BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2308
                                                                  Page  1

          Date of Hearing:  May 2, 2012

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                    AB 2308 (Torres) - As Amended:  March 29, 2012
           
          SUBJECT  :  Land use: housing element: regional housing need.

           SUMMARY  :  Allows a city or county to reduce its share of the 
          regional housing need by the number of units built between the 
          start of the projection period and the deadline for adoption of 
          the housing element, as specified.  Specifically,  this bill  :

          1)Allows a city or county to reduce its share of the regional 
            housing need by the number of units built between the start of 
            the projection period and the deadline for adoption of the 
            housing element.

          2)Provides, if the city or county reduces its share, that the 
            city or county must include in the housing element a 
            description of the methodology for assigning those housing 
            units to an income category based on actual or projected sales 
            price, rent levels, or other mechanisms establishing 
            affordability.

           EXISTING LAW  :

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

          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)Specifies that the Department of Housing and Community 
            Development (HCD) may allow a city or county to substitute the 
            provision of units for up to 25% of the community's obligation 
            to identify adequate sites for any income category in its 
            housing element, for units that meet specified substantial 
            rehabilitation, conversion or preservation requirements.

          4)Provides that those rehabilitated units shall have long-term 








                                                                  AB 2308
                                                                  Page  2

            affordability covenants and restrictions that require the unit 
            to be available to, and occupied by, a person of low- or very 
            low-income at affordable housing costs for at least 20 years.

          5)Defines "committed assistance" as legally enforceable 
            agreements entered into by the city or county that obligates 
            sufficient available funds to provide the assistance necessary 
            to make the identified units affordable and that requires that 
            the units be made available for occupancy within two years of 
            execution of the agreement.

           FISCAL EFFECT  :  None

           

          COMMENTS  :

          1)Every local government is required to prepare a housing 
            element as part of its general plan.  The housing element 
            process starts when HCD determines the number of new housing 
            units a region is projected to need at all income levels (very 
            low-, low-, moderate-, and above moderate) over the course of 
            the next housing element planning period to accommodate 
            population growth and overcome existing deficiencies in the 
            housing supply.  This number is often referred to as the 
            regional housing needs assessment (RHNA) number.  The council 
            of government (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.

          2)In preparing its housing element, a city or county must show 
            how it plans to accommodate its share of the RHNA.  The 
            housing element must include an inventory of sites already 
            zoned for housing.  If a jurisdiction does not have enough 
            sites within its existing inventory of residentially zoned 
            land to accommodate its entire RHNA, then it must adopt a 
            program to rezone additional land within the first three years 
            of the planning period.  This requirement ensures an adequate 
            supply of land for the construction of new housing.

          3)Existing law includes a limited exception to the zoning 
            requirement by allowing jurisdictions to accommodate up to 25% 
            of their RHNA share by making certain existing housing units 
            affordable to low- and very low-income households for 20 to 55 
            years depending on the type of unit.  Eligible units include 








                                                                  AB 2308
                                                                  Page  3

            units that are substantially rehabilitated, units in 
            multifamily complexes that are not currently affordable, and 
            units in an assisted housing development (such as public 
            housing) that are at risk of conversion to market rate or 
            another use.  To count units within this 25% cap, the 
            jurisdiction must provide "committed assistance," meaning that 
            the city or county must enter into a legally enforceable 
            agreement that obligates sufficient funds to make the 
            identified units affordable for the required time period.

          4)According to the author, this bill allows local governments to 
            subtract from their RHNA share the number of units constructed 
            between the start of the housing element projection period and 
            the housing element due date.  The author notes that while 
            this is the long-standing policy at HCD, it is not explicitly 
            stated in current law.

           5)Support arguments  :  The League of California Cities argues 
            that this bill will benefit local governments in knowing that 
            this long-standing policy isn't subjective and is something 
            that can be relied upon in future years.

             Opposition arguments  :  None.

          6)This bill is double-referred to the Committee on Housing and 
            Community Development.

           REGISTERED SUPPORT / OPPOSITION  :

           Support                         Opposition
           
          League of California Cities        None on file

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