AB 1934: Planning and zoning: development bonuses: mixed-use projects.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-09-28
The Planning and Zoning Law requires, when an applicant proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus and other incentives or concessions for the production of lower income housing units or for the donation of land within the development if the developer, among other things, agrees to construct a specified percentage of units for very low, low-, or moderate-income households or qualifying residents.
This bill, when an applicant for approval of a commercial development has entered into an agreement for partnered housing with an affordable housing developer to contribute affordable housing through a joint project or 2 separate projects encompassing affordable housing, would, until January 1, 2022, require a city, county, or city and county to grant to the commercial developer a development bonus, as specified. The bill would define the development bonus to mean incentives mutually agreed upon by the developer and the jurisdiction that may include but are not limited to, specified changes in land use requirements. This bill would also require a city or county to submit to the Department of Housing and Community Development information describing an approved commercial development bonus. By increasing the duties of local officials relating to the administration of development bonuses, this bill would create a state-mandated local program.
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.
The Planning and Zoning Law requires, when an applicant proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus and other incentives or concessions for the production of lower income housing units or for the donation of land within the development if the developer, among other things, agrees to construct a specified percentage of units for very low, low-, or moderate-income households or qualifying residents.
This bill, when an applicant for approval of a commercial development has entered into an agreement for partnered housing with an affordable housing developer to contribute affordable housing through a joint project or 2 separate projects encompassing affordable housing, would, until January 1, 2022, require a city, county, or city and county to grant to the commercial developer a development bonus, as specified. The bill would define the development bonus to mean incentives mutually agreed upon by the developer and the jurisdiction that may include but are not limited to, specified changes in land use requirements. This bill would also require a city or county to submit to the Department of Housing and Community Development information describing an approved commercial development bonus. By increasing the duties of local officials relating to the administration of development bonuses, this bill would create a state-mandated local program.
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.
The Planning and Zoning Law requires, when an applicant proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus and other incentives or concessions for the production of lower income housing units or for the donation of land within the development if the developer, among other things, agrees to construct a specified percentage of units for very low, low-, or moderate-income households or qualifying residents.
This bill, when an applicant for approval for of a commercial development agrees to partner has entered into an agreement for partnered housing with an affordable housing developer to construct contribute affordable housing through a joint project or 2 separate projects encompassing affordable housing, would would, until January 1, 2022, require a city, county, or city and county to grant to the commercial developer a development bonus, as specified. The bill would define the development bonus to mean incentives mutually agreed upon by the developer and the jurisdiction that may include but are not limited to, specified variances. changes in land use requirements. This bill would also require a city or county to submit to the Department of Housing and Community Development information describing an approved commercial development bonus. By increasing the duties of local officials relating to the administration of development bonuses, this bill would create a state-mandated local program.
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.
The Planning and Zoning Law requires, when an applicant proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus and other incentives or concessions for the production of lower income housing units or for the donation of land within the development if the developer, among other things, agrees to construct a specified percentage of units for very low, low-, or moderate-income households or qualifying residents.
This bill, when an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a joint project or 2 separate projects encompassing affordable housing, would require a city, county, or city and county to grant to the commercial developer a development bonus, as specified. The bill would define the development bonus to mean incentives mutually agreed upon by the developer and the jurisdiction that may include but are not limited to, specified variances. By increasing the duties of local officials relating to the administration of development bonuses, this bill would create a state-mandated local program.
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.
The Planning and Zoning Law requires, when an applicant proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus and other incentives or concessions for the production of lower income housing units or for the donation of land within the development if the developer, among other things, agrees to construct a specified percentage of units for very low, low-, or moderate-income households or qualifying residents.
This bill, when an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a joint project or 2 separate projects encompassing affordable housing, would require a city, county, or city and county to grant to the commercial developer a development bonus, as specified. The bill would define the development bonus to mean incentives mutually agreed upon by the developer and the jurisdiction including, but that may include but are not limited to, specified variances. By increasing the duties of local officials relating to the administration of development bonuses, this bill would create a state-mandated local program.
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.
The Planning and Zoning Law requires, when an applicant proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus and other incentives or concessions for the production of lower income housing units or for the donation of land within the development if the developer, among other things, agrees to construct a specified percentage of units for very low, low-, or moderate-income households or qualifying residents.
This bill would, bill, when an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a mixed-used project for which the housing will be located onsite at the proposed commercial development, joint project or 2 separate projects encompassing affordable housing, would require a city, county, or city and county to grant to the commercial developer a density development bonus, as specified. The bill would define the development bonus to mean incentives mutually agreed upon by the developer and the jurisdiction including, but not limited to, specified variances. By increasing the duties of local officials relating to the administration of density development bonuses, this bill would create a state-mandated local program.
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.
The Planning and Zoning Law requires, when an applicant proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus and other incentives or concessions for the production of lower income housing units or for the donation of land within the development if the developer, among other things, agrees to construct a specified percentage of units for very low, low-, or moderate-income households or qualifying residents.
This bill would, when an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a mixed-used project for which the housing will be either located onsite at the proposed commercial development or located within a one-mile radius of the proposed commercial development, require a city, county, or city and county to grant to the commercial developer a density bonus, as specified. By increasing the duties of local officials relating to the administration of density bonuses, this bill would create a state-mandated local program.
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.
The Planning and Zoning Law requires, when an applicant proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus and other incentives or concessions for the production of lower income housing units or for the donation of land within the development if the developer, among other things, agrees to construct a specified percentage of units for very low, low-, or moderate-income households or qualifying residents. Existing law requires continued affordability for 55 years or longer, as specified, of all very low and low-income units that qualified an applicant for a density bonus. Existing law defines the term housing development for these purposes to mean a development project for 5 or more residential units, as specified.
This bill would specify that for these purposes the term housing development may include a mixed-use project or a commercial development with a housing component. By increasing the duties of local officials relating to the administration of density bonuses, this bill would create a state-mandated local program.
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.
This bill would, when an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a mixed-used project for which the housing will be either located onsite at the proposed commercial development or located within a one-mile radius of the proposed commercial development, require a city, county, or city and county to grant to the commercial developer a density bonus, as specified. By increasing the duties of local officials relating to the administration of density bonuses, this bill would create a state-mandated local program.
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.
The Planning and Zoning Law requires, when an applicant proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus and other incentives or concessions for the production of lower income housing units or for the donation of land within the development if the developer, among other things, agrees to construct a specified percentage of units for very low, low-, or moderate-income households or qualifying residents. Existing law requires continued affordability for 55 years or longer, as specified, of all very low and low-income units that qualified an applicant for a density bonus. Existing law defines the term housing development for these purposes to mean a development project for 5 or more residential units, as specified.
This bill would specify that for these purposes the term housing development may include a mixed-use project or a commercial development with a housing component. By increasing the duties of local officials relating to the administration of density bonuses, this bill would create a state-mandated local program.
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.
The Legislature finds and declares that the development of affordable housing is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 65915.7 of the Government Code, as proposed to be added by this act, shall apply to all cities, including charter cities.
SEC. 2.Section 65915.7 is added to the Government Code, to read:65915.7.(a)When an applicant for approval of a commercial development has entered into an agreement for partnered housing described in subdivision (c) to contribute affordable housing through a joint project or two separate projects encompassing affordable housing, the city, county, or city and county shall grant to the commercial developer a development bonus as prescribed in subdivision (b).Housing shall be constructed on the site of the commercial development or on a site that is all of the following:
(1)Within the boundaries of the local government.
(2)In close proximity to public amenities including schools and employment centers.
(3)Located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code.
(b)The development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following:
(1)Up to a 20-percent increase in maximum allowable intensity in the General Plan.
(2)Up to a 20-percent increase in maximum allowable floor area ratio.
(3)Up to a 20-percent increase in maximum height requirements.
(4)Up to a 20-percent reduction in minimum parking requirements.
(5)Use of a limited-use/limited-application elevator for upper floor accessibility.
(6)An exception to a zoning ordinance or other land use regulation.
(c)For the purposes of this section, the agreement for partnered housing shall be between the commercial developer and the housing developer, shall identify how the commercial developer will contribute affordable housing, and shall be approved by the city, county, or city and county.
(d)For the purposes of this section, affordable housing may be contributed by the commercial developer in one of the following manners:
(1)The commercial developer may directly build the units.
(2)The commercial developer may donate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing.
(3)The commercial developer may make a cash payment to the affordable housing developer that shall be used towards the costs of constructing the affordable housing project.
(e)For the purposes of this section, subparagraph (A) of paragraph (3) of subdivision (c) of Section 65915 shall apply.
(f)Nothing in this section shall preclude any additional allowances or incentives offered to developers by local governments pursuant to law or regulation.
(g)If the developer of the affordable units does not commence with construction of those units in accordance with timelines ascribed by the agreement described in subdivision (c), the local government may withhold certificates of occupancy for the commercial development under construction until the developer has completed construction of the affordable units.
(h)In order to qualify for a development bonus under this section, a commercial developer shall partner with a housing developer that provides at least 30 percent of the total units for low-income households or at least 15 percent of the total units for very low-income households.
(i)Nothing in this section shall preclude an affordable housing developer from seeking a density bonus, concessions or incentives, waivers or reductions of development standards, or parking ratios under Section 65915.
(j)A development bonus pursuant to this section shall not include a reduction or waiver of the requirements within an ordinance that requires the payment of a fee by a commercial developer for the promotion or provision of affordable housing.
(k)A city or county shall submit to the Department of Housing and Community Development, as part of the annual report required by Section 65400, information describing a commercial development bonus approved pursuant to this section, including the terms of the agreements between the commercial developer and the affordable housing developer, and the developers and the local jurisdiction, and the number of affordable units constructed as part of the agreements.
(l)For purposes of this section, partner shall mean formation of a partnership, limited liability company, corporation, or other entity recognized by the state in which the commercial development applicant and the affordable housing developer are each partners, members, shareholders or other participants, or a contract or agreement between a commercial development applicant and affordable housing developer for the development of both the commercial and the affordable housing properties.
(m)This section shall remain in effect only until January 1, 2022, and as of that date is repealed.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
The Legislature finds and declares that the development of affordable housing is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 65915.7 of the Government Code, as proposed to be added by this act, shall apply to all cities, including charter cities.
SEC. 2.Section 65915.7 is added to the Government Code, to read:65915.7.(a)When an applicant for approval of a commercial development has entered into an agreement for partnered housing described in subdivision (c) to contribute affordable housing through a joint project or two separate projects encompassing affordable housing, the city, county, or city and county shall grant to the commercial developer a development bonus as prescribed in subdivision (b).Housing shall be constructed on the site of the commercial development or on a site that is all of the following:
(1)Within the boundaries of the local government.
(2)In close proximity to public amenities including schools and employment centers.
(3)Located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code.
(b)The development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following:
(1)Up to a 20-percent increase in maximum allowable intensity in the General Plan.
(2)Up to a 20-percent increase in maximum allowable floor area ratio.
(3)Up to a 20-percent increase in maximum height requirements.
(4)Up to a 20-percent reduction in minimum parking requirements.
(5)Use of a limited-use/limited-application elevator for upper floor accessibility.
(6)An exception to a zoning ordinance or other land use regulation.
(c)For the purposes of this section, the agreement for partnered housing shall be between the commercial developer and the housing developer, shall identify how the commercial developer will contribute affordable housing, and shall be approved by the city, county, or city and county.
(d)For the purposes of this section, affordable housing may be contributed by the commercial developer in one of the following manners:
(1)The commercial developer may directly build the units.
(2)The commercial developer may donate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing.
(3)The commercial developer may make a cash payment to the affordable housing developer that shall be used towards the costs of constructing the affordable housing project.
(e)For the purposes of this section, subparagraph (A) of paragraph (3) of subdivision (c) of Section 65915 shall apply.
(f)Nothing in this section shall preclude any additional allowances or incentives offered to developers by local governments pursuant to law or regulation.
(g)If the developer of the affordable units does not commence with construction of those units in accordance with timelines ascribed by the agreement described in subdivision (c), the local government may withhold certificates of occupancy for the commercial development under construction until the developer has completed construction of the affordable units.
(h)In order to qualify for a development bonus under this section, a commercial developer shall partner with a housing developer that provides at least 30 percent of the total units for low-income households or at least 15 percent of the total units for very low-income households.
(i)Nothing in this section shall preclude an affordable housing developer from seeking a density bonus, concessions or incentives, waivers or reductions of development standards, or parking ratios under Section 65915.
(j)A development bonus pursuant to this section shall not include a reduction or waiver of the requirements within an ordinance that requires the payment of a fee by a commercial developer for the promotion or provision of affordable housing.
(k)A city or county shall submit to the Department of Housing and Community Development, as part of the annual report required by Section 65400, information describing a commercial development bonus approved pursuant to this section, including the terms of the agreements between the commercial developer and the affordable housing developer, and the developers and the local jurisdiction, and the number of affordable units constructed as part of the agreements.
(l)For purposes of this section, partner shall mean formation of a partnership, limited liability company, corporation, or other entity recognized by the state in which the commercial development applicant and the affordable housing developer are each partners, members, shareholders or other participants, or a contract or agreement between a commercial development applicant and affordable housing developer for the development of both the commercial and the affordable housing properties.
(m)This section shall remain in effect only until January 1, 2022, and as of that date is repealed.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
The Legislature finds and declares that the development of affordable housing is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 65915.7 of the Government Code, as proposed to be added by this act, shall apply to all cities, including charter cities.
SEC. 2.Section 65915.7 is added to the Government Code, to read:65915.7.(a)When an applicant for approval for of a commercial development agrees to partner with an affordable housing developer has entered into an agreement for partnered housing described in subdivision (c) to construct contribute affordable housing through a joint project or two separate projects encompassing affordable housing, the city, county, or city and county shall grant to the commercial developer a development bonus as prescribed in subdivision (b). Offsite housing constructed according to this subdivision shall be Housing shall be constructed on the site of the commercial development or on a site that is all of the following:
(1)Within the boundaries of the local government.
(2)In close proximity to public amenities including schools and employment centers.
(3)Located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code.
(b)The development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following:
(1)Up to a 20-percent variance increase in maximum allowable intensity in the General Plan, zoning ordinance, or other regulation. Plan.
(2)Up to a 20-percent variance increase in maximum allowable floor area ratio.
(3)Up to a 20-percent variance increase in maximum height requirements.
(4)Up to a 20-percent variance reduction in minimum parking requirements.
(5)A specific use Use of a limited-use/limited-application elevator for upper floor accessibility.
(6)An exception to a zoning ordinance or other land use regulation.
(c)For the purposes of this section, the agreement for partnered housing and commercial developments shall be between the commercial developer and the housing developer, shall identify how the commercial developer will contribute affordable housing, and shall be approved by the affordable housing developer, the commercial developer, and the local government. city, county, or city and county.
(d)For the purposes of this section, affordable housing may be contributed by the commercial developer in one of the following manners:
(1)The commercial developer may directly build the units.
(2)The commercial developer may dedicate donate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing.
(3)The commercial developer may make an in-lieu a cash payment to the affordable housing developer that shall be used towards the costs of constructing the affordable housing construction on a pending project.
(e)For the purposes of this section, subparagraph (A) of paragraph (3) of subdivision (c) of Section 65915 shall apply.
(f)Nothing in this section shall preclude any additional allowances or incentives offered to developers by local governments pursuant to law or regulation.
(g)(1)If the developer of the affordable units does not commence with construction of those units in accordance with timelines ascribed by the agreement described in subdivision (c), the local government may withhold certificates of occupancy for the commercial development under construction until the developer has completed construction of the affordable units.
(2)For the purposes of this subdivision, commence with construction shall mean either of the following:
(A)Commence or complete the construction of affordable units.
(B)Issuance of building permits for the construction of the affordable units.
(h)In order to qualify for a development bonus under this section, a commercial developer shall partner with a housing developer that provides at least 30 percent of the total units for low-income households or at least 15 percent of the total units for very low-income households.
(i)Nothing in this section shall preclude an applicant for a development bonus affordable housing developer from seeking a density bonus, concessions or incentives, waivers or reductions of development standards, or parking ratios under Section 65915.
(j)A development bonus pursuant to this section shall not include a reduction or waiver of fees for affordable housing or authorize noncompliance with other affordable housing the requirements within a local commercial linkage and impact fee ordinance. an ordinance that requires the payment of a fee by a commercial developer for the promotion or provision of affordable housing.
(k)A city or county shall submit to the Department of Housing and Community Development, as part of the annual report required by Section 65400, information describing a commercial development bonus approved pursuant to this section, including the terms of the agreements between the commercial developer and the affordable housing developer, and the developers and the local jurisdiction, and the number of affordable units constructed as part of the agreements.
(k)
(l)For purposes of this section, partner shall mean formation of a partnership, limited liability company, corporation, or other entity recognized by the state in which the commercial development applicant and the affordable housing developer are each partners, members, shareholders or other participants, or a contract or agreement between a commercial development applicant and affordable housing developer for the development of both the commercial and the affordable housing properties.
(m)This section shall remain in effect only until January 1, 2022, and as of that date is repealed.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
The Legislature finds and declares that the development of affordable housing is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 65915.7 of the Government Code, as proposed to be added by this act, shall apply to all cities, including charter cities.
SEC. 2.Section 65915.7 is added to the Government Code, to read:65915.7.(a)When an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing, the city, county, or city and county shall, in addition to any density bonus and incentives or concessions granted to the affordable housing developer as prescribed in subparagraph (C) of paragraph (2) of subdivision (d) of Section 65915, shall grant to the commercial developer a development bonus as prescribed in subdivision (b). Offsite housing constructed according to this subdivision shall be all of the following:
(1)Within the boundaries of the local government.
