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HomeMy WebLinkAbout2018-05-22 - AGENDA REPORTS - SENATE BILL 828 (2)O Agenda Item: 3 CITY OF SANTA CLARITA ' AGENDA REPORT CONSENT CALENDAR t, CITY MANAGER APPROVAL: �1 DATE: May 22, 2018 SUBJECT: STATE LEGISLATION: SENATE BILL 828 DEPARTMENT: City Manager's Office PRESENTER: Masis Hagobian RECOMMENDED ACTION City Council adopt the Legislative Committee's recommendation to oppose Senate Bill 828 and transmit position statements to Senator Scott Wiener, Santa Clarita's state legislative delegation, appropriate legislative committees, Governor Brown, and the League of California Cities. BACKGROUND Authored by Senator Scott Wiener (D -I I -San Francisco), Senate Bill 828 makes changes to the Regional Housing Needs Assessment (RHNA). This bill is sponsored by the Bay Area Council, a bay area business and public policy advocacy group, and co-sponsored by Silicon Valley Leadership Group, a Silicon Valley public policy trade association. The RHNA is mandated by state housing law as part of a periodic process of updating local housing elements of General Plans. 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. The original intent and use of the RHNA is to require local jurisdictions to plan for and zone adequate residential sites to accommodate for population and household growth. However, this bill treats the RHNA as a production target. As local jurisdictions are not in the business of building homes, this bill does not improve the development of all levels of housing, including affordable housing, and proposes to make detrimental changes to the state housing law. The following are specific provisions included in Senate Bill 828: Inventory of Land The RHNA requires cities and counties to have an inventory of land that can be developed for Page 1 Packet Pg. 23 housing within a specified planning period and that is sufficient to provide for a city's or county's share of the regional housing need. Senate Bill 828 would require cities and counties to have an inventory of land that would accommodate 125 percent of a city's or county's share of the RHNA for each income level. This bill would also require that 100 percent of the city's or county's share of the RHNA be made available for multifamily housing. Roll Over Senate Bill 828 would require the Department of Housing and Community Development to roll over any unmet housing allocations included in a local jurisdiction's previous RHNA cycle to the local jurisdictions next RHNA cycle. Methodology Southern California Association of Governments (SLAG) is the state recognized agency responsible for developing RHNA within the six -county SCAG region. Senate Bill 828 would revise the RHNA methodology used by regional planning agencies related to the distribution of existing and projected housing needs within cities and counties, including prohibiting regional planning agencies from considering prior underproduction of housing in order to inform housing allocations or to justify a lower allocation for a local jurisdiction. Audit Senate Bill 828 would require the Department of Housing and Community Development to complete a comprehensive audit of unmet housing need for each region by January 1, 2020. Senate Bill 828 was introduced on January 3, 2018, and passed the Senate Committee on Transportation and Housing (10-0-3) on April 24, 2018. The bill was placed on the Suspense File by the Senate Committee on Appropriations (7-0-0) on May 14, 2018. The City Council Legislative Committee met on May 8, 2018, and recommends that the City Council adopt an "oppose" position for Senate Bill 828. ALTERNATIVE ACTION 1. Adopt a "neutral" position on Senate Bill 828 2. Adopt a "support" position on Senate Bill 828 3. Take no action on Senate Bill 828 4. Refer Senate Bill 828 back to the Legislative Committee 5. Other action, as determined by the City Council O Page 2 Packet Pg. 24 FISCAL IMPACT The resources required to implement the recommended action are contained within the City of Santa Clarita's adopted FY 2017-18 budget. ATTACHMENTS SB 828 - Bill Text O Page 3 Packet Pg. 25 AMENDED IN SENATE APRIL 26, 2018 AMENDED IN SENATE APRIL 16, 2018 AMENDED IN SENATE MARCH 14, 2018 SENATE BILL WiN: .,] Introduced by Senator Wiener January 3, 2018 An act to amend Sections 65583, 65584, 65584.01, and 65584.04 of, and to add Section 65584.01.1 to, the Government Code, relating to land use. LEGISLATIVE COUNSEL'S DIGEST SB 828, as amended, Wiener. Land use: housing element. (1) The Planning and Zoning Law requires a city or county to adopt a general plan for its jurisdiction that contains certain mandatory elements, including a housing element. Existing law requires a planning agency to submit a draft of the housing element to the Department of Housing and Community Development for review, as specified. Existing law requires the general plafl. housing element to contain an inventory of land suitable and available for residential development, and to contain a program that sets forth a schedule of actions during the planning period that the city or county will undertake to implement policies and to achieve the goals and objectives of the housing element. Existing law requires the program to identify actions that will be taken during the period in order to accommodate that portion of the city's or county's share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory of land, described above, without rezoning on those sites. 96 3.a Packet Pg. 26 SB 828 —2— This 2— This bill would, instead, require the program to identify actions that will be taken to accommodate 200046 125% of the city's or county's share of the regional housing need that could not be accommodated on the sites identified in the inventory of land without rezoning of those sites. The bill would also require those actions be taken to make at least 100% of the city's or county's share so identified be available for multifamily housing located within developed areas. (2) Existing law requires the department, in consultation with each council of governments, to determine the existing and projected need for housing for each region in accordance with specified requirements. Existing law requires the appropriate council of governments, or the department for a city and county that does not have a council of governments, to adopt a final regional housing need plan that allocates a share of the regional housing need to each city, county, or city and county, as specified. This bill would prohibit the final allocation plan from considering the prior underproduction of housing from the previous cycle, as calculated, to justify a lower allocation for a particular local government. The bill would also require the final regional housing need plan to demonstrate efforts to reverse racial and wealth disparities throughout a region, including by demonstrating a high housing allocation for households located within particular communities, efforts to alleviate median market Petit that exeeeds 304 , and a high housing allocation for all income categories. (3) Existing law requires, at least 26 months prior to the scheduled revision of the housing element and developing the existing and projected housing need for a region, the department to meet and consult with the council of governments regarding the assumptions and methodology to be used by the department to determine the region's housing needs. Existing law requires the council of governments to provide data assumptions from the council's projections, including, if available, specified data for the region, including, data relating to vacancy rates for healthy housing market functioning and regional mobility. This bill would define the vacancy rate for a healthy housing market for those purposes to be considered no less than 6% of both rental and ownership housing, as provided. The bill would also require the council of governments to include data on the percentage of households paying more than 30% of their income on housing. 