HomeMy WebLinkAbout1994-01-11 - AGENDA REPORTS - STATE LEGISLATION AB 51 (2)AGENDA REPORT
CONSENT CALENDAR
DATE: January 11, 1994
SUBJECT: State Legislation: AB 51
DEPARTMENT. Management Services
BACKGROUND
C i nager Approval
Item to be presented by:
Michael Murphy m oq
Assembly Bill 51 (Costa) revises the condi * tions under which local jurisdictions may
transfer housing units to meet regional housing goals. The bill further requires that local
jurisdictions provide an annual report on the progress in meeting regional housing needs
using specified forms and definitions as developed by the Department of Housing and
Community Development.
AB 51 allows neighboring local governments to transfer up to 25% , not to exceed 500
units, of their regional housing allocation between jurisdictions. The transfer must
demonstrate that more low and moderate income housing will be constructed as a result
of the transfer.
The bill enacts several reporting and monitoring requirements either to the Council of
Governments or Department of Housing and Community Development. The bill
requires construction of the units within a three year time frame by the receiving
jurisdiction. Failure to construct will permit the Council of Governments to reallocate
the units to the donor jurisdiction which may necessitate a change in local zoning or
modification of the Housing Element of the General Plan,
The League of California Cities, California State Association of Counties and the City of
Long Beach, among others, are on record opposing the measure. While supportive of
efforts to permit transfers of housing units between jurisdictions to encourage the
construction of more low and moderate income units, the reporting requirements and
authorities granted to the Councils of Governments and/or Department of Housing and
Community Development are of concern. The bill presumes that local governments are
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unable to adequately self -police their actions and creates new paperwork, negotiation
and potential litigation considerations for local jurisdictions. Furthermore, there is no
appeal process for HCD or COG decisions.
The bill is currently awaiting hearing in the Senate Appropriations Committee which
will occur sometime in or after January, 1994. The League of California Cities anticipates
that the bill may be amended to include provisions granting more authority to the
Department of Housing and Community Development in the form of city -by -city
performance objectives for low income housing, direct appeals of project denials by local
jurisdictions and HCD established density standards for communities.
It is presently unclear which amendments, if any, may be plugged into the bill. The City
Council Legislative Committee reviewed AB51 and recommends opposition to the
measure in its present form. If the bill is amended in a manner which retains local
jurisdictions' land use authority, eliminates excessive local reporting requirements and
minimizes regulation of housing unit transfers, the measure could be supported.
RECOMMENDATION
Adopt City Council Legislative Committee recommendation to oppose the bill as
amended July 6, 1993. Support the measure only if amended to retain local jurisdictions'
land use authority, reasonable local reporting requirements and minimal regulation of
housing unit transfers. Position statements should be transmitted to the Santa Clarita
Legislative delegation, Assembly Member Costa, Senate Appropriations Committee,
League of California Cities, California Contract Cities Association and Independent Cities
Association.
ATTACHMENT
Assembly Bill 51
MPM/ab3fleagd
In bill text, brackets have special meaning:
[A> <A] contains added text, and
[D> <D] contains deleted text.
CA AB 51 09/23/93
Amended
AMENDED IN SENATE JULY 6, 1993
AMENDED IN ASSEMBLY MAY 3, 1993
AMENDED IN ASSEMBLY APRIL 1, 1993
AMENDED IN ASSEMBLY MARCH 22, 1993
Page I
ASSEMBLY BILL No. 51
Introduced by Assembly member Costa
(Coauthor: Assembly Member Goldsmith)
December 15, 1992
An act to amend Section 65400 of, and to add Section 65584.5 to, the
Government Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 51, as amended, Costa. Housing: regional housing needs.
(1) Existing law requires that each planning agency provide an
annual report to the legislative body on progress in meeting regional
housing needs, as specified.
This bill would require that the annual report on progress in
meeting regional housing needs for the previous calendar year shall be
provided, using forms and definitions adopted by the Department of
Housing and Community Development pursuant to the Administrative
Procedure Act, to the legislative body on or before July I of each year.
