AB 1218: Development projects: demolition of residential dwelling units.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2023-10-11
Current Status:
Passed
(2023-10-11: Chaptered by Secretary of State - Chapter 754, Statutes of 2023.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill stops affected cities and counties from approving projects that would demolish protected rental or affordable homes, or that are on sites where protected units were torn down in the past five years, unless the project meets replacement and tenant protections. It requires developers to replace all existing protected units (and those demolished on or after Jan 1, 2020), make replacement housing available before or at the same time for non‑housing projects, provide lower‑income tenants relocation payments and a right to return to a comparable affordable unit, and allow occupants to remain until six months before construction.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law, the Housing Crisis Act of 2019, among other things, prohibits an affected city or an affected county, as defined, from approving a housing development project that will require the demolition of one or more residential dwelling units, unless the project creates at least as many residential dwelling units as will be demolished.
The act also prohibits an affected city or affected county from approving any housing development project that will require the demolition of occupied or vacant protected units, unless specified conditions are met. In this regard, the act requires a project that will require the demolition of occupied or vacant protected units to, among other things, (1) replace all existing or demolished protected units, (2) include a minimum amount of residential units, (3) allow existing occupants to occupy their units until 6 months before the start of construction activities, and (4) provide relocation benefits to the existing occupants of any protected units that are lower income households.
This bill would expand the demolition of residential dwelling units prohibitions to prohibit an affected city or affected county from approving any development project that will require the demolition of occupied or vacant protected units, or that is located on a site where protected units were demolished in the previous 5 years, unless the conditions described above are met, except as provided. In this regard, the bill would revise the above-described requirement that protected units be replaced and instead require the replacement of all existing protected units and protected units demolished on or after January 1, 2020, and would additionally require a proponent to ensure that the required replacement housing is developed prior to or concurrently with the development project, if the project is not a housing development project.
If the development project will require the demolition of occupied or vacant protected units, existing law requires a developer to agree to provide a right of first refusal for a comparable unit available in the new housing development to the existing occupants of any protected units that are lower income households.
This bill, if the development project will require the demolition of occupied or vacant protected units and the new development is not a housing development, would require a developer to provide a right of first refusal for a comparable unit in the required replacement units to the existing occupants of any protected units that are lower income households.
Existing law requires the Department of Housing and Community Development to notify the city, county, or city and county and authorizes the department to notify the Attorney General that a city, county, or city and county is in violation of state law if the department finds that the housing element, amendment to the element, or other specified actions or failures to act do not substantially comply with specified provisions of existing law, including the above-described prohibition on an affected city or an affected county from approving a housing development project that will require the demolition of one or more residential dwelling units unless the project creates at least as many residential dwelling units as will be demolished.
This bill would remove the above-described requirement and authorization for the department to notify the city, county, or city and county and the Attorney General of a housing element, amendment, or other action found to be in violation of specified law.
The bill would make various other conforming and nonsubstantive changes.
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.
Existing law, the Housing Crisis Act of 2019, among other things, prohibits an affected city or an affected county, as defined, from approving a housing development project that will require the demolition of one or more residential dwelling units, unless the project creates at least as many residential dwelling units as will be demolished.
The act also prohibits an affected city or affected county from approving any housing development project that will require the demolition of occupied or vacant protected units, unless specified conditions are met. In this regard, the act requires a project that will require the demolition of occupied or vacant protected units to, among other things, (1) replace all existing or demolished protected units, (2) include a minimum amount of residential units, (3) allow existing occupants to occupy their units until 6 months before the start of construction activities, and (4) provide relocation benefits to the existing occupants of any protected units that are lower income households.
This bill would expand the demolition of residential dwelling units prohibitions to prohibit an affected city or affected county from approving any development project that will require the demolition of occupied or vacant protected units, or that is located on a site where protected units were demolished in the previous 5 years, unless the conditions described above are met, except as provided. In this regard, the bill would revise the above-described requirement that protected units be replaced and instead require the replacement of all existing protected units and protected units demolished on or after January 1, 2020, and would additionally require a proponent to ensure that the required replacement housing is developed prior to or concurrently with the development project, if the project is not a housing development project.
If the development project will require the demolition of occupied or vacant protected units, existing law requires a developer to agree to provide a right of first refusal for a comparable unit available in the new housing development to the existing occupants of any protected units that are lower income households.
This bill, if the development project will require the demolition of occupied or vacant protected units and the new development is not a housing development, would require a developer to provide a right of first refusal for a comparable unit in the required replacement units to the existing occupants of any protected units that are lower income households.
Existing law requires the Department of Housing and Community Development to notify the city, county, or city and county and authorizes the department to notify the Attorney General that a city, county, or city and county is in violation of state law if the department finds that the housing element, amendment to the element, or other specified actions or failures to act do not substantially comply with specified provisions of existing law, including the above-described prohibition on an affected city or an affected county from approving a housing development project that will require the demolition of one or more residential dwelling units unless the project creates at least as many residential dwelling units as will be demolished.
This bill would remove the above-described requirement and authorization for the department to notify the city, county, or city and county and the Attorney General of a housing element, amendment, or other action found to be in violation of specified law.
The bill would make various other conforming and nonsubstantive changes.
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.
Existing law, the Housing Crisis Act of 2019, among other things, prohibits an affected city or an affected county, as defined, from approving a housing development project that will require the demolition of one or more residential dwelling units, unless the project creates at least as many residential dwelling units as will be demolished.
The act also prohibits an affected city or affected county from approving any housing development project that will require the demolition of occupied or vacant protected units, unless specified conditions are met. In this regard, the act requires a project that will require the demolition of occupied or vacant protected units to, among other things, (1) replace all existing protected units and protected units demolished on or after January 1, 2020, (2) include a minimum amount of residential units, (3) allow existing occupants to occupy their units until 6 months before the start of construction activities, and (4) provide relocation benefits to the existing occupants of any protected units that are lower income households.
This bill would expand the demolition of residential dwelling units prohibitions to prohibit an affected city or affected county from approving any development project that will require the demolition of occupied or vacant protected units, or that is located on a site where protected units were demolished in the previous 5 years, unless the conditions described above are met. met, except as provided. In this regard, the bill would require a proponent to ensure that the required replacement housing is developed prior to or concurrently with the development project, if the project is not a housing development project.
If the development project will require the demolition of occupied or vacant protected units, existing law requires a developer to agree to provide a right of first refusal for a comparable unit available in the new housing development to the existing occupants of any protected units that are lower income households.
This bill, if the development project will require the demolition of occupied or vacant protected units and the new development is not a housing development, would require a developer to provide a right of first refusal for a comparable unit in the required replacement units to the existing occupants of any protected units that are lower income households.
Existing law requires the Department of Housing and Community Development to notify the city, county, or city and county and authorizes the department to notify the Attorney General that a city, county, or city and county is in violation of state law if the department finds that the housing element, amendment to the element, or other specified actions or failures to act do not substantially comply with specified provisions of existing law, including the above-described prohibition on an affected city or an affected county from approving a housing development project that will require the demolition of one or more residential dwelling units unless the project creates at least as many residential dwelling units as will be demolished.
This bill would remove the above-described requirement and authorization for the department to notify the city, county, or city and county and the Attorney General of a housing element, amendment, or other action found to be in violation of specified law.
The bill would make various other conforming and nonsubstantive changes.
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.
Existing law, the Housing Crisis Act of 2019, among other things, prohibits an affected city or an affected county, as defined, from approving a housing development project that will require the demolition of one or more residential dwelling units, unless the project creates at least as many residential dwelling units as will be demolished.
The act also prohibits an affected city or affected county from approving any housing development project that will require the demolition of occupied or vacant protected units, unless specified conditions are met. In this regard, the act requires a project that will require the demolition of occupied or vacant protected units to, among other things, (1) replace all existing or demolished protected units, units and protected units demolished on or after January 1, 2020, (2) include a minimum amount of residential units, (3) allow existing occupants to occupy their units until 6 months before the start of construction activities, and (4) provide relocation benefits to the existing occupants of any protected units that are lower income households.
This bill would expand the demolition of residential dwelling units prohibitions to prohibit an affected city or affected county from approving any development project that will require the demolition of occupied or vacant protected units, or that is located on a site where protected units were demolished in the previous 5 years, unless the conditions described above are met. In this regard, the bill would require a proponent to ensure that the required replacement housing is developed prior to or concurrently with the development project, if the project is not a housing development project.
If the development project will require the demolition of occupied or vacant protected units, existing law requires a developer to agree to provide a right of first refusal for a comparable unit available in the new housing development to the existing occupants of any protected units that are lower income households.
This bill, if the development project will require the demolition of occupied or vacant protected units and the new development is not a housing development, would require a developer to provide a right of first refusal for a comparable unit in the required replacement units to the existing occupants of any protected units that are lower income households.
The bill would make various other conforming and nonsubstantive changes.
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.
Existing law, the Housing Crisis Act of 2019, among other things, prohibits an affected city or an affected county, as defined, from approving a housing development project that will require the demolition of one or more residential dwelling units, unless the project creates at least as many residential dwelling units as will be demolished.
The act also prohibits an affected city or affected county from approving any housing development project that will require the demolition of occupied or vacant protected units, unless specified conditions are met. In this regard, the act requires a project that will require the demolition of occupied or vacant protected units to, among other things, (1) replace all existing or demolished protected units, (2) include a minimum amount of residential units, (3) allow existing occupants to occupy their units until 6 months before the start of construction activities, and (4) provide relocation benefits to the existing occupants of any protected units that are lower income households.
This bill would expand the demolition of residential dwelling units prohibitions to prohibit an affected city or affected county from approving any development project that will require the demolition of occupied or vacant protected units, or that is located on a site where protected units were demolished in the previous 5 years, unless the conditions described above are met. In this regard, the bill would require a proponent to ensure that the required replacement housing is developed prior to or concurrently with the development project, if the project is not a housing development project.
If the development project will require the demolition of occupied or vacant protected units, existing law requires a developer to agree to provide a right of first refusal for a comparable unit available in the new housing development to the existing occupants of any protected units that are lower income households.
This bill, if the development project will require the demolition of occupied or vacant protected units and the new development is not a housing development, would require a developer to provide a right of first refusal for a comparable unit in the required replacement units to the existing occupants of any protected units that are lower income households.
Under existing law, the above-described provisions of the Housing Crisis Act of 2019 will become inoperative as of January 1, 2030, and are repealed as of January 1, 2034.This bill would remove the above-described provisions relating to the demolition of residential dwelling units from the act and would recast those provisions outside of the act, thereby extending operation of these provisions indefinitely.
The bill would make various other conforming changes.
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.
Existing law, the Housing Crisis Act of 2019, among other things, prohibits an affected city or an affected county, as defined, from approving a housing development project that will require the demolition of one or more residential dwelling units, unless the project creates at least as many residential dwelling units as will be demolished.
The act also prohibits an affected city or affected county from approving any housing development project that will require the demolition of occupied or vacant protected units, unless specified conditions are met. In this regard, the act requires a project that will require the demolition of occupied or vacant protected units to, among other things, (1) replace all existing or demolished protected units, (2) include a minimum amount of residential units, (3) allow existing occupants to occupy their units until 6 months before the start of construction activities, and (4) provide relocation benefits to the existing occupants of any protected units that are lower income households.
This bill would expand the demolition of residential dwelling units prohibitions to prohibit an affected city or affected county from approving any development project that will require the demolition of occupied or vacant protected units, or that is located on a site where protected units were demolished in the previous 5 years, unless the conditions described above are met. In this regard, the bill would require a proponent to ensure that the required replacement housing is developed prior to or concurrently with the development project, if the project is not a housing development project.
If the development project will require the demolition of occupied or vacant protected units, existing law requires a developer to agree to provide a right of first refusal for a comparable unit available in the new housing development to the existing occupants of any protected units that are lower income households.
This bill, if the development project will require the demolition of occupied or vacant protected units and the new development is not a housing development, would require a developer to provide a right of first refusal for a comparable unit in the required replacement units to the existing occupants of any protected units that are lower income households.
Under existing law, the above-described provisions of the Housing Crisis Act of 2019 will become inoperative as of January 1, 2030, and are repealed as of January 1, 2034.
This bill would remove the above-described provisions relating to the demolition of residential dwelling units from the act and would recast those provisions outside of the act, thereby extending operation of these provisions indefinitely. The bill would make various other conforming changes.
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.
Existing law, the Housing Crisis Act of 2019, prohibits an affected county or affected city, as defined, from enacting a development policy, standard, or condition that would change the general plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use below what was allowed under the land use designation and zoning ordinances of the affected county or affected city in effect on January 1, 2018. The act does not prohibit an affected county or an affected city from changing a land use designation or zoning ordinance to a less intensive use if the city or county concurrently changes the development standards, policies, and conditions applicable to other parcels within the jurisdiction to ensure that there is no net loss in residential capacity.This bill would make nonsubstantive changes to those provisions.Existing law, the Housing Crisis Act of 2019, prohibits an affected county or affected city, as defined, from enacting a development policy, standard, or condition that would change the general plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use below what was allowed under the land use designation and zoning ordinances of the affected county or affected city in effect on January 1, 2018. The act does not prohibit an affected county or an affected city from changing a land use designation or zoning ordinance to a less intensive use if the city or county concurrently changes the development standards, policies, and conditions applicable to other parcels within the jurisdiction to ensure that there is no net loss in residential capacity.
This bill would make nonsubstantive changes to those provisions.
(a)(1)If the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development.
(2)If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(A)Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B)Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(b)If the local government fails to provide the required documentation pursuant to subdivision (a), the development shall be deemed to satisfy the required objective planning standards.
(c)(1)For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(2)For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(d)The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a project as defined in Section 21065 of the Public Resources Code.
(e)Design review of the development may be conducted by the local governments planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(1)Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.
(2)Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.
(f)A development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915.
(g)The local government shall ensure that the project satisfies the requirements specified in Article 2 (commencing with Section 66300.5) of Chapter 12, regardless of whether the development is within or not within an affected city or within or not within an affected county.
(h)If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(i)A local government may, by ordinance adopted to implement this article, exempt a parcel from this section before a development proponent submits a development application on a parcel pursuant to this article if the local government makes written findings establishing all of the following:
(1)The local government has identified one or more parcels that meet the criteria described in subdivisions (b) through (f) of Section 65912.111.
(2)(A)If a parcel identified in paragraph (1) would not otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed pursuant to the requirements of this chapter. A parcel reclassified for development pursuant to this subparagraph shall be suitable for residential development. For purposes of this subparagraph, a parcel suitable for residential development shall have the same meaning as land suitable for residential development, as defined in Section 65583.2.
(B)If a parcel identified in paragraph (1) would otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed ministerially at residential densities above the residential density required in subdivision (b) of Section 65912.113.
(3)The substitution of the parcel or parcels identified in this subdivision for parcels reclassified pursuant to paragraph (2) will result in all of the following:
(A)No net loss of the total potential residential capacity in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of this chapter and local law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(B)No net loss of the total potential residential capacity of housing affordable to lower income households in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of this chapter and local law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(C)Affirmative furthering of fair housing.
(4)A parcel or parcels reclassified for development pursuant to subparagraph (A) of paragraph (2) shall be eligible for development pursuant to this chapter notwithstanding any contrary provision of the local governments charter, general plan, or ordinances, and a parcel or parcels reclassified for development pursuant to subparagraph (B) of paragraph (2) shall be developed ministerially at the densities and heights specified in the ordinance notwithstanding any contrary provision of the local governments charter, general plan, or ordinances.
(5)The local government has completed all of the rezonings required pursuant to subdivision (c) of Section 65583 for the sixth revision of its housing element.
(j)A local governments approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) of Section 65913.4.
(k)Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) of Section 65913.4.
(l)A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.
(m)A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) of Section 65913.4.
(n)A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) of Section 65913.4.
(o)A local government may adopt an ordinance to implement the provisions of this article. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
SEC. 2.Section 65912.124 of the Government Code is amended to read:65912.124.(a)(1)If the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development.
(2)If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(A)Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B)Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(b)If the local government fails to provide the required documentation pursuant to subdivision (a), the development shall be deemed to satisfy the required objective planning standards.
(c)(1)For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(2)For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(d)The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a project as defined in Section 21065 of the Public Resources Code.
(e)Design review of the development may be conducted by the local governments planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(1)Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.
(2)Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.
(f)A housing development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915, except that the project shall not use a concession to reduce a local government requirement for the provision of ground floor retail that is consistent with the allowance contained in paragraph (3) of subdivision (j) of Section 65912.123.
(g)The local government shall ensure that the project satisfies the requirements specified in Article 2 (commencing with Section 66300.5) of Chapter 12, regardless of whether the development is within or not within an affected city or within or not within an affected county.
