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HomeMy WebLinkAbout2017-08-22 - AGENDA REPORTS - STATE LEGISLATION SB 167 (2)0 Agenda Item: 5 CITY OF SANTA CLARITA Q:° AGENDA REPORT CONSENT CALENDAR 7, CITY MANAGER APPROVAL: 1 j4 _ " DATE: August 22, 2017 SUBJECT: STATE LEGISLATION: SENATE BILL 167 DEPARTMENT: City Manager's Office PRESENTER: Masis Hagobian RECOMMENDED ACTION City Council adopt the Legislative Committee's recommendation to oppose Senate Bill 167 (Skinner) and transmit position statements to Senator Skinner, Santa Clarita's state legislative delegation, appropriate legislative committees, Governor Brown, and the League of California Cities. BACKGROUND Authored by Senator Nancy Skinner (D -9 -Berkeley), Senate Bill 167 imposes a minimum fine of $10,000 per housing unit in a housing development project if a court finds that a city and/or county violated the Housing Accountability Act when disapproving a residential development project. The Housing Accountability Act is a California state law that requires cities and counties, under existing planning and zoning law, to prepare and adopt a general plan, including a housing element, to guide the future growth of a community. The housing element consists of an identification and analysis of existing and projected housing needs and a statement of goals, policies, objectives, financial resources and scheduled programs for the preservation, improvement, and development of housing. Additionally, this bill: 1. Clarifies that a change in a zoning ordinance or general plan land use designation subsequent to the date the application was deemed complete shall not constitute a valid basis to disapprove or condition approval of the housing development project or emergency shelter. 2. Requires a city and/or county to publish an analysis of the requirements of the Housing Accountability Act as part of its review of each application for a housing development Page 1 PacketPg. 46 prod ect. 3. Provides that a housing organization shall be entitled to reasonable attorney's fees and costs. According to the author, "The Housing Accountability Act has been a tool used to ensure local jurisdictions build housing the state desperately needs. Strengthening the Housing Accountability Act will make it more difficult for local governments to disapprove, prolong, or reject proposed housing developments. This bill addresses the severity of California's housing crisis by taking a critical look at cities' approval process for development. State courts are often too deferential to localities in accepting any justification to deny a good housing project that otherwise meets all development requirements. Although there is an evident lack of funding, space, and construction, there are solutions the state can implement to ensure development is taking place in conjunction with a city's local laws." Furthermore, supporters of this bill argue that, "the current enforcement mechanisms of the Housing Accountability Act are inadequate to achieve compliance from local governments. The housing shortage, while felt regionally and statewide, is often created by the individual decisions of local jurisdictions. It is critical to prevent localities from saying no to housing at the expense of California as a whole." Opponents cite the following issues with Senate Bill 167: • The bill requires the court to consider the local agency's process in attaining its target allocation of the regional housing need in determining the amount of fine to impose on a local agency that has violated the Housing Accountability Act. The regional housing need is a planning tool and was not designed to be used as a production goal or target. Fines should only be assessed based on existing requirements in housing element law that local agencies are already required to meet by law; • Local agencies should have an opportunity to cure a violation of the Housing Accountability Act before fines are imposed; and • The bill should provide more clarity as to what should be included in the new requirement for a local agency to publish an analysis of the Housing Accountability Act for a housing development project. The City of Santa Clarita 2017 Legislative Platform (Legislative Platform) includes a component related to local land use and elements proposed in this bill. Specifically, component 15 under the "State" section of the Legislative Platform advises that the City Council, "Oppose legislation that would interfere with, limit or eliminate the decision-making authority of local governments in the area of local land use." Senate Bill 167 passed the Senate on June 1, 2017, (30-10-0) and passed the Assembly Committee on Local Government (7-1-1) on July 12, 2017. Senator Scott Wilk voted in opposition of the bill and Senator Henry Stern voted in support of the bill. Assembly Member Tom Lackey voted in support of this bill as a committee member on the Assembly Committee on Page 2 Packet Pg. 47 Local Government. This bill will neat be heard by the Assembly Committee on Appropriations. The City Council Legislative Committee met on July 13, 2017, and recommends that the City Council adopt an "oppose" position for Senate Bill 167. ALTERNATIVE ACTION 1. Adopt a "neutral" position on Senate Bill 167 2. Adopt a "support" position on Senate Bill 167 3. Take no action on Senate Bill 167 4. Refer Senate Bill 167 back to the Legislative Committee 5. Other action, as determined by the City Council FISCAL IMPACT The resources required to implement the recommended action are contained within the City of Santa Clarita's adopted 2017/18 budget. ATTACHMENTS SB 167 (Skinner) 0 Page 3 Packet Pg. 48 AMENDED IN ASSEMBLY JULY 13, 2017 AMENDED IN ASSEMBLY JULY 3, 2017 AMENDED IN SENATE MAY 23, 2017 AMENDED IN SENATE MAY 9, 2017 AMENDED IN SENATE APRIL 17, 2017 AMENDED IN SENATE MARCH 29, 2017 AMENDED IN SENATE MARCH 14, 2017 SENATE BILL No. 167 Introduced by Senator Skinner (Principal coauthor: Assembly Member Bocanegra) (Coauthors: Senators Wiener and Beall) January 23, 2017 An act to amend Section 65589.5 of the Government Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST SB 167, as amended, Skinner. Housing Accountability Act. (1) The Housing Accountability Act, among other things, prohibits a local agency from disapproving, or conditioning approval in a manner than renders infeasible, a housing development project for very low, low-, or moderate -income households or an emergency shelter unless the local agency makes specified written findings based upon substantial evidence in the record. This bill would require the findings of the local agency to instead be based on a preponderance of the evidence in the record. 92 5.a Packet Pg. 49 SB 167 —2— (2) The act authorizes a local agency to disapprove or condition approval of a housing development or emergency shelter, as described above, if, among other reasons, the housing development project or emergency shelter is inconsistent with both the jurisdiction's zoning ordinance and general plan land use designation as specified in any element of the general plan as it existed on the date the application was deemed complete, and the jurisdiction has adopted a revised housing element in accordance with specified law. This bill would specify that a change to the zoning ordinance or general plan land use designation subsequent to the date the application was deemed complete does not constitute a valid basis to disapprove or condition approval of the housing development project or emergency shelter. (3) The act defines various terms for purposes of its provisions, including the term "housing development project," which is defined as a project consisting either of residential units only, mixed-use developments consisting of residential and nonresidential units, or transitional housing or supportive housing. For a mixed-use development for these purposes, the act requires that nonresidential uses be limited to neighborhood commercial uses, as defined, and to the first floor of buildings that are 2 or more stories. This bill would instead require, with respect to mixed-use developments, that 2/ of the square footage be designated for residential use. (4) If a local agency proposes to disapprove a housing development project that complies with applicable, objective generalplan andzoning standards and criteria, or to approve it on the condition that it be developed at a lower density, the act requires that the local agency base its decision upon written findings supported by substantial evidence on the record that specified conditions exist. This bill would specify that a housing development project or emergency shelter is deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision for purposes of the above-described provisions if there is substantial evidence that would allow a reasonable person to conclude that the housing development project or emergency shelter is consistent, compliant, or in conformity. The bill, if the local agency considers the housing development project to be inconsistent, not in compliance, or not in conformity, would require the local agency to provide the applicant with written documentation 92 5.a Packet Pg. 50 —3— SB 167 identifying the provision or provisions, and an explanation ofthe reason or reasons it considers the housing development to be inconsistent, not in compliance, or not in conformity within specified time periods. Ifthe local agency fails to provide this documentation, the bill would provide that the housing development project would be deemed consistent, compliant, and in conformity with the applicable