AB 744: Planning and zoning: density bonuses.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-10-09
The Planning and Zoning Law requires, when a developer of housing 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 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 prohibits a city, county, or city and county from requiring a vehicular parking ratio for a housing development that meets these criteria in excess of specified ratios. This prohibition applies only at the request of the developer and specifies that the developer may request additional parking incentives or concessions.
This bill would, notwithstanding the above-described provisions, additionally prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio, inclusive of handicapped and guest parking, in excess of 0.5 spaces per bedroom on a development that includes the maximum percentage of low- or very low income units, as specified, and is located within1/2 mile of a major transit stop, as defined, and there is unobstructed access to the transit stop from the development. The bill would also prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio, inclusive of handicapped and guest parking, in excess of specified amounts per unit on a development that consists solely of units with an affordable housing cost to lower income households, as specified, if the development is within1/2 mile of a major transit stop and there is unobstructed access to the transit stop from the development, is a for-rent housing development for individuals that are 62 years of age or older that complies with specified existing laws regarding senior housing, or is a special needs housing development, as those terms are defined. The bill would require a subject development that is a for-rent housing development for individuals that are 62 years of age or older or a special needs housing development to have either paratransit service or unobstructed access, within 1/2 mile, to fixed bus route service that operates at least 8 times per day. The bill would authorize a city, county, or city and county to impose a higher vehicular parking ratio based on substantial evidence found in an areawide or jurisdictionwide parking study, as specified. The bill would make findings and declarations, including that the subject of the bill is a matter of statewide concern and not a municipal affair.
By imposing additional duties on local governments in awarding density bonuses, this bill would impose 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 a developer of housing 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 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 prohibits a city, county, or city and county from requiring a vehicular parking ratio for a housing development that meets these criteria in excess of specified ratios. This prohibition applies only at the request of the developer and specifies that the developer may request additional parking incentives or concessions.
This bill would, notwithstanding the above-described provisions, additionally prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio, inclusive of handicapped and guest parking, in excess of 0.5 spaces per bedroom on a development that includes the maximum percentage of low- or very low income units, as specified, and is located within1/2 mile of a major transit stop, as defined, and there is unobstructed access to the transit stop from the development. The bill would also prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio, inclusive of handicapped and guest parking, in excess of specified amounts per unit on a development that consists solely of units with an affordable housing cost to lower income households, as specified, if the development is within1/2 mile of a major transit stop and there is unobstructed access to the transit stop from the development, is a for-rent housing development for individuals that are 62 years of age or older that complies with specified existing laws regarding senior housing, or is a special needs housing development, as those terms are defined. The bill would require a subject development that is a for-rent housing development for individuals that are 62 years of age or older or a special needs housing development to have either paratransit service or unobstructed access, within 1/2 mile, to fixed bus route service that operates at least 8 times per day. The bill would authorize a city, county, or city and county to impose a higher vehicular parking ratio based on substantial evidence found in an areawide or jurisdictionwide parking study, as specified. The bill would make findings and declarations, including that the subject of the bill is a matter of statewide concern and not a municipal affair.
By imposing additional duties on local governments in awarding density bonuses, this bill would impose 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 a developer of housing 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 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 prohibits a city, county, or city and county from requiring a vehicular parking ratio for a housing development that meets these criteria in excess of specified ratios. This prohibition applies only at the request of the developer and specifies that the developer may request additional parking incentives or concessions.
This bill would, notwithstanding the above-described provisions, additionally prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio, inclusive of handicapped and guest parking, in excess of 0.5 spaces per bedroom on a development that includes the maximum percentage of low- or very low income units, as specified, and is located within1/2 mile of a major transit stop, as defined, and there is unobstructed access to the transit stop from the development. The bill would also prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio, inclusive of handicapped and guest parking, in excess of specified amounts per unit on a development that consists solely of units with an affordable housing cost to lower income households, as specified, if the development is within1/2 mile of a major transit stop and there is unobstructed access to the transit stop from the development, is a for-rent housing development for individuals that are 62 years of age or older that complies with specified existing laws regarding senior housing, or is a special needs housing development, as those terms are defined. The bill would require a subject development that is a for-rent housing development for individuals that are 62 years of age or older or a special needs housing development to have either paratransit service or be located unobstructed access, within 1/2 mile of mile, to fixed bus route service that operates at least 8 times per day. The bill would authorize a city, county, or city and county to impose a higher vehicular parking ratio based on substantial evidence found in an areawide or jurisdictionwide parking study, as specified. The bill would make findings and declarations in this regard, declarations, including that this constitutes the subject of the bill is a matter of statewide concern and is not a municipal affair.
By imposing additional duties on local governments in awarding density bonuses, this bill would impose 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
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 a developer of housing 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 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 prohibits a city, county, or city and county from requiring a vehicular parking ratio for a housing development that meets these criteria in excess of specified ratios. This prohibition applies only at the request of the developer and specifies that the developer may request additional parking incentives or concessions.
This bill would, notwithstanding the above-described provisions, additionally prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio ratio, inclusive of handicapped and guest parking, in excess of 0.5 spaces per bedroom on a development that includes the maximum percentage of low- or very low income units, as specified, and is located within one-half1/2 mile of a major transit stop, as defined, and there is unobstructed access to the transit stop from the development. The bill would also prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio, inclusive of handicapped and guest parking, in excess of specified amounts per unit on a development that consists solely of units with an affordable housing cost to lower income households, as specified, if the development is within one-half1/2 mile of a major transit stop and there is unobstructed access to the transit stop from the development, is a for-rent housing development for individuals that are 62 years of age or older, older that complies with specified existing laws regarding senior housing, or is a special needs housing development, as those terms are defined. The bill would require a subject development that is a for-rent housing development for individuals that are 62 years of age or older or a special needs housing development to have either paratransit service or be located within 1/2 mile of fixed bus route service that operates at least 8 times per day. The bill would make findings and declarations in this regard, including that this constitutes a matter of statewide concern and is not a municipal affair.
By imposing additional duties on local governments in awarding density bonuses, this bill would impose 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
The Planning and Zoning Law requires, when a developer of housing 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 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 prohibits a city, county, or city and county from requiring a vehicular parking ratio for a housing development that meets these criteria in excess of specified ratios. This prohibition applies only at the request of the developer and specifies that the developer may request additional parking incentives or concessions.
This bill would, notwithstanding the above-described provisions, additionally prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio in excess of 0.5 spaces per bedroom on a development that includes the maximum percentage of low- and or very low income units, as specified, and is located within one-half mile of a major transit stop, as defined, and there is unobstructed access to the transit stop from the development. The bill would also prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio in excess of specified amounts per unit on a development that consists solely of units with an affordable housing cost to lower income households, as specified, if the development is within one-half mile of a major transit stop and there is unobstructed access to the transit stop from the development, is a for-rent housing development for individuals that are 62 years of age or older, that complies with specified existing laws regarding senior housing, or is a special needs housing development, as those terms are defined. The bill would make findings and declarations in this regard, including that this constitutes a matter of statewide concern and is not a municipal affair.
By imposing additional duties on local governments in awarding density bonuses, this bill would impose 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
The Planning and Zoning Law requires, when a developer of housing 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 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 prohibits a city, county, or city and county from requiring a vehicular parking ratio for a housing development that meets these criteria in excess of specified ratios. This prohibition applies only at the request of the developer and specifies that the developer may request additional parking incentives or concessions.
This bill would additionally prohibit, at the request of the developer, a city, county, or city and county from imposing a minimum onsite parking requirement on a development that is located within one-half mile of a major transit stop, is a senior housing development, or is a special needs housing development, as those terms are defined. The bill would specify that a city, county, or city and county may impose a maximum onsite parking requirement for a development.
This bill would, notwithstanding the above-described provisions, additionally prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio in excess of 0.5 spaces per bedroom on a development that includes the maximum percentage of low- and very low income units, as specified, and is located within one-half mile of a major transit stop, as defined, and there is unobstructed access to the transit stop from the development. The bill would also prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio in excess of specified amounts per unit on a development that consists solely of units with an affordable housing cost to lower income households, as specified, if the development is within one-half mile of a major transit stop and there is unobstructed access to the transit stop from the development, is a for-rent housing development for individuals that are 62 years of age or older, or is a special needs housing development, as those terms are defined. The bill would make findings and declarations in this regard, including that this constitutes a matter of statewide concern and is not a municipal affair.
By imposing additional duties on local governments in awarding density bonuses, this bill would impose 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
The Planning and Zoning Law requires, when a developer of housing 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 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 prohibits a city, county, or city and county from requiring a vehicular parking ratio for a housing development that meets these criteria in excess of specified ratios. This prohibition applies only at the request of the developer and specifies that the developer may request additional parking incentives or concessions.
This bill would make technical, nonsubstantive changes to these provisions.
This bill would additionally prohibit, at the request of the developer, a city, county, or city and county from imposing a minimum onsite parking requirement on a development that is located within one-half mile of a major transit stop, is a senior housing development, or is a special needs housing development, as those terms are defined. The bill would specify that a city, county, or city and county may impose a maximum onsite parking requirement for a development.
By imposing additional duties on local governments in awarding density bonuses, this bill would impose 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
The Planning and Zoning Law requires, when a developer of housing 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 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.
This bill would make technical, nonsubstantive changes to these provisions.
The Legislature finds and declares all of the following:
(a)Having a healthy housing market that provides an adequate supply of homes that are affordable to Californians at all income levels is critical to the economic prosperity and quality of life in the state.
(b)There exists a severe shortage of affordable housing, especially for persons and families of extremely low, very low, and low income, and there is an immediate need to encourage the development of new housing, not only through the provision of financial assistance but also through reforms to regulation.
(c)Affordable housing is expensive to build in California.
(d)The cost of building affordable housing in California is impacted by local opposition, changes imposed by local design and review, and requirements for on-site parking.
(e)The average construction cost per space, excluding land cost, in a parking structure in the United States is about $24,000 for aboveground parking and $34,000 for underground parking. In an affordable housing project with a fixed budget, every $24,000 spent on a required parking space is $24,000 less to spend on housing.
(f)The biggest single determinant of vehicle miles traveled and therefore greenhouse gas emissions is ownership of a private vehicle.
(g)A review of developments funded through the Department of Housing and Community Developments Transit-Oriented Development Implementation Program (TOD program) shows that lower income households drive 25 to 30 percent fewer miles when living within one-half mile of transit than those living in non-TOD program areas. When living within one-quarter mile of frequent transit, they drove nearly 50 percent less.
(h)When cities require off-street parking with all new residential construction, they shift what should be the cost of driving, the cost of parking a car, into the cost of housing, which artificially increases the cost of housing.
(i)Increases in public transportation and shared mobility options and the development of more walkable and bikeable neighborhoods reduce the demand for parking.
(j)Consistent with Chapter 488 of the Statues of 2006 (AB 32) and Chapter 728 of the Statutes of 2008 (SB 375), it is state policy to promote transit-oriented infill development to reduce greenhouse gas emissions.
(k)The high cost of the land and improvements required to provide parking significantly increases the cost of transit-oriented development, making lower cost and affordable housing development financially infeasible and hindering the goals of SB 375.
(l)Eliminating minimum parking requirements will allow the limited funding available for affordable housing to support more housing for more Californians. A given housing subsidy fund can benefit about 6.5 times more households with no parking spaces than households with 2 spaces per unit.
(m)Minimum parking requirements provide large subsidies for parking, which in turn encourage more people to drive cars.
(n)Minimum parking requirements create a barrier to effective use of the density bonus law contained in Section 65915 of the Government Code. The parking required for the extra units adds construction and land costs that may be prohibitive and requires vacant land that may be unavailable, especially in locations near transit.
(o)Increasing the supply of affordable housing near transit helps achieve deeper affordability through reduced transportation costs, in addition to reduced housing costs.
(p)Governmental parking requirements for infill and transit-oriented development reduce the viability of transit by limiting the number of households or workers near transit, increasing walking distances, and degrading the pedestrian environment.
(q)Reducing or eliminating minimum parking requirements for infill and transit-oriented development and allowing builders and the market to decide how much parking is needed can achieve all of the following:
(1)Ensure sufficient amounts of parking at almost all times.
(2)Reduce the cost of development and increase the number of transit-accessible and affordable housing units.
(3)Allow for more effective use of the density bonus law.
(4)Increase density in areas with the most housing demand, and improve the viability of developing alternate modes of transportation, such as public transit, ridesharing, biking, and walking.
(5)Reduce greenhouse gas emissions and vehicle miles traveled by removing an incentive to drive.
(r)It is the intent of the Legislature to reduce the cost of development by eliminating excessive minimum parking requirements for transit-oriented developments that includes affordable housing, senior housing, and special needs housing.
(s)The Legislature further declares that the need to address infill development and excessive parking requirements 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, this act shall apply to all cities, including charter cities.
SEC. 2.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 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. 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 all of the following:
(a)Having a healthy housing market that provides an adequate supply of homes that are affordable to Californians at all income levels is critical to the economic prosperity and quality of life in the state.
(b)There exists a severe shortage of affordable housing, especially for persons and families of extremely low, very low, and low income, and there is an immediate need to encourage the development of new housing, not only through the provision of financial assistance but also through reforms to regulation.
(c)Affordable housing is expensive to build in California.
(d)The cost of building affordable housing in California is impacted by local opposition, changes imposed by local design and review, and requirements for on-site parking.
(e)The average construction cost per space, excluding land cost, in a parking structure in the United States is about $24,000 for aboveground parking and $34,000 for underground parking. In an affordable housing project with a fixed budget, every $24,000 spent on a required parking space is $24,000 less to spend on housing.
(f)The biggest single determinant of vehicle miles traveled and therefore greenhouse gas emissions is ownership of a private vehicle.
(g)A review of developments funded through the Department of Housing and Community Developments Transit-Oriented Development Implementation Program (TOD program) shows that lower income households drive 25 to 30 percent fewer miles when living within one-half mile of transit than those living in non-TOD program areas. When living within one-quarter mile of frequent transit, they drove nearly 50 percent less.
(h)When cities require off-street parking with all new residential construction, they shift what should be the cost of driving, the cost of parking a car, into the cost of housing, which artificially increases the cost of housing.
(i)Increases in public transportation and shared mobility options and the development of more walkable and bikeable neighborhoods reduce the demand for parking.
(j)Consistent with Chapter 488 of the Statues of 2006 (AB 32) and Chapter 728 of the Statutes of 2008 (SB 375), it is state policy to promote transit-oriented infill development to reduce greenhouse gas emissions.
(k)The high cost of the land and improvements required to provide parking significantly increases the cost of transit-oriented development, making lower cost and affordable housing development financially infeasible and hindering the goals of SB 375.
(l)Eliminating minimum parking requirements will allow the limited funding available for affordable housing to support more housing for more Californians. A given housing subsidy fund can benefit about 6.5 times more households with no parking spaces than households with 2 spaces per unit.
(m)Minimum parking requirements provide large subsidies for parking, which in turn encourage more people to drive cars.
(n)Minimum parking requirements create a barrier to effective use of the density bonus law contained in Section 65915 of the Government Code. The parking required for the extra units adds construction and land costs that may be prohibitive and requires vacant land that may be unavailable, especially in locations near transit.
