Amended in Senate August 19, 2014

Amended in Senate August 12, 2014

Amended in Assembly April 21, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1537

Introduced by Assembly Member Levine

January 22, 2014

An act to amend, repeal, and add Section 65583.2 of the Government Code, relating to land use.

LEGISLATIVE COUNSEL’S DIGEST

AB 1537, as amended, Levine. General plan housing element: regional housing need.

The Planning and Zoning Law 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. That law requires the housing element to, among other things, include an inventory of land suitable for residential development and make adequate provision for the existing and projected needs of all economic segments of the community. That law prescribes the densities appropriate to accommodate housing for lower income households and varies those densities depending upon how an area is classified, whether as metropolitan, suburban, or in another category. A city, county, or city and county is required to submit a draft housing element or draft amendment to its housing element to the Department of Housing and Community Development for a determination of whether the draft substantially complies with state law governing housing elements.

This bill would require, until December 31, 2023, a county that is in the San Francisco-Oakland-Fremont California Metropolitan Statistical Area and that has a population of less than 400,000 to be considered suburban for purposes of determining the densities appropriate to accommodate housing for lower income households. begin insert The bill would require these counties to utilize the sums existing in their housing trust funds as of June 30, 2013, for affordable housing, as specified. end insert The bill would, for that same purpose, also require a city that has a population of less than 100,000 and is incorporated within that county to be considered suburban. The bill would require a county or city so classified to make 2 reports, as specified, to the Legislature and the Department of Housing and Community Development. begin delete This bill would require a county subject to the bill to utilize the sum existing in its local housing trust fund as of June 30, 2013, for the development and preservation of housing affordable to low- and very low income households. end delete The bill would apply housing density requirements in place on June 30, begin delete 2013, end delete begin insert 2014, end insert within 1⁄2 mile of a Sonoma-Marin Area Rail Transit station.

begin insert

This bill would incorporate additional changes to Section 65583.2 of the Government Code proposed by AB 1690 that would become operative if this bill and AB 1690 are both enacted and this bill is enacted last.

end insert

This bill would make legislative findings and declarations as to the necessity of a special statute for certain areas of the state.

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 65583.2 of the Government Code is
amended to read:

65583.2.  

(a) A city’s or county’s inventory of land suitable
for residential development pursuant to paragraph (3) of
subdivision (a) of Section 65583 shall be used to identify sites that
can be developed for housing within the planning period and that
are sufficient to provide for the jurisdiction’s share of the regional
housing need for all income levels pursuant to Section 65584. As
used in this section, “land suitable for residential development”
includes all of the following:

(1) Vacant sites zoned for residential use.

(2) Vacant sites zoned for nonresidential use that allows
residential development.

(3) Residentially zoned sites that are capable of being developed
at a higher density.

(4) Sites zoned for nonresidential use that can be redeveloped
for, and as necessary, rezoned for, residential use.

(b) The inventory of land shall include all of the following:

(1) A listing of properties by parcel number or other unique
reference.

(2) The size of each property listed pursuant to paragraph (1),
and the general plan designation and zoning of each property.

(3) For nonvacant sites, a description of the existing use of each
property.

(4) A general description of any environmental constraints to
the development of housing within the jurisdiction, the
documentation for which has been made available to the
jurisdiction. This information need not be identified on a
site-specific basis.

(5) A general description of existing or planned water, sewer,
and other dry utilities supply, including the availability and access
to distribution facilities. This information need not be identified
on a site-specific basis.

(6) Sites identified as available for housing for above
moderate-income households in areas not served by public sewer
systems. This information need not be identified on a site-specific
basis.

(7) A map that shows the location of the sites included in the
inventory, such as the land use map from the jurisdiction’s general
plan, for reference purposes only.

(c) Based on the information provided in subdivision (b), a city
or county shall determine whether each site in the inventory can
accommodate some portion of its share of the regional housing
need by income level during the planning period, as determined
pursuant to Section 65584. The analysis shall determine whether
the inventory can provide for a variety of types of housing,
including multifamily rental housing, factory-built housing,
mobilehomes, housing for agricultural employees, emergency
shelters, and transitional housing. The city or county shall
determine the number of housing units that can be accommodated
on each site as follows:

(1) If local law or regulations require the development of a site
at a minimum density, the department shall accept the planning
agency’s calculation of the total housing unit capacity on that site
based on the established minimum density. If the city or county
does not adopt a law or regulations requiring the development of
a site at a minimum density, then it shall demonstrate how the
number of units determined for that site pursuant to this subdivision
will be accommodated.