(h)If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(i)A local government may, by ordinance adopted to implement this article, exempt a parcel from this section before a development proponent submits a development application on a parcel pursuant to this article if the local government makes written findings establishing all of the following:
(1)The local government has identified a parcel or parcels that meet the criteria described in subdivisions (b) and (e) to (h), inclusive, of Section 65912.121.
(2)(A)If a parcel identified in paragraph (1) would not otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed pursuant to the requirements of this chapter. A parcel reclassified for development pursuant to this subparagraph shall be suitable for residential development. For purposes of this subparagraph, a parcel suitable for residential development shall have the same meaning as land suitable for residential development, as defined in Section 65583.2.
(B)If a parcel identified in paragraph (1) would otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed ministerially at residential densities above the residential density required in subdivision (b) of Section 65912.123 and heights required in subdivision (c) of Section 65912.123.
(3)The substitution of the parcel or parcels identified in this subdivision for parcels reclassified pursuant to paragraph (2) will result in all of the following:
(A)No net loss of the total potential residential capacity in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of local and state law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(B)No net loss of the total potential residential capacity of housing affordable to lower income households in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of this chapter and local law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(C)Affirmative furthering of fair housing.
(4)A parcel or parcels reclassified for development pursuant to subparagraph (A) of paragraph (2) shall be eligible for development pursuant to this chapter notwithstanding any contrary provision of the local governments charter, general plan, or ordinances, and a parcel or parcels reclassified for development pursuant to subparagraph (B) of paragraph (2) shall be developed ministerially at the densities and heights specified in the ordinance notwithstanding any contrary provision of the local governments charter, general plan, or ordinances.
(5)The local government has completed all of the rezonings required pursuant to subdivision (c) of Section 65583 for the sixth revision of its housing element.
(j)A local governments approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) of Section 65913.4.
(k)Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) of Section 65913.4.
(l)A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.
(m)A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) of Section 65913.4.
(n)A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) of Section 65913.4.
(o)A local government may adopt an ordinance to implement the provisions of this article. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
SEC. 3.Section 65940 of the Government Code, as amended by Section 4 of Chapter 161 of the Statutes of 2021, is amended to read:65940.(a)(1)Each public agency shall compile one or more lists that shall specify in detail the information that will be required from any applicant for a development project. Each public agency shall revise the list of information required from an applicant to include a certification of compliance with Section 65962.5, and the statement of application required by Section 65943. Copies of the information, including the statement of application required by Section 65943, shall be made available to all applicants for development projects and to any person who requests the information.
(2)An affected city or affected county, as defined in Section 66300, shall include the information necessary to determine compliance with the requirements of Article 2 (commencing with Section 66300.5) of Chapter 12 in the list compiled pursuant to paragraph (1).
(b)The list of information required from any applicant shall include, where applicable, identification of whether the proposed project is located within 1,000 feet of a military installation, beneath a low-level flight path or within special use airspace as defined in Section 21098 of the Public Resources Code, and within an urbanized area as defined in Section 65944.
(c)(1)A public agency that is not beneath a low-level flight path or not within special use airspace and does not contain a military installation is not required to change its list of information required from applicants to comply with subdivision (b).
(2)A public agency that is entirely urbanized, as defined in subdivision (e) of Section 65944, with the exception of a jurisdiction that contains a military installation, is not required to change its list of information required from applicants to comply with subdivision (b).
(d)For purposes of this section, development project includes a housing development project as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(e)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 4.The heading of Article 1 (commencing with Section 66300) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:1.Housing Crisis Act of 2019SEC. 5.Section 66300 of the Government Code is amended to read:66300.(a)As used in this article, the following definitions shall apply:
(1)(A)Except as otherwise provided in subparagraph (B), affected city means a city, including a charter city, that the Department of Housing and Community Development determines, pursuant to subdivision (d), is in an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B)Notwithstanding subparagraph (A), affected city does not include any city that has a population of 5,000 or less and is not located within an urbanized area, as designated by the United States Census Bureau.
(2)Affected county means a census-designated place, based on the 2013-2017 American Community Survey 5-year Estimates, that is wholly located within the boundaries of an urbanized area, as designated by the United States Census Bureau.
(3)Notwithstanding any other law, affected county and affected city includes the electorate of an affected county or city exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the affected county or city.
(4)Department means the Department of Housing and Community Development.
(5)Development policy, standard, or condition means any of the following:
(A)A provision of, or amendment to, a general plan.
(B)A provision of, or amendment to, a specific plan.
(C)A provision of, or amendment to, a zoning ordinance.
(D)A subdivision standard or criterion.
(6)Housing development project has the same meaning as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(7)Objective design standard means a design standard that involves no personal or subjective judgment by a public official and is uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal of an application.
(b)(1)Notwithstanding any other law except as provided in subdivision (h), with respect to land where housing is an allowable use, an affected county or an affected city shall not enact a development policy, standard, or condition that would have any of the following effects:
(A)Changing the general plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use or reducing the intensity of land use within an existing general plan land use designation, specific plan land use designation, or zoning district in effect at the time of the proposed change, below what was allowed under the land use designation or zoning ordinances of the affected county or affected city, as applicable, as in effect on January 1, 2018, except as otherwise provided in clause (ii) of subparagraph (B) or subdivision (h). For purposes of this subparagraph, reducing the intensity of land use includes, but is not limited to, reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, new or increased setback requirements, minimum frontage requirements, or maximum lot coverage limitations, or any other action that would individually or cumulatively reduce the sites residential development capacity.
(B)(i)Imposing a moratorium or similar restriction or limitation on housing development, including mixed-use development, within all or a portion of the jurisdiction of the affected county or city, other than to specifically protect against an imminent threat to the health and safety of persons residing in, or within the immediate vicinity of, the area subject to the moratorium or for projects specifically identified as existing restricted affordable housing.
(ii)The affected county or affected city, as applicable, shall not enforce a zoning ordinance imposing a moratorium or other similar restriction on or limitation of housing development until it has submitted the ordinance to, and received approval from, the department. The department shall approve a zoning ordinance submitted to it pursuant to this subparagraph only if it determines that the zoning ordinance satisfies the requirements of this subparagraph. If the department denies approval of a zoning ordinance imposing a moratorium or similar restriction or limitation on housing development as inconsistent with this subparagraph, that ordinance shall be deemed void.
(C)Imposing or enforcing design standards established on or after January 1, 2020, that are not objective design standards.
(D)Except as provided in subparagraph (E), establishing or implementing any provision that:
(i)Limits the number of land use approvals or permits necessary for the approval and construction of housing that will be issued or allocated within all or a portion of the affected county or affected city, as applicable.
(ii)Acts as a cap on the number of housing units that can be approved or constructed either annually or for some other time period.
(iii)Limits the population of the affected county or affected city, as applicable.
(E)Notwithstanding subparagraph (D), an affected county or affected city may enforce a limit on the number of approvals or permits or a cap on the number of housing units that can be approved or constructed if the provision of law imposing the limit was approved by voters prior to January 1, 2005, and the affected county or affected city is located in a predominantly agricultural county. For the purposes of this subparagraph, predominantly agricultural county means a county that meets both of the following, as determined by the most recent California Farmland Conversion Report produced by the Department of Conservation:
(i)Has more than 550,000 acres of agricultural land.
(ii)At least one-half of the county area is agricultural land.
(2)Any development policy, standard, or condition enacted on or after the effective date of this section that does not comply with this section shall be deemed void.
(c)Notwithstanding subdivisions (b) and (e), an affected county or affected city may enact a development policy, standard, or condition to prohibit the commercial use of land that is designated for residential use, including, but not limited to, short-term occupancy of a residence, consistent with the authority conferred on the county or city by other law.
(d)The Department of Housing and Community Development shall determine those cities and counties in this state that are affected cities and affected counties, in accordance with subdivision (a) by June 30, 2020. The department may update the list of affected cities and affected counties once on or after January 1, 2021, and once on or after January 1, 2025, to account for changes in urbanized areas or urban clusters due to new data obtained from the 2020 census. The departments determination shall remain valid until January 1, 2030.
(e)(1)Except as provided in paragraphs (3) and (4) and subdivisions (g) and (h), this section shall prevail over any conflicting provision of this title or other law regulating housing development in this state to the extent that this section more fully advances the intent specified in paragraph (2).
(2)It is the intent of the Legislature that this section be broadly construed so as to maximize the development of housing within this state. Any exception to the requirements of this section, including an exception for the health and safety of occupants of a housing development project, shall be construed narrowly.
(3)This section shall not be construed as prohibiting the adoption or amendment of a development policy, standard, or condition in a manner that:
(A)Allows greater density.
(B)Facilitates the development of housing.
(C)Reduces the costs to a housing development project.
(D)Imposes or implements mitigation measures as necessary to comply with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(4)This section shall not apply to a housing development project located within a very high fire hazard severity zone. For purposes of this paragraph, very high fire hazard severity zone has the same meaning as provided in Section 51177.
(f)This section shall not be construed to void a height limit, urban growth boundary, or urban limit established by the electorate of an affected county or an affected city, provided that the height limit, urban growth boundary, or urban limit complies with subparagraph (A) of paragraph (1) of subdivision (b).
(g)(1)Nothing in this section supersedes, limits, or otherwise modifies the requirements of, or the standards of review pursuant to, Division 13 (commencing with Section 21000) of the Public Resources Code.
(2)Nothing in this section supersedes, limits, or otherwise modifies the requirements of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). For a housing development project proposed within the coastal zone, nothing in this section shall be construed to prohibit an affected county or an affected city from enacting a development policy, standard, or condition necessary to implement or amend a certified local coastal program consistent with the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code).
(h)(1)This section does not prohibit an affected county or an affected city, including the local electorate acting through the initiative process, from changing a land use designation or zoning ordinance to a less intensive use, or reducing the intensity of land use, if the city or county concurrently changes the development standards, policies, and conditions applicable to other parcels within the jurisdiction to ensure that there is no net loss in residential capacity.
(2)(A)For purposes of this subdivision, concurrently means the action is approved at the same meeting of the legislative body.
(B)Notwithstanding subparagraph (A), if the action that would result in a net loss of residential capacity is requested by an applicant for a housing development project, concurrently means within 180 days.
(C)Notwithstanding subparagraph (A), in the case of an initiative measure, concurrently means the action is included in the initiative in a manner that ensures the added residential capacity is effective at the same time as the reduction in residential capacity.
(3)(A)(i)The City of San Jose may proactively change a zoning ordinance to a more intensive use and subsequently use the additional capacity to change a zoning ordinance applicable to an eligible parcel to a less intensive use as long as there is no net loss in residential capacity.
(ii)A change to a zoning ordinance to a less intensive use under this paragraph shall occur within one year of the change to the zoning ordinance to a more intensive use.
(iii)For purposes of this paragraph, eligible parcel means a parcel that meets all of the following criteria:
(I)It is zoned for residential uses.
(II)It does not have a multifamily housing general plan designation.
(III)Its zoning is inconsistent with the general plan of the city in effect on January 1, 2018.
(B)A change to a zoning ordinance to a less intensive use under this paragraph shall not be effective until the City of San Jose establishes zoning districts that implement mixed-use neighborhood, urban residential, transit residential, and urban village general plan land use designations.
(C)The City of San Jose shall report each zoning ordinance amendment establishing a less intensive use pursuant to this paragraph in the following ways:
(i)In its annual report submitted pursuant to paragraph (2) of subdivision (a) of Section 65400 and submit the annual report to the relevant policy committees of the Legislature each year that the City of San Jose adopts a zoning ordinance amendment pursuant to this paragraph.
(ii)Electronically on an internet website accessible to the public by the time the zoning ordinance amendment is in effect.
(D)This paragraph shall become inoperative upon the date that the City of San Joses housing element update for the sixth cycle is due pursuant to Section 65588.
(4)This section does not prohibit an affected county or an affected city from changing a land use designation or zoning ordinance to a less intensive use on a site that is a mobilehome park, as defined in Section 18214 of the Health and Safety Code, as of the effective date of this section, and the no net loss requirement in paragraph (1) shall not apply.
(i)Notwithstanding subdivisions (b) and (e), this section does not prohibit an affected city or an affected county from enacting a development policy, standard, or condition that is intended to preserve or facilitate the production of housing for lower income households, as defined in Section 50079.5 of the Health and Safety Code, or housing types that traditionally serve lower income households, including mobilehome parks, single-room occupancy units, or units subject to any form of rent or price control through a public entitys valid exercise of its police power.
(j)The amendments to subparagraph (A) of paragraph (1) of subdivision (b), and to paragraph (1) of subdivision (h) made by the act adding this subdivision do not constitute a change in, but are declaratory of, existing law.
SEC. 6.Article 2 (commencing with Section 66300.5) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:2.Demolition of Housing Units66300.5.For purposes of this article:
(a)(1)(A)Except as otherwise provided in subparagraph (B), affected city means a city, including a charter city, that the Department of Housing and Community Development determines, pursuant to subdivision (d), is in an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B)Notwithstanding subparagraph (A), affected city does not include any city that has a population of 5,000 or less and is not located within an urbanized area, as designated by the United States Census Bureau.
(2)Affected county means a census-designated place, based on the 2013-2017 American Community Survey 5-year Estimates, that is wholly located within the boundaries of an urbanized area, as designated by the United States Census Bureau.
(3)Notwithstanding any other law, affected county and affected city includes the electorate of an affected county or city exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the affected county or city.
(b)Affordable housing cost has the same meaning as defined in Section 50052.5 of the Health and Safety Code.
(c)Affordable rent has the same meaning as defined in Section 50053 of the Health and Safety Code.
(d)Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.
(e)Housing development project has the same meaning as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(f)Persons and families of low or moderate income has the same meaning as defined in Section 50093 of the Health and Safety Code.
(g)Lower income households has the same meaning as defined in Section 50079.5 of the Health and Safety Code.
(h)Protected units means any of the following:
(1)Residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years.
(2)Residential dwelling units that are or were subject to any form of rent or price control through a public entitys valid exercise of its police power within the past five years.
(3)Residential dwelling units that are or were rented by lower or very low income households within the past five years.
(4)Residential dwelling units that were withdrawn from rent or lease in accordance with Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 within the past 10 years.
(i)(1)Replace shall have the same meaning as provided in subparagraphs (B) and (C) of paragraph (3) of subdivision (c) of Section 65915.
(2)Notwithstanding paragraph (1), for purposes of a development project that consists of a single residential unit on a site with a single protected unit, replace shall mean that the protected unit is replaced with a unit of any size at any income level.
(j)Very low income households has the same meaning as defined in Section 50105 of the Health and Safety Code.
66300.6.(a)Notwithstanding any other law and notwithstanding local density requirements, an affected city or an affected county shall not approve a housing development project that will require the demolition of one or more residential dwelling units unless the project will create at least as many residential dwelling units as will be demolished.
(b)Notwithstanding any other law and notwithstanding local density requirements, an affected city or an affected county shall not approve a development project that will require the demolition of occupied or vacant protected units, or that is located on a site where protected units were demolished in the previous five years, unless all of the following requirements are satisfied:
(1)(A)The project will replace all existing protected units and protected units demolished on or after January 1, 2020.
(B)Any protected units replaced pursuant to this paragraph shall be considered in determining whether the housing development project satisfies the requirements of Section 65915 or a locally adopted requirement that requires, as a condition of the development of residential rental units, that the project provide a certain percentage of residential rental units affordable to, and occupied by, households with incomes that do not exceed the limits for moderate-income, lower income, very low income, or extremely low income households, as specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code.
(C)This paragraph shall not apply to a project that meets all of the following conditions:
(i)The project is an industrial use.
(ii)The project site is entirely within a zone that does not allow residential uses.
(iii)The zoning applicable to the project site that does not allow residential uses was adopted prior to January 1, 2022.
(iv)The protected units that are or were on the project site are or were nonconforming uses.
(2)(A)If the project is a housing development project, it will include at least as many residential dwelling units as the greatest number of residential dwelling units that existed on the project site within the last five years.
(B)If the project is not a housing development project, the proponent will ensure that any required replacement housing is developed prior to or concurrently with the development project. The required replacement housing may be located on a site other than the project site but shall be located within the same jurisdiction. The project proponent may contract with another entity to develop the required replacement housing.
(3)(A)Any existing occupants will be allowed to occupy their units until six months before the start of construction activities. The project proponent shall provide existing occupants with written notice of the planned demolition, the date they must vacate, and their rights under this section. Notice shall be provided at least six months in advance of the date that existing occupants must vacate.
(B)Any existing occupants that are required to leave their units shall be allowed to return at their prior rental rate if the demolition does not proceed and the property is returned to the rental market.
(4)The developer agrees to provide both of the following to the existing occupants of any protected units that are lower income households:
(A)Relocation benefits that are equivalent to the relocation benefits required to be paid by public entities pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 and any implementing regulations.
(B)A right of first refusal for a comparable unit available in the new housing development, or in any required replacement units associated with a new development that is not a housing development, affordable to the household at an affordable rent or an affordable housing cost. This subparagraph shall not apply to any of the following:
(i)A development project that consists of a single residential unit located on a site where a single protected unit is being demolished.