96 3.a Packet Pg. 27 — 3 — SB 828 (4) Existing law requires the department, after consultation with the council of governments, to determine a region's existing and projected housing need based upon assumptions and methodology prepared pursuant to a specified process. Existing law authorizes a council of governments to file an objection on the department's determination within 30 days following notice of the department's determination. The department is required to consider that objection within 45 days of receiving it and make a final written determination of the region's existing and projected housing need. The bill would require the department, after making the final written determination described above, to add the difference between the previous cycle's housing allocation and the reported housing production based on an annual production report submitted by the local government. The bill would provide any determination of that nature is unappealable. This bill would also require the department, before the next regional housing needs assessment for each region, to address the historic underproduction of housing in California, particularly in coastal and metropolitan communities, by completing a comprehensive audit of unmet housing needs for each region by January 1, 2020, and to add the results of this audit to each region's next regional housing assessment following January 1, 2020. (5) By expanding the duties of local governments relating to the housing element program and the final regional housing need plan, this bill would impose a state -mandated local program. (6) 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: yes. State -mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. Section 65583 of the Government Code is 2 amended to read: 3 65583. The housing element shall consist of an identification 4 and analysis of existing and projected housing needs and a 5 statement of goals, policies, quantified objectives, financial 6 resources, and scheduled programs for the preservation, 96 3.a Packet Pg. 28 SB 828 —4— I 4- 1 improvement, and development of housing. The housing element 2 shall identify adequate sites for housing, including rental housing, 3 factory -built housing, mobilehomes, and emergency shelters, and 4 shall make adequate provision for the existing and projected needs 5 of all economic segments of the community. The element shall 6 contain all of the following: 7 (a) An assessment of housing needs and an inventory of 8 resources and constraints relevant to the meeting of these needs. 9 The assessment and inventory shall include all of the following: 10 (1) An analysis of population and employment trends and 11 documentation of projections and a quantification of the locality's 12 existing and projected housing needs for all income levels, 13 including extremely low income households, as defined in 14 subdivision (b) of Section 50105 and Section 50106 of the Health 15 and Safety Code. These existing and projected needs shall include 16 the locality's share of the regional housing need in accordance 17 with Section 65584. Local agencies shall calculate the subset of 18 very low income households allotted under Section 65584 that 19 qualify as extremely low income households. The local agency 20 may either use available census data to calculate the percentage 21 of very low income households that qualify as extremely low 22 income households or presume that 50 percent of the very low 23 income households qualify as extremely low income households. 24 The number of extremely low income households and very low 25 income households shall equal the jurisdiction's allocation of very 26 low income households pursuant to Section 65584. 27 (2) An analysis and documentation of household characteristics, 28 including level of payment compared to ability to pay, housing 29 characteristics, including overcrowding, and housing stock 30 condition. 31 (3) An inventory of land suitable and available for residential 32 development, including vacant sites and sites having realistic and 33 demonstrated potential for redevelopment during the planning 34 period to meet the locality's housing need for a designated income 35 level, and an analysis of the relationship of zoning and public 36 facilities and services to these sites. 37 (4) (A) The identification of a zone or zones where emergency 38 shelters are allowed as a permitted use without a conditional use 39 or other discretionary permit. The identified zone or zones shall 40 include sufficient capacity to accommodate the need for emergency 96 3.a Packet Pg. 29 — 5 — SB 828 I shelter identified in paragraph (7), except that each local 2 government shall identify a zone or zones that can accommodate 3 at least one year-round emergency shelter. If the local government 4 cannot identify a zone or zones with sufficient capacity, the local 5 government shall include a program to amend its zoning ordinance 6 to meet the requirements of this paragraph within one year of the 7 adoption of the housing element. The local government may 8 identify additional zones where emergency shelters are permitted 9 with a conditional use permit. The local government shall also 10 demonstrate that existing or proposed permit processing, 11 development, and management standards are objective and 12 encourage and facilitate the development of, or conversion to, 13 emergency shelters. Emergency shelters may only be subject to 14 those development and management standards that apply to 15 residential or commercial development within the same zone except 16 that a local government may apply written, objective standards 17 that include all of the following: 18 (i) The maximum number of beds or persons permitted to be 19 served nightly by the facility. 20 (ii) Off-street parking based upon demonstrated need, provided 21 that the standards do not require more parking for emergency 22 shelters than for other residential or commercial uses within the 23 same zone. 24 (iii) The size and location of exterior and interior onsite waiting 25 and client intake areas. 26 (iv) The provision of onsite management. 27 (v) The proximity to other emergency shelters, provided that 28 emergency shelters are not required to be more than 300 feet apart. 29 (vi) The length of stay. 30 (vii) Lighting. 31 (viii) Security during hours that the emergency shelter is in 32 operation. 33 (B) The permit processing, development, and management 34 standards applied under this paragraph shall not be deemed to be 35 discretionary acts within the meaning of the California 36 Environmental Quality Act (Division 13 (commencing with Section 37 21000) of the Public Resources Code). 