursuant to Section 65584 for the
new planning period.
   (c) Nothing in this section shall be construed to diminish the
requirement of a city or county to accommodate its share of the
regional housing need for each income level during the planning
period set forth in Section 65588, including the obligations to (1)
implement programs included pursuant to Section 65583 to achieve the
goals and objectives, including programs to zone or rezone land, and
(2) timely adopt a housing element with an inventory described in
paragraph (3) of subdivision (a) of Section 65583 and a program to
make sites available pursuant to paragraph (1) of subdivision (c) of
Section 65583, which can accommodate the jurisdiction's share of the
regional housing need. 
  SEC. 11.  Section 65584.1 of the Government Code is repealed.

   65584.1.  Councils of government may charge a fee to local
governments to cover the projected reasonable, actual costs of the
council in distributing regional housing needs pursuant to this
article. Any fee shall not exceed the estimated amount required to
implement its obligations pursuant to Sections 65584, 65584.01,
65584.02, 65584.03, 65584.04, 65584.05, and 65584.07. A city, county,
or city and county may charge a fee, not to exceed the amount
charged in the aggregate to the city, county, or city and county by
the council of governments, to reimburse it for the cost of the fee
charged by the council of government to cover the council's actual
costs in distributing regional housing needs. The legislative body of
the city, county, or city and county shall impose the fee pursuant
to Section 66016, except that if the fee creates revenue in excess of
actual costs, those revenues shall be refunded to the payers of the
fee. 
  SEC. 12.  Section 65584.2 of the Government Code is repealed.

   65584.2.  A local government may, but is not required to, conduct
a review or appeal regarding allocation data provided by the
department or the council of governments pertaining the locality's
share of the regional housing need or the submittal of data or
information for a proposed allocation, as permitted by this article.

  SEC. 13.  Section 65584.6 of the Government Code is repealed.

   65584.6.  (a) The County of Napa may, during its current housing
element planning period, identified in Section 65588, meet up to 15
percent of its existing share of the regional housing need for lower
income households, as defined in Section 65584, by committing funds
for the purpose of constructing affordable housing units, and
constructing those units in one or more cities within the county,
only after all of the following conditions are met:
   (1) An agreement has been executed between the county and the
receiving city or cities, following a public hearing held by the
county and the receiving city or cities to solicit public comments on
the draft agreement. The agreement shall contain information
sufficient to demonstrate that the county and city or cities have
complied with the requirements of this section and shall also include
the following:
   (A) A plan and schedule for timely construction of dwelling units.

   (B) Site identification by street address for the units to be
developed.
   (C) A statement either that the sites upon which the units will be
developed were identified in the receiving city's housing element as
potential sites for the development of housing for lower-income
households, or that the units will be developed on previously
unidentified sites.
   (D) The number and percentage of the county's lower-income housing
needs previously transferred, for the appropriate planning period,
pursuant to this section.
   (2) The council of governments that assigned the county's share
receives and approves each proposed agreement to meet a portion of
the county's fair share housing allocation within one or more of the
cities within the county after taking into consideration the criteria
of subdivision (a) of Section 65584. If the council of governments
fails to take action to approve or disapprove an agreement between
the county and the receiving city or cities within 45 days following
the receipt of the agreement, the agreement shall be deemed approved.

   (3) The city or cities in which the units are developed agree not
to count the units towards their share of the region's affordable
housing need.
   (4) The county and the receiving city or cities, based on
substantial evidence on the record, make the following findings:
   (A) Adequate sites with appropriate zoning exist in the receiving
city or cities to accommodate the units to be developed pursuant to
this section. The agreement shall demonstrate that the city or cities
have identified sufficient vacant or underutilized or vacant and
underutilized sites in their housing elements to meet their existing
share of regional housing need, as allocated by the council of
governments pursuant to subdivision (a) of Section 65584, in addition
to the sites needed to construct the units pursuant to this section.