(ii)(I)Units in a housing development in which 100 percent of the units, exclusive of a managers unit or units, are reserved for lower income households.
(II)Notwithstanding subclause (I), this subparagraph shall apply to protected units occupied by an occupant who qualifies for residence in the new development and for whom providing a comparable unit would not be precluded due to unit size limitations or other requirements of one or more funding source of the housing development.
(iii)A project that meets the requirements of subparagraph (C) of paragraph (1).
(C)(i)For purposes of complying with subparagraph (B), if one or more single-family homes that qualify as protected units are being replaced in a development project that consists of two or more units, comparable unit means either of the following, as applicable:
(I)A unit containing the same number of bedrooms if the single-family home contains three or fewer bedrooms.
(II)A unit containing three bedrooms if the single-family home contains four or more bedrooms.
(ii)For purposes of this subparagraph, a comparable unit is not required to have the same or similar square footage or the same number of total rooms.
(D)This subparagraph does not apply to an occupant of a short-term rental that is rented for a period of fewer than 30 days.
(5)This subdivision does not confer additional legal protections upon an unlawful occupant of a protected unit.
(c)This section shall not supersede any objective provision of a locally adopted ordinance that places restrictions on the demolition of residential dwelling units or the subdivision of residential rental units that are more protective of lower income households, requires the provision of a greater number of units affordable to lower income households, or that requires greater relocation assistance to displaced households.
(d)This section shall not apply to a housing development project for which an application was submitted after January 1, 2019, but prior to January 1, 2020, in a jurisdiction with a population of under 31,000 as of the 2020 United States Census that has a rent or price control ordinance.
SEC. 7.The heading of Article 3 (commencing with Section 66301) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:3.Duration of ChapterSEC. 8.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
(a)(1)If the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development.
(2)If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(A)Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B)Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(b)If the local government fails to provide the required documentation pursuant to subdivision (a), the development shall be deemed to satisfy the required objective planning standards.
(c)(1)For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(2)For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(d)The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a project as defined in Section 21065 of the Public Resources Code.
(e)Design review of the development may be conducted by the local governments planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(1)Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.
(2)Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.
(f)A development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915.
(g)The local government shall ensure that the project satisfies the requirements specified in Article 2 (commencing with Section 66300.5) of Chapter 12, regardless of whether the development is within or not within an affected city or within or not within an affected county.
(h)If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(i)A local government may, by ordinance adopted to implement this article, exempt a parcel from this section before a development proponent submits a development application on a parcel pursuant to this article if the local government makes written findings establishing all of the following:
(1)The local government has identified one or more parcels that meet the criteria described in subdivisions (b) through (f) of Section 65912.111.
(2)(A)If a parcel identified in paragraph (1) would not otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed pursuant to the requirements of this chapter. A parcel reclassified for development pursuant to this subparagraph shall be suitable for residential development. For purposes of this subparagraph, a parcel suitable for residential development shall have the same meaning as land suitable for residential development, as defined in Section 65583.2.
(B)If a parcel identified in paragraph (1) would otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed ministerially at residential densities above the residential density required in subdivision (b) of Section 65912.113.
(3)The substitution of the parcel or parcels identified in this subdivision for parcels reclassified pursuant to paragraph (2) will result in all of the following:
(A)No net loss of the total potential residential capacity in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of this chapter and local law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(B)No net loss of the total potential residential capacity of housing affordable to lower income households in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of this chapter and local law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(C)Affirmative furthering of fair housing.
(4)A parcel or parcels reclassified for development pursuant to subparagraph (A) of paragraph (2) shall be eligible for development pursuant to this chapter notwithstanding any contrary provision of the local governments charter, general plan, or ordinances, and a parcel or parcels reclassified for development pursuant to subparagraph (B) of paragraph (2) shall be developed ministerially at the densities and heights specified in the ordinance notwithstanding any contrary provision of the local governments charter, general plan, or ordinances.
(5)The local government has completed all of the rezonings required pursuant to subdivision (c) of Section 65583 for the sixth revision of its housing element.
(j)A local governments approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) of Section 65913.4.
(k)Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) of Section 65913.4.
(l)A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.
(m)A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) of Section 65913.4.
(n)A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) of Section 65913.4.
(o)A local government may adopt an ordinance to implement the provisions of this article. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
SEC. 2.Section 65912.124 of the Government Code is amended to read:65912.124.(a)(1)If the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development.
(2)If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(A)Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B)Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(b)If the local government fails to provide the required documentation pursuant to subdivision (a), the development shall be deemed to satisfy the required objective planning standards.
(c)(1)For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(2)For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(d)The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a project as defined in Section 21065 of the Public Resources Code.
(e)Design review of the development may be conducted by the local governments planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(1)Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.
(2)Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.
(f)A housing development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915, except that the project shall not use a concession to reduce a local government requirement for the provision of ground floor retail that is consistent with the allowance contained in paragraph (3) of subdivision (j) of Section 65912.123.
(g)The local government shall ensure that the project satisfies the requirements specified in Article 2 (commencing with Section 66300.5) of Chapter 12, regardless of whether the development is within or not within an affected city or within or not within an affected county.
(h)If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(i)A local government may, by ordinance adopted to implement this article, exempt a parcel from this section before a development proponent submits a development application on a parcel pursuant to this article if the local government makes written findings establishing all of the following:
(1)The local government has identified a parcel or parcels that meet the criteria described in subdivisions (b) and (e) to (h), inclusive, of Section 65912.121.
(2)(A)If a parcel identified in paragraph (1) would not otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed pursuant to the requirements of this chapter. A parcel reclassified for development pursuant to this subparagraph shall be suitable for residential development. For purposes of this subparagraph, a parcel suitable for residential development shall have the same meaning as land suitable for residential development, as defined in Section 65583.2.
(B)If a parcel identified in paragraph (1) would otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed ministerially at residential densities above the residential density required in subdivision (b) of Section 65912.123 and heights required in subdivision (c) of Section 65912.123.
(3)The substitution of the parcel or parcels identified in this subdivision for parcels reclassified pursuant to paragraph (2) will result in all of the following:
(A)No net loss of the total potential residential capacity in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of local and state law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(B)No net loss of the total potential residential capacity of housing affordable to lower income households in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of this chapter and local law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(C)Affirmative furthering of fair housing.
(4)A parcel or parcels reclassified for development pursuant to subparagraph (A) of paragraph (2) shall be eligible for development pursuant to this chapter notwithstanding any contrary provision of the local governments charter, general plan, or ordinances, and a parcel or parcels reclassified for development pursuant to subparagraph (B) of paragraph (2) shall be developed ministerially at the densities and heights specified in the ordinance notwithstanding any contrary provision of the local governments charter, general plan, or ordinances.
(5)The local government has completed all of the rezonings required pursuant to subdivision (c) of Section 65583 for the sixth revision of its housing element.
(j)A local governments approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) of Section 65913.4.
(k)Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) of Section 65913.4.
(l)A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.
(m)A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) of Section 65913.4.
(n)A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) of Section 65913.4.
(o)A local government may adopt an ordinance to implement the provisions of this article. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
SEC. 3.Section 65940 of the Government Code, as amended by Section 4 of Chapter 161 of the Statutes of 2021, is amended to read:65940.(a)(1)Each public agency shall compile one or more lists that shall specify in detail the information that will be required from any applicant for a development project. Each public agency shall revise the list of information required from an applicant to include a certification of compliance with Section 65962.5, and the statement of application required by Section 65943. Copies of the information, including the statement of application required by Section 65943, shall be made available to all applicants for development projects and to any person who requests the information.
(2)An affected city or affected county, as defined in Section 66300, shall include the information necessary to determine compliance with the requirements of Article 2 (commencing with Section 66300.5) of Chapter 12 in the list compiled pursuant to paragraph (1).
(b)The list of information required from any applicant shall include, where applicable, identification of whether the proposed project is located within 1,000 feet of a military installation, beneath a low-level flight path or within special use airspace as defined in Section 21098 of the Public Resources Code, and within an urbanized area as defined in Section 65944.
(c)(1)A public agency that is not beneath a low-level flight path or not within special use airspace and does not contain a military installation is not required to change its list of information required from applicants to comply with subdivision (b).
(2)A public agency that is entirely urbanized, as defined in subdivision (e) of Section 65944, with the exception of a jurisdiction that contains a military installation, is not required to change its list of information required from applicants to comply with subdivision (b).
(d)For purposes of this section, development project includes a housing development project as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(e)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 4.The heading of Article 1 (commencing with Section 66300) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:1.Housing Crisis Act of 2019SEC. 5.Section 66300 of the Government Code is amended to read:66300.(a)As used in this article, the following definitions shall apply:
(1)(A)Except as otherwise provided in subparagraph (B), affected city means a city, including a charter city, that the Department of Housing and Community Development determines, pursuant to subdivision (d), is in an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B)Notwithstanding subparagraph (A), affected city does not include any city that has a population of 5,000 or less and is not located within an urbanized area, as designated by the United States Census Bureau.
(2)Affected county means a census-designated place, based on the 2013-2017 American Community Survey 5-year Estimates, that is wholly located within the boundaries of an urbanized area, as designated by the United States Census Bureau.
(3)Notwithstanding any other law, affected county and affected city includes the electorate of an affected county or city exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the affected county or city.
(4)Department means the Department of Housing and Community Development.
(5)Development policy, standard, or condition means any of the following:
(A)A provision of, or amendment to, a general plan.
(B)A provision of, or amendment to, a specific plan.
(C)A provision of, or amendment to, a zoning ordinance.
(D)A subdivision standard or criterion.
(6)Housing development project has the same meaning as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(7)Objective design standard means a design standard that involves no personal or subjective judgment by a public official and is uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal of an application.
(b)(1)Notwithstanding any other law except as provided in subdivision (h), with respect to land where housing is an allowable use, an affected county or an affected city shall not enact a development policy, standard, or condition that would have any of the following effects:
(A)Changing the general plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use or reducing the intensity of land use within an existing general plan land use designation, specific plan land use designation, or zoning district in effect at the time of the proposed change, below what was allowed under the land use designation or zoning ordinances of the affected county or affected city, as applicable, as in effect on January 1, 2018, except as otherwise provided in clause (ii) of subparagraph (B) or subdivision (h). For purposes of this subparagraph, reducing the intensity of land use includes, but is not limited to, reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, new or increased setback requirements, minimum frontage requirements, or maximum lot coverage limitations, or any other action that would individually or cumulatively reduce the sites residential development capacity.
(B)(i)Imposing a moratorium or similar restriction or limitation on housing development, including mixed-use development, within all or a portion of the jurisdiction of the affected county or city, other than to specifically protect against an imminent threat to the health and safety of persons residing in, or within the immediate vicinity of, the area subject to the moratorium or for projects specifically identified as existing restricted affordable housing.
(ii)The affected county or affected city, as applicable, shall not enforce a zoning ordinance imposing a moratorium or other similar restriction on or limitation of housing development until it has submitted the ordinance to, and received approval from, the department. The department shall approve a zoning ordinance submitted to it pursuant to this subparagraph only if it determines that the zoning ordinance satisfies the requirements of this subparagraph. If the department denies approval of a zoning ordinance imposing a moratorium or similar restriction or limitation on housing development as inconsistent with this subparagraph, that ordinance shall be deemed void.
(C)Imposing or enforcing design standards established on or after January 1, 2020, that are not objective design standards.
(D)Except as provided in subparagraph (E), establishing or implementing any provision that:
(i)Limits the number of land use approvals or permits necessary for the approval and construction of housing that will be issued or allocated within all or a portion of the affected county or affected city, as applicable.
(ii)Acts as a cap on the number of housing units that can be approved or constructed either annually or for some other time period.
(iii)Limits the population of the affected county or affected city, as applicable.
(E)Notwithstanding subparagraph (D), an affected county or affected city may enforce a limit on the number of approvals or permits or a cap on the number of housing units that can be approved or constructed if the provision of law imposing the limit was approved by voters prior to January 1, 2005, and the affected county or affected city is located in a predominantly agricultural county. For the purposes of this subparagraph, predominantly agricultural county means a county that meets both of the following, as determined by the most recent California Farmland Conversion Report produced by the Department of Conservation:
(i)Has more than 550,000 acres of agricultural land.
(ii)At least one-half of the county area is agricultural land.
(2)Any development policy, standard, or condition enacted on or after the effective date of this section that does not comply with this section shall be deemed void.
(c)Notwithstanding subdivisions (b) and (e), an affected county or affected city may enact a development policy, standard, or condition to prohibit the commercial use of land that is designated for residential use, including, but not limited to, short-term occupancy of a residence, consistent with the authority conferred on the county or city by other law.
(d)The Department of Housing and Community Development shall determine those cities and counties in this state that are affected cities and affected counties, in accordance with subdivision (a) by June 30, 2020. The department may update the list of affected cities and affected counties once on or after January 1, 2021, and once on or after January 1, 2025, to account for changes in urbanized areas or urban clusters due to new data obtained from the 2020 census. The departments determination shall remain valid until January 1, 2030.
(e)(1)Except as provided in paragraphs (3) and (4) and subdivisions (g) and (h), this section shall prevail over any conflicting provision of this title or other law regulating housing development in this state to the extent that this section more fully advances the intent specified in paragraph (2).
(2)It is the intent of the Legislature that this section be broadly construed so as to maximize the development of housing within this state. Any exception to the requirements of this section, including an exception for the health and safety of occupants of a housing development project, shall be construed narrowly.
(3)This section shall not be construed as prohibiting the adoption or amendment of a development policy, standard, or condition in a manner that:
(A)Allows greater density.
(B)Facilitates the development of housing.
(C)Reduces the costs to a housing development project.
(D)Imposes or implements mitigation measures as necessary to comply with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(4)This section shall not apply to a housing development project located within a very high fire hazard severity zone. For purposes of this paragraph, very high fire hazard severity zone has the same meaning as provided in Section 51177.
(f)This section shall not be construed to void a height limit, urban growth boundary, or urban limit established by the electorate of an affected county or an affected city, provided that the height limit, urban growth boundary, or urban limit complies with subparagraph (A) of paragraph (1) of subdivision (b).
(g)(1)Nothing in this section supersedes, limits, or otherwise modifies the requirements of, or the standards of review pursuant to, Division 13 (commencing with Section 21000) of the Public Resources Code.
(2)Nothing in this section supersedes, limits, or otherwise modifies the requirements of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). For a housing development project proposed within the coastal zone, nothing in this section shall be construed to prohibit an affected county or an affected city from enacting a development policy, standard, or condition necessary to implement or amend a certified local coastal program consistent with the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code).
(h)(1)This section does not prohibit an affected county or an affected city, including the local electorate acting through the initiative process, from changing a land use designation or zoning ordinance to a less intensive use, or reducing the intensity of land use, if the city or county concurrently changes the development standards, policies, and conditions applicable to other parcels within the jurisdiction to ensure that there is no net loss in residential capacity.
(2)(A)For purposes of this subdivision, concurrently means the action is approved at the same meeting of the legislative body.
(B)Notwithstanding subparagraph (A), if the action that would result in a net loss of residential capacity is requested by an applicant for a housing development project, concurrently means within 180 days.
(C)Notwithstanding subparagraph (A), in the case of an initiative measure, concurrently means the action is included in the initiative in a manner that ensures the added residential capacity is effective at the same time as the reduction in residential capacity.
(3)(A)(i)The City of San Jose may proactively change a zoning ordinance to a more intensive use and subsequently use the additional capacity to change a zoning ordinance applicable to an eligible parcel to a less intensive use as long as there is no net loss in residential capacity.
(ii)A change to a zoning ordinance to a less intensive use under this paragraph shall occur within one year of the change to the zoning ordinance to a more intensive use.
(iii)For purposes of this paragraph, eligible parcel means a parcel that meets all of the following criteria:
(I)It is zoned for residential uses.
(II)It does not have a multifamily housing general plan designation.
(III)Its zoning is inconsistent with the general plan of the city in effect on January 1, 2018.
(B)A change to a zoning ordinance to a less intensive use under this paragraph shall not be effective until the City of San Jose establishes zoning districts that implement mixed-use neighborhood, urban residential, transit residential, and urban village general plan land use designations.
(C)The City of San Jose shall report each zoning ordinance amendment establishing a less intensive use pursuant to this paragraph in the following ways:
(i)In its annual report submitted pursuant to paragraph (2) of subdivision (a) of Section 65400 and submit the annual report to the relevant policy committees of the Legislature each year that the City of San Jose adopts a zoning ordinance amendment pursuant to this paragraph.
(ii)Electronically on an internet website accessible to the public by the time the zoning ordinance amendment is in effect.
(D)This paragraph shall become inoperative upon the date that the City of San Joses housing element update for the sixth cycle is due pursuant to Section 65588.