38 (C) A local government that can demonstrate to the satisfaction 39 of the department the existence of one or more emergency shelters 40 either within its jurisdiction or pursuant to a multijurisdictional 96 3.a Packet Pg. 30 SB 828 1 agreement that can accommodate that jurisdiction's need for 2 emergency shelter identified in paragraph (7) may comply with 3 the zoning requirements of subparagraph (A) by identifying a zone 4 or zones where new emergency shelters are allowed with a 5 conditional use permit. 6 (D) A local government with an existing ordinance or ordinances 7 that comply with this paragraph shall not be required to take 8 additional action to identify zones for emergency shelters. The 9 housing element must only describe how existing ordinances, 10 policies, and standards are consistent with the requirements of this 11 paragraph. 12 (5) An analysis of potential and actual governmental constraints 13 upon the maintenance, improvement, or development of housing 14 for all income levels, including the types of housing identified in 15 paragraph (1) of subdivision (c), and for persons with disabilities 16 as identified in the analysis pursuant to paragraph (7), including 17 land use controls, building codes and their enforcement, site 18 improvements, fees and other exactions required of developers, 19 local processing and permit procedures, and any locally adopted 20 ordinances that directly impact the cost and supply of residential 21 development. The analysis shall also demonstrate local efforts to 22 remove governmental constraints that hinder the locality from 23 meeting its share of the regional housing need in accordance with 24 Section 65584 and from meeting the need for housing for persons 25 with disabilities, supportive housing, transitional housing, and 26 emergency shelters identified pursuant to paragraph (7). 27 Transitional housing and supportive housing shall be considered 28 a residential use of property, and shall be subject only to those 29 restrictions that apply to other residential dwellings of the same 30 type in the same zone. 31 (6) An analysis of potential and actual nongovernmental 32 constraints upon the maintenance, improvement, or development 33 of housing for all income levels, including the availability of 34 financing, the price of land, the cost of construction, the requests 35 to develop housing at densities below those anticipated in the 36 analysis required by subdivision (c) of Section 65583.2, and the 37 length of time between receiving approval for a housing 38 development and submittal of an application for building permits 39 for that housing development that hinder the construction of a 40 locality's share of the regional housing need in accordance with 96 3.a Packet Pg. 31 — 7 — SB 828 1 Section 65584. The analysis shall also demonstrate local efforts 2 to remove nongovernmental constraints that create a gap between 3 the locality's planning for the development of housing for all 4 income levels and the construction of that housing. 5 (7) An analysis of any special housing needs, such as those of 6 the elderly; persons with disabilities, including a developmental 7 disability, as defined in Section 4512 of the Welfare and 8 Institutions Code; large families; farmworkers; families with female 9 heads of households; and families and persons in need of 10 emergency shelter. The need for emergency shelter shall be 11 assessed based on annual and seasonal need. The need for 12 emergency shelter may be reduced by the number of supportive 13 housing units that are identified in an adopted 10 -year plan to end 14 chronic homelessness and that are either vacant or for which 15 funding has been identified to allow construction during the 16 planning period. An analysis of special housing needs by a city or 17 county may include an analysis of the need for frequent user 18 coordinated care housing services. 19 (8) An analysis of opportunities for energy conservation with 20 respect to residential development. Cities and counties are 21 encouraged to include weatherization and energy efficiency 22 improvements as part of publicly subsidized housing rehabilitation 23 projects. This may include energy efficiency measures that 24 encompass the building envelope, its heating and cooling systems, 25 and its electrical system. 26 (9) An analysis of existing assisted housing developments that 27 are eligible to change from low-income housing uses during the 28 next 10 years due to termination of subsidy contracts, mortgage 29 prepayment, or expiration of restrictions on use. "Assisted housing 30 developments," for the purpose of this section, shall mean 31 multifamily rental housing that receives governmental assistance 32 under federal programs listed in subdivision (a) of Section 33 65863.10, state and local multifamily revenue bond programs, 34 local redevelopment programs, the federal Community 35 Development Block Grant Program, or local in -lieu fees. "Assisted 36 housing developments" shall also include multifamily rental units 37 that were developed pursuant to a local inclusionary housing 38 program or used to qualify for a density bonus pursuant to Section 39 65916. 96 3.a Packet Pg. 32 SB 828 1 (A) The analysis shall include a listing of each development by 2 project name and address, the type of governmental assistance 3 received, the earliest possible date of change from low-income 4 use, and the total number of elderly and nonelderly units that could 5 be lost from the locality's low-income housing stock in each year 6 during the 10 -year period. For purposes of state and federally 7 funded projects, the analysis required by this subparagraph need 8 only contain information available on a statewide basis. 9 (B) The analysis shall estimate the total cost of producing new 10 rental housing that is comparable in size and rent levels, to replace 11 the units that could change from low-income use, and an estimated 12 cost of preserving the assisted housing developments. This cost 13 analysis for replacement housing may be done aggregately for 14 each five-year period and does not have to contain a 15 project -by -project cost estimate. 16 (C) The analysis shall identify public and private nonprofit 17 corporations known to the local government which have legal and 18 managerial capacity to acquire and manage these housing 19 developments. 20 (D) The analysis shall identify and consider the use of all federal, 21 state, and local financing and subsidy programs which can be used 22 to preserve, for lower income households, the assisted housing 23 developments, identified in this paragraph, including, but not 24 limited to, federal Community Development Block Grant Program 25 funds, tax increment funds received by a redevelopment agency 26 of the community, and administrative fees received by a housing 27 authority operating within the community. In considering the use 28 of these financing and subsidy programs, the analysis shall identify 29 the amounts of funds under each available program which have 30 not been legally obligated for other purposes and which could be 31 available for use in preserving assisted housing developments. 32 (b) (1) A statement of the community's goals, quantified 33 objectives, and policies relative to the maintenance, preservation, 34 improvement, and development of housing. 