(2) Existing law requires each city, county, and city and county to
adopt for its jurisdiction, according to specified deadlines, a general
plan that includes certain mandatory elements, including a housing
element. Existing law requires the Department of Housing and Community
Development to review local housing elements for conformity with
specified provisions of law, including the regional housing needs of the
city or county. Under existing law, either a council of governments or
the Department of Housing and Community Development, in areas with no
council of governments, is required to determine, in accordance with
specified procedures, the share of a city or county of regional housing
needs in all economic sectors of housing.
This bill would revise the conditions under whi'ch the shares of
regional housing needs to be met may be transferred among cities and
counties. By requiring new procedures of councils of governments, the
bill would impose a state -mandated local program.
(3) The California Constitution requires the state to reimburse
CA AB 51 09/23/93 Page 2
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund to
pay the costs of mandates which do not exceed $1,000,000 statewide and
other procedures for claims whose statewide costs exceed $1,000,000.
This bill would provide that, if the Commission on State Mandates
determines that this bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to those statutory
procedures and, if the statewide cost does not exceed $1,000,000, shall
be made from the State Mandates Claims Fund,
Vote: majority. Appropriation: no. Fiscal committee; yes.
State -mandated local program: yes.
The people of the State of California do enact as follows:
SECTION 1. Section 65400 of the Government Code is amended to read:
65400, After the legislative body has adopted all or part of a
general plan, the planning agency shall do both of the following:
(a) Investigate and make recommendations to the legislative body
regarding reasonable and practical means for implementing the general
plan or element of the general plan, so that it will serve as an
effective guide for orderly growth and development, preservation and
conservation of open -space land and natural resources, and the efficient
expenditure of public funds relating to the subjects addressed in the
general plan.
(b) (1) Provide an annual report to the legislative body on the
status of the plan and progress in its implementation, including the
progress in meeting its share of regional housing needs determined
pursuant to Section 65584 and local efforts to remove governmental
constraints to the maintenance, improvement, and development of housing
pursuant to paragraph (3) of subdivision (c) of Section 65583.
(2) The annual report required pursuant to this subdivision shall be
prepared through the use of forms and definitions adopted by the
Department of Housing and Community Development pursuant to the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of, Chapter 4 (commencing with Section 11370) of, and Chapter 5
(commencing with Section 11500) of, Part I of Division 3 of Title 2).
This report shall be provided to the legislative body on or before July
1 of each year.
SEC. 2. Section 65584.5 is added to the Government Code, to read:
65584.5. (a) A city or county may transfer a percentage of its
share of the regional housing needs to another city or county, if all of
the following requirements are met;
(1) Both the receiving city or county and the transferring city or
county comply with all of the conditions specified in subdivision (b).
(2) The council of governments or the department reviews the
CA AB 51 09/23/93 Page 3
findings made pursuant to paragraph (D> (3) <DJ [A> (2) <A] of
subdivision (c).
(3) The transfer does not occur more than once in a five-year
housing element interval pursuant to subdivision (b) of Section 65588.
(4) The procedures specified in subdivision (c) are met.
(b) (1) Except as provided in paragraph (5) of subdivision (c) of
Section 65584, a city or county transferring a share of its regional
housing needs shall first have met, in the current or previous housing
element cycle, at least 25 percent of its existing share of the region's
affordable housing needs, as defined in Section 65584, in the very low
and lower income category of income groups defined in Section 50052.5 of
the Health and Safety Code if it proposes to transfer not more than 15
percent of its share of the region's affordable housing needs, or at
least 30 percent of its existing share of the region's affordable
housing needs for those income groups if it proposes to transfer not
more than 20 percent of its share of the region's affordable housing
needs, or at least 35 percent of its existing share of the region's
affordable housing needs for those income groups if it proposes to
transfer not more than 25 percent of its share of the region's
affordable housing needs. In no event, however, shall the city or county
transfer more than 500 dwelling units in a housing element cycle.
(2) A city or county shall transfer its regional housing needs in
the same.proportion by income group as the jurisdiction has met its
regional housing needs.