(4)This section does not prohibit an affected county or an affected city from changing a land use designation or zoning ordinance to a less intensive use on a site that is a mobilehome park, as defined in Section 18214 of the Health and Safety Code, as of the effective date of this section, and the no net loss requirement in paragraph (1) shall not apply.
(i)Notwithstanding subdivisions (b) and (e), this section does not prohibit an affected city or an affected county from enacting a development policy, standard, or condition that is intended to preserve or facilitate the production of housing for lower income households, as defined in Section 50079.5 of the Health and Safety Code, or housing types that traditionally serve lower income households, including mobilehome parks, single-room occupancy units, or units subject to any form of rent or price control through a public entitys valid exercise of its police power.
(j)The amendments to subparagraph (A) of paragraph (1) of subdivision (b), and to paragraph (1) of subdivision (h) made by the act adding this subdivision do not constitute a change in, but are declaratory of, existing law.
SEC. 6.Article 2 (commencing with Section 66300.5) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:2.Demolition of Housing Units66300.5.For purposes of this article:
(a)(1)(A)Except as otherwise provided in subparagraph (B), affected city means a city, including a charter city, that the Department of Housing and Community Development determines, pursuant to subdivision (d), is in an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B)Notwithstanding subparagraph (A), affected city does not include any city that has a population of 5,000 or less and is not located within an urbanized area, as designated by the United States Census Bureau.
(2)Affected county means a census-designated place, based on the 2013-2017 American Community Survey 5-year Estimates, that is wholly located within the boundaries of an urbanized area, as designated by the United States Census Bureau.
(3)Notwithstanding any other law, affected county and affected city includes the electorate of an affected county or city exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the affected county or city.
(b)Affordable housing cost has the same meaning as defined in Section 50052.5 of the Health and Safety Code.
(c)Affordable rent has the same meaning as defined in Section 50053 of the Health and Safety Code.
(d)Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.
(e)Housing development project has the same meaning as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(f)Persons and families of low or moderate income has the same meaning as defined in Section 50093 of the Health and Safety Code.
(g)Lower income households has the same meaning as defined in Section 50079.5 of the Health and Safety Code.
(h)Protected units means any of the following:
(1)Residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years.
(2)Residential dwelling units that are or were subject to any form of rent or price control through a public entitys valid exercise of its police power within the past five years.
(3)Residential dwelling units that are or were rented by lower or very low income households within the past five years.
(4)Residential dwelling units that were withdrawn from rent or lease in accordance with Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 within the past 10 years.
(i)(1)Replace shall have the same meaning as provided in subparagraphs (B) and (C) of paragraph (3) of subdivision (c) of Section 65915.
(2)Notwithstanding paragraph (1), for purposes of a development project that consists of a single residential unit on a site with a single protected unit, replace shall mean that the protected unit is replaced with a unit of any size at any income level.
(j)Very low income households has the same meaning as defined in Section 50105 of the Health and Safety Code.
66300.6.(a)Notwithstanding any other law and notwithstanding local density requirements, an affected city or an affected county shall not approve a housing development project that will require the demolition of one or more residential dwelling units unless the project will create at least as many residential dwelling units as will be demolished.
(b)Notwithstanding any other law and notwithstanding local density requirements, an affected city or an affected county shall not approve a development project that will require the demolition of occupied or vacant protected units, or that is located on a site where protected units were demolished in the previous five years, unless all of the following requirements are satisfied:
(1)(A)The project will replace all existing protected units and protected units demolished on or after January 1, 2020.
(B)Any protected units replaced pursuant to this paragraph shall be considered in determining whether the housing development project satisfies the requirements of Section 65915 or a locally adopted requirement that requires, as a condition of the development of residential rental units, that the project provide a certain percentage of residential rental units affordable to, and occupied by, households with incomes that do not exceed the limits for moderate-income, lower income, very low income, or extremely low income households, as specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code.
(C)This paragraph shall not apply to a project that meets all of the following conditions:
(i)The project is an industrial use.
(ii)The project site is entirely within a zone that does not allow residential uses.
(iii)The zoning applicable to the project site that does not allow residential uses was adopted prior to January 1, 2022.
(iv)The protected units that are or were on the project site are or were nonconforming uses.
(2)(A)If the project is a housing development project, it will include at least as many residential dwelling units as the greatest number of residential dwelling units that existed on the project site within the last five years.
(B)If the project is not a housing development project, the proponent will ensure that any required replacement housing is developed prior to or concurrently with the development project. The required replacement housing may be located on a site other than the project site but shall be located within the same jurisdiction. The project proponent may contract with another entity to develop the required replacement housing.
(3)(A)Any existing occupants will be allowed to occupy their units until six months before the start of construction activities. The project proponent shall provide existing occupants with written notice of the planned demolition, the date they must vacate, and their rights under this section. Notice shall be provided at least six months in advance of the date that existing occupants must vacate.
(B)Any existing occupants that are required to leave their units shall be allowed to return at their prior rental rate if the demolition does not proceed and the property is returned to the rental market.
(4)The developer agrees to provide both of the following to the existing occupants of any protected units that are lower income households:
(A)Relocation benefits that are equivalent to the relocation benefits required to be paid by public entities pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 and any implementing regulations.
(B)A right of first refusal for a comparable unit available in the new housing development, or in any required replacement units associated with a new development that is not a housing development, affordable to the household at an affordable rent or an affordable housing cost. This subparagraph shall not apply to any of the following:
(i)A development project that consists of a single residential unit located on a site where a single protected unit is being demolished.
(ii)(I)Units in a housing development in which 100 percent of the units, exclusive of a managers unit or units, are reserved for lower income households.
(II)Notwithstanding subclause (I), this subparagraph shall apply to protected units occupied by an occupant who qualifies for residence in the new development and for whom providing a comparable unit would not be precluded due to unit size limitations or other requirements of one or more funding source of the housing development.
(iii)A project that meets the requirements of subparagraph (C) of paragraph (1).
(C)(i)For purposes of complying with subparagraph (B), if one or more single-family homes that qualify as protected units are being replaced in a development project that consists of two or more units, comparable unit means either of the following, as applicable:
(I)A unit containing the same number of bedrooms if the single-family home contains three or fewer bedrooms.
(II)A unit containing three bedrooms if the single-family home contains four or more bedrooms.
(ii)For purposes of this subparagraph, a comparable unit is not required to have the same or similar square footage or the same number of total rooms.
(D)This subparagraph does not apply to an occupant of a short-term rental that is rented for a period of fewer than 30 days.
(5)This subdivision does not confer additional legal protections upon an unlawful occupant of a protected unit.
(c)This section shall not supersede any objective provision of a locally adopted ordinance that places restrictions on the demolition of residential dwelling units or the subdivision of residential rental units that are more protective of lower income households, requires the provision of a greater number of units affordable to lower income households, or that requires greater relocation assistance to displaced households.
(d)This section shall not apply to a housing development project for which an application was submitted after January 1, 2019, but prior to January 1, 2020, in a jurisdiction with a population of under 31,000 as of the 2020 United States Census that has a rent or price control ordinance.
SEC. 7.The heading of Article 3 (commencing with Section 66301) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:3.Duration of ChapterSEC. 8.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
(a)(1)If the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development.
(2)If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(A)Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B)Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(b)If the local government fails to provide the required documentation pursuant to subdivision (a), the development shall be deemed to satisfy the required objective planning standards.
(c)(1)For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(2)For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(d)The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a project as defined in Section 21065 of the Public Resources Code.
(e)Design review of the development may be conducted by the local governments planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(1)Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.
(2)Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.
(f)A development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915.
(g)The local government shall ensure that the project satisfies the requirements specified in subdivision (d) of Section 66300, Article 2 (commencing with Section 66300.5) of Chapter 12, regardless of whether the development is within or not within an affected city or within or not within an affected county.
(h)If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(i)A local government may, by ordinance adopted to implement this article, exempt a parcel from this section before a development proponent submits a development application on a parcel pursuant to this article if the local government makes written findings establishing all of the following:
(1)The local government has identified one or more parcels that meet the criteria described in subdivisions (b) through (f) of Section 65912.111.
(2)(A)If a parcel identified in paragraph (1) would not otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed pursuant to the requirements of this chapter. A parcel reclassified for development pursuant to this subparagraph shall be suitable for residential development. For purposes of this subparagraph, a parcel suitable for residential development shall have the same meaning as land suitable for residential development, as defined in Section 65583.2.
(B)If a parcel identified in paragraph (1) would otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed ministerially at residential densities above the residential density required in subdivision (b) of Section 65912.113.
(3)The substitution of the parcel or parcels identified in this subdivision for parcels reclassified pursuant to paragraph (2) will result in all of the following:
(A)No net loss of the total potential residential capacity in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of this chapter and local law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(B)No net loss of the total potential residential capacity of housing affordable to lower income households in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of this chapter and local law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(C)Affirmative furthering of fair housing.
(4)A parcel or parcels reclassified for development pursuant to subparagraph (A) of paragraph (2) shall be eligible for development pursuant to this chapter notwithstanding any contrary provision of the local governments charter, general plan, or ordinances, and a parcel or parcels reclassified for development pursuant to subparagraph (B) of paragraph (2) shall be developed ministerially at the densities and heights specified in the ordinance notwithstanding any contrary provision of the local governments charter, general plan, or ordinances.
(5)The local government has completed all of the rezonings required pursuant to subdivision (c) of Section 65583 for the sixth revision of its housing element.
(j)A local governments approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) of Section 65913.4.
(k)Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) of Section 65913.4.
(l)A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.
(m)A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) of Section 65913.4.
(n)A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) of Section 65913.4.
(o)A local government may adopt an ordinance to implement the provisions of this article. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
SEC. 2.Section 65912.124 of the Government Code is amended to read:65912.124.(a)(1)If the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development.
(2)If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(A)Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B)Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(b)If the local government fails to provide the required documentation pursuant to subdivision (a), the development shall be deemed to satisfy the required objective planning standards.
(c)(1)For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(2)For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(d)The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a project as defined in Section 21065 of the Public Resources Code.
(e)Design review of the development may be conducted by the local governments planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(1)Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.
(2)Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.
(f)A housing development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915, except that the project shall not use a concession to reduce a local government requirement for the provision of ground floor retail that is consistent with the allowance contained in paragraph (3) of subdivision (j) of Section 65912.123.
(g)The local government shall ensure that the project satisfies the requirements specified in subdivision (d) of Section 66300, Article 2 (commencing with Section 66300.5) of Chapter 12, regardless of whether the development is within or not within an affected city or within or not within an affected county.
(h)If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(i)A local government may, by ordinance adopted to implement this article, exempt a parcel from this section before a development proponent submits a development application on a parcel pursuant to this article if the local government makes written findings establishing all of the following:
(1)The local government has identified a parcel or parcels that meet the criteria described in subdivisions (b) and (e) to (h), inclusive, of Section 65912.121.
(2)(A)If a parcel identified in paragraph (1) would not otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed pursuant to the requirements of this chapter. A parcel reclassified for development pursuant to this subparagraph shall be suitable for residential development. For purposes of this subparagraph, a parcel suitable for residential development shall have the same meaning as land suitable for residential development, as defined in Section 65583.2.
(B)If a parcel identified in paragraph (1) would otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed ministerially at residential densities above the residential density required in subdivision (b) of Section 65912.123 and heights required in subdivision (c) of Section 65912.123.
(3)The substitution of the parcel or parcels identified in this subdivision for parcels reclassified pursuant to paragraph (2) will result in all of the following:
(A)No net loss of the total potential residential capacity in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of local and state law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(B)No net loss of the total potential residential capacity of housing affordable to lower income households in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of this chapter and local law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(C)Affirmative furthering of fair housing.
(4)A parcel or parcels reclassified for development pursuant to subparagraph (A) of paragraph (2) shall be eligible for development pursuant to this chapter notwithstanding any contrary provision of the local governments charter, general plan, or ordinances, and a parcel or parcels reclassified for development pursuant to subparagraph (B) of paragraph (2) shall be developed ministerially at the densities and heights specified in the ordinance notwithstanding any contrary provision of the local governments charter, general plan, or ordinances.
(5)The local government has completed all of the rezonings required pursuant to subdivision (c) of Section 65583 for the sixth revision of its housing element.
(j)A local governments approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) of Section 65913.4.
(k)Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) of Section 65913.4.
(l)A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.
(m)A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) of Section 65913.4.
(n)A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) of Section 65913.4.
(o)A local government may adopt an ordinance to implement the provisions of this article. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
SEC. 4.SEC. 3.Section 65940 of the Government Code, as amended by Section 4 of Chapter 161 of the Statutes of 2021, is amended to read:65940.(a)(1)Each public agency shall compile one or more lists that shall specify in detail the information that will be required from any applicant for a development project. Each public agency shall revise the list of information required from an applicant to include a certification of compliance with Section 65962.5, and the statement of application required by Section 65943. Copies of the information, including the statement of application required by Section 65943, shall be made available to all applicants for development projects and to any person who requests the information.
(2)An affected city or affected county, as defined in Section 66300, shall include the information necessary to determine compliance with the requirements of Article 2 (commencing with Section 66300.5) of Chapter 12 in the list compiled pursuant to paragraph (1).
(b)The list of information required from any applicant shall include, where applicable, identification of whether the proposed project is located within 1,000 feet of a military installation, beneath a low-level flight path or within special use airspace as defined in Section 21098 of the Public Resources Code, and within an urbanized area as defined in Section 65944.
(c)(1)A public agency that is not beneath a low-level flight path or not within special use airspace and does not contain a military installation is not required to change its list of information required from applicants to comply with subdivision (b).
(2)A public agency that is entirely urbanized, as defined in subdivision (e) of Section 65944, with the exception of a jurisdiction that contains a military installation, is not required to change its list of information required from applicants to comply with subdivision (b).
(d)For purposes of this section, development project includes a housing development project as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(e)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 5.SEC. 4.The heading of Article 1 (commencing with Section 66300) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:1.Housing Crisis Act of 2019SEC. 6.SEC. 5.Section 66300 of the Government Code is amended to read:66300.(a)As used in this article, the following definitions shall apply:
(1)(A)Except as otherwise provided in subparagraph (B), affected city means a city, including a charter city, that the Department of Housing and Community Development determines, pursuant to subdivision (d), is in an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B)Notwithstanding subparagraph (A), affected city does not include any city that has a population of 5,000 or less and is not located within an urbanized area, as designated by the United States Census Bureau.
(2)Affected county means a census-designated place, based on the 2013-2017 American Community Survey 5-year Estimates, that is wholly located within the boundaries of an urbanized area, as designated by the United States Census Bureau.
(3)Notwithstanding any other law, affected county and affected city includes the electorate of an affected county or city exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the affected county or city.
(4)Department means the Department of Housing and Community Development.
(5)Development policy, standard, or condition means any of the following:
(A)A provision of, or amendment to, a general plan.
(B)A provision of, or amendment to, a specific plan.
(C)A provision of, or amendment to, a zoning ordinance.
(D)A subdivision standard or criterion.
(6)Housing development project has the same meaning as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(7)Objective design standard means a design standard that involves no personal or subjective judgment by a public official and is uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal of an application.
(b)(1)Notwithstanding any other law except as provided in subdivision (h), with respect to land where housing is an allowable use, an affected county or an affected city shall not enact a development policy, standard, or condition that would have any of the following effects:
(A)Changing the general plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use or reducing the intensity of land use within an existing general plan land use designation, specific plan land use designation, or zoning district in effect at the time of the proposed change, below what was allowed under the land use designation or zoning ordinances of the affected county or affected city, as applicable, as in effect on January 1, 2018, except as otherwise provided in clause (ii) of subparagraph (B) or subdivision (h). For purposes of this subparagraph, reducing the intensity of land use includes, but is not limited to, reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, new or increased setback requirements, minimum frontage requirements, or maximum lot coverage limitations, or any other action that would individually or cumulatively reduce the sites residential development capacity.
(B)(i)Imposing a moratorium or similar restriction or limitation on housing development, including mixed-use development, within all or a portion of the jurisdiction of the affected county or city, other than to specifically protect against an imminent threat to the health and safety of persons residing in, or within the immediate vicinity of, the area subject to the moratorium or for projects specifically identified as existing restricted affordable housing.
(ii)The affected county or affected city, as applicable, shall not enforce a zoning ordinance imposing a moratorium or other similar restriction on or limitation of housing development until it has submitted the ordinance to, and received approval from, the department. The department shall approve a zoning ordinance submitted to it pursuant to this subparagraph only if it determines that the zoning ordinance satisfies the requirements of this subparagraph. If the department denies approval of a zoning ordinance imposing a moratorium or similar restriction or limitation on housing development as inconsistent with this subparagraph, that ordinance shall be deemed void.
(C)Imposing or enforcing design standards established on or after January 1, 2020, that are not objective design standards.
