HomeMy WebLinkAbout2017-06-13 - AGENDA REPORTS - STATE LEGISLATION: ASSEMBLY BILL 1350 (2)0
Agenda Item: 5
CITY OF SANTA CLARITA
Q) AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: 1
P441)
DATE: June 13, 2017
SUBJECT: STATE LEGISLATION: ASSEMBLY BILL 1350
DEPARTMENT: City Manager's Office
PRESENTER: Masis Hagobian
RECOMMENDED ACTION
City Council adopt the Legislative Committee's recommendation to oppose Assembly Bill 1350
(Friedman) and transmit position statements to Assembly Member Friedman, Santa Clarita's
state legislative delegation, appropriate legislative committees, Governor Brown, and the League
of California Cities.
BACKGROUND
Authored by Assembly Member Laura Friedman (D -43 -Glendale), Assembly Bill 1350 proposes
to place a financial penalty on cities and counties who do not meet specified regional housing
needs assessment obligations and creates a grant program with the funds raised by the penalties.
Specifically, this bill:
1. Requires a city or county that has not met at least one-third of its share of the regional
housing need for low-income and very low-income housing, to pay a penalty to the
Department of Housing and Community Development.
a. The amount of the penalty is equal to either of the following amounts, whichever
is less:
One-third of the annual property tax increment allocated to the city or
county for the 2018-19 fiscal year to the 2020-21 fiscal year, inclusive; or
ii. One-third of the annual sales price for a single-family home in the
noncompliant city or county multiplied by the number of low-income and
very low-income units that would have met at least one-third of the
noncompliant city's or county's share of the regional housing need during
its current housing element planning period.
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iii. If the City were to be penalized, City staff estimates the penalty to be
approximately $5.7 million based on current RHNA goals.
2. Creates the Regional Housing Need Assessment Compliance Fund (RHNA Compliance
Fund) and specifies that the penalty imposed pursuant to this bill be deposited in the
RHNA Compliance Fund.
Specifies that all money deposited in the RHNA Compliance Fund is to be continuously
appropriated to the Department of Housing and Community Development for distribution
of grants to cities and counties that meet at least one-third of their share of the regional
housing need for low-income and very low-income housing.
4. Requires grants to be used by eligible cities and counties for one or more of the following
purposes:
a. To construct low-income and very low-income housing;
b. To convert market -rate housing to low-income and very low-income housing;
c. Very low-, low-, and moderate -income first-time home buyer programs;
d. Workforce housing; and,
e. To subsidize the creation of low-income and very low-income housing units
within other market rate housing projects.
5. Prohibits, on or after January 1, 2021, a city or county that has not met at least one-third
of its share of the regional housing need for low-income and very low-income housing:
a. Collect established fees, or impose new fees, as a condition of approval of a
development project that is greater than 20% of the fee imposed as a condition of
approval for market rate projects; or,
b. Require the payment of building permit fees.
The Regional Housing Needs Assessment (RHNA) is mandated by State Housing Law as part of
a periodic process of updating local housing elements of the General Plan. The RHNA
quantifies the need for housing within each jurisdiction during specified planning periods.
Communities use the RHNA in land use planning, prioritizing local resource allocation, and in
deciding how to address identified existing and future housing needs resulting from population,
employment, and household growth.
According to the author, some local agencies have consistently declined to approve affordable
housing due to political or policy resistance to higher density, lower-cost housing, and to lower-
income residents. Assembly Member Friedman argues that the refusal of some communities to
house low-income residents has caused other nearby communities to assume a disproportionate
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share of the needs of such residents. Additionally, the author states that communities that have
not created affordable housing or housing density have rising property values. Also low density
housing and housing further from affordable housing is viewed as more desirable and commands
a higher selling price. Therefore, the author claims the intent of the bill is to require
communities that are benefitting from not building affordable or high density housing to help
offset the cost and impacts to communities willing to bear the burden of approving and
developing affordable housing.
The American Planning Association, California Chapter (APA), an opponent of Assembly Bill
1350, states that cities and counties do not build housing and that the RHNA is not a production
number but a requirement to plan for and zone adequate sites to accommodate the affordable
housing portion of the RHNA. Additionally, APA argues that the main reason for the lack of
affordable housing is the lack of subsidies to attract development of affordable housing.