(2) The number of units calculated pursuant to paragraph (1)
shall be adjusted as necessary, based on the land use controls and
site improvements requirement identified in paragraph (5) of
subdivision (a) of Section 65583.

(3) For the number of units calculated to accommodate its share
of the regional housing need for lower income households pursuant
to paragraph (2), a city or county shall do either of the following:

(A) Provide an analysis demonstrating how the adopted densities
accommodate this need. The analysis shall include, but is not
limited to, factors such as market demand, financial feasibility, or
information based on development project experience within a
zone or zones that provide housing for lower income households.

(B) The following densities shall be deemed appropriate to
accommodate housing for lower income households:

(i) For an incorporated city within a nonmetropolitan county
and for a nonmetropolitan county that has a micropolitan area:
sites allowing at least 15 units per acre.

(ii) For an unincorporated area in a nonmetropolitan county not
included in clause (i): sites allowing at least 10 units per acre.

(iii) For a suburban jurisdiction: sites allowing at least 20 units
per acre.

(iv) For a jurisdiction in a metropolitan county: sites allowing
at least 30 units per acre.

(d) For purposes of this section, a metropolitan county,
nonmetropolitan county, and nonmetropolitan county with a
micropolitan area shall be as determined by the United States
Census Bureau. A nonmetropolitan county with a micropolitan
area includes the following counties: Del Norte, Humboldt, Lake,
Mendocino, Nevada, Tehama, and Tuolumne and other counties
as may be determined by the United States Census Bureau to be
nonmetropolitan counties with micropolitan areas in the future.

(e) (1) Except as provided in paragraph (2), a jurisdiction shall
be considered suburban if the jurisdiction does not meet the
requirements of clauses (i) and (ii) of subparagraph (B) of
paragraph (3) of subdivision (c) and is located in a Metropolitan
Statistical Area (MSA) of less than 2,000,000 in population, unless
that jurisdiction’s population is greater than 100,000, in which
case it shall be considered metropolitan. A county, not including
the City and County of San Francisco, shall be considered suburban
unless the county is in an MSA of 2,000,000 or greater in
population in which case the county shall be considered
metropolitan.

(2) (A)  begin insert (i) end insert begin insert   end insert Notwithstanding paragraph (2), if a county that is
in the San Francisco-Oakland-Fremont California MSA has a
population of less than 400,000, that county shall be considered
suburban. If this county includes an incorporated city that has a
population of less than 100,000, this city shall also be considered
suburban. This paragraph shall apply to a housing element revision
cycle, as described in subparagraph (A) of paragraph (3) of
subdivision (e) of Section 65588, that is in effect from July 1,
2014, to December 31, 2023, inclusive.

begin insert

(ii) A county subject to this subparagraph shall utilize the sum
existing in the county’s housing trust fund as of June 30, 2013, for
the development and preservation of housing affordable to low- and
very low income households.

end insert

(B) A jurisdiction that is classified as suburban pursuant to this
paragraph shall report to the Assembly Committee on Housing
and Community Development, the Senate Committee on
Transportation and Housing, and the Department of Housing and
Community Development regarding its progress in developing
low- and very low-income housing consistent with the requirements
of Section 65400. The report shall be provided twice, once, on or
before December 31, 2019, which report shall address the initial
four years of the housing element cycle, and a second time, on or
before December 31, 2023, which report shall address the
subsequent four years of the housing element cycle and the cycle
as a whole. The reports shall be provided consistent with the
requirements of Section 9795.

(f) A jurisdiction shall be considered metropolitan if the
jurisdiction does not meet the requirements for “suburban area”
above and is located in an MSA of 2,000,000 or greater in
population, unless that jurisdiction’s population is less than 25,000
in which case it shall be considered suburban.

(g) For sites described in paragraph (3) of subdivision (b), the
city or county shall specify the additional development potential
for each site within the planning period and shall provide an
explanation of the methodology used to determine the development
potential. The methodology shall consider factors including the
extent to which existing uses may constitute an impediment to
additional residential development, development trends, market
conditions, and regulatory or other incentives or standards to
encourage additional residential development on these sites.

