HomeMy WebLinkAbout2021-04-27 - AGENDA REPORTS - STATE LEGISLATION: AB 989 (2)0
Agenda Item: 8
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR 14)
CITY MANAGER APPROVAL: '"I J4013
DATE: April 27, 2021
SUBJECT: STATE LEGISLATION: ASSEMBLY BILL 989
DEPARTMENT: City Manager's Office
PRESENTER: Masis Hagobian
RECOMMENDED ACTION
City Council adopt the City Council Legislative Committee recommendation to oppose
Assembly Bill 989 (Gabriel) and transmit position statements to Assembly Member Gabriel,
Santa Clarita's state legislative delegation, appropriate legislative committees, Governor
Newsom, League of California Cities, and other stakeholder organizations.
BACKGROUND
Authored by Assembly Member Jesse Gabriel (D-45-Woodland Hills), Assembly Bill 989
establishes the Housing Accountability Committee (Committee) within the Department of
Housing and Community Development to review appeals from developers regarding multi-
family housing developments that local governments have denied or subjected to conditions that
potentially make the project financially infeasible.
Assembly Bill 989 would require the Committee to vacate a local decision if it finds that the
local agency disapproved the housing development in violation of existing state law. The
Committee would direct the local government to issue any approval or permit for the
development, as well as any approval or permit to modify or remove any condition to make the
development no longer infeasible.
Existing law requires that when a proposed development complies with objective general plan
and zoning standards, including design review standards, a local agency that intends to
disapprove the project, or approve it on the condition that it be developed at a lower density,
must make written findings based on a preponderance of the evidence that the project would
have a specific, adverse, impact on the public health or safety and that there are no feasible
methods to mitigate or avoid those impacts other than disapproval or conditions to the project.
This bill applies to housing developments that meet or exceed the following affordability
Page 1
Packet Pg. 49
0
requirements: (1) ten percent of the units are available at an affordable housing cost to extremely
low income households; (2) twenty percent of the units are available at an affordable housing
cost to very low and low-income households; or (3) one hundred percent of the total housing
units of the development are available at an affordable housing cost to moderate -income
households.
As prescribed in this bill, a local government must carry out the Committee order within 30 days.
If the local government fails to do so, the bill authorizes the party that submitted the appeal to
enforce the orders in court. This bill would entitle the applicant of the proposed project to
attorney fees and associated costs if the Committee order is upheld in court and would authorize
the court to impose additional fines on the local government that is a party to the filing.
The recommendation to oppose Assembly Bill 989 is consistent with the City of Santa Clarita
2021 Executive and Legislative Platform. Specifically, Component 27 under the "State" section
advises that the City Council, "Oppose legislation that would interfere with, limit, or eliminate
the decision -making authority of municipalities in the area of local land use."
Assembly Bill 989 passed the Assembly Committee on Housing and Community Development
(6-0-2) on April 14, 2021, and was referred to the Assembly Committee on Local Government.
Notable supporters include the California Apartment Association (Co -Sponsor), California
Housing Partnership Corporation (Co -Sponsor), California Association of Realtors, and
California Building Industry Association.
Livable California was the only registered opposition at the time this report was developed.
The City Council Legislative Committee met on April 8, 2021, and recommends that the City
Council adopt an "oppose" position on Assembly Bill 989.
ALTERNATIVE ACTION
1. Adopt a "support" position on Assembly Bill 989
2. Adopt a "neutral" position on Assembly Bill 989
3. Take no action on Assembly Bill 989
4. Refer Assembly Bill 989 back to the Legislative Committee
5. Other direction, as provided by the City Council
FISCAL IMPACT
The resources required to implement the recommended action are contained within the City of
Santa Clarita's adopted FY 2020-21 budget.
Page 2
Packet Pg. 50
0
ATTACHMENTS
Assembly Bill 989 - Bill Text
Page 3
Packet P9. 51
8.a
AMENDED IN ASSEMBLY MARCH 25, 2021
CALIFORNIA LEGISLATURE-2021-22 REGULAR SESSION
ASSEMBLY BILL
No. 989
Introduced by Assembly Member Gabriel
(Principal coauthor: Senator Gonzalez)
(Coauthors: Assembly Members Berman, Fong, Mayes, McCarty,
Quirk -Silva, Robert Rivas, and licks)
(Coauthor: Senator Kamlager)
February 18, 2021
An act to add Section 65585.4 to the Government
Code, relating to planning and land use.
