BILL ANALYSIS �
AB 2222
Page 1
ASSEMBLY THIRD READING
AB 2222 (Nazarian)
As Amended May 5, 2014
Majority vote
HOUSING 7-0 LOCAL GOVERNMENT 8-0
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|Ayes:|Chau, Beth Gaines, |Ayes:|Achadjian, Levine, Alejo, |
| |Gordon, Brown, | |Bradford, Gordon, |
| |Maienschein, Quirk-Silva, | |Melendez, Mullin, Rendon |
| |Yamada | | |
| | | | |
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SUMMARY : Prohibits an applicant from receiving a density bonus
unless the proposed housing development or condominium project
would maintain the number and proportion of affordable housing
units within the proposed development, and increases the
required affordability from 30 years or longer to 55 years or
longer. Specifically, this bill :
1)Prohibits an applicant from receiving a density bonus or any
other incentives or concessions if a proposed housing
development or condominium project is located on any property
that includes a parcel on which dwelling units have, at any
time in the five-year period preceding the application, been:
a) Occupied by very low- or low-income households;
b) Subject to a recorded covenant, ordinance, or law that
restricts rents to levels affordable to persons and
families of very low- or low-income; or
c) Subject to any other form of rent or price control
through a public entity's valid exercise of its police
power.
2)Provides that the prohibition in 1) above, does not apply if
the proposed housing development or condominium project would
replace the existing affordable units with at least the same
number and type of affordable units and either of the
following applies:
a) For mixed-income housing, the development must include
AB 2222
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additional affordable units at the percentage required by
existing density bonus law; or,
b) For 100% affordable developments all units are occupied
by either very low- or low- income households.
3)Increases the affordability requirement of all very low- and
low-income units that qualified an applicant for a density
bonus from 30 years or longer to 55 years or longer.
FISCAL EFFECT : None
COMMENTS : To help address California's affordable housing
shortage, the Legislature enacted density bonus law to encourage
the development of more affordable units. Under current law, a
city or county must grant a density bonus, concessions and
incentives, prescribed parking requirements, as well as waivers
of development standards upon a developer's request when the
developer includes a certain percentage of affordable housing in
a housing development project.
Density bonus law was originally enacted in 1979, but has been
changed numerous times since. SB 1818 (Hollingsworth), Chapter
928, Statutes of 2004, made significant changes to the law,
including reducing the number of housing units required to be
provided at below market rate in order to qualify for a density
bonus. Developers are entitled to benefits under the density
bonus law when they include as few as one affordable housing
unit as part of an otherwise market-rate project. A housing
project with only 5% very low-income housing is entitled to a
20% density bonus, one concession, unlimited waivers from
development standards, and reduced parking standards for the
entire project.
This bill addresses the preservation of existing affordable
units. Under existing law, a developer proposing to develop a
residential project, or an applicant for approval to convert
apartments to a condominium project, qualifies for a density
bonus if the proposed project has a specific percentage of units
set-aside for affordable housing. This bill would prohibit an
applicant from receiving a density bonus, incentive, or
concession if a proposed housing development or condominium
project is located on property where dwelling units have, at any
time in the five-year period preceding the application, been
AB 2222
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occupied by very low- or low-income households or subject to
rent control.
However, an applicant may overcome this prohibition by replacing
all existing affordable units with units of equivalent
affordability and size and/or type, as well as either providing
an additional set-aside of affordable housing units under the
density bonus formula or developing a 100% affordable project.
This bill also increases the required affordability from 30
years or longer to 55 years or longer for all affordable units
that qualified an applicant for a density bonus.
Purpose of the bill: Adequate and affordable housing is an
issue of statewide concern but, according to the author, the
change made to density bonus law by SB 1818 had the reverse
effect and resulted in fewer affordable units. This bill
ensures that affordable units are preserved when a developer
proposes to demolish a site and the new proposal is to replace
the prior structure with a new residential structure by ensuring
that the project begins with the same number of affordable
units. This bill also increases the affordability requirement
from 30 years to 55 years for all affordable units that
qualified an applicant for a density bonus, which is consistent
with other state and local programs and promotes the supply of
affordable units for years to come.
Analysis Prepared by : Rebecca Rabovsky / H. & C.D. / (916)
319-2085
FN: 0003429