Assembly Bill 1350 was double -referred to the Assembly Committee on Local Government and
the Assembly Committee on Housing and Community Development on March 16, 2017. The
first hearing in the Assembly Committee on Local Government was canceled at the request of
the author and no new hearing date has been identified at this time.
The deadline for Assembly Bill 1350 to be heard by a policy committee was April 28, 2017. The
author's staff has confirmed that Assembly Bill 1350 will be a two-year bill.
Supporters
None on file
Notable Opponents
League of California Cities, American Planning Association, and the California State
Association of Counties
The City Council Legislative Committee met on May 19, 2017, and recommends that the City
Council adopt an "oppose" position for Assembly Bill 1350.
ALTERNATIVE ACTION
1. Adopt a "neutral" position on Assembly Bill 1350
2. Adopt a "support" position on Assembly Bill 1350
3. Take no action on Assembly Bill 1350
4. Refer Assembly Bill 1350 back to the Legislative Committee
5. Other action, as determined by the City Council
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FISCAL IMPACT
The resources required to implement the recommended action are contained within the City of
Santa Clarita's adopted 2016/17 budget.
ATTACHMENTS
Assembly Bill 1350 (Friedman)
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AMENDED IN ASSEMBLY MARCH 27. 2017
CALIFORNIA LEGISLATURE -2017-18 REGULAR SESSION
ASSEMBLY BILL No. 1350
Introduced by Assembly Member Friedman
February 17, 2017
An actto
to land use. add Section 65584.08 to the Government Code, relating to
land use, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1350, as amended, Friedman. Land use: housing
element: regional housing need: noncompliant cities and counties:
penalty.
The Planning and Zoning Law requires a city or county to prepare
and adopt a general plan, containing various elements, including a
housing element, and requires the housing element to contain an
assessment of the city's or county's housing needs and an inventory of
resources and constraints relevant to the meeting of those needs. That
law requires that assessment to include the city's or county's share of
the regional housing need, as determined by the Department of Housing
and Community Development in consultation with each council of
governments, and requires a council of governments to develop a
proposed methodology for distributing the existing and projected
regional housing need, as specified.
Existing law requires etteh loettl govemment to re -view its hottsing
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AB 1350 — 2 —
hottsing need among its members. Existing lavt if the eoutteil o
28 mottths prior to the updafe, requires the eoutteil of govemmetits to
proeess. Existing law requires the eoutteil of govemments to determine
af least 25 mottths prior to the sehedttled revision.
44tis bill would itistead attthorize the formation of the sttbregiotia4
to implement the regional hottsing need proeess requirements, af letts
would itistead require the eotmeil of goverttments to determine the shafe
of regional hottsing need assigned to etteh delegate subregion at least
20 motiths prior to the sehedttled revi4ott-.
By ehtmgitig the duties of the eoutteil of govemments as deseribed
above, this bill would impose a stafe mtmdafed loett! program.
44tis bill would provide 4tat no reimbUrsemettt is required by this tte
for a speeified reason.
This bill would require a noncompliant city or county, as defined, to
pay a penalty, as provided, to the Department of Housing and
Community Development. The bill would define a "noncompliant city
or county" to mean a city or county that has not met at least % of its
share ofthe regional housing need for low-income and very low income
housing during its current housing element planning period on or before
January 1, 2021. The bill would require the penalty to be deposited in
the Regional Housing Needs Assessment Compliance Fund, which the
bill would create, and would continuously appropriate money in the
fund to the department for the distribution of grants, as specified, to
compliant cities and counties, as defined. The bill would require
compliant cities and counties to use the grant for specified purposes.
The bill, on or after January 1, 2021, would prohibit a noncompliant
city or county from collecting established fees, or imposing new fees,
as a condition of approval of a development project, as specified, and
from requiring the payment of building permit fees.
Vote: tnftjority-2/3. Appropriation: nayes. Fiscal committee: yes.
State -mandated local program: yes -no.
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AB 1350
The people of the State of California do enact as follows:
1 SECTION 1. Section 65584.08 is added to the Government
2 Code, to read:
3 65584.08. (a) (1) A noncompliant city or county shall pay a
4 penalty to the department. The penalty shall be an amount equal
5 to either of the following amounts, whichever is less:
6 (A) One-third of the annual property tax increment allocated
7 to the city or county for the 2018-19 fiscal year to the 2020-21
8 fiscal year, inclusive.