(h) The program required by subparagraph (A) of paragraph (1)
of subdivision (c) of Section 65583 shall accommodate 100 percent
of the need for housing for very low and low-income households
allocated pursuant to Section 65584 for which site capacity has
not been identified in the inventory of sites pursuant to paragraph
(3) of subdivision (a) on sites that shall be zoned to permit
owner-occupied and rental multifamily residential use by right
during the planning period. These sites shall be zoned with
minimum density and development standards that permit at least
16 units per site at a density of at least 16 units per acre in
jurisdictions described in clause (i) of subparagraph (B) of
paragraph (3) of subdivision (c) and at least 20 units per acre in
jurisdictions described in clauses (iii) and (iv) of subparagraph (B)
of paragraph (3) of subdivision (c). At least 50 percent of the very
low and low-income housing need shall be accommodated on sites
designated for residential use and for which nonresidential uses
or mixed-uses are not permitted.

(i) For purposes of this section and Section 65583, the phrase
“use by right” shall mean that the local government’s review of
the owner-occupied or multifamily residential use may not require
a conditional use permit, planned unit development permit, or other
discretionary local government review or approval that would
constitute a “project” for purposes of Division 13 (commencing
with Section 21000) of the Public Resources Code. Any subdivision
of the sites shall be subject to all laws, including, but not limited
to, the local government ordinance implementing the Subdivision
Map Act. A local ordinance may provide that “use by right” does
not exempt the use from design review. However, that design
review shall not constitute a “project” for purposes of Division 13
(commencing with Section 21000) of the Public Resources Code.
Use by right for all rental multifamily residential housing shall be
provided in accordance with subdivision (f) of Section 65589.5.

(j) Notwithstanding any other provision of this section, within
one-half mile of a Sonoma-Marin Area Rail Transit station, housing
density requirements in place on June 30, begin delete 2013, end delete begin insert 2014, end insert shall apply.

begin delete

(k) A county subject to this section shall utilize the sum existing
in the county’s housing trust fund as of June 30, 2013, for the
development and preservation of housing affordable to low- and
very low income households.

end delete begin delete

(l)

end delete

begin insert (k) end insert  This section shall remain in effect only until December 31,
2023, and as of that date is repealed, unless a later enacted statute,
that is enacted before December 31, 2023, deletes or extends that
date.

begin insert

begin insert SEC. 1.5. end insert   

end insert

begin insert Section 65583.2 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

65583.2.  

(a) A city’s or county’s inventory of land suitable
for residential development pursuant to paragraph (3) of
subdivision (a) of Section 65583 shall be used to identify sites that
can be developed for housing within the planning period and that
are sufficient to provide for the jurisdiction’s share of the regional
housing need for all income levels pursuant to Section 65584. As
used in this section, “land suitable for residential development”
includes all of the following:

(1) Vacant sites zoned for residential use.

(2) Vacant sites zoned for nonresidential use that allows
residential development.

(3) Residentially zoned sites that are capable of being developed
at a higher density.

(4) Sites zoned for nonresidential use that can be redeveloped
for, and as necessary, rezoned for, residential use.

(b) The inventory of land shall include all of the following:

(1) A listing of properties by parcel number or other unique
reference.

(2) The size of each property listed pursuant to paragraph (1),
and the general plan designation and zoning of each property.

(3) For nonvacant sites, a description of the existing use of each
property.

(4) A general description of any environmental constraints to
the development of housing within the jurisdiction, the
documentation for which has been made available to the
jurisdiction. This information need not be identified on a
site-specific basis.

(5) A general description of existing or planned water, sewer,
and other dry utilities supply, including the availability and access
to distribution facilities. This information need not be identified
on a site-specific basis.

(6) Sites identified as available for housing for above
moderate-income households in areas not served by public sewer
systems. This information need not be identified on a site-specific
basis.

(7) A map that shows the location of the sites included in the
inventory, such as the land use map from the jurisdiction’s general
begin delete plan end delete begin insert plan, end insert for reference purposes only.

(c) Based on the information provided in subdivision (b), a city
or county shall determine whether each site in the inventory can
accommodate some portion of its share of the regional housing
need by income level during the planning period, as determined
pursuant to Section 65584. The analysis shall determine whether
the inventory can provide for a variety of types of housing,
including multifamily rental housing, factory-built housing,
mobilehomes, housing for agricultural employees, emergency
shelters, and transitional housing. The city or county shall
determine the number of housing units that can be accommodated
on each site as follows:

(1) If local law or regulations require the development of a site
at a minimum density, the department shall accept the planning
agency’s calculation of the total housing unit capacity on that site
based on the established minimum density. If the city or county
does not adopt a law or regulations requiring the development of
a site at a minimum density, then it shall demonstrate how the
number of units determined for that site pursuant to this subdivision
will be accommodated.