   (B) If needed, additional subsidy or financing for the
construction of the units is available.
   (C) The receiving city or cities have housing elements that have
been found by the Department of Housing and Community Development to
be in compliance with this article.
   (5) If the sites upon which units are to be developed pursuant to
this section were previously identified in the receiving city's
housing element as potential sites for the development of housing
sufficient to accommodate the receiving city's share of the lower
income household need identified in its housing element, then the
receiving city shall have amended its housing element to identify
replacement sites by street address for housing for lower-income
households. Additionally, the Department of Housing and Community
Development shall have received and reviewed the amendment and found
that the city's housing element continues to comply with this
article.
   (6) The county and receiving city or cities shall have completed,
and provided to the department, the annual report required by
subdivision (b) of Section 65400.
   (7) For a period of five years after a transfer occurs, the report
required by subdivision (b) of Section 65400 shall include
information on the status of transferred units, implementation of the
terms and conditions of the transfer agreement, and information on
any dwelling units actually constructed, including the number, type,
location, and affordability requirements.
   (8) The receiving city demonstrates that it has met, in the
current or previous housing element cycle, at least 20 percent of its
share of the regional need for housing for very low-income
households allocated to the city pursuant to Section 65584.
   (b) The credit that the county receives pursuant to this section
shall not exceed 40 percent of the number of units that are
affordable to lower income households and constructed and occupied
during the same housing element cycle in unincorporated areas of the
county. The county shall only receive the credit after the units have
been constructed and occupied. Within 60 days of issuance of a
certificate of occupancy for the units, the county shall inform the
council of governments and the department in writing that a
certificate of occupancy has been issued.
   (c) Concurrent with the review by the council of governments
prescribed by this section, the Department of Housing and Community
Development shall evaluate the agreement to determine whether the
city or cities are in substantial compliance with this section. The
department shall report the results of its evaluation to the county
and city or cities for inclusion in their record of compliance with
this section.
   (d) If at the end of the five-year period identified in
subdivision (c) of Section 65583, any percentage of the regional
share allocation has not been constructed as provided pursuant to
subdivision (a), or, after consultation with the department, the
council of governments determines that the requirements of paragraphs
(5) and (7) of subdivision (a) have not been substantially complied
with, the council of governments shall add the unbuilt units to Napa
County's regional share allocation for the planning period of the
next periodic update of the housing element.
   (e) Napa County shall not meet a percentage of its share of the
regional share pursuant to subdivision (a) on or after June 30, 2007,
unless a later enacted statute, that is enacted before June 30,
2007, deletes or extends that date. 
  SEC. 14.  Section 65584.7 of the Government Code is repealed.

   65584.7.  (a) The Legislature finds and declares all of the
following:
   (1) Accurate and current data to estimate housing needs is
necessary to ensure that state, regional, and local agencies plan
effectively.
   (2) The Department of Finance, which is charged with providing
demographic data to aid effective state and local planning and
policymaking, released updated population projections for the state
on July 9, 2007.
   (3) The updated projections released by the Department of Finance
represent a decline of over 30 percent from the prior projection in
the near-term population growth for the area within the regional
jurisdiction of the Sacramento Area Council of Governments.
   (4) Authorizing the department to adjust its regional housing
needs determination for the Sacramento Area Council of Governments
region is allowed only because a substantially different projection
was released by the Department of Finance prior to the adoption of
the Sacramento Area Council of Governments' final regional housing
need allocation plan, and will not alter the schedule for its
adoption.
   (b) (1) Consistent with the revised population projections
released by the Department of Finance on July 9, 2007, the
department, for the fourth revision of the housing element pursuant
to Section 65588, and prior to the adoption of the final regional
housing need allocation plan by the Sacramento Area Council of
Governments, may revise its regional housing need determination for
the Sacramento Area Council of Governments. The revised determination
by the department shall be consistent with the current population
projections of the Department of Finance and with the methodology
used for the initial determination for the region.
   (2) The revision of the regional housing need determination shall
not extend the time for, or reinstate any right to, an appeal,
request for revision, or public comment or consultation period
established pursuant to this article with respect to the
determination of the regional housing need and the allocation to
local government members of the Sacramento Area Council of
Governments.
   (3) This section does not change or modify the deadline
established in Section 65588 by which local governments within
Sacramento Area Council of Governments are required to adopt revised
housing elements.
   (c) This section is not intended to change or modify the deadlines
in Sections 65584.01 to 65584.08, inclusive.(d) This section shall
remain in effect only until January 1, 2014, and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2014, deletes or extends that date.