(2)In close proximity to public amenities including schools and employment centers.
(3)Located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code.
(b)The development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following:
(1)Up to a 20-percent variance in maximum allowable intensity in the General Plan, zoning ordinance, or other regulation.
(2)Up to a 20-percent variance in maximum allowable floor area ratio.
(3)Up to a 20-percent variance in maximum height requirements.
(4)Up to a 20-percent variance in minimum parking requirements.
(5)A specific use of a limited-use/limited-application elevator for upper floor accessibility.
(c)For the purposes of this section, the agreement for partnered housing and commercial developments shall be approved by the affordable housing developer, the commercial developer, and the local government.
(d)For the purposes of this section, affordable housing may be contributed by the commercial developer in one of the following manners:
(1)The commercial developer may directly build the units.
(2)The commercial developer may dedicate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing.
(3)The commercial developer may make an in-lieu payment to the affordable housing developer that shall be used towards the costs of affordable housing construction on a pending project.
(e)For the purposes of this section, subparagraph (A) of paragraph (3) of subdivision (c) of Section 65915 shall apply.
(f)Nothing in this section shall preclude any additional allowances or incentives offered to developers by local governments pursuant to law or regulation.
(g)(1)If the developer of the affordable units does not commence with construction of those units in accordance with timelines ascribed by the agreement described in subdivision (c), the local government may withhold certificates of occupancy for any market rate units the commercial development under construction until the developer has completed construction of the affordable units.
(2)For the purposes of this subdivision, commence with construction shall mean either of the following:
(A)Commence or complete the construction of affordable units.
(B)Issuance of building permits for the construction of the affordable units.
(h)In order to qualify for a development bonus under this section, a commercial developer shall partner with a housing developer that provides at least 30% of the total units for low-income households or at least 15% of the total units for very low-income households.
(i)Nothing in this section shall preclude an applicant for a development bonus from seeking a density bonus, concessions or incentives, waivers or reductions of development standards, or parking ratios under Section 65915.
(j)A development bonus pursuant to this section shall not include a reduction of fees for affordable housing or authorize noncompliance with other affordable housing requirements within a local commercial linkage and impact fee ordinance.
(h)
(k)For purposes of this section, partner shall mean formation of a partnership, limited liability company, corporation, or other entity recognized by the state in which the commercial development applicant and the affordable housing developer are each partners, members, shareholders or other participants, or a contract or agreement between a commercial development applicant and affordable housing developer for the development of both the commercial and the affordable housing properties.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
The Legislature finds and declares that the development of affordable housing is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 65915.7 of the Government Code, as proposed to be added by this act, shall apply to all cities, including charter cities.
SEC. 2.Section 65915.7 is added to the Government Code, to read:65915.7.(a)When an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing, the city, county, or city and county shall, in addition to any density bonus and incentives or concessions granted to the affordable housing developer as prescribed in subparagraph (C) of paragraph (2) of subdivision (d) of Section 65915, grant to the commercial developer a development bonus as prescribed in subdivision (b). Offsite housing constructed according to this subdivision shall be all of the following:
(1)Within the boundaries of the local government.
(2)In close proximity to public amenities including schools and employment centers.
(3)In close proximity to both pedestrian amenities and transit corridors.
(3)Located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code.
(b)The development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following:
(1)Up to a 20-percent variance in maximum allowable intensity in the General Plan, zoning ordinance, or other regulation.
(2)Up to a 20-percent variance in maximum allowable floor area ratio.
(3)Up to a 20-percent variance in maximum height requirements.
(4)Up to a 20-percent variance in minimum parking requirements.
(5)A specific use of a limited-use/limited-application elevator for upper floor accessibility.
(c)For the purposes of this section, the agreement for partnered housing and commercial developments shall be approved by the affordable housing developer, the commercial developer, and the local government.
(d)For the purposes of this section, affordable housing may be contributed by the commercial developer in one of the following manners:
(1)The commercial developer may directly build the units.
(2)The commercial developer may dedicate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing.
(3)The commercial developer may make an in-lieu payment to the affordable housing developer that shall be used towards the costs of affordable housing construction on a pending project.
(e)For the purposes of this section, subparagraph (A) of paragraph (3) of subdivision (c) of Section 65915 shall apply.
(f)Nothing in this section shall preclude any additional allowances or incentives offered to developers by local governments pursuant to law or regulation.
(g)(1)If the developer of the affordable units does not commence with construction of those units in accordance with timelines ascribed by the agreement described in subdivision (c), the local government may withhold certificates of occupancy for any market rate units under construction until the developer has completed construction of the affordable units.
(2)For the purposes of this subdivision, commence with construction shall mean either of the following:
(A)Commence or complete the construction of affordable units.
(B)Issuance of building permits for the construction of the affordable units.
(h)For purposes of this section, partner shall mean formation of a partnership, limited liability company, corporation, or other entity recognized by the state in which the commercial development applicant and the affordable housing developer are each partners, members, shareholders or other participants, or a contract or agreement between a commercial development applicant and affordable housing developer for the development of both the commercial and the affordable housing properties.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
The Legislature finds and declares that the development of affordable housing is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 65915.7 of the Government Code, as proposed to be added by this act, shall apply to all cities, including charter cities.
SEC. 2.Section 65915.7 is added to the Government Code, to read:65915.7.(a)When an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a mixed-used project for which the housing will be located onsite at the proposed commercial development, joint project or two separate projects encompassing affordable housing, the city, county, or city and county shall, in addition to any density bonus and incentives or concessions granted to the affordable housing developer as prescribed in subparagraph (C) of paragraph (2) of subdivision (d) of Section 65915, grant to the commercial developer a density development bonus as prescribed in subdivision (b). Offsite housing constructed according to this subdivision shall be all of the following:
(1)Within the boundaries of the local government.
(2)In close proximity to public amenities including schools and employment centers.
(3)In close proximity to both pedestrian amenities and transit corridors.
(b)The density development bonus granted to the commercial developer shall mean exceptions resulting in significant cost reductions over the maximum allowable intensity in the general plan, zoning ordinance, or other regulation of the city, county, or city and county, including, but not limited to, floor area ratios, and may include modification to development standards such as height and parking requirements. incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following:
(1)Up to a 20-percent variance in maximum allowable intensity in the General Plan, zoning ordinance, or other regulation.
(2)Up to a 20-percent variance in maximum allowable floor area ratio.
(3)Up to a 20-percent variance in maximum height requirements.
(4)Up to a 20-percent variance in minimum parking requirements.
(5)A specific use of a limited-use/limited-application elevator for upper floor accessibility.
(c)For the purposes of this section, the agreement for partnered housing and commercial developments shall be approved by the affordable housing developer, the commercial developer, and the local government.
(d)For the purposes of this section, affordable housing may be contributed by the commercial developer in one of the following manners:
(1)The commercial developer may directly build the units.
(2)The commercial developer may dedicate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing.
(3)The commercial developer may make an in-lieu payment to the affordable housing developer that shall be used towards the costs of affordable housing construction on a pending project.
(e)For the purposes of this section, subparagraph (A) of paragraph (3) of subdivision (c) of Section 65915 shall apply.
(f)Nothing in this section shall preclude any additional allowances or incentives offered to developers by local governments pursuant to law or regulation.
(g)(1)If the developer of the affordable units does not commence with construction of those units in accordance with timelines ascribed by the agreement described in subdivision (c), the local government may withhold certificates of occupancy for any market rate units under construction until the developer has completed construction of the affordable units.
(2)For the purposes of this subdivision, commence with construction shall mean either of the following:
(A)Commence or complete the construction of affordable units.
(B)Issuance of building permits for the construction of the affordable units.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
The Legislature finds and declares that the development of affordable housing is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 65915.7 of the Government Code, as proposed to be added by this act, shall apply to all cities, including charter cities.
SEC. 2.Section 65915.7 is added to the Government Code, to read:65915.7.(a)When an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a mixed-used project for which the housing will be either located onsite at the proposed commercial development or located within a one-mile radius of the proposed commercial development, the city, county, or city and county shall, in addition to any density bonus and incentives or concessions granted to the affordable housing developer as prescribed in Section 65915, grant to the commercial developer a density bonus as prescribed in subdivision (b).
(b)The density bonus granted to the commercial developer shall mean a density increase of up to 20 percent variance exceptions resulting in significant cost reductions over the maximum allowable intensity in the general plan, zoning ordinance, or other regulation of the city, county, or city and countys zoning ordinance or regulation, county, including, but not limited to, floor area ratios or commercial linkage fees. ratios, and may include modification to development standards such as height and parking requirements.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
The Legislature finds and declares that the development of affordable housing is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 65915.7 of the Government Code, as proposed to be added by this act, shall apply to all cities, including charter cities.
SEC. 2.Section 65915.7 is added to the Government Code, to read:65915.7.(a)When an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a mixed-used project for which the housing will be either located onsite at the proposed commercial development or located within a one-mile radius of the proposed commercial development, the city, county, or city and county shall, in addition to any density bonus and incentives or concessions granted to the affordable housing developer as prescribed in Section 65915, grant to the commercial developer a density bonus as prescribed in subdivision (b).
(b)The density bonus granted to the commercial developer shall mean a density increase of up to 20 percent variance of the city, county, or city and countys zoning ordinance or regulation, including, but not limited to, floor area ratios or commercial linkage fees.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
SECTION 1.Section 65915 of the Government Code is amended to read:65915.(a)When an applicant seeks a density bonus for a housing development within, or for the donation of land for housing within, the jurisdiction of a city, county, or city and county, that local government shall provide the applicant with incentives or concessions for the production of housing units and child care facilities as prescribed in this section. All cities, counties, or cities and counties shall adopt an ordinance that specifies how compliance with this section will be implemented. Failure to adopt an ordinance shall not relieve a city, county, or city and county from complying with this section.
(b)(1)A city, county, or city and county shall grant one density bonus, the amount of which shall be as specified in subdivision (f), and incentives or concessions, as described in subdivision (d), when an applicant for a housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded pursuant to this section, that will contain at least any one of the following:
(A)Ten percent of the total units of a housing development for lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(B)Five percent of the total units of a housing development for very low income households, as defined in Section 50105 of the Health and Safety Code.
(C)A senior citizen housing development, as defined in Sections 51.3 and 51.12 of the Civil Code, or a mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code.
(D)Ten percent of the total dwelling units in a common interest development, as defined in Section 4100 of the Civil Code, for persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, provided that all units in the development are offered to the public for purchase.
(2)For purposes of calculating the amount of the density bonus pursuant to subdivision (f), an applicant who requests a density bonus pursuant to this subdivision shall elect whether the bonus shall be awarded on the basis of subparagraph (A), (B), (C), or (D) of paragraph (1).
(3)For the purposes of this section, total units or total dwelling units does not include units added by a density bonus awarded pursuant to this section or any local law granting a greater density bonus.
(c)(1)An applicant shall agree to, and the city, county, or city and county shall ensure, the continued affordability of all very low and low-income rental units that qualified the applicant for the award of the density bonus for 55 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. Rents for the lower income density bonus units shall be set at an affordable rent as defined in Section 50053 of the Health and Safety Code.
(2)An applicant shall agree to, and the city, county, or city and county shall ensure that, the initial occupant of all for-sale units that qualified the applicant for the award of the density bonus are persons and families of very low, low, or moderate income, as required, and that the units are offered at an affordable housing cost, as that cost is defined in Section 50052.5 of the Health and Safety Code. The local government shall enforce an equity sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The following apply to the equity sharing agreement:
(A)Upon resale, the seller of the unit shall retain the value of any improvements, the downpayment, and the sellers proportionate share of appreciation. The local government shall recapture any initial subsidy, as defined in subparagraph (B), and its proportionate share of appreciation, as defined in subparagraph (C), which amount shall be used within five years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote home ownership.
(B)For purposes of this subdivision, the local governments initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate-income household, plus the amount of any downpayment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value.
(C)For purposes of this subdivision, the local governments proportionate share of appreciation shall be equal to the ratio of the local governments initial subsidy to the fair market value of the home at the time of initial sale.
(3)(A)An applicant shall be ineligible for a density bonus or any other incentives or concessions under this section if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through a public entitys valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units, and either of the following applies:
(i)The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in subdivision (b).
(ii)Each unit in the development, exclusive of a managers unit or units, is affordable to, and occupied by, either a lower or very low income household.
(B)For the purposes of this paragraph, replace shall mean either of the following:
(i)If any dwelling units described in subparagraph (A) are occupied on the date of application, the proposed housing development shall provide at least the same number of units of equivalent size or type, or both, to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. For unoccupied dwelling units described in subparagraph (A) in a development with occupied units, the proposed housing development shall provide units of equivalent size or type, or both, to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category in the same proportion of affordability as the occupied units. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2).
(ii)If all dwelling units described in subparagraph (A) have been vacated or demolished within the five-year period preceding the application, the proposed housing development shall provide at least the same number of units of equivalent size or type, or both, as existed at the highpoint of those units in the five-year period preceding the application to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy at that time, if known. If the incomes of the persons and families in occupancy at the highpoint is not known, then one-half of the required units shall be made available at affordable rent or affordable housing cost to, and occupied by, very low income persons and families and one-half of the required units shall be made available for rent at affordable housing costs to, and occupied by, low-income persons and families. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2).
(C)Paragraph (3) of subdivision (c) does not apply to an applicant seeking a density bonus for a proposed housing development if his or her application was submitted to, or processed by, a city, county, or city and county before January 1, 2015.
(d)(1)An applicant for a density bonus pursuant to subdivision (b) may submit to a city, county, or city and county a proposal for the specific incentives or concessions that the applicant requests pursuant to this section, and may request a meeting with the city, county, or city and county. The city, county, or city and county shall grant the concession or incentive requested by the applicant unless the city, county, or city and county makes a written finding, based upon substantial evidence, of any of the following:
(A)The concession or incentive is not required in order to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c).
(B)The concession or incentive would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households.
(C)The concession or incentive would be contrary to state or federal law.
(2)The applicant shall receive the following number of incentives or concessions:
(A)One incentive or concession for projects that include at least 10 percent of the total units for lower income households, at least 5 percent for very low income households, or at least 10 percent for persons and families of moderate income in a common interest development.
(B)Two incentives or concessions for projects that include at least 20 percent of the total units for lower income households, at least 10 percent for very low income households, or at least 20 percent for persons and families of moderate income in a common interest development.
(C)Three incentives or concessions for projects that include at least 30 percent of the total units for lower income households, at least 15 percent for very low income households, or at least 30 percent for persons and families of moderate income in a common interest development.
(3)The applicant may initiate judicial proceedings if the city, county, or city and county refuses to grant a requested density bonus, incentive, or concession. If a court finds that the refusal to grant a requested density bonus, incentive, or concession is in violation of this section, the court shall award the plaintiff reasonable attorneys fees and costs of suit. Nothing in this subdivision shall be interpreted to require a local government to grant an incentive or concession that has a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Nothing in this subdivision shall be interpreted to require a local government to grant an incentive or concession that would have an adverse impact on any real property that is listed in the California Register of Historical Resources. The city, county, or city and county shall establish procedures for carrying out this section, that shall include legislative body approval of the means of compliance with this section.
(e)(1)In no case may a city, county, or city and county apply any development standard that will have the effect of physically precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted by this section. An applicant may submit to a city, county, or city and county a proposal for the waiver or reduction of development standards that will have the effect of physically precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted under this section, and may request a meeting with the city, county, or city and county. If a court finds that the refusal to grant a waiver or reduction of development standards is in violation of this section, the court shall award the plaintiff reasonable attorneys fees and costs of suit. Nothing in this subdivision shall be interpreted to require a local government to waive or reduce development standards if the waiver or reduction would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Nothing in this subdivision shall be interpreted to require a local government to waive or reduce development standards that would have an adverse impact on any real property that is listed in the California Register of Historical Resources, or to grant any waiver or reduction that would be contrary to state or federal law.
(2)A proposal for the waiver or reduction of development standards pursuant to this subdivision shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to subdivision (d).
(f)For the purposes of this chapter, density bonus means a density increase over the otherwise maximum allowable residential density as of the date of application by the applicant to the city, county, or city and county. The applicant may elect to accept a lesser percentage of density bonus. The amount of density bonus to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in subdivision (b).
(1)For housing developments meeting the criteria of subparagraph (A) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows:
| Percentage Low-Income Units | Percentage Density Bonus |
| 10 | 20 |
| 11 | 21.5 |
| 12 | 23 |
| 13 | 24.5 |
| 14 | 26 |
| 15 | 27.5 |
| 17 | 30.5 |
| 18 | 32 |
| 19 | 33.5 |
| 20 | 35 |
(2)For housing developments meeting the criteria of subparagraph (B) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows:
| Percentage Very Low Income Units | Percentage Density Bonus |
| 5 | 20 |
| 6 | 22.5 |
| 7 | 25 |
| 8 | 27.5 |
| 9 | 30 |
| 10 | 32.5 |
| 11 | 35 |
(3)For housing developments meeting the criteria of subparagraph (C) of paragraph (1) of subdivision (b), the density bonus shall be 20 percent of the number of senior housing units.