(2) The number of units calculated pursuant to paragraph (1)
shall be adjusted as necessary, based on the land use controls and
site improvements requirement identified in paragraph (5) of
subdivision (a) of Section 65583.

(3) For the number of units calculated to accommodate its share
of the regional housing need for lower income households pursuant
to paragraph (2), a city or county shall do either of the following:

(A) Provide an analysis demonstrating how the adopted densities
accommodate this need. The analysis shall include, but is not
limited to, factors such as market demand, financial feasibility, or
information based on development project experience within a
zone or zones that provide housing for lower income households.

(B) The following densities shall be deemed appropriate to
accommodate housing for lower income households:

(i) For begin insert an end insert incorporated begin delete cities end delete begin insert city end insert within begin insert a end insert nonmetropolitan
begin delete counties end delete begin insert county end insert and for begin insert a end insert nonmetropolitan begin delete counties that have end delete
begin insert county that has a end insert micropolitan begin delete areas: end delete begin insert area: end insert sites allowing at least
15 units per acre.

(ii) For begin insert an end insert unincorporated begin delete areas in all end delete begin insert area in a end insert nonmetropolitan
begin delete counties end delete begin insert county end insert not included in clause (i): sites allowing at least
10 units per acre.

(iii) For begin insert a end insert suburban begin delete jurisdictions: end delete begin insert jurisdiction: end insert sites allowing at
least 20 units per acre.

(iv) For begin delete jurisdictions in end delete begin insert a jurisdiction in a end insert metropolitan begin delete counties: end delete
begin insert county: end insert sites allowing at least 30 units per acre.

(d) For purposes of this section, begin insert a end insert metropolitan begin delete counties, end delete begin insert county, end insert
nonmetropolitan begin delete counties, end delete begin insert county, end insert and nonmetropolitan begin delete counties
with micropolitan areas are end delete begin insert county with a micropolitan area shall
be end insert as determined by the United States Census Bureau.
begin delete Nonmetropolitan counties with micropolitan areas include end delete begin insert A
nonmetropolitan county with a micropolitan area includes end insert the
following counties: Del Norte, Humboldt, Lake, Mendocino,
Nevada, Tehama, and Tuolumne and begin delete such end delete other counties as may
be determined by the United States Census Bureau to be
nonmetropolitan counties with micropolitan areas in the future.

(e)  begin delete A jurisdiction is end delete begin insert (1) end insert begin insert   end insert begin insert Except as provided in paragraph (2),
a jurisdiction shall be end insert considered suburban if the jurisdiction does
not meet the requirements of clauses (i) and (ii) of subparagraph
(B) of paragraph (3) of subdivision (c) and is located in a
Metropolitan Statistical Area (MSA) of less than 2,000,000 in
population, unless that jurisdiction’s population is greater than
100,000, in which case it begin delete is end delete begin insert shall be end insert considered metropolitan.
begin delete Counties, end delete begin insert A county, end insert not including the City and County of San
Francisco, begin delete will end delete begin insert shall end insert be considered suburban unless begin delete they are in a end delete
begin insert the county is in an end insert MSA of 2,000,000 or greater in population in
which case begin delete they are end delete begin insert the county shall be end insert considered metropolitan.

begin insert

(2) (A) (i) Notwithstanding paragraph (1), if a county that is
in the San Francisco-Oakland-Fremont California MSA has a
population of less than 400,000, that county shall be considered
suburban. If this county includes an incorporated city that has a
population of less than 100,000, this city shall also be considered
suburban. This paragraph shall apply to a housing element revision
cycle, as described in subparagraph (A) of paragraph (3) of
subdivision (e) of Section 65588, that is in effect from July 1, 2014,
to December 31, 2023, inclusive.

end insert begin insert

(ii) A county subject to this subparagraph shall utilize the sum
existing in the county’s housing trust fund as of June 30, 2013, for
the development and preservation of housing affordable to low- and
very low income households.

end insert begin insert

(B) A jurisdiction that is classified as suburban pursuant to this
paragraph shall report to the Assembly Committee on Housing
and Community Development, the Senate Committee on
Transportation and Housing, and the Department of Housing and
Community Development regarding its progress in developing
low- and very low-income housing consistent with the requirements
of Section 65400. The report shall be provided twice, once, on or
before December 31, 2019, which report shall address the initial
four years of the housing element cycle, and a second time, on or
before December 31, 2023, which report shall address the
subsequent four years of the housing element cycle and the cycle
as a whole. The reports shall be provided consistent with the
requirements of Section 9795.

end insert

(f) A jurisdiction begin delete is end delete begin insert shall be end insert considered metropolitan if the
jurisdiction does not meet the requirements for “suburban area”
above and is located in a MSA of 2,000,000 or greater in
population, unless that jurisdiction’s population is less than 25,000
in which case it begin delete is end delete begin insert shall be end insert considered suburban.