plan, program, policy, ordinance, standard, requirement, or other similar provision. By requiring local agencies to provide documentation related to disapprovals of housing development projects, this bill would impose a state -mandated local program. (5) The act authorizes the project applicant, a person who would be eligible to apply for residency in the development or emergency shelter, or a housing organization, as defined, to bring an action to enforce its provisions. This bill would entitle a housing organization to reasonable attorney's fees and costs if it is the prevailing party in an action to enforce the act. (4) (6) If a court finds that the local agency disapproved, or conditioned approval in a manner that renders infeasible the project or emergency shelter or housing for very low, low-, or moderate -income households without making the required findings or without making sufficient findings, the act requires the court to issue an order or judgment compelling compliance with its provisions within 60 days, including an order that the local agency take action on the development project or emergencyskelter: shelter and awarding attorney's fees and costs. This bill would -instead additionally require the court to issue an order eourt compelling compliance with the act, as described above, ifit finds that either the local agency, in violation of a specified provision of the act, disapproved or conditioned approval of a housing development project in a manner rendering it infeasible for the development of an emergency shelter or certain housing without making the required findings or without making findings supported by a preponderance of the evidence, or, the local agency, in violation of another specified provision of the act, disapproved a housing development project complying with specified standards and criteria or imposed a condition that the project be developed at a lower density, without making the required findings or without making findings supported by a 92 5.a Packet Pg. 51 SB 167 —4— preponderance of the evidence. The bill would -require authorize the courtto issue an order or judgment directing the local agency to approve the housing development project or emergency shelter if the court finds that the local agency acted in bad faith when it disapproved or conditionally approved the housing development projector emergency sheltef. shelter in violation of the act. (7) The act authorizes the court to impose fines if it finds that a local agency acted in bad faith when it disapproved or conditionally approved the housing development or emergency shelter and failed to carry out the court's order or judgment compelling compliance within 60 days of the court's judgment. The act requires that the fines be deposited into ahousing trust fund and committed for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households. ThisJbi4+ bill, upon a determination that the local agency has failed to comply with the order or judgment compelling compliance with these provisions within 60 days, would instead require the court to impose fines, i€ as described above, in every instance in which the court determines that its order or judgment has not been: eaffied out within: 60 days. 44te bill would require the loettl ageney to deposit any fines levied into ft housing tmst . the local agency disapproved, or conditioned approval in a manner that renders infeasible, the housing development project or emergency shelter without making the required findings or without making sufficientfindings. The bill would require that the fine be in a minimum amount of $10,000 per housing unit in the housing development project on the date the application was deemed complete. In determining the amount of fine to impose, the bill would require the court to consider the local agency's progress in attaining its target allocation of the regional housing -need need and any prior violations of the aet, the L__ a __. of the , _ __, :_ i a: _.: _._. whether the :_ i a: _.: _._ would impose, tmd the ratio oftneditm home priee to meditm household act. The bill would authorize the local agency to instead deposit the fine into a specified state fund, and would also provide that any funds in a local housing trust fund not expended after 5 years would revert to the state and be deposited in that fund, to be used upon appropriation by the Legislature for financing newly constructed housing units affordable to extremely low, very low, 92 5.a Packet Pg. 52 —5— SB 167 or low-income households. If the local agency has acted in bad faith and failed to carry out the court's order, as described above, the bill would require the court to multiply the fine by a factor of 5. This bill would also require that a petition to enforce the act be filed and served no later than 90 days from the later of (a) the effective date of a decision of the local agency imposing conditions on, disapproving, or taking any other final action on a housing development project or (b) the expiration of certain time periods specified in the Permit Streamlining Act. (8) In order to obtain appellate review of a trial court's order, the act requires a party to file a petition within 20 days after service upon it of a written notice of the entry of the order, or within such further time not exceeding an additional 20 days as the trial court may for good cause allow. This bill would allow a party to instead appeal a trial court's order or judgment to the court of appeal pursuant to specified law. (6) (9) This bill would make various technical and conforming changes to the Housing Accountability Act. (10) This bill would incorporate additional changes to Section 65589.5 ofthe Government Code proposed byAB 1515 to be operative only if this bill andAB 1515 are enacted and this bill is enacted last. (11) 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. Vote: majority. Appropriation: no. Fiscal committee: aayes. State -mandated local program: tie -yes. The people of the State of California do enact as follows: 1 SECTION 1. Section 65589.5 of the Government Code is 2 amended to read: 3 65589.5. (a) The Legislature finds and declares all of the 4 following: 5 (1) The lack of housing, including emergency shelters, is a 6 critical problem that threatens the economic, environmental, and 7 social quality of life in California 92 5.a Packet Pg. 53 SB 167 1 (2) California housing has become the most expensive in the 2 nation. The excessive cost ofthe state's housing supply is partially 3 caused by activities and policies of many local governments that 4 limit the approval of housing, increase the cost of land for housing, 5 and require that high fees and exactions be paid by producers of 6 housing. 7 (3) Among the consequences of those actions are discrimination 8 against low-income and minority households, lack of housing to 9 support employment growth, imbalance in jobs and housing, 10 reduced mobility, urban sprawl, excessive commuting, and air 11 quality deterioration. 12 (4) Many local governments do not give adequate attention to 13 the economic, environmental, and social costs of decisions that 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 result in disapproval of housing development projects, reduction in density of housing projects, and excessive standards for housing development projects. (b) It is the policy of the state that a local government not reject or make infeasible housing development projects, including emergency shelters, that contribute to meetingthe need determined pursuantto this article without athorough analysis of the economic, social, and environmental effects of the action and without complying with subdivision (d). (c) The Legislature also recognizes that premature and unnecessary development of agricultural lands for urban uses continues to have adverse effects on the availability of those lands for food and fiber production and on the economy of the state. Furthermore, it is the policy of the state that development should be guided away from prime agricultural lands; therefore, in implementing this section, local jurisdictions should encourage, to the maximum extent practicable, in filling existing urban areas. (d) A local agency shall not disapprove a housing development project, including farmworker housing as defined in subdivision (h) of Section 50199.7 of the Health and Safety Code, for very low, low-, or moderate -income households, or an emergency shelter, or condition approval in a manner that renders the housing development proj ect infeasible for development for the use of very low, low-, or moderate -income households, or an emergency shelter, including through the use of design review standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as to one of the following: 92 5.a Packet Pg. 54 —7— SB 167 1 (1) The jurisdiction has adopted ahousing element pursuant to 2 this article that has been revised in accordance with Section 65588, 3 is in substantial compliance with this article, and the jurisdiction 4 has met or exceeded its share of the regional housing need 5 allocation pursuant to Section 65584 for the planning period for 6 the income category proposed forthe housing development project, 7 provided that any disapproval or conditional approval shall not be 8 based on any of the reasons prohibited by Section 65008. If the 9 housing development project includes a mix of income categories, 10 and the jurisdiction has not met or exceeded its share of the regional 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 housing need for one or more of those categories, then this paragraph shall not be used to disapprove or conditionally approve the housing development project. The share of the regional housing need met by the jurisdiction shall be calculated consistently with the forms and definitions that may be adopted by the Department of Housing and Community Development pursuant to Section 65400. In the case of an emergency shelter, the jurisdiction shall have met or exceeded the need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. Any disapproval or conditional approval pursuant to this paragraph shall be in accordance with applicable law, rule, or standards. (2) The housing development project or emergency shelter as proposed would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate -income households or rendering the development of the emergency shelter financially infeasible. As used in this paragraph, a "specific, adverse impact' means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. Inconsistency with the zoning ordinance or general plan land use designation shall not constitute a specific, adverse impact upon the public health or safety. (3) The denial of the housing development projector imposition of conditions is required in order to comply with specific state or federal law, and there is no feasible method to comply without rendering the development unaffordable to low- and 92 5.a Packet Pg. 55 SB 167 1 moderate -income households or rendering the development of the 2 emergency shelter financially infeasible. 3 (4) The housing development project or emergency shelter is 4 proposed on land zoned for agriculture or resource preservation 5 that is surrounded on at least two sides by land being used for 6 agricultural or resource preservation purposes, or which does not 7 have adequate water or wastewater facilities to serve the project. 8 (5) The housing development project or emergency shelter is 9 inconsistent with both the jurisdiction's zoning ordinance and 10 general plan land use designation as specified in any element of 11 the general plan as it existed on the date the application was 12 deemed complete, and the jurisdiction has adopted a revised 13 housing element in accordance with Section 65588 that is in 14 substantial compliance with this article. For purposes of this 15 section, a change to the zoning ordinance or general plan land use 16 designation subsequent to the date the application was deemed 17 complete shall not constitute a valid basis to disapprove or 18 condition approval of the housing development project or 19 emergency shelter. 20 (A) This paragraph cannot be utilized to disapprove or 21 conditionally approve ahousing development project ifthe housing 22 development project is proposed on a site that is identified as 23 suitable or available for very low, low-, or moderate -income 24 households in the jurisdiction's housing element, and consistent 25 with the density specified in the housing element, even though it 26 is inconsistent with both the jurisdiction's zoning ordinance and 27 general plan land use designation. 28 (B) If the local agency has failed to identify in the inventory of 29 land in its housing element sites that can be developed for housing 30 within the planning period and are sufficient to provide for the 31 jurisdiction's share of the regional housing need for all income 32 levels pursuant to Section 65584, then this paragraph shall not be 33 utilized to disapprove or conditionally approve a housing 34 development project proposed for asite designated in any element 35 of the general plan for residential uses or designated in any element 36 of the general plan for commercial uses if residential uses are 37 permitted or conditionally permitted within commercial 38 designations. In any action in court, the burden of proof shall be 39 on the local agency to show that its housing element does identify 40 adequate sites with appropriate zoning and development standards 92 5.a Packet Pg. 56 SB 167 1 and with services and facilities to accommodate the local agency's 2 share of the regional housing need for the very low, low-, and 3 moderate -income categories. 4 (C) If the local agency has failed to identify a zone or zones 5 where emergency shelters are allowed as a permitted use without 6 a conditional use or other discretionary permit, has failed to 7 demonstrate that the identified zone or zones include sufficient 8 capacity to accommodate the need for emergency shelter identified 9 in paragraph (7) of subdivision (a) of Section 65583, or has failed 10 to demonstrate that the identified zone or zones can accommodate 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 at least one emergency shelter, as required by paragraph (4) of subdivision (a) of Section 65583, then this paragraph shall not be utilized to disapprove or conditionally approve an emergency shelter proposed for a site designated in any element of the general plan for industrial, commercial, or multifamily residential uses. In any action in court, the burden of proof shall be on the local agency to show that its housing element does satisfy the requirements of paragraph (4) of subdivision (a) of Section 65583. (e) Nothing in this section shall be construed to relieve the local agency from complying with the congestion management program required by Chapter 2.6 (commencing with Section 65088) of Division 1 of Title 7 or the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). Neither shall anything in this section be construed to relieve the local agency from making one or more of the findings required pursuant to Section 21081 of the Public Resources Code or otherwise complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (f) (1) Nothing in this section shall be construed to prohibit a local agency from requiring the housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdiction's share of the regional housing need pursuant to Section 65584. However, the development standards, conditions, and policies shall be applied to facilitate and accommodate development at the density permitted on the site and proposed by the development. (2) Nothing in this section shall be construed to prohibit a local agency from requiring an emergency shelter project to comply 92 5.a Packet Pg. 57 5.a SB 167 _10- 1 10- 1 with objective, quantifiable, written development standards, 2 conditions, and policies that are consistent with paragraph (4) of 3 subdivision (a) of Section 65583 and appropriate to, and consistent 4 with, meeting the jurisdiction's need for emergency shelter, as 5 identified pursuant to paragraph (7) of subdivision (a) of Section 6 65583. However, the development standards, conditions, and 7 policies shall be applied by the local agency to facilitate and 8 accommodate the development of the emergency shelter project. 9 (3) This section does not prohibit a local agency from imposing 10 fees and other exactions otherwise authorized by law that are 11 essential to provide necessary public services and facilities to the 12 housing development project or emergency shelter. 13 (g) This section shall be applicable to charter cities because the 14 Legislature finds that the lack of housing, including emergency 15 shelter, is a critical statewide problem. 16 (h) The following definitions apply for the purposes of this 17 section: m 18 (1) "Feasible" means capable of being accomplished in a 19 successful manner within a reasonable period of time, taking into w 20 account economic, environmental, social, and technological factors. 21 (2) "Housing development project" means a use consisting of o 22 any of the following: R 23 (A) Residential units only. 24 (B) Mixed-use developments consisting of residential and 25 nonresidential uses =- --de=ed- tionresideittial uses afe limited ` w Y 26 neighbofhood eommereia4 uses mid to 4te first floor of buildings .2 27 thaf afe two or more stories. As used itt this pafagraph, 28 `w 29 stores 4taf ftimish goods tmd sefviees primarily to residents ofthe 5 30 neighbofhood. with at least two-thirds of the square footage N 31 designated for residential use. 32 (C) Transitional housing or supportive housing. 33 (3) "Housing for very low, low-, or moderate -income N 34 households" means that either (A) at least 20 percent of the total 35 units shall be sold or rented to lower income households, as defined 36 in Section 50079.5 of the Health and Safety Code, or (B) 100 v 37 percent of the units shall be sold or rented to persons and families r 38 of moderate income as defined in Section 50093 of the Health and 39 Safety Code, or persons and families of middle income, as defined 40 in Section 65008 of this code. Housing units targeted for lower 92 Packet Pg. 58 —11— SB 167 1 income households shall be made available at a monthly housing 2 cost that does not exceed 30 percent of 60 percent of area median 3 income with adjustments for household size made in accordance 4 with the adjustment factors on which the lower income eligibility 5 limits are based. Housing units targeted for persons and families 6 of moderate income shall be made available at a monthly housing 7 cost that does not exceed 30 percent of 100 percent of area median 8 income with adjustments for household size made in accordance 9 with the adjustment factors on which the moderate -income 10 eligibility limits are based. 11 (4) "Area median income" means area median income as 12 periodically established by the Department of Housing and 13 Community Development pursuant to Section 50093 of the Health 14 and Safety Code. The developer shall provide sufficient legal 15 commitments to ensure continued availability of units for very low 16 or low-income households in accordance with the provisions of 17 this subdivision for 30 years. 