(4)For housing developments meeting the criteria of subparagraph (D) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows:
| Percentage Moderate-Income Units | Percentage Density Bonus |
| 10 | 5 |
| 11 | 6 |
| 12 | 7 |
| 13 | 8 |
| 14 | 9 |
| 15 | 10 |
| 16 | 11 |
| 17 | 12 |
| 18 | 13 |
| 19 | 14 |
| 20 | 15 |
| 21 | 16 |
| 22 | 17 |
| 23 | 18 |
| 24 | 19 |
| 25 | 20 |
| 26 | 21 |
| 27 | 22 |
| 28 | 23 |
| 29 | 24 |
| 30 | 25 |
| 31 | 26 |
| 32 | 27 |
| 33 | 28 |
| 34 | 29 |
| 35 | 30 |
| 36 | 31 |
| 37 | 32 |
| 38 | 33 |
| 39 | 34 |
| 40 | 35 |
(5)All density calculations resulting in fractional units shall be rounded up to the next whole number. The granting of a density bonus shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval.
(g)(1)When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to a city, county, or city and county in accordance with this subdivision, the applicant shall be entitled to a 15-percent increase above the otherwise maximum allowable residential density for the entire development, as follows:
| Percentage Very Low Income | Percentage Density Bonus |
| 10 | 15 |
| 11 | 16 |
| 12 | 17 |
| 13 | 18 |
| 14 | 19 |
| 15 | 20 |
| 16 | 21 |
| 17 | 22 |
| 18 | 23 |
| 19 | 24 |
| 20 | 25 |
| 21 | 26 |
| 22 | 27 |
| 23 | 28 |
| 24 | 29 |
| 25 | 30 |
| 26 | 31 |
| 27 | 32 |
| 28 | 33 |
| 29 | 34 |
| 30 | 35 |
(2)This increase shall be in addition to any increase in density mandated by subdivision (b), up to a maximum combined mandated density increase of 35 percent if an applicant seeks an increase pursuant to both this subdivision and subdivision (b). All density calculations resulting in fractional units shall be rounded up to the next whole number. Nothing in this subdivision shall be construed to enlarge or diminish the authority of a city, county, or city and county to require a developer to donate land as a condition of development. An applicant shall be eligible for the increased density bonus described in this subdivision if all of the following conditions are met:
(A)The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map, or residential development application.
(B)The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to very low income households in an amount not less than 10 percent of the number of residential units of the proposed development.
(C)The transferred land is at least one acre in size or of sufficient size to permit development of at least 40 units, has the appropriate general plan designation, is appropriately zoned with appropriate development standards for development at the density described in paragraph (3) of subdivision (c) of Section 65583.2, and is or will be served by adequate public facilities and infrastructure.
(D)The transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the transferred land, not later than the date of approval of the final subdivision map, parcel map, or residential development application, except that the local government may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Section 65583.2 if the design is not reviewed by the local government prior to the time of transfer.
(E)The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with paragraphs (1) and (2) of subdivision (c), which shall be recorded on the property at the time of the transfer.
(F)The land is transferred to the local agency or to a housing developer approved by the local agency. The local agency may require the applicant to identify and transfer the land to the developer.
(G)The transferred land shall be within the boundary of the proposed development or, if the local agency agrees, within one-quarter mile of the boundary of the proposed development.
(H)A proposed source of funding for the very low income units shall be identified not later than the date of approval of the final subdivision map, parcel map, or residential development application.
(h)(1)When an applicant proposes to construct a housing development that conforms to the requirements of subdivision (b) and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the project, the city, county, or city and county shall grant either of the following:
(A)An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the child care facility.
(B)An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility.
(2)The city, county, or city and county shall require, as a condition of approving the housing development, that the following occur:
(A)The child care facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the density bonus units are required to remain affordable pursuant to subdivision (c).
(B)Of the children who attend the child care facility, the children of very low income households, lower income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low income households, lower income households, or families of moderate income pursuant to subdivision (b).
(3)Notwithstanding any requirement of this subdivision, a city, county, or city and county shall not be required to provide a density bonus or concession for a child care facility if it finds, based upon substantial evidence, that the community has adequate child care facilities.
(4)Child care facility, as used in this section, means a child day care facility other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and schoolage child care centers.
(i)Housing development, as used in this section, means a development project for five or more residential units. For the purposes of this section, housing development also includes a subdivision or common interest development, as defined in Section 4100 of the Civil Code, approved by a city, county, or city and county and consists of residential units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined in subdivision (d) of Section 65863.4, where the result of the rehabilitation would be a net increase in available residential units. For purposes of this section, housing development may include a mixed-use project or a commercial development that includes a housing component. For the purpose of calculating a density bonus, the residential units shall be on contiguous sites that are the subject of one development application, but do not have to be based upon individual subdivision maps or parcels. The density bonus shall be permitted in geographic areas of the housing development other than the areas where the units for the lower income households are located.
(j)(1)The granting of a concession or incentive shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval. This provision is declaratory of existing law.
(2)Except as provided in subdivisions (d) and (e), the granting of a density bonus shall not be interpreted to require the waiver of a local ordinance or provisions of a local ordinance unrelated to development standards.
(k)For the purposes of this chapter, concession or incentive means any of the following:
(1)A reduction in site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required that results in identifiable, financially sufficient, and actual cost reductions.
(2)Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located.
(3)Other regulatory incentives or concessions proposed by the developer or the city, county, or city and county that result in identifiable, financially sufficient, and actual cost reductions.
(l)Subdivision (k) does not limit or require the provision of direct financial incentives for the housing development, including the provision of publicly owned land, by the city, county, or city and county, or the waiver of fees or dedication requirements.
(m)This section does not supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code).
(n)If permitted by local ordinance, nothing in this section shall be construed to prohibit a city, county, or city and county from granting a density bonus greater than what is described in this section for a development that meets the requirements of this section or from granting a proportionately lower density bonus than what is required by this section for developments that do not meet the requirements of this section.
(o)For purposes of this section, the following definitions shall apply:
(1)Development standard includes a site or construction condition, including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an onsite open-space requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation.
(2)Maximum allowable residential density means the density allowed under the zoning ordinance and land use element of the general plan, or if a range of density is permitted, means the maximum allowable density for the specific zoning range and land use element of the general plan applicable to the project. Where the density allowed under the zoning ordinance is inconsistent with the density allowed under the land use element of the general plan, the general plan density shall prevail.
(p)(1) Except as provided in paragraphs (2) and (3), upon the request of the developer, a city, county, or city and county shall not require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development meeting the criteria of subdivisions (b) and (c), that exceeds the following ratios:
(A)Zero to one bedroom: one onsite parking space.
(B)Two to three bedrooms: two onsite parking spaces.
(C)Four and more bedrooms: two and one-half parking spaces.
(2)Notwithstanding paragraph (1), if a development includes the maximum percentage of low- or very low income units provided for in paragraphs (1) and (2) of subdivision (f) and is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code, and there is unobstructed access to the major transit stop from the development, then, upon the request of the developer, a city, county, or city and county shall not impose a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds 0.5 spaces per bedroom. For purposes of this subdivision, a development shall have unobstructed access to a major transit stop if a resident is able to access the major transit stop without encountering natural or constructed impediments.
(3)Notwithstanding paragraph (1), if a development consists solely of rental units, exclusive of a managers unit or units, with an affordable housing cost to lower income families, as provided in Section 50052.5 of the Health and Safety Code, then, upon the request of the developer, a city, county, or city and county shall not impose a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds the following ratios:
(A)If the development is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code, and there is unobstructed access to the major transit stop from the development, the ratio shall not exceed 0.5 spaces per unit.
(B)If the development is a for-rent housing development for individuals who are 62 years of age or older that complies with Sections 51.2 and 51.3 of the Civil Code, the ratio shall not exceed 0.5 spaces per unit. The development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.
(C)If the development is a special needs housing development, as defined in Section 51312 of the Health and Safety Code, the ratio shall not exceed 0.3 spaces per unit. The development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.
(4)If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subdivision, a development may provide on-site parking through tandem parking or uncovered parking, but not through on-street parking.
(5)This subdivision shall apply to a development that meets the requirements of subdivisions (b) and (c), but only at the request of the applicant. An applicant may request parking incentives or concessions beyond those provided in this subdivision pursuant to subdivision (d).
(6)This subdivision does not preclude a city, county, or city and county from reducing or eliminating a parking requirement for development projects of any type in any location.
(7)Notwithstanding paragraphs (2) and (3), if a city, county, city and county, or an independent consultant has conducted an areawide or jurisdictionwide parking study in the last seven years, then the city, county, or city and county may impose a higher vehicular parking ratio not to exceed the ratio described in paragraph (1), based upon substantial evidence found in the parking study, that includes, but is not limited to, an analysis of parking availability, differing levels of transit access, walkability access to transit services, the potential for shared parking, the effect of parking requirements on the cost of market-rate and subsidized developments, and the lower rates of car ownership for low- and very low income individuals, including seniors and special needs individuals. The city, county, or city and county shall pay the costs of any new study. The city, county, or city and county shall make findings, based on a parking study completed in conformity with this paragraph, supporting the need for the higher parking ratio.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
(a)When an applicant seeks a density bonus for a housing development within, or for the donation of land for housing within, the jurisdiction of a city, county, or city and county, that local government shall provide the applicant with incentives or concessions for the production of housing units and child care facilities as prescribed in this section. All cities, counties, or cities and counties shall adopt an ordinance that specifies how compliance with this section will be implemented. Failure to adopt an ordinance shall not relieve a city, county, or city and county from complying with this section.
(b)(1)A city, county, or city and county shall grant one density bonus, the amount of which shall be as specified in subdivision (f), and incentives or concessions, as described in subdivision (d), when an applicant for a housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded pursuant to this section, that will contain at least any one of the following:
(A)Ten percent of the total units of a housing development for lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(B)Five percent of the total units of a housing development for very low income households, as defined in Section 50105 of the Health and Safety Code.
(C)A senior citizen housing development, as defined in Sections 51.3 and 51.12 of the Civil Code, or a mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code.
(D)Ten percent of the total dwelling units in a common interest development, as defined in Section 4100 of the Civil Code, for persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, provided that all units in the development are offered to the public for purchase.
(2)For purposes of calculating the amount of the density bonus pursuant to subdivision (f), an applicant who requests a density bonus pursuant to this subdivision shall elect whether the bonus shall be awarded on the basis of subparagraph (A), (B), (C), or (D) of paragraph (1).
(3)For the purposes of this section, total units or total dwelling units does not include units added by a density bonus awarded pursuant to this section or any local law granting a greater density bonus.
(c)(1)An applicant shall agree to, and the city, county, or city and county shall ensure, the continued affordability of all very low and low-income rental units that qualified the applicant for the award of the density bonus for 55 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. Rents for the lower income density bonus units shall be set at an affordable rent as defined in Section 50053 of the Health and Safety Code.
(2)An applicant shall agree to, and the city, county, or city and county shall ensure that, the initial occupant of all for-sale units that qualified the applicant for the award of the density bonus are persons and families of very low, low, or moderate income, as required, and that the units are offered at an affordable housing cost, as that cost is defined in Section 50052.5 of the Health and Safety Code. The local government shall enforce an equity sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The following apply to the equity sharing agreement:
(A)Upon resale, the seller of the unit shall retain the value of any improvements, the downpayment, and the sellers proportionate share of appreciation. The local government shall recapture any initial subsidy, as defined in subparagraph (B), and its proportionate share of appreciation, as defined in subparagraph (C), which amount shall be used within five years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote home ownership.
(B)For purposes of this subdivision, the local governments initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate-income household, plus the amount of any downpayment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value.
(C)For purposes of this subdivision, the local governments proportionate share of appreciation shall be equal to the ratio of the local governments initial subsidy to the fair market value of the home at the time of initial sale.
(3)(A)An applicant shall be ineligible for a density bonus or any other incentives or concessions under this section if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through a public entitys valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units, and either of the following applies:
(i)The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in subdivision (b).
(ii)Each unit in the development, exclusive of a managers unit or units, is affordable to, and occupied by, either a lower or very low income household.
(B)For the purposes of this paragraph, replace shall mean either of the following:
(i)If any dwelling units described in subparagraph (A) are occupied on the date of application, the proposed housing development shall provide at least the same number of units of equivalent size or type, or both, to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. For unoccupied dwelling units described in subparagraph (A) in a development with occupied units, the proposed housing development shall provide units of equivalent size or type, or both, to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category in the same proportion of affordability as the occupied units. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2).
(ii)If all dwelling units described in subparagraph (A) have been vacated or demolished within the five-year period preceding the application, the proposed housing development shall provide at least the same number of units of equivalent size or type, or both, as existed at the highpoint of those units in the five-year period preceding the application to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy at that time, if known. If the incomes of the persons and families in occupancy at the highpoint is not known, then one-half of the required units shall be made available at affordable rent or affordable housing cost to, and occupied by, very low income persons and families and one-half of the required units shall be made available for rent at affordable housing costs to, and occupied by, low-income persons and families. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2).
(C)Paragraph (3) of subdivision (c) does not apply to an applicant seeking a density bonus for a proposed housing development if his or her application was submitted to, or processed by, a city, county, or city and county before January 1, 2015.
(d)(1)An applicant for a density bonus pursuant to subdivision (b) may submit to a city, county, or city and county a proposal for the specific incentives or concessions that the applicant requests pursuant to this section, and may request a meeting with the city, county, or city and county. The city, county, or city and county shall grant the concession or incentive requested by the applicant unless the city, county, or city and county makes a written finding, based upon substantial evidence, of any of the following:
(A)The concession or incentive is not required in order to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c).
(B)The concession or incentive would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households.
(C)The concession or incentive would be contrary to state or federal law.
(2)The applicant shall receive the following number of incentives or concessions:
(A)One incentive or concession for projects that include at least 10 percent of the total units for lower income households, at least 5 percent for very low income households, or at least 10 percent for persons and families of moderate income in a common interest development.
(B)Two incentives or concessions for projects that include at least 20 percent of the total units for lower income households, at least 10 percent for very low income households, or at least 20 percent for persons and families of moderate income in a common interest development.
(C)Three incentives or concessions for projects that include at least 30 percent of the total units for lower income households, at least 15 percent for very low income households, or at least 30 percent for persons and families of moderate income in a common interest development.
(3)The applicant may initiate judicial proceedings if the city, county, or city and county refuses to grant a requested density bonus, incentive, or concession. If a court finds that the refusal to grant a requested density bonus, incentive, or concession is in violation of this section, the court shall award the plaintiff reasonable attorneys fees and costs of suit. Nothing in this subdivision shall be interpreted to require a local government to grant an incentive or concession that has a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Nothing in this subdivision shall be interpreted to require a local government to grant an incentive or concession that would have an adverse impact on any real property that is listed in the California Register of Historical Resources. The city, county, or city and county shall establish procedures for carrying out this section, that shall include legislative body approval of the means of compliance with this section.
(e)(1)In no case may a city, county, or city and county apply any development standard that will have the effect of physically precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted by this section. An applicant may submit to a city, county, or city and county a proposal for the waiver or reduction of development standards that will have the effect of physically precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted under this section, and may request a meeting with the city, county, or city and county. If a court finds that the refusal to grant a waiver or reduction of development standards is in violation of this section, the court shall award the plaintiff reasonable attorneys fees and costs of suit. Nothing in this subdivision shall be interpreted to require a local government to waive or reduce development standards if the waiver or reduction would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Nothing in this subdivision shall be interpreted to require a local government to waive or reduce development standards that would have an adverse impact on any real property that is listed in the California Register of Historical Resources, or to grant any waiver or reduction that would be contrary to state or federal law.
(2)A proposal for the waiver or reduction of development standards pursuant to this subdivision shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to subdivision (d).
(f)For the purposes of this chapter, density bonus means a density increase over the otherwise maximum allowable residential density as of the date of application by the applicant to the city, county, or city and county. The applicant may elect to accept a lesser percentage of density bonus. The amount of density bonus to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in subdivision (b).
(1)For housing developments meeting the criteria of subparagraph (A) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows:
| Percentage Low-Income Units | Percentage Density Bonus |
| 10 | 20 |
| 11 | 21.5 |
| 12 | 23 |
| 13 | 24.5 |
| 14 | 26 |
| 15 | 27.5 |
| 17 | 30.5 |
| 18 | 32 |
| 19 | 33.5 |
| 20 | 35 |
(2)For housing developments meeting the criteria of subparagraph (B) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows:
| Percentage Very Low Income Units | Percentage Density Bonus |
| 5 | 20 |
| 6 | 22.5 |
| 7 | 25 |
| 8 | 27.5 |
| 9 | 30 |
| 10 | 32.5 |
| 11 | 35 |
(3)For housing developments meeting the criteria of subparagraph (C) of paragraph (1) of subdivision (b), the density bonus shall be 20 percent of the number of senior housing units.
(4)For housing developments meeting the criteria of subparagraph (D) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows:
| Percentage Moderate-Income Units | Percentage Density Bonus |
| 10 | 5 |
| 11 | 6 |
| 12 | 7 |
| 13 | 8 |
| 14 | 9 |
| 15 | 10 |
| 16 | 11 |
| 17 | 12 |
| 18 | 13 |
| 19 | 14 |
| 20 | 15 |
| 21 | 16 |
| 22 | 17 |
| 23 | 18 |
| 24 | 19 |
| 25 | 20 |
| 26 | 21 |
| 27 | 22 |
| 28 | 23 |
| 29 | 24 |
| 30 | 25 |
| 31 | 26 |
| 32 | 27 |
| 33 | 28 |
| 34 | 29 |
| 35 | 30 |
| 36 | 31 |
| 37 | 32 |
| 38 | 33 |
| 39 | 34 |
| 40 | 35 |
(5)All density calculations resulting in fractional units shall be rounded up to the next whole number. The granting of a density bonus shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval.