(D)Except as provided in subparagraph (E), establishing or implementing any provision that:
(i)Limits the number of land use approvals or permits necessary for the approval and construction of housing that will be issued or allocated within all or a portion of the affected county or affected city, as applicable.
(ii)Acts as a cap on the number of housing units that can be approved or constructed either annually or for some other time period.
(iii)Limits the population of the affected county or affected city, as applicable.
(E)Notwithstanding subparagraph (D), an affected county or affected city may enforce a limit on the number of approvals or permits or a cap on the number of housing units that can be approved or constructed if the provision of law imposing the limit was approved by voters prior to January 1, 2005, and the affected county or affected city is located in a predominantly agricultural county. For the purposes of this subparagraph, predominantly agricultural county means a county that meets both of the following, as determined by the most recent California Farmland Conversion Report produced by the Department of Conservation:
(i)Has more than 550,000 acres of agricultural land.
(ii)At least one-half of the county area is agricultural land.
(2)Any development policy, standard, or condition enacted on or after the effective date of this section that does not comply with this section shall be deemed void.
(c)Notwithstanding subdivisions (b) and (e), an affected county or affected city may enact a development policy, standard, or condition to prohibit the commercial use of land that is designated for residential use, including, but not limited to, short-term occupancy of a residence, consistent with the authority conferred on the county or city by other law.
(d)The Department of Housing and Community Development shall determine those cities and counties in this state that are affected cities and affected counties, in accordance with subdivision (a) by June 30, 2020. The department may update the list of affected cities and affected counties once on or after January 1, 2021, and once on or after January 1, 2025, to account for changes in urbanized areas or urban clusters due to new data obtained from the 2020 census. The departments determination shall remain valid until January 1, 2030.
(e)(1)Except as provided in paragraphs (3) and (4) and subdivisions (g) and (h), this section shall prevail over any conflicting provision of this title or other law regulating housing development in this state to the extent that this section more fully advances the intent specified in paragraph (2).
(2)It is the intent of the Legislature that this section be broadly construed so as to maximize the development of housing within this state. Any exception to the requirements of this section, including an exception for the health and safety of occupants of a housing development project, shall be construed narrowly.
(3)This section shall not be construed as prohibiting the adoption or amendment of a development policy, standard, or condition in a manner that:
(A)Allows greater density.
(B)Facilitates the development of housing.
(C)Reduces the costs to a housing development project.
(D)Imposes or implements mitigation measures as necessary to comply with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(4)This section shall not apply to a housing development project located within a very high fire hazard severity zone. For purposes of this paragraph, very high fire hazard severity zone has the same meaning as provided in Section 51177.
(f)This section shall not be construed to void a height limit, urban growth boundary, or urban limit established by the electorate of an affected county or an affected city, provided that the height limit, urban growth boundary, or urban limit complies with subparagraph (A) of paragraph (1) of subdivision (b).
(g)(1)Nothing in this section supersedes, limits, or otherwise modifies the requirements of, or the standards of review pursuant to, Division 13 (commencing with Section 21000) of the Public Resources Code.
(2)Nothing in this section supersedes, limits, or otherwise modifies the requirements of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). For a housing development project proposed within the coastal zone, nothing in this section shall be construed to prohibit an affected county or an affected city from enacting a development policy, standard, or condition necessary to implement or amend a certified local coastal program consistent with the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code).
(h)(1)This section does not prohibit an affected county or an affected city, including the local electorate acting through the initiative process, from changing a land use designation or zoning ordinance to a less intensive use, or reducing the intensity of land use, if the city or county concurrently changes the development standards, policies, and conditions applicable to other parcels within the jurisdiction to ensure that there is no net loss in residential capacity.
(2)(A)For purposes of this subdivision, concurrently means the action is approved at the same meeting of the legislative body.
(B)Notwithstanding subparagraph (A), if the action that would result in a net loss of residential capacity is requested by an applicant for a housing development project, concurrently means within 180 days.
(C)Notwithstanding subparagraph (A), in the case of an initiative measure, concurrently means the action is included in the initiative in a manner that ensures the added residential capacity is effective at the same time as the reduction in residential capacity.
(3)(A)(i)The City of San Jose may proactively change a zoning ordinance to a more intensive use and subsequently use the additional capacity to change a zoning ordinance applicable to an eligible parcel to a less intensive use as long as there is no net loss in residential capacity.
(ii)A change to a zoning ordinance to a less intensive use under this paragraph shall occur within one year of the change to the zoning ordinance to a more intensive use.
(iii)For purposes of this paragraph, eligible parcel means a parcel that meets all of the following criteria:
(I)It is zoned for residential uses.
(II)It does not have a multifamily housing general plan designation.
(III)Its zoning is inconsistent with the general plan of the city in effect on January 1, 2018.
(B)A change to a zoning ordinance to a less intensive use under this paragraph shall not be effective until the City of San Jose establishes zoning districts that implement mixed-use neighborhood, urban residential, transit residential, and urban village general plan land use designations.
(C)The City of San Jose shall report each zoning ordinance amendment establishing a less intensive use pursuant to this paragraph in the following ways:
(i)In its annual report submitted pursuant to paragraph (2) of subdivision (a) of Section 65400 and submit the annual report to the relevant policy committees of the Legislature each year that the City of San Jose adopts a zoning ordinance amendment pursuant to this paragraph.
(ii)Electronically on an internet website accessible to the public by the time the zoning ordinance amendment is in effect.
(D)This paragraph shall become inoperative upon the date that the City of San Joses housing element update for the sixth cycle is due pursuant to Section 65588.
(4)This section does not prohibit an affected county or an affected city from changing a land use designation or zoning ordinance to a less intensive use on a site that is a mobilehome park, as defined in Section 18214 of the Health and Safety Code, as of the effective date of this section, and the no net loss requirement in paragraph (1) shall not apply.
(i)Notwithstanding subdivisions (b) and (e), this section does not prohibit an affected city or an affected county from enacting a development policy, standard, or condition that is intended to preserve or facilitate the production of housing for lower income households, as defined in Section 50079.5 of the Health and Safety Code, or housing types that traditionally serve lower income households, including mobilehome parks, single-room occupancy units, or units subject to any form of rent or price control through a public entitys valid exercise of its police power.
(j)The amendments to subparagraph (A) of paragraph (1) of subdivision (b), and to paragraph (1) of subdivision (h) made by the act adding this subdivision do not constitute a change in, but are declaratory of, existing law.
SEC. 7.SEC. 6.Article 2 (commencing with Section 66300.5) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:2.Demolition of Housing Units66300.5.For purposes of this article:
(a)(1)(A)Except as otherwise provided in subparagraph (B), affected city means a city, including a charter city, that the Department of Housing and Community Development determines, pursuant to subdivision (d), is in an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B)Notwithstanding subparagraph (A), affected city does not include any city that has a population of 5,000 or less and is not located within an urbanized area, as designated by the United States Census Bureau.
(2)Affected county means a census-designated place, based on the 2013-2017 American Community Survey 5-year Estimates, that is wholly located within the boundaries of an urbanized area, as designated by the United States Census Bureau.
(3)Notwithstanding any other law, affected county and affected city includes the electorate of an affected county or city exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the affected county or city.
(b)Affordable housing cost has the same meaning as defined in Section 50052.5 of the Health and Safety Code.
(c)Affordable rent has the same meaning as defined in Section 50053 of the Health and Safety Code.
(d)Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.
(e)Housing development project has the same meaning as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(f)Persons and families of low or moderate income has the same meaning as defined in Section 50093 of the Health and Safety Code.
(g)Lower income households has the same meaning as defined in Section 50079.5 of the Health and Safety Code.
(h)Protected units means any of the following:
(1)Residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years.
(2)Residential dwelling units that are or were subject to any form of rent or price control through a public entitys valid exercise of its police power within the past five years.
(3)Residential dwelling units that are or were rented by lower or very low income households within the past five years.
(4)Residential dwelling units that were withdrawn from rent or lease in accordance with Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 within the past 10 years.
(i)(1)Replace shall have the same meaning as provided in subparagraphs (B) and (C) of paragraph (3) of subdivision (c) of Section 65915.
(2)Notwithstanding paragraph (1), for purposes of a development project that consists of a single residential unit on a site with a single protected unit, replace shall mean that the protected unit is replaced with a unit of any size at any income level.
(j)Very low income households has the same meaning as defined in Section 50105 of the Health and Safety Code.
66300.6.(a)Notwithstanding any other law and notwithstanding local density requirements, an affected city or an affected county shall not approve a housing development project that will require the demolition of one or more residential dwelling units unless the project will create at least as many residential dwelling units as will be demolished.
(b)Notwithstanding any other law and notwithstanding local density requirements, an affected city or an affected county shall not approve a development project that will require the demolition of occupied or vacant protected units, or that is located on a site where protected units were demolished in the previous five years, unless all of the following requirements are satisfied:
(1)(A)The project will replace all existing protected units and protected units demolished on or after January 1, 2020.
(B)Any protected units replaced pursuant to this paragraph shall be considered in determining whether the housing development project satisfies the requirements of Section 65915 or a locally adopted requirement that requires, as a condition of the development of residential rental units, that the project provide a certain percentage of residential rental units affordable to, and occupied by, households with incomes that do not exceed the limits for moderate-income, lower income, very low income, or extremely low income households, as specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code.
(C)This paragraph shall not apply to a project that meets all of the following conditions:
(i)The project is an industrial use.
(ii)The project site is entirely within a zone that does not allow residential uses.
(iii)The zoning applicable to the project site that does not allow residential uses was adopted prior to January 1, 2022.
(iv)The protected units that are or were on the project site are or were nonconforming uses.
(2)(A)If the project is a housing development project, it will include at least as many residential dwelling units as the greatest number of residential dwelling units that existed on the project site within the last five years.
(B)If the project is not a housing development project, the proponent will ensure that the any required replacement housing is developed prior to or concurrently with the development project. The required replacement housing may be located on a site other than the project site but shall be located within the same jurisdiction. The project proponent may contract with another entity to develop the required replacement housing.
(3)(A)Any existing occupants will be allowed to occupy their units until six months before the start of construction activities. The project proponent shall provide existing occupants with written notice of the planned demolition, the date they must vacate, and their rights under this section. Notice shall be provided at least six months in advance of the date that existing occupants must vacate.
(B)Any existing occupants that are required to leave their units shall be allowed to return at their prior rental rate if the demolition does not proceed and the property is returned to the rental market.
(4)The developer agrees to provide both of the following to the existing occupants of any protected units that are lower income households:
(A)Relocation benefits that are equivalent to the relocation benefits required to be paid by public entities pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 and any implementing regulations.
(B)A right of first refusal for a comparable unit available in the new housing development, or in the any required replacement units associated with a new development that is not a housing development, affordable to the household at an affordable rent or an affordable housing cost. This subparagraph shall not apply to any of the following:
(i)A development project that consists of a single residential unit located on a site where a single protected unit is being demolished.
(ii)(I)Units in a housing development in which 100 percent of the units, exclusive of a managers unit or units, are reserved for lower income households.
(II)Notwithstanding subclause (I), this subparagraph shall apply to protected units occupied by an occupant who qualifies for residence in the new development and for whom providing a comparable unit would not be precluded due to unit size limitations or other requirements of one or more funding source of the housing development.
(iii)A project that meets the requirements of subparagraph (C) of paragraph (1).
(C)(i)For purposes of complying with subparagraph (B), if one or more single-family homes that qualify as protected units are being replaced in a development project that consists of two or more units, comparable unit means either of the following, as applicable:
(I)A unit containing the same number of bedrooms if the single-family home contains three or fewer bedrooms.
(II)A unit containing three bedrooms if the single-family home contains four or more bedrooms.
(ii)For purposes of this subparagraph, a comparable unit is not required to have the same or similar square footage or the same number of total rooms.
(D)This subparagraph does not apply to an occupant of a short-term rental that is rented for a period of fewer than 30 days.
(5)This subdivision does not confer additional legal protections upon an unlawful occupant of a protected unit.
(c)This section shall not supersede any objective provision of a locally adopted ordinance that places restrictions on the demolition of residential dwelling units or the subdivision of residential rental units that are more protective of lower income households, requires the provision of a greater number of units affordable to lower income households, or that requires greater relocation assistance to displaced households.
(d)This section shall not apply to a housing development project for which an application was submitted after January 1, 2019, but prior to January 1, 2020, in a jurisdiction with a population of under 31,000 as of the 2020 United States Census that has a rent or price control ordinance.
SEC. 8.SEC. 7.The heading of Article 3 (commencing with Section 66301) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:3.Duration of ChapterSEC. 9.SEC. 8.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
(a)In the preparation of its housing element, each city and county shall consider the guidelines adopted by the department pursuant to Section 50459 of the Health and Safety Code. Those guidelines shall be advisory to each city or county in the preparation of its housing element.
(b)(1)At least 90 days prior to adoption of a revision of its housing element pursuant to subdivision (e) of Section 65588, or at least 60 days prior to the adoption of a subsequent amendment to this element, the planning agency shall submit a draft element revision or draft amendment to the department. The local government of the planning agency shall make the first draft revision of a housing element available for public comment for at least 30 days and, if any comments are received, the local government shall take at least 10 business days after the 30-day public comment period to consider and incorporate public comments into the draft revision prior to submitting it to the department. For any subsequent draft revision, the local government shall post the draft revision on its internet website and shall email a link to the draft revision to all individuals and organizations that have previously requested notices relating to the local governments housing element at least seven days before submitting the draft revision to the department.
(2)The planning agency staff shall collect and compile the public comments regarding the housing element received by the city, county, or city and county, county and provide these comments to each member of the legislative body before it adopts the housing element.
(3)The department shall review the draft and report its written findings to the planning agency within 90 days of its receipt of the first draft submittal for each housing element revision pursuant to subdivision (e) of Section 65588 or within 60 days of its receipt of a subsequent draft amendment or an adopted revision or adopted amendment to an element. The department shall not review the first draft submitted for each housing element revision pursuant to subdivision (e) of Section 65588 until the local government has made the draft available for public comment for at least 30 days and, if comments were received, has taken at least 10 business days to consider and incorporate public comments pursuant to paragraph (1).
(c)In the preparation of its findings, the department may consult with any public agency, group, or person. The department shall receive and consider any written comments from any public agency, group, or person regarding the draft or adopted element or amendment under review.
(d)In its written findings, the department shall determine whether the draft element or draft amendment substantially complies with this article.
(e)Prior to the adoption of its draft element or draft amendment, the legislative body shall consider the findings made by the department. If the departments findings are not available within the time limits set by this section, the legislative body may act without them.
(f)If the department finds that the draft element or draft amendment does not substantially comply with this article, the legislative body shall take one of the following actions:
(1)Change the draft element or draft amendment to substantially comply with this article.
(2)Adopt the draft element or draft amendment without changes. The legislative body shall include in its resolution of adoption written findings which explain the reasons the legislative body believes that the draft element or draft amendment substantially complies with this article despite the findings of the department.
(g)Promptly following the adoption of its element or amendment, the planning agency shall submit a copy to the department.
(h)The department shall, within 90 days, review adopted housing elements or amendments and report its findings to the planning agency.
(i)(1)(A)The department shall review any action or failure to act by the city, county, or city and county that it determines is inconsistent with an adopted housing element or Section 65583, including any failure to implement any program actions included in the housing element pursuant to Section 65583. The department shall issue written findings to the city, county, or city and county as to whether the action or failure to act substantially complies with this article, and provide a reasonable time no longer than 30 days for the city, county, or city and county to respond to the findings before taking any other action authorized by this section, including the action authorized by subparagraph (B).
(B)If the department finds that the action or failure to act by the city, county, or city and county does not substantially comply with this article, and if it has issued findings pursuant to this section that an amendment to the housing element substantially complies with this article, the department may revoke its findings until it determines that the city, county, or city and county has come into compliance with this article.
(2)The department may consult with any local government, public agency, group, or person, and shall receive and consider any written comments from any public agency, group, or person, regarding the action or failure to act by the city, county, or city and county described in paragraph (1), in determining whether the housing element substantially complies with this article.
(j)The department shall notify the city, county, or city and county and may notify the office of the Attorney General that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to this element, or any action or failure to act described in subdivision (i), does not substantially comply with this article or that any local government has taken an action in violation of the following:
(1)Housing Accountability Act (Section 65589.5).
(2)Section 65863.
(3)Chapter 4.3 (commencing with Section 65915).
(4)Section 65008.
(5)Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019, Sections 65941.1, 65943, and 66300).
(6)Article 2 (commencing with Section 66300.5) of Chapter 12.
(7)Section 8899.50.
(8)Section 65913.4.
(9)Article 11 (commencing with Section 65650).
(10)Article 12 (commencing with Section 65660).
(11)Section 65913.11.
(12)Section 65400.
(13)Section 65863.2.
(14)Chapter 4.1 (commencing with Section 65912.100).