LEGISLATIVE COUNSEL'S DIGEST
AB 989, as amended, Gabriel. C4iet.—Housing: local development
decisions: appeals.
Existing law requires a city or county to prepare and adopt a general
plan for its jurisdiction that contains certain mandatory elements,
including a housing element. Existing law prescribes requirements for
the housing element, including adequate sites for various types of
housing based on the existing and projected need of all economic
segments of the community. Existing law requires a city or county to
consider guidelines adopted by the Department of Housing and
Community Development in preparing its housing element and
prescribes a process for submitting the element for review by the
department. Existing law authorizes the department to take certain
actions if it determines that the housing element does not comply with
prescribed requirements.
98
Packet Pg. 52
8.a
AB 989 — 2 —
This bill would establish a Housing Accountability Committee within
the Department of Housing and Community Development, and would
prescribe its membership. The bill would set forth the committee's
powers and duties, including the review of appeals regarding multifamily
housing projects that cities and counties have denied or subjected to
unreasonable conditions that make the project financially infeasible.
This bill would require that the committee be supported by the
department and hear appeals at least quarterly or more often as the
committee deems necessary. The bill would prescribe the qualifications
of proposed housing developments that would be eligible for appeals
and timelines within which applicants, the committee, and local agencies
would be required to act. The bill would require, among other things,
the local agency to transmit a copy of its decision and reasoning to the
committee, as specified, and would require all governing members of
the local agency to certify in writing, under penalty of perjury, that
their decision was not made for any unlawful or improper purpose. By
requiring members of the local agency to make certifications under
penalty of perjury, this bill would impose a state -mandated local
program.
This bill would require the committee to vacate a local decision if it
finds that the local agency disapproved the housing development in
violation of specified provisions, and would require the committee to
direct the local agency to issue any necessary approval or permit for
the development and, if applicable, to modem or remove any condition
or requirement to make the development no longer infeasible.
This bill would require a local agency to carry out a committee order
within 30 days of entry, and if the local agency fails to do so, the bill
would authorize an applicant to enforce the committee orders in court.
The bill would entitle the applicant to attorney's fees and costs, and
would additionally authorize the court to impose specified fines on the
city or county. The bill would authorize the department to charge
applicants a fee for an appeal, as specified, and if the committee orders
approval of the proposed development or modifies or removes any
conditions or requirements imposed upon the applicant, the bill would
require a city or county to reimburse the applicant for the fee. By
increasing the duties of local officials, this bill would impose a
state -mandated local program.
The bill would include findings that changes proposed by this bill
address a matter of statewide concern rather than a municipal affair
and, therefore, apply to all cities, including charter cities.
98
Packet Pg. 53
8.a
—3—
AB 989
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 specified reasons.
Existing law sets f6rth sions relating to the governanee
of eities atid defittes the term "legislative body" for these pttrpo�e�.
This bill would make a nottsubstantive ehattge to that definitiott.
Vote: majority. Appropriation: no. Fiscal committee: tte-yes.
State -mandated local program: tte-yes.
The people of the State of California do enact as follows:
1 SECTION 1. The Legislature hereby finds and declares the
2 following:
3 (a) California is experiencing a housing crisis, with housing
4 demand far outstripping supply. California recently ranked 49th
5 out of the 50 states in housing units per capita.
6 (b) Studies have shown that the housing crisis is driving high
7 costs of living and further threatening sustainable economic growth
8 in the state.
9 (c) Research has also shown that cost -burdened households
10 have had to cut back on critical basic needs like food, and can be
11 forced to take on additional debt in order to afford rent. Extremely
12 low income households in California have to pay at least one-half
13 of their income toward housing, putting them at risk of housing
14 instability and homelessness.
15 (d) According to the California Housing Partnership, California
16 needs an estimated 2,600, 000 additional homes over the next 10
17 years, including 1,200,000 homes affordable to lower income
18 households.
19 (e) State law requires local governments to exercise their zoning
20 power to meet the housing needs of residents at all income levels
21 and to remove arbitrary constraints that prevent the development
22 of sufficient affordable housing.
23 (1) Even when proposed housing projects conform to local
24 zoning requirements, local officials may improperly deny projects
25 or subject them to unreasonable conditions that make them
26 financially infeasible.