(g)(1)When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to a city, county, or city and county in accordance with this subdivision, the applicant shall be entitled to a 15-percent increase above the otherwise maximum allowable residential density for the entire development, as follows:
| Percentage Very Low Income | Percentage Density Bonus |
| 10 | 15 |
| 11 | 16 |
| 12 | 17 |
| 13 | 18 |
| 14 | 19 |
| 15 | 20 |
| 16 | 21 |
| 17 | 22 |
| 18 | 23 |
| 19 | 24 |
| 20 | 25 |
| 21 | 26 |
| 22 | 27 |
| 23 | 28 |
| 24 | 29 |
| 25 | 30 |
| 26 | 31 |
| 27 | 32 |
| 28 | 33 |
| 29 | 34 |
| 30 | 35 |
(2)This increase shall be in addition to any increase in density mandated by subdivision (b), up to a maximum combined mandated density increase of 35 percent if an applicant seeks an increase pursuant to both this subdivision and subdivision (b). All density calculations resulting in fractional units shall be rounded up to the next whole number. Nothing in this subdivision shall be construed to enlarge or diminish the authority of a city, county, or city and county to require a developer to donate land as a condition of development. An applicant shall be eligible for the increased density bonus described in this subdivision if all of the following conditions are met:
(A)The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map, or residential development application.
(B)The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to very low income households in an amount not less than 10 percent of the number of residential units of the proposed development.
(C)The transferred land is at least one acre in size or of sufficient size to permit development of at least 40 units, has the appropriate general plan designation, is appropriately zoned with appropriate development standards for development at the density described in paragraph (3) of subdivision (c) of Section 65583.2, and is or will be served by adequate public facilities and infrastructure.
(D)The transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the transferred land, not later than the date of approval of the final subdivision map, parcel map, or residential development application, except that the local government may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Section 65583.2 if the design is not reviewed by the local government prior to the time of transfer.
(E)The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with paragraphs (1) and (2) of subdivision (c), which shall be recorded on the property at the time of the transfer.
(F)The land is transferred to the local agency or to a housing developer approved by the local agency. The local agency may require the applicant to identify and transfer the land to the developer.
(G)The transferred land shall be within the boundary of the proposed development or, if the local agency agrees, within one-quarter mile of the boundary of the proposed development.
(H)A proposed source of funding for the very low income units shall be identified not later than the date of approval of the final subdivision map, parcel map, or residential development application.
(h)(1)When an applicant proposes to construct a housing development that conforms to the requirements of subdivision (b) and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the project, the city, county, or city and county shall grant either of the following:
(A)An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the child care facility.
(B)An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility.
(2)The city, county, or city and county shall require, as a condition of approving the housing development, that the following occur:
(A)The child care facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the density bonus units are required to remain affordable pursuant to subdivision (c).
(B)Of the children who attend the child care facility, the children of very low income households, lower income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low income households, lower income households, or families of moderate income pursuant to subdivision (b).
(3)Notwithstanding any requirement of this subdivision, a city, county, or city and county shall not be required to provide a density bonus or concession for a child care facility if it finds, based upon substantial evidence, that the community has adequate child care facilities.
(4)Child care facility, as used in this section, means a child day care facility other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and schoolage child care centers.
(i)Housing development, as used in this section, means a development project for five or more residential units. For the purposes of this section, housing development also includes a subdivision or common interest development, as defined in Section 4100 of the Civil Code, approved by a city, county, or city and county and consists of residential units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined in subdivision (d) of Section 65863.4, where the result of the rehabilitation would be a net increase in available residential units. For purposes of this section, housing development may include a mixed-use project or a commercial development that includes a housing component. For the purpose of calculating a density bonus, the residential units shall be on contiguous sites that are the subject of one development application, but do not have to be based upon individual subdivision maps or parcels. The density bonus shall be permitted in geographic areas of the housing development other than the areas where the units for the lower income households are located.
(j)(1)The granting of a concession or incentive shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval. This provision is declaratory of existing law.
(2)Except as provided in subdivisions (d) and (e), the granting of a density bonus shall not be interpreted to require the waiver of a local ordinance or provisions of a local ordinance unrelated to development standards.
(k)For the purposes of this chapter, concession or incentive means any of the following:
(1)A reduction in site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required that results in identifiable, financially sufficient, and actual cost reductions.
(2)Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located.
(3)Other regulatory incentives or concessions proposed by the developer or the city, county, or city and county that result in identifiable, financially sufficient, and actual cost reductions.
(l)Subdivision (k) does not limit or require the provision of direct financial incentives for the housing development, including the provision of publicly owned land, by the city, county, or city and county, or the waiver of fees or dedication requirements.
(m)This section does not supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code).
(n)If permitted by local ordinance, nothing in this section shall be construed to prohibit a city, county, or city and county from granting a density bonus greater than what is described in this section for a development that meets the requirements of this section or from granting a proportionately lower density bonus than what is required by this section for developments that do not meet the requirements of this section.
(o)For purposes of this section, the following definitions shall apply:
(1)Development standard includes a site or construction condition, including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an onsite open-space requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation.
(2)Maximum allowable residential density means the density allowed under the zoning ordinance and land use element of the general plan, or if a range of density is permitted, means the maximum allowable density for the specific zoning range and land use element of the general plan applicable to the project. Where the density allowed under the zoning ordinance is inconsistent with the density allowed under the land use element of the general plan, the general plan density shall prevail.
(p)(1) Except as provided in paragraphs (2) and (3), upon the request of the developer, a city, county, or city and county shall not require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development meeting the criteria of subdivisions (b) and (c), that exceeds the following ratios:
(A)Zero to one bedroom: one onsite parking space.
(B)Two to three bedrooms: two onsite parking spaces.
(C)Four and more bedrooms: two and one-half parking spaces.
(2)Notwithstanding paragraph (1), if a development includes the maximum percentage of low- or very low income units provided for in paragraphs (1) and (2) of subdivision (f) and is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code, and there is unobstructed access to the major transit stop from the development, then, upon the request of the developer, a city, county, or city and county shall not impose a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds 0.5 spaces per bedroom. For purposes of this subdivision, a development shall have unobstructed access to a major transit stop if a resident is able to access the major transit stop without encountering natural or constructed impediments.
(3)Notwithstanding paragraph (1), if a development consists solely of rental units, exclusive of a managers unit or units, with an affordable housing cost to lower income families, as provided in Section 50052.5 of the Health and Safety Code, then, upon the request of the developer, a city, county, or city and county shall not impose a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds the following ratios:
(A)If the development is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code, and there is unobstructed access to the major transit stop from the development, the ratio shall not exceed 0.5 spaces per unit.
(B)If the development is a for-rent housing development for individuals who are 62 years of age or older that complies with Sections 51.2 and 51.3 of the Civil Code, the ratio shall not exceed 0.5 spaces per unit. The development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.
(C)If the development is a special needs housing development, as defined in Section 51312 of the Health and Safety Code, the ratio shall not exceed 0.3 spaces per unit. The development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.
(4)If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subdivision, a development may provide on-site parking through tandem parking or uncovered parking, but not through on-street parking.
(5)This subdivision shall apply to a development that meets the requirements of subdivisions (b) and (c), but only at the request of the applicant. An applicant may request parking incentives or concessions beyond those provided in this subdivision pursuant to subdivision (d).
(6)This subdivision does not preclude a city, county, or city and county from reducing or eliminating a parking requirement for development projects of any type in any location.
(7)Notwithstanding paragraphs (2) and (3), if a city, county, city and county, or an independent consultant has conducted an areawide or jurisdictionwide parking study in the last seven years, then the city, county, or city and county may impose a higher vehicular parking ratio not to exceed the ratio described in paragraph (1), based upon substantial evidence found in the parking study, that includes, but is not limited to, an analysis of parking availability, differing levels of transit access, walkability access to transit services, the potential for shared parking, the effect of parking requirements on the cost of market-rate and subsidized developments, and the lower rates of car ownership for low- and very low income individuals, including seniors and special needs individuals. The city, county, or city and county shall pay the costs of any new study. The city, county, or city and county shall make findings, based on a parking study completed in conformity with this paragraph, supporting the need for the higher parking ratio.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
|
Date
|
Status
|
|---|---|
| Aug 9, 2016 | Read second time. Ordered to third reading. |
| Jun 2, 2016 | Read third time. Passed. Ordered to the Senate. |
| Jun 2, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 68. Noes 9. Page 5176.) |
| Jun 6, 2016 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jun 9, 2016 | Referred to Com. on T. & H. |
| Jun 14, 2016 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on T. & H. |
| Jun 21, 2016 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Jun 30, 2016 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (June 28). |
| Aug 1, 2016 | Read second time and amended. Re-referred to Com. on APPR. |
| Aug 8, 2016 | From committee: Be placed on second reading file pursuant to Senate Rule 28.8. |
| Jun 2, 2016 | Assembly Rule 69 suspended. (Page 5166.) |
| Aug 18, 2016 | Read third time and amended. Ordered to second reading. |
| Aug 19, 2016 | Read second time. Ordered to third reading. |
| Aug 23, 2016 | Read third time. Passed. Ordered to the Assembly. |
| Aug 23, 2016 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5266.). |
| Aug 24, 2016 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 26 pursuant to Assembly Rule 77. |
| Aug 29, 2016 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Aug 29, 2016 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 74. Noes 6. Page 6352.). |
| Sep 6, 2016 | Enrolled and presented to the Governor at 5:30 p.m. |
| Apr 14, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended. |
| Feb 16, 2016 | From printer. May be heard in committee March 17. |
| Feb 25, 2016 | Referred to Coms. on H. & C.D. and L. GOV. |
| Apr 4, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended. |
| Apr 5, 2016 | Re-referred to Com. on H. & C.D. |
| Apr 7, 2016 | (pending re-refer to Com. on L. GOV.) |
| Apr 7, 2016 | Assembly Rule 56 suspended. |
| Apr 7, 2016 | Assembly Rule 56 suspended. (Page 4218.) |
| Apr 13, 2016 | From committee: Do pass and re-refer to Com. on L. GOV. (Ayes 6. Noes 0.) (April 13). Re-referred to Com. on L. GOV. |
| Feb 12, 2016 | Read first time. To print. |
| Apr 18, 2016 | Re-referred to Com. on L. GOV. |
| Apr 21, 2016 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (April 20). Re-referred to Com. on APPR. |
| May 11, 2016 | From committee: Do pass. (Ayes 15. Noes 1.) (May 11). |
| May 12, 2016 | Read second time. Ordered to third reading. |
| Jun 1, 2016 | Read third time and amended. Ordered to third reading. |
| Jun 1, 2016 | Read third time and amended. Ordered to third reading. (Page 5074.) |
| Jun 2, 2016 | Assembly Rule 69 suspended. |
| Jun 2, 2016 | Assembly Rule 69 suspended. (Ayes 68. Noes 9.) |
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Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 29, 2016 | AB 1934 SANTIAGO Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 23, 2016 | Assembly 3rd Reading AB1934 Santiago By McGuire | Senate Floor |
Passed |
|
| Jun 28, 2016 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Transportation and Housing |
Passed |
|
| Jun 2, 2016 | AB 1934 SANTIAGO Assembly Third Reading | Assembly Floor |
Passed |
|
| May 11, 2016 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 20, 2016 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Local Government |
Passed |
|
| Apr 13, 2016 | Do pass and be re-referred to the Committee on [Local Government] | Assembly Standing Committee on Housing and Community Development |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| 319-2085, H. & C.D. | ** Against | Apr 13, 2016 |
| American Planning Association, California Chapter | ** Against | Jun 28, 2016 |
| APA California | * Against | Apr 13, 2016 |
| California Apartment Association | ** Support | Aug 23, 2016 |
| California Association Of Realtors | ** Support | Aug 23, 2016 |
| California Building Industry Association | ** Support | Aug 23, 2016 |
| California Business Properties Association | ** Support | Aug 23, 2016 |
| California Chamber Of Commerce | ** Support | Aug 23, 2016 |
| California Council For Affordable Housing | ** Support | Aug 23, 2016 |
| California Housing Consortium | ** Support | Aug 23, 2016 |
| California State Association Of Counties | ** Support | Apr 20, 2016 |
| City of San Dimas | ** Against | Aug 23, 2016 |
| Coalition for San Francisco and Neighborhoods | * Against | Apr 13, 2016 |
| H. & C.D. | ** Against | Apr 13, 2016 |
| Housing California | ** Support | Apr 20, 2016 |
| League Of California Cities | ** Against | Aug 23, 2016 |
| Lisa Engel | ** Against | Apr 13, 2016 |
| Sacramento, County Of | * Against Unless Amend | Jun 28, 2016 |
| San Francisco Council of Community Housing Organizations | ** Support | Aug 23, 2016 |
| San Gabriel Valley Economic Partnership | ** Support | Aug 23, 2016 |
| San Marcos, City Of | ** Against | Aug 23, 2016 |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 1934
Author:(Santiago)
As Amended Ver:August 18, 2016
Majority vote
ASSEMBLY: | 68-9 | (June 2, 2016) | SENATE: | 39-0 | (August 23, 2016) |
Original Committee Reference: H. & C.D.
SUMMARY: Creates a development bonus when a commercial developer enters into an agreement for partnered housing to contribute affordable housing through a joint project or two separate projects encompassing affordable housing. Specifically, this bill:
- Provides that when a commercial developer has entered into an agreement for partnered housing to contribute affordable housing through a joint project or two separate projects encompassing affordable housing, the local government must grant the commercial developer a development bonus.
- Provides that the agreement for partnered housing shall be between the commercial developer and the housing developer, shall identify how the commercial developer will contribute affordable housing, and shall be approved by the city, county, or city and county.
- States housing shall be constructed on the site of the commercial development or on a site that is all of the following:
- Within the boundaries of the local government;
- In close proximity to public amenities including schools and employment centers; and
- Located within one-half mile of a major transit stop, as defined in Section 21155(b) of the Public Resources Code.
- Defines "partner" as the formation of a partnership, limited liability company, corporation, or other entity recognized by the state in which the commercial development applicant and the affordable housing developer are each partners, members, shareholders or other participants, or a contract or agreement between a commercial development applicant and affordable housing developer for the development of both the commercial and the affordable housing properties.
- Provides that the development bonus for the commercial developer means: incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following:
- Up to a 20% increase in maximum allowable intensity in the General Plan, zoning ordinance, or other regulation.
- Up to a 20% increase in maximum allowable floor area ratio.
- Up to a 20% increase in maximum height requirements.
- Up to a 20% increase in minimum parking requirements.
- Use of a limited-use/limited-application elevator for upper floor accessibility.
- An exception to a zoning ordinance or other land use regulation.
- Provides that affordable housing may be contributed by the commercial developer in one of the following manners:
- The commercial developer may directly build the units.
- The commercial developer may donate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing.
- The commercial developer may make a cash payment to the affordable housing developer that must be used towards the cost of constructing the affordable housing project.
- States that the affordable housing replacement provisions in State Density Bonus Law apply.
- Provides that nothing shall preclude any additional allowances or incentives offered to developers by local governments pursuant to law or regulation.
- Provides that, if the developer of affordable units does not commence construction of the units in accordance with the agreed upon timeline, the local government may withhold certificates of occupancy for the commercial development under construction until the developer has completed construction of the affordable units.
- Requires, in order to qualify for a development bonus, a commercial developer to partner with a housing developer that provides at least 30% of the total units for low-income households or at least 15% of the total units for very low-income households.
- Provides that nothing in this section shall preclude an affordable housing developer from seeking a density bonus, concessions or incentives, waivers or reductions of development standards, or parking ratios under existing density bonus law.
- Provides that a development bonus shall not include a reduction or waiver of the requirements within an ordinance that requires the payment of a fee by a commercial developer for the promotion or provision of affordable housing.
- Provides that a city or county shall submit to the Department of Housing and Community Development, as part of the annual report, information describing an approved commercial development bonus, including the terms of the agreements between the commercial developer and the affordable housing developer, and the developers and the local jurisdiction, and the number of affordable units constructed as part of the agreements.
- Provides that no reimbursement is required by this act because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay the program or level of service.
- Makes findings and declarations that the development of affordable housing is a matter of statewide concern and it is not a municipal affair, and therefore, this bill applies to all cities including charter cities.
- Provides a sunset date of January 1, 2022.
The Senate amendments:
- Add a sunset date of January 1, 2022.
- Provide that a city or county shall submit to the Department of Housing and Community Development, as part of the annual report, information describing an approved commercial development bonus, including the terms of the agreements between the commercial developer and the affordable housing developer, and the developers and the local jurisdiction, and the number of affordable units constructed as part of the agreements.
- Delete the requirement that affordable housing must be in close proximity to both pedestrian amenities and transit corridors, and instead requires housing to be located within one-half mile of a major transit stop, as defined in Public Resources Code Section 21155(b).
- Define "partner" as the formation of a partnership, limited liability company, corporation, or other entity recognized by the state in which the commercial development applicant and the affordable housing developer are each partners, members, shareholders or other participants, or a contract or agreement between a commercial development applicant and affordable housing developer for the development of both the commercial and the affordable housing properties.
- Provide that, if the developer of affordable units does not commence construction of the units in accordance with the agreed upon timeline, the local government may withhold certificates of occupancy for the commercial development, instead of the market rate units, until the developer has completed construction of the affordable units.
- Delete the definition of "commence with construction."