35 (2) It is recognized that the total housing needs identified 36 pursuant to subdivision (a) may exceed available resources and 37 the community's ability to satisfy this need within the content of 38 the general plan requirements outlined in Article 5 (commencing 39 with Section 65300). Under these circumstances, the quantified 40 objectives need not be identical to the total housing needs. The 96 3.a Packet Pg. 33 — 9 — SB 828 1 quantified objectives shall establish the maximum number of 2 housing units by income category, including extremely low income, 3 that can be constructed, rehabilitated, and conserved over a 4 five-year time period. 5 (c) A program which sets forth a schedule of actions during the 6 planning period, each with a timeline for implementation, which 7 may recognize that certain programs are ongoing, such that there 8 will be beneficial impacts of the programs within the planning 9 period, that the local government is undertaking or intends to 10 undertake to implement the policies and achieve the goals and 11 objectives of the housing element through the administration of 12 land use and development controls, the provision of regulatory 13 concessions and incentives, the utilization of appropriate federal 14 and state financing and subsidy programs when available, and the 15 utilization of moneys in a low- and moderate -income housing fund 16 of an agency if the locality has established a redevelopment project 17 area pursuant to the Community Redevelopment Law (Division 18 24 (commencing with Section 33000) of the Health and Safety 19 Code). In order to make adequate provision for the housing needs 20 of all economic segments of the community, the program shall do 21 all of the following: 22 (1) Identify actions that will be taken to make sites available 23 during the planning period with appropriate zoning and 24 development standards and with services and facilities to 25 accommodate -200 125 percent of the city's or county's share of 26 the regional housing need for each income level that could not be 27 accommodated on sites identified in the inventory completed 28 pursuant to paragraph (3) of subdivision (a) without rezoning, to 29 comply with the requirements of Section 65584.09, and make at 30 least 100 percent of the city's or county's share identified above 31 available for multifamily housing located within developed areas. 32 Sites shall be identified as needed to facilitate and encourage the 33 development of a variety of types of housing for all income levels, 34 including multifamily rental housing, factory -built housing, 35 mobilehomes, housing for agricultural employees, supportive 36 housing, single -room occupancy units, emergency shelters, and 37 transitional housing. 38 (A) Where the inventory of sites, pursuant to paragraph (3) of 39 subdivision (a), does not identify adequate sites to accommodate 40 the need for groups of all household income levels pursuant to 96 3.a Packet Pg. 34 SB 828 —10 — 1 Section 65584, rezoning of those sites, including adoption of 2 minimum density and development standards, for jurisdictions 3 with an eight-year housing element planning period pursuant to 4 Section 65588, shall be completed no later than three years after 5 either the date the housing element is adopted pursuant to 6 subdivision (f) of Section 65585 or the date that is 90 days after 7 receipt of comments from the department pursuant to subdivision 8 (b) of Section 65585, whichever is earlier, unless the deadline is 9 extended pursuant to subdivision (f). Notwithstanding the 10 foregoing, for a local government that fails to adopt a housing 11 element within 120 days of the statutory deadline in Section 65588 12 for adoption of the housing element, rezoning of those sites, 13 including adoption of minimum density and development standards, 14 shall be completed no later than three years and 120 days from the 15 statutory deadline in Section 65588 for adoption of the housing 16 element. 17 (B) Where the inventory of sites, pursuant to paragraph (3) of 18 subdivision (a), does not identify adequate sites to accommodate 19 the need for groups of all household income levels pursuant to 20 Section 65584, the program shall identify sites that can be 21 developed for housing within the planning period pursuant to 22 subdivision (h) of Section 65583.2. The identification of sites shall 23 include all components specified in Section 65583.2. 24 (C) Where the inventory of sites pursuant to paragraph (3) of 25 subdivision (a) does not identify adequate sites to accommodate 26 the need for farmworker housing, the program shall provide for 27 sufficient sites to meet the need with zoning that permits 28 farmworker housing use by right, including density and 29 development standards that could accommodate and facilitate the 30 feasibility of the development of farmworker housing for low- and 31 very low income households. 32 (2) Assist in the development of adequate housing to meet the 33 needs of extremely low, very low, low-, and moderate -income 34 households. 35 (3) Address and, where appropriate and legally possible, remove 36 governmental and nongovernmental constraints to the maintenance, 37 improvement, and development of housing, including housing for 38 all income levels and housing for persons with disabilities. The 39 program shall remove constraints to, and provide reasonable 96 3.a Packet Pg. 35 —11— SB 828 1 accommodations for housing designed for, intended for occupancy 2 by, or with supportive services for, persons with disabilities. 3 (4) Conserve and improve the condition of the existing 4 affordable housing stock, which may include addressing ways to 5 mitigate the loss of dwelling units demolished by public or private 6 action. 7 (5) Promote housing opportunities for all persons regardless of 8 race, religion, sex, marital status, ancestry, national origin, color, 9 familial status, or disability. 10 (6) Preserve for lower income households the assisted housing 11 developments identified pursuant to paragraph (9) of subdivision 12 (a). The program for preservation of the assisted housing 13 developments shall utilize, to the extent necessary, all available 14 federal, state, and local financing and subsidy programs identified 15 in paragraph (9) of subdivision (a), except where a community has 16 other urgent needs for which alternative funding sources are not 17 available. The program may include strategies that involve local 18 regulation and technical assistance. 19 (7) Include an identification of the agencies and officials 20 responsible for the implementation of the various actions and the 21 means by which consistency will be achieved with other general 22 plan elements and community goals. 23 (8) Include a diligent effort by the local government to achieve 24 public participation of all economic segments of the community 25 in the development of the housing element, and the program shall 26 describe this effort. 27 (d) (1) A local government may satisfy all or part of its 28 requirement to identify a zone or zones suitable for the 29 development of emergency shelters pursuant to paragraph (4) of 30 subdivision (a) by adopting and implementing a multijurisdictional 31 agreement, with a maximum of two other adjacent communities, 32 that requires the participating jurisdictions to develop at least one 33 year-round emergency shelter within two years of the beginning 34 of the planning period. 35 (2) The agreement shall allocate a portion of the new shelter 36 capacity to each jurisdiction as credit toward its emergency shelter 37 need, and each jurisdiction shall describe how the capacity was 38 allocated as part of its housing element. 