BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1198
                                                                  Page  1

          Date of Hearing:  January 11, 2012

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                 AB 1198 (Norby) - As Introduced:  February 18, 2011
           
          SUBJECT  :  Land use: housing element: regional housing need 
          assessment.

           SUMMARY  :  Repeals requirements related to the Department of 
          Housing and Community Development's (HCD) determination of each 
          region's existing and projected housing need and the 
          distribution of that need to cities and counties through the 
          Regional Housing Needs Assessment (RHNA) process, and repeals 
          other related RHNA requirements.

           EXISTING LAW  :

          1)Requires every city and county to prepare a general plan 
            containing seven elements, including a housing element.

          2)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.

          3)Requires, prior to each housing element revision, each council 
            of government (COG), in conjunction with HCD,  to prepare RHNA 
            and allocate to each jurisdiction in the region its fair share 
            of the housing need for each of the defined income categories.

          4)Requires each housing element's identification of adequate 
            sites to accommodate the community's share of the regional 
            housing need.

          5)Allows cities and counties to submit requests for revisions to 
            their draft RHNA allocation and, if not satisfied with the 
            response, to file a formal appeal.

          6)Requires HCD to determine whether the final allocation plan is 
            consistent with the previously determined regional housing 
            need and gives HCD the authority to make revisions if 
            necessary to obtain this consistency.
           








                                                                 AB 1198
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          FISCAL EFFECT  :  Unknown

           COMMENTS  :

          1)Housing element law requires local governments to adequately 
            plan to meet their share of the regional housing need. The 
            housing element update process addresses the statewide concern 
            of providing "decent housing and a suitable living environment 
            for every California family," in part by facilitating 
            increases in housing supply to accommodate the needs of the 
            state's growing population. The law recognizes that the most 
            critical decisions regarding housing development occur at the 
            local level within the context of the general plan.  In order 
            for the 


          private sector to adequately address housing needs and meet 
            demand, local governments must regularly update their general 
            plans, zoning, and development standards to provide 
            opportunities for housing development for all income groups.

          2)The share of the regional housing need allocated to each city 
            and county is a short-term projection of additional housing 
            units needed to accommodate existing households and projected 
            household growth of all income levels by the end of the 
            housing element planning period.

          3)The RHNA process establishes minimum housing development 
            capacity that cities and counties are to make available via 
            their land use powers to accommodate growth within a 
            short-term planning period.  RHNA numbers are assigned by four 
            income categories as guideposts for each community to develop 
            a mix of housing types for all economic segments of the 
            population.  The process is also known as "fair share" 
            planning.

          4)This bill repeals the whole section of statutes related to the 
            determination of regional housing need by HCD and the 
            subsequent allocation of that need to cities and counties 
            within each region, but does not repeal overall requirements 
            for local jurisdictions to develop and update housing elements 
            as is statutorily prescribed.  According to the author, this 
            bill frees local governments of a state-imposed unfunded 
            mandate because the RHNA process is no longer eligible for 
            reimbursement by the state.  The author notes that housing 








                                                                  AB 1198
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            need can be adequately addressed through a city or county's 
            general plan and that the most critical decisions regarding 
            housing development occur at the local level, thus eliminating 
            the need for state certification of housing elements.

          5)Support argument:  At a time when many local governments are 
            struggling with funding with the economic downturn, this bill 
            will reduce state-imposed housing requirements for cities and 
            counties and will allow for greater local control over housing 
            policies.

          Opposition argument:  Adequate housing supply and affordability 
            of housing is a major statewide concern and one that the 
            Legislature has a long history of supporting.  Repealing the 
            RHNA process may be counter to these housing goals.

          6)This bill is double-referred to the Assembly Housing and 
            Community Development Committee and will be heard January 11, 
            2012. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file   

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Debbie Michel / L. GOV. / (916) 
          319-3958