18 (5) "Disapprove the housing development project' includes any 19 instance in which a local agency does either of the following: 20 (A) Votes on a proposed housing development project 21 application and the application is disapproved. disapproved, 22 including any required land use approvals or entitlements 23 necessary for the issuance of a building permit. 24 (B) Fails to comply with the time periods specified in 25 subdivision (a) of Section 65950. An extension of time pursuant 26 to Article 5 (commencing with Section 65950) shall be deemed to 27 be an extension of time pursuant to this paragraph. 28 (i) If any city, county, or city and county denies approval or 29 imposes conditions, including design changes, lower -density 30 density, or a reduction of the percentage of a lot that may be 31 occupied by a building or structure under the applicable planning 32 and zoning in force at the time the application is deemed complete 33 pursuant to Section 65943, that -has have a substantial adverse 34 effect on the viability or affordability of a housing development 35 for very low, low-, or moderate -income households, and the denial 36 of the development or the imposition of conditions on the 37 development is the subject of a court action which challenges the 38 denial or the imposition of -ms's conditions, then the burden 39 of proof shall be on the local legislative body to show that its 40 decision is consistent with the findings as described in subdivision 92 5.a Packet Pg. 59 SB 167 —12- 1 (d) and that the findings are supported by a preponderance of the 2 evidence in the record. For purposes of this section, "lower 3 density" includes any conditions that have the same effect or 4 impact on the ability of the project to provide housing. 5 0) (1) When a proposed housing development project complies 6 with applicable, objective generals plan, zoning, 7 and subdivision standards and criteria, including design review 8 standards, in effect at the time that the housing development 9 project's application is determined to be complete, but the local 10 agency proposes to disapprove the project orto impose a condition 11 that the project be developed at a lower density, the local agency 12 shall base its decision regarding the proposed housing development 13 proj ect upon written findings supported by a preponderance of the 14 evidence on the record that both of the following conditions exist: 15 ( I-) 16 (A) The housing development project would have a specific, 17 adverse impact upon the public health or safety unless the project 18 is disapproved or approved upon the condition that the project be 19 developed at a lower density. As used in this paragraph, a "specific, 20 adverse impact" means a significant, quantifiable, direct, and 21 unavoidable impact, based on objective, identified written public 22 health or safety standards, policies, or conditions as they existed 23 on the date the application was deemed complete. 24 (2) 25 (B) There is no feasible method to satisfactorily mitigate or 26 avoid the adverse impact identified pursuant to paragraph (1), other 27 than the disapproval of the housing development project or the 28 approval of the project upon the condition that it be developed at 29 a lower density. 30 (2) (A) If the local agency considers a proposed housing 31 development project to be inconsistent, not in compliance, or not 32 in conformity with an applicable plan, program, policy, ordinance, 33 standard, requirement, or other similar provision as specified in 34 this subdivision, it shall provide the applicant with written 35 documentation identifying the provision or provisions, and an 36 explanation of the reason or reasons it considers the housing 37 development to be inconsistent, not in compliance, or not in 38 conformity as follows: 92 5.a Packet Pg. 60 5.a —13— SB 167 1 (i) Within 30 days ofthe date that the application for the housing 2 development project is determined to be complete, if the housing 3 development project contains 150 or fewer housing units. 4 (ii) Within 60 days of the date that the application for the 5 housing development project is determined to be complete, if the 6 housing development project contains more than 150 units. 7 (B) If the local agency fails to provide the required 8 documentation pursuant to subparagraph (A), the housing 9 development project shall be deemed consistent, compliant, and 10 in conformity with the applicable plan, program, policy, ordinance, 11 standard, requirement, or other similar provision. 12 (3) For purposes of this section, the receipt of a density bonus 13 pursuant to Section 65915 shall not constitute a valid basis on 14 which to find a proposed housing development project is 15 inconsistent, not in compliance, or not in conformity, with an 16 applicable plan, program, policy, ordinance, standard, 17 requirement, or other similar provision specified in this m 18 subdivision. R 19 (4) For purposes of this section, "lower density" includes any N 20 conditions that have the same effect or impact on the ability ofthe 21 project to provide housing. o 22 (k) (1) (A) The applicant, a person who would be eligible to R 23 apply for residency in the development or emergency shelter, or MA 24 a housing organization may bring an action to enforce this section. 25 If, in any action brought to enforce this section, a court finds that 26 either (i) the local agency, in violation of subdivision (d), .2 27 disapproved a housing development project or conditioned its 28 approval in a manner rendering it infeasible for the development 29 of an emergency shelter, or housing for very low, low-, or 6 30 moderate -income households, including farmworker housing, vi 31 without making the findings required by this section or without 32 making findings supported by a preponderance of the evidence, 33 or (ii) the local agency, in violation of subdivision 0), disapproved N 34 a housing development project complying with applicable, 35 objective general plan and zoning standards and criteria, or imposed E 36 a condition that the project be developed at a lower density, without v 37 making the findings required by this section or without making r 38 findings supported by a preponderance of the evidence, the court 39 shall issue an order or judgment compelling compliance with this 40 section within 60 days, including, but not limited to, an order that 92 Packet Pg. 61 SB 167 —14- 1 14- 1 the local agency-appreve take action on the housing development 2 project or emergency shelter. The court -+a4 may issue an order 3 or judgment directing the local agency to approve the housing 4 development project or emergency shelter if the court finds that 5 the local agency acted in bad faith when it disapproved or 6 conditionally approved the housing development or emergency 7 shelter in violation of this section. The court shall retain jurisdiction 8 to ensure that its order or judgment is carried out and shall award 9 reasonable attorney's fees and costs of suit to the plaintiff or 10 petitioner, except under extraordinary circumstances in which the 11 court finds that awarding fees would not further the purposes of 12 this section. For purposes ofthis section, "lower density" includes 13 conditions that have the same effect or impact on the ability ofthe 14 project to provide housing. 15 (B) if the eottft determine "--` its (i) Upon a determination 16 that the local agency has failed to comply with the order or 17 judgmenthas not beett eaffied out within 60 days, compelling 18 compliance with this section within 60 days issued pursuant to 19 subparagraph (A), the court shall impose fines on a local agency 20 that has violated this section and require the local agency to deposit 21 any fine levied pursuant to this subdivision into a local housing 22 trust fund. The local agency may elect to instead deposit the fine 23 into the Building Homes and Jobs Fund, if Senate Bill 2 of the 24 2017-18 Regular Session is enacted, or otherwise in the Housing 25 Rehabilitation Loan Fund. The fine shall be in aminimum amount 26 often thousand dollars ($10,000) per housing unit in the housing 27 development project on the date the application was deemed 28 complete pursuant to Section 65943. In determining the amount 29 of fine to impose, the court shall consider the local agency's 30 progress in attaining its target allocation of the regional housing 31 need pursuant to Section 65584, 65584 and any prior violations 32 of this 33 34 35 36 37 ability to provide basie seffiees to its resideitts. section. Fines shall 38 not be paid out of funds already dedicated to affordable housing, 39 including, but not limited to, Low and Moderate Income Housing 40 Asset Funds, funds dedicated to housing for very low, low-, and 92 5.a Packet Pg. 62 _15— SB 167 1 moderate -income households, and federal HOME Investment 2 Partnerships Program and Community Development Block Grant 3 Program funds. The local agency shall commit and expend the 4 money in the local housing trust fund within five years for the sole 5 purpose of financing newly constructed housing units affordable 6 to extremely low, very low, or low-income households. After five 7 years, if the funds have not been expended, the money shall revert 8 to the state and be deposited in the Building Homes and Jobs Fund, 9 if Senate Bill 2 of the 2017-18 Regular Session is enacted, or 10 otherwise in the Housing Rehabilitation Loan Fund, for the sole 11 purpose offinancing newly constructed housing units affordable 12 to extremely low, very low, or low-income households. 