- Require, in order to qualify for a development bonus, a commercial developer to partner with a housing developer that provides at least 30% of the total units for low-income households or at least 15% of the total units for very low-income households.
- Provide that nothing in this section shall preclude an affordable housing developer from seeking a density bonus, concessions or incentives, waivers or reductions of development standards, or parking ratios under existing density bonus law.
- Specify that a development bonus for a commercial developer may include an exception to a zoning ordinance or other land use regulation.
- Make numerous technical, clarifying changes.
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: In 1979 the Legislature enacted density bonus law to help address the affordable housing shortage and to encourage development of more low- and moderate-income housing units. Density bonus is a tool to encourage the production of affordable housing that is used by both market rate and affordable housing developers. In return for inclusion of affordable units in a development, developers are given an increase in density over a city's zoned density and concessions and incentives. The increase in density and concessions and incentives are to offset the cost the affordable units which will be offered at a lower rent, as low as 30% of area median income. Developers that seek a density bonus must agree to restrict very low- and low-income rental units to affordable levels for 55 years.
State law specifies concessions and incentives that a local government may include in its density bonus ordinance including a reduction in site development standards, or a modification of zoning code requirements, or architectural design requirements that exceed the minimum building standards, and approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and are compatible with the project and the surrounding area. A developer or city can also propose other regulatory incentives or concessions that result in identifiable, financially sufficient, and actual cost reductions.
This bill seeks to encourage greater production of affordable units by creating a "development bonus" for commercial developers who partner with an affordable housing developer to construct affordable units. Affordable housing developers would receive a density bonus commensurate with the number of affordable units included in the development plus concessions and incentives. In addition to the density bonus and concessions and incentives provided for the affordable units, the commercial developer would receive a "development bonus" which means incentives agreed upon between the commercial developer and the local government, such as changes in zoning regulations that result in significant cost reductions.
The types of projects promoted by this bill could result in mixed-use developments, or could result in the commercial and residential developments on separate sites. A commercial developer may choose to build the units itself, or may opt to have an affordable housing developer build the units either onsite or offsite. A commercial developer also has the option of making a cash payment to an affordable housing developer to be used towards the cost of constructing the affordable housing project. If the affordable housing developer does not commence with construction at the agreed upon time, the local government may withhold certificates of occupancy for the commercial development under construction until the affordable units are completed.
Senate amendments make numerous technical and clarifying changes, add a reporting requirement, and add a sunset date of January 1, 2022.
Purpose of this bill: According to the author, "Local governments can be wary of high density residential development because of the corresponding increase in demand for public services and infrastructure. Conversely, in an era of tight budgets, local governments have more incentive to approve commercial developments which will increase revenues (i.e. hotels with transient occupancy tax or retail establishments which generate sales tax). AB 1934 represents a solution to all three of these dilemmas: a piece of California's affordable housing crisis solution which brings both residential and commercial developers to the table. …AB 1934 seeks to marry two needs: a) the state's need for affordable housing; and b) local government's desire for increased revenues, by encouraging non-traditional housing developers to enter the market and think outside the box in their developments."
Analysis Prepared by: Rebecca Rabovsky / H. & C.D. / (916) 319-2085 FN: 0004733
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 1934
:
SENATE TRANS. & HOUSING COMMITTEE: 10-0, 6/28/16
AYES: Beall, Cannella, Allen, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski
NO VOTE RECORDED: Bates
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 68-9, 6/2/16 - See last page for vote
DIGEST: This bill creates a development bonus for commercial developers that partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing.
Senate Floor Amendments of 8/18/16 make clarifying changes, require a city or county to report to the Legislature if it grants a development bonus, and add a five-year sunset.
Existing law:
- Requires all cities and counties to adopt an ordinance that specifies how they will implement state density bonus law. Defines “density bonus” as a density increase over the otherwise maximum allowable residential density as of the date of application by the applicant to the local government.
- Requires cities and counties to grant a density bonus when an applicant for a housing development of five or more units seeks and agrees to construct a project that will contain at least any one of the following:
- 10% of the total units for lower income households
- 5% of the total units for very low-income households
- A senior citizen housing development or mobile home park
- 10% of the units in a common-interest development (CID) for moderate-income households
- Requires that the applicant agree to, and the city or county ensure, continued affordability of all low- and very low-income units that qualified the applicant for the density bonus for at least 55 years.
- Requires cities and counties to provide an applicant for density bonus concessions and incentives based on the number of below market-rate units included in the project as follows:
- One incentive or concession, if the project includes at least 10% of the total units for low-income households, 5% for very low-income households, or 10% for moderate-income households in a CID
- Two incentives or concessions, if the project includes at least 20% of the total units for low-income households, 10% for very low-income households, or 20% for moderate-income households in a CID
- Three incentives or concessions, if the project includes at least 30% of the total units for low-income households, 15% for very low-income households, or 30% for moderate-income households in a CID
- Specifies that concessions or incentives may include the following:
- A reduction in site development standards
- A modification of zoning code requirements or architectural design requirements that exceed the minimum building standards, including a reduction in setbacks, square footage requirements, or parking requirements, that results in identifiable, financially sufficient, and actual cost reductions
- Approval of mixed-use zoning in conjunction with the housing project, if commercial, office, industrial, or other land uses will reduce the cost of the housing development, and if such nonresidential uses are compatible with the project
- Other regulatory incentives or concessions proposed by the developer or the city or county that result in identifiable cost reductions
This bill:
- Creates a development bonus for commercial developers that have entered into an agreement for partnered housing to contribute affordable housing through a joint project or two separate projects encompassing affordable housing, in addition to granting incentives and concessions under State Density Bonus Law.
- States that housing shall be constructed on the site of the commercial development or on a site that is all of the following:
- Within the boundaries of the local government
- In close proximity to public amenities, including schools and employment centers
- Located within one-half mile of a major transit stop
- Provides that the development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following:
- Up to a 20% increase in maximum allowable intensity in the General Plan, zoning ordinance, or other regulation
- Up to a 20% variance in maximum allowable floor-area ratio
- Up to a 20% variance in minimum parking requirements
- A specific use of a limited-use/limited-application elevator for upper floor accessibility
- Provides that the agreement for partnered housing and commercial developments shall be approved by the affordable-housing developer, the commercial developer, and the city, county, or city and county.
- Provides that for purposes of this bill, affordable housing may be contributed by the commercial developer in one of the following manners:
- The commercial developer may directly build the units
- The commercial developer may donate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing
- The commercial developer may make a cash payment to the affordable housing developer that shall be used towards the costs of constructing the affordable housing construction
- States that State Density Bonus Law applies.
- Provides that nothing shall preclude any additional allowances or incentives offered to affordable housing developers by local governments pursuant to law or regulation.
- Requires, in order to qualify for a development bonus under this bill, a commercial developer to partner with a housing developer that provides at least 30% of the total units for low-income households or at least 15% of the total units for very low-income households.
- Provides that a development bonus shall not include a reduction of the requirements within an ordinance that requires the payment of a fee by a commercial developer for the promotion or provision of affordable housing.
- Provides that, if the developer of affordable units does not commence construction of the units in accordance with the agreed-upon timeline, the local government may withhold certificates of occupancy for the commercial development under construction until the developer has completed construction of the affordable units.
- Requires a city or county to submit to the Department of Housing and Community Development, as part of an existing required annual report, information describing a commercial development bonus, including the terms of the agreements between the commercial developer and the affordable housing developer, the developers and the local jurisdiction, and the number of affordable units constructed as part of the agreements.
- Provides that this bill shall only remain in effect until January 1, 2022.
Comments
- Purpose. According to the author, California’s housing costs have far outpaced those of other states in the last half-century. As of 2015, the typical California home costs $440,000, or two-and-a-half times the national average; and the average monthly rent in California is $1,240, or about 50% higher than in other states. It is possible to offset the effects of high land costs through more dense development. For this reason, California has enacted an affordable housing density bonus law. Local governments, however, can be wary of high-density residential development because of the corresponding increase in demand for public services and infrastructure. Conversely, local governments have more incentive to approve commercial developments, which increase revenues (i.e., through transient occupancy taxes or retail establishments that generate sales taxes).
This bill seeks to marry two needs — the need for more affordable housing and local government’s desire for increased revenue — by encouraging non-traditional housing developers to enter the market. This bill creates a new development bonus that shall be provided by local governments to affordable housing developers and commercial developers who partner together to construct affordable housing. The variances include, but are not limited to, an increase in floor-area rations; a specific use of a limited use/limited application elevator; a decrease in the required minimum amount of parking spaces; an increase in building height; a decrease in set-back requirements; or other incentives as agreed to by the local government and the commercial developer.
- Density bonus law. Given California’s high land and construction costs for housing, it is extremely difficult for the private market to provide housing units that are affordable to low- and even moderate-income households. Public subsidy is often required to fill the financial gap on affordable units. Density bonus law allows public entities to reduce or even eliminate subsidies for a particular project by allowing a developer to include more total units in a project than would otherwise be allowed by the local zoning in exchange for affordable units. Allowing more total units permits the developer to spread the cost of the affordable units more broadly over the market-rate units. The idea of density bonus law is to cover at least some of the financing gap of affordable housing with regulatory incentives, rather than additional subsidy.
Under existing law, if a developer proposes to construct a housing development with a specified percentage of affordable units, the city or county must provide all of the following benefits: a density bonus, incentives, or concessions (hereafter referred to as incentives); waiver of any development standards that prevent the developer from utilizing the density bonus or incentives; and reduced parking standards.
- Development bonuses and affordable housing. This bill seeks to encourage greater production of affordable housing by creating a development bonus for commercial developers who partner with affordable-housing developers to construct affordable-housing units. The affordable-housing developers would receive a density bonus that corresponds with the number of affordable units included in the development, as well as receive concessions and incentives. The commercial developer would receive a “development bonus,” which means incentives agreed upon by the commercial developer and the local government, such as variances in zoning regulations that result in significant cost reductions.
The housing contemplated in this bill could be mixed-use developments or workforce housing on the same property as the commercial development, or the housing could be “off site.” The off-site housing must be within the boundaries of the local government, in close proximity to schools and employment centers, and within a half-mile of public transit. The housing could be built by either the commercial developer or the affordable-housing developer.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
California Apartment Association
California Association of Realtors
California Building Industry Association
California Business Properties Association
California Chamber of Commerce
California Council for Affordable Housing
California Housing Consortium
San Francisco Council of Community Housing Organizations
San Gabriel Valley Economic Partnership
OPPOSITION: (Verified 8/19/16)
City of Camarillo
City of Sacramento
City of San Dimas
City of San Marcos
ASSEMBLY FLOOR: 68-9, 6/2/16
AYES: Achadjian, Alejo, Arambula, Atkins, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Roger Hernández, Holden, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Low, Maienschein, Mayes, McCarty, Medina, Mullin, Nazarian, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NOES: Travis Allen, Baker, Brough, Hadley, Harper, Irwin, Lopez, Mathis, Obernolte
NO VOTE RECORDED: Bigelow, Beth Gaines, Melendez
8/19/16 18:49:14
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 1934
:
SENATE TRANS. & HOUSING COMMITTEE: 10-0, 6/28/16
AYES: Beall, Cannella, Allen, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski
NO VOTE RECORDED: Bates
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 68-9, 6/2/16 - See last page for vote
DIGEST: This bill creates a development bonus for commercial developers that partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing.
Existing law:
- Requires all cities and counties to adopt an ordinance that specifies how they will implement state density bonus law. Defines “density bonus” as a density increase over the otherwise maximum allowable residential density as of the date of application by the applicant to the local government.
- Requires cities and counties to grant a density bonus when an applicant for a housing development of five or more units seeks and agrees to construct a project that will contain at least any one of the following:
- 10% of the total units for lower-income households
- 5% of the total units of a housing for very low-income households
- A senior citizen housing development or mobile home park
- 10% of the units in a common-interest development (CID) for moderate-income households
- Requires that the applicant agree to, and the city or county ensure, continued affordability of all low- and very low-income units that qualified the applicant for the density bonus for at least 55 years.
- Requires cities and counties to provide an applicant for density bonus concessions and incentives based on the number of below market-rate units included in the project as follows:
- One incentive or concession, if the project includes at least 10% of the total units for low-income households, 5% for very low-income households, or 10% for moderate-income households in a CID
- Two incentives or concessions, if the project includes at least 20% of the total units for low-income households, 10% for very low-income households, or 20% for moderate-income households in a CID
- Three incentives or concessions, if the project includes at least 30% of the total units for low-income households, 15% for very low-income households, or 30% for moderate-income households in a CID
- Specifies that concessions or incentives may include the following:
- A reduction in site development standards
- A modification of zoning code requirements or architectural design requirements that exceed the minimum building standards, including a reduction in setbacks, square footage requirements, or parking requirements, that results in identifiable, financially sufficient, and actual cost reductions
- Approval of mixed-use zoning in conjunction with the housing project, if commercial, office, industrial, or other land uses will reduce the cost of the housing development, and if such nonresidential uses are compatible with the project
- Other regulatory incentives or concessions proposed by the developer or the city or county that result in identifiable cost reductions
This bill:
- Creates a development bonus for commercial developers that agree to partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing, in addition to granting incentives and concessions under State Density Bonus Law.
- States that “offsite housing” shall be all of the following:
- Within the boundaries of the local government
- In close proximity to public amenities, including schools and employment centers
- Is located within one-half mile of a major transit stop
- Provides that the development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following:
- Up to a 20% variance in maximum allowable intensity in the General Plan, zoning ordinance, or other regulation
- Up to a 20% variance in maximum allowable floor-area ratio
- Up to a 20% variance in minimum parking requirements
- A specific use of a limited-use/limited-application elevator for upper floor accessibility
- Provides that the agreement for partnered housing and commercial developments shall be approved by the affordable housing developer, the commercial developer, and the local government.
- Provides that for purposes of this bill, affordable housing may be contributed by the commercial developer in one of the following manners:
- The commercial developer may directly build the units.
- The commercial developer may dedicate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing.
- The commercial developer may make an in-lieu payment to the affordable housing developer that shall be used towards the costs of affordable housing construction on a pending project.
- States that State Density Bonus Law applies.
- Provides that nothing shall preclude any additional allowances or incentives offered to developers by local governments pursuant to law or regulation.
- Requires, in order to qualify for a development bonus under this bill, a commercial developer to partner with a housing developer that provides at least 30% of the total units for low-income households or at least 15% of the total units for very low-income households.
- Provides that a development bonus shall not include a reduction of fees for affordable housing or authorize noncompliance with other affordable housing requirements within a local commercial linkage and impact fee ordinance.
- Provides that, if the developer of affordable units does not commence construction of the units in accordance with the agreed-upon timeline, the local government may withhold certificates of occupancy for the commercial development under construction until the developer has completed construction of the affordable units.
- Defines “commence with construction” as either of the following:
- Commence with the construction of affordable units
- Issuance of building permits for the construction of the affordable units
Comments
- Purpose . According to the author, California’s housing costs have far outpaced those of other states in the last half-century. As of 2015, the typical California home costs $440,000, or two-and-a-half times the national average; and the average monthly rent in California is $1,240, or about 50% higher than in other states. It is possible to offset the effects of high land costs through more dense development. For this reason, California has enacted an affordable housing density bonus law. Local governments, however, can be wary of high-density residential development because of the corresponding increase in demand for public services and infrastructure. Conversely, local governments have more incentive to approve commercial developments, which increase revenues (i.e., through transient occupancy taxes or retail establishments that generate sales taxes).
This bill seeks to marry two needs — the need for more affordable housing and local government’s desire for increased revenue — by encouraging non-traditional housing developers to enter the market. This bill creates a new development bonus that shall be provided by local governments to affordable housing developers and commercial developers who partner together to construct affordable housing. The variances include, but are not limited to: an increase in floor-area rations; a specific use of a limited use/limited application elevator; a decrease in the required minimum amount of parking spaces; an increase in building height; a decrease in set-back requirements; or other incentives as agreed to by the local government and the commercial developer.
- Density bonus law. Given California’s high land and construction costs for housing, it is extremely difficult for the private market to provide housing units that are affordable to low- and even moderate-income households. Public subsidy is often required to fill the financial gap on affordable units. Density bonus law allows public entities to reduce or even eliminate subsidies for a particular project by allowing a developer to include more total units in a project than would otherwise be allowed by the local zoning in exchange for affordable units. Allowing more total units permits the developer to spread the cost of the affordable units more broadly over the market-rate units. The idea of density bonus law is to cover at least some of the financing gap of affordable housing with regulatory incentives, rather than additional subsidy.
Under existing law, if a developer proposes to construct a housing development with a specified percentage of affordable units, the city or county must provide all of the following benefits: a density bonus, incentives, or concessions (hereafter referred to as incentives); waiver of any development standards that prevent the developer from utilizing the density bonus or incentives; and reduced parking standards.
- Development bonuses and affordable housing. This bill seeks to encourage greater production of affordable housing by creating a development bonus for commercial developers who partner with affordable-housing developers to construct affordable-housing units. The affordable-housing developers would receive a density bonus that corresponds with the number of affordable units included in the development, as well as receive concessions and incentives. The commercial developer would receive a “development bonus,” which means incentives agreed upon by the commercial developer and the local government, such as variances in zoning regulations that result in significant cost reductions.
