HomeMy WebLinkAbout2019-05-28 - AGENDA REPORTS - STATE LEGISLATION: AB 1568 (2)Agenda Item: 5
DATE: May 28, 2019
SUBJECT: STATE LEGISLATION: ASSEMBLY BILL 1568
DEPARTMENT: City Manager's Office
PRESENTER: Masis Hagobian
RECOMMENDED ACTION
City Council adopt the City Council Legislative Committee recommendation to oppose
Assembly Bill 1568 (McCarty) and transmit position statements to Assembly Member McCarty,
Santa Clarita's state legislative delegation, appropriate legislative committees, Governor
Newsom, and the League of California Cities.
BACKGROUND
Assembly Bill 72 (Santiago), Chapter 370, Statutes of 2017, assigned the Department of Housing
and Community Development (HCD) authority to revoke a local government's housing element
and refer a city or county who has violated the state housing law to the Office of the Attorney
General (OAG). Violations to the state housing law include a city or county failing to adopt a
certified housing element, reducing the zone or density on a site in its housing inventory, or
discriminating against affordable housing and can result in a lawsuit by OAG against a city or
county.
Governor Gavin Newsom has proposed linking housing goals with transportation funding. The
proposal has included withholding transportation funds from local governments that do not have
a compliant housing element and have not zoned or entitled for its annual goals based on the
most recent Regional Housing Needs Assessment (RHNA).
Although the City of Santa Clarita (City) is in compliance with the state housing law and has
adopted a certified housing element, there are significant concerns with Assembly Bill 1568
(AB 1568) and its impact on the preemption of state grant funding. The range of funding passed
through to counties and cities as state grant funding makes the bill's restriction too great of a
risk.
AB 1568 increases punitive damages if a jurisdiction is found to be violating the state housing
law or their housing element is out of compliance that goes beyond the area of housing. This bill
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would prohibit cities and counties from applying for any state grant funds, except for funds
protected by Article XIX of the California Constitution and funds that would assist the city or
county in complying with state housing law, if the city or county has been found by HCD to have
violated the state housing law or their housing element is out of compliance.
The current statute related to local violations of the state housing law does not include any due
process. Therefore, if HCD finds that a jurisdiction is in violation of the state housing law or has
a non-compliant housing element, this bill would restrict the jurisdiction from accessing any state
grant funds, without an opportunity for due process.
Earlier versions of this bill included the Road Repair and Accountability Act (Senate Bill 1,
Chapter 5, Statutes of 2017) as a state grant fund that a local jurisdiction would be restricted
from receiving if found by HCD to have violated the state housing law or their housing element
is out of compliance. The author amended the bill to exempt the Road Repair and
Accountability Act from the group of state grant funds that would be restricted from local
jurisdictions found to be non-compliant, as defined in this bill.
The City of Santa Clarita 2019 Legislative Platform includes a component consistent with the
recommendation to oppose this bill. Component 29 under the "State" section of the Legislative
Platform advises that the City Council, "Support legislative and regulatory efforts to ensure
Santa Clarita receives its fair share of transportation revenue; based upon appropriate population
statistics or proportionate to transportation tax dollars generated in the City and increase funding
for local transportation, transit programs, and projects."
Assembly Bill 1568 was introduced on February 22, 2019, and passed the Assembly Committee
on Housing and Community Development (6-1-1) on April 24, 2019, and was referred to the
Assembly Committee on Appropriations. The bill was designated as a two-year bill on May 16,
2019, and will be eligibile for consideration beginning January 2020.
The City Council Legislative Committee met on May 6, 2019, and recommends that the City
Council adopt an "oppose" position on Assembly 1568.
ALTERNATIVE ACTION
Adopt a "neutral" position on Assembly Bill 1568
2. Adopt a "support" position on Assembly Bill 1568
3. Take no action on Assembly Bill 1568
4. Refer Assembly Bill 1568 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 Fiscal Year 2018-19 budget.
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ATTACHMENTS
Assembly Bill 1568 Bill Text
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AMENDED IN ASSEMBLY APRIL 11, 2019
AMENDED IN ASSEMBLY APRIL 8, 2019
AMENDED IN ASSEMBLY APRIL 1, 2019
CALIFORNIA LEGISLATURE -2019-20 REGULAR SESSION
ASSEMBLY BILL No. 1568
Introduced by Assembly Member McCarty
(Coauthor: Senator Wiener)
February 22, 2019
An act to amend Section 65585 of the Government Code, relating to
housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 1568, as amended, McCarty. Housing law compliance: prohibition
on applying for state grants.
The Planning and Zoning Law requires a city or county to adopt a
general plan for land use development within its boundaries that
includes, among other things, a housing element. Existing law, the
Housing Element Law, prescribes requirements for the preparation of
the housing element, including a requirement that a planning agency
submit a draft of the element or draft amendment to the element to the
Department of Housing and Community Development prior to the
adoption of the element or amendment to the element. Existing law
requires the department to review the draft and report its written
findings, as specified. Existing law also requires the department, in its
written findings, to determine whether the draft substantially complies
with the Housing Element Law.
Existing law also requires the department to review any action or
failure to act by the city or county that it determines is inconsistent with
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AB 1568 — —
an adopted housing element or a specified provision of the Housing
Element Law and to issue written findings, as specified, whether the
action or failure to act substantially complies with the Housing Element
Law. If the department finds that the action or failure to act by the city
or county does not substantially comply with the Housing Element Law,
and if it has issued findings as described above that an amendment to
the housing element substantially complies with the Housing Element
Law, existing law authorizes the department, after allowing no more
than 30 days for a local agency response, to revoke its findings until it
determines that the city or county has come into compliance with the
Housing Element Law. Existing law also requires the department to
notify the city or county that the city or county is in violation of state
law if the department makes certain findings of noncompliance or a
violation of specified provisions related to housing.