(g) For sites described in paragraph (3) of subdivision (b), the
city or county shall specify the additional development potential
for each site within the planning period and shall provide an
explanation of the methodology used to determine the development
potential. The methodology shall consider factors including the
extent to which existing uses may constitute an impediment to
additional residential development, development trends, market
conditions, and regulatory or other incentives or standards to
encourage additional residential development on these sites.

(h) The program required by subparagraph (A) of paragraph (1)
of subdivision (c) of Section 65583 shall accommodate 100 percent
of the need for housing for very low and low-income households
allocated pursuant to Section 65584 for which site capacity has
not been identified in the inventory of sites pursuant to paragraph
(3) of subdivision (a) on sites that shall be zoned to permit
owner-occupied and rental multifamily residential use by right
during the planning period. These sites shall be zoned with
minimum density and development standards that permit at least
16 units per site at a density of at least 16 units per acre in
jurisdictions described in clause (i) of subparagraph (B) of
paragraph (3) of subdivision (c) and at least 20 units per acre in
jurisdictions described in clauses (iii) and (iv) of subparagraph (B)
of paragraph (3) of subdivision (c). At least 50 percent of the very
low and low-income housing need shall be accommodated on sites
designated for residential use and for which nonresidential uses
or mixed-uses are not begin delete permitted. end delete begin insert permitted, except that a city or
county may accommodate all of the very low and low-income
housing need on sites designated for mixed uses if those sites allow
100 percent residential use and require that residential use occupy
50 percent of the total floor area of a mixed-use project. end insert

(i) For purposes of this section and Section 65583, the phrase
“use by right” shall mean that the local government’s review of
the owner-occupied or multifamily residential use may not require
a conditional use permit, planned unit development permit, or other
discretionary local government review or approval that would
constitute a “project” for purposes of Division 13 (commencing
with Section 21000) of the Public Resources Code. Any subdivision
of the sites shall be subject to all laws, including, but not limited
to, the local government ordinance implementing the Subdivision
Map Act. A local ordinance may provide that “use by right” does
not exempt the use from design review. However, that design
review shall not constitute a “project” for purposes of Division 13
(commencing with Section 21000) of the Public Resources Code.
Use by right for all rental multifamily residential housing shall be
provided in accordance with subdivision (f) of Section 65589.5.

begin insert

(j) Notwithstanding any other provision of this section, within
one-half mile of a Sonoma-Marin Area Rail Transit station, housing
density requirements in place on June 30, 2014, shall apply.

end insert begin insert

(k) This section shall remain in effect only until December 31,
2023, and as of that date is repealed, unless a later enacted statute,
that is enacted before December 31, 2023, deletes or extends that
date.

end insert

SEC. 2.  

Section 65583.2 is added to the Government Code, to
read:

65583.2.  

(a)  begin delete City’s end delete begin insert A city’s end insert or county’s inventory of land
suitable for residential development pursuant to paragraph (3) of
subdivision (a) of Section 65583 shall be used to identify sites that
can be developed for housing within the planning period and that
are sufficient to provide for the jurisdiction’s share of the regional
housing need for all income levels pursuant to Section 65584. As
used in this section, “land suitable for residential development”
includes all of the following:

(1) Vacant sites zoned for residential use.

(2) Vacant sites zoned for nonresidential use that allows
residential development.

(3) Residentially zoned sites that are capable of being developed
at a higher density.

(4) Sites zoned for nonresidential use that can be redeveloped
for, and, as necessary, rezoned for, residential use.

(b) The inventory of land shall include all of the following:

(1) A listing of properties by parcel number or other unique
reference.

(2) The size of each property listed pursuant to paragraph (1),
and the general plan designation and zoning of each property.

(3) For nonvacant sites, a description of the existing use of each
property.

(4) A general description of any environmental constraints to
the development of housing within the jurisdiction, the
documentation for which has been made available to the
jurisdiction. This information need not be identified on a
site-specific basis.

(5) A general description of existing or planned water, sewer,
and other dry utilities supply, including the availability and access
to distribution facilities. This information need not be identified
on a site-specific basis.

(6) Sites identified as available for housing for above
moderate-income households in areas not served by public sewer
systems. This information need not be identified on a site-specific
basis.

(7) A map that shows the location of the sites included in the
inventory, such as the land use map from the jurisdiction’s general
plan for reference purposes only.

(c) Based on the information provided in subdivision (b), a city
or county shall determine whether each site in the inventory can
accommodate some portion of its share of the regional housing
need by income level during the planning period, as determined
pursuant to Section 65584. The analysis shall determine whether
the inventory can provide for a variety of types of housing,
including multifamily rental housing, factory-built housing,
mobilehomes, housing for agricultural employees, emergency
shelters, and transitional housing. The city or county shall
determine the number of housing units that can be accommodated
on each site as follows:

(1) If local law or regulations require the development of a site
at a minimum density, the department shall accept the planning
agency’s calculation of the total housing unit capacity on that site
based on the established minimum density. If the city or county
does not adopt a law or regulations requiring the development of
a site at a minimum density, then it shall demonstrate how the
number of units determined for that site pursuant to this subdivision
will be accommodated.

(2) The number of units calculated pursuant to paragraph (1)
shall be adjusted as necessary, based on the land use controls and
site improvements requirement identified in paragraph (5) of
subdivision (a) of Section 65583.

(3) For the number of units calculated to accommodate its share
of the regional housing need for lower income households pursuant
to paragraph (2), a city or county shall do either of the following:

(A) Provide an analysis demonstrating how the adopted densities
accommodate this need. The analysis shall include, but is not
limited to, factors such as market demand, financial feasibility, or
information based on development project experience within a
zone or zones that provide housing for lower income households.

(B) The following densities shall be deemed appropriate to
accommodate housing for lower income households:

(i) For an incorporated city within a nonmetropolitan county
and for a nonmetropolitan county that has a micropolitan area:
sites allowing at least 15 units per acre.

(ii) For an unincorporated area in a nonmetropolitan county not
included in clause (i): sites allowing at least 10 units per acre.

(iii) For a suburban jurisdiction: sites allowing at least 20 units
per acre.

(iv) For a jurisdiction in a metropolitan county: sites allowing
at least 30 units per acre.

(d) For purposes of this section, a metropolitan county,
nonmetropolitan county, and nonmetropolitan county with a
micropolitan area shall be as determined by the United States
Census Bureau. A nonmetropolitan county with a micropolitan
area includes the following counties: Del Norte, Humboldt, Lake,
Mendocino, Nevada, Tehama, and Tuolumne and other counties
as may be determined by the United States Census Bureau to be
nonmetropolitan counties with micropolitan areas in the future.

(e) A jurisdiction shall be considered suburban if the jurisdiction
does not meet the requirements of clauses (i) and (ii) of
subparagraph (B) of paragraph (3) of subdivision (c) and is located
in a Metropolitan Statistical Area (MSA) of less than 2,000,000
in population, unless that jurisdiction’s population is greater than
100,000, in which case it shall be considered metropolitan. A
county, not including the City and County of San Francisco, shall
be considered suburban unless the county is in an MSA of
2,000,000 or greater in population in which case the county shall
be considered metropolitan.

(f) A jurisdiction shall be considered metropolitan if the
jurisdiction does not meet the requirements for “suburban area”
above and is located in an MSA of 2,000,000 or greater in
population, unless that jurisdiction’s population is less than 25,000
in which case it shall be considered suburban.

(g) For sites described in paragraph (3) of subdivision (b), the
city or county shall specify the additional development potential
for each site within the planning period and shall provide an
explanation of the methodology used to determine the development
potential. The methodology shall consider factors including the
extent to which existing uses may constitute an impediment to
additional residential development, development trends, market
conditions, and regulatory or other incentives or standards to
encourage additional residential development on these sites.

(h) The program required by subparagraph (A) of paragraph (1)
of subdivision (c) of Section 65583 shall accommodate 100 percent
of the need for housing for very low and low-income households
allocated pursuant to Section 65584 for which site capacity has
not been identified in the inventory of sites pursuant to paragraph
(3) of subdivision (a) on sites that shall be zoned to permit
owner-occupied and rental multifamily residential use by right
during the planning period. These sites shall be zoned with
minimum density and development standards that permit at least
16 units per site at a density of at least 16 units per acre in
jurisdictions described in clause (i) of subparagraph (B) of
paragraph (3) of subdivision (c) and at least 20 units per acre in
jurisdictions described in clauses (iii) and (iv) of subparagraph (B)
of paragraph (3) of subdivision (c). At least 50 percent of the very
low and low-income housing need shall be accommodated on sites
designated for residential use and for which nonresidential uses
or mixed-uses are not permitted.