39 (3) Each member jurisdiction of a multijurisdictional agreement 40 shall describe in its housing element all of the following: 96 3.a Packet Pg. 36 SB 828 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 —12— (A) How the joint facility will meet the jurisdiction's emergency shelter need. (B) The jurisdiction's contribution to the facility for both the development and ongoing operation and management of the facility. (C) The amount and source of the funding that the jurisdiction contributes to the facility. (4) The aggregate capacity claimed by the participating jurisdictions in their housing elements shall not exceed the actual capacity of the shelter. (e) Except as otherwise provided in this article, amendments to this article that alter the required content of a housing element shall apply to both of the following: (1) A housing element or housing element amendment prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when a city, county, or city and county submits a draft to the department for review pursuant to Section 65585 more than 90 days after the effective date of the amendment to this section. (2) Any housing element or housing element amendment prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when the city, county, or city and county fails to submit the first draft to the department before the due date specified in Section 65588 or 65584.02. (f) The deadline for completing required rezoning pursuant to subparagraph (A) of paragraph (1) of subdivision (c) shall be extended by one year if the local government has completed the rezoning at densities sufficient to accommodate at least 75 percent of the units for low- and very low income households and if the legislative body at the conclusion of a public hearing determines, based upon substantial evidence, that any of the following circumstances exist: (1) The local government has been unable to complete the rezoning because of the action or inaction beyond the control of the local government of any other state, federal, or local agency. (2) The local government is unable to complete the rezoning because of infrastructure deficiencies due to fiscal or regulatory constraints. (3) The local government must undertake a major revision to its general plan in order to accommodate the housing -related 96 3.a Packet Pg. 37 —13 — SB 828 1 policies of a sustainable communities strategy or an alternative 2 planning strategy adopted pursuant to Section 65080. 3 The resolution and the findings shall be transmitted to the 4 department together with a detailed budget and schedule for 5 preparation and adoption of the required rezonings, including plans 6 for citizen participation and expected interim action. The schedule 7 shall provide for adoption of the required rezoning within one year 8 of the adoption of the resolution. 9 (g) (1) If a local government fails to complete the rezoning by 10 the deadline provided in subparagraph (A) of paragraph (1) of 11 subdivision (c), as it may be extended pursuant to subdivision (f), 12 except as provided in paragraph (2), a local government may not 13 disapprove a housing development project, nor require a 14 conditional use permit, planned unit development permit, or other 15 locally imposed discretionary permit, or impose a condition that 16 would render the project infeasible, if the housing development 17 project (A) is proposed to be located on a site required to be 18 rezoned pursuant to the program action required by that 19 subparagraph and (B) complies with applicable, objective general 20 plan and zoning standards and criteria, including design review 21 standards, described in the program action required by that 22 subparagraph. Any subdivision of sites shall be subject to the 23 Subdivision Map Act (Division 2 (commencing with Section 24 66410)). Design review shall not constitute a "project" for purposes 25 of Division 13 (commencing with Section 21000) of the Public 26 Resources Code. 27 (2) A local government may disapprove a housing development 28 described in paragraph (1) if it makes written findings supported 29 by substantial evidence on the record that both of the following 30 conditions exist: 31 (A) The housing development project would have a specific, 32 adverse impact upon the public health or safety unless the project 33 is disapproved or approved upon the condition that the project be 34 developed at a lower density. As used in this paragraph, a "specific, 35 adverse impact" means a significant, quantifiable, direct, and 36 unavoidable impact, based on objective, identified written public 37 health or safety standards, policies, or conditions as they existed 38 on the date the application was deemed complete. 39 (B) There is no feasible method to satisfactorily mitigate or 40 avoid the adverse impact identified pursuant to paragraph (1), other 96 0 Packet Pg. 38 SB 828 —14— I 14- 1 than the disapproval of the housing development project or the 2 approval of the project upon the condition that it be developed at 3 a lower density. 4 (3) The applicant or any interested person may bring an action 5 to enforce this subdivision. If a court finds that the local agency 6 disapproved a project or conditioned its approval in violation of 7 this subdivision, the court shall issue an order or judgment 8 compelling compliance within 60 days. The court shall retain 9 jurisdiction to ensure that its order or judgment is carried out. If 10 the court determines that its order or judgment has not been carried 11 out within 60 days, the court may issue further orders to ensure 12 that the purposes and policies of this subdivision are fulfilled. In 13 any such action, the city, county, or city and county shall bear the 14 burden of proof. 15 (4) For purposes of this subdivision, "housing development 16 project" means a project to construct residential units for which 17 the project developer provides sufficient legal commitments to the 18 appropriate local agency to ensure the continued availability and 19 use of at least 49 percent of the housing units for very low, low-, 20 and moderate -income households with an affordable housing cost 21 or affordable rent, as defined in Section 50052.5 or 50053 of the 22 Health and Safety Code, respectively, for the period required by 23 the applicable financing. 24 (h) An action to enforce the program actions of the housing 25 element shall be brought pursuant to Section 1085 of the Code of 26 Civil Procedure. 27 SEC. 2. Section 65584 of the Government Code is amended 28 to read: 29 65584. (a) (1) For the fourth and subsequent revisions of the 30 housing element pursuant to Section 65588, the department shall 31 determine the existing and projected need for housing for each 32 region pursuant to this article. For purposes of subdivision (a) of 33 Section 65583, the share of a city or county of the regional housing 34 need shall include that share of the housing need of persons at all 35 income levels within the area significantly affected by the general 36 plan of the city or county. 37 (2) It is the intent of the Legislature that cities, counties, and 38 cities and counties should undertake all necessary actions to 39 encourage, promote, and facilitate the development of housing to 40 accommodate the entire regional housing need, and reasonable 96 3.a Packet Pg. 39 —15 — SB 828 1 actionsshall should be taken by local and regional governments 2 to ensure that future housing production meet, at a minimum, the 3 regional housing need. need established for planning purposes. 