(3) The transfer shall be only between jurisdictions that are
contiguously situated or between a receiving city or county that is
within 10 miles of the territory of the community of the donor city or
county. If both the donor community and receiving community are
counties, the donor county shall be adjacent to, in the same council of
governments region as, and in the same housing market as, the receiving
county. The sites on which any transferred housing units will be
constructed shall be in the receiving city or county, and within the
same housing market area as the jurisdiction of the donor city or
county.
(4) The transferring and receiving city or county shall have
adopted, and shall be implementing, a housing element in substantial,
compliance with Section 65583.
(5) The transferring city or county and the receiving city or county
shall have completed, and provided to the department, the annual report
required by subdivision (b) of Section 65400.
(c) (1) The donor city or county and the receiving city or county
shall, at least 45 days prior to the transfer, hold a public hearing,
after providing notice pursuant to Section 6062, to solicit public
comments on the draft contract, including its terms, conditions, and
determinations.
(2) The transferring and the receiving city or county shall do all
of the following:
CA AB 51 09/23/93
Page 4
(A) Adopt a finding, based on substantial evidence on the record,
that the transfer of the regional housing need pursuant to the terms of
the agreement will not cause or exacerbate racial, ethnic, or economic
segregation and will not create a detrimental financial impact upon the
receiving city or county.
(B) Adopt a finding, based on substantial evidence on the record,
that the transfer of the regional housing need will result in the
construction of a greater number of similar type dwelling units than if
the transfer does not occur.
(3) (A) The transferring city or county and the receiving city or
county shall enter into an agreement to transfer units eligible under
subdivision (b). A copy of this agreement shall be sent to the council
of governments and the department to be kept on file for public
examination.
(B) The agreement shall include a plan and schedule for timely
construction of dwelling units, including, in addition to site
identification, identification of and timeframes for applying for
sufficient subsidy or mortgage financing if the units need a subsidy or
mortgage financing, and a finding that sufficient services and public
facilities will be provided.
(4) At least 60 days prior to the transfer, the receiving city or
county planning agency and the transferring city or county planning
agency shall submit to the department a draft amendment to reflect the
identified transferred units. A transferring agency may reduce its
housing needs only to the extent that it had not previously reduced its
housing needs pursuant to paragraph (2) of subdivision (b) of Section
65583. A county planning agency that has its share of the regional
housing need reduced pursuant to paragraph (5) of subdivision (c) of
Section 65584 shall comply with this section. A receiving city or county
shall, in addition to any other provisions of the article, identify in
its housing element sufficient sites to meet its initial low- and
moderate -income housing needs and sufficient sites to meet all
transferred housing needs.
(5) The department shall review the draft amendment and report its
written findings to the planning agency within 45 days of its receipt.
(6) The department's review shall follow the same
requirements, and respofisibilities of Sections 65583,
65589.3, except in the case of a challenge brought to
pursuant to this section, where the court may use its
judgment to review the validity of the amendment, and
conditions, and determinations of the transfer agreem,
shall consider any written findings submitted by the 1
procedure,
65585, 65587, and
any amendment
independent
as to the terms,
�nt . The court
lepartment.
(d) No transfer made pursuant to this section shall affect the plans
for a development that have been submitted to a city or county for
approval 45 days prior to the adoption of the amendment to the housing
element.
(e) No transfer made pursuant to this section shall be counted
CA AB 51 09./23/93 Page 5
toward any ordinance or policy of a locality that specifically limits
the number of units that may be constructed.
(f) The Attorney General or any other interested person shall have
authority to enforce the terms of the agreement and the provisions of
this section.
(9) For a period of five years after the transfer occurs, the report
required by subdivision (b) of Section 65400 shall include information
on the status of transferred units, implementation of the terms and
conditions of the transfer contract, and information on any dwelling
units actually constructed, including the number, type, location, and
affordability requirements in place for these units.
(h) (1) At least 60 days prior to the proposed transfer, the donor
city or county shall submit the proposed agreement to the council of
governments, or to the department if there is no council of governments
that serves the city or county, for review. The governing board of the
council or the director shall determine whether there is substantial
evidence to support the terms, conditions, and determinations of the
agreement and whether the agreement complies with the substantive and
procedural requirements of this section. If the council or the director
finds that there is substantial evidence to support the terms,
conditions, and determinations of the agreement, and that the agreement
complies with the substantive and procedural requirements of this
section, the participating jurisdictions may proceed with the agreement.