13 (ii) If any money derived from a fine imposed pursuant to this 14 subparagraph is deposited in the Housing Rehabilitation Loan 15 Fund, then, notwithstanding Section 50661 ofthe Health and Safety 16 Code, that money shall be available only upon appropriation by 17 the Legislature. 18 (C) 44.e- -If the court determines that its order or judgment has 19 not been carried out within 60 days, the court may issue further 20 orders as provided by law to ensure that the purposes and policies 21 of this section are fulfilled, including, but not limited to, an order 22 to vacate the decision of the local agency and to approve the 23 housing development project, in which case the application forthe 24 housing development project, as proposed by the applicant at the 25 time the local agency took the initial action determined to be in 26 violation of this section, along with any standard conditions 27 determined by the court to be generally imposed by the local 28 agency on similar projects, shall be deemed to be approved unless 29 the applicant consents to a different decision or action by the local 30 agency. 31 (2) For purposes of this subdivision, "housing organization" 32 means atrade or industry group whose local members are primarily 33 engaged in the construction or management of housing units or a 34 nonprofit organization whose mission includes providing or 35 advocating for increased access to housing for low-income 36 households and have filed written or oral comments with the local 37 agency prior to action on the housing development project. A 38 housing organization may only file an action pursuant to this 39 section to challenge the disapproval of a housing development by 40 a local agency. A housing organization shall be entitled to 92 5.a Packet Pg. 63 5.a SB 167 —16- 1 16- 1 reasonable attorney's fees and costs if it is the prevailing party in 2 an action to enforce this section. 3 (1) If the court finds that the local agency (1) acted in bad faith 4 when it disapproved or conditionally approved the housing 5 development or emergency shelter in violation of this section and 6 (2) failed to carry out the court's order or judgment within 60 days 7 as described in subdivision (k), the court, in addition to any other 8 remedies provided by this section, shall multiply the fine 9 determined pursuant to subparagraph (B) of paragraph (1) of 10 subdivision (k) by a factor of5. The ittereased fitte shall be paid, 11 12 base fitte. five. For purposes of this section, "bad faith" includes, 13 but is not limited to, an action that is frivolous or otherwise entirely 14 without merit. 15 (m) Any action brought to enforce the provisions of this section 16 shall be brought pursuant to Section 1094.5 of the Code of Civil 17 Procedure, and the local agency shall prepare and certify the record m 18 of proceedings in accordance with subdivision (c) of Section 1094.6 R 19 of the Code of Civil Procedure no later than 30 days after the w 20 petition is served, provided thatthe cost of preparation of the record 21 shall be borne by the local agency, unless the petitioner elects to 0 22 prepare the record as provided in subdivision (n) of this section. R 23 A petition to enforce the provisions of this section shall be filed MA 24 and served no later than 90 days from the later of (1) the effective J 25 date of a decision of the local agency imposing conditions on, 26 disapproving, or any other final action on a housing development 2 N 27 project or (2) the expiration of the time periods specified in 28 subparagraph (B) of paragraph (5) of subdivision (h). Upon entry 29 of the trial court's order, a party may, in order to obtain 5 30 appellate review of the order, file a petition within 20 days after N 31 service upon it of a written notice of the entry of the order, or 32 within such further time not exceeding an additional 20 days as 33 the trial court may for good cause allow, or may appeal the N 34 judgment or order of the trial court under Section 904.1 of the 35 Code of Civil Procedure. If the local agency appeals the judgment 36 of the trial court, the local agency shall post a bond, in an amount 37 to be determined by the court, to the benefit of the plaintiff if the r 38 plaintiff is the project applicant. 39 (n) In any action, the record of the proceedings before the local 40 agency shall be filed as expeditiously as possible and, 92 Packet Pg. 64 5.a —17— SB 167 1 notwithstanding Section 1094.6 of the Code of Civil Procedure or 2 subdivision (m) of this section, all or part of the record may be 3 prepared (1) by the petitioner with the petition or petitioner's points 4 and authorities, (2) by the respondent with respondent's points and 5 authorities, (3) after payment of costs by the petitioner, or (4) as 6 otherwise directed by the court. If the expense of preparing the 7 record has been borne by the petitioner and the petitioner is the 8 prevailing party, the expense shall be taxable as costs. 9 (o) if a loettl agettey proposes to de" or redttee the density o 10 11 12 render the hottsing developmeitt prejeet itifeasible for very lovv,, 13 14 15 16 17 this seetion does or does not applytothe prejeet, and, ifftpplieable,m 18 the loettl agettey shall make the findings thaf apply to the prejeeR 19 w 20 N 21 o 22 fp) R 23 (o) This section shall be known, and may be cited, as the MA 24 Housing Accountability Act. 25 SEC. 1.5. Section 65589.5 ofthe Government Code is amended 26 to read: 2 N 27 65589.5. (a) (1) The Legislature finds and declares all of the 28 following: 29 (-) 5 30 (A) The lack of housing, including emergency shelters, is a N 31 critical problem that threatens the economic, environmental, and 32 social quality of life in California 33 f2) v00i 34 (B) California housing has become the most expensive in the 35 nation. The excessive cost ofthe state's housing supply is partially 36 caused by activities and policies of many local governments that 37 limit the approval of housing, increase the cost of land for housing, r 38 and require that high fees and exactions be paid by producers of 39 housing. 40 f3) 92 Packet Pg. 65 SB 167 _18- 1 18- 1 (C) Among the consequences of those actions are discrimination 2 against low-income and minority households, lack of housing to 3 support employment growth, imbalance in jobs and housing, 4 reduced mobility, urban sprawl, excessive commuting, and air 5 quality deterioration. 6 0) 7 (D) Many local governments do not give adequate attention to 8 the economic, environmental, and social costs of decisions that 9 result in disapproval of housing development projects, reduction 10 in density of housing projects, and excessive standards for housing 11 development projects. 12 (2) In enacting the amendments made to this section by the act 13 adding this paragraph, the Legislature further finds and declares 14 the following: 15 (A) California has a housing supply and affordability crisis of 16 historic proportions. The consequences offailing to effectively and 17 aggressively confront this crisis are hurting millions of 18 Californians, robbing future generations of the chance to call 19 California home, stifling economic opportunities for workers and 20 businesses, worsening poverty and homelessness, and undermining 21 the state's environmental and climate objectives. 22 (B) While the causes of this crisis are multiple and complex, 23 the absence of meaningful and effective policy reforms to 24 significantly enhance the approval and supply of housing 25 affordable to Californians of all income levels is a key factor. 26 (C) The crisis has grown so acute in California that supply, 27 demand, and affordability fundamentals are characterized in the 28 negative: underserved demands, constrained supply, and protracted 29 unaffordability. 30 (D) According to reports and data, California has accumulated 31 an unmet housing backlog of nearly 2,000,000 units and must 32 provide for at least 180, 000 new units annually to keep pace with 33 growth through 2025. 34 (E) California's overall homeownership rate is at its lowest 35 level since the 1940s. The state ranks 49th out of the 50 states in 36 homeownership rates as well as in the supply ofhousing per capita. 37 Only half of California's households are able to afford the cost of 38 housing in their local regions. 39 (F) Lack ofsupply and rising costs are compounding inequality 40 and limiting advancement opportunities for many Californians. 92 5.a Packet Pg. 66 _19— SB 167 1 (G) The majority of California renters, more than 3,000,000 2 households, pay more than 30 percent of their income toward rent 3 and nearly one-third, more than 1, 500, 000 households, pay more 4 than 50 percent of their income toward rent. 5 (H) When Californians have access to safe and affordable 6 housing, they have more money for food and health care; they are 7 less likely to become homeless and in need of 8 government -subsidized services; their children do better in school; 9 and businesses have an easier time recruiting and retaining 10 employees. 11 (I) An additional consequence ofthe state's cumulative housing 12 shortage is a significant increase in greenhouse gas emissions 13 caused by the displacement and redirection ofpopulations to states 14 with greater housing opportunities, particularly working- and 15 middle-class households. California's cumulative housing shortfall 16 therefore has not only national but international environmental 17 consequences. 