4 These actions shall include applicable reforms and incentives in 5 Section 65582.1. 6 (3) The Legislature finds and declares that insufficient housing 7 in job centers hinders the state's environmental quality and runs 8 counter to the state's environmental goals. In particular, when 9 Californians seeking affordable housing are forced to drive longer 10 distances to work, an increased amount of greenhouse gases and 11 other pollutants is released and puts in jeopardy the achievement 12 of the state's climate goals, as established pursuant to Section 13 38566 of the Health and Safety Code, and clean air goals. 14 (b) The department, in consultation with each council of 15 governments, shall determine each region's existing and projected 16 housing need pursuant to Section 65584.01 at least two years prior 17 to the scheduled revision required pursuant to Section 65588. The 18 appropriate council of governments, or for cities and counties 19 without a council of governments, the department, shall adopt a 20 final regional housing need plan that allocates a share of the 21 regional housing need to each city, county, or city and county at 22 least one year prior to the scheduled revision for the region required 23 by Section 65588. The allocation plan prepared by a council of 24 governments shall be prepared pursuant to Sections 65584.04 and 25 65584.05 with the advice of the department. 26 (c) Notwithstanding any other provision of law, the due dates 27 for the determinations of the department or for the council of 28 governments, respectively, regarding the regional housing need 29 may be extended by the department by not more than 60 days if 30 the extension will enable access to more recent critical population 31 or housing data from a pending or recent release of the United 32 States Census Bureau or the Department of Finance. If the due 33 date for the determination of the department or the council of 34 governments is extended for this reason, the department shall 35 extend the corresponding housing element revision deadline 36 pursuant to Section 65588 by not more than 60 days. 37 (d) The regional housing needs allocation plan shall be 38 consistent with all of the following objectives: 39 (1) Increasing the housing supply and the mix of housing types, 40 tenure, and affordability in all cities and counties within the region 96 3.a Packet Pg. 40 SB 828 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 in an equitable manner receiving an allocation households. —16— which shall result in each jurisdiction of units for low- and very low income (2) Promoting infill development and socioeconomic equity, the protection of environmental and agricultural resources, and the encouragement of efficient development patterns. (3) Promoting an improved intraregional relationship between jobs and housing. (4) Allocating a lower proportion of housing need to an income category when a jurisdiction already has a disproportionately high share of households in that income category, as compared to the countywide distribution of households in that category from the most recent decennial United States census. (e) For purposes of this section, "household income levels" are as determined by the department as of the most recent decennial census pursuant to the following code sections: (1) Very low incomes as defined by Section 50105 of the Health and Safety Code. (2) Lower incomes, as defined by Section 50079.5 of the Health and Safety Code. (3) Moderate incomes, as defined by Section 50093 of the Health and Safety Code. (4) Above moderate incomes are those exceeding the moderate -income level of Section 50093 of the Health and Safety Code. (f) Notwithstanding any other provision of law, determinations made by the department, a council of governments, or a city or county pursuant to this section or Section 65584.01, 65584.02, 65584.03, 65584.04, 65584.05, 65584.06, 65584.07, or 65584.08 are exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). SEC. 3. Section 65584.01 of the Government Code is amended to read: 65584.01. For the fourth and subsequent revision of the housing element pursuant to Section 65588, the department, in consultation with each council of governments, where applicable, shall determine the existing and projected need for housing for each region in the following manner: 96 3.a Packet Pg. 41 —17 — SB 828 1 (a) The department's determination shall be based upon 2 population projections produced by the Department of Finance 3 and regional population forecasts used in preparing regional 4 transportation plans, in consultation with each council of 5 governments. If the total regional population forecast for the 6 projection year, developed by the council of governments and used 7 for the preparation of the regional transportation plan, is within a 8 range of 1.5 percent of the total regional population forecast for 9 the projection year by the Department of Finance, then the 10 population forecast developed by the council of governments shall 11 be the basis from which the department determines the existing 12 and projected need for housing in the region. If the difference 13 between the total population projected by the council of 14 governments and the total population projected for the region by 15 the Department of Finance is greater than 1.5 percent, then the 16 department and the council of governments shall meet to discuss 17 variances in methodology used for population projections and seek 18 agreement on a population projection for the region to be used as 19 a basis for determining the existing and projected housing need 20 for the region. If no agreement is reached, then the population 21 projection for the region shall be the population projection for the 22 region prepared by the Department of Finance as may be modified 23 by the department as a result of discussions with the council of 24 governments. 25 (b) (1) At least 26 months prior to the scheduled revision 26 pursuant to Section 65588 and prior to developing the existing and 27 projected housing need for a region, the department shall meet and 28 consult with the council of governments regarding the assumptions 29 and methodology to be used by the department to determine the 30 region's housing needs. The council of governments shall provide 31 data assumptions from the council's projections, including, if 32 available, the following data for the region: 33 (A) Anticipated household growth associated with projected 34 population increases. 35 (B) Household size data and trends in household size. 36 (C) The percentage of renters' households that are overcrowded. 37 For purposes of this subparagraph, the term "overcrowded" means 38 more than one resident per room in each room in a dwelling. 96 3.a Packet Pg. 42 SB 828 —18— I 18- 1 (D) The rate of household formation, or headship rates, based 2 on age, gender, ethnicity, or other established demographic 3 measures. 4 (E) The vacancy rates in existing housing stock, and the vacancy 5 rates for healthy housing market functioning and regional mobility, 6 as well as housing replacement needs. For purposes of this 7 subparagraph, the vacancy rate for a healthy housing market shall 8 be considered no less than 6 percent for both rental and ownership 9 housing, and may be considered higher based on local or regional 10 market conditions. 11 (F) Other characteristics of the composition of the projected 12 population. 