If the governing board or the director finds that there is not
substantial evidence to support the terms, conditions, and findings of
the agreement, or that the agreement does not comply with the
substantive and procedural requirements of this section, the board or
the director may make recommendations for revising or terminating the
agreement. The participating jurisdictions shall then include those
revisions, if any, or terminate the agreement.
(2) The council or the director may convene a committee to advise
the council or the director in conducting this review. The donor city or
county and the receiving community shall pay the council's or the
department's costs associated with the committee. Neither the donor city
or county, nor the receiving city or county, may expend moneys in its
Low and Moderate Income Housing Fund of its redevelopment agency for
costs associated with the committee.
(3) Membership of the committee appointed pursuant to paragraph (2)
shall include all of the followingt
(A) One representative appointed by the director.
(B) One representative appointed by the donor agency.
(C) One representative appointed by the receiving community.
(D) Two low and moderate income housing advocates, appointed by the
director, who represent those persons in that region.
(i) (1) The receiving city or county shall --onstruct the housing
units within three years of the date that the transfer zontract is
CA AB 51 09/23/93 Page 6
entered into pursuant to this section. This requirement shall be met by
documenting that a building permit has been issued and all fees have
been paid.
(2) Any portion of a regional share allocation that is transferred
to another jurisdiction, and that is not constructed within the
three-year deadline set forth in paragraph (1), shall be reallocated by
the council of governments to the transferring city or county, and the
transferring city or county shall modify its zoning ordinance, if
necessary, and amend its housing element to reflect the reallocated
units.
(3) If, at the end of the five-year housing element planning period,
any portion of a regional share allocation that is transferred to
another jurisdiction is not yet constructed, the council of governments
shall add the unbuilt units to the normal regional fair share allocation
and reallocate that amount to either of the following:
(A) The receiving city, if the three-year deadline for construction
has not yet occurred; or
(B) The transferring city, if the three-year deadline for
construction has occurred.
(4) If the transferred units are not constructed within three years,
the nonperforming jurisdictions participating in the transfer of
regional share allocations shall be precluded from transferring their
regional shares, pursuant to this section, for the planning period of
the next periodic update of the housing element.
(j) On or after January 1, 2000, no transferring city or county
shall enter into an agreement pursuant to this section unless a later
enacted statute, which is enacted before January 1, 20M, deletes or
extends that date,
(k) If Article XXXIV of the California Constitution is applicable,
the receiving city or county shall certify that it has sufficient
authority under Article XXXIV of the California Constitution to allow
development of units transferred pursuant to this section.
(1) The receiving city or county shall not, within three years of
the date of the transfer agreement entered into pursuant to this
section, or until transferred units are constructed, whichever is
longer, enter into a contract to transfer units outside the territorial
jurisdiction of the agency pursuant to this section.
(m) Communities that have transferred a portion of their share of
the regional housing need to another city or county pursuant to this
section shall comply with all other provisions of'law for purposes of
meeting the remaining regional housing need not transferred, including
compliance with the provisions of Section 65589.5.
(n) As,used in this section, "housing market area" means the area
determined by a council of governments or the department pursuant to
Section 65584, and based upon market demand for housing, employment
opportunities, the availability of suitable sites and public facilities,
CA AS 51 09/23/93 Page 7
and commuting patterns
SEC. 3. Notwithstanding section 17610 of the Government Code, if
the Commission on state Mandates determines that this act contains costs
mandated by the state, reimbursement to local agencies and school
districts for those costs shall be made pursuant to Part 7 (commencing
with Section 17500) of Division 4 of Title 2 of the Government Code. If
the statewide cost of the claim for reimbursement does not exceed one
million dollars reimbursement shall be made from the State
Mandates Claims Fund. Notwithstanding Section 17580 of the Government
Code, unless otherwise specified in this act, the provisions of this act
shall become operative on the same date that the act takes effect
pursuant to the California Constitution.
END OF REPORT