18 (J) California's housing picture has reached a crisis ofhistoric 19 proportions despite the fact that, for decades, the Legislature has 20 enacted numerous statutes intended to significantly increase the 21 approval, development, and affordability ofhousing for all income 22 levels, including this section. 23 (K) The Legislature's intent in enacting this section in 1982 24 and in expanding its provisions since then was to significantly 25 increase the approval and construction of new housing for all 26 economic segments of California's communities by meaningfully 27 and effectively curbing the capability of local governments to deny, 28 reduce the density for, or render infeasible housing development 29 projects and emergency shelters. That intent has not been fulfilled. 30 (L) It is the policy of the state that this section should be 31 interpreted and implemented in a manner to afford the fullest 32 possible weight to the interest of, and the approval and provision 33 of, housing. 34 (b) It is the policy of the state that a local government not reject 35 or make infeasible housing -developments development projects, 36 including emergency shelters, that contribute to meeting the need 37 determined pursuant to this article without a thorough analysis of 38 the economic, social, and environmental effects of the action and 39 without complying with subdivision (d). 92 5.a Packet Pg. 67 SB 167 —20- 1 (c) The Legislature also recognizes that premature and 2 unnecessary development of agricultural lands for urban uses 3 continues to have adverse effects on the availability of those lands 4 for food and fiber production and on the economy of the state. 5 Furthermore, it is the policy of the state that development should 6 be guided away from prime agricultural lands; therefore, in 7 implementing this section, local jurisdictions should encourage, 8 to the maximum extent practicable, in filling existing urban areas. 9 (d) A local agency shall not disapprove a housing development 10 project, including farmworker housing as defined in subdivision 11 (h) of Section 50199.7 of the Health and Safety Code, for very 12 low, low-, or moderate -income households, or an emergency 13 shelter, or condition approval in a manner that renders the housing 14 development project infeasible for development for the use of very 15 low, low-, or moderate -income households, or an emergency 16 shelter, including through the use of design review standards, 17 unless it makes written findings, based uponsubstaittial a 18 preponderance of the evidence in the record, as to one of the 19 following: 20 (1) The jurisdiction has adopted ahousing element pursuant to 21 this article that has been revised in accordance with Section 65588, 22 is in substantial compliance with this article, and the jurisdiction 23 has met or exceeded its share of the regional housing need 24 allocation pursuant to Section 65584 for the planning period for 25 the income category proposed forthe housing development project, 26 provided that any disapproval or conditional approval shall not be 27 based on any of the reasons prohibited by Section 65008. If the 28 housing development project includes a mix of income categories, 29 and the jurisdiction has not met or exceeded its share of the regional 30 housing need for one or more of those categories, then this 31 paragraph shall not be used to disapprove or conditionally approve 32 the housing development project. The share of the regional housing 33 need met by the jurisdiction shall be calculated consistently with 34 the forms and definitions that may be adopted by the Department 35 of Housing and Community Development pursuant to Section 36 65400. In the case of an emergency shelter, the jurisdiction shall 37 have met or exceeded the need for emergency shelter, as identified 38 pursuant to paragraph (7) of subdivision (a) of Section 65583. Any 39 disapproval or conditional approval pursuant to this paragraph 40 shall be in accordance with applicable law, rule, or standards. 92 5.a Packet Pg. 68 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 —21— SB 167 (2) The housing development project or emergency shelter as proposed would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate -income households or rendering the development of the emergency shelter financially infeasible. As used in this paragraph, a "specific, adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. Inconsistency with the zoning ordinance or general plan land use designation shall not constitute a specific, adverse impact upon the public health or safety. (3) The denial of the housing development projector imposition of conditions is required in order to comply with specific state or federal law, and there is no feasible method to comply without rendering the development unaffordable to low- and moderate -income households or rendering the development of the emergency shelter financially infeasible. (4) The housing development project or emergency shelter is proposed on land zoned for agriculture or resource preservation that is surrounded on at least two sides by land being used for agricultural or resource preservation purposes, or which does not have adequate water or wastewater facilities to serve the project. (5) The housing development project or emergency shelter is inconsistent with both the jurisdiction's zoning ordinance and general plan land use designation as specified in any element of the general plan as it existed on the date the application was deemed complete, and the jurisdiction has adopted a revised housing element in accordance with Section 65588 that is in substantial compliance with this article. For purposes of this section, a change to the zoning ordinance or general plan land use designation subsequent to the date the application was deemed complete shall not constitute a valid basis to disapprove or condition approval of the housing development project or emergency shelter. (A) This paragraph cannot be utilized to disapprove or conditionally approve ahousing development project if the housing development project is proposed on a site that is identified as 92 5.a Packet Pg. 69 SB 167 —22- 1 suitable or available for very low, low-, or moderate -income 2 households in the jurisdiction's housing element, and consistent 3 with the density specified in the housing element, even though it 4 is inconsistent with both the jurisdiction's zoning ordinance and 5 general plan land use designation. 6 (B) If the local agency has failed to identify in the inventory of 7 land in its housing element sites that can be developed for housing 8 within the planning period and are sufficient to provide for the 9 jurisdiction's share of the regional housing need for all income 10 levels pursuant to Section 65584, then this paragraph shall not be 11 utilized to disapprove or conditionally approve a housing 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 development project proposed for asite designated in any element of the general plan for residential uses or designated in any element of the general plan for commercial uses if residential uses are permitted or conditionally permitted within commercial designations. In any action in court, the burden of proof shall be on the local agency to show that its housing element does identify adequate sites with appropriate zoning and development standards and with services and facilities to accommodate the local agency's share of the regional housing need for the very low and low itteome low, o - low, low-, and moderate -income categories. (C) If the local agency has failed to identify a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit, has failed to demonstrate that the identified zone or zones include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7) of subdivision (a) of Section 65583, or has failed to demonstrate that the identified zone or zones can accommodate at least one emergency shelter, as required by paragraph (4) of subdivision (a) of Section 65583, then this paragraph shall not be utilized to disapprove or conditionally approve an emergency shelter proposed for a site designated in any element of the general plan for industrial, commercial, or multifamily residential uses. In any action in court, the burden of proof shall be on the local agency to show that its housing element does satisfy the requirements of paragraph (4) of subdivision (a) of Section 65583. (e) Nothing in this section shall be construed to relieve the local agency from complying with the congestion management program required by Chapter 2.6 (commencing with Section 65088) of Division 1 of Title 7 or the California Coastal Act of 1976 92 5.a Packet Pg. 70 —23— SB 167 1 (Division 20 (commencing with Section 30000) of the Public 2 Resources Code). Neither shall anything in this section be 3 construed to relieve the local agency from making one or more of 4 the findings required pursuant to Section 21081 of the Public 5 Resources Code or otherwise complying with the California 6 Environmental Quality Act (Division 13 (commencing with Section 7 21000) of the Public Resources Code). 8 (f) (1) Nothing in this section shall be construed to prohibit a 9 local agency from requiring the housing development project to 10 comply with objective, quantifiable, written development standards, 11 conditions, and policies appropriate to, and consistent with, meeting 12 the jurisdiction's share of the regional housing need pursuant to 13 Section 65584. However, the development standards, conditions, 14 and policies shall be applied to facilitate and accommodate 15 development at the density permitted on the site and proposed by 16 the development. 