98
Packet Pg. 54
8.a
AB 989
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
—4—
(g) It is often prohibitively expensive, time-consuming, and
impractical to bring litigation challenging improper and unlawful
decisions preventing the construction of affordable housing. For
this reason, State Legislatures in Connecticut, Illinois,
Massachusetts, and Rhode Island have created alternative means
to challenge efforts to prevent the construction of affordable
housing.
(h) It is the intent of the Legislature to ensure that local
governments do not actively defy or circumvent state law and
improperly or unlawfully prevent the development of badly needed
affordable housing.
SEC. 2. Section 65585.4 is added to the Government Code, to
read:
65585.4. (a) There shall be within the department a Housing
Accountability Committee consisting of five members to review
multifamily housing projects that have been denied or subjected
to unreasonable conditions that make the project financially
infeasible.
(1) The director of the department and the Director of the
Governor's Office of Planning and Research shall be ex officio
members, provided that they may designate an employee of their
respective department or office to serve on the committee in their
place.
(2) The remaining three members shall be appointed by the
Governor with the advice and consent of the Senate. One member
shall be a member of a city council or board of supervisors and
one other member shall have extensive experience in the
development of affordable housing. The appointed members shall
serve for terms of two years each, at the pleasure of the Governor.
The director of the department shall designate the chairperson.
(3) Members of the committee shall not receive compensation
for their services, but shall be reimbursed by the department for
all reasonable expenses actually or necessarily incurred in the
performance of their official duties. The department shall provide
the space and clerical and other assistance that the committee may
require.
(4) The committee shall hear appeals pursuant to this section
at least quarterly or more often as it deems necessary. The
committee shall conduct the hearings in accordance with guidelines
established by the department. The adoption, amendment, or repeal
98
Packet Pg. 55
8.a
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
AB 989
of a guideline authorized by this section is hereby exempted from
the rulemaking provisions of the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part I of
Division 3 of Title 2).
(b) An applicant who proposes to construct a housing
development that meets the criteria of subdivision (c) and whose
application is either denied, or approved with conditions that in
the person's judgment render the provision of housing
economically infeasible, may appeal the decision of the city, county,
or city and county to the committee.
(c) An applicant may file an appeal with the committee if both
of the following criteria are met:
(1) The proposed housing development will meet or exceed any
of the following affordability requirements:
(A) Ten percent of the total of the housing development is
available at affordable housing cost to extremely low income
households whose household income is less than or equal to 30
percent of the area median income.
(B) Twenty percent of the total housing of the development is
available at affordable housing cost to very low income and
low-income households, as defined in Section 50105 of the Health
and Safety Code.
(C) One hundred percent of the total housing of the development
is available at affordable housing cost to moderate -income
households, as defined in Section 50093 of the Health and Safety
Code.
(2) Either of the following criteria is met:
(A) The city, county, or city and county has adopted a housing
element that the department has determined pursuant to Section
65585 to be in substantial compliance with the requirements of
this article, and the proposed housing. development, exclusive of
any density bonus granted pursuant to Section 65915, is consistent
with both the density allowed by the jurisdiction's zoning ordinance
and the general plan land use designation as specified in any
element of the general plan as of the date the application was
deemed complete, except that consistency shall not be required
with the zoning ordinance or the general plan land use designation
if the jurisdiction has not amended the ordinance or the designation
to conform to the adopted housing element.
98
Packet Pg. 56
8.a
AB 989
1 (B) The city, county, or city and county has not adopted a
2 housing element that the department has determined pursuant to
3 Section 65585 to be in substantial compliance with the
4 requirements of this article, and the proposed housing development
5 is located on a site that is designated for residential or commercial
6 uses in any element of the general plan as of the date the
7 application was deemed complete.
8 (d) (1) An applicant may file an appeal with the committee
9 within 45 days after the date of the decision by the local agency
10 to deny the application or approve the application with conditions
11 that render the provision of housing economically infeasible. The
12 committee shall notify the local agency of the filing of an appeal
13 within 10 days, and the local agency shall, within 10 days of the
14 receipt of that notice, transmit a copy of its decision and the
15 reasons therefor to the committee. All governing members of the
16 local agency shall certify in writing, underpenalty ofperjury, that
17 their decision was not made for any unlawful or improper purpose.