(o)Increasing the supply of affordable housing near transit helps achieve deeper affordability through reduced transportation costs, in addition to reduced housing costs.
(p)Governmental parking requirements for infill and transit-oriented development reduce the viability of transit by limiting the number of households or workers near transit, increasing walking distances, and degrading the pedestrian environment.
(q)Reducing or eliminating minimum parking requirements for infill and transit-oriented development and allowing builders and the market to decide how much parking is needed can achieve all of the following:
(1)Ensure sufficient amounts of parking at almost all times.
(2)Reduce the cost of development and increase the number of transit-accessible and affordable housing units.
(3)Allow for more effective use of the density bonus law.
(4)Increase density in areas with the most housing demand, and improve the viability of developing alternate modes of transportation, such as public transit, ridesharing, biking, and walking.
(5)Reduce greenhouse gas emissions and vehicle miles traveled by removing an incentive to drive.
(r)It is the intent of the Legislature to reduce the cost of development by eliminating excessive minimum parking requirements for transit-oriented developments that includes affordable housing, senior housing, and special needs housing.
(s)The Legislature further declares that the need to address infill development and excessive parking requirements 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, this act shall apply to all cities, including charter cities.
SEC. 2.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 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. 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 all of the following:
(a)Having a healthy housing market that provides an adequate supply of homes that are affordable to Californians at all income levels is critical to the economic prosperity and quality of life in the state.
(b)There exists a severe shortage of affordable housing, especially for persons and families of extremely low, very low, and low income, and there is an immediate need to encourage the development of new housing, not only through the provision of financial assistance but also through reforms to regulation.
(c)Affordable housing is expensive to build in California.
(d)The cost of building affordable housing in California is impacted by local opposition, changes imposed by local design and review, and requirements for on-site parking.
(e)The average construction cost per space, excluding land cost, in a parking structure in the United States is about $24,000 for aboveground parking and $34,000 for underground parking. In an affordable housing project with a fixed budget, every $24,000 spent on a required parking space is $24,000 less to spend on housing.
(f)The biggest single determinant of vehicle miles traveled and therefore greenhouse gas emissions is ownership of a private vehicle.
(g)A review of developments funded through the Department of Housing and Community Developments Transit-Oriented Development Implementation Program (TOD program) shows that lower income households drive 25 to 30 percent fewer miles when living within one-half mile of transit than those living in non-TOD program areas. When living within one-quarter mile of frequent transit, they drove nearly 50 percent less.
(h)When cities require off-street parking with all new residential construction, they shift what should be the cost of driving, the cost of parking a car, into the cost of housing, which artificially increases the cost of housing.
(i)Increases in public transportation and shared mobility options and the development of more walkable and bikeable neighborhoods reduce the demand for parking.
(j)Consistent with Chapter 488 of the Statues of 2006 (AB 32) and Chapter 728 of the Statutes of 2008 (SB 375), it is state policy to promote transit-oriented infill development to reduce greenhouse gas emissions.
(k)The high cost of the land and improvements required to provide parking significantly increases the cost of transit-oriented development, making lower cost and affordable housing development financially infeasible and hindering the goals of SB 375.
(l)Eliminating minimum parking requirements will allow the limited funding available for affordable housing to support more housing for more Californians. A given housing subsidy fund can benefit about 6.5 times more households with no parking spaces than households with 2 spaces per unit.
(m)Minimum parking requirements provide large subsidies for parking, which in turn encourage more people to drive cars.
(n)Minimum parking requirements create a barrier to effective use of the density bonus law contained in Section 65915 of the Government Code. The parking required for the extra units adds construction and land costs that may be prohibitive and requires vacant land that may be unavailable, especially in locations near transit.
(o)Increasing the supply of affordable housing near transit helps achieve deeper affordability through reduced transportation costs, in addition to reduced housing costs.
(p)Governmental parking requirements for infill and transit-oriented development reduce the viability of transit by limiting the number of households or workers near transit, increasing walking distances, and degrading the pedestrian environment.
(q)Reducing or eliminating minimum parking requirements for infill and transit-oriented development and allowing builders and the market to decide how much parking is needed can achieve all of the following:
(1)Ensure sufficient amounts of parking at almost all times.
(2)Reduce the cost of development and increase the number of transit-accessible and affordable housing units.
(3)Allow for more effective use of the density bonus law.
(4)Increase density in areas with the most housing demand, and improve the viability of developing alternate modes of transportation, such as public transit, ridesharing, biking, and walking.
(5)Reduce greenhouse gas emissions and vehicle miles traveled by removing an incentive to drive.
(r)It is the intent of the Legislature to reduce the cost of development by eliminating excessive minimum parking requirements for transit-oriented developments that includes affordable housing, senior housing, and special needs housing.
(s)The Legislature further declares that the need to address infill development and excessive parking requirements 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, this act shall apply to all cities, including charter cities.
SEC. 2.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 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. For purposes of this paragraph, a development shall have unobstructed access to the major transit stop if a resident is able to access the major transit stop without encountering natural or constructed impediments.
(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 be located unobstructed access, within one-half mile of 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 be located unobstructed access, within one-half mile of 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 or county, city and county county, or an independent consultant has conducted an area-wide or jurisdiction-wide 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 conducted by an independent consultant, 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, and the effect of parking requirements on the cost of market-rate and subsidized developments. 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 findings, based on a parking study completed in conformity with this paragraph, supporting the need for the higher parking ratio.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
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 all of the following:
(a)Having a healthy housing market that provides an adequate supply of homes that are affordable to Californians at all income levels is critical to the economic prosperity and quality of life in the state.
(b)There exists a severe shortage of affordable housing, especially for persons and families of extremely low, very low low, and low income, and there is an immediate need to encourage the development of new housing, not only through the provision of financial assistance but also through reforms to regulation.
(c)Affordable housing is expensive to build in California.
(d)The cost of building affordable housing in California is impacted by local opposition, changes imposed by local design and review, and requirements for on-site parking.
(e)The average construction cost per space, excluding land cost, in a parking structure in the United States is about $24,000 for aboveground parking and $34,000 for underground parking. In an affordable housing project with a fixed budget, every $24,000 spent on a required parking space is $24,000 less to spend on housing.
(f)The biggest single determinant of vehicle miles traveled and therefore greenhouse gas emissions is ownership of a private vehicle.
(g)A review of developments funded through the Department of Housing and Community Developments Transit-Oriented Development Implementation Program (TOD program) shows that lower Income income households drive 25 to 30 percent fewer miles when living within one-half mile of transit than those living in non-TOD program areas. When living within one-quarter mile of frequent transit, they drove nearly 50 percent less.
(h)When cities require off-street parking with all new residential construction, they shift what should be the cost of driving, the cost of parking a car, into the cost of housing, which artificially increases the cost of housing.
(i)Increases in public transportation and shared mobility options and the development of more walkable and bikeable neighborhoods reduce the demand for parking.
(j)Consistent with Chapter 488 of the Statues of 2006 (AB 32) and Chapter 728 of the Statutes of 2008 (SB 375), it is state policy to promote transit-oriented infill development to reduce greenhouse gas emissions.
(k)The high cost of the land and improvements required to provide parking significantly increases the cost of transit-oriented development, making lower cost and affordable housing development financially infeasible and hindering the goals of SB 375.
(l)Eliminating minimum parking requirements will allow the limited funding available for affordable housing to support more housing for more Californians. A given housing subsidy fund can benefit about 6.5 times more households with no parking spaces than households with 2 spaces per unit.
(m)Minimum parking requirements provide large subsidies for parking, which in turn encourage more people to drive cars.
(n)Minimum parking requirements create a barrier to effective use of the density bonus law contained in Section 65915 of the Government Code. The parking required for the extra units adds construction and land costs that may be prohibitive and requires vacant land that may be unavailable, especially in locations near transit.
(o)Increasing the supply of affordable housing near transit helps achieve deeper affordability through reduced transportation costs, in addition to reduced housing costs.
(p)Governmental parking requirements for infill and transit-oriented development reduce the viability of transit by limiting the number of households or workers near transit, increasing walking distances, and degrading the pedestrian environment.
(q)Reducing or eliminating minimum parking requirements for infill and transit-oriented development and allowing builders and the market to decide how much parking is needed can achieve all of the following:
(1)Ensure sufficient amounts of parking at almost all times.
(2)Reduce the cost of development and increase the number of transit-accessible and affordable housing units.
(3)Allow for more effective use of the density bonus law.
(4)Increase density in areas with the most housing demand, and improve the viability of developing alternate modes of transportation, such as public transit, ridesharing, biking, and walking.
(5)Reduce greenhouse gas emissions and vehicle miles traveled by removing an incentive to drive.
(r)It is the intent of the Legislature to reduce the cost of development by eliminating excessive minimum parking requirements for transit-oriented developments that includes affordable housing, senior housing, and special needs housing.
(s)The Legislature further declares that the need to address infill development and excessive parking requirements 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, this act shall apply to all cities, including charter cities.
SEC. 2.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 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 ratio, inclusive of handicapped and guest parking, that exceeds 0.5 spaces per bedroom.
(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 minimum vehicular parking requirement, if the development meets any of the following criteria: ratio, inclusive of handicapped and guest parking, that exceeds the following ratios:
(A)The 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. development, the ratio shall not exceed 0.5 spaces per unit. For purposes of this paragraph, a development shall have unobstructed access to the major transit stop if a resident is able to walk to access the major transit stop without encountering natural or constructed impediments.
(B)The 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. Code, the ratio shall not exceed 0.5 spaces per unit. The development shall have either paratransit service or be located within one-half mile of fixed bus route service that operates at least eight times per day.
(C)The If the development is a special needs housing development, as defined in Section 51312 of the Health and Safety Code. Code, the ratio shall not exceed 0.3 spaces per unit. The development shall have either paratransit service or be located within one-half mile of 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 or city and county has conducted an area-wide or jurisdiction-wide parking study in the last 5 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 conducted by an independent consultant, 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, and the effect of parking requirements on the cost of market-rate and subsidized developments. The city, county, or city and county shall make findings supporting the need for the higher parking ratio.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
The Legislature finds and declares all of the following:
(a)Having a healthy housing market that provides an adequate supply of homes that are affordable to Californians at all income levels is critical to the economic prosperity and quality of life in the state.
(b)There exists a severe shortage of affordable housing, especially for persons and families of extremely low, very low and low income, and there is an immediate need to encourage the development of new housing, not only through the provision of financial assistance but also through reforms to regulation.
(c)Affordable housing is expensive to build in California.
(d)The cost of building affordable housing in California is impacted by local opposition, changes imposed by local design and review, and requirements for on-site parking.
(e)The average construction cost per space, excluding land cost, in a parking structure in the United States is about $24,000 for aboveground parking and $34,000 for underground parking. In an affordable housing project with a fixed budget, every $24,000 spent on a required parking space is $24,000 less to spend on housing.
(f)The biggest single determinant of vehicle miles traveled and therefore greenhouse gas emissions is ownership of a private vehicle.
(g)A review of developments funded through the Department of Housing and Community Developments Transit-Oriented Development Implementation Program (TOD program) shows that lower Income households drive 25 to 30 percent fewer miles when living within one-half mile of transit than those living in non-TOD program areas. When living within one-quarter mile of frequent transit, they drove nearly 50 percent less.
(h)When cities require off-street parking with all new residential construction, they shift what should be the cost of driving, the cost of parking a car, into the cost of housing, which artificially increases the cost of housing.
(i)Increases in public transportation and shared mobility options and the development of more walkable and bikeable neighborhoods reduce the demand for parking.
(j)Consistent with Chapter 488 of the Statues of 2006 (AB 32) and Chapter 728 of the Statutes of 2008 (SB 375), it is state policy to promote transit-oriented infill development to reduce greenhouse gas emissions.
(k)The high cost of the land and improvements required to provide parking significantly increases the cost of transit-oriented development, making lower cost and affordable housing development financially infeasible and hindering the goals of SB 375.
(l)Eliminating minimum parking requirements will allow the limited funding available for affordable housing to support more housing for more Californians. A given housing subsidy fund can benefit about 6.5 times more households with no parking spaces than households with 2 spaces per unit.
(m)Minimum parking requirements provide large subsidies for parking, which in turn encourage more people to drive cars.
(n)Minimum parking requirements create a barrier to effective use of the density bonus law contained in Section 65915 of the Government Code. The parking required for the extra units adds construction and land costs that may be prohibitive and requires vacant land that may be unavailable, especially in locations near transit.
(o)Increasing the supply of affordable housing near transit helps achieve deeper affordability through reduced transportation costs, in addition to reduced housing costs.
(p)Governmental parking requirements for infill and transit-oriented development reduce the viability of transit by limiting the number of households or workers near transit, increasing walking distances, and degrading the pedestrian environment.
(q)Reducing or eliminating minimum parking requirements for infill and transit-oriented development and allowing builders and the market to decide how much parking is needed can achieve all of the following:
(1)Ensure sufficient amounts of parking at almost all times.
(2)Reduce the cost of development and increase the number of transit-accessible and affordable housing units.
(3)Allow for more effective use of the density bonus law.
(4)Increase density in areas with the most housing demand, and improve the viability of developing alternate modes of transportation, such as public transit, ridesharing, biking, and walking.
(5)Reduce greenhouse gas emissions and vehicle miles traveled by removing an incentive to drive.
(r)It is the intent of the Legislature to reduce the cost of development by eliminating excessive minimum parking requirements for transit-oriented developments that includes affordable housing, senior housing, and special needs housing.
(s)The Legislature further declares that the need to address infill development and excessive parking requirements 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, this act shall apply to all cities, including charter cities.
SEC. 2.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 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), 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 subdivision (b), 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- and 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 that exceeds 0.5 spaces per bedroom.
(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 minimum vehicular parking requirement, if the development meets any of the following criteria:
(A)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. For purposes of this paragraph, a development shall have unobstructed access to the major transit stop if a resident is able to walk to the major transit stop without encountering natural or constructed impediments.
(B)The development is a for-rent housing development for individuals who are 62 years of age or older. older that complies with Sections 51.2 and 51.3 of the Civil Code.
(C)The development is a special needs housing development, as defined in Section 51312 of the Health and Safety Code.
(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 subdivision 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), a if a city, county or city and county has conducted an area-wide or jurisdiction-wide parking study in the last 5 years, then the city, county, or city and county may impose a higher parking standard, vehicular parking ratio not to exceed the standard ratio described in paragraph (1), based upon substantial evidence found in an area-wide, or jurisdiction-wide the parking study conducted by an independent consultant within the last 5 years, consultant, 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, and the effect of parking requirements on the cost of market-rate and subsidized developments. The city, county, or city and county shall make findings supporting the need for the higher parking ratio.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
The Legislature finds and declares all of the following:
(a)Having a healthy housing market that provides an adequate supply of homes that are affordable to Californians at all income levels is critical to the economic prosperity and quality of life in the state.
(b)There exists a severe shortage of affordable housing, especially for persons and families of extremely low, very low and low income, and there is an immediate need to encourage the development of new housing, not only through the provision of financial assistance but also through reforms to regulation.
(c)Affordable housing is expensive to build in California.
(d)The cost of building affordable housing in California is impacted by local opposition, changes imposed by local design and review, and requirements for on-site parking.