17 (2) Nothing in this section shall be construed to prohibit a local 18 agency from requiring an emergency shelter project to comply 19 with objective, quantifiable, written development standards, 20 conditions, and policies that are consistent with paragraph (4) of 21 subdivision (a) of Section 65583 and appropriate to, and consistent 22 with, meeting the jurisdiction's need for emergency shelter, as 23 identified pursuant to paragraph (7) of subdivision (a) of Section 24 65583. However, the development standards, conditions, and 25 policies shall be applied by the local agency to facilitate and 26 accommodate the development of the emergency shelter project. 27 (3) This section does not prohibit a local agency from imposing 28 fees and other exactions otherwise authorized by law that are 29 essential to provide necessary public services and facilities to the 30 housing development project or emergency shelter. 31 (4) For purposes ofthis section, a housing development project 32 or emergency shelter shall be deemed consistent, compliant, and 33 in conformity with an applicable plan, program, policy, ordinance, 34 standard, requirement, or other similar provision if there is 35 substantial evidence that would allow a reasonable person to 36 conclude that the housing development project or emergency 37 shelter is consistent, compliant, or in conformity. 38 (g) This section shall be applicable to charter cities because the 39 Legislature finds that the lack of housing, including emergency 40 shelter, is a critical statewide problem. 92 5.a Packet Pg. 71 SB 167 —24- 1 (h) The following definitions apply for the purposes of this 2 section: 3 (1) "Feasible" means capable of being accomplished in a 4 successful manner within a reasonable period of time, taking into 5 account economic, environmental, social, and technological factors. 6 (2) "Housing development project' means a use consisting of 7 any of the following: 8 (A) Residential units only. 9 (B) Mixed-use developments consisting of residential and 10 nonresidential uses =-- --de=ed- tionr-sideittial uses ___ limited to 11 neighbofhood eommereia4 uses tmd to 4te first floor of buildings 12 t1taf afe two or more stories. As used itt this pafagraph, 13 14 stores 4taf ftimish goods tmd sefviees primarily to residents ofthe 15 neighbofhood. with at least two-thirds of the square footage 16 designated for residential use. 17 (C) Transitional housing or supportive housing. 18 (3) "Housing for very low, low-, or moderate -income 19 households" means that either (A) at least 20 percent of the total 20 units shall be sold or rented to lower income households, as defined 21 in Section 50079.5 of the Health and Safety Code, or (B) 100 22 percent of the units shall be sold or rented to persons and families 23 of moderate income as defined in Section 50093 of the Health and 24 Safety Code, or persons and families of middle income, as defined 25 in Section 65008 of this code. Housing units targeted for lower 26 income households shall be made available at a monthly housing 27 cost that does not exceed 30 percent of 60 percent of area median 28 income with adjustments for household size made in accordance 29 with the adjustment factors on which the lower income eligibility 30 limits are based. Housing units targeted for persons and families 31 of moderate income shall be made available at a monthly housing 32 cost that does not exceed 30 percent of 100 percent of area median 33 income with adjustments for household size made in accordance 34 with the adjustment factors on which the moderate -income 35 eligibility limits are based. 36 (4) "Area median income" means area median income as 37 periodically established by the Department of Housing and 38 Community Development pursuant to Section 50093 of the Health 39 and Safety Code. The developer shall provide sufficient legal 40 commitments to ensure continued availability of units for very low 92 5.a Packet Pg. 72 —25— SB 167 1 or low-income households in accordance with the provisions of 2 this subdivision for 30 years. 3 (5) "Disapprove the housing development project" includes any 4 instance in which a local agency does either of the following: 5 (A) Votes on a proposed housing development project 6 application and the application is disapproved. disapproved, 7 including any required land use approvals or entitlements 8 necessary for the issuance of a building permit. 9 (B) Fails to comply with the time periods specified in 10 subdivision (a) of Section 65950. An extension of time pursuant 11 to Article 5 (commencing with Section 65950) shall be deemed to 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 be an extension of time pursuant to this paragraph. (i) If any city, county, or city and county denies approval or imposes -gross conditions, including design changes, __a___.:_._ of allowable ll____L,_ densities __ lower density, or a reduction of the percentage of a lot that may be occupied by a building or structure under the applicable planning and zoning in force at the time the application is deemed complete pursuant to Section 65943, that have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate -income households, and the denial of the development or the imposition of -�� conditions on the development is the subject of a court action which challenges the denial, denial or the imposition of conditions, then the burden of proof shall be on the local legislative body to show that its decision is consistent with the findings as described in subdivision (d) and that the findings are supported bysubstaittial a preponderance of the evidence in the record. For purposes of this section, "lower density" includes any conditions that have the same effect or impact on the ability of the project to provide housing. 0) (1) When a proposed housing development project complies with applicable, objective generals plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the housing development project's application is determined to be complete, but the local agency proposes to disapprove the project or tom the impose a condition that the project be developed at a lower density, the local agency shall base its decision regarding the proposed housing development project upon written findings 92 5.a Packet Pg. 73 SB 167 —26- 1 supported bysubstatitial a preponderance of the evidence on the 2 record that both of the following conditions exist: 3 ( I-) 4 (A) The housing development project would have a specific, 5 adverse impact upon the public health or safety unless the project 6 is disapproved or approved upon the condition that the project be 7 developed at a lower density. As used in this paragraph, a "specific, 8 adverse impact' means a significant, quantifiable, direct, and 9 unavoidable impact, based on objective, identified written public 10 health or safety standards, policies, or conditions as they existed 11 on the date the application was deemed complete. 12 (2) 13 (B) There is no feasible method to satisfactorily mitigate or 14 avoid the adverse impact identified pursuant to paragraph (1), other 15 than the disapproval of the housing development project or the 16 approval of the project upon the condition that it be developed at 17 a lower density. 18 (2) (A) If the local agency considers a proposed housing 19 development project to be inconsistent, not in compliance, or not 20 in conformity with an applicable plan, program, policy, ordinance, 21 standard, requirement, or other similar provision as specified in 22 this subdivision, it shall provide the applicant with written 23 documentation identifying the provision or provisions, and an 24 explanation of the reason or reasons it considers the housing 25 development to be inconsistent, not in compliance, or not in 26 conformity as follows: 27 (i) Within 30 days ofthe date that the application for the housing 28 development project is determined to be complete, if the housing 29 development project contains 150 or fewer housing units. 30 (ii) Within 60 days of the date that the application for the 31 housing development project is determined to be complete, if the 32 housing development project contains more than 150 units. 33 (B) If the local agency fails to provide the required 34 documentation pursuant to subparagraph (A), the housing 35 development project shall be deemed consistent, compliant, and 36 in conformity with the applicable plan, program, policy, ordinance, 37 standard, requirement, or other similar provision. 38 (3) For purposes of this section, the receipt of a density bonus 39 pursuant to Section 65915 shall not constitute a valid basis on 40 which to find a proposed housing development project is 92 5.a Packet Pg. 74 —27— SB 167 1 inconsistent, not in compliance, or not in conformity, with an 2 applicable plan, program, policy, ordinance, standard, 3 requirement, or other similar provision specified in this 4 subdivision. 5 (4) For purposes of this section, "lower density" includes any 6 conditions that have the same effect or impact on the ability ofthe 7 project to provide housing. 8 (k) (1) (A) The applicant, a person who would be eligible to 9 apply for residency in the development or emergency shelter, or 10 a housing organization may bring an action to enforce this section. 