The housing contemplated in this bill could be mixed-use developments or workforce housing on the same property as the commercial development, or the housing could be “off-site.” The off-site housing must be within the boundaries of the local government, in close proximity to schools and employment centers, and within a half-mile of public transit. The housing could be built by either the commercial developer or the affordable-housing developer.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
California Apartment Association
California Association of Realtors
California Building Industry Association
California Business Properties Association
California Chamber of Commerce
California Council for Affordable Housing
California Housing Consortium
San Francisco Council of Community Housing Organizations
San Gabriel Valley Economic Partnership
City of Camarillo
City of Sacramento
City of San Dimas
City of San Marcos
League of California Cities
ASSEMBLY FLOOR: 68-9, 6/2/16
AYES: Achadjian, Alejo, Arambula, Atkins, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Roger Hernández, Holden, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Low, Maienschein, Mayes, McCarty, Medina, Mullin, Nazarian, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NOES: Travis Allen, Baker, Brough, Hadley, Harper, Irwin, Lopez, Mathis, Obernolte
NO VOTE RECORDED: Bigelow, Beth Gaines, Melendez
8/10/16 16:00:44
**** END ****
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: Hearing Date: 6/28/2016
Author: | Santiago | ||
Version: | 6/14/2016 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Alison Dinmore | ||
SUBJECT:
DIGEST: This bill creates a development bonus for commercial developers that partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing.
ANALYSIS:
Existing law:
- Requires all cities and counties to adopt an ordinance that specifies how they will implement state density bonus law. Defines “density bonus” as a density increase over the otherwise maximum allowable residential density as of the date of application by the applicant to the local government.
- Requires cities and counties to grant a density bonus when an applicant for a housing development of five or more units seeks and agrees to construct a project that will contain at least any one of the following:
- 10% of the total units for lower-income households
- 5% of the total units of a housing for very low-income households
- A senior citizen housing development or mobile home park
- 10% of the units in a common-interest development (CID) for moderate-income households
- Requires that the applicant agree to, and the city or county ensure, continued affordability of all low- and very low-income units that qualified the applicant for the density bonus for at least 55 years.
- Requires cities and counties to provide an applicant for density bonus concessions and incentives based on the number of below market-rate units included in the project as follows:
- One incentive or concession, if the project includes at least 10% of the total units for low-income households, 5% for very low-income households, or 10% for moderate-income households in a CID
- Two incentives or concessions, if the project includes at least 20% of the total units for low-income households, 10% for very low-income households, or 20% for moderate-income households in a CID
- Three incentives or concessions, if the project includes at least 30% of the total units for low-income households, 15% for very low-income households, or 30% for moderate-income households in a CID
- Specifies that concessions or incentives may include the following:
- A reduction in site development standards
- A modification of zoning code requirements or architectural design requirements that exceed the minimum building standards, including a reduction in setbacks, square footage requirements, or parking requirements, that results in identifiable, financially sufficient, and actual cost reductions
- Approval of mixed-use zoning in conjunction with the housing project, if commercial, office, industrial, or other land uses will reduce the cost of the housing development, and if such nonresidential uses are compatible with the project
- Other regulatory incentives or concessions proposed by the developer or the city or county that result in identifiable cost reductions
This bill:
- Creates a development bonus for commercial developers that agree to partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing, in addition to granting incentives and concessions under State Density Bonus Law.
- States that “offsite housing” shall be all of the following:
- Within the boundaries of the local government
- In close proximity to public amenities, including schools and employment centers
- Is located within one-half mile of a major transit stop
- Provides that the development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following:
- Up to a 20% variance in maximum allowable intensity in the General Plan, zoning ordinance, or other regulation
- Up to a 20% variance in maximum allowable floor-area ratio
- Up to a 20% variance in minimum parking requirements
- A specific use of a limited-use/limited-application elevator for upper floor accessibility
- Provides that the agreement for partnered housing and commercial developments shall be approved by the affordable housing developer, the commercial developer, and the local government.
- For purposes of this section, affordable housing may be contributed by the commercial developer in one of the following manners:
- The commercial developer may directly build the units.
- The commercial developer may dedicate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing.
- The commercial developer may make an in-lieu payment to the affordable housing developer that shall be used towards the costs of affordable housing construction on a pending project.
- States that State Density Bonus Law applies.
- Provides that nothing shall preclude any additional allowances or incentives offered to developers by local governments pursuant to law or regulation.
- Provides that, if the developer of affordable units does not commence construction of the units in accordance with the agreed-upon timeline, the local government may withhold certificates of occupancy for any market-rate units under construction until the developer has completed construction of the affordable units.
- Defines “commence with construction” as either of the following:
- Commence with the construction of affordable units
- Issuance of building permits for the construction of the affordable units
COMMENTS:
- Purpose . According to the author, California’s housing costs have far outpaced those of other states in the last half-century. As of 2015, the typical California home costs $440,000, or two-and-a-half times the national average; and the average monthly rent in California is $1,240, or about 50% higher than in other states. It is possible to offset the effects of high land costs through more dense development. For this reason, California has enacted an affordable housing density bonus law. Local governments, however, can be wary of high-density residential development because of the corresponding increase in demand for public services and infrastructure. Conversely, local governments have more incentive to approve commercial developments, which increase revenues (i.e., through transient occupancy taxes or retail establishments that generate sales taxes).
This bill seeks to marry two needs — the need for more affordable housing and local government’s desire for increased revenue — by encouraging non-traditional housing developers to enter the market. This bill creates a new development bonus that shall be provided by local governments to affordable housing developers and commercial developers who partner together to construct affordable housing. The variances include, but are not limited to: an increase in floor-area rations; a specific use of a limited use/limited application elevator; a decrease in the required minimum amount of parking spaces; an increase in building height; a decrease in set-back requirements; or other incentives as agreed to by the local government and the commercial developer.
- Density bonus law. Given California’s high land and construction costs for housing, it is extremely difficult for the private market to provide housing units that are affordable to low- and even moderate-income households. Public subsidy is often required to fill the financial gap on affordable units. Density bonus law allows public entities to reduce or even eliminate subsidies for a particular project by allowing a developer to include more total units in a project than would otherwise be allowed by the local zoning in exchange for affordable units. Allowing more total units permits the developer to spread the cost of the affordable units more broadly over the market-rate units. The idea of density bonus law is to cover at least some of the financing gap of affordable housing with regulatory incentives, rather than additional subsidy.
Under existing law, if a developer proposes to construct a housing development with a specified percentage of affordable units, the city or county must provide all of the following benefits: a density bonus, incentives, or concessions (hereafter referred to as incentives); waiver of any development standards that prevent the developer from utilizing the density bonus or incentives; and reduced parking standards.
- Development bonuses and affordable housing. This bill seeks to encourage greater production of affordable housing by creating a development bonus for commercial developers who partner with affordable-housing developers to construct affordable-housing units. The affordable-housing developers would receive a density bonus that corresponds with the number of affordable units included in the development, as well as receive concessions and incentives. The commercial developer would receive a “development bonus,” which means incentives agreed upon by the commercial developer and the local government, such as variances in zoning regulations that result in significant cost reductions.
The housing contemplated in this bill could be mixed-use developments, workforce housing on the same property as the commercial development, or the housing could be “off-site.” The off-site housing must be within the boundaries of the local government, in close proximity to schools and employment centers, and within a half-mile of public transit. The housing could be built by either the commercial developer or the affordable- housing developer.
4) Ensuring affordability. According to the author, the intent of this bill is to encourage non-traditional developers to enter the housing market to construct affordable housing. Presently, this bill states that if the commercial developer does not begin construction in accordance with the timelines agreed to by the local government, the commercial developer, and the affordable housing developer, the local government may withhold a certificate of occupancy for any market-rate units under construction until the developer has completed construction of the affordable units. Given that a housing developer may choose to construct a 100% affordable development, there may not be any market-rate units under construction. The author will accept an amendment that states instead that the local government may withhold the certificate of occupancy for the commercial development until the developer has completed construction of the affordable units.
Additionally, this bill does not state the percentage of units constructed that must be available to low-income individuals. The author will accept an amendment to state that, in order to qualify for a development bonus under this section, a commercial developer shall partner with a housing developer that provides at least 30% of the total units for low-income households or at least 15% of the total units for very low-income households.
5) Excluding commercial linkage fees. This bill extends the Density Bonus incentives and concessions to commercial developers to encourage them to build or fund affordable housing. The bill, however, is silent on how this expansion of state density bonus law intersects with existing underlying commercial linkage fees that may already be required by a local jurisdiction. A commercial linkage fee is a type of impact fee, charged to commercial, industrial, and retail developments, used to reduce the impacts of that development or provide infrastructure associated with the new development. The charge may be in the form of a fee per unit or per square foot of development, and typically the funds are used to finance affordable housing for the low-income workers whose jobs were created by the development.
One potential unintended consequence is that the bill could be interpreted to mean a commercial developer would get credit toward density bonuses or concessions and incentives by simply paying the housing linkage fee that they are already obligated to pay, rather than creating an incentive to reach higher affordable housing commitments. The author will accept an amendment that states fees for affordable housing or other affordable-housing obligations required by a locally adopted commercial linkage/impact fee ordinance of a city, county, or city and county shall not be included.
6) Opposition. According to the League of California Cities, unlike in existing state Density Bonus Law there is no fair trade-off in this bill. The developer of the commercial development is giving the city nothing; yet the city gives the commercial developer a 20% variance in regulatory requirements and fees. According to the American Planning Association — California Chapter, there is no clarity on how the level of affordable housing created relates to the proposed commercial intensification. The affordable housing provided could be overwhelmed by impacts from the increased commercial density. Additionally, unlike state Density Bonus Law, this bill would increase the commercial floor- area ratio, which would increase the size of a commercial project, including parking and traffic impacts.
Assembly Votes:
Floor: 68-9
Appr: 15-1
L.Gov: 8-0
H&CD: 6-0
Related Legislation:
AB 2442 (Holden) — requires local agencies to grant a density bonus when a developer agrees to construct housing for transitional foster youth, disabled veterans, or homeless persons. This bill is pending hearing in the Senate Appropriations Committee.
AB 2556 (Nazarian) — requires a jurisdiction, in cases where a proposed development is replacing existing affordable housing units, to adopt a rebuttable presumption regarding the number and type of affordable housing units necessary for density bonus eligibility. This bill is pending hearing in the Senate Appropriations Committee.
AB 2501 (Bloom) — makes a number of changes to density bonus law, including clarifying the processing of a density bonus application. This bill is also being heard in the Senate Transportation and Housing Committee.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
POSITIONS: (Communicated to the committee before noon on Wednesday,
June 22, 2016.)
SUPPORT:
California Apartment Association
California Association of Realtors
California Building Industry Association
California Business Properties Association
California Chamber of Commerce
California Council for Affordable Housing
San Francisco Council of Community Housing Organizations
OPPOSITION:
American Planning Association, California Chapter
City of Camarillo
City of Sacramento
City of San Dimas
League of California Cities
-- END --
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: Hearing Date: 6/21/2016
Author: | Santiago | ||
Version: | 6/14/2016 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Alison Dinmore | ||
SUBJECT:
DIGEST: This bill creates a development bonus for commercial developers that partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing.
ANALYSIS:
Existing law:
- Requires all cities and counties to adopt an ordinance that specifies how they will implement state density bonus law. Defines “density bonus” as a density increase over the otherwise maximum allowable residential density as of the date of application by the applicant to the local government.
- Requires cities and counties to grant a density bonus, when an applicant for a housing development of five or more units seeks and agrees to construct a project, that will contain at least any one of the following:
- 10% of the total units for lower-income households
- 5% of the total units of a housing for very low-income households
- A senior citizen housing development or mobile home park
- 10% of the units in a common-interest development (CID) for moderate-income households
- Requires that the applicant agree to, and the city or county ensure, continued affordability of all low- and very low-income units that qualified the applicant for the density bonus for at least 55 years.
- Requires cities and counties to provide an applicant for density bonus concessions and incentives based on the number of below market-rate units included in the project as follows:
- One incentive or concession, if the project includes at least 10% of the total units for low-income households, 5% for very low-income households, or 10% for moderate-income households in a CID
- Two incentives or concessions, if the project includes at least 20% of the total units for low-income households, 10% for very low-income households, or 20% for moderate-income households in a CID
- Three incentives or concessions, if the project includes at least 30% of the total units for low-income households, 15% for very low-income households, or 30% for moderate-income households in a CID
- Specifies that concessions or incentives may include the following:
- A reduction in site development standards
- A modification of zoning code requirements or architectural design requirements that exceed the minimum building standards, including a reduction in setbacks, square footage requirements, or parking requirements, that results in identifiable, financially sufficient, and actual cost reductions
- Approval of mixed-use zoning in conjunction with the housing project, if commercial, office, industrial, or other land uses will reduce the cost of the housing development, and, if such nonresidential uses are compatible with the project
- Other regulatory incentives or concessions proposed by the developer or the city or county that result in identifiable cost reductions
This bill:
- Creates a development bonus for commercial developers that agree to partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing, in addition to granting incentives and concessions under State Density Bonus Law.
- States that “offsite housing” shall be all of the following:
- Within the boundaries of the local government
- In close proximity to public amenities including schools and employment centers
- Is located within one-half mile of a major transit stop
- Provides that the development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following:
- Up to a 20% variance in maximum allowable intensity n the General Plan, zoning ordinance, or other regulation
- Up to a 20% variance in maximum allowable floor area ratio
- Up to a 20% variance in minimum parking requirements
- A specific use of a limited-use/limited-application elevator for upper floor accessibility.
- Provides that the agreement for partnered housing and commercial developments shall be approved by the affordable housing developer, the commercial developer, and the local government.
- For purposes of this section, affordable housing may be contributed by the commercial developer in one of the following manners:
- The commercial developer may directly build the units.
- The commercial developer may dedicate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing.
- The commercial developer may make an in-lieu payment to the affordable housing developer that shall be used towards the costs of affordable housing construction on a pending project.
- States that State Density Bonus Law applies.
- Provides that nothing shall preclude any additional allowances or incentives offered to developers by local governments pursuant to law or regulation.
- Provides that, if the developer of affordable units does not commence construction of the units in accordance with the agreed upon timeline, the local government may withhold certificates of occupancy for any market-rate units under construction until the developer has completed construction of the affordable units.
- Defines “commence with construction” as either of the following:
- Commence with the construction of affordable units
- Issuance of building permits for the construction of the affordable units
COMMENTS:
- Purpose .According to the author, California’s housing costs has far outpaced those of other states in the last half-century. As of 2015, the typical California home costs $440,000, or two and a half times the national average; and the average monthly rent in California is $1,240, or about 50% higher than in other states. It is possible to offset the effects of high land costs through more dense development. For this reason, California has enacted an affordable housing density bonus law. Local governments, however, can be wary of high-density residential development because of the corresponding increase in demand for public services and infrastructure. Conversely, local governments have more incentive to approve commercial developments, which increase revenues (i.e., through transient occupancy taxes or retail establishments that generate sales taxes).
This bill seeks to marry two needs — the need for more affordable housing and local government’s desire for increased revenue — by encouraging non-traditional housing developers to enter the market. This bill creates a new development bonus that shall be provided by local governments to affordable housing developers and commercial developers who partner together to construct affordable housing. The variances include, but are not limited to: an increase in floor area rations, a specific use of a limited use/limited application elevator, a decrease in the required minimum amount of parking spaces, an increase in building height; a decrease in set-back requirements; or other incentives as agreed to by the local government and the commercial developer.
- Density bonus law. Given California’s high land and construction costs for housing, it is extremely difficult for the private market to provide housing units that are affordable to low- and even moderate-income households. Public subsidy is often required to fill the financial gap on affordable units. Density bonus law allows public entities to reduce or even eliminate subsidies for a particular project by allowing a developer to include more total units in a project than would otherwise be allowed by the local zoning in exchange for affordable units. Allowing more total units permits the developer to spread the cost of the affordable units more broadly over the market-rate units. The idea of density bonus law is to cover at least some of the financing gap of affordable housing with regulatory incentives, rather than additional subsidy.
Under existing law, if a developer proposes to construct a housing development with a specified percentage of affordable units, the city or county must provide all of the following benefits: a density bonus, incentives, or concessions (hereafter referred to as incentives); waiver of any development standards that prevent the developer from utilizing the density bonus or incentives; and reduced parking standards.
- Development bonuses and affordable housing. This bill seeks to encourage greater production of affordable housing by creating a “development bonus” for commercial developers who partner with affordable-housing developers to construct affordable-housing units. The affordable-housing developers would receive a density bonus that corresponds with the number of affordable units included in the development, as well as receive concessions and incentives. The commercial developer would receive a “development bonus,” which means incentives agreed upon by the commercial developer and the local government, such as variances in zoning regulations that result in significant cost reductions.
The housing contemplated in this bill could be mixed-use developments, workforce housing on the same property as the commercial development, or the housing could be “off-site.” The off-site housing must be within the boundaries of the local government, in close proximity to schools and employment centers, and within a half mile of public transit. The housing could be built by either the commercial developer or the affordable- housing developer.
- Opposition. According to the League of California Cities, unlike existing state density bonus law there is no fair trade-off in this bill. The developer of the commercial development is giving the city nothing; yet the city gives the commercial developer a 20% variance in regulatory requirements and fees. According to the American Planning Association —California Chapter, there is no clarity on how the level of affordable housing created relates to the proposed commercial intensification. The affordable housing provided could be overwhelmed by impacts from the increased commercial density. Additionally, unlike state density bonus law, this bill would increase the commercial floor area ration, which would increase the size of a commercial project, including parking and traffic impacts.