(k)Commencing July 1, 2019, prior to the Attorney General bringing any suit for a violation of the provisions identified in subdivision (j) related to housing element compliance and seeking remedies available pursuant to this subdivision, the department shall offer the jurisdiction the opportunity for two meetings in person or via telephone to discuss the violation, and shall provide the jurisdiction written findings regarding the violation. This paragraph does not affect any action filed prior to the effective date of this section. The requirements set forth in this subdivision do not apply to any suits brought for a violation or violations of paragraphs (1) and (3) to (9), inclusive, of subdivision (j).
(l)In any action or special proceeding brought by the Attorney General relating to housing element compliance pursuant to a notice or referral under subdivision (j), the Attorney General may request, upon a finding of the court that the housing element does not substantially comply with the requirements of this article pursuant to this section, that the court issue an order or judgment directing the jurisdiction to bring its housing element into substantial compliance with the requirements of this article. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If a court determines that the housing element of the jurisdiction substantially complies with this article, it shall have the same force and effect, for purposes of eligibility for any financial assistance that requires a housing element in substantial compliance and for purposes of any incentives provided under Section 65589.9, as a determination by the department that the housing element substantially complies with this article.
(1)If the jurisdiction has not complied with the order or judgment after 12 months, the court shall conduct a status conference. Following the status conference, upon a determination that the jurisdiction failed to comply with the order or judgment compelling substantial compliance with the requirements of this article, the court shall impose fines on the jurisdiction, which shall be deposited into the Building Homes and Jobs Trust Fund. Any fine levied pursuant to this paragraph shall be in a minimum amount of ten thousand dollars ($10,000) per month, but shall not exceed one hundred thousand dollars ($100,000) per month, except as provided in paragraphs (2) and (3). In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(2)If the jurisdiction has not complied with the order or judgment after three months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Following the status conference, if the court finds that the fees imposed pursuant to paragraph (1) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of three. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(3)If the jurisdiction has not complied with the order or judgment six months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Upon a determination that the jurisdiction failed to comply with the order or judgment, the court may impose the following:
(A)If the court finds that the fees imposed pursuant to paragraphs (1) and (2) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of six. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(B)The court may order remedies available pursuant to Section 564 of the Code of Civil Procedure, under which the agent of the court may take all governmental actions necessary to bring the jurisdictions housing element into substantial compliance pursuant to this article in order to remedy identified deficiencies. The court shall determine whether the housing element of the jurisdiction substantially complies with this article and, once the court makes that determination, it shall have the same force and effect, for all purposes, as the departments determination that the housing element substantially complies with this article. An agent appointed pursuant to this paragraph shall have expertise in planning in California.
(4)This subdivision does not limit a courts discretion to apply any and all remedies in an action or special proceeding for a violation of any law identified in subdivision (j).
(m)In determining the application of the remedies available under subdivision (l), the court shall consider whether there are any mitigating circumstances delaying the jurisdiction from coming into compliance with state housing law. The court may consider whether a city, county, or city and county is making a good faith effort to come into substantial compliance or is facing substantial undue hardships.
(n)Nothing in this section shall limit the authority of the office of the Attorney General to bring a suit to enforce state law in an independent capacity. The office of the Attorney General may seek all remedies available under law including those set forth in this section.
(o)Notwithstanding Sections 11040 and 11042, if the Attorney General declines to represent the department in any action or special proceeding brought pursuant to a notice or referral under subdivision (j) the department may appoint or contract with other counsel for purposes of representing the department in the action or special proceeding.
(p)Notwithstanding any other provision of law, the statute of limitations set forth in subdivision (a) of Section 338 of the Code of Civil Procedure shall apply to any action or special proceeding brought by the Office of the Attorney General or pursuant to a notice or referral under subdivision (j), or by the department pursuant to subdivision (o).
SEC. 2.Section 65912.114 of the Government Code is amended to read:65912.114.(a)(1)If the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development.
(2)If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(A)Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B)Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(b)If the local government fails to provide the required documentation pursuant to subdivision (a), the development shall be deemed to satisfy the required objective planning standards.
(c)(1)For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(2)For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(d)The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a project as defined in Section 21065 of the Public Resources Code.
(e)Design review of the development may be conducted by the local governments planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(1)Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.
(2)Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.
(f)A development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915.
(g)The local government shall ensure that the project satisfies the requirements specified in Article 2 (commencing with Section 66300.5) of Chapter 12 regardless of whether the development is within or not within an affected city or within or not within an affected county.
(h)If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(i)A local government may exempt a parcel from this section before a development proponent submits a development application on a parcel pursuant to this article if the local government makes written findings establishing all of the following:
(1)The local government has identified one or more parcels that meet the criteria described in subdivisions (b) through (f) of Section 65912.111.
(2)(A)If a parcel identified in paragraph (1) would not otherwise be eligible for development pursuant to this chapter, the local government has permitted the parcel to be developed pursuant to the requirements of this chapter.
(B)If a parcel identified in paragraph (1) would otherwise be eligible for development pursuant to this chapter, the local government has permitted residential densities above the residential density required in subdivision (b) of Section 65912.113.
(3)The development of the parcel or parcels pursuant to paragraph (3) will result in all of the following:
(A)No net loss of the total potential residential density in the jurisdiction.
(B)No net loss of the potential residential density of housing affordable to lower income households in the jurisdiction.
(C)Affirmative furthering of fair housing.
(j)A local governments approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) of Section 65913.4.
(k)Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) of Section 65913.4.
(l)A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.
(m)A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) of Section 65913.4.
(n)A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) of Section 65913.4.
(o)A local government may adopt an ordinance to implement the provisions of this article. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
SEC. 3.Section 65912.124 of the Government Code is amended to read:65912.124.(a)(1)If the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development.
(2)If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(A)Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B)Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(b)If the local government fails to provide the required documentation pursuant to subdivision (a), the development shall be deemed to satisfy the required objective planning standards.
(c)(1)For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(2)For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(d)The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a project as defined in Section 21065 of the Public Resources Code.
(e)Design review of the development may be conducted by the local governments planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(1)Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.
(2)Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.
(f)A housing development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915, except that the project shall not use a concession to reduce a local government requirement for the provision of ground floor retail that is consistent with the allowance contained in paragraph (3) of subdivision (j) of Section 65912.123.
(g)The local government shall ensure that the project satisfies the requirements specified in Article 2 (commencing with Section 66300.5) of Chapter 12, regardless of whether the development is within or not within an affected city or within or not within an affected county.
(h)If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(i)A local government may exempt a parcel from this section before a development proponent submits a development application on a parcel pursuant to this article if the local government makes written findings establishing all of the following:
(1)The local government has identified a parcel or parcels that meet the criteria described in subdivisions (b) and (e) to (h), inclusive, of Section 65912.121.
(2)(A)If a parcel identified in paragraph (1) would not otherwise be eligible for development pursuant to this chapter, the local government has permitted the parcel to be developed pursuant to the requirements of this chapter.
(B)If a parcel identified in paragraph (1) would otherwise be eligible for development pursuant to this chapter, the local government has permitted residential densities above the residential density required in subdivision (b) of Section 65912.123 and heights required in subdivision (c) of Section 65912.123.
(3)The development of the parcel or parcels pursuant to paragraph (3) will result in all of the following:
(A)No net loss of the total potential residential density in the jurisdiction.
(B)No net loss of the potential residential density of housing affordable to lower income households in the jurisdiction.
(C)Affirmative furthering of fair housing.
(j)A local governments approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) of Section 65913.4.
(k)Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) of Section 65913.4.
(l)A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.
(m)A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) of Section 65913.4.
(n)A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) of Section 65913.4.
(o)A local government may adopt an ordinance to implement the provisions of this article. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
SEC. 4.Section 65940 of the Government Code, as amended by Section 4 of Chapter 161 of the Statutes of 2021, is amended to read:65940.(a)(1)Each public agency shall compile one or more lists that shall specify in detail the information that will be required from any applicant for a development project. Each public agency shall revise the list of information required from an applicant to include a certification of compliance with Section 65962.5, and the statement of application required by Section 65943. Copies of the information, including the statement of application required by Section 65943, shall be made available to all applicants for development projects and to any person who requests the information.
(2)An affected city or affected county, as defined in Section 66300, shall include the information necessary to determine compliance with the requirements of Article 2 (commencing with Section 66300.5) of Chapter 12 in the list compiled pursuant to paragraph (1).
(b)The list of information required from any applicant shall include, where applicable, identification of whether the proposed project is located within 1,000 feet of a military installation, beneath a low-level flight path or within special use airspace as defined in Section 21098 of the Public Resources Code, and within an urbanized area as defined in Section 65944.
(c)(1)A public agency that is not beneath a low-level flight path or not within special use airspace and does not contain a military installation is not required to change its list of information required from applicants to comply with subdivision (b).
(2)A public agency that is entirely urbanized, as defined in subdivision (e) of Section 65944, with the exception of a jurisdiction that contains a military installation, is not required to change its list of information required from applicants to comply with subdivision (b).
(d)For purposes of this section, development project includes a housing development project as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(e)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 5.The heading of Article 1 (commencing with Section 66300) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:1.Housing Crisis Act of 2019SEC. 6.Section 66300 of the Government Code is amended to read:66300.(a)As used in this article, the following definitions shall apply:
(1)(A)Except as otherwise provided in subparagraph (B), affected city means a city, including a charter city, that the Department of Housing and Community Development determines, pursuant to subdivision (d), is in an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B)Notwithstanding subparagraph (A), affected city does not include any city that has a population of 5,000 or less and is not located within an urbanized area, as designated by the United States Census Bureau.
(2)Affected county means a census-designated place, based on the 2013-2017 American Community Survey 5-year Estimates, that is wholly located within the boundaries of an urbanized area, as designated by the United States Census Bureau.
(3)Notwithstanding any other law, affected county and affected city includes the electorate of an affected county or city exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the affected county or city.
(4)Department means the Department of Housing and Community Development.
(5)Development policy, standard, or condition means any of the following:
(A)A provision of, or amendment to, a general plan.
(B)A provision of, or amendment to, a specific plan.
(C)A provision of, or amendment to, a zoning ordinance.
(D)A subdivision standard or criterion.
(6)Housing development project has the same meaning as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(7)Objective design standard means a design standard that involves no personal or subjective judgment by a public official and is uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal of an application.
(b)(1)Notwithstanding any other law except as provided in subdivision (h), with respect to land where housing is an allowable use, an affected county or an affected city shall not enact a development policy, standard, or condition that would have any of the following effects:
(A)Changing the general plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use or reducing the intensity of land use within an existing general plan land use designation, specific plan land use designation, or zoning district in effect at the time of the proposed change, below what was allowed under the land use designation or zoning ordinances of the affected county or affected city, as applicable, as in effect on January 1, 2018, except as otherwise provided in clause (ii) of subparagraph (B) or subdivision (h). For purposes of this subparagraph, reducing the intensity of land use includes, but is not limited to, reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, new or increased setback requirements, minimum frontage requirements, or maximum lot coverage limitations, or any other action that would individually or cumulatively reduce the sites residential development capacity.
(B)(i)Imposing a moratorium or similar restriction or limitation on housing development, including mixed-use development, within all or a portion of the jurisdiction of the affected county or city, other than to specifically protect against an imminent threat to the health and safety of persons residing in, or within the immediate vicinity of, the area subject to the moratorium or for projects specifically identified as existing restricted affordable housing.
(ii)The affected county or affected city, as applicable, shall not enforce a zoning ordinance imposing a moratorium or other similar restriction on or limitation of housing development until it has submitted the ordinance to, and received approval from, the department. The department shall approve a zoning ordinance submitted to it pursuant to this subparagraph only if it determines that the zoning ordinance satisfies the requirements of this subparagraph. If the department denies approval of a zoning ordinance imposing a moratorium or similar restriction or limitation on housing development as inconsistent with this subparagraph, that ordinance shall be deemed void.
(C)Imposing or enforcing design standards established on or after January 1, 2020, that are not objective design standards.
(D)Except as provided in subparagraph (E), establishing or implementing any provision that:
(i)Limits the number of land use approvals or permits necessary for the approval and construction of housing that will be issued or allocated within all or a portion of the affected county or affected city, as applicable.
(ii)Acts as a cap on the number of housing units that can be approved or constructed either annually or for some other time period.
(iii)Limits the population of the affected county or affected city, as applicable.
(E)Notwithstanding subparagraph (D), an affected county or affected city may enforce a limit on the number of approvals or permits or a cap on the number of housing units that can be approved or constructed if the provision of law imposing the limit was approved by voters prior to January 1, 2005, and the affected county or affected city is located in a predominantly agricultural county. For the purposes of this subparagraph, predominantly agricultural county means a county that meets both of the following, as determined by the most recent California Farmland Conversion Report produced by the Department of Conservation:
(i)Has more than 550,000 acres of agricultural land.
(ii)At least one-half of the county area is agricultural land.
(2)Any development policy, standard, or condition enacted on or after the effective date of this section that does not comply with this section shall be deemed void.
(c)Notwithstanding subdivisions (b) and (e), an affected county or affected city may enact a development policy, standard, or condition to prohibit the commercial use of land that is designated for residential use, including, but not limited to, short-term occupancy of a residence, consistent with the authority conferred on the county or city by other law.
(d)The Department of Housing and Community Development shall determine those cities and counties in this state that are affected cities and affected counties, in accordance with subdivision (a) by June 30, 2020. The department may update the list of affected cities and affected counties once on or after January 1, 2021, and once on or after January 1, 2025, to account for changes in urbanized areas or urban clusters due to new data obtained from the 2020 census. The departments determination shall remain valid until January 1, 2030.
(e)(1)Except as provided in paragraphs (3) and (4) and subdivisions (g) and (h), this section shall prevail over any conflicting provision of this title or other law regulating housing development in this state to the extent that this section more fully advances the intent specified in paragraph (2).
(2)It is the intent of the Legislature that this section be broadly construed so as to maximize the development of housing within this state. Any exception to the requirements of this section, including an exception for the health and safety of occupants of a housing development project, shall be construed narrowly.
(3)This section shall not be construed as prohibiting the adoption or amendment of a development policy, standard, or condition in a manner that:
(A)Allows greater density.
(B)Facilitates the development of housing.
(C)Reduces the costs to a housing development project.
(D)Imposes or implements mitigation measures as necessary to comply with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(4)This section shall not apply to a housing development project located within a very high fire hazard severity zone. For purposes of this paragraph, very high fire hazard severity zone has the same meaning as provided in Section 51177.
(f)This section shall not be construed to void a height limit, urban growth boundary, or urban limit established by the electorate of an affected county or an affected city, provided that the height limit, urban growth boundary, or urban limit complies with subparagraph (A) of paragraph (1) of subdivision (b).
(g)(1)Nothing in this section supersedes, limits, or otherwise modifies the requirements of, or the standards of review pursuant to, Division 13 (commencing with Section 21000) of the Public Resources Code.
(2)Nothing in this section supersedes, limits, or otherwise modifies the requirements of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). For a housing development project proposed within the coastal zone, nothing in this section shall be construed to prohibit an affected county or an affected city from enacting a development policy, standard, or condition necessary to implement or amend a certified local coastal program consistent with the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code).
(h)(1)This section does not prohibit an affected county or an affected city, including the local electorate acting through the initiative process, from changing a land use designation or zoning ordinance to a less intensive use, or reducing the intensity of land use, if the city or county concurrently changes the development standards, policies, and conditions applicable to other parcels within the jurisdiction to ensure that there is no net loss in residential capacity.
(2)(A)For purposes of this subdivision, concurrently means the action is approved at the same meeting of the legislative body.
(B)Notwithstanding subparagraph (A), if the action that would result in a net loss of residential capacity is requested by an applicant for a housing development project, concurrently means within 180 days.
(C)Notwithstanding subparagraph (A), in the case of an initiative measure, concurrently means the action is included in the initiative in a manner that ensures the added residential capacity is effective at the same time as the reduction in residential capacity.
(3)(A)(i)The City of San Jose may proactively change a zoning ordinance to a more intensive use and subsequently use the additional capacity to change a zoning ordinance applicable to an eligible parcel to a less intensive use as long as there is no net loss in residential capacity.
(ii)A change to a zoning ordinance to a less intensive use under this paragraph shall occur within one year of the change to the zoning ordinance to a more intensive use.
(iii)For purposes of this paragraph, eligible parcel means a parcel that meets all of the following criteria:
(I)It is zoned for residential uses.
(II)It does not have a multifamily housing general plan designation.
(III)Its zoning is inconsistent with the general plan of the city in effect on January 1, 2018.
(B)A change to a zoning ordinance to a less intensive use under this paragraph shall not be effective until the City of San Jose establishes zoning districts that implement mixed-use neighborhood, urban residential, transit residential, and urban village general plan land use designations.