9 (B) One-third ofthe annual sales price for a single-family home
10 in the noncompliant city or county multiplied by the number of
11 low-income and very low income units that would have met at least
12 one-third of the noncompliant city's or county's share of the
13 regional housing need during its current housing elementplanning
14 period.
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(2) (A) The penalty imposed pursuant to paragraph (1) shall
be deposited in the Regional Housing Needs Assessment
Compliance Fund, which is hereby created in the General Fund.
(B) Notwithstanding Section 13340, all money deposited in the
Regional Housing Needs Assessment Compliance Fund is hereby
continuously appropriated to the department without regard to
fiscal years for distribution ofgrants in accordance with paragraph
(3) to compliant cities and counties.
(3) (A) The department shall do all of the following:
(i) Be responsible for overseeing the grant program.
(ii) Award grants to compliant cities and counties with priority
given to projects within compliant cities and counties that are
closest in proximity to cities and counties that have paid the penalty
required pursuant to paragraph (1).
(iii) Publish deadlines and written procedures for compliant
cities and counties to apply for the grants.
(B) Grants awarded pursuant to this paragraph shall be used
by compliant cities and counties for one or more of the following
purposes:
(i) To construct low-income and very low income housing.
(ii) To convert market -rate housing to low-income and very low
income housing.
(iii) Very low, low-, and moderate -income first-time home buyer
38 programs.
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AB 1350 —4-
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1 (iv) Workforce housing.
2 (v) To subsidize the creation oflow-income and very low income
3 housing units within other market rate housing projects.
4 (4) Upon payment ofthe penalty required pursuant to paragraph
5 (1), a noncompliant city or county shall be deemed to be a
6 compliant city or county.
7 (5) A noncompliant city or county that has not received an
8 allocation of annual property tax increment for the 2018 19fiscal
9 year to the 2020-21 fiscal year, inclusive, shall not be required
10 to pay the penalty required pursuant to paragraph (1).
11 (b) (1) On or after January 1, 2021, a noncompliant city or
12 county shall not do either ofthe following for low-income and very
13 low income housing projects:
14 (A) Collect established fees, or impose new fees, as a condition
15 of approval of a development project that is greater than 20 percent
16 of the fee imposed as a condition of approval for market rate
17 projects.
18 (B) Require the payment of building permit fees.
19 (2) This subdivision shall cease to apply to a noncompliant city
20 or county when either of the following occur:
21 (A) A noncompliant city or county pays the penalty required
22 pursuant to subdivision (a).
23 (B) A noncompliant city or county described in paragraph (5)
24 of subdivision (a) becomes a compliant city or county.
25 (c) For purposes of this section, all of the following definitions
26 shall apply:
27 (1) "Annual tax increment" has the same meaning as that term
28 is described in Section 96.5 of the Revenue and Taxation Code.
29 (2) "Compliant city or county" means a city or county that has
30 met at least one-third of its share of the regional housing need for
31 low-income and very low income housing during its current
32 housing element planning period on or before January 1, 2021.
33 (3) `Department" means the Department of Housing and
34 Community Development.
35 (4) "Noncompliant city or county" means a city or county that
36 has not met at least one-third of its share of the regional housing
37 need for low-income and very low income housing during its
38 current housing element planning period on or before January 1,
39 2021.
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—5— AB 1350
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2 amended
to read:
3 65584.03.
(a) A4 least 24 motAhs
prior to the seheduled h
4 element
updafe required by Seetion
65588, at least two or more
7 tieed for
housing among its members
iti tteeordtmee with the
Y
te purpose
of establishing a subregion
shall be to reeognize the
11 for providing
housing within a subregion.
A subregion formed
14 eotttigttotts
loettl govemments and
shall be approved by the
15 adoption
of a resolution by etteh of
the loettl govemmettts iti the
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AB 1350 —6-
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2 proposed
alloeafion to
a subregion. if
--- Ott is
4 expltmafioti
of why the
proposed revised share
has not beeti
8 lftt
delegate subregion fails
to eomplete the regional
housing tleed
11 between
the subregion
and the eoutteil of govemmettts,
the
12 alloeafions
to member jurisdietions
shall be made
by the eoutteil
13 of
govemmettts.
14
SEG. 2. No reit4ursement
is required by this
aet pursuattt to
17 ehafges,
fees, or assessmettts
suffieiettt to pay for
the program o
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