18 If the local agency does not meet the deadline, the committee shall
19 vacate the decision of the local agency and direct the local agency
20 to issue any necessary approval or permit for the development to
21 the applicant within 30 days of the committee's decision. In this
22 instance, the case shall be considered closed. If the local agency
23 responds within the deadline, the appeal shall be heard within 30
24 days after receipt of the request for an appeal by the applicant.
25 (2) The appeal hearing may be conducted by the committee, a
26 subcommittee of two or more members of the committee, or a
27 hearing officer appointed by the chairperson of the committee. A
28 record of the proceedings shall be kept. The hearing shall be
29 limited to the issue of whether the local agency, in violation of
30 Section 65589.5, disapproved a housing development project or
31 conditioned its approval in a manner rendering it infeasible for
32 the development of housing for very low, low-, or moderate -income
33 households, including farmworker housing, without making the
34 findings required by that section or without making findings
35 supported by a preponderance of the evidence.
36 (3) At its next meeting following the hearing, the committee
37 shall render a written decision, based upon a majority vote, stating
38 its findings offact, its conclusions, and the support for them. If the
39 committee finds that the local agency disapproved the housing
40 development in violation of Section 65589.5, it shall vacate the
98
Packet Pg. 57
8.a
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
7 — AB 989
decision and shall direct the local agency to issue any necessary
approval or permit for the development to the applicant within 30
days of the committee's decision. If the committee finds that the
local agency conditioned its approval in a manner rendering the
development infeasible for the development of housing for very
low, low-, or moderate -income households in violation of Section
65589.5, it shall order the local agency to mods or remove any
such condition or requirement so as to make the development no
longer infeasible and to issue any necessary permit or approval.
(e) In any appeal before the committee, the applicant shall have
the initial burden ofproof to show that it has met the requirements
of subdivision (c). In a case of approval with conditions or
requirements imposed, the applicant shall also have the burden
of proof to show that the conditions and requirements render the
provision of housing economically infeasible. If the applicant meets
the initial burden of proof, then the local agency shall have the
burden ofproof to show that its action was consistent with Section
65589.5.
(/) The city or county shall carry out the order of the committee
within 30 days of its entry, and upon failure to do so, the order of
the committee shall for all purposes be deemed to be the action of
the local agency, unless the applicant consents to a different
decision or order by the local agency. The applicant may enforce
the orders of the committee in court. The applicant shall be entitled
to attorney's fees and costs if the applicant prevails in an
enforcement action, and the court may impose fines on the city or
county consistent with subdivision (k) and (1) of Section 65589.5.
(g) The department may charge a fee to the applicant that shall
not exceed the reasonable cost to the committee of providing the
hearing. If the committee orders approval of the proposed
development or modifies or removes any conditions or
requirements imposed upon the applicant, the city or county shall
reimburse the applicant for the fee paid pursuant to this
subdivision.
(h) For the purposes of this section the following terms have
the following meanings:
(1) `Area median income" means area median income as
periodically established by the department pursuant to Section
50093 of the Health and Safety Code.
(2) "Committee" means the Housing Accountability Committee.
98
Packet Pg. 58
8.a
AB 989 — 8 —
1 (3) "Housing development" means a development project
2 consisting of 10 or more residential dwelling units or an emergency
3 shelter facility.
4 (i) The remedies provided in this section are in addition to any
5 other remedy provided by law.
6 6) The Legislature finds and declares that this section addresses
7 a matter of statewide concern rather than a municipal affair as
8 that term is used in Section 5 of Article XI of the California
9 Constitution. Therefore, this section applies to all cities, including
10 charter cities.
11 SEC. 3. No reimbursement is required by this act pursuant to
12 Section 6 of Article XIIIB of the California Constitution because
13 a local agency or school district has the authority to levy service
14 charges, fees, or assessments sufficient to pay for the program or
15 level of service mandated by this act or because costs that may be
16 incurred by a local agency or school district will be incurred
17 because this act creates a new crime or infraction, eliminates a
18 crime or infraction, or changes the penalty for a crime or
19 infraction, within the meaning of Section 17556 of the Government
20 Code, or changes the definition of a crime within the meaning of
21 Section 6 of Article WIIB of the California Constitution.
22 jEGTION r. Seetion 3 000 of the—Gaverrtment Gode is
23 atnended to _e a:
24 " means the board
25 of trustees, eity eotitteil, or other governiitg body of a eitr.
I
98
Packet Pg. 59