BILL NUMBER: AB 1934 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 23, 2016
PASSED THE ASSEMBLY AUGUST 29, 2016
AMENDED IN SENATE AUGUST 18, 2016
AMENDED IN SENATE AUGUST 1, 2016
AMENDED IN SENATE JUNE 14, 2016
AMENDED IN ASSEMBLY JUNE 1, 2016
AMENDED IN ASSEMBLY APRIL 14, 2016
AMENDED IN ASSEMBLY APRIL 4, 2016
INTRODUCED BY Assembly Member Santiago
FEBRUARY 12, 2016
An act to add and repeal Section 65915.7 of the Government Code,
relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 1934, Santiago. Planning and zoning: development bonuses:
mixed-use projects.
The Planning and Zoning Law requires, when an applicant proposes a
housing development within the jurisdiction of the local government,
that the city, county, or city and county provide the developer with
a density bonus and other incentives or concessions for the
production of lower income housing units or for the donation of land
within the development if the developer, among other things, agrees
to construct a specified percentage of units for very low, low-, or
moderate-income households or qualifying residents.
This bill, when an applicant for approval of a commercial
development has entered into an agreement for partnered housing with
an affordable housing developer to contribute affordable housing
through a joint project or 2 separate projects encompassing
affordable housing, would, until January 1, 2022, require a city,
county, or city and county to grant to the commercial developer a
development bonus, as specified. The bill would define the
development bonus to mean incentives mutually agreed upon by the
developer and the jurisdiction that may include but are not limited
to, specified changes in land use requirements. This bill would also
require a city or county to submit to the Department of Housing and
Community Development information describing an approved commercial
development bonus. By increasing the duties of local officials
relating to the administration of development bonuses, this bill
would create a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares that the development
of affordable housing is a matter of statewide concern and is not a
municipal affair as that term is used in Section 5 of Article XI of
the California Constitution. Therefore, Section 65915.7 of the
Government Code, as proposed to be added by this act, shall apply to
all cities, including charter cities.
SEC. 2. Section 65915.7 is added to the Government Code, to read:
65915.7. (a) When an applicant for approval of a commercial
development has entered into an agreement for partnered housing
described in subdivision (c) to contribute affordable housing through
a joint project or two separate projects encompassing affordable
housing, the city, county, or city and county shall grant to the
commercial developer a development bonus as prescribed in subdivision
(b).Housing shall be constructed on the site of the commercial
development or on a site that is all of the following:
(1) Within the boundaries of the local government.
(2) In close proximity to public amenities including schools and
employment centers.
(3) Located within one-half mile of a major transit stop, as
defined in subdivision (b) of Section 21155 of the Public Resources
Code.
(b) The development bonus granted to the commercial developer
shall mean incentives, mutually agreed upon by the developer and the
jurisdiction, that may include, but are not limited to, any of the
following:
(1) Up to a 20-percent increase in maximum allowable intensity in
the General Plan.
(2) Up to a 20-percent increase in maximum allowable floor area
ratio.
(3) Up to a 20-percent increase in maximum height requirements.
(4) Up to a 20-percent reduction in minimum parking requirements.
(5) Use of a limited-use/limited-application elevator for upper
floor accessibility.
(6) An exception to a zoning ordinance or other land use
regulation.
(c) For the purposes of this section, the agreement for partnered
housing shall be between the commercial developer and the housing
developer, shall identify how the commercial developer will
contribute affordable housing, and shall be approved by the city,
county, or city and county.
(d) For the purposes of this section, affordable housing may be
contributed by the commercial developer in one of the following
manners:
(1) The commercial developer may directly build the units.
(2) The commercial developer may donate a portion of the site or
property elsewhere to the affordable housing developer for use as a
site for affordable housing.
(3) The commercial developer may make a cash payment to the
affordable housing developer that shall be used towards the costs of
constructing the affordable housing project.
(e) For the purposes of this section, subparagraph (A) of
paragraph (3) of subdivision (c) of Section 65915 shall apply.
(f) Nothing in this section shall preclude any additional
allowances or incentives offered to developers by local governments
pursuant to law or regulation.
(g) If the developer of the affordable units does not commence
with construction of those units in accordance with timelines
ascribed by the agreement described in subdivision (c), the local
government may withhold certificates of occupancy for the commercial
development under construction until the developer has completed
construction of the affordable units.
(h) In order to qualify for a development bonus under this
section, a commercial developer shall partner with a housing
developer that provides at least 30 percent of the total units for
low-income households or at least 15 percent of the total units for
very low-income households.
(i) Nothing in this section shall preclude an affordable housing
developer from seeking a density bonus, concessions or incentives,
waivers or reductions of development standards, or parking ratios
under Section 65915.
(j) A development bonus pursuant to this section shall not include
a reduction or waiver of the requirements within an ordinance that
requires the payment of a fee by a commercial developer for the
promotion or provision of affordable housing.
(k) A city or county shall submit to the Department of Housing and
Community Development, as part of the annual report required by
Section 65400, information describing a commercial development bonus
approved pursuant to this section, including the terms of the
agreements between the commercial developer and the affordable
housing developer, and the developers and the local jurisdiction, and
the number of affordable units constructed as part of the
agreements.
(l) For purposes of this section, "partner" shall mean formation
of a partnership, limited liability company, corporation, or other
entity recognized by the state in which the commercial development
applicant and the affordable housing developer are each partners,
members, shareholders or other participants, or a contract or
agreement between a commercial development applicant and affordable
housing developer for the development of both the commercial and the
affordable housing properties.
(m) This section shall remain in effect only until January 1,
2022, and as of that date is repealed.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.