(i) For purposes of this section and Section 65583, the phrase
“use by right” shall mean that the local government’s review of
the owner-occupied or multifamily residential use may not require
a conditional use permit, planned unit development permit, or other
discretionary local government review or approval that would
constitute a “project” for purposes of Division 13 (commencing
with Section 21000) of the Public Resources Code. Any subdivision
of the sites shall be subject to all laws, including, but not limited
to, the local government ordinance implementing the Subdivision
Map Act. A local ordinance may provide that “use by right” does
not exempt the use from design review. However, that design
review shall not constitute a “project” for purposes of Division 13
(commencing with Section 21000) of the Public Resources Code.
Use by right for all rental multifamily residential housing shall be
provided in accordance with subdivision (f) of Section 65589.5.

(j) This section shall become operative on December 31, 2023.

begin insert

begin insert SEC. 2.5. end insert   

end insert

begin insert Section 65583.2 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 65583.2. end insert   

(a) A city’s or county’s inventory of land suitable
for residential development pursuant to paragraph (3) of
subdivision (a) of Section 65583 shall be used to identify sites that
can be developed for housing within the planning period and that
are sufficient to provide for the jurisdiction’s share of the regional
housing need for all income levels pursuant to Section 65584. As
used in this section, “land suitable for residential development”
includes all of the following:

(1) Vacant sites zoned for residential use.

(2) Vacant sites zoned for nonresidential use that allows
residential development.

(3) Residentially zoned sites that are capable of being developed
at a higher density.

(4) Sites zoned for nonresidential use that can be redeveloped
for, and, as necessary, rezoned for, residential use.

(b) The inventory of land shall include all of the following:

(1) A listing of properties by parcel number or other unique
reference.

(2) The size of each property listed pursuant to paragraph (1),
and the general plan designation and zoning of each property.

(3) For nonvacant sites, a description of the existing use of each
property.

(4) A general description of any environmental constraints to
the development of housing within the jurisdiction, the
documentation for which has been made available to the
jurisdiction. This information need not be identified on a
site-specific basis.

(5) A general description of existing or planned water, sewer,
and other dry utilities supply, including the availability and access
to distribution facilities. This information need not be identified
on a site-specific basis.

(6) Sites identified as available for housing for above
moderate-income households in areas not served by public sewer
systems. This information need not be identified on a site-specific
basis.

(7) A map that shows the location of the sites included in the
inventory, such as the land use map from the jurisdiction’s general
plan for reference purposes only.

(c) Based on the information provided in subdivision (b), a city
or county shall determine whether each site in the inventory can
accommodate some portion of its share of the regional housing
need by income level during the planning period, as determined
pursuant to Section 65584. The analysis shall determine whether
the inventory can provide for a variety of types of housing,
including multifamily rental housing, factory-built housing,
mobilehomes, housing for agricultural employees, emergency
shelters, and transitional housing. The city or county shall
determine the number of housing units that can be accommodated
on each site as follows:

(1) If local law or regulations require the development of a site
at a minimum density, the department shall accept the planning
agency’s calculation of the total housing unit capacity on that site
based on the established minimum density. If the city or county
does not adopt a law or regulations requiring the development of
a site at a minimum density, then it shall demonstrate how the
number of units determined for that site pursuant to this subdivision
will be accommodated.

(2) The number of units calculated pursuant to paragraph (1)
shall be adjusted as necessary, based on the land use controls and
site improvements requirement identified in paragraph (5) of
subdivision (a) of Section 65583.

(3) For the number of units calculated to accommodate its share
of the regional housing need for lower income households pursuant
to paragraph (2), a city or county shall do either of the following:

(A) Provide an analysis demonstrating how the adopted densities
accommodate this need. The analysis shall include, but is not
limited to, factors such as market demand, financial feasibility, or
information based on development project experience within a
zone or zones that provide housing for lower income households.

(B) The following densities shall be deemed appropriate to
accommodate housing for lower income households:

(i) For an incorporated city within a nonmetropolitan county
and for a nonmetropolitan county that has a micropolitan area:
sites allowing at least 15 units per acre.

(ii) For an unincorporated area in a nonmetropolitan county
not included in clause (i): sites allowing at least 10 units per acre.

(iii) For a suburban jurisdiction: sites allowing at least 20 units
per acre.

