Loading...
HomeMy WebLinkAbout09-27-2017 PC Correspondence - Business Item 1 (Fowler, Ansolabehere)Bill Title Recommended Action (LOC) SB 35 - Planning and Zoning: Affordable Housing: Streamlined Approval Process Oppose AB 678/SB 167/AB 1515 – New Housing Accountability Act Enforcement Provisions Oppose SB 166 – Expansion of No-Net Loss to Loss of Affordability Watch AB 1505/SB 277 – Restoration of Inclusionary Housing Authority for Rental Units Support / Watch AB 73 - Housing Sustainability Districts NA SB 540 - Workforce Housing Opportunity Zones Support SB 35/AB 879 - Enhanced Annual Reporting Oppose AB 1397/AB 879/AB 72 - Increasing and Enforcing Housing Element Requirements Oppose SB 2 – Permanent Source of Affordable Housing Funding and Funding for Planning through Document Fee on Non-Housing Real Estate Support SB 3 – Veterans and Affordable Housing Bonds Support AB 1568 - Neighborhood and Infill Finance and Transit Improvements Act Watch AB 571 - Farmworker Housing Watch AB 1521 - Expiring Affordability Restrictions Watch AB 494/SB 229 - Easing Restrictions on ADU Construction Watch CONCLUSION City Staff will continue to analyze and monitor the housing legislation, and will provide any updates to the Planning Commission as they arise. Once the 30-day review period for the Governor has passed, Staff will update the Commission on any next steps the City needs to consider moving forward. Summary and Update of Recent Housing Legislation Attachment 1 PROCESSING HOUSING DEVELOPMENT APPLICATIONS SB 35 – Planning and Zoning: Affordable Housing: Streamlined Approval Process Description: Would “streamline” housing development approval process for jurisdictions that have not provided enough building permits to meet their state -mandated Regional Housing Need Allocation (“RHNA”) by income category. For projects to be eligible for this stream lined approval, the development site must be: (1) In an urban area; (2) Zoned or have a general plan designation for residential use; (3) Not have contained housing occupied by tenants within 10 years, if proposed development requires demolition of existing housing; (4) Meet other physical specifications; and (5) Must provide a specified level of affordable housing. Possible Impacts to City: • The City has not met our RHNA for the past few housing element cycles, this is extremely common throughout the State. Due to this, the bill would require the City ministerial approval of certain residential projects that are located within urban regions, provide a minimum percentage of affordable housing, and pay prevailing wage. This could eliminate the amount of discretionary review (architectural or otherwise) applied to certain projects. • Number of affordable units required in these streamlined projects would be based on the lack of production of each specific RHNA category. • Streamline process would sunset in 2026. • Might need to consider the density bonus law. AB 678/SB 167 and AB 1515 – New Housing Accountability Act Enforcement Provisions Description: These bills differ from SB 35 (see previous bill) in that they affect every housing development application submitted to local government jurisdictions. As it currently stands, any project that conforms with all 'objective' general plan and zoning regulations may not be denied, or reduced in density, unless specific findings abou t detrimental impacts are concluded. These bills require that local government provide the applicant with a list of any inconsistencies between a proposed project and all local plans, zoning, and standards within 30 to 60 days after the housing application is complete. If this is not provided, then the project application will be 'deemed consistent' with all local policies. AB 1515 provides support for proposed housing projects in court, if the application provides evidence of policy consistency, even when local government finds the project to not be compliant with local plans, zoning, and standards. Summary and Update of Recent Housing Legislation Page 2 of 7 Possible Impacts to City: ● This could impact project appeals. ● Would require quick “turn-around/review time” for all reviewing departments. ● Could discredit decisions of advisory bodies, especially architectural review. SB 166 – Expansion of No-Net Loss to Loss of Affordability Description: Currently, the existing "no net loss" provision outlined in state law does not allow jurisdictions to downzone sites or approve projects that propose less density than shown in their housing elements, unless there are enough remaining sites to meet the regional housing need assigned (“RHNA”) to the city. This bill requires that similar findings be made if sites are not developed for the income category expressed in the housing element and extends the mandate to charter cities. Possible Impacts to City: ● Limited impact to City at this time. ● City currently has sufficient zoned land to meet, and exceed, our current RHNA. ● Should all those parcels be developed, the City would need to look into re -zoning for higher density to accommodate future RHNA numbers. RETURN OF RENTAL INCLUSIONARY HOUSING AB 1505/SB 277 – Restoration of Inclusionary Housing Authority for Rental Units Description: These two bills supersede the 2009 Court of Appeal’s decision in Palmer/Sixth Street Properties L.P. v. City of Los Angeles prohibiting local agencies from requiring affordable units in rental housing projects. AB 1505 provides specific authorization for these requirements, which is important since inclusionary requirements are one of the few options local jurisdictions use to increase