This bill would authorize the city or county to submit evidence that
the city or county is no longer in violation of state law to the department
and to request the department to issue a finding that the city or county
is no longer in violation of state law. If the department finds that the
city or county is no longer in violation of state law, the bill would require
the department to notify the city or county. The bill would, on or before
January 1, 2025, prohibit a city or county found to be in violation of
state law, as described above, from applying for a state grant, unless
the fund source of the state
grant is eottstittttiottally reqttire protected by a specified provision of
the California Constitution relating to state taxes and fees on motor
vehicles and motor vehicle fuels or the state grant funds, if awarded to
the city or county, would assist the city or county in complying with
the Housing Element Law.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State -mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 65585 of the Government Code is
2 amended to read:
3 65585. (a) In the preparation of its housing element, each city
4 and county shall consider the guidelines adopted by the department
5 pursuant to Section 50459 of the Health and Safety Code. Those
6 guidelines shall be advisory to each city or county in the
7 preparation of its housing element.
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1 (b) (1) At least 90 days before adoption of its housing element,
2 or at least 60 days before the adoption of an amendment to this
3 element, the planning agency shall submit a draft element or draft
4 amendment to the department.
5 (2) The planning agency staff shall collect and compile the
6 public comments regarding the housing element received by the
7 city, county, or city and county, and provide these comments to
8 each member of the legislative body before it adopts the housing
9 element.
10 (3) The department shall review the draft and report its written
11 findings to the planning agency within 90 days of its receipt of the
12 draft in the case of an adoption or within 60 days of its receipt in
13 the case of a draft amendment.
14 (c) In the preparation of its findings, the department may consult
15 with any public agency, group, or person. The department shall
16 receive and consider any written comments from any public
17 agency, group, or person regarding the draft or adopted element
18 or amendment under review.
19 (d) In its written findings, the department shall determine
20 whether the draft element or draft amendment substantially
21 complies with this article.
22 (e) Prior to the adoption of its draft element or draft amendment,
23 the legislative body shall consider the findings made by the
24 department. If the department's findings are not available within
25 the time limits set by this section, the legislative body may act
26 without them.
27 (f) If the department finds that the draft element or draft
28 amendment does not substantially comply with this article, the
29 legislative body shall take one of the following actions:
30 (1) Change the draft element or draft amendment to substantially
31 comply with this article.
32 (2) Adopt the draft element or draft amendment without changes.
33 The legislative body shall include in its resolution of adoption
34 written findings which explain the reasons the legislative body
35 believes that the draft element or draft amendment substantially
36 complies with this article despite the findings of the department.
37 (g) Promptly following the adoption of its element or
38 amendment, the planning agency shall submit a copy to the
39 department.
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AB 1568
1 (h) The department shall, within 90 days, review adopted
2 housing elements or amendments and report its findings to the
3 planning agency.
4 (i) (1) (A) The department shall review any action or failure
5 to act by the city, county, or city and county that it determines is
6 inconsistent with an adopted housing element or Section 65583,
7 including any failure to implement any program actions included
8 in the housing element pursuant to Section 65583. The department
9 shall issue written findings to the city, county, or city and county
10 as to whether the action or failure to act substantially complies
11 with this article, and provide a reasonable time no longer than 30
12 days for the city, county, or city and county to respond to the
13 findings before taking any other action authorized by this section,
14 including the action authorized by subparagraph (B).
15 (B) If the department finds that the action or failure to act by
16 the city, county, or city and county does not substantially comply
17 with this article, and if it has issued findings pursuant to this section
18 that an amendment to the housing element substantially complies
19 with this article, the department may revoke its findings until it
20 determines that the city, county, or city and county has come into
21 compliance with this article.
22 (2) The department may consult with any local government,
23 public agency, group, or person, and shall receive and consider
24 any written comments from any public agency, group, or person,
25 regarding the action or failure to act by the city, county, or city
26 and county described in paragraph (1), in determining whether the
27 housing element substantially complies with this article.
28 0) The department shall notify the city, county, or city and
29 county and may notify the Office of the Attorney General that the
30 city, county, or city and county is in violation of state law if the
31 department finds that the housing element or an amendment to this
32 element, or any action or failure to act described in subdivision
33 (i), does not substantially comply with this article or that any local
34 government has taken an action in violation of the following:
35 (1) Housing Accountability Act (Section 65589.5 of the
36 Government Code).
37 (2) Section 65863 of the Government Code.
38 (3) Chapter 4.3 (commencing with Section 65915) of Division
39 1 of Title 7 of the Government Code.
40 (4) Section 65008 of the Government Code.
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1 (k) (1) A city or county that the department has found to be in
2 violation of state law pursuant to subdivision 0) may, in a form
3 and manner prescribed by the department, submit evidence that
4 the city or county is no longer in violation of state law to the
5 department and may request the department to issue a written
6 finding that the city or county is no longer in violation of state law.
7 (2) If the department finds that the city or county is no longer
8 in violation of state law, the department shall notify the city or
9 county.
10 (ZJ Notwithstanding any other law, on or before January 1, 2025,
11 a city or county found to be in violation of state law pursuant to
12 this section shall not apply for a state grant unless either of the
13 following conditions is met:
14 (1) The fund source
15 of the state grant is . protected by Article
16 XIX of the California Constitution.
17 (2) The state grant funds, if awarded to the city or county, would
18 assist the city or county in complying with this article.
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