(e)The average construction cost per space, excluding land cost, in a parking structure in the United States is about $24,000 for aboveground parking and $34,000 for underground parking. In an affordable housing project with a fixed budget, every $24,000 spent on a required parking space is $24,000 less to spend on housing.
(f)The biggest single determinant of vehicle miles traveled and therefore greenhouse gas emissions is ownership of a private vehicle.
(g)A review of developments funded through the Department of Housing and Community Developments Transit-Oriented Development Implementation Program (TOD program) shows that lower Income households drive 25 to 30 percent fewer miles when living within one-half mile of transit than those living in non-TOD program areas. When living within one-quarter mile of frequent transit, they drove nearly 50 percent less.
(h)When cities require off-street parking with all new residential construction, they shift what should be the cost of driving, the cost of parking a car, into the cost of housing, which artificially increases the cost of housing.
(i)Increases in public transportation and shared mobility options and the development of more walkable and bikeable neighborhoods reduce the demand for parking.
(j)Consistent with Chapter 488 of the Statues of 2006 (AB 32) and Chapter 728 of the Statutes of 2008 (SB 375), it is state policy to promote transit-oriented infill development to reduce greenhouse gas emissions.
(k)The high cost of the land and improvements required to provide parking significantly increases the cost of transit-oriented development, making lower cost and affordable housing development financially infeasible and hindering the goals of SB 375.
(l)Eliminating minimum parking requirements will allow the limited funding available for affordable housing to support more housing for more Californians. A given housing subsidy fund can benefit about 6.5 times more households with no parking spaces than households with 2 spaces per unit.
(m)Minimum parking requirements provide large subsidies for parking, which in turn encourage more people to drive cars.
(n)Minimum parking requirements create a barrier to effective use of the density bonus law contained in Section 65915 of the Government Code. The parking required for the extra units adds construction and land costs that may be prohibitive and requires vacant land that may be unavailable, especially in locations near transit.
(o)Increasing the supply of affordable housing near transit helps achieve deeper affordability through reduced transportation costs, in addition to reduced housing costs.
(p)Governmental parking requirements for infill and transit-oriented development reduce the viability of transit by limiting the number of households or workers near transit, increasing walking distances, and degrading the pedestrian environment.
(q)Reducing or eliminating minimum parking requirements for infill and transit-oriented development and allowing builders and the market to decide how much parking is needed can achieve all of the following:
(1)Ensure sufficient amounts of parking at almost all times.
(2)Reduce the cost of development and increase the number of transit-accessible and affordable housing units.
(3)Allow for more effective use of the density bonus law.
(4)Increase density in areas with the most housing demand, and improve the viability of developing alternate modes of transportation, such as public transit, ridesharing, biking, and walking.
(5)Reduce greenhouse gas emissions and vehicle miles traveled by removing an incentive to drive.
(r)It is the intent of the Legislature to reduce the cost of development by eliminating excessive minimum parking requirements for transit-oriented developments that includes affordable housing, senior housing, and special needs housing.
(s)The Legislature further declares that the need to address infill development and excessive parking requirements 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, this act shall apply to all cities, including charter cities.
SECTION 1. SEC. 2.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, including, but not limited to, maximum allowable density, total affordable units, and the total amount of density bonus, 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, including, but not limited to, maximum allowable density, total affordable units, and the total amount of density bonus, 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 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)Upon the request of the developer, Except as provided in paragraphs (2) and (3), 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 subdivision (b), 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)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 onsite parking through tandem parking or uncovered parking, but not through onstreet parking.
(3)Upon the request of the developer, a city, county, or city and county shall not impose a minimum onsite parking requirement on a development that meets any of the following criteria:
(A)The development is located within one-half mile of a major transit stop. For the purposes of this subparagraph, major transit stop has the same meaning as that term is defined in Section 21064.3 of the Public Resources Code and also includes a major transit stop that is included in the applicable regional transportation plan. A project shall be considered to be within one-half mile of a major transit stop if all parcels within the project have no more than 25 percent of their area farther than one-half mile of the major transit stop and if not more than 10 percent of the residential units or 100 units, whichever is fewer, in the project are farther than one-half mile from the major transit stop.
(B)The development is a senior citizen housing development, as defined in Sections 51.3 and 51.12 of the Civil Code.
(2)Notwithstanding paragraph (1), if a development includes the maximum percentage of low- and 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 that exceeds 0.5 spaces per bedroom.
(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 minimum vehicular parking requirement, if the development meets any of the following criteria:
(A)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.
(B)The development is a for-rent housing development for individuals who are 62 years of age or older.
(C)The development is a special needs housing development, as defined in Section 51312 of the Health and Safety Code.
(4)Notwithstanding paragraph (3), this subdivision does not preclude a city, county, or city and county from imposing a maximum onsite parking requirement for a development.
(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 subdivision (b) 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), a city, county, or city and county may impose a higher parking standard, not to exceed the standard described in paragraph (1), based upon substantial evidence found in an area-wide, or jurisdiction-wide parking study conducted by an independent consultant within the last 5 years, 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, and the effect of parking requirements on the cost of market-rate and subsidized developments. The city, county, or city and county shall make findings supporting the need for the higher parking ratio.
SEC. 2. SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(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 calculations, including, but not limited to, maximum allowable density, total affordable units, and the total amount of density bonus, 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 calculations, including, but not limited to, maximum allowable density, total affordable units, and the total amount of density bonus, 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 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 shall does not be construed to 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)Upon the request of the developer, no 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 subdivision (b), 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)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 onsite parking through tandem parking or uncovered parking, but not through onstreet parking.
(3)Upon the request of the developer, a city, county, or city and county shall not impose a minimum onsite parking requirement on a development that meets any of the following criteria:
(A)The development is located within one-half mile of a major transit stop. For the purposes of this subparagraph, major transit stop has the same meaning as that term is defined in Section 21064.3 of the Public Resources Code and also includes a major transit stop that is included in the applicable regional transportation plan. A project shall be considered to be within one-half mile of a major transit stop if all parcels within the project have no more than 25 percent of their area farther than one-half mile of the major transit stop and if not more than 10 percent of the residential units or 100 units, whichever is fewer, in the project are farther than one-half mile from the major transit stop.
(B)The development is a senior citizen housing development, as defined in Sections 51.3 and 51.12 of the Civil Code.
(C)The development is a special needs development, as defined in Section 51312 of the Health and Safety Code.
(4)Notwithstanding paragraph (3), this subdivision does not preclude a city, county, or city and county from imposing a maximum onsite parking requirement for a development.
(3)
(5)This subdivision shall apply to a development that meets the requirements of subdivision (b) 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).
SEC. 2.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(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 development, as defined in Section 4100 of the Civil Code 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), the 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 their 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 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 shall not be construed to 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)Upon the request of the developer, no city, county, or city and county shall require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development meeting the criteria of subdivision (b), 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)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 onsite parking through tandem parking or uncovered parking, but not through onstreet parking.
(3)This subdivision shall apply to a development that meets the requirements of subdivision (b) 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).
|
Date
|
Status
|
|---|---|
| Jun 23, 2015 | 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. |
| Oct 9, 2015 | Chaptered by Secretary of State - Chapter 699, Statutes of 2015. |
| Oct 9, 2015 | Approved by the Governor. |
| Sep 15, 2015 | Enrolled and presented to the Governor at 4 p.m. |
| Sep 2, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 54. Noes 25.). |
| Sep 2, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 54. Noes 25. Page 2771.). |
| Aug 31, 2015 | Read third time. Passed. Ordered to the Assembly. (Ayes 22. Noes 15. Page 2295.). |
| Aug 31, 2015 | Read third time. Passed. Ordered to the Assembly. |
| Aug 31, 2015 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 2 pursuant to Assembly Rule 77. |
| Aug 18, 2015 | Read second time and amended. Ordered to third reading. |
| Aug 17, 2015 | From committee: Be placed on second reading file pursuant to Senate Rule 28.8 and be amended. |
| Jul 15, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 2.) (July 15). Re-referred to Com. on APPR. |
| Jul 8, 2015 | From committee: Do pass and re-refer to Com. on GOV. & F. (Ayes 7. Noes 4.) (July 7). Re-referred to Com. on GOV. & F. |
| Jul 8, 2015 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on GOV. & F. |
| Jun 30, 2015 | In committee: Testimony taken. Hearing postponed by committee. |
| Feb 25, 2015 | Read first time. To print. |
| Jun 18, 2015 | Referred to Coms. on T. & H. and GOV. & F. |
| Jun 4, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 52. Noes 24. Page 1910.) |
| Jun 4, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jun 2, 2015 | Read third time and amended. Ordered to third reading. (Page 1763.) |
| Jun 2, 2015 | Read third time and amended. Ordered to third reading. |
| May 28, 2015 | Read second time. Ordered to third reading. |
| May 27, 2015 | From committee: Do pass. (Ayes 12. Noes 4.) (May 27). |
| May 13, 2015 | In committee: Hearing postponed by committee. |
| Apr 30, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 2.) (April 29). Re-referred to Com. on APPR. |
| Apr 15, 2015 | From committee: Do pass and re-refer to Com. on L. GOV. (Ayes 6. Noes 1.) (April 15). Re-referred to Com. on L. GOV. |
| Apr 6, 2015 | Re-referred to Com. on H. & C.D. |
| Mar 26, 2015 | Referred to Coms. on H. & C.D. and L. GOV. |
| Mar 26, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended. |
| Feb 26, 2015 | From printer. May be heard in committee March 28. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 2, 2015 | AB 744 CHAU Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 31, 2015 | Assembly 3rd Reading AB744 Chau By Wieckowski | Senate Floor |
Passed |
|
| Jul 15, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Governance and Finance |
Passed |
|
| Jul 7, 2015 | Do pass, but first be re-referred to the Committee on [Governance and Finance] | Senate Standing Committee on Transportation and Housing |
Passed |
|
| Jun 4, 2015 | AB 744 CHAU Assembly Third Reading | Assembly Floor |
Passed |
|
| May 27, 2015 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 29, 2015 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Local Government |
Passed |
|
| Apr 15, 2015 | 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
|
|---|---|---|
| AARP | ** Support | Aug 31, 2015 |
| American Lung Association in California | * Support | Jun 30, 2015 |
| American Planning Association, California Chapter | ** Support | Aug 31, 2015 |
| Association Of Regional Center Agencies | ** Support | Aug 31, 2015 |
| Blaydes & Associates | ** Support | Aug 31, 2015 |
| Blaydes & Associates American Planning Association | ** Support | Jul 7, 2015 |
| California Apartment Association | ** Support | Aug 31, 2015 |
| California Association Of Housing Authorities | ** Support | Aug 31, 2015 |
| California Association Of Local Housing Finance Agencies | ** Support | Aug 31, 2015 |
| California Bicycle Coalition | ** Support | Aug 31, 2015 |
| California Council For Affordable Housing | ** Support | Aug 31, 2015 |
| California Economic Summit | ** Support | Aug 31, 2015 |
| California Housing Consortium | ** Support | Aug 31, 2015 |
| California Housing Partnership Corporation | ** Support | Aug 31, 2015 |
| California League Of Conservation Voters | ** Support | Aug 31, 2015 |
| California Rural Legal Assistance Foundation, Inc. | ** Support | Aug 31, 2015 |
| California State Treasurer, John Chiang | ** Support | Aug 31, 2015 |
| Camarillo, City Of | * Against | Jun 30, 2015 |
| Circulate San Diego | ** Support | Aug 31, 2015 |
| City of Brentwood | ** Against | Aug 31, 2015 |
| City of Calimesa | ** Against | Aug 31, 2015 |
| City of Dublin | ** Against | Aug 31, 2015 |
| City of Fortuna | ** Against | Aug 31, 2015 |
| City of Highland | ** Against | Aug 31, 2015 |
| City Of Lomita | ** Against | Aug 31, 2015 |
| City of Richmond, California | ** Support | Aug 31, 2015 |
| City of San Rafael | ** Against | Aug 31, 2015 |
| City Of Seaside | ** Against | Aug 31, 2015 |
| Colton, City Of | ** Against | Aug 31, 2015 |
| Concord, City Of | ** Against | Aug 31, 2015 |
| Council of Infill Builders | ** Support | Aug 31, 2015 |
| Councilmember Dominic Farinha, City of Patterson | ** Support | Aug 31, 2015 |
| Councilmember Jake McKenzie, City of Rohnert Park | ** Support | Aug 31, 2015 |
| Councilmember Pam O'Connor, City of Santa Monica | ** Support | Aug 31, 2015 |
| Councilmember Rebecca J. Garcia, City of Watsonville | ** Support | Aug 31, 2015 |
| Councilmember Steve Hansen, City of Sacramento | ** Support | Aug 31, 2015 |
| Councilmember Wendy Thomas, City of Placerville | ** Support | Aug 31, 2015 |
| Councilwoman Michelle Martinez, City of Santa Ana | ** Support | Aug 31, 2015 |
| County Of Los Angeles | ** Against | Aug 31, 2015 |
| Domestic Bill | * Indeterminate | Jul 7, 2015 |
| Domus Development | ** Support | Aug 31, 2015 |
| EAH Housing | ** Support | Aug 31, 2015 |
| Eden Housing | ** Support | Aug 31, 2015 |
| Encinitas, City Of | ** Against | Aug 31, 2015 |
| Enterprise Community Partners | ** Support | Aug 31, 2015 |
| Glendale, City Of | ** Against | Aug 31, 2015 |
| Greenbelt Alliance | ** Support | Aug 31, 2015 |
| Habitat for Humanity Greater San Francisco | ** Support | Aug 31, 2015 |
| Housing Authority of the City of Alameda | ** Support | Aug 31, 2015 |
| Housing California | ** Support | Aug 31, 2015 |
| Housing Leadership Council of San Mateo County | ** Support | Aug 31, 2015 |
| Kate Meis, Executive Director, Local Government Commission | ** Support | Aug 31, 2015 |
| Lakewood, City Of | * Against | Jun 30, 2015 |
| League Of California Cities | ** Against | Aug 31, 2015 |
| LifeSTEPS | ** Support | Aug 31, 2015 |
| LINC Housing | ** Support | Aug 31, 2015 |
| Local Government Commission | ** Support | Aug 31, 2015 |
| Los Angeles County Board of Supervisors | * Indeterminate | Jul 7, 2015 |
| Lyft, Inc. | ** Support | Aug 31, 2015 |
| Marin Cities | * Indeterminate | Jul 7, 2015 |
| Marin County Council of Mayors and Council Members | ** Against | Aug 31, 2015 |
| Mayor Ed Lee | * Indeterminate | Jul 7, 2015 |
| Mayor Ed Lee, City of San Francisco | ** Support | Aug 31, 2015 |
| Mayor Libby Schaaf, City of Oakland | ** Support | Aug 31, 2015 |
| Mayor Pro Tem Jon Harrison, City of Redlands | ** Support | Aug 31, 2015 |
| Mayor Tom Butt, City of Richmond | ** Support | Aug 31, 2015 |
| Mercy Housing California | ** Support | Aug 31, 2015 |
| Metropolitan Transportation Commission | ** Support | Aug 31, 2015 |
| National Community Renaissance | ** Support | Aug 31, 2015 |
| Natural Recourses Defense Council | ** Support | Aug 31, 2015 |
| Natural Resources Defense Council | * Indeterminate | Jul 7, 2015 |
| NelsonNygaard Consulting Associates | ** Support | Aug 31, 2015 |
| Non-Profit Housing Association of Northern California | ** Support | Aug 31, 2015 |
| Norwalk, City Of And Norwalk Redevelopment Agency | ** Against | Aug 31, 2015 |
| NTC | * Support | Jun 30, 2015 |
| Palmdale, City Of | ** Against | Aug 31, 2015 |
| Rebecca J. Garcia, Councilmember, City of Watsonville | ** Support | Jul 7, 2015 |
| Sacramento Housing Alliance | ** Support | Aug 31, 2015 |
| San Diego County Bike Coalition | ** Support | Jul 7, 2015 |
| San Diego Housing Federation | ** Support | Aug 31, 2015 |
| San Francisco Bay Area Rapid Transit District | ** Support | Aug 31, 2015 |
| San Marcos, City Of | * Against | Jun 30, 2015 |
| San Rafael/Marin County Council Of Mayors & Council Members, City Of | * Against | Jun 30, 2015 |
| Satellite Affordable Housing Associates | ** Support | Aug 31, 2015 |
| Southern California Association of Nonprofit Housing | ** Support | Aug 31, 2015 |
| Supervisor Leticia Perez, Kern County | ** Support | Aug 31, 2015 |
| Tenderloin Neighborhood Development Corporation | ** Support | Aug 31, 2015 |
| Transform | ** Support | Aug 31, 2015 |
| United Cerebral Palsy California Coalition | * Support | Jun 30, 2015 |
| USGBC California | ** Support | Aug 31, 2015 |
| VALLEY INDUSTRY AND COMMERCE ASSOCIATION | ** Support | Aug 31, 2015 |
| Walnut Creek, City Of | ** Against | Aug 31, 2015 |
| Western Center On Law And Poverty Inc. | * Support | Jun 30, 2015 |
AB 744
Page 4
CONCURRENCE IN SENATE AMENDMENTS
AB 744
(Chau and Quirk)
As Amended August 18, 2015
Majority vote
ASSEMBLY: |
52-24 |
(June 4, 2015) |
SENATE: |
22-15 |
(August 31, 2015) |
Original Committee Reference: H. & C.D.