Assembly Votes:
Floor: 68-9
Appr: 15-1
L.Gov: 8-0
H&CD: 6-0
Related Legislation:
AB 2442 (Holden) — requires local agencies to grant a density bonus when a developer agrees to construct housing for transitional foster youth, disabled veterans, or homeless persons. This bill is also being heard in the Senate Transportation and Housing Committee.
AB 2556 (Nazarian) — requires a jurisdiction, in cases where a proposed development is replacing existing affordable housing units, to adopt a rebuttable presumption regarding the number and type of affordable housing units necessary for density bonus eligibility. This bill is also being heard in the Senate Transportation and Housing Committee.
AB 2501 (Bloom) — makes a number of changes to density bonus law, including clarifying the processing of a density bonus application. This bill is also being heard in the Senate Transportation and Housing Committee.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
POSITIONS: (Communicated to the committee before noon on Wednesday,
June 15, 2016.)
SUPPORT:
California Apartment Association
California Association of Realtors
California Building Industry Association
California Business Properties Association
California Chamber of Commerce
California Council for Affordable Housing
San Francisco Council of Community Housing Organizations
OPPOSITION:
American Planning Association, California Chapter
City of Camarillo
City of Sacramento
City of San Dimas
League of California Cities
-- END --
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 1934 Hearing Date: 6/21/2016
Author: | Santiago | ||
Version: | 6/14/2016 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Alison Dinmore | ||
SUBJECT: Planning and zoning: development bonuses: mixed-use projects
DIGEST: This bill creates a development bonus for commercial developers that partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing.
ANALYSIS:
Existing law:
- Requires all cities and counties to adopt an ordinance that specifies how they will implement state density bonus law. Defines “density bonus” as a density increase over the otherwise maximum allowable residential density as of the date of application by the applicant to the local government.
- Requires cities and counties to grant a density bonus, when an applicant for a housing development of five or more units seeks and agrees to construct a project, that will contain at least any one of the following:
- 10% of the total units for lower-income households
- 5% of the total units of a housing for very low-income households
- A senior citizen housing development or mobile home park
- 10% of the units in a common-interest development (CID) for moderate-income households
- Requires that the applicant agree to, and the city or county ensure, continued affordability of all low- and very low-income units that qualified the applicant for the density bonus for at least 55 years.
- Requires cities and counties to provide an applicant for density bonus concessions and incentives based on the number of below market-rate units included in the project as follows:
- One incentive or concession, if the project includes at least 10% of the total units for low-income households, 5% for very low-income households, or 10% for moderate-income households in a CID;
- Two incentives or concessions, if the project includes at least 20% of the total units for low-income households, 10% for very low-income households, or 20% for moderate-income households in a CID; and,
- Three incentives or concessions, if the project includes at least 30% of the total units for low-income households, 15% for very low-income households, or 30% for moderate-income households in a CID.
- Specifies that concessions or incentives may include the following:
- A reduction in site development standards
- A modification of zoning code requirements or architectural design requirements that exceed the minimum building standards, including a reduction in setbacks, square footage requirements, or parking requirements, that results in identifiable, financially sufficient, and actual cost reductions
- Approval of mixed-use zoning in conjunction with the housing project, if commercial, office, industrial, or other land uses will reduce the cost of the housing development, and, if such nonresidential uses are compatible with the project
- Other regulatory incentives or concessions proposed by the developer or the city or county that result in identifiable cost reductions
This bill:
- Creates a development bonus for commercial developers that agree to partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing, in addition to granting incentives and concessions under State Density Bonus Law.
- States that “offsite housing” shall be all of the following:
- Within the boundaries of the local government
- In close proximity to public amenities including schools and employment centers
- Is located within one-half mile of a major transit stop
- Provides that the development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following:
- Up to a 20% variance in maximum allowable intensity n the General Plan, zoning ordinance, or other regulation
- Up to a 20% variance in maximum allowable floor area ratio
- Up to a 20% variance in minimum parking requirements
- A specific use of a limited-use/limited-application elevator for upper floor accessibility.
- Provides that the agreement for partnered housing and commercial developments shall be approved by the affordable housing developer, the commercial developer, and the local government.
- For purposes of this section, affordable housing may be contributed by the commercial developer in one of the following manners:
- The commercial developer may directly build the units.
- The commercial developer may dedicate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing.
- The commercial developer may make an in-lieu payment to the affordable housing developer that shall be used towards the costs of affordable housing construction on a pending project.
- States that State Density Bonus Law applies.
- Provides that nothing shall preclude any additional allowances or incentives offered to developers by local governments pursuant to law or regulation.
- Provides that, if the developer of affordable units does not commence construction of the units in accordance with the agreed upon timeline, the local government may withhold certificates of occupancy for any market-rate units under construction until the developer has completed construction of the affordable units.
- Defines “commence with construction” as either of the following:
- Commence with the construction of affordable units
- Issuance of building permits for the construction of the affordable units
COMMENTS:
- Purpose .According to the author, California’s housing costs has far outpaced those of other states in the last half-century. As of 2015, the typical California home costs $440,000, or two and a half times the national average; and the average monthly rent in California is $1,240, or about 50% higher than in other states. It is possible to offset the effects of high land costs through more dense development. For this reason, California has enacted an affordable housing density bonus law. Local governments, however, can be wary of high-density residential development because of the corresponding increase in demand for public services and infrastructure. Conversely, local governments have more incentive to approve commercial developments, which increase revenues (i.e. through transient occupancy taxes or retail establishments that generate sales taxes).
This bill seeks to marry two needs — the need for more affordable housing and local government’s desire for increased revenue — by encouraging non-traditional housing developers to enter the market. This bill creates a new development bonus that shall be provided by local governments to affordable housing developers and commercial developers who partner together to construct affordable housing. The variances include, but are not limited to: an increase in floor area rations, a specific use of a limited use/limited application elevator, a decrease in the required minimum amount of parking spaces, an increase in building height; a decrease in set-back requirements; or other incentives as agreed to by the local government and the commercial developer.
- Density bonus law. Given California’s high land and construction costs for housing, it is extremely difficult for the private market to provide housing units that are affordable to low- and even moderate-income households. Public subsidy is often required to fill the financial gap on affordable units. Density bonus law allows public entities to reduce or even eliminate subsidies for a particular project by allowing a developer to include more total units in a project than would otherwise be allowed by the local zoning in exchange for affordable units. Allowing more total units permits the developer to spread the cost of the affordable units more broadly over the market-rate units. The idea of density bonus law is to cover at least some of the financing gap of affordable housing with regulatory incentives, rather than additional subsidy.
Under existing law, if a developer proposes to construct a housing development with a specified percentage of affordable units, the city or county must provide all of the following benefits: a density bonus, incentives, or concessions (hereafter referred to as incentives); waiver of any development standards that prevent the developer from utilizing the density bonus or incentives; and reduced parking standards.
- Development bonuses and affordable housing. This bill seeks to encourage greater production of affordable housing by creating a “development bonus” for commercial developers who partner with affordable-housing developers to construct affordable-housing units. The affordable-housing developers would receive a density bonus that corresponds with the number of affordable units included in the development, as well as receive concessions and incentives. The commercial developer would receive a “development bonus,” which means incentives agreed upon by the commercial developer and the local government, such as variances in zoning regulations that result in significant cost reductions.
The housing contemplated in this bill could be mixed-use developments, workforce housing on the same property as the commercial development, or the housing could be “off-site.” The off-site housing must be within the boundaries of the local government, in close proximity to schools and employment centers, and within a half mile of public transit. The housing could be built by either the commercial developer or the affordable- housing developer.
- Opposition. According to the League of California Cities, unlike existing state density bonus law there is no fair trade-off in this bill. The developer of the commercial development is giving the city nothing; yet the city gives the commercial developer a 20% variance in regulatory requirements and fees. According to the American Planning Association —California Chapter, there is no clarity on how the level of affordable housing created relates to the proposed commercial intensification. The affordable housing provided could be overwhelmed by impacts from the increased commercial density. Additionally, unlike state density bonus law, this bill would increase the commercial floor area ration, which would increase the size of a commercial project, including parking and traffic impacts.
Assembly Votes:
Floor: 68-9
Appr: 15-1
L.Govt: 8-0
H&CD: 6-0
Related Legislation:
AB 2442 (Santiago) — creates a development bonus for commercial developers that partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing. This bill is also being heard in the Senate Transportation and Housing Committee.
AB 2556 (Nazarian) — requires a jurisdiction, in cases where a proposed development is replacing existing affordable housing units, to adopt a rebuttable presumption regarding the number and type of affordable housing units necessary for density bonus eligibility. This bill is also being heard in the Senate Transportation and Housing Committee.
AB 2501 (Bloom) — makes a number of changes to density bonus law, including clarifying the processing of a density bonus application. This bill is also being heard in the Senate Transportation and Housing Committee.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
POSITIONS: (Communicated to the committee before noon on Wednesday,
June 15, 2016.)
SUPPORT:
California Apartment Association
California Association of Realtors
California Building Industry Association
California Business Properties Association
California Chamber of Commerce
California Council for Affordable Housing
San Francisco Council of Community Housing Organizations
OPPOSITION:
American Planning Association, California Chapter
City of Camarillo
City of Sacramento
City of San Dimas
League of California Cities
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 1934
Author:(Santiago)
As Amended Ver:June 1, 2016
Majority vote
Committee | Votes | Ayes | Noes |
Housing | 6-0 | Chiu, Steinorth, Burke, Chau, Lopez, Mullin | |
Local Government | 8-0 | Eggman, Waldron, Alejo, Bonilla, Chiu, Cooley, Gordon, Linder | |
Appropriations | 15-1 | Gonzalez, Bloom, Bonilla, Bonta, Calderon, McCarty, Eggman, Gallagher, Eduardo Garcia, Chau, Holden, Quirk, Santiago, Weber, Wood | Obernolte |
SUMMARY: Creates a development bonus for commercial developers that partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing. Specifically, this bill:
- Provides that when a commercial developer agrees to partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing, a local government must in addition to granting incentives and concessions under State Density Bonus Law also grant the commercial developer a development bonus.
- Provides that the development bonus for the commercial developer means: incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following:
- Up to a 20% variance in maximum allowable intensity in the General Plan, zoning ordinance, or other regulation.
- Up to a 20% variance in maximum allowable floor area ratio.
- Up to a 20% variance in minimum parking requirements.
- A specific use of a limited-use/limited-application elevator for upper floor accessibility.
- States that "offsite housing" shall be all of the following:
- Within the boundaries of the local government;
- In close proximity to public amenities including schools and employment centers; and
- In close proximity to both pedestrian amenities and transit corridors.
- Provides that the agreement for partnered housing and commercial developments shall be approved by the affordable housing developer, the commercial developer, and the local government.
- Provides that affordable housing may be contributed by the commercial developer in one of the following manners:
- The commercial developer may directly build the units.
- The commercial developer may dedicate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing.
- The commercial developer may make an in-lieu payment to the affordable housing developer that must be used towards the cost of affordable housing construction on a pending project.
- States that the affordable housing replacement provisions in State Density Bonus Law apply.
- Provides that nothing shall preclude any additional allowances or incentives offered to developers by local governments pursuant to law or regulation.
- Provides that, if the developer of affordable units does not commence construction of the units in accordance with the agreed upon timeline, the local government may withhold certificates of occupancy for any market rate units under construction until the developer has completed construction of the affordable units.
- Defines "commence with construction" as either of the following:
- Commence or complete the construction of affordable units; or
- Issuance of building permits for the construction of the affordable units.
- Provides that no reimbursement is required by this act because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay the program or level of service.
- Makes findings and declarations that the development of affordable housing is a matter of statewide concern and it is not a municipal affair, and therefore, this bill applies to all cities including charter cities.
FISCAL EFFECT: According to the Assembly Appropriations Committee, no state fiscal impact. Local agencies have the authority to levy fees for related costs and thus, any local costs are not reimbursable.
COMMENTS:
In 1979 the Legislature enacted density bonus law to help address the affordable housing shortage and to encourage development of more low- and moderate-income housing units. Density bonus is a tool to encourage the production of affordable housing that is used by both market rate and affordable housing developers. In return for inclusion of affordable units in a development, developers are given an increase in density over a city's zoned density and concessions and incentives. The increase in density and concessions and incentives are to offset the cost the affordable units which will be offered at a lower rent, as low as 30% of area median income. Developers that seek a density bonus must agree to restrict very low- and low-income rental units to affordable levels for 55 years.
State law specifies concessions and incentives that a local government may include in its density bonus ordinance including a reduction in site development standards, or a modification of zoning code requirements, or architectural design requirements that exceed the minimum building standards, and approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and are compatible with the project and the surrounding area. A developer or city can also propose other regulatory incentives or concessions that result in identifiable, financially sufficient, and actual cost reductions.
This bill seeks to encourage greater production of affordable units by creating a "development bonus" for commercial developers who partner with an affordable housing developer to construct affordable units. Affordable housing developers would receive a density bonus commensurate with the number of affordable units included in the development plus concessions and incentives. In addition to the density bonus and concessions and incentives provided for the affordable units, the commercial developer would receive a "development bonus" which means incentives agreed upon between the commercial developer and the local government, such as variances in zoning regulations that result in significant cost reductions.
The types of projects promoted by this bill could result in mixed-use developments, or could result in the commercial and residential developments on separate sites. A commercial developer may choose to build the units itself, or may opt to have an affordable housing developer build the units either onsite or offsite. A commercial developer also has the option of making an in-lieu payment to an affordable housing developer to be used towards the costs of construction on a pending affordable housing project. If the affordable housing developer does not commence with construction at the agreed upon time, the local government may withhold certificates of occupancy for any market rate units under construction until the affordable units are completed.
Purpose of this bill: According to the author, "Local governments can be wary of high density residential development because of the corresponding increase in demand for public services and infrastructure. Conversely, in an era of tight budgets, local governments have more incentive to approve commercial developments which will increase revenues (i.e. hotels with transient occupancy tax or retail establishments which generate sales tax). AB 1934 represents a solution to all three of these dilemmas: a piece of California's affordable housing crisis solution which brings both residential and commercial developers to the table… AB 1934 seeks to marry two needs: a) the state's need for affordable housing; and b) local government's desire for increased revenues, by encouraging non-traditional housing developers to enter the market and think outside the box in their developments."
Analysis Prepared by: Rebecca Rabovsky / H. & C.D. / (916) 319-2085 FN: 0003385
ASSEMBLY THIRD READING
ATR Bill Id:AB 1934
Author:(Santiago)
As Amended Ver:April 14, 2016
Majority vote
Committee | Votes | Ayes | Noes |
Housing | 6-0 | Chiu, Steinorth, Burke, Chau, Lopez, Mullin | |
Local Government | 8-0 | Eggman, Waldron, Alejo, Bonilla, Chiu, Cooley, Gordon, Linder | |
Appropriations | 15-1 | Gonzalez, Bloom, Bonilla, Bonta, Calderon, McCarty, Eggman, Gallagher, Eduardo Garcia, Chau, Holden, Quirk, Santiago, Weber, Wood | Obernolte |
SUMMARY: Creates a density bonus for commercial developers that partner with an affordable housing developer to construct a mixed-used development. Specifically, this bill:
- Provides that when a commercial developer agrees to partner with an affordable housing developer to construct a mixed-used project with housing located on site of the proposed development, a local government must in addition to granting incentives and concessions under State Density Bonus Law also grant the commercial developer a density bonus.
- Provides that the density bonus for the commercial developer means: exceptions resulting in significant cost reductions over the maximum allowable intensity in the general fund, zoning ordinance or other regulation of the city, county, or city and county including but not limited to floor area ratios and may include modification to the development standards such as high and parking requirements.
- Provides that no reimbursement is required by this act because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay the program or level of service.
- Makes findings and declarations that the development of affordable housing is a matter of statewide concern and it is not a municipal affair, and therefore, this bill applies to all cities including charter cities.
FISCAL EFFECT: According to the Assembly Appropriations Committee, no state fiscal impact. Local agencies have the authority to levy fees for related costs and thus, any local costs are not reimbursable.
COMMENTS:
In 1979 the Legislature enacted density bonus law to help address the affordable housing shortage and to encourage development of more low- and moderate-income housing units. Density bonus is a tool to encourage the production of affordable housing that is used by both market rate and affordable housing developers. In return for inclusion of affordable units in a development, developers are given an increase in density over a city's zoned density and concessions and incentives. The increase in density and concessions and incentives are to offset the cost the affordable units which will be offered at a lower rent, as low as 30% of area median income. Developers that seek a density bonus must agree to restrict very low- and low-income rental units to affordable levels for 55 years.
State law specifies concessions and incentives that a local government may include in its density bonus ordinance including a reduction in site development standards, or a modification of zoning code requirements, or architectural design requirements that exceed the minimum building standards, and approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and are compatible with the project and the surrounding area. A developer or city can also propose other regulatory incentives or concessions that result in identifiable, financially sufficient, and actual cost reductions.
This bill seeks to encourage greater production of affordable units by creating a "density bonus" for commercial developers who partner with an affordable housing developer to construct affordable units. Affordable housing developers would receive a density bonus commensurate with the number of affordable units included in the development plus concessions and incentives. The affordable units must be built on the same site as the commercial development. In addition to the density bonus and concessions and incentives provided for the affordable units, the commercial developer would receive a "density bonus" which means exceptions to existing general plan and zoning regulations that result in significant cost reductions.
Purpose of this bill: According to the author, "Local governments can be wary of high density residential development because of the corresponding increase in demand for public services and infrastructure. Conversely, in an era of tight budgets, local governments have more incentive to approve commercial developments which will increase revenues (i.e. hotels with transient occupancy tax or retail establishments which generate sales tax). AB 1934 represents a solution to all three of these dilemmas: a piece of California's affordable housing crisis solution which brings both residential and commercial developers to the table. AB 1934 creates a new combined bonus that shall be provided by local governments to affordable housing developers and commercial developers who partner together to construct a mixed-use project in which affordable housing will either be on-site or located within a 1-mile radius of the sister development. The variances can include, but are not limited to, floor area ratios and commercial linkage fees. AB 1934 seeks to marry two needs: a) the state's need for affordable housing; and b) local government's desire for increased revenues, by encouraging non-traditional housing developers to enter the market and think outside the box in their developments."
Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085 FN: 0002976
Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
ABPCA Bill Id:AB 1934
Author:(Santiago) – As Amended Ver:April 14, 2016
Policy Committee: | Housing and Community Development | Vote: | 6 - 0 |
Local Government | 8 - 0 |
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill creates a density bonus for commercial developers that partner with an affordable housing developer to construct a mixed-used development. Specifically, this bill:
- Requires, that when a commercial development agrees to partner with an affordable housing developer to construct a mixed-use project with housing located onsite, a local government, in addition to granting incentives and concessions under State Density Bonus Law also grant the commercial developer exceptions resulting in significant costs reductions over the maximum allowable intensity in the general plan, zoning ordinance, or regulation, including but not limited to, floor area ratios, and may include modification to development standards, such as height and parking requirements.
- Declares that the development of affordable housing is a matter of statewide concern and it is not a municipal affair, and therefore, this bill applies to all cities including charter cities.
FISCAL EFFECT:
No state fiscal impact. Local agencies have the authority to levy fees for related costs and thus, any local costs are not reimbursable.
COMMENTS:
- Purpose. According to the author, “Local governments can be wary of high density residential development because of the corresponding increase in demand for public services and infrastructure. In an era of tight budgets, local governments are also more likely to approve commercial developments which will increase revenues. This bill seeks to marry these two needs: a) the state’s need for affordable housing; and b) local governments’ desire for increased revenues, by encouraging non-traditional housing developers to enter the market and think outside the box in their developments.”
- Background. In 1979, the Legislature enacted density bonus law to help address the affordable housing shortage and to encourage development of more low- and moderate-income housing units. Density bonus is a tool to encourage the production of affordable housing that is used by both market rate and affordable housing developers. In return for inclusion of affordable units in a development, developers are given an increase in density over a city's zoned density and concessions and incentives in order to offset the cost of the affordable units which will be offered at a lower rent. Developers that seek a density bonus must agree to restrict very low- and low-income rental units to affordable levels for 55 years.
- Arguments in Support. Supporters (apartment owners and realtors) argue that the bill’s proposed solution meets the needs of local governments for economic development, along with the construction of affordable housing for the individuals and families who work in our communities and will be helpful to encourage affordable housing construction.
- Arguments in Opposition. Opponents (cities and planners) are concerned that the new statutory framework proposed by the bill may result in requests for local agency concessions that may not be warranted, or which may unnecessarily limit authority to review development applications and ensure consistency with local plans. Opposition also points to the lack of definitions for “commercial" development and “partners” in the bill.
- Related Legislation. This is one of six Assembly bills addressing density bonus issues before this committee today.
- AB 2208 (Santiago) adds to the list of the types of sites that a local government can identify as suitable for residential development in their housing element.
- AB 2299 (Bloom) requires, instead of allows, a local agency to, by ordinance, provide for the creation of second units in single-family and multifamily residential zones, and makes a number of other changes specifying what is required to be in the ordinance.
- AB 2442 (Holden) requires local agencies to grant a density bonus when an applicant for a housing development agrees to construct housing for transitional foster youth, disabled veterans, or homeless persons.
- AB 2501 (Bloom and Low) makes a number of changes to density bonus law.
- AB 2556 (Nazarian) requires a jurisdiction, in cases where a proposed development is replacing existing affordable housing units, to adopt a rebuttable presumption regarding the number and type of affordable housing units necessary for density bonus eligibility.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Susan Talamantes Eggman, Chair
ABPCA Bill Id:AB 1934 (
Author:Santiago) – As Amended Ver:April 14, 2016
SUBJECT: Planning and zoning: density bonuses: mixed-use projects.
SUMMARY: Creates a density bonus for commercial developers that partner with an affordable housing developer to construct a mixed-used development. Specifically, this bill:
- Requires, when an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a mixed-use project for which the housing will be located onsite and the proposed commercial development, the city, county, or city and county shall, in addition to any density bonus and incentives or concessions granted to the affordable housing developer pursuant to existing law, to grant a density bonus pursuant to 2), below, to the commercial developer.
- Specifies that the density bonus granted to the commercial developer shall mean exceptions resulting in significant cost reductions over the maximum allowable intensity in the general plan, zoning ordinance, or other regulation of the city, county, or city and county, including, but not limited to, floor area ratios, and may include modification to development standards, such as height and parking requirements.
- States that the Legislature finds and declares that the development of affordable housing is a matter of statewide concern and is not a municipal affair, as specified, and that the bill’s provisions apply to all cities, including charter cities.
- States that no reimbursement is required because a local agency has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, as specified.
EXISTING LAW:
- Defines “density bonus” as a density increase over the otherwise maximum allowable residential density as of the date of application by the applicant to the local government.
- Requires all cities and counties to adopt an ordinance that specifies how they will implement state density bonus law.
- Requires local governments to grant a density bonus when an applicant for a housing development of five or more units seeks and agrees to construct a project that will contain at least any one of the following:
- 10% of the total units for lower-income households;
- 5% of the total units for very-low income households;
- A senior citizen housing development or mobilehome park; and,
- 10% of the units in a common-interest development (CID) for moderate-income households.
- Requires that the applicant agree to continued affordability of all low- and very low-income units that qualified the applicant for the density bonus for at least 30 years.
- Specifies that concessions or incentives may include the following:
- A reduction in site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards;
- Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and are compatible with the project and the surrounding area; and,
- Other regulatory incentives or concessions proposed by the developer or the local government that result in identifiable, financially sufficient, and actual cost reductions.
- Requires local governments to provide applicants with the following number of incentives or concessions:
- One incentive or concession for projects that include at least 10% of the total units for lower-income households, at least 5% for very low-income households, or at least 10% for persons and families of moderate income in a common interest development;\
- Two incentives or concessions for projects that include at least 20% of the total units for lower-income households, at least 10% for very low-income households, or at least 20% for persons and families of moderate income in a common interest development.
- Three incentives or concessions for projects that include at least 30% of the total units for lower-income households, at least 15% for very low-income households, or at least 30% for persons and families of moderate income in a common interest development.
FISCAL EFFECT: This bill is keyed fiscal.
COMMENTS:
- Bill Summary. This bill requires, when an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a mixed-use project for which the housing will be located onsite and the proposed commercial development, the city, county, or city and county to, in addition to any density bonus and incentives or concessions granted to the affordable housing developer pursuant to existing law, to grant a density bonus to the commercial developer. Additionally, the bill specifies that the density bonus granted to the commercial developer shall mean exceptions resulting in significant cost reductions over the maximum allowable intensity in the general plan, zoning ordinance, or other regulation of the city, county, or city and county, including, but not limited to, floor area ratios, and may include modification to development standards, such as height and parking requirements. The bill also finds and declares that the development of affordable housing is a matter of statewide concern and is not a municipal affair, thereby applying the provisions of the bill to all cities, including charter cities.
This bill is an author-sponsored measure.
- Author’s Statement. According to the author, “Local governments can be wary of high density residential development because of the corresponding increase in demand for public services and infrastructure. In an era of tight budgets, local governments are also more likely to approve commercial developments which will increase revenues.
“AB 1934 seeks to marry these two needs: a) the state’s need for affordable housing; and
b) local governments’ desire for increased revenues, by encouraging non-traditional housing developers to enter the market and think outside the box in their developments.”
- Background. In 1979, the Legislature enacted density bonus law to help address the affordable housing shortage and to encourage development of more low- and moderate-income housing units. Density bonus is a tool to encourage the production of affordable housing that is used by both market rate and affordable housing developers. In return for inclusion of affordable units in a development, developers are given an increase in density over a city's zoned density and concessions and incentives. The increase in density and concessions and incentives are to offset the cost of the affordable units which will be offered at a lower rent, as low as 30% of area median income. Developers that seek a density bonus must agree to restrict very low- and low-income rental units to affordable levels for 55 years.
State law specifies concessions and incentives that a local government may include in its density bonus ordinance, including a reduction in site development standards, or a modification of zoning code requirements, or architectural design requirements that exceed the minimum building standards, and approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and are compatible with the project and the surrounding area. A developer or city can also propose other regulatory incentives or concessions that result in identifiable, financially sufficient, and actual cost reductions.
- Arguments in Support. Supporters argue that the bill’s proposed solution meets the needs of local governments for economic development, along with the construction of affordable housing for the individuals and families who work in our communities and will be helpful to encourage affordable housing construction.
- Arguments in Opposition. Opponents are concerned that the new statutory framework proposed by the bill may result in requests for local agency concessions that may not be warranted, or which may unnecessarily limit authority to review development applications and ensure consistency with local plans. Opposition also points to the lack of definitions for “commercial" development and “partners” in the bill.
- Double-Referral. This bill was heard by the Housing and Community Development Committee on April 13, 2016, where it passed with a 6-0 vote.
REGISTERED SUPPORT / OPPOSITION:
Support
California Apartment Association
California Association of Realtors
California Council for Affordable Housing
Concerns
California State Association of Counties
Housing California
Opposition
American Planning Association, California Chapter
League of California Cities
Analysis Prepared by: Debbie Michel / L. GOV. / (916) 319-3958
Date of Hearing: April 13, 2016
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
David Chiu, Chair
ABPCA Bill Id:AB 1934 (
Author:Santiago) – As Amended Ver:April 4, 2016
SUBJECT: Planning and zoning: density bonuses: mixed-use projects
SUMMARY: Creates a density bonus for commercial developers that partner with an affordable housing developer to construct a mixed-used development. Specifically, this bill:
- Provides that when a commercial developer agrees to partner with an affordable housing developer to construct a mixed-used project with housing located on site or located within a one-mile radius of the proposed development, a local government must in addition to granting incentives and concessions under State Density Bonus Law also grant the commercial developer a density increase of up to 20% variance of the local governments zoning ordinance or regulation, including but not limited to, floor area ratios or reduction of commercial linkage fees.
- Provides that no reimbursement is required by this act because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay the program or level of service.
- Makes findings and declarations that the development of affordable housing is a matter of statewide concern and it is not a municipal affair, and therefore, this bill applies to all cities including charter cities.
EXISTING LAW:
- Defines “density bonus” as a density increase over the otherwise maximum allowable residential density as of the date of application by the applicant to the local government.
- Requires all cities and counties to adopt an ordinance that specifies how they will implement state density bonus law.
- Requires local governments to grant a density bonus when an applicant for a housing development of five or more units seeks and agrees to construct a project that will contain at least any one of the following:
- 10% of the total units for lower-income households;
- 5% of the total units for very-low income households;
- A senior citizen housing development or mobilehome park; and,
- 10% of the units in a common-interest development (CID) for moderate-income households.
- Requires that the applicant agree to continued affordability of all low- and very low-income units that qualified the applicant for the density bonus for at least 30 years.
- Specifies that concessions or incentives may include the following:
- A reduction in site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards.
- Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and are compatible with the project and the surrounding area.
- Other regulatory incentives or concessions proposed by the developer or the local government that result in identifiable, financially sufficient, and actual cost reductions.
- Requires local governments to provide applicants with the following number of incentives or concessions:
- One incentive or concession for projects that include at least 10% of the total units for lower-income households, at least 5% for very low-income households, or at least 10% for persons and families of moderate-income in a common interest development.
- Two incentives or concessions for projects that include at least 20% of the total units for lower-income households, at least 10% for very low-income households, or at least 20% for persons and families of moderate-income in a common interest development.
- Three incentives or concessions for projects that include at least 30% of the total units for lower-income households, at least 15% for very low-income households, or at least 30% for persons and families of moderate-income in a common interest development.
FISCAL EFFECT: Unknown.
COMMENTS:
In 1979 the Legislature enacted density bonus law to help address the affordable housing shortage and to encourage development of more low- and moderate-income housing units. Density bonus is a tool to encourage the production of affordable housing that is used by both market rate and affordable housing developers. In return for inclusion of affordable units in a development, developers are given an increase in density over a city's zoned density and concessions and incentives. The increase in density and concessions and incentives are to offset the cost the affordable units which will be offered at a lower rent, as low as 30% of area median income. Developers that seek a density bonus must agree to restrict very low- and low-income rental units to affordable levels for 55 years.
State law specifies concessions and incentives that a local government may include in its density bonus ordinance including a reduction in site development standards, or a modification of zoning code requirements, or architectural design requirements that exceed the minimum building standards, and approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and are compatible with the project and the surrounding area. A developer or city can also propose other regulatory incentives or concessions that result in identifiable, financially sufficient, and actual cost reductions.
This bill seeks to encourage greater production of affordable units by creating a "density bonus" for commercial developers who partner with an affordable housing developer to construct affordable units. Affordable housing developers would receive a density bonus commensurate with the number of affordable units included in the development plus concessions and incentives. The affordable units could be built on the same site as the commercial development or within one mile. In addition to the density bonus and concessions and incentives provided for the affordable units, the commercial developer would receive a "density bonus" equal to an increase of up to 20% of the variance in the floor area ratios and commercial linkage fees.
Purpose of this bill: According to the author, "Local governments can be wary of high density residential development because of the corresponding increase in demand for public services and infrastructure. Conversely, in an era of tight budgets, local governments have more incentive to approve commercial developments which will increase revenues (i.e. hotels with transient occupancy tax or retail establishments which generate sales tax). AB 1934 represents a solution to all three of these dilemmas: a piece of California’s affordable housing crisis solution which brings both residential and commercial developers to the table. AB 1934 creates a new combined bonus that shall be provided by local governments to affordable housing developers and commercial developers who partner together to construct a mixed-use project in which affordable housing will either be on-site or located within a 1-mile radius of the sister development. The variances can include, but are not limited to, floor area ratios and commercial linkage fees. AB 1934 seeks to marry two needs: a) the state’s need for affordable housing; and b) local government’s desire for increased revenues, by encouraging non-traditional housing developers to enter the market and think outside the box in their developments."
Arguments in support: The California Apartment Association states in support, "California is struggling to meet the needs of its citizens when it comes to housing production, especially housing that is affordable near job centers and public transportation. We appreciate your proposed solution that meets the needs of local governments for economic development along with the construction of affordable housing for individuals and families who work in our communities.
Arguments in opposition: According to the League of California Cities, they have a number of concerns with the bill: "First density bonus law applies to housing developments of five or more units. It's based upon the premise that density bonus increases (and other concessions and incentives) allow a developer to recover the cost of constructing housing units that are affordable to certain income categories. The tradeoff is: Developer gives city affordable units; city gives developer density bonus and other concessions and incentives that reduce developer's costs. This bill says that a commercial developer which might have no connection to the housing developer gets a 20% variance from regulatory requirements (including floor area ratios) and fees. The bill simply requires the commercial developer to partner with the housing developer. There is no definition of "partners." There is also no definition of "commercial development". There is no fair trade off in this bill. The developer of the commercial development is giving the city nothing; yet the city gives the commercial developer a 20% variance in the regulatory requirements and fees.
Staff comments:
It's unclear to staff what are the appropriate types of concessions and incentives that a commercial developer should receive in return for partnering with an affordable housing developer. The bill would give a commercial developer a 20% variance of the local governments zoning ordinance or regulation, including but not limited to, floor area ratios or commercial linkage fees. In addition, commercial linkage fees are often used to fund production of a affordable housing. Modifying those fees could reduce funding overall for affordable housing. The committee may wish to consider modifying the language to more closely align with the state density bonus law by amending the language as follows:
This bill would also allow the affordable housing to be built within one-mile of the commercial development. The committee may wish to consider if that policy supports the goals of the bill to encourage mixed use development that combines commercial space and affordable housing development or if it should be deleted.
Committee amendments:
(a) When an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a mixed-used project for which the housing will be either located onsite at the proposed commercial development or located within a one-mile radius of the proposed commercial development, the city, county, or city and county shall, in addition to any density bonus and incentives or concessions granted to the affordable housing developer as prescribed in Section 65915 grant to the commercial developer a density bonus as prescribed in subdivision (b).
(b) The density bonus granted to the commercial developer shall mean exceptions resulting in significant cost reductions over the maximum allowable intensity in the general plan, zoning ordinance or other regulation, a density increase of up to 20 percent variance of the city, county, or city and county’s zoning ordinance or regulation, including, but not limited to, floor area ratios and may include modification to development standards such as heights and parking requirements. or commercial linkage fees.
Double referred: If AB 1934 passes this committee, the bill will be referred to the Committee on Local Government.
REGISTERED SUPPORT / OPPOSITION:
Support
California Apartment Association
Opposition
American Planning Association California Chapter
League of California Cities
Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085, Lisa Engel / H. & C.D. / (961) 319-2085
Discussed in Hearing
50SEC
Assembly Floor
2MIN
Senate Floor
7MIN
Senate Standing Committee on Transportation and Housing
54SEC
Assembly Floor
42SEC
Assembly Floor
3MIN
Assembly Standing Committee on Appropriations
4MIN
Assembly Standing Committee on Local Government
12MIN
Assembly Standing Committee on Housing and Community Development
Bill Author
Bill Co-Author(s):