BILL ANALYSIS                                                                                                                                                                                                    



                                                          SB 948
                                                          Page  1

Date of Hearing:   August 25, 1999

              ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                    Carole Migden, Chairwoman

         SB 948 (Alarcon) - As Amended: August 16, 1999 

Policy Committee:                              Housing and  
Community Development                          Vote:6-3

Urgency:     No                   State Mandated Local  
Program:YesReimbursable:          Yes

  SUMMARY  :

This bill:

1)Amends Ellis Act authorizations provided to local public  
  entities regarding the withdrawal of rent-controlled housing  
  units from the market.  Specifically, the amendments:

   a)   Subject such units to certain regulatory provisions if  
     they are again offered for rent within  two  years (instead  
     of the current one year) after being withdrawn from the  
     market.

   b)   Increase the time when a unit may be withdrawn from the  
     market from 60 days to 120 days after notice is provided to  
     the public entity.

   c)   Increase the time when a unit occupied by a tenant who  
     is disabled or at least 62 years old may be withdrawn from  
     the market to one year after notice is provided to the  
     public entity.

2)Reduces the time for approving a low-income housing project  
  from 180 days to 90 days after certification of the  
  Environmental Impact Report (EIR) if certain conditions are  
  meet.

3)Strengthens the findings a city or county must make in order  
  to deny an affordable housing project.

4)Makes other clarifications to existing law governing the  
  development and approval of affordable housing.








                                                          SB 948
                                                          Page  2

  
FISCAL EFFECT  :

Minor absorbable costs to local governments.

  COMMENTS  :

  Purpose  . According to the author, this bill will increase the  
development of affordable housing by reducing barriers at the  
local level.  The author cites state officials' estimates of a  
demand for 250,000 new housing units each year in California,  
but that fewer than 130,000 were built last year.  Many  
economists agree that inadequate housing production poses a  
major long-run threat to the state's economic growth.

  Analysis Prepared by  :    Chuck Nicol / APPR. / (916)319-2081