SUMMARY: Requires a local government, upon the request of a developer that receives a density bonus, to reduce the minimum parking requirements for a housing development, if it meets specified criteria. Specifically, this bill:
Provides that if a development is 100% affordable to lower income families then upon the request of a developer, a city, county, or city and county, shall reduce the minimum parking requirements for the development, as follows:
If the development is located within one-half mile of a major transit stop and there is unobstructed access to the major transit stop from the development, the ratio shall not exceed 0.5 spaces per unit.
If the development is a for-rent housing development for individuals who are 62 years of age or older, the ratio shall not exceed 0.5 spaces per unit. The development must have either paratransit service or have unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.
If the development is a special needs housing development, the ratio shall not exceed 0.3 spaces per unit. The development must have either paratransit service or have unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.
Provides that when a developer agrees to include the maximum number of very low- or low-income units under Density Bonus Law, and the development is within one-half mile of a major transit stop and with 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 parking ratio that exceeds 0.5 spaces per bedroom.
Requires the above specified parking ratios to be inclusive of handicapped and guest parking.
Defines "unobstructed access" as a resident being able to access the transit stop without encountering natural or constructed impediments.
Defines a "major transit stop" as a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency-of-service interval of 15 minutes or less during the morning and afternoon peak commute periods.
Provides that this bill does not preclude a city, county, or city and county from reducing or eliminating a parking requirement for developments of any type or location.
Allows a city, county, or city and county that conducted an area-wide or jurisdiction-wide parking study within the last seven years to impose a higher vehicular parking ratio that does not exceed the standard under Density Bonus Law. The study must be based on substantial evidence and include, but not be 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 development, and the lower rates of car ownership for very low- and low- income individuals, including seniors and special needs individuals. Any new study shall be paid for by the city, county, or city and county.
Requires the city, county, or city and county which has completed a parking study and imposes a higher standard to make findings supporting the need for the higher parking ratio.
Provides that no reimbursement is required pursuant to California Constitution Article XIII B, Section 6, 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 bill.
The Senate amendments:
Strike the requirement that a local government, upon the request of a developer that receives a density bonus, eliminate minimum parking requirements for specified categories of 100% affordable projects near transit, and instead provide reduced parking ratios for these projects.
Provide that the parking ratios are inclusive of handicapped and guest parking.
Require projects to have unobstructed access to transit, and defines unobstructed access as when a resident is able to access the transit stop without encountering natural or constructed impediments.
Require seniors only or special needs projects to have either paratransit service or be located within one-half mile of fixed bus route service that operates at least eight times per day.
Require seniors only projects to comply with specified existing laws regarding senior housing.
Increase the duration of the parking study to seven years and make changes to the parking study criteria.
Provide that no reimbursement is required pursuant to California Constitution Article XIII B, Section 6, 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 bill.
Make technical, clarifying changes.
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: Background: California is facing a housing affordability crisis on many fronts. According to the United States Department of Housing and Urban Development, California has six of the most expensive rental markets in the country. Nationwide, rents in 2014 grew the fastest in the San Jose and San Francisco metropolitan areas, increasing by 14.4% and 13.5%, respectively. Between 2006 and 2011, rents increased throughout the state by an average of 10%. Lower-income households represent a majority of renter households. Out of 5.1 million renters in California, 60% are in lower-income households, while one in four renter households are in the extremely low-income. One in two renters in California pay in excess of 30% of their income towards housing and one in four renters pay half of their income towards housing.
The funding sources to support construction of affordable housing have drastically diminished over the last five years. The dissolution of redevelopment agencies eliminated up to $1 billion in funding that was available for affordable housing construction. The last statewide housing bond was approved in 2008 and the proceeds of those bonds have been exhausted.
Density Bonus Law: To help address California's affordable housing shortage, the Legislature enacted density bonus law to encourage the development of more affordable units. Under current law, a city or county must grant a density bonus, concessions and incentives, prescribed parking requirements, as well as waivers of development standards upon a developer's request when the developer includes a certain percentage of affordable housing in a housing development project. This bill would amend density bonus law to allow developers that agree to either include a percentage of affordable units or where the development is 100% affordable to lower income families and individuals to request a city or county reduce parking ratios.
Cost of parking spaces: Affordable housing is expensive to build in California due to both the amount of subsidy needed to make the housing affordable and the cost of local regulatory requirements. In some cases, cities and counties apply minimum parking standards to housing developments that may not reflect the demand from tenants for parking. These projects may be close to transit stations or home to seniors or individuals with special needs who drive less frequently and have fewer vehicles. Parking spaces, which sometimes go unused, can significantly increase the cost of construction. The average construction cost per space, excluding land cost, in a parking structure in the United States is $24,000 for aboveground parking and $34,000 for underground parking. Certain types of parking, podium or subterranean, can increase parking costs by 6% or more relative to other types of parking.
Parking study: This bill would allow a city or county to impose a higher parking ratio than those outlined in this bill if the city has conducted a study within the last seven years that includes substantial evidence that supports the need for a higher parking ratio. The city could only increase the parking ratio to the existing standard that is allowed under Density Bonus Law. This provision was included to address concerns raised by local governments who argued they needed a means to increase parking beyond the requirements of this bill.
Sustainable development goals: California has taken steps over the last several years to establish programs and policies to help incentivize regional and local planning efforts. AB 32 (Núñez), Chapter 488, Statutes of 2006: The California Global Solutions Act of 2006 requires California to reduce greenhouse gas (GHG) emissions to 1990 levels by 2020. SB 375 (Steinberg), Chapter 728, Statutes of 2008, supports the state's climate action goals to reduce GHG emissions through coordinated transportation and land use planning with the goal of more sustainable communities. A key component of reducing GHG emissions is moving people out of their cars and onto public transit. Cities and counties are required to adopt sustainable community strategies to show how development will support reduction in GHG emissions.
Purpose of this bill: According to the author, this bill aligns local land use decisions more closely with the goals of AB 32 and SB 375 by reducing the parking required for projects that are close to transit and serve individuals who have fewer cars. Much of California's existing parking requirements are based on low-density and single-purpose land use designations. Parking is costly to build and maintain and can increase the cost of projects in existing development areas.
Senate amendments: Prior to the Senate amendments, this bill would have eliminated the minimum parking requirements for specified categories of 100% affordable projects near transit that qualify for a density bonus, and would not have required a nexus to transit for seniors or special needs projects. To address concerns raised by local governments, the Senate amendments provide reduced parking ratios for these projects, and require seniors and special needs projects to have access to paratransit or be within one-half mile of a fixed bus route that runs at least eight times per day. The parking ratios are inclusive of handicapped and guest parking.
Analysis Prepared by: Rebecca Rabovsky / H. & C.D. / (916) 319-2085 FN: 0001472
AB 744
Page 9
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: AB 744
Author: Chau (D) and Quirk (D), et al.
Amended: 8/18/15 in Senate
SENATE TRANS. & HOUSING COMMITTEE: 7-4, 7/7/15
AYES: Beall, Allen, Leyva, McGuire, Mendoza, Roth, Wieckowski
NOES: Cannella, Bates, Gaines, Galgiani
SENATE GOVERNANCE & FIN. COMMITTEE: 4-2, 7/15/15
AYES: Hertzberg, Beall, Hernandez, Lara
NOES: Nguyen, Moorlach
NO VOTE RECORDED: Pavley
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 52-24, 6/4/15 - See last page for vote
SUBJECT: Planning and zoning: density bonuses
DIGEST: This bill places a cap on the parking ratios that local governments may impose on some affordable housing developments upon the request of a developer.
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 city, county, or city and county.
Requires all cities and counties to adopt an ordinance that specifies how they will implement state density bonus law.
Requires a city, county, or city and county to grant one density bonus and incentives or concessions when an applicant for a housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded, that will provide for at least any one of the following:
Ten percent of the total units of a housing development for lower income households;
Five percent of the total units of a housing development for very low-income households;
A senior citizen housing development or a mobilehome park that limits residency based upon age requirements for housing for older persons; and
Ten percent of the total dwelling units in a common interest development (CID) for persons and families of moderate income, provided all the units in the development are offered to the public for purchase.
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.
Provides that, upon the developer’s request, the local government may not require parking standards greater than the following (the developer may, however, request additional parking incentives or concessions):
Zero to one bedrooms: one onsite parking space;
Two to three bedrooms: two onsite parking spaces; and
Four or more bedrooms: two and one-half parking spaces.
Defines “major transit stop” as a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency-of-service interval of 15 minutes or less during the morning and afternoon peak commute periods.
This bill:
Provides that when a developer agrees to include the maximum number of very low- or low-income units under Density Bonus Law within one-half mile of a major transit stop and with 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 parking ratio, inclusive of handicapped and guest parking, that exceeds 0.5 spaces per bedroom.
Provides that if a development is 100% affordable to lower income families then, upon the request of a developer, a city, county, or city and county, the following parking ratios shall apply for the development:
If the development is located within one-half mile of a “major transit stop” and there is unobstructed access to the major transit stop from the development, the ratio shall not exceed 0.5 spaces per unit. “Unobstructed access” means a resident is able to walk to the major transit stop without encountering natural or constructed impediments.
If the development is a for-rent housing development for individuals who are 62 years of age or older, the ration shall not exceed 0.5 spaces per unit. The development shall have either paratransit service or have unobstructed access, within one half-mile, to fixed bus route service that operates at least eight times per day.
If the development is a special needs housing development, the ratio shall not exceed 0.3 spaces per unit. The development shall have either paratransit service or have unobstructed access, within one half-mile, to fixed bus route service that operates at least eight times per day.
Provides that this bill does not preclude a city, county, or city and county from reducing or eliminating a parking requirement for developments of any type or location.
Allows a city, county, or city and county that conducted an area-wide or jurisdiction-wide parking study within the last seven years by an independent consultant to impose a higher vehicular parking ratio than the one for 1) and 2) above, but does not exceed the standard under Density Bonus Law. The study must be based on substantial evidence and include, but not be limited to, an analysis of parking availability, differing levels of transit access, walkability access to transit services, the potential for shared parking, and the effect of parking requirements on the cost of market-rate and subsidized parking and the lower rates of car ownership for low- and very-low-income individuals, including seniors and special needs individuals. Any new study shall be paid for by the city, county, or city and county. The city, county, or city and county shall find that a higher parking ratio is required based on a parking study completed in conformance with this subparagraph.
Comments
Purpose of the bill. In some cases, cities and counties apply minimum parking standards to affordable housing developments that do not reflect the demand from tenants for parking. These projects may be close to transit stations or home to seniors or individuals with special needs who drive less frequently and have fewer vehicles. Parking spaces, which sometimes go unused, can significantly increase the cost of construction. This bill promotes affordable housing by enabling developers to invest in building more affordable dwelling units instead of spending funds on parking spaces that may go unused. AB 744 also encourages building of urban infill, transit-oriented development, and senior and special-needs housing by providing benefits to those categories of development. It also ensures the mobility of residents of these developments by only granting a benefit to developments in locations that provide residents with access to alternative forms of transportation, such as transit and paratransit. Finally, AB 744 provides flexibility to locals because it allows cities to establish parking standards suitable for their specific circumstances upon demonstration that the greater parking requirements are necessary.
Background of 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, however, allows public subsidies to be reduced or even eliminated by allowing a developer to include more total units in a project than would otherwise be allowed by the zoning in order to spread the cost of the affordable units over the project as a whole. The idea is to cover at least some of the affordability gap with regulatory incentives rather than additional subsidy.
Under existing law, if a developer agrees to construct a housing development and meets a specified percentage of affordable units, the city or county must provide all of the following benefits: a density bonus, incentives or concessions, waiver of any development standards that prevent the developer from utilizing the density bonus or incentives, and reduced parking standards.
While a local government is not required to provide financial assistance or fee waivers, the incentives a local government must grant include any of the following:
A reduction in site development standards;
A modification of zoning code requirements (including a reduction in setbacks, square footage requirements, or parking spaces, 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 if such non-residential uses are compatible with the project; or
Other regulatory incentives or concessions that result in identifiable, financially sufficient, and actual cost reductions.
Cost of parking spaces. TransForm’s GreenTrip program analyzed parking utilization at 68 affordable-housing developments throughout the Bay Area and found substantial overdevelopment of residential parking, at an extremely high cost. Surveying the buildings’ parking lots at night when residents would be expected to be sleeping (with their cars in the on-site spaces), the study found that 31% of the 9,387 spaces were empty. The cost to construct those spaces amounted to approximately $139 million. The average construction cost per space, excluding land cost, in a parking structure in the United States is $24,000 for aboveground parking and $34,000 for underground parking. Certain types of parking — podium or subterranean — can increase parking costs by 6% or more relative to other types of parking.
Parking study/bill exception. This bill provides that a city or county may impose a higher standard of parking than what is otherwise permitted under this section based upon substantial evidence found in an area- or jurisdiction-wide parking study. The study must be conducted by an independent consultant within the last seven years and includes certain requirements.
Sustainability goals and transit-oriented development. A key component of reducing greenhouse gas emissions is to move people out of their cars and into public transit. To encourage use of transit, some cities and counties have adopted policies like eliminating minimum parking requirements for projects that are close to transit where demand for parking spaces is low. They recognize that parking requirements prevent infill redevelopment on small lots where it is difficult and costly to fit both a new building and the required parking. They also see that parking requirements prevent new uses for older buildings that lack the required parking spaces.
Arguably, cities and counties that place minimum parking requirements for developments near transit may not reflect the demand for parking. This is particularly likely in 100% affordable developments within one-half mile of a transit stop, a seniors-only development, or a development that serves special-needs individuals. In fact, a review of developments funded through the Department of Housing and Community Development’s Transit-Oriented Development Implementation Program (TOD program) showed that lower income households drive 25-30% fewer miles when living within one-half mile of transit than those living in non-TOD areas.
Opposition. Opponents state that while some housing projects serving unique populations may need less parking, minimum levels of parking should remain intact as these populations still often have cars. Many seniors do not give up their cars at 62 years of age and many low-income persons require their cars to get to work. Additionally, adequate parking should be available for guests and service providers. Opponents argue that Density Bonus Law already offers two tiers of parking incentives to developers: 1) statutory maximums commencing at one parking space per bedroom, and 2) the ability to seek additional concessions to further reduce parking below the maximums.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
AARP
American Planning Association, California Chapter
Association of Regional Center Agencies
Blaydes & Associates
California Apartment Association
California Association of Housing Authorities
California Association of Local Housing Finance Agencies
California Bicycle Coalition
California Council for Affordable Housing
California Economic Summit
California Housing Consortium
California Housing Partnership Corporation
California League of Conservation Voters
California Rural Legal Assistance Foundation
California State Treasurer, John Chiang
Circulate San Diego
City of Richmond, California
Council of Infill Builders
Councilmember Dominic Farinha, City of Patterson
Councilmember Jake McKenzie, City of Rohnert Park
Councilmember Pam O'Connor, City of Santa Monica
Councilmember Rebecca J. Garcia, City of Watsonville
Councilmember Steve Hansen, City of Sacramento
Councilmember Wendy Thomas, City of Placerville
Councilwoman Michelle Martinez, City of Santa Ana
Domus Development
Donald C. Shoup, Professor of Urban Planning, UCLA Luskin School of Public Affairs
EAH Housing
Eden Housing
Enterprise Community Partners
Greenbelt Alliance
Habitat for Humanity Greater San Francisco
Housing Authority of the City of Alameda
Housing California
Housing Leadership Council of San Mateo County
Kate Meis, Executive Director, Local Government Commission
LifeSTEPS
LINC Housing
Local Government Commission
Lyft, Inc.
Mayor Ed Lee, City of San Francisco
Mayor Libby Schaaf, City of Oakland
Mayor Pro Tem Jon Harrison, City of Redlands
Mayor Tom Butt, City of Richmond
Mercy Housing California
Metropolitan Transportation Commission
Michael Lane, Policy Director, Non-Profit Housing Association of Northern California
National Community Renaissance
Natural Recourses Defense Council
Nelson\Nygaard Consulting Associates
Non-Profit Housing Association of Northern California
Sacramento Housing Alliance
San Diego Housing Federation
San Francisco Bay Area Rapid Transit District
Satellite Affordable Housing Associates
Southern California Association of NonProfit Housing
Supervisor Leticia Perez, Kern County
Tenderloin Neighborhood Development Corporation
Transform
USGBC California
Valley Industry and Commerce Association
Western Center on Law & Poverty
9 individuals
OPPOSITION: (Verified 8/18/15)
City of Brentwood
City of Calimesa
City of Camarillo
City of Chino Hills
City of Colton
City of Concord
City of Dublin
City of El Centro
City of Encinitas
City of Fortuna
City of Glendale
City of Highland
City of Lakewood
City of Lomita
City of Norwalk
City of Palmdale
City of Rocklin
City of Sacramento
City of San Rafael
City of Seaside
City of Walnut Creek
City of Whittier
County of Los Angeles
League of California Cities
Los Angeles County Division of the League of California Cities
Marin County Council of Mayors and Council Members
ASSEMBLY FLOOR: 52-24, 6/4/15
AYES: Bloom, Bonilla, Bonta, Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Roger Hernández, Holden, Jones-Sawyer, Lackey, Levine, Linder, Lopez, Low, McCarty, Medina, Mullin, O'Donnell, Patterson, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Weber, Williams, Wood, Atkins
NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang, Chávez, Dahle, Beth Gaines, Gallagher, Grove, Harper, Irwin, Jones, Kim, Maienschein, Mathis, Mayes, Melendez, Obernolte, Olsen, Wagner, Waldron, Wilk
NO VOTE RECORDED: Alejo, Brown, Nazarian, Perea
Prepared by: Alison Dinmore / T. & H. / (916) 651-4121
8/19/15 20:42:50
**** END ****
AB 744 (Chau) 7/8/15 Page 5 of 5
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Robert M. Hertzberg, Chair
2015 - 2016 Regular
Bill No: |
AB 744 |
Hearing Date: |
7/15/15 |
Author: |
Chau |
Tax Levy: |
No |
Version: |
7/8/15 |
Fiscal: |
Yes |
Consultant: |
Favorini-Csorba |
||
PLANNING AND ZONING: DENSITY BONUSES
Places a cap on the parking ratios that local governments may impose on some affordable housing developments.
Background and Existing Law
Local Planning. Cities and counties must adopt general plans with seven specified elements, including a land use element that contains standards for population density and building profiles. Most local land use decisions must be consistent with these general plans. All cities and counties’ decisions on subdivisions and public works projects must be consistent with their general plans. General law cities and counties’ zoning ordinances and conditional use permits must be consistent with their general plans. However, except for the City of Los Angeles’s zoning ordinance, charter cities’ zoning ordinances and conditional use permits don’t have to be consistent with their general plans.
Local ordinances can set a variety of rules intended to shape developments, including setting maximum densities for housing units or minimum numbers of required parking spaces. These parking space requirements are often based on a “parking ratio” that requires builders to include a certain number of parking spaces per unit, depending on the size of the unit. High parking ratios can increase the cost of housing because constructing off-street parking can be expensive. For example, estimates of the average cost of constructing parking spaces range from $15,000 to $34,000 per space.
Density Bonus Law. Given California’s high land and construction costs, it can be difficult for developers to provide housing units that are affordable to low- and moderate-income households. In order to improve the financial viability of developments that provide housing at a cost below the market rate, the state enacted the Density Bonus Law, which allows a development that meets certain criteria to include more total units in a project than would otherwise be allowed by local zoning. To be eligible for a density bonus, a development must do any of the following:
Reserve at least 10% of the units for lower income households;
Reserve at least 5% of the units for very low income households;
Be either a senior citizen housing development or a mobile home park for older persons, as defined in the Civil Code; or
Reserve at least 10% of the units in a common interest development for people of moderate income, as long as all units are available for purchase by the general public.
These affordable housing units must remain affordable for at least 55 years. Developers that meet the requirements in density bonus law receive several other benefits in addition to higher allowable densities, including “concessions” such as regulatory exemptions that result in cost reductions and waivers of development standards that would physically prevent the development from being constructed. Density bonus law also caps the parking ratio that a local government may require at:
1 parking space per unit with zero or one bedroom;
2 parking spaces per unit with two or three bedrooms;
2.5 parking spaces per unit with four or more bedrooms.
Developments that include higher percentages of low or very low income households get higher allowable housing densities and other benefits, up to maximum percentages of 20% low income or 11% very low income. For example, a housing project with only 5% of very low income housing is entitled to a 20% increase in density, one concession, unlimited waivers from development standards, and reduced parking standards for the entire project. A housing project with 11% very low income units receives a 35% increase in density, two concessions, and the same access to waivers and reduced parking standards.
State Transit Policies. A number of state policies encourage new developments near public transit in order to reduce vehicle miles traveled. The Planning and Zoning Law declares three state planning priorities, including encouraging efficient development patterns. That priority can be furthered by new development that uses land efficiently, is adjacent to developed areas, is planned for new growth, is served by adequate transportation, and minimizes taxpayers’ continuing costs. In addition, California has a goal of reducing greenhouse gas emissions (AB 32, Nuñez & Pavley, 2006). Reducing vehicle emissions involves multiple strategies, including clean technology as well as reducing the amount of vehicle miles traveled. Among the ways to reduce vehicle miles is better coordination of transportation and land use plans and increasing the density in existing areas and new development projects. To those ends, Senate Bill 375 (Steinberg, 2008) linked transportation planning and land use planning by state, regional, and local agencies by providing metropolitan planning organizations and their constituent cities and counties with, among other things, incentives to promote development within one-half mile of a “major transit stop.” SB 375 defines a major transit stop to mean a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods.
Some organizations want to further encourage affordable housing development near transit by reducing the number of parking spaces that are required for certain new developments.
Proposed Law
Assembly Bill 744 adds several provisions to the density bonus law that reduce the parking ratios that cities and counties may impose on new developments that meet certain criteria. Specifically, AB 744:
Prohibits local governments from requiring parking ratios greater than 0.5 spaces per unit for a development that includes, at least 20% low income or 11% very low income housing units and is within one-half mile of a major transit stop, as defined by state law.
Prohibits local governments from requiring parking ratios greater than 0.5 spaces per unit for a development that is entirely composed of low or very low income rental housing units and is within ½ mile of a major transit stop.
Prohibits local governments from requiring parking ratios greater than 0.5 spaces per unit for a development that:
Is a senior citizen development renting to individuals 62 years of age or older;
Is entirely composed of low or very low income rental housing units, and;
Has paratransit or is located within ½ mile of a bus line that runs at least eight times per day.
Prohibits local governments from requiring parking ratios greater than 0.3 spaces per unit for a development that:
Is a special needs housing development, defined as a development for the benefit of persons with mental health needs, physical or developmental disabilities, or those at risk of homelessness;
Is entirely composed of low or very low income rental housing units, and;
Has paratransit or is located within ½ mile of a bus line that runs at least eight times per day.
These ratios include parking set aside for guests and handicapped spaces. The affordable housing developments near transit that qualify under AB 744 must provide unobstructed access to the transit stop that they are near, meaning that a resident must be able to access the stop without encountering natural or constructed impediments.
AB 744 also allows a local government to impose a parking ratio up to the ratios allowed in current law, for developments that receive density bonuses if the local government makes findings that a higher parking ratio is needed, based on findings in any parking study conducted for the area by an independent consultant in the past seven years that demonstrates the need.
AB 744 also allows developers that receive density bonuses to use a concession to request changes to parking restrictions beyond those established by the bill. It also states that it does not prevent a local government from reducing or eliminating parking requirements, for any development in any location and includes findings and declarations identifying the need for its provisions.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill. In some cases, cities and counties apply minimum parking standards to affordable housing developments that do not reflect the demand from tenants for parking. These projects may be close to transit stations or home to seniors or individuals with special needs who drive less frequently and have fewer vehicles. Parking spaces, which sometimes go unused, can significantly increase the cost of construction. This bill promotes affordable housing by enabling developers to invest in building more affordable dwelling units instead of spending funds on parking spaces that may go unused. AB 744 also encourages building of urban infill, transit-oriented development, and senior and special needs housing by providing benefits to those categories of development. It also ensures the mobility of residents of these developments by only granting a benefit to developments in locations that provide residents with access to alternative forms of transportation, such as transit and paratransit. Finally, AB 744 provides flexibility to locals because it allows cities to establish parking standards suitable for their specific circumstances upon demonstration that the greater parking requirements are necessary.
2. Home rule. Local governments must balance competing priorities when determining the amount of parking that is required for new developments. Cities must look at the broader impacts on the community that result from inadequate parking for new development. Residents and the guests or service providers of those residents who are unable to find a place to park within their development will look elsewhere, such as city streets or parking lots for businesses. This spillover can hurt nearby businesses, by taking parking spaces that would otherwise be used by customers and can engender community resistance to these types of projects as nearby residents become concerned about the projects’ impacts. That’s why we elect local leaders to make these decisions.
3. Sure, but will it work? For market-rate housing, it makes sense to let the market determine how much parking a housing development needs. Market-rate housing developers have an incentive to identify the amount of parking that potential residents demand because residents can pay similar prices elsewhere if their demand isn’t met. However, with affordable housing, the market may not function as well. Buyers and renters seeking affordable housing have fewer options. Housing developers may choose to build the minimum amount of parking allowable under law in order to maximize revenue, and low-income residents may live there anyway, regardless of whether the available transit and parking options meet their needs. For example, transit options may not be adequate for residents who travel to their jobs outside peak commute periods. The Committee may wish to consider amending AB 744 to ensure that residents of developments with these lower parking ratios have easy access to necessary transportation, by reducing the distance to transit for a project to be eligible for the lower parking minimums or adjusting the requirements of what constitutes a major transit stop for the purposes of the bill.
4. Mandate. The California Constitution generally requires the state to reimburse local agencies for their costs when the state imposes new programs or additional duties on them. According to the Legislative Counsel’s Office, AB 744 creates a new state-mandated local program because it increases the duties of local officials who must award density bonuses. AB 744 says that if the Commission on State Mandates determines that it creates a state-mandated local program, the state must reimburse local agencies by following the existing statutory process for mandate claims.
5. Charter cities. The California Constitution allows cities that adopt charters to control their own “municipal affairs.” In all other matters, charter cities must follow the general, statewide laws. Because the Constitution doesn’t define “municipal affairs,” the courts determine whether a topic is a municipal affair or whether it’s an issue of statewide concern. AB 744 includes a legislative finding and declaration that the need to address infill development and excessive parking requirements is a matter of statewide concern, so its requirements apply to all cities and counties in California, including charter cities and counties.
6. Incoming! The Senate Transportation and Housing Committee approved AB 744 by a vote of 7-4 on July 7, 2015.
Assembly Actions
Assembly Housing and Community Development Committee: 6-1
Assembly Local Government Committee: 7-2
Assembly Appropriations Committee: 12-4
Assembly Floor: 52-24
Support and Opposition
(7/9/15)
Support: American Planning Association—California Chapter; California Association of Local Housing Finance Agencies; California Council for Affordable Housing; California Apartment Association; California Association of Local Housing Finance Agencies; California Economic Summit; California Housing Consortium; Circulate San Diego; Council of Infill Builders; Domus Development; Donald C. Shoup, Professor of Urban Planning; Housing Authority of the City of Alameda; LifeSTEPS; LINC Housing; Local Government Commission; Natural Resources Defense Council; Non-Profit Housing Association of Northern California; San Francisco Mayor Edwin Lee; Brian Stanke; Richard Hedges; Daniel Gomez; Jason Burstis; William Chapin; Tanya Narath; Jean Long; Gerard Sorensen; Jennifer West;
Opposition: City of Camarillo; City of Encinitas; City of Lakewood; County of Los Angeles; League of California Cities.
-- END --
AB 744 (Chau) Page 8 of 8
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 744 Hearing Date: 7/7/2015
Author: |
Chau |
||
Version: |
6/23/2015 |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Alison Dinmore |
||
SUBJECT: Planning and zoning: density bonuses
DIGEST: This bill requires a city or county, upon the request of a developer that receives a density bonus, to eliminate the minimum parking requirements for the development, if it meets specified criteria.
ANALYSIS:
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 city, county, or city and county.
Requires all cities and counties to adopt an ordinance that specifies how they will implement state density bonus law.
Requires a city, county, or city and county to grant one density bonus and incentives or concessions when an applicant for a housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded, that will provide for at least any one of the following:
Ten percent of the total units of a housing development for lower income households;
Five percent of the total units of a housing development for very low-income households;
A senior citizen housing development or a mobilehome park that limits residency based upon age requirements for housing for older persons;
Ten percent of the total dwelling units in a common interest development (CID) for persons and families of moderate income, provided all the units in the development are offered to the public for purchase.
Requires cities and counties to provide an applicant for a density bonus concessions and incentives based on the number of below market-rate units included in the project as follows:
a) 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;
b) 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
c) 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.
Provides that, upon the developer's request, the local government may not require parking standards greater than the following (the developer may, however, request additional parking incentives or concessions):
Zero to one bedrooms: one onsite parking space;
Two to three bedrooms: two onsite parking spaces; and
Four or more bedrooms: two and one-half parking spaces.
Defines “major transit stop” as a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency-of-service interval of 15 minutes or less during the morning and afternoon peak commute periods.
This bill:
Provides that when a developer agrees to include the maximum number of very low- or low-income units under Density Bonus Law within one-half mile of a major transit stop and with 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 parking ratio that exceeds 0.5 spaces per bedroom.
Provides that if a development is 100% affordable to lower income families then upon the request of a developer, a city, county, or city and county, shall eliminate the minimum parking requirements for the development, if it meets one of the following criteria:
The development is located within one-half mile of a "major transit stop" and there is unobstructed access to the major transit stop from the development. “Unobstructed access” means a resident is able to walk to the major transit stop without encountering natural or constructed impediments.
The development is a for-rent housing development for individuals who are 62 years of age or older.
The development is a special needs housing development.
Provides that this bill does not preclude a city, county, or city and county from reducing or eliminating a parking requirement for developments of any type or location.
Allows a city, county, or city and county that conducted an area-wide or jurisdiction-wide parking study within the last five years by an independent consultant to impose a higher vehicular parking ratio than the one for 1) and 2) above, but does not exceed the standard under Density Bonus Law. The study must be based on substantial evidence and include, but not be limited to, an analysis of parking availability, differing levels of transit access, walkability access to transit services, the potential for shared parking, and the effect of parking requirements on the cost of market-rate and subsidized parking.
Requires the city, county, or city and county which has completed a parking study and imposes a higher standard than 1) and 2) above to make findings supporting the need for a higher parking ratio.
COMMENTS:
Purpose of the bill. In some cases, cities and counties apply minimum parking standards to affordable housing developments that do not reflect the demand from tenants for parking. These projects may be close to transit stations or home to seniors or individuals with special needs who drive less frequently and have fewer vehicles. Parking spaces, which sometimes go unused, can significantly increase the cost of construction. An in-depth analysis of parking utilization at 68 affordable housing developments throughout the Bay Area by Transform’s GreenTrip program found substantial overdevelopment of residential parking, at an extremely high cost.
This bill would allow a developer that is requesting a density bonus and including 100% affordable units in the development to also request that the city or county eliminate the minimum parking requirements for the development. This bill promotes affordable housing by enabling developers to invest in building more affordable dwelling units instead of spending public subsidies on unneeded parking spaces. It also reduces construction costs and encourages building of urban infill, transit-oriented development, and senior and special needs housing while preserving a city’s right to establish parking standards suitable for their specific circumstances.
Background of 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, however, allows public subsidies to be reduced or even eliminated by allowing a developer to include more total units in a project than would otherwise be allowed by the zoning in order to spread the cost of the affordable units over the project as a whole. The idea is to cover at least some of the affordability gap with regulatory incentives rather than additional subsidy.
Under existing law, if a developer agrees to construct a housing development and meets a specified percentage of affordable units, the city or county must provide all of the following benefits: a density bonus, incentives or concessions, waiver of any development standards that prevent the developer from utilizing the density bonus or incentives, and reduced parking standards.
While a local government is not required to provide financial assistance or fee waivers, the incentives a local government must grant include any of the following:
A reduction in site development standards;
A modification of zoning code requirements (including a reduction in setbacks, square footage requirements, or parking spaces, 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 if such non-residential uses are compatible with the project; or
Other regulatory incentives or concessions that result in identifiable, financially sufficient, and actual cost reductions.
Cost of parking spaces. Transform’s GreenTrip program analyzed parking utilization at 68 affordable-housing developments throughout the Bay Area and found substantial overdevelopment of residential parking, at an extremely high cost. Surveying the buildings’ parking lots at night when residents would be expected to be sleeping (with their cars in the on-site spaces), the study found that 31% of the 9,387 spaces were empty. The cost to construct those spaces amounted to approximately $139 million. The average construction cost per space, excluding land cost, in a parking structure in the United States is $24,000 for aboveground parking and $34,000 for underground parking. Certain types of parking — podium or subterranean — can increase parking costs by 6% or more relative to other types of parking.
Developments that are available only to low-income persons generally receive Low Income Housing Tax Credits (LIHTC) to finance the project. To compete for LIHTC, projects need to meet scoring criteria, including proximity to transit. While senior or special-needs projects are not required to meet the standard that they are within one-half mile of major transit, they will need to meet the transit requirements of the LIHTC.
This bill would require cities and counties to waive costly minimum parking requirements upon request from of a developer, in cases where a development serves low-income persons. The development must be within one-half mile of a major transit stop, serve only persons over 62 years old, or serve persons with special needs.
Parking study/bill exception. This bill provides that a city or county may impose a higher standard of parking than what is otherwise permitted under this section based upon substantial evidence found in an area- or jurisdiction-wide parking study. The study must be conducted by an independent consultant within the last five years and includes certain requirements.
Sustainability goals and transit-oriented development. AB 32 (Núñez, Chapter 488, Statutes of 2006) requires California to reduce greenhouse gas (GHG) emissions to 1990 levels by 2020. SB 375 (Steinberg, Chapter 728, Statutes 2008) supports the state’s climate action goals to reduce GHG emissions through coordinated transportation and land-use planning with the goal of more sustainable communities by requiring cities and counties to adopt sustainable communities strategies to show how development will support reduction in GHG emissions. A key component of reducing GHG is to move people out of their cars and into public transit. To encourage use of transit, some cities and counties have adopted policies like eliminating minimum parking requirements for projects that are close to transit where demand for parking spaces is low. They recognize that parking requirements prevent infill redevelopment on small lots where it is difficult and costly to fit both a new building and the required parking. They also see that parking requirements prevent new uses for older buildings that lack the required parking spaces.
Arguably, cities and counties that place minimum parking requirements for developments near transit may not reflect the demand for parking. This is particularly likely in 100% affordable developments within one-half mile of a transit stop, a seniors-only development, or a development that serves special-needs individuals. In fact, a review of developments funded through the Department of Housing and Community Development’s Transit-Oriented Development Implementation Program (TOD program) showed that lower income households drive 25-30% fewer miles when living within one-half mile of transit than those living in non-TOD areas.
Opposition. Opponents state that while some housing projects serving unique populations may need less parking, minimum levels of parking should remain intact as these populations still often have cars. Many seniors do not give up their cars at 62 years of age and many low-income persons require their cars to get to work. Additionally, adequate parking should be available for guests and service providers. Opponents argue that Density Bonus Law already offers two tiers of parking incentives to developers: 1) statutory maximums commencing at one parking space per bedroom, and 2) the ability to seek additional concessions to further reduce parking below the maximums.
Double-referred. This bill is also referred to the Senate Governance and Finance Committee.
Assembly Votes:
Floor: 52-34
Appr: 12-4
LGov: 7-2
H&CD: 6-1
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
POSITIONS: (Communicated to the committee before noon on Wednesday,
July 1, 2015.)
SUPPORT:
American Planning Association (Support if Amended)
Association of Regional Center Agencies
Blaydes & Associates American Planning Association (Support if Amended)
California Association of Local Housing Finance Agencies
California Apartment Association
California Bicycle Coalition
California Council for Affordable Housing
California Economic Summit
California Housing Consortium
California League of Conservation Voters
California State Treasurer, John Chiang
Circulate San Diego
City of Richmond, California
Council of Infill Builders
Domus Development
Donald C. Shoup, Professor of Urban Planning, UCLA Luskin School of Public Affairs
Eden Housing
EAH Housing
Enterprise Community Partners
Habitat for Humanity Greater San Francisco
Housing Authority of the City of Alameda
Housing California
Housing Leadership Council of San Mateo County
John Chiang, California State Treasurer
LifeSTEPS
LINC Housing
Local Government Commission
Lyft, Inc.
Mayor Ed Lee, City of San Francisco
Mercy Housing California
Metropolitan Transportation Commission
Michael Lane, Policy Director, Non-Profit Housing Association of Northern California
National Community Renaissance
Natural Recourses Defense Council
Non-Profit Housing Association of Northern California
Rebecca J. Garcia, Councilmember, City of Watsonville
Sacramento Housing Alliance
San Diego County Bike Coalition
Tenderloin Neighborhood Development Corporation
Transform
9 individuals
OPPOSITION:
City of Camarillo
City of Encinitas
City of Glendale
City of Lakewood
County of Los Angeles
League of California Cities
-- END --
AB 744 (Chau) Page 8 of 8
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 744 Hearing Date: 6/30/2015
Author: |
Chau |
||
Version: |
6/23/2015 |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Alison Dinmore |
||
SUBJECT: Planning and zoning: density bonuses
DIGEST: This bill requires a city or county, upon the request of a developer that receives a density bonus, to eliminate the minimum parking requirements for the development, if it meets specified criteria.
ANALYSIS:
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 city, county, or city and county.
Requires all cities and counties to adopt an ordinance that specifies how they will implement state density bonus law.
Requires a city, county, or city and county to grant one density bonus and incentives or concessions when an applicant for a housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded, that will provide for at least any one of the following:
Ten percent of the total units of a housing development for lower income households;
Five percent of the total units of a housing development for very low-income households;
A senior citizen housing development or a mobilehome park that limits residency based upon age requirements for housing for older persons;
Ten percent of the total dwelling units in a common interest development (CID) for persons and families of moderate income, provided all the units in the development are offered to the public for purchase.
Requires cities and counties to provide an applicant for a density bonus concessions and incentives based on the number of below market-rate units included in the project as follows:
a) 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;
b) 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
c) 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.
Provides that, upon the developer's request, the local government may not require parking standards greater than the following (the developer may, however, request additional parking incentives or concessions):
Zero to one bedrooms: one onsite parking space;
Two to three bedrooms: two onsite parking spaces; and
Four or more bedrooms: two and one-half parking spaces.
Defines “major transit stop” as a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency-of-service interval of 15 minutes or less during the morning and afternoon peak commute periods.
This bill:
Provides that when a developer agrees to include the maximum number of very low- or low-income units under Density Bonus Law within one-half mile of a major transit stop and with 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 parking ratio that exceeds 0.5 spaces per bedroom.
Provides that if a development is 100% affordable to lower income families then upon the request of a developer, a city, county, or city and county, shall eliminate the minimum parking requirements for the development, if it meets one of the following criteria:
The development is located within one-half mile of a "major transit stop" and there is unobstructed access to the major transit stop from the development. “Unobstructed access” means a resident is able to walk to the major transit stop without encountering natural or constructed impediments.
The development is a for-rent housing development for individuals who are 62 years of age or older.
The development is a special needs housing development.
Provides that this bill does not preclude a city, county, or city and county from reducing or eliminating a parking requirement for developments of any type or location.
Allows a city, county, or city and county that conducted an area-wide or jurisdiction-wide parking study within the last five years by an independent consultant to impose a higher vehicular parking ratio than the one for 1) and 2) above, but does not exceed the standard under Density Bonus Law. The study must be based on substantial evidence and include, but not be limited to, an analysis of parking availability, differing levels of transit access, walkability access to transit services, the potential for shared parking, and the effect of parking requirements on the cost of market-rate and subsidized parking.
Requires the city, county, or city and county which has completed a parking study and imposes a higher standard than 1) and 2) above to make findings supporting the need for a higher parking ratio.
COMMENTS:
Purpose of the bill. In some cases, cities and counties apply minimum parking standards to affordable housing developments that do not reflect the demand from tenants for parking. These projects may be close to transit stations or home to seniors or individuals with special needs who drive less frequently and have fewer vehicles. Parking spaces, which sometimes go unused, can significantly increase the cost of construction. An in-depth analysis of parking utilization at 68 affordable housing developments throughout the Bay Area by Transform’s GreenTrip program found substantial overdevelopment of residential parking, at an extremely high cost.
This bill would allow a developer that is requesting a density bonus and including 100% affordable units in the development to also request that the city or county eliminate the minimum parking requirements for the development. This bill promotes affordable housing by enabling developers to invest in building more affordable dwelling units instead of spending public subsidies on unneeded parking spaces. It also reduces construction costs and encourages building of urban infill, transit-oriented development, and senior and special needs housing while preserving a city’s right to establish parking standards suitable for their specific circumstances.
Background of 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, however, allows public subsidies to be reduced or even eliminated by allowing a developer to include more total units in a project than would otherwise be allowed by the zoning in order to spread the cost of the affordable units over the project as a whole. The idea is to cover at least some of the affordability gap with regulatory incentives rather than additional subsidy.
Under existing law, if a developer agrees to construct a housing development and meets a specified percentage of affordable units, the city or county must provide all of the following benefits: a density bonus, incentives or concessions, waiver of any development standards that prevent the developer from utilizing the density bonus or incentives, and reduced parking standards.
While a local government is not required to provide financial assistance or fee waivers, the incentives a local government must grant include any of the following:
A reduction in site development standards;
A modification of zoning code requirements (including a reduction in setbacks, square footage requirements, or parking spaces, 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 if such non-residential uses are compatible with the project; or
Other regulatory incentives or concessions that result in identifiable, financially sufficient, and actual cost reductions.
Cost of parking spaces. Transform’s GreenTrip program analyzed parking utilization at 68 affordable-housing developments throughout the Bay Area and found substantial overdevelopment of residential parking, at an extremely high cost. Surveying the buildings’ parking lots at night when residents would be expected to be sleeping (with their cars in the on-site spaces), the study found that 31% of the 9,387 spaces were empty. The cost to construct those spaces amounted to approximately $139 million. The average construction cost per space, excluding land cost, in a parking structure in the United States is $24,000 for aboveground parking and $34,000 for underground parking. Certain types of parking — podium or subterranean — can increase parking costs by 6% or more relative to other types of parking.
Developments that are available only to low-income persons generally receive Low Income Housing Tax Credits (LIHTC) to finance the project. To compete for LIHTC, projects need to meet scoring criteria, including proximity to transit. While senior or special-needs projects are not required to meet the standard that they are within one-half mile of major transit, they will need to meet the transit requirements of the LIHTC.
This bill would require cities and counties to waive costly minimum parking requirements upon request from of a developer, in cases where a development serves low-income persons. The development must be within one-half mile of a major transit stop, serve only persons over 62 years old, or serve persons with special needs.
Parking study/bill exception. This bill provides that a city or county may impose a higher standard of parking than what is otherwise permitted under this section based upon substantial evidence found in an area- or jurisdiction-wide parking study. The study must be conducted by an independent consultant within the last five years and includes certain requirements.
Sustainability goals and transit-oriented development. AB 32 (Núñez, Chapter 488, Statutes of 2006) requires California to reduce greenhouse gas (GHG) emissions to 1990 levels by 2020. SB 375 (Steinberg, Chapter 728, Statutes 2008) supports the state’s climate action goals to reduce GHG emissions through coordinated transportation and land-use planning with the goal of more sustainable communities by requiring cities and counties to adopt sustainable communities strategies to show how development will support reduction in GHG emissions. A key component of reducing GHG is to move people out of their cars and into public transit. To encourage use of transit, some cities and counties have adopted policies like eliminating minimum parking requirements for projects that are close to transit where demand for parking spaces is low. They recognize that parking requirements prevent infill redevelopment on small lots where it is difficult and costly to fit both a new building and the required parking. They also see that parking requirements prevent new uses for older buildings that lack the required parking spaces.
Arguably, cities and counties that place minimum parking requirements for developments near transit may not reflect the demand for parking. This is particularly likely in 100% affordable developments within one-half mile of a transit stop, a seniors-only development, or a development that serves special-needs individuals. In fact, a review of developments funded through the Department of Housing and Community Development’s Transit-Oriented Development Implementation Program (TOD program) showed that lower income households drive 25-30% fewer miles when living within one-half mile of transit than those living in non-TOD areas.
Opposition. Opponents state that while some housing projects serving unique populations may need less parking, minimum levels of parking should remain intact as these populations still often have cars. Many seniors do not give up their cars at 62 years of age and many low-income persons require their cars to get to work. Additionally, adequate parking should be available for guests and service providers. Opponents argue that Density Bonus Law already offers two tiers of parking incentives to developers: 1) statutory maximums commencing at one parking space per bedroom, and 2) the ability to seek additional concessions to further reduce parking below the maximums.
Double-referred. This bill is also referred to the Senate Governance and Finance Committee.
Assembly Votes:
Floor: 52-34
Appr: 12-4
LGov: 7-2
H&CD: 6-1
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
POSITIONS: (Communicated to the committee before noon on Wednesday,
June 24, 2015.)
SUPPORT:
American Planning Association (Support if Amended)
Association of Regional Center Agencies
Blaydes & Associates American Planning Association (Support if Amended)
California Association of Local Housing Finance Agencies
California Apartment Association
California Bicycle Coalition
California Council for Affordable Housing
California Economic Summit
California Housing Consortium
California League of Conservation Voters
California State Treasurer, John Chiang
Circulate San Diego
City of Richmond, California
Council of Infill Builders
Domus Development
Donald C. Shoup, Professor of Urban Planning, UCLA Luskin School of Public Affairs
Eden Housing
EAH Housing
Enterprise Community Partners
Habitat for Humanity Greater San Francisco
Housing Authority of the City of Alameda
Housing California
Housing Leadership Council of San Mateo County
John Chiang, California State Treasurer
LifeSTEPS
LINC Housing
Local Government Commission
Lyft, Inc.
Mayor Ed Lee, City of San Francisco
Mercy Housing California
Metropolitan Transportation Commission
Michael Lane, Policy Director, Non-Profit Housing Association of Northern California
National Community Renaissance
Natural Recourses Defense Council
Non-Profit Housing Association of Northern California
Rebecca J. Garcia, Councilmember, City of Watsonville
Sacramento Housing Alliance
San Diego County Bike Coalition
Tenderloin Neighborhood Development Corporation
Transform
9 individuals
OPPOSITION:
City of Camarillo
City of Encinitas
City of Glendale
City of Lakewood
County of Los Angeles
League of California Cities
-- END --
AB 744
Page 3
ASSEMBLY THIRD READING
AB 744
(Chau)
As Amended June 2, 2015
Majority vote
Committee |
Votes |
Ayes |
Noes |
Housing |
6-1 |
Chau, Steinorth, Burke, Chiu, Lopez, Mullin |
Beth Gaines |
Local Government |
7-2 |
Gonzalez, Alejo, Chiu, Cooley, Gordon, Holden, Linder |
Maienschein, Waldron |
Appropriations |
12-4 |
Gomez, Bonta, Calderon, Daly, Eggman, Eduardo Garcia, Gordon, Holden, Quirk, Rendon, Weber, Wood |
Bigelow, Chang, Gallagher, Wagner |
SUMMARY: Requires a city, county, or city and county, upon the request of a developer that receives a density bonus, to reduce or eliminate the minimum parking requirements for the development, if it meets specified criteria. Specifically, this bill:
Includes legislative intent language.
Defines a "major transit stop" to have the same meaning as Public Resources Code Section 21155(b).
Provides that when a developer agrees to include the maximum number of very low- and low- income units under Density Bonus Law within one-half mile of a major transit stop and with 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 parking ratio that exceeds 0.5 spaces per bedroom.
Provides that if a development is 100% affordable to lower income families then upon the request of a developer, a city, county, or city and county, shall eliminate the minimum parking requirements for the development, if it meets one of the following criteria:
The development is located within one-half mile of a "major transit stop" and there is unobstructed access to the major transit stop from the development;
The development is a for-rent housing development for individuals who are 62 years of age or older; or
The development is a special needs housing development.
Provides that this bill does not preclude a city, county, or city and county from reducing or eliminating a parking requirement for developments of any type or location.
Allows a city, county, or city and county to impose a higher parking standard than the one for 2), and 3), above, that does not exceed the standard under Density Bonus Law, based upon substantial evidence in an area-wide or jurisdiction-wide parking study conducted by an independent consultant within the last five years 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, and the effect of parking requirements on the cost of market-rate and subsidized parking.
Requires the city, county, or city and county who has completed a parking study and imposes a higher standard than 2) and 3) above, to make findings supporting the need for a higher parking ratio.
FISCAL EFFECT: According to the Assembly Appropriations Committee, the fiscal impact is minor, non-reimbursable costs to cities and counties.
COMMENTS:
Background:
California is facing a housing affordability crisis on many fronts. According to the United States Department of Housing and Urban Development, California has six of the most expensive rental markets in the country. Nationwide, rents in 2014 grew the fastest in the San Jose and San Francisco metropolitan areas, increasing by 14.4% and 13.5%, respectively. Between 2006 and 2011, rents increased throughout the state by an average of 10%. Lower-income households represent a majority of renter households. Out of 5.1 million renters in California, 60% are in lower-income households, while one in four renter households are in the extremely low-income. One in two renters in California pay in excess of 30% of their income towards housing and one in four renters pay half of their income towards housing.
The funding sources to support construction of affordable housing have drastically diminished over the last five years. The dissolution of redevelopment agencies eliminated up to $1 billion in funding that was available for affordable housing construction. The last statewide housing bond was approved in 2008 and the proceeds of those bonds have been exhausted.
Density Bonus Law:
To help address California's affordable housing shortage, the Legislature enacted density bonus law to encourage the development of more affordable units. Under current law, a city or county must grant a density bonus, concessions and incentives, prescribed parking requirements, as well as waivers of development standards upon a developer's request when the developer includes a certain percentage of affordable housing in a housing development project. This bill would amend density bonus law to allow developers that agree to either include a percentage of affordable units or where the development is 100% affordable to lower income families and individuals to request a city or county reduce or eliminate parking ratios.
Cost of parking spaces:
Affordable housing is expensive to build in California due to both the amount of subsidy needed to make the housing affordable and the cost of local regulatory requirements. In some cases, cities and counties apply minimum parking standards to housing developments that may not reflect the demand from tenants for parking. These projects may be close to transit stations or home to seniors or individuals with special needs who drive less frequently and have fewer vehicles. Parking spaces, which sometimes go unused, can significantly increase the cost of construction. The average construction cost per space, excluding land cost, in a parking structure in the United States is $24,000 for aboveground parking and $34,000 for underground parking. Certain types of parking, podium or subterranean, can increase parking costs by 6% or more relative to other types of parking.
This bill would require cities or counties to waive the minimum parking ratio for developments that are solely for lower-income tenants. These projects would have to be either close to major transit, for seniors who are 62 years or older, or for special needs populations. Developments that are solely affordable to low-income tenants typically require Low-Income Housing Tax Credits (LIHTC) to finance the project. To compete for LIHTC, projects needs to meet scoring criteria including proximity to transit. Although projects that are senior or special needs are not required to meet the standard that they are within one-half mile of major transit they will need to meet the transit requirements of the LIHTC.
Parking study:
This bill would allow a city or county to impose a higher parking ratio than then those outlined in this bill if the city has conducted a study within the last five years that includes substantial evidence that supports the need for a higher parking ratio. The city could only increase the parking ratio to the existing standard that is allowed under Density Bonus Law. This provision was included to address concerns raised by cities who argued they needed a means to increase parking beyond the requirements of this bill.
Sustainable development goals:
California has taken steps over the last several years to establish programs and policies to help incentivize regional and local planning efforts. AB 32 (Núñez), Chapter 488, Statutes of 2006: The California Global Solutions Act of 2006 requires California to reduce greenhouse gas (GHG) emissions to 1990 levels by 2020. SB 375 (Steinberg), Chapter 728, Statutes of 2008, supports the state's climate action goals to reduce GHG emissions through coordinated transportation and land use planning with the goal of more sustainable communities. A key component of reducing GHG emissions is moving people out of their cars and onto public transit. Cities and counties are required to adopt sustainable community strategies to show how development will support reduction in GHG emissions.
Purpose of this bill:
According to the author, this bill would reduce a local barrier to building affordable housing by requiring a city or county and an affordable housing developer to negotiate the appropriate parking ratio rather than relying upon a standard that does not make sense for the development or the tenants living in the development. Much of California's existing parking requirements are based on low-density and single-purpose land use designations. Parking is costly to build and maintain and can increase the cost of projects in existing development areas.
Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085 FN: 0000876
AB 744
Page 3
ASSEMBLY THIRD READING
AB 744
(Chau)
As Amended March 26, 2015
Majority vote
Committee |
Votes |
Ayes |
Noes |
Housing |
6-1 |
Chau, Steinorth, Burke, Chiu, Lopez, Mullin |
Beth Gaines |
Local Government |
7-2 |
Gonzalez, Alejo, Chiu, Cooley, Gordon, Holden, Linder |
Maienschein, Waldron |
Appropriations |
12-4 |
Gomez, Bonta, Calderon, Daly, Eggman, Eduardo Garcia, Gordon, Holden, Quirk, Rendon, Weber, Wood |
Bigelow, Chang, Gallagher, Wagner |
SUMMARY: Requires a city, county, or city and county, upon the request of a developer that receives a density bonus, to eliminate the minimum parking requirements for the development, if it meets specified criteria. Specifically, this bill:
Requires a city, county, or city and county, upon the request of a developer that receives a density bonus, to eliminate the minimum parking requirements for the development, if it meets one of the following criteria:
The development is located within one-half mile of a "major transit stop;"
The development is a senior citizen housing development; or
The development is a special needs housing development.
Allows a city, county, or city and county to impose maximum onsite parking requirements for a development.
Defines a "major transit stop" to mean a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods, includes a major transit stop that is included in the applicable regional transportation plan.
Specifies that a project is considered to be within one-half mile of a major transit stop or high-quality transit corridor if all parcels within the project have no more than 25% of their area farther than one-half mile from the stop or corridor and if not more than 10% of the residential units or 100 units, whichever is less, in the project are farther than one-half mile from the stop or corridor.
Clarifies that, when calculating density bonus amounts, all calculations that result in fractional numbers must be rounded up including but not limited to maximum allowable density, total affordable units, and the total amount of the density bonus.
FISCAL EFFECT: According to the Assembly Appropriations Committee, the fiscal impact is minor, non-reimbursable costs to cities and counties.
COMMENTS:
Background: According to the Urban Land Institute's Transportation for a New Era: Growing more Sustainable Communities (2009) study "the more that housing, jobs, and services spread out, the harder it becomes to access them without an automobile. Only with more compact development and more transportation options – rapid transit and walkable designs – is it feasible to achieve national goals for economic productivity and environmental sustainability. What’s more, Americans increasingly demand more compact product types. Consumer preference surveys and studies of housing values show that there is an unmet demand for walkable neighborhoods. Transit use is up and voters have repeatedly approved referendums raising taxes or approving bond issues for expanded rapid transit service. But the supply of affordable compact, mixed-use, transit-oriented development products has not kept pace. Studies show that compact development results in fewer miles traveled, reducing fuel consumption and emissions. In areas where housing, employment, shopping, or services are close by – even in low-density places without high-quality transit service – people walk more. Compact development can reduce the cost of public infrastructure and encourage healthy habits such as incorporating walking and biking into daily routines. With transportation options, families save. Each automobile a household maintains costs it, annually, between $5,500 for a small sedan driven 10,000 miles a year to nearly $12,000 for an SUV driven 20,000 miles a year. The compact development model can be adapted to urban, suburban, and rural contexts. New communities can develop in more compact ways, and many existing suburban areas are ready to be revamped into a more concentrated, walkable, and mixed-use "village" form. However, in many communities, development around transit and other likely locations is stymied by zoning restrictions and parking requirements."
Sustainable development goals: California has taken steps over the last several years to establish programs and policies to help incentivize regional and local planning efforts. AB 32 (Núñez), Chapter 488, Statutes of 2006: The California Global Solutions Act of 2006 requires California to reduce greenhouse gas (GHG) emissions to 1990 levels by 2020. SB 375 (Steinberg), Chapter 728, Statutes of 2008, supports the state's climate action goals to reduce GHG emissions through coordinated transportation and land use planning with the goal of more sustainable communities. A key component of reducing GHG emissions is moving people out of their cars and onto public transit. Cities and counties are required to adopt sustainable community strategies (SCS) to show how development will support reduction in GHG emissions.
In some cases, cities and counties apply minimum parking standards to housing developments that may not reflect the demand from tenants for parking. These projects may be close to transit stations or home to seniors or individuals with special needs who drive less frequently and have fewer vehicles. Parking spaces, which sometimes go unused, can significantly increase the cost of construction. Certain types of parking, podium or subterranean, can increase parking costs by 6% or more relative to other types of parking. In cases where projects are 100% affordable or include affordable units, parking spaces needlessly drive up the cost of the project.
To help address California's affordable housing shortage, the Legislature enacted density bonus law to encourage the development of more affordable units. Under current law, a city or county must grant a density bonus, concessions and incentives, prescribed parking requirements, as well as waivers of development standards upon a developer's request when the developer includes a certain percentage of affordable housing in a housing development project.
Purpose of this bill: According to the author, this bill aligns local land use decisions more closely with the goals of AB 32 and SB 375 by reducing the parking required for housing developments that include affordable units and are close to transit or are home to seniors or special needs individuals. Much of California's existing parking requirements are based on low-density and single-purpose land use designations. Parking is costly to build and maintain and can increase the cost of projects in existing development areas. The average construction cost per space, excluding land cost, in a parking structure in the United States is about $24,000 for aboveground parking and $34,000 for underground parking.
Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085 FN: 0000655
AB 744
Page 2
Date of Hearing: May 27, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB 744
(Chau) – As Amended March 26, 2015
Policy Committee: |
Housing and Community Development |
Vote: |
6 - 1 |
|
Local Government |
|
7 - 2 |
|
|
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: Yes
SUMMARY:
This bill requires a city or county, upon the request of a developer that receives a density bonus, to eliminate the minimum onsite parking requirements on the development that is within one-half mile of a major transit stop, is a senior housing development, or is a special needs housing development.
FISCAL EFFECT:
Minor, non-reimbursable costs to cities and counties.
COMMENTS:
Purpose. According to the author, "In some cases, cities and counties apply minimum parking standards to housing development that do not reflect the demand from tenants for parking. These projects may be close to transit stations or home to seniors or individuals with special needs who drive less frequently and have fewer vehicles. Parking spaces, which sometimes go unused, can significantly increase the cost of construction. AB 744 aligns local land use decisions more closely with the goals of AB 32 (The California Global Solutions Act of 2006) and SB 375 (Steinberg, Chapter 728, Statutes of 2008) by reducing the parking required for projects that are close to transit or serve individuals who have fewer cars. The bill also provides another incentive to developers to include affordable units in their development in turn for a reduction in parking requirements, where those reductions make sense."
Background. The density bonus law is designed to encourage the development of more affordable units. Under current law, a city or county must grant a density bonus, concessions and incentives, prescribed parking requirements, as well as waivers of development standards upon a developer's request when the developer includes a certain percentage of affordable housing in a housing development project.
The density bonus law was originally enacted in 1979, but has been changed numerous times. In 2004, the Legislature made significant changes to the law, including reducing the number of housing units required at below market rate in order to qualify for a density bonus. Currently, developers are entitled to benefits under the density bonus law when they include one or more affordable housing unit(s) as part of an otherwise market-rate project. A housing project with 5% of very low-income housing is entitled to a 20% density bonus, one concession, unlimited waivers from development standards, and reduced parking standards for the entire project.
Arguments in Support. Supporters argue that outdated, one-size-fits all minimum parking requirements increase development costs, and therefore, housing and rental prices, by distorting the market for parking, will instead allow the developer to build to actual parking demand and thereby allow renters and homebuyers to save money on their units.
Arguments in Opposition. The League of California Cities writes that the density bonus law already offers two tiers of parking incentives to developers: a) Statutory maximums commencing at one parking space per bedroom; and b) The ability to seek additional concessions to further reduce parking below the maximums, and that the League is unclear why the existing provisions are inadequate.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
AB 744
Page 4
Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Brian Maienschein, Chair
AB 744
(Chau) – As Amended March 26, 2015
SUBJECT: Planning and zoning: density bonuses.
SUMMARY: Requires a city or county, upon the request of a developer that receives a density bonus, to eliminate the minimum parking requirements for the development, if it meets specified criteria. Specifically, this bill:
Prohibits, upon the request of the developer that receives a density bonus, a city, county, or city and county from imposing a minimum onsite parking requirement on a development that meets any of the following criteria:
The development is located within one half mile of a major transit stop;
The development is a senior citizen housing development; or,
The development is a special needs development.
Allows a city, county, or city and county to impose a maximum onsite parking requirement for a development.
Defines a "major transit stop" to mean a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods, includes a major transit stop that is included in the applicable regional transportation plan.
Specifies that a project is considered to be within one-half mile of a major transit stop or high-quality transit corridor if all parcels within the project have no more than 25% of their area farther than one-half mile from the stop or corridor and if not more than 10% of the residential units or 100 units, whichever is less, in the project are farther than one-half mile from the stop or corridor.
Clarifies that, when calculating density bonus amounts, all calculations that result in fractional numbers must be rounded up, including, but not limited to, maximum allowable density, total affordable units, and the total amount of the density bonus.
Provides that if the Commission on State Mandates determines that this act contains costs mandated by the state, then reimbursement shall be made to local agencies and school districts for those costs.
EXISTING LAW:
Defines "major transit stop" as a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods.
Requires all cities and counties to adopt an ordinance that specifies how they will implement state density bonus law.
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:
Ten percent of the total units for lower-income households;
Five percent of the total units of a housing for very low-income households;
A senior citizen housing development or mobilehome park; and,
Ten percent of the units in a common-interest development (CID) for moderate-income households.
Requires cities and counties to provide an applicant for a 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.
Provides that, upon the developer's request, the local government may not require parking standards greater than the following (the developer may, however, request additional parking incentives or concessions):
Zero to one bedrooms: one onsite parking space;
Two to three bedrooms: two onsite parking spaces; and,
Four or more bedrooms: two and one-half parking spaces.
FISCAL EFFECT: This bill is keyed fiscal and contains a state-mandated local program.
COMMENTS:
Bill Summary. This bill makes a number of changes to density bonus law and the elimination of parking minimum requirements for certain housing projects. This bill requires a city or county, upon the request of a developer that receives a density bonus, to eliminate the minimum parking requirements for the development, if the development meets one of the following criteria: a) The development is located within one half mile of a major transit stop; b) The development is a senior citizen housing development; or, c) The development is a special needs development.
The bill is author-sponsored.
Author's Statement. According to the author, "AB 32: The California Global Solutions Act of 2006 requires California to reduce greenhouse gas emissions (GHG) to 1990 levels by 2020. SB 375 (Steinberg, 2008) supports the State's climate action goals to reduce GHG emissions through coordinated transportation and land use planning with the goal of more sustainable communities. A key component of reducing GHG emissions is moving people out of their cars and onto public transit. Cities and counties are required to adopt sustainable communities strategies to show how development will support reduction in GHG emissions. Some cities and counties have adopted policies like eliminating minimum parking requirements for projects that are close to transit and where demand for parking spaces is low.
"In some cases, cities and counties apply minimum parking standards to housing development that do not reflect the demand from tenants for parking. These projects may be close to transit stations or home to seniors or individuals with special needs who drive less frequently and have fewer vehicles. Parking spaces, which sometimes go unused, can significantly increase the cost of construction. AB 744 aligns local land use decisions more closely with the goals of AB 32 and SB 375 by reducing the parking required for projects that are close to transit or serve individuals who have fewer cars. The bill also provides another incentive to developers to include affordable units in their development in turn for a reduction in parking requirements, where those reductions make sense."
Density Bonus. To help address California's affordable housing shortage, the Legislature enacted density bonus law to encourage the development of more affordable units. Under current law, a city or county must grant a density bonus, concessions and incentives, prescribed parking requirements, as well as waivers of development standards upon a developer's request when the developer includes a certain percentage of affordable housing in a housing development project.
Density bonus law was originally enacted in 1979, but has been changed numerous times since. SB 1818 (Hollingsworth), Chapter 928, Statutes of 2004, made significant changes to the law, including reducing the number of housing units required to be provided at below market rate in order to qualify for a density bonus. Developers are entitled to benefits under the density bonus law when they include as few as one affordable housing unit as part of an otherwise market-rate project. A housing project with only 5% of very low-income housing is entitled to a 20% density bonus, one concession, unlimited waivers from development standards, and reduced parking standards for the entire project.
Policy Considerations. The American Planning Association, California Chapter (APA) has a support on AB 744. According to APA, "Generally, the narrower focus from the previous parking minimum legislation is appreciated and APA shares the author's goal to encourage infill housing by not overburdening development near active transit or other parking options. However, APA does have questions and concerns about the precise qualifying terms and the supportive service component included in the bill." APA's concerns include the following issues: a) Whether the bill should include a parking study completed by the developer to support the need for reduced parking; b) Whether the definition of a transit stop is too broad; c) Whether the definition of special needs housing is too broad; and, d) Whether it is clear that to qualify for the reduced parking the project must include affordable units.
Arguments in Support. Supporters argue that outdated, one-size-fits all minimum parking requirements increase development costs, and therefore, housing and rental prices, by distorting the market for parking, will instead allow the developer to build to actual parking demand and thereby allow renters and homebuyers to save money on their units.
Arguments in Opposition. The League of California Cities writes that density bonus law already offers two tiers of parking incentives to developers: a) Statutory maximums commencing at one parking space per bedroom; and, b) The ability to seek additional concessions to further reduce parking below the maximums, and that the League is unclear why the existing provisions are inadequate.
Double-Referral. This bill was heard by the Housing and Community Development Committee on April 15, 2015, where it passed with a 6-1 vote.
REGISTERED SUPPORT / OPPOSITION:
Support
American Planning Association, California Chapter (if amended)
California Apartment Association
California Housing Consortium
Circulate San Diego
Council of Infill Builders
Domus Development
Local Government Commission
Opposition
League of California Cities (unless amended)
Analysis Prepared by: Debbie Michel / L. GOV. / (916) 319-3958
AB 744
Page 4
Date of Hearing: April 15, 2015
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Ed Chau, Chair
AB 744
(Chau) – As Amended March 26, 2015
SUBJECT: Planning and zoning: density bonuses
SUMMARY: Requires a city, county, or city and county, upon the request of a developer that receives a density bonus, to eliminate the minimum parking requirements for the development, if it meets specified criteria. Specifically, this bill:
Requires a city, county, or city and county, upon the request of a developer that receives a density bonus, to eliminate the minimum parking requirements for the development, if it meets one of the following criteria:
The development is located within one-half mile of a "major transit stop";
The development is a senior citizen housing development; or
The development is a special needs housing development.
Allows a city, county, or city and county to impose maximum onsite parking requirements for a development.
Defines a "major transit stop" to mean a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods, includes a major transit stop that is included in the applicable regional transportation plan.
Specifies that a project is considered to be within one-half mile of a major transit stop or high-quality transit corridor if all parcels within the project have no more than 25 percent of their area farther than one-half mile from the stop or corridor and if not more than 10 percent of the residential units or 100 units, whichever is less, in the project are farther than one-half mile from the stop or corridor.
Clarifies that, when calculating density bonus amounts, all calculations that result in fractional numbers must be rounded up including but not limited to maximum allowable density, total affordable units, and the total amount of the density bonus.
EXISTING LAW:
Defines "major transit stop" as a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods (Public Resources Code Section 21064.3).
Requires all cities and counties to adopt an ordinance that specifies how they will implement state density bonus law (Government Code Section 65915).
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:
Ten percent of the total units for lower income households;
Five percent of the total units of a housing for very low income households;
A senior citizen housing development or mobilehome park; and,
Ten percent of the units in a common-interest development (CID) for moderate-income households. (Government Code Section 65915)
Requires cities and counties to provide an applicant for a 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.
(Government Code Section 65915)
Provides that, upon the developer's request, the local government may not require parking standards greater than the following (the developer may, however request additional parking incentives or concessions):
Zero to one bedrooms: one onsite parking space;
Two to three bedrooms: two onsite parking spaces; and
Four or more bedrooms: two and one-half parking spaces.
(Government Code Section 65915)
FISCAL EFFECT: Unknown.
COMMENTS:
Background:
According to the Urban Land Institute's Transportation for a New Era: Growing more Sustainable Communities (2009) study "the more that housing, jobs, and services spread out, the harder it becomes to access them without an automobile. Only with more compact development and more transportation options – rapid transit and walkable designs – is it feasible to achieve national goals for economic productivity and environmental sustainability. What’s more, Americans increasingly demand more compact product types. Consumer preference surveys and studies of housing values show that there is an unmet demand for walkable neighborhoods. Transit use is up and voters have repeatedly approved referendums raising taxes or approving bond issues for expanded rapid transit service. But the supply of affordable compact, mixed-use, transit-oriented development products has not kept pace. Studies show that compact development results in fewer miles traveled, reducing fuel consumption and emissions. In areas where housing, employment, shopping, or services are close by – even in low-density places without high-quality transit service – people walk more. Compact development can reduce the cost of public infrastructure and encourage healthy habits such as incorporating walking and biking into daily routines. With transportation options, families save. Each automobile a household maintains costs it, annually, between $5,500 for a small sedan driven 10,000 miles a year to nearly $12,000 for an SUV driven 20,000 miles a year. The compact development model can be adapted to urban, suburban, and rural contexts. New communities can develop in more compact ways, and many existing suburban areas are ready to be revamped into a more concentrated, walkable, and mixed-use “village” form. However, in many communities, development around transit and other likely locations is stymied by zoning restrictions and parking requirements."
Sustainable development goals:
California has taken steps over the last several years to establish programs and policies to help incentivize regional and local planning efforts. AB 32: The California Global Solutions Act of 2006 requires California to reduce greenhouse gas (GHG) emissions to 1990 levels by 2020. SB 375 (Steinberg) (2008) supports the state's climate action goals to reduce GHG emissions through coordinated transportation and land use planning with the goal of more sustainable communities. A key component of reducing GHG emissions is moving people out of their cars and onto public transit. Cities and counties are required to adopt sustainable community strategies (SCS) to show how development will support reduction in GHG emissions.
In some cases, cities and counties apply minimum parking standards to housing developments that may not reflect the demand from tenants for parking. These projects may be close to transit stations or home to seniors or individuals with special needs who drive less frequently and have fewer vehicles. Parking spaces, which sometimes go unused, can significantly increase the cost of construction. Certain types of parking, podium or subterranean, can increase parking costs by 6% or more relative to other types of parking. In cases where projects are 100% affordable or include affordable units, parking spaces needlessly drive up the cost of the project.
To help address California's affordable housing shortage, the Legislature enacted density bonus law to encourage the development of more affordable units. Under current law, a city or county must grant a density bonus, concessions and incentives, prescribed parking requirements, as well as waivers of development standards upon a developer's request when the developer includes a certain percentage of affordable housing in a housing development project.
Purpose of this bill:
According to the author, AB 744 aligns local land use decisions more closely with the goals of AB 32 and SB 375 by reducing the parking required for housing developments that include affordable units and are close to transit or are home to seniors or special needs individuals. Much of California's existing parking requirements are based on low-density and single-purpose land use designations. Parking is costly to build and maintain and can increase the cost of projects in existing development areas.
Support if amended:
The American Planning Association: California Chapter has a support on AB 744. According to APA, "generally, the narrower focus from the previous parking minimum legislation is appreciated and APA shares the author's goal to encourage infill housing by not overburdening development near active transit or other parking options. However, APA does have questions and concerns about the precise qualifying terms and the supportive service component included in the bill." APA's concerns include the following issues 1) whether the bill should include a parking study completed by the developer to support the need for reduced parking, 2) whether the definition of a transit stop is too broad, 3) whether the definition of special needs housing is too broad, and 4) whether it is clear that to qualify for the reduced parking the project must include affordable units.
Staff comments:
The author has indicated the intent of the bill is that only developers that include affordable units should be able to request that a local government eliminate the minimum parking requirement. The committee may wish to consider asking the author to clarify this provision.
Double referred: This bill was also referred to the Local Government Committee where it will be heard should it pass out of this committee.
REGISTERED SUPPORT / OPPOSITION:
Support
American Planning Association (Support if Amended)
California Housing Consortium
Circulate San Diego
Domus Development
Local Government Commission
Opposition
None on file.
Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085
Discussed in Hearing
Assembly Floor
Senate Floor
Senate Standing Committee on Transportation and Housing
Senate Standing Committee on Transportation and Housing
Assembly Floor
Assembly Floor
Assembly Standing Committee on Appropriations
Bill Author
Bill Co-Author(s):