(C)The City of San Jose shall report each zoning ordinance amendment establishing a less intensive use pursuant to this paragraph in the following ways:
(i)In its annual report submitted pursuant to paragraph (2) of subdivision (a) of Section 65400 and submit the annual report to the relevant policy committees of the Legislature each year that the City of San Jose adopts a zoning ordinance amendment pursuant to this paragraph.
(ii)Electronically on an internet website accessible to the public by the time the zoning ordinance amendment is in effect.
(D)This paragraph shall become inoperative upon the date that the City of San Joses housing element update for the sixth cycle is due pursuant to Section 65588.
(4)This section does not prohibit an affected county or an affected city from changing a land use designation or zoning ordinance to a less intensive use on a site that is a mobilehome park, as defined in Section 18214 of the Health and Safety Code, as of the effective date of this section, and the no net loss requirement in paragraph (1) shall not apply.
(i)Notwithstanding subdivisions (b) and (e), this section does not prohibit an affected city or an affected county from enacting a development policy, standard, or condition that is intended to preserve or facilitate the production of housing for lower income households, as defined in Section 50079.5 of the Health and Safety Code, or housing types that traditionally serve lower income households, including mobilehome parks, single-room occupancy units, or units subject to any form of rent or price control through a public entitys valid exercise of its police power.
(j)The amendments to subparagraph (A) of paragraph (1) of subdivision (b), and to paragraph (1) of subdivision (h) made by the act adding this subdivision do not constitute a change in, but are declaratory of, existing law.
SEC. 7.Article 2 (commencing with Section 66300.5) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:2.Demolition of Housing Units66300.5.For purposes of this article:
(a)(1)(A)Except as otherwise provided in subparagraph (B), affected city means a city, including a charter city, that the Department of Housing and Community Development determines, pursuant to subdivision (d), is in an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B)Notwithstanding subparagraph (A), affected city does not include any city that has a population of 5,000 or less and is not located within an urbanized area, as designated by the United States Census Bureau.
(2)Affected county means a census-designated place, based on the 2013-2017 American Community Survey 5-year Estimates, that is wholly located within the boundaries of an urbanized area, as designated by the United States Census Bureau.
(3)Notwithstanding any other law, affected county and affected city includes the electorate of an affected county or city exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the affected county or city.
(b)Affordable housing cost has the same meaning as defined in Section 50052.5 of the Health and Safety Code.
(c)Affordable rent has the same meaning as defined in Section 50053 of the Health and Safety Code.
(d)Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.
(e)Housing development project has the same meaning as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(f)Persons and families of low or moderate income has the same meaning as defined in Section 50093 of the Health and Safety Code.
(g)Lower income households has the same meaning as defined in Section 50079.5 of the Health and Safety Code.
(h)Protected units means any of the following:
(1)Residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years.
(2)Residential dwelling units that are or were subject to any form of rent or price control through a public entitys valid exercise of its police power within the past five years.
(3)Residential dwelling units that are or were rented by lower or very low income households within the past five years.
(4)Residential dwelling units that were withdrawn from rent or lease in accordance with Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 within the past 10 years.
(i)(1)Replace shall have the same meaning as provided in subparagraphs (B) and (C) of paragraph (3) of subdivision (c) of Section 65915.
(2)Notwithstanding paragraph (1), for purposes of a development project that consists of a single residential unit on a site with a single protected unit, replace shall mean that the protected unit is replaced with a unit of any size at any income level.
(j)Very low income households has the same meaning as defined in Section 50105 of the Health and Safety Code.
66300.6.(a)Notwithstanding any other law and notwithstanding local density requirements, an affected city or an affected county shall not approve a housing development project that will require the demolition of one or more residential dwelling units unless the project will create at least as many residential dwelling units as will be demolished.
(b)Notwithstanding any other law and notwithstanding local density requirements, an affected city or an affected county shall not approve a development project that will require the demolition of occupied or vacant protected units, or that is located on a site where protected units were demolished in the previous five years, unless all of the following requirements are satisfied:
(1)(A)The project will replace all existing or demolished protected units. units and protected units demolished on or after January 1, 2020.
(B)Any protected units replaced pursuant to this paragraph shall be considered in determining whether the housing development project satisfies the requirements of Section 65915 or a locally adopted requirement that requires, as a condition of the development of residential rental units, that the project provide a certain percentage of residential rental units affordable to, and occupied by, households with incomes that do not exceed the limits for moderate-income, lower income, very low income, or extremely low income households, as specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code.
(2)(A)If the project is a housing development project, it will include at least as many residential dwelling units as the greatest number of residential dwelling units that existed on the project site within the last five years.
(B)If the project is not a housing development project, the proponent will ensure that the required replacement housing is developed prior to or concurrently with the development project.
(3)(A)Any existing occupants will be allowed to occupy their units until six months before the start of construction activities. The project proponent shall provide existing occupants with written notice of the planned demolition, the date they must vacate, and their rights under this section. Notice shall be provided at least six months in advance of the date that existing occupants must vacate.
(B)Any existing occupants that are required to leave their units shall be allowed to return at their prior rental rate if the demolition does not proceed and the property is returned to the rental market.
(4)The developer agrees to provide both of the following to the existing occupants of any protected units that are lower income households:
(A)Relocation benefits that are equivalent to the relocation benefits required to be paid by public entities pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 and any implementing regulations.
(B)A right of first refusal for a comparable unit available in the new housing development, or in the required replacement units associated with a new development that is not a housing development, affordable to the household at an affordable rent or an affordable housing cost. This subparagraph shall not apply to any of the following:
(i)A development project that consists of a single residential unit located on a site where a single protected unit is being demolished.
(ii)(I)Units in a housing development in which 100 percent of the units, exclusive of a managers unit or units, are reserved for lower income households.
(II)Notwithstanding subclause (I), this subparagraph shall apply to protected units occupied by an occupant who qualifies for residence in the new development and for whom providing a comparable unit would not be precluded due to unit size limitations or other requirements of one or more funding source of the housing development.
(C)(i)For purposes of complying with subparagraph (B), if one or more single-family homes that qualify as protected units are being replaced in a development project that consists of two or more units, comparable unit means either of the following, as applicable:
(I)A unit containing the same number of bedrooms if the single-family home contains three or fewer bedrooms.
(II)A unit containing three bedrooms if the single-family home contains four or more bedrooms.
(ii)For purposes of this subparagraph, a comparable unit is not required to have the same or similar square footage or the same number of total rooms.
(D)This subparagraph does not apply to an occupant of a short-term rental that is rented for a period of fewer than 30 days.
(5)This subdivision does not confer additional legal protections upon an unlawful occupant of a protected unit.
(c)This section shall not supersede any objective provision of a locally adopted ordinance that places restrictions on the demolition of residential dwelling units or the subdivision of residential rental units that are more protective of lower income households, requires the provision of a greater number of units affordable to lower income households, or that requires greater relocation assistance to displaced households.
(d)This section shall not apply to a housing development project for which an application was submitted after January 1, 2019, but prior to January 1, 2020, in a jurisdiction with a population of under 31,000 as of the 2020 United States Census that has a rent or price control ordinance.
SEC. 8.The heading of Article 3 (commencing with Section 66301) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:3.Duration of ChapterSEC. 9.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
(a)In the preparation of its housing element, each city and county shall consider the guidelines adopted by the department pursuant to Section 50459 of the Health and Safety Code. Those guidelines shall be advisory to each city or county in the preparation of its housing element.
(b)(1)At least 90 days prior to adoption of a revision of its housing element pursuant to subdivision (e) of Section 65588, or at least 60 days prior to the adoption of a subsequent amendment to this element, the planning agency shall submit a draft element revision or draft amendment to the department. The local government of the planning agency shall make the first draft revision of a housing element available for public comment for at least 30 days and, if any comments are received, the local government shall take at least 10 business days after the 30-day public comment period to consider and incorporate public comments into the draft revision prior to submitting it to the department. For any subsequent draft revision, the local government shall post the draft revision on its internet website and shall email a link to the draft revision to all individuals and organizations that have previously requested notices relating to the local governments housing element at least seven days before submitting the draft revision to the department.
(2)The planning agency staff shall collect and compile the public comments regarding the housing element received by the city, county, or city and county, and provide these comments to each member of the legislative body before it adopts the housing element.
(3)The department shall review the draft and report its written findings to the planning agency within 90 days of its receipt of the first draft submittal for each housing element revision pursuant to subdivision (e) of Section 65588 or within 60 days of its receipt of a subsequent draft amendment or an adopted revision or adopted amendment to an element. The department shall not review the first draft submitted for each housing element revision pursuant to subdivision (e) of Section 65588 until the local government has made the draft available for public comment for at least 30 days and, if comments were received, has taken at least 10 business days to consider and incorporate public comments pursuant to paragraph (1).
(c)In the preparation of its findings, the department may consult with any public agency, group, or person. The department shall receive and consider any written comments from any public agency, group, or person regarding the draft or adopted element or amendment under review.
(d)In its written findings, the department shall determine whether the draft element or draft amendment substantially complies with this article.
(e)Prior to the adoption of its draft element or draft amendment, the legislative body shall consider the findings made by the department. If the departments findings are not available within the time limits set by this section, the legislative body may act without them.
(f)If the department finds that the draft element or draft amendment does not substantially comply with this article, the legislative body shall take one of the following actions:
(1)Change the draft element or draft amendment to substantially comply with this article.
(2)Adopt the draft element or draft amendment without changes. The legislative body shall include in its resolution of adoption written findings which explain the reasons the legislative body believes that the draft element or draft amendment substantially complies with this article despite the findings of the department.
(g)Promptly following the adoption of its element or amendment, the planning agency shall submit a copy to the department.
(h)The department shall, within 90 days, review adopted housing elements or amendments and report its findings to the planning agency.
(i)(1)(A)The department shall review any action or failure to act by the city, county, or city and county that it determines is inconsistent with an adopted housing element or Section 65583, including any failure to implement any program actions included in the housing element pursuant to Section 65583. The department shall issue written findings to the city, county, or city and county as to whether the action or failure to act substantially complies with this article, and provide a reasonable time no longer than 30 days for the city, county, or city and county to respond to the findings before taking any other action authorized by this section, including the action authorized by subparagraph (B).
(B)If the department finds that the action or failure to act by the city, county, or city and county does not substantially comply with this article, and if it has issued findings pursuant to this section that an amendment to the housing element substantially complies with this article, the department may revoke its findings until it determines that the city, county, or city and county has come into compliance with this article.
(2)The department may consult with any local government, public agency, group, or person, and shall receive and consider any written comments from any public agency, group, or person, regarding the action or failure to act by the city, county, or city and county described in paragraph (1), in determining whether the housing element substantially complies with this article.
(j)The department shall notify the city, county, or city and county and may notify the office of the Attorney General that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to this element, or any action or failure to act described in subdivision (i), does not substantially comply with this article or that any local government has taken an action in violation of the following:
(1)Housing Accountability Act (Section 65589.5).
(2)Section 65863.
(3)Chapter 4.3 (commencing with Section 65915).
(4)Section 65008.
(5)Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019, Sections 65941.1, 65943, and 66300).
(6)Chapter 13 Article 2 (commencing with Section 66310). 66300.5) of Chapter 12.
(7)Section 8899.50.
(8)Section 65913.4.
(9)Article 11 (commencing with Section 65650).
(10)Article 12 (commencing with Section 65660).
(11)Section 65913.11.
(12)Section 65400.
(13)Section 65863.2.
(14)Chapter 4.1 (commencing with Section 65912.100).
(k)Commencing July 1, 2019, prior to the Attorney General bringing any suit for a violation of the provisions identified in subdivision (j) related to housing element compliance and seeking remedies available pursuant to this subdivision, the department shall offer the jurisdiction the opportunity for two meetings in person or via telephone to discuss the violation, and shall provide the jurisdiction written findings regarding the violation. This paragraph does not affect any action filed prior to the effective date of this section. The requirements set forth in this subdivision do not apply to any suits brought for a violation or violations of paragraphs (1) and (3) to (9), inclusive, of subdivision (j).
(l)In any action or special proceeding brought by the Attorney General relating to housing element compliance pursuant to a notice or referral under subdivision (j), the Attorney General may request, upon a finding of the court that the housing element does not substantially comply with the requirements of this article pursuant to this section, that the court issue an order or judgment directing the jurisdiction to bring its housing element into substantial compliance with the requirements of this article. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If a court determines that the housing element of the jurisdiction substantially complies with this article, it shall have the same force and effect, for purposes of eligibility for any financial assistance that requires a housing element in substantial compliance and for purposes of any incentives provided under Section 65589.9, as a determination by the department that the housing element substantially complies with this article.
(1)If the jurisdiction has not complied with the order or judgment after 12 months, the court shall conduct a status conference. Following the status conference, upon a determination that the jurisdiction failed to comply with the order or judgment compelling substantial compliance with the requirements of this article, the court shall impose fines on the jurisdiction, which shall be deposited into the Building Homes and Jobs Trust Fund. Any fine levied pursuant to this paragraph shall be in a minimum amount of ten thousand dollars ($10,000) per month, but shall not exceed one hundred thousand dollars ($100,000) per month, except as provided in paragraphs (2) and (3). In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(2)If the jurisdiction has not complied with the order or judgment after three months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Following the status conference, if the court finds that the fees imposed pursuant to paragraph (1) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of three. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(3)If the jurisdiction has not complied with the order or judgment six months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Upon a determination that the jurisdiction failed to comply with the order or judgment, the court may impose the following:
(A)If the court finds that the fees imposed pursuant to paragraphs (1) and (2) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of six. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(B)The court may order remedies available pursuant to Section 564 of the Code of Civil Procedure, under which the agent of the court may take all governmental actions necessary to bring the jurisdictions housing element into substantial compliance pursuant to this article in order to remedy identified deficiencies. The court shall determine whether the housing element of the jurisdiction substantially complies with this article and, once the court makes that determination, it shall have the same force and effect, for all purposes, as the departments determination that the housing element substantially complies with this article. An agent appointed pursuant to this paragraph shall have expertise in planning in California.
(4)This subdivision does not limit a courts discretion to apply any and all remedies in an action or special proceeding for a violation of any law identified in subdivision (j).
(m)In determining the application of the remedies available under subdivision (l), the court shall consider whether there are any mitigating circumstances delaying the jurisdiction from coming into compliance with state housing law. The court may consider whether a city, county, or city and county is making a good faith effort to come into substantial compliance or is facing substantial undue hardships.
(n)Nothing in this section shall limit the authority of the office of the Attorney General to bring a suit to enforce state law in an independent capacity. The office of the Attorney General may seek all remedies available under law including those set forth in this section.
(o)Notwithstanding Sections 11040 and 11042, if the Attorney General declines to represent the department in any action or special proceeding brought pursuant to a notice or referral under subdivision (j) the department may appoint or contract with other counsel for purposes of representing the department in the action or special proceeding.
(p)Notwithstanding any other provision of law, the statute of limitations set forth in subdivision (a) of Section 338 of the Code of Civil Procedure shall apply to any action or special proceeding brought by the Office of the Attorney General or pursuant to a notice or referral under subdivision (j), or by the department pursuant to subdivision (o).
SEC. 2.Section 65912.114 of the Government Code is amended to read:65912.114.(a)(1)If the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development.
(2)If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(A)Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B)Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(b)If the local government fails to provide the required documentation pursuant to subdivision (a), the development shall be deemed to satisfy the required objective planning standards.
(c)(1)For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(2)For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(d)The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a project as defined in Section 21065 of the Public Resources Code.
(e)Design review of the development may be conducted by the local governments planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(1)Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.
(2)Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.
(f)A development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915.
(g)The local government shall ensure that the project satisfies the requirements specified in Chapter 13 Article 2 (commencing with Section 66310) 66300.5) of Chapter 12 regardless of whether the development is within or not within an affected city or within or not within an affected county.
(h)If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(i)A local government may exempt a parcel from this section before a development proponent submits a development application on a parcel pursuant to this article if the local government makes written findings establishing all of the following:
(1)The local government has identified one or more parcels that meet the criteria described in subdivisions (b) through (f) of Section 65912.111.
(2)(A)If a parcel identified in paragraph (1) would not otherwise be eligible for development pursuant to this chapter, the local government has permitted the parcel to be developed pursuant to the requirements of this chapter.
(B)If a parcel identified in paragraph (1) would otherwise be eligible for development pursuant to this chapter, the local government has permitted residential densities above the residential density required in subdivision (b) of Section 65912.113.
(3)The development of the parcel or parcels pursuant to paragraph (3) will result in all of the following:
(A)No net loss of the total potential residential density in the jurisdiction.
(B)No net loss of the potential residential density of housing affordable to lower income households in the jurisdiction.
(C)Affirmative furthering of fair housing.
(j)A local governments approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) of Section 65913.4.
(k)Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) of Section 65913.4.
(l)A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.
(m)A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) of Section 65913.4.
(n)A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) of Section 65913.4.