13 (G) The relationship between jobs and housing, including any 14 imbalance between jobs and housing. 15 (H) The percentage of households paying more than 30 percent 16 of their income on housing costs. 17 (2) The department may accept or reject the information 18 provided by the council of governments or modify its own 19 assumptions or methodology based on this information. After 20 consultation with the council of governments, the department shall 21 make determinations in writing on the assumptions for each of the 22 factors listed in subparagraphs (A) to (G), inclusive, of paragraph 23 (1) and the methodology it shall use and shall provide these 24 determinations to the council of governments. 25 (c) (1) After consultation with the council of governments, the 26 department shall make a determination of the region's existing 27 and projected housing need based upon the assumptions and 28 methodology determined pursuant to subdivision (b). The region's 29 existing and projected housing need shall reflect the achievement 30 of a feasible balance between jobs and housing within the region 31 using the regional employment projections in the applicable 32 regional transportation plan. Within 30 days following notice of 33 the determination from the department, the council of governments 34 may file an objection to the department's determination of the 35 region's existing and projected housing need with the department. 36 (2) The objection shall be based on and substantiate either of 37 the following: 38 (A) The department failed to base its determination on the 39 population projection for the region established pursuant to 40 subdivision (a), and shall identify the population projection which 96 3.a Packet Pg. 43 —19 — SB 828 1 the council of governments believes should instead be used for the 2 determination and explain the basis for its rationale. 3 (B) The regional housing need determined by the department 4 is not a reasonable application of the methodology and assumptions 5 determined pursuant to subdivision (b). The objection shall include 6 a proposed alternative determination of its regional housing need 7 based upon the determinations made in subdivision (b), including 8 analysis of why the proposed alternative would be a more 9 reasonable application of the methodology and assumptions 10 determined pursuant to subdivision (b). 11 (3) If a council of governments files an objection pursuant to 12 this subdivision and includes with the objection a proposed 13 alternative determination of its regional housing need, it shall also 14 include documentation of its basis for the alternative determination. 15 Within 45 days of receiving an objection filed pursuant to this 16 section, the department shall consider the objection and make a 17 final written determination of the region's existing and projected 18 housing need that includes an explanation of the information upon 19 which the determination was made. 20 (4) After the final written determination is made pursuant to 21 paragraph (3), the department shall add to each income category 22 in each local jurisdiction the difference between the local 23 jurisdiction's allocation from the previous cycle and the reported 24 housing production based on the annual production report 25 submitted pursuant to Section 65400. This shall be considered an 26 unappealable obligation for the local government. 27 SEC. 4. Section 65584.01.1 is added to the Government Code, 28 to read: 29 65584.01.1. The Department of Housing and Community 30 Development, before the next regional housing needs assessment 31 for each region, shall address the historic underproduction of 32 housing in California, particularly in coastal and metropolitan 33 communities, by completing a comprehensive audit of unmet 34 housing need for each region by January 1, 2020. The results of 35 this audit shall be added to each region's next regional housing 36 assessment following January 1, 2020. 37 SEC. 5. Section 65584.04 of the Government Code is amended 38 to read: 39 65584.04. (a) At least two years prior to a scheduled revision 40 required by Section 65588, each council of governments, or 96 3.a Packet Pg. 44 SB 828 —20— I 20- 1 delegate subregion as applicable, shall develop a proposed 2 methodology for distributing the existing and projected regional 3 housing need to cities, counties, and cities and counties within the 4 region or within the subregion, where applicable pursuant to this 5 section. The methodology shall be consistent with the objectives 6 listed in subdivision (d) of Section 65584. 7 (b) (1) No more than six months prior to the development of a 8 proposed methodology for distributing the existing and projected 9 housing need, each council of governments shall survey each of 10 its member jurisdictions to request, at a minimum, information 11 regarding the factors listed in subdivision (d) that will allow the 12 development of a methodology based upon the factors established 13 in subdivision (d). 14 (2) The council of governments shall seek to obtain the 15 information in a manner and format that is comparable throughout 16 the region and utilize readily available data to the extent possible. 17 (3) The information provided by a local government pursuant 18 to this section shall be used, to the extent possible, by the council 19 of governments, or delegate subregion as applicable, as source 20 information for the methodology developed pursuant to this section. 21 The survey shall state that none of the information received may 22 be used as a basis for reducing the total housing need established 23 for the region pursuant to Section 65584.01. 24 (4) If the council of governments fails to conduct a survey 25 pursuant to this subdivision, a city, county, or city and county may 26 submit information related to the items listed in subdivision (d) 27 prior to the public comment period provided for in subdivision 28 (c). 29 (c) Public participation and access shall be required in the 30 development of the methodology and in the process of drafting 31 and adoption of the allocation of the regional housing needs. 32 Participation by organizations other than local jurisdictions and 33 councils of governments shall be solicited in a diligent effort to 34 achieve public participation of all economic segments of the 35 community. The proposed methodology, along with any relevant 36 underlying data and assumptions, and an explanation of how 37 information about local government conditions gathered pursuant 38 to subdivision (b) has been used to develop the proposed 39 methodology, and how each of the factors listed in subdivision (d) 40 is incorporated into the methodology, shall be distributed to all 96 3.a Packet Pg. 45 —21— SB 828 1 cities, counties, any subregions, and members of the public who 2 have made a written request for the proposed methodology. The 3 council of governments, or delegate subregion, as applicable, shall 4 conduct at least one public hearing to receive oral and written 5 comments on the proposed methodology. 6 (d) To the extent that sufficient data is available from local 7 governments pursuant to subdivision (b) or other sources, each 8 council of governments, or delegate subregion as applicable, shall 9 include the following factors to develop the methodology that 10 allocates regional housing needs: 11 (1) Each member jurisdiction's existing and projected jobs and 12 housing relationship. 13 (2) The opportunities and constraints to development of 14 additional housing in each member jurisdiction, including all of 15 the following: 16 (A) Lack of capacity for sewer or water service due to federal 17 or state laws, regulations or regulatory actions, or supply and 18 distribution decisions made by a sewer or water service provider 19 other than the local jurisdiction that preclude the jurisdiction from 20 providing necessary infrastructure for additional development 21 during the planning period. 22 (B) The availability of land suitable for urban development or 23 for conversion to residential use, the availability of underutilized 24 land, and opportunities for infill development and increased 25 residential densities. The council of governments may not limit 26 its consideration of suitable housing sites or land suitable for urban 27 development to existing zoning ordinances and land use restrictions 28 of a locality, but shall consider the potential for increased 29 residential development under alternative zoning ordinances and 30 land use restrictions. The determination of available land suitable 31 for urban development may exclude lands where the Federal 32 Emergency Management Agency (FEMA) or the Department of 33 Water Resources has determined that the flood management 34 infrastructure designed to protect that land is not adequate to avoid 35 the risk of flooding. 36 (C) Lands preserved or protected from urban development under 37 existing federal or state programs, or both, designed to protect 38 open space, farmland, environmental habitats, and natural resources 39 on a long-term basis. 96 3.a Packet Pg. 46 SB 828 —22— I 22- 1 (D) County policies to preserve prime agricultural land, as 2 defined pursuant to Section 56064, within an unincorporated area. 3 (3) The distribution of household growth assumed for purposes 4 of a comparable period of regional transportation plans and 5 opportunities to maximize the use of public transportation and 6 existing transportation infrastructure. 7 (4) The market demand for housing. 8 (5) Agreements between a county and cities in a county to direct 9 growth toward incorporated areas of the county. 10 (6) The loss of units contained in assisted housing developments, 11 as defined in paragraph (9) of subdivision (a) of Section 65583, 12 that changed to non -low-income use through mortgage prepayment, 13 subsidy contract expirations, or termination of use restrictions. 14 (7) High -housing cost burdens. 15 (8) The housing needs of farmworkers. 16 (9) The housing needs generated by the presence of a private 17 university or a campus of the California State University or the 18 University of California within any member jurisdiction. 19 (10) Any other factors adopted by the council of governments. 20 (e) The council of governments, or delegate subregion, as 21 applicable, shall explain in writing how each of the factors 22 described in subdivision (d) was incorporated into the methodology 23 and how the methodology is consistent with subdivision (d) of 24 Section 65584. The methodology may include numerical weighting. 25 (f) Any ordinance, policy, voter -approved measure, or standard 26 of a city or county that directly or indirectly limits the number of 27 residential building permits issued by a city or county shall not be 28 a justification for a determination or a reduction in the share of a 29 city or county of the regional housing need. 30 (g) In addition to the factors identified pursuant to subdivision 31 (d), the council of governments, or delegate subregion, as 32 applicable, shall identify any existing local, regional, or state 33 incentives, such as a priority for funding or other incentives 34 available to those local governments that are willing to accept a 35 higher share than proposed in the draft allocation to those local 36 governments by the council of governments or delegate subregion 37 pursuant to Section 65584.05. 38 (h) Following the conclusion of the 60 -day public comment 39 period described in subdivision (c) on the proposed allocation 40 methodology, and after making any revisions deemed appropriate 96 3.a Packet Pg. 47 —23— SB 828 I by the council of governments, or delegate subregion, as applicable, 2 as a result of comments received during the public comment period, 3 each council of governments, or delegate subregion, as applicable, 4 shall adopt a final regional, or subregional, housing need allocation 5 methodology and provide notice of the adoption of the 6 methodology to the jurisdictions within the region, or delegate 7 subregion as applicable, and to the department. 8 (i) (1) It is the intent of the Legislature that housing planning 9 be coordinated and integrated with the regional transportation plan. 10 To achieve this goal, the allocation plan shall allocate housing 11 units within the region consistent with the development pattern 12 included in the sustainable communities strategy. 13 (2) The final allocation plan shall ensure that the total regional 14 housing need, by income category, as determined under Section 15 65584, is maintained, and that each jurisdiction in the region 16 receive an allocation of units for low- and very low income 17 households. 18 (3) The resolution approving the final housing need allocation 19 plan shall demonstrate that the plan is consistent with the 20 sustainable communities strategy in the regional transportation 21 plan. 22 (4) The final allocation plan shall not consider prior 23 underproduction of housing from the previous cycle, as outlined 24 in paragraph (4) of subdivision (c) of Section 65584.01, in order 25 to justify a lower allocation for a local government. 26 (5) The final allocation plan shall demonstrate government 27 efforts to reverse racial and wealth disparities throughout a region. 28 In particular, each final regional housing need plan shall 29 demonstrate both of the following: 30 (A) A high housing allocation for households of all income 31 levels, in particular low-income and very low-income households, 32 located within communities with high rates of projected income 33 growth to ensure equity and to stabilize home prices and 34 communities. 35 (B) An alleviation aftnedian market Petit 4tal exeeeds 30 peree 36 ofhottsehold median ineome by rapidly inereasing hottsing sttpply-, 37 partiettlarly hottsing supply for moderale and above moderate 38 ineome households. 39 (G) 96 3.a Packet Pg. 48 SB 828 —24— I 24- 1 (B) High housing allocations for all income categories, but 2 particularly low and very low-income households, and in particular 3 the allocation shall be weighted heavily toward local governments 4 that meet both of the following criteria: 5 (i) Are in the top quartile for median income for the region. 6 (ii) Contain regional job centers with connectivity to existing 7 or planned high-quality public transportation, such as fixed rail 8 systems, ferry terminals serviced by bus or rail, bus rapid transit, 9 or extensive bus networks with frequent all -day bus service. 10 SEC. 6. No reimbursement is required by this act pursuant to 11 Section 6 of Article XIIIB of the California Constitution because 12 a local agency or school district has the authority to levy service 13 charges, fees, or assessments sufficient to pay for the program or 14 level of service mandated by this act, within the meaning of Section 15 17556 of the Government Code. .A] 96 3.a Packet Pg. 49