affordable, rental housing. Possible Impacts to City: ● Positive impact to City; the City’s Inclusionary Housing Program is one of the main ways in which affordable housing is developed in the community. ● Positive impact to Affordable Housing Fund; will allow for greater funding assistance to non-profit housing developers building affordable housing. ● Will aid to City meeting RHNA requirements in lower income categories. Summary and Update of Recent Housing Legislation Page 3 of 7 DISTRICTS AND ZONES TO STREAMLINE DEVELOPMENT AB 73 – Housing Sustainability Districts Description: This would allow local jurisdictions to create housing sustainability districts, under the approval of the HCD. These districts would have to meet designated conditions, including zoning and a specified amount of low and moderate income level housing unit s. The residences would be eligible to be permitted through a ministerial review process. Any proposed district development would have to include an EIR for approval by the HCD. The EIR would be valid for any proposed housing project in the district for the next 10 years. Reasons to deny housing projects in these areas would have to be very specific, thus making it difficult to deny applications. Similar to SB 35, the bill requires payment of prevailing wages and use of a "skilled and trained workforce" for projects with more than 10 units. Potential “zoning incentive payments” administered by HCD would be available to local agencies adopting these districts. Possible Impacts to City: ● Could aid in increased housing production. ● Would be expensive and time consuming for City to establish specific plan and EIR. ● If City chooses to create a District, additional funds may be available from HCD. SB 540 – Workforce Housing Opportunity Zones Description: This authorizes local jurisdictions to establish Workforce Housing Opportunity Zones by preparing an environmental impact report (EIR) and a specific plan displaying the zone. The Zone must require a specific amount of low- and moderate-income housing opportunities. Once the specific plan is adopted, any housing development that satisfies certain criteria must be approved, unless the local government makes specified and limited findings regarding the site. The local government must approve housing developments that are consistent with the plan and meet certain criteria within 60 days after the application is deemed complete. Payment of prevailing wages and related requirements under the Labor Code is a required by this bill. No additional environmental review would be required for projects within the zone, but the EIR is to be updated every five years. HCD may provide grants or no -interest loans to jurisdictions to develop their specific plans and required EIR. Possible Impacts to City: ● Could streamline the development of unit qualifying under our Workforce Housing Program (currently underway). ● Would require significant time and funds for specific plan and EIR creation for limited niche of housing stock. ● Could work in regions surrounding jobs centers. Summary and Update of Recent Housing Legislation Page 4 of 7 HOUSING ELEMENT ANNUAL REPORT REQUIREMENTS SB 35/AB 879 – Enhanced Annual Reporting Description: Both these bills would require additional annual reporting for local jurisdictions. Under SB 35, cities and counties would have provide housing element compliance, including the number of entitlements, permits, and certificates of occupancy issued for housing projects. AB 879 outlines technical requirements for annual reports, additional to those under SB 35. See below for a more specific description of AB 879. Possible Impacts to City: ● City already has an in-depth annual reporting process, and would only require modifying certain items. ● Limited impact to City. ● Potential timing of reporting could be difficult, especially if a large amount of supplemental data needs to be collected. ● Would perhaps need to build a digital tool to aid Staff for reporting methods. HOUSING ELEMENT REQUIREMENTS AB 1397/AB 879/AB 72 – Increasing and Enforcing Housing Element Requirements Description: AB 1397 would enact restrictions on the ability of local jurisdictions to designate non - vacant sites as suitable for housing development and would create numerous additional technical requirements for projects on these designated housing sites, including availability of water, sewer, and utilities. Current law requires jurisdictions to approve multi-family housing projects 'by-right' on sites rezoned to achieve housing element compliance. The bill requires that projects designate at least 20 percent of the units to lower income households, thus qualifying for by-right approval. AB 879 supplements SB 35 in that it adds technical requirements for annual reports regarding housing element compliance. It also directs HCD to evaluate the reasonableness of local governm ent fees charged under the Mitigation Fee Act. by June 30, 2019. This could potentially reduce mitigation fees without providing other funding for services and infrastructure of a new development. AB 72 amends section 65585 of the Government Code relating to housing, and grants authority to the HCD to review city action for compliance or non -compliance with a housing element. When the HCD decides non-compliance for a city action, and the city fails to perform corrective actions, the HCD is then authorized to revoke former findings of compliance and notify the Attorney General under this bill. Summary and Update of Recent Housing Legislation Page 5 of 7 Possible Impacts to City: ● City has a certified housing element with ample sites available to meet the RHNA. ● At time of next housing element update, the City will work to comply with all new legislation. ● Limited impacts as City continues to have sufficient sites, or will work to create sufficient housing opportunities within the City. ● Could possibly be an issue with timing, if HCD needs to review fees before they are presented to City Council. FUNDING FOR HOUSING SB 2 – Permanent Source of Affordable Housing Funding and Funding for Planning through Document Fee on Non-Housing Real Estate Description: This bill is an urgency measure, known as the “Building Homes and Jobs Act” which would provide a permanent source of funding for affordable housing projects by requiring a $75 fee on each recorded document, up to a maximum $225 per parcel. The addition of this fee is projected to raise about $200 million per year, in which the majority will be provided to local governments to accelerate housing production. A portion of the funds would also be distributed to HCD for homeless prevention purposes. Possible Impacts to City: ● Significant benefit to City to fund more affordable housing projects. ● Significant benefit to City to work with HCD on homeless prevention projects. ● City could receive significant BEGIN funds to replenish our successful first time homebuyer down payment assistance program. SB 3 – Veterans and Affordable Housing Bonds Description: This bill is an urgency measure, which places a bond measure to raise $3 billion for existing state affordable housing programs and $1 billion for the veterans' home purchase program on the November 6, 2018 ballot. Possible Impacts to City: ● This bond would create significant opportunities within the community for new affordable housing and new veterans housing opportunities, likely managed by our non-profit housing partners. ● Could provide an outlet for Staff to apply for new grant opportunities for funding. Summary and Update of Recent Housing Legislation Page 6 of 7 AB 1568 – Neighborhood and Infill Finance and Transit Improvements Act Description: Allows for cities to direct a portion of its local sales and use taxes and transaction and use taxes to an “enhanced infrastructure financing district” (EIF D) if the area is an infill site and specific affordable housing requirements are met. Possible Impacts to City: ● This could impact current housing projects, including the San Luis Ranch and Avila Ranch developments. AB 571 – Farmworker Housing Description: Intended to make the farmworker state low-income housing tax credit program more flexible requiring only 50% of the units funded under the program to be occupied by farmworker households. This bill also allows for advance payments of up to 20% of annual operating costs and measure at migrant farm labor centers. Possible Impacts to City: ● Limited impact to City as we farm worker housing is a less common demand. ● Could benefit our non-profit housing partners if they are interested in farmer worker tax credit funded projects. EXPIRING AFFORDABILITY RESTRICTIONS AB 1521 – Expiring Affordability Restrictions Description: This bill strengthens the law to ensure the preservation of assisted affordable housing developments and gives HCD additional enforcement authority. AB 1521 would (1) require owners to provide notice of use restrictions that are expiring after January 1, 2021 to all prospective and existing tenants within 3 years of the scheduled expiration of rental restrictions; (2) expand potential remedies for failure to provide notice to include the reposition of prior restrictions, restitution of improper rent increases, and award of attorney's fees and costs to a prevailing plaintiff; (3) require HCD to certify persons or entities that are eligible to purchase the development and to receive notice of the expiring restrictions based on their experience with affordable housing; (4) revise the procedure regarding the owner's ability to accept an offer to purchase; and (5) require HCD to monitor compliance and provide an annual report to the legislature starting March 31, 2019. Summary and Update of Recent Housing Legislation Page 7 of 7 Possible Impacts to City: ● City would benefit from advanced notice of possibility of an affordable dwelling unit to turn back to market rate unit, giving time for local non -profits and the City to act on keeping the unit affordable. ● Tenants would also benefit knowing they have three years left in the affordable housing unit before their rents increase. ACCESSORY DWELLING UNIT ‘CLEANUP’ LEGISLATION AB 494/SB 229 – Easing Restrictions on ADU Construction Description: AB 494 reduces maximum parking that may be required to one space per unit, regardless of number of bedrooms, and eliminates city’s ability to prohibit tandem parking or parking in setback areas. It also allows for ADUs to be rented separately from primary residence. SB 229 requires certain ADUs to be permitted on all lots zoned for single -family or multi- family uses that include an existing or proposed single -family dwelling. It also restricts ability of special districts and water corporations to impose utility connection fees and capacity charges on new ADUs, and authorizes ordinance to prohibit the sale of an ADU separate from the primary residence. Possible Impacts to City: ● No parking impact on City as we currently do not require any new parking for new ADUs. ● City already allows ADUs on all residential zoned properties which qualify. ● Would impact City, currently not able to charge utility connection fees and capacity charges on new, detached ADUs.