11 If, in any action brought to enforce this section, a court finds that 12 either (i) the local ageney agency, in violation of subdivision (d), 13 disapproved a housing development project or conditioned its 14 approval in a manner rendering it infeasible for the development 15 of an emergency shelter, or housing for very low, low-, or 16 moderate -income households, including farmworker housing, 17 without making the findings required by this section or without 18 making --est findings supported by -tea a 19 preponderance ofthe evidence, or (ii) the local agency, in violation 20 of subdivision O, disapproved a housing development project 21 complying with applicable, objective general plan and zoning 22 standards and criteria, or imposed a condition that the project be 23 developed at a lower density, without making the findings required 24 by this section or without making findings supported by a 25 preponderance of the evidence, the court shall issue an order or 26 judgment compelling compliance with this section within 60 days, 27 including, but not limited to, an order that the local agency take 28 action on the housing development project or emergency shelter. 29 The court may issue an order or judgment directing the local 30 agency to approve the housing development project or emergency 31 shelter if the court finds that the local agency acted in bad faith 32 when it disapproved or conditionally approved the housing 33 development or emergency shelter in violation of this section. The 34 court shall retain jurisdiction to ensure that its order or judgment 35 is carried out and shall award reasonable attorney's fees and costs 36 of suit to the plaintiff or petitionef who proposed the hottsin 37 developmeitt or emergettey sheltef, petitioner, except under 38 extraordinary circumstances in which the courtfinds that awarding 39 fees would not further the purposes of this section. if the eourt 40 determines thaf its order or judgment has not beett eaffied out 92 5.a Packet Pg. 75 SB 167 —28- 1 within 60 days, the For purposes of this section, "lower density» 2 includes conditions that have the same effect or impact on the 3 ability of the project to provide housing. 4 (B) (i) Upon a determination that the local agency has failed 5 to comply with the order or judgment compelling compliance with 6 this section within 60 days issued pursuant to subparagraph (A), 7 the court shall impose fines on a local agency that has violated 8 this section and require the local agency to deposit any fine levied 9 pursuant to this subdivision into a local housing trust fund. The 10 local agency may elect to instead deposit the fine into the Building 11 Homes and Jobs Fund, if Senate Bill 2 of the 2017-18 Regular 12 Session is enacted, or otherwise in the Housing Rehabilitation 13 Loan Fund. Thefine shall be in a minimum amount often thousand 14 dollars ($10,000) per housing unit in the housing development 15 project on the date the application was deemed complete pursuant 16 to Section 65943. In determining the amount offine to impose, the 17 court shall consider the local agency's progress in attaining its 18 target allocation ofthe regional housing need pursuant to Section 19 65584 and any prior violations of this section. Fines shall not be 20 paid out of funds already dedicated to affordable housing, 21 including, but not limited to, Low and Moderate Income Housing 22 Asset Funds, funds dedicated to housing for very low, low-, and 23 moderate -income households, and federal HOME Investment 24 Partnerships Program and Community Development Block Grant 25 Program funds. The local agency shall commit and expend the 26 money in the local housing trust fund within five years for the sole 27 purpose offinancing newly constructed housing units affordable 28 to extremely low, very low, or low-income households. After five 29 years, if the funds have not been expended, the money shall revert 30 to the state and be deposited in the Building Homes and Jobs Fund, 31 if Senate Bill 2 of the 2017-18 Regular Session is enacted, or 32 otherwise in the Housing Rehabilitation Loan Fund, for the sole 33 purpose offinancing newly constructed housing units affordable 34 to extremely low, very low, or low-income households. 35 (ii) If any money derived from a fine imposed pursuant to this 36 subparagraph is deposited in the Housing Rehabilitation Loan 37 Fund, then, notwithstanding Section 50661 ofthe Health and Safety 38 Code, that money shall be available only upon appropriation by 39 the Legislature. 92 5.a Packet Pg. 76 —29— SB 167 1 (C) If the court determines that its order or judgment has not 2 been carried out within 60 days, the court may issue further orders 3 as provided by law to ensure that the purposes and policies of this 4 section are fulfilled, including, but not limited to, an order to vacate 5 the decision of the local ageney, agency and to approve the housing 6 developmentproject, in which case the application for the housing 7 development project, as_.� proposed by the applicant at 8 the time the local agency took the initial action determined to be 9 in violation of this section, along with any standard conditions 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 determined by the court to be generally imposed by the local agency on similar projects, shall be deemed to be approved unless the applicant consents to a different decision or action by the local agency. (2) For purposes of this subdivision, "housing organization" means atrade or industry group whose local members are primarily engaged in the construction or management of housing units or a nonprofit organization whose mission includes providing or advocating for increased access to housing for low-income households and have filed written or oral comments with the local agency prior to action on the housing development project. A housing organization may only file an action pursuant to this section to challenge the disapproval of a housing development by a local agency. A housing organization shall be entitled to reasonable attorney's fees and costs if it is the prevailing party in an action to enforce this section. (1) If the court finds that the local agency (1) acted in bad faith when it disapproved or conditionally approved the housing development or emergency shelter in violation of this section and (2) failed to carry out the court's order or judgment within 60 days as described in subdivision (k), the court, in addition to any other remedies provided by this section, may impose fines upott the loettl eommit the mottey itt the tmst ftind within five years for the sole purpose of fitianeing newly eonstrueted hottsing units affordable shall multiply the fine determined pursuant to subparagraph (B) of 92 5.a Packet Pg. 77 SB 167 —30- 1 paragraph (1) of subdivision (k) by a factor of five. For purposes 2 of this section, "bad faith"-' -� includes, but is not limited 3 to, an action that is frivolous or otherwise entirely without merit. 4 (m) Any action brought to enforce the provisions of this section 5 shall be brought pursuant to Section 1094.5 of the Code of Civil 6 Procedure, and the local agency shall prepare and certify the record 7 of proceedings in accordance with subdivision (c) of Section 1094.6 8 of the Code of Civil Procedure no later than 30 days after the 9 petition is served, provided thatthe cost of preparation of the record 10 shall be borne by the local-agenet'- agency, unless the petitioner 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 elects to prepare the record as provided in subdivision (n) of this section. A petition to enforce the provisions of this section shall be filed and served no later than 90 days from the later of (1) the effective date ofa decision ofthe local agency imposing conditions on, disapproving, or any other final action on a housing development project or (2) the expiration of the time periods specified in subparagraph (B) ofparagraph (5) of subdivision (h). Upon entry of the trial court's order, a party may, in order to obtain appellate review of the order, file a petition within 20 days after service upon it of a written notice of the entry of the order, or within such further time not exceeding an additional 20 days as the trial court may for good cause allow. allow, or may appeal the judgment or order of the trial court under Section 904.1 of the Code of Civil Procedure. If the local agency appeals the judgment of the trial court, the local agency shall post a bond, in an amount to be determined by the court, to the benefit of the plaintiff if the plaintiff is the project applicant. (n) In any action, the record of the proceedings before the local agency shall be filed as expeditiously as possible and, notwithstanding Section 1094.6 of the Code of Civil Procedure or subdivision (m) of this section, all or part of the record may be prepared (1) by the petitioner with the petition or petitioner's points and authorities, (2) by the respondent with respondent's points and authorities, (3) after payment of costs by the petitioner, or (4) as otherwise directed by the court. If the expense of preparing the record has been borne by the petitioner and the petitioner is the prevailing party, the expense shall be taxable as costs. (o) This section shall be known, and may be cited, as the Housing Accountability Act. 92 5.a Packet Pg. 78 1 2 3 4 5 6 7 8 9 10 11 12 13 14 —31— SB 167 SEC. 2. Section 1.5 of this bill incorporates amendments to Section 65589.5 of the Government Code proposed by both this bill and Assembly Bill 1515. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 65589.5 of the Government Code, and (3) this bill is enacted after -Assembly Bill 1515, in which case Section I of this bill shall not become operative. SEC. 3. No reimbursement is required by this act pursuant to Section 6 ofArticle=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 ofservice mandated by this act, within the meaning of Section 17556 of the Government Code. 0 92 5.a Packet Pg. 79