BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1198
                                                                  Page  1

          Date of Hearing:   January 11, 2012

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Norma Torres, Chair
                 AB 1198 (Norby) - As Introduced:  February 18, 2011
           
          SUBJECT  :   Land use: housing element: regional housing needs 
          assessment.

           SUMMARY  :   Eliminates the regional housing needs assessment 
          process.

           EXISTING LAW  

          1)Requires every city and county to prepare and adopt a general 
            plan containing seven mandatory elements, including a housing 
            element (Government Code Sections 65300 and 65302).

          2)Requires a jurisdiction's housing element to identify and 
            analyze existing and projected housing needs, identify 
            adequate sites with appropriate zoning to meet the housing 
            needs of all income segments of the community, and ensure that 
            regulatory systems provide opportunities for, and do not 
            unduly constrain, housing development (Government Code Section 
            65583).

          3)Requires all cities and counties to periodically revise their 
            housing elements.  For most jurisdictions, the housing element 
            must be revised every eight years based on a staggered 
            statutory schedule (Government Code Section 65588).

          4)Requires the housing element to plan for the following income 
            categories:

             a)   Very low-income (50% or less of area median income);

             b)   Lower-income (80% or less of area median income);

             c)   Moderate-income (between 80% and 120% of area median 
               income); and

             d)   Above moderate-income (exceeding 120% of area median 
               income).

          5)Requires each council of governments (COG), in conjunction 








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            with the Department of Housing and Community Development 
            (HCD), to prepare a regional housing needs assessment (RHNA) 
            and allocate to each jurisdiction in the region its fair share 
            of the housing need for all income categories prior to the 
            housing element planning period.  Where a COG does not exist, 
            HCD determines the local share of the region's housing need 
            (Government Code Sections 65584-65584.09).

          6)Requires every jurisdiction to receive an allocation of units 
            at the lower- and very low-income categories (Health and 
            Safety Code Section 65584).

          7)Requires the regional housing needs allocation plan to be 
            consistent with all of the following objectives:

             a)   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;

             b)   Promoting infill development and socioeconomic equity, 
               the protection of environmental and agricultural resources, 
               and the encouragement of efficient development patterns; 
               and

             c)   Promoting an improved intraregional relationship between 
               jobs and housing.

          8)Requires the COG to consider the following factors in 
            determining what share of the regional housing need to 
            allocate to each jurisdiction:

             a)   Each member jurisdiction's existing and projected jobs 
               and housing relationship;

             b)   The opportunities and constraints to development of 
               additional housing in each member jurisdiction;

             c)   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;

             d)   The market demand for housing;








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             e)   Agreements between a county and cities in a county to 
               direct growth toward incorporated areas of the county;

             f)   The loss of units contained in assisted housing 
               developments that changed to non-low-income use through 
               mortgage prepayment, subsidy contract expirations, or 
               termination of use restrictions;

             g)   High housing costs burdens;

             h)   The housing needs of farmworkers; 

             i)   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; and

             j)   Any other factors adopted by the COG.  (Health and 
               Safety Code Section 65584.04)

          9)Requires the COG to consider the following in analyzing each 
            jurisdictions opportunities and constraints to the development 
            of additional housing:

             a)   Lack of capacity for sewer or water service due to a 
               variety of factors 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.

             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; and

             d)   County policies to preserve prime agricultural land 
               within an unincorporated area. (Government Code Section 
               65584.04)

          10)Includes a process by which a jurisdiction can request that 








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            the COG revise its allocation and also allows for an appeal to 
            the COG in the event the jurisdiction is not satisfied with 
            the outcome of its revision request (Government Code Section 
            65584.05).

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

          The Planning and Zoning Law requires cities and counties to 
          prepare and adopt a general plan, including a housing element, 
          to guide the future growth of a community.  Cities and counties 
          located within the territory of a metropolitan planning 
          organization (MPO) must revise their housing elements every 
          eight years following the adoption of every other regional 
          transportation plan. Cities and counties in rural non-MPO 
          regions must revise their housing elements every five years.  

          Before each housing element revision, every city and county is 
          assigned its fair share of housing for each income category 
          through the regional housing needs assessment (RHNA) process.  
          The RHNA process begins with HCD, in conjunction with COGs and 
          using data from the Department of Finance's Demographic Research 
          Unit, determining the number of new housing units a region is 
          projected to need at all income levels over the course of the 
          next housing element planning period to accommodate population 
          growth and overcome existing deficiencies in the housing supply. 
           The COG for the region, or HCD for areas with no COG, then 
          assigns a share of the RHNA to every city and county in the 
          region based on a variety of factors.  

          In preparing its housing element, a city or county must show how 
          it plans to accommodate its share of the RHNA.  A housing 
          element must identify and analyze existing and projected housing 
          needs, identify adequate sites with appropriate zoning to meet 
          the jurisdiction's share of the RHNA, and ensure that regulatory 
          systems provide opportunities for, and do not unduly constrain, 
          housing development. HCD reviews both draft and adopted housing 
          elements to determine whether or not they are in substantial 
          compliance with the law.  

          AB 1198 eliminates the RHNA process but leaves intact the rest 
          of housing element law, including the requirement for every 
          local government to prepare a housing element that shows how it 
          plans to accommodate its share of the RHNA and the requirement 








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          that HCD review housing elements for compliance with the law.

          According to the author, the purpose of AB 1198 is to free local 
          governments from a state-imposed unfunded mandate to eliminate 
          redundancies. However, it is not clear what savings local 
          governments would realize because the bulk of the 
          responsibilities, and thus the costs, of the RHNA process are 
          born by COGs and HCD. In addition, it is not clear to what the 
          RHNA process is redundant. Staff is not aware of any other 
          processes that examine housing needs on a regional level.  
          Finally, AB 1198 may create legal problems for local governments 
          because they would still be required to prepare a housing 
          element that shows how they plan to accommodate their share of 
          the RHNA even though there would no longer be a process to 
          determine the RHNA. 

           Double referred  : The Assembly Committee on Rules referred AB 
          1198 to the Committee on Housing and Community Development and 
          Local Government.  If AB 1198 passes this committee, the bill 
          must be referred to the Committee on Local Government.


           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Anya Lawler / H. & C.D. / (916) 
          319-2085