(iv) For a jurisdiction in a metropolitan county: sites allowing
at least 30 units per acre.

(d) For purposes of this section, a metropolitan county,
nonmetropolitan county, and nonmetropolitan county with a
micropolitan area shall be as determined by the United States
Census Bureau. A nonmetropolitan county with a micropolitan
area includes the following counties: Del Norte, Humboldt, Lake,
Mendocino, Nevada, Tehama, and Tuolumne and other counties
as may be determined by the United States Census Bureau to be
nonmetropolitan counties with micropolitan areas in the future.

(e) A jurisdiction shall be considered suburban if the jurisdiction
does not meet the requirements of clauses (i) and (ii) of
subparagraph (B) of paragraph (3) of subdivision (c) and is located
in a Metropolitan Statistical Area (MSA) of less than 2,000,000
in population, unless that jurisdiction’s population is greater than
100,000, in which case it shall be considered metropolitan. A
county, not including the City and County of San Francisco, shall
be considered suburban unless the county is in an MSA of
2,000,000 or greater in population in which case the county shall
be considered metropolitan.

(f) A jurisdiction shall be considered metropolitan if the
jurisdiction does not meet the requirements for “suburban area”
above and is located in an MSA of 2,000,000 or greater in
population, unless that jurisdiction’s population is less than 25,000
in which case it shall be considered suburban.

(g) For sites described in paragraph (3) of subdivision (b), the
city or county shall specify the additional development potential
for each site within the planning period and shall provide an
explanation of the methodology used to determine the development
potential. The methodology shall consider factors including the
extent to which existing uses may constitute an impediment to
additional residential development, development trends, market
conditions, and regulatory or other incentives or standards to
encourage additional residential development on these sites.

(h) The program required by subparagraph (A) of paragraph
(1) of subdivision (c) of Section 65583 shall accommodate 100
percent of the need for housing for very low and low-income
households allocated pursuant to Section 65584 for which site
capacity has not been identified in the inventory of sites pursuant
to paragraph (3) of subdivision (a) on sites that shall be zoned to
permit owner-occupied and rental multifamily residential use by
right during the planning period. These sites shall be zoned with
minimum density and development standards that permit at least
16 units per site at a density of at least 16 units per acre in
jurisdictions described in clause (i) of subparagraph (B) of
paragraph (3) of subdivision (c) and at least 20 units per acre in
jurisdictions described in clauses (iii) and (iv) of subparagraph
(B) of paragraph (3) of subdivision (c). At least 50 percent of the
very low and low-income housing need shall be accommodated
on sites designated for residential use and for which nonresidential
uses or mixed-uses are not permitted, except that a city or county
may accommodate all of the very low and low-income housing
need on sites designated for mixed uses if those sites allow 100
percent residential use and require that residential use occupy 50
percent of the total floor area of a mixed-use project.

(i) For purposes of this section and Section 65583, the phrase
“use by right” shall mean that the local government’s review of
the owner-occupied or multifamily residential use may not require
a conditional use permit, planned unit development permit, or
other discretionary local government review or approval that
would constitute a “project” for purposes of Division 13
(commencing with Section 21000) of the Public Resources Code.
Any subdivision of the sites shall be subject to all laws, including,
but not limited to, the local government ordinance implementing
the Subdivision Map Act. A local ordinance may provide that “use
by right” does not exempt the use from design review. However,
that design review shall not constitute a “project” for purposes
of Division 13 (commencing with Section 21000) of the Public
Resources Code. Use by right for all rental multifamily residential
housing shall be provided in accordance with subdivision (f) of
Section 65589.5.

(j) This section shall become operative on December 31, 2023.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert begin insert

Section 1.5 of this bill incorporates amendments to
Section 65583.2 of the Government Code proposed by both this
bill and Assembly Bill 1690. It shall only become operative if (1)
both bills are enacted and become effective on or before January
1, 2015, (2) each bill amends Section 65583.2 of the Government
Code, and (3) this bill is enacted after Assembly Bill 1690, in which
case Section 1 of this bill shall not become operative.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 2.5 of this bill shall become operative only if
Section 1.5 of this bill becomes operative pursuant to Section 3,
or if Section 1.5 of Assembly Bill 1690 becomes operative pursuant
to Section 2 of that bill, and, in either case, Section 2 of this bill
shall not become operative. end insert

begin delete SEC. 3. end delete
begin insert SEC. 5. end insert   

The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the special circumstances of certain areas
of the state relating to regional housing needs.