(o)A local government may adopt an ordinance to implement the provisions of this article. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
SEC. 3.Section 65912.124 of the Government Code is amended to read:65912.124.(a)(1)If the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development.
(2)If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(A)Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B)Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(b)If the local government fails to provide the required documentation pursuant to subdivision (a), the development shall be deemed to satisfy the required objective planning standards.
(c)(1)For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(2)For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(d)The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a project as defined in Section 21065 of the Public Resources Code.
(e)Design review of the development may be conducted by the local governments planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(1)Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.
(2)Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.
(f)A housing development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915, except that the project shall not use a concession to reduce a local government requirement for the provision of ground floor retail that is consistent with the allowance contained in paragraph (3) of subdivision (j) of Section 65912.123.
(g)The local government shall ensure that the project satisfies the requirements specified in Chapter 13 Article 2 (commencing with Section 66310), 66300.5) of Chapter 12, regardless of whether the development is within or not within an affected city or within or not within an affected county.
(h)If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(i)A local government may exempt a parcel from this section before a development proponent submits a development application on a parcel pursuant to this article if the local government makes written findings establishing all of the following:
(1)The local government has identified a parcel or parcels that meet the criteria described in subdivisions (b) and (e) to (h), inclusive, of Section 65912.121.
(2)(A)If a parcel identified in paragraph (1) would not otherwise be eligible for development pursuant to this chapter, the local government has permitted the parcel to be developed pursuant to the requirements of this chapter.
(B)If a parcel identified in paragraph (1) would otherwise be eligible for development pursuant to this chapter, the local government has permitted residential densities above the residential density required in subdivision (b) of Section 65912.123 and heights required in subdivision (c) of Section 65912.123.
(3)The development of the parcel or parcels pursuant to paragraph (3) will result in all of the following:
(A)No net loss of the total potential residential density in the jurisdiction.
(B)No net loss of the potential residential density of housing affordable to lower income households in the jurisdiction.
(C)Affirmative furthering of fair housing.
(j)A local governments approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) of Section 65913.4.
(k)Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) of Section 65913.4.
(l)A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.
(m)A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) of Section 65913.4.
(n)A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) of Section 65913.4.
(o)A local government may adopt an ordinance to implement the provisions of this article. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
SEC. 4.Section 65940 of the Government Code, as amended by Section 4 of Chapter 161 of the Statutes of 2021, is amended to read:65940.(a)(1)Each public agency shall compile one or more lists that shall specify in detail the information that will be required from any applicant for a development project. Each public agency shall revise the list of information required from an applicant to include a certification of compliance with Section 65962.5, and the statement of application required by Section 65943. Copies of the information, including the statement of application required by Section 65943, shall be made available to all applicants for development projects and to any person who requests the information.
(2)An affected city or affected county, as defined in Section 66300, shall include the information necessary to determine compliance with the requirements of Chapter 13 Article 2 (commencing with Section 66310) 66300.5) of Chapter 12 in the list compiled pursuant to paragraph (1).
(b)The list of information required from any applicant shall include, where applicable, identification of whether the proposed project is located within 1,000 feet of a military installation, beneath a low-level flight path or within special use airspace as defined in Section 21098 of the Public Resources Code, and within an urbanized area as defined in Section 65944.
(c)(1)A public agency that is not beneath a low-level flight path or not within special use airspace and does not contain a military installation is not required to change its list of information required from applicants to comply with subdivision (b).
(2)A public agency that is entirely urbanized, as defined in subdivision (e) of Section 65944, with the exception of a jurisdiction that contains a military installation, is not required to change its list of information required from applicants to comply with subdivision (b).
(d)For purposes of this section, development project includes a housing development project as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(e)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 5.The heading of Article 1 (commencing with Section 66300) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:1.Housing Crisis Act of 2019SEC. 5.SEC. 6.Section 66300 of the Government Code is amended to read:66300.(a)As used in this chapter, article, the following definitions shall apply:
(1)(A)Except as otherwise provided in subparagraph (B), affected city means a city, including a charter city, that the Department of Housing and Community Development determines, pursuant to subdivision (d), is in an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B)Notwithstanding subparagraph (A), affected city does not include any city that has a population of 5,000 or less and is not located within an urbanized area, as designated by the United States Census Bureau.
(2)Affected county means a census-designated place, based on the 2013-2017 American Community Survey 5-year Estimates, that is wholly located within the boundaries of an urbanized area, as designated by the United States Census Bureau.
(3)Notwithstanding any other law, affected county and affected city includes the electorate of an affected county or city exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the affected county or city.
(4)Department means the Department of Housing and Community Development.
(5)Development policy, standard, or condition means any of the following:
(A)A provision of, or amendment to, a general plan.
(B)A provision of, or amendment to, a specific plan.
(C)A provision of, or amendment to, a zoning ordinance.
(D)A subdivision standard or criterion.
(6)Housing development project has the same meaning as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(7)Objective design standard means a design standard that involves no personal or subjective judgment by a public official and is uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal of an application.
(b)(1)Notwithstanding any other law except as provided in subdivision (h), with respect to land where housing is an allowable use, an affected county or an affected city shall not enact a development policy, standard, or condition that would have any of the following effects:
(A)Changing the general plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use or reducing the intensity of land use within an existing general plan land use designation, specific plan land use designation, or zoning district in effect at the time of the proposed change, below what was allowed under the land use designation or zoning ordinances of the affected county or affected city, as applicable, as in effect on January 1, 2018, except as otherwise provided in clause (ii) of subparagraph (B) or subdivision (h). For purposes of this subparagraph, reducing the intensity of land use includes, but is not limited to, reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, new or increased setback requirements, minimum frontage requirements, or maximum lot coverage limitations, or any other action that would individually or cumulatively reduce the sites residential development capacity.
(B)(i)Imposing a moratorium or similar restriction or limitation on housing development, including mixed-use development, within all or a portion of the jurisdiction of the affected county or city, other than to specifically protect against an imminent threat to the health and safety of persons residing in, or within the immediate vicinity of, the area subject to the moratorium or for projects specifically identified as existing restricted affordable housing.
(ii)The affected county or affected city, as applicable, shall not enforce a zoning ordinance imposing a moratorium or other similar restriction on or limitation of housing development until it has submitted the ordinance to, and received approval from, the department. The department shall approve a zoning ordinance submitted to it pursuant to this subparagraph only if it determines that the zoning ordinance satisfies the requirements of this subparagraph. If the department denies approval of a zoning ordinance imposing a moratorium or similar restriction or limitation on housing development as inconsistent with this subparagraph, that ordinance shall be deemed void.
(C)Imposing or enforcing design standards established on or after January 1, 2020, that are not objective design standards.
(D)Except as provided in subparagraph (E), establishing or implementing any provision that:
(i)Limits the number of land use approvals or permits necessary for the approval and construction of housing that will be issued or allocated within all or a portion of the affected county or affected city, as applicable.
(ii)Acts as a cap on the number of housing units that can be approved or constructed either annually or for some other time period.
(iii)Limits the population of the affected county or affected city, as applicable.
(E)Notwithstanding subparagraph (D), an affected county or affected city may enforce a limit on the number of approvals or permits or a cap on the number of housing units that can be approved or constructed if the provision of law imposing the limit was approved by voters prior to January 1, 2005, and the affected county or affected city is located in a predominantly agricultural county. For the purposes of this subparagraph, predominantly agricultural county means a county that meets both of the following, as determined by the most recent California Farmland Conversion Report produced by the Department of Conservation:
(i)Has more than 550,000 acres of agricultural land.
(ii)At least one-half of the county area is agricultural land.
(2)Any development policy, standard, or condition enacted on or after the effective date of this section that does not comply with this section shall be deemed void.
(c)Notwithstanding subdivisions (b) and (e), an affected county or affected city may enact a development policy, standard, or condition to prohibit the commercial use of land that is designated for residential use, including, but not limited to, short-term occupancy of a residence, consistent with the authority conferred on the county or city by other law.
(d)The Department of Housing and Community Development shall determine those cities and counties in this state that are affected cities and affected counties, in accordance with subdivision (a) by June 30, 2020. The department may update the list of affected cities and affected counties once on or after January 1, 2021, and once on or after January 1, 2025, to account for changes in urbanized areas or urban clusters due to new data obtained from the 2020 census. The departments determination shall remain valid until January 1, 2030.
(e)(1)Except as provided in paragraphs (3) and (4) and subdivisions (g) and (h), this section shall prevail over any conflicting provision of this title or other law regulating housing development in this state to the extent that this section more fully advances the intent specified in paragraph (2).
(2)It is the intent of the Legislature that this section be broadly construed so as to maximize the development of housing within this state. Any exception to the requirements of this section, including an exception for the health and safety of occupants of a housing development project, shall be construed narrowly.
(3)This section shall not be construed as prohibiting the adoption or amendment of a development policy, standard, or condition in a manner that:
(A)Allows greater density.
(B)Facilitates the development of housing.
(C)Reduces the costs to a housing development project.
(D)Imposes or implements mitigation measures as necessary to comply with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(4)This section shall not apply to a housing development project located within a very high fire hazard severity zone. For purposes of this paragraph, very high fire hazard severity zone has the same meaning as provided in Section 51177.
(f)This section shall not be construed to void a height limit, urban growth boundary, or urban limit established by the electorate of an affected county or an affected city, provided that the height limit, urban growth boundary, or urban limit complies with subparagraph (A) of paragraph (1) of subdivision (b).
(g)(1)Nothing in this section supersedes, limits, or otherwise modifies the requirements of, or the standards of review pursuant to, Division 13 (commencing with Section 21000) of the Public Resources Code.
(2)Nothing in this section supersedes, limits, or otherwise modifies the requirements of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). For a housing development project proposed within the coastal zone, nothing in this section shall be construed to prohibit an affected county or an affected city from enacting a development policy, standard, or condition necessary to implement or amend a certified local coastal program consistent with the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code).
(h)(1)This section does not prohibit an affected county or an affected city, including the local electorate acting through the initiative process, from changing a land use designation or zoning ordinance to a less intensive use, or reducing the intensity of land use, if the city or county concurrently changes the development standards, policies, and conditions applicable to other parcels within the jurisdiction to ensure that there is no net loss in residential capacity.
(2)(A)For purposes of this subdivision, concurrently means the action is approved at the same meeting of the legislative body.
(B)Notwithstanding subparagraph (A), if the action that would result in a net loss of residential capacity is requested by an applicant for a housing development project, concurrently means within 180 days.
(C)Notwithstanding subparagraph (A), in the case of an initiative measure, concurrently means the action is included in the initiative in a manner that ensures the added residential capacity is effective at the same time as the reduction in residential capacity.
(3)(A)(i)The City of San Jose may proactively change a zoning ordinance to a more intensive use and subsequently use the additional capacity to change a zoning ordinance applicable to an eligible parcel to a less intensive use as long as there is no net loss in residential capacity.
(ii)A change to a zoning ordinance to a less intensive use under this paragraph shall occur within one year of the change to the zoning ordinance to a more intensive use.
(iii)For purposes of this paragraph, eligible parcel means a parcel that meets all of the following criteria:
(I)It is zoned for residential uses.
(II)It does not have a multifamily housing general plan designation.
(III)Its zoning is inconsistent with the general plan of the city in effect on January 1, 2018.
(B)A change to a zoning ordinance to a less intensive use under this paragraph shall not be effective until the City of San Jose establishes zoning districts that implement mixed-use neighborhood, urban residential, transit residential, and urban village general plan land use designations.
(C)The City of San Jose shall report each zoning ordinance amendment establishing a less intensive use pursuant to this paragraph in the following ways:
(i)In its annual report submitted pursuant to paragraph (2) of subdivision (a) of Section 65400 and submit the annual report to the relevant policy committees of the Legislature each year that the City of San Jose adopts a zoning ordinance amendment pursuant to this paragraph.
(ii)Electronically on an internet website accessible to the public by the time the zoning ordinance amendment is in effect.
(D)This paragraph shall become inoperative upon the date that the City of San Joses housing element update for the sixth cycle is due pursuant to Section 65588.
(4)This section does not prohibit an affected county or an affected city from changing a land use designation or zoning ordinance to a less intensive use on a site that is a mobilehome park, as defined in Section 18214 of the Health and Safety Code, as of the effective date of this section, and the no net loss requirement in paragraph (1) shall not apply.
(i)Notwithstanding subdivisions (b) and (e), this section does not prohibit an affected city or an affected county from enacting a development policy, standard, or condition that is intended to preserve or facilitate the production of housing for lower income households, as defined in Section 50079.5 of the Health and Safety Code, or housing types that traditionally serve lower income households, including mobilehome parks, single-room occupancy units, or units subject to any form of rent or price control through a public entitys valid exercise of its police power.
(j)The amendments to subparagraph (A) of paragraph (1) of subdivision (b), and to paragraph (1) of subdivision (h) made by the act adding this subdivision do not constitute a change in, but are declaratory of, existing law.
SEC. 6.Chapter 13 (commencing with Section 66310) is added to Division 1 of Title 7 of the Government Code, to read:13.Demolition of Housing UnitsSEC. 7.Article 2 (commencing with Section 66300.5) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:2.Demolition of Housing Units66310.66300.5.For purposes of this chapter: article:
(a)(1)(A)Except as otherwise provided in subparagraph (B), affected city means a city, including a charter city, that the Department of Housing and Community Development determines, pursuant to subdivision (d), is in an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B)Notwithstanding subparagraph (A), affected city does not include any city that has a population of 5,000 or less and is not located within an urbanized area, as designated by the United States Census Bureau.
(2)Affected county means a census-designated place, based on the 2013-2017 American Community Survey 5-year Estimates, that is wholly located within the boundaries of an urbanized area, as designated by the United States Census Bureau.
(3)Notwithstanding any other law, affected county and affected city includes the electorate of an affected county or city exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the affected county or city.
(b)Affordable housing cost has the same meaning as defined in Section 50052.5 of the Health and Safety Code.
(c)Affordable rent has the same meaning as defined in Section 50053 of the Health and Safety Code.
(d)Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.
(e)Housing development project has the same meaning as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(f)Persons and families of low or moderate income has the same meaning as defined in Section 50093 of the Health and Safety Code.
(g)Lower income households has the same meaning as defined in Section 50079.5 of the Health and Safety Code.
(h)Protected units means any of the following:
(1)Residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years.
(2)Residential dwelling units that are or were subject to any form of rent or price control through a public entitys valid exercise of its police power within the past five years.
(3)Residential dwelling units that are or were rented by lower or very low income households within the past five years.
(4)Residential dwelling units that were withdrawn from rent or lease in accordance with Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 within the past 10 years.
(i)(1)Replace shall have the same meaning as provided in subparagraphs (B) and (C) of paragraph (3) of subdivision (c) of Section 65915.
(2)Notwithstanding paragraph (1), for purposes of a development project that consists of a single residential unit on a site with a single protected unit, replace shall mean that the protected unit is replaced with a unit of any size at any income level.
(j)Very low income households has the same meaning as defined in Section 50105 of the Health and Safety Code.
66311.66300.6.(a)Notwithstanding any other law and notwithstanding local density requirements, an affected city or an affected county shall not approve a housing development project that will require the demolition of one or more residential dwelling units unless the project will create at least as many residential dwelling units as will be demolished.
(b)Notwithstanding any other law and notwithstanding local density requirements, an affected city or an affected county shall not approve a development project that will require the demolition of occupied or vacant protected units, or that is located on a site where protected units were demolished in the previous five years, unless all of the following requirements are satisfied:
(1)(A)The project will replace all existing or demolished protected units.
(B)Any protected units replaced pursuant to this paragraph shall be considered in determining whether the housing development project satisfies the requirements of Section 65915 or a locally adopted requirement that requires, as a condition of the development of residential rental units, that the project provide a certain percentage of residential rental units affordable to, and occupied by, households with incomes that do not exceed the limits for moderate-income, lower income, very low income, or extremely low income households, as specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code.
(2)(A)If the project is a housing development project, it will include at least as many residential dwelling units as the greatest number of residential dwelling units that existed on the project site within the last five years.
(B)If the project is not a housing development project, the proponent will ensure that the required replacement housing is developed prior to or concurrently with the development project.
(3)(A)Any existing occupants will be allowed to occupy their units until six months before the start of construction activities. The project proponent shall provide existing occupants with written notice of the planned demolition, the date they must vacate, and their rights under this section. Notice shall be provided at least six months in advance of the date that existing occupants must vacate.
(B)Any existing occupants that are required to leave their units shall be allowed to return at their prior rental rate if the demolition does not proceed and the property is returned to the rental market.
(4)The developer agrees to provide both of the following to the existing occupants of any protected units that are lower income households:
(A)Relocation benefits that are equivalent to the relocation benefits required to be paid by public entities pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 and any implementing regulations.
(B)A right of first refusal for a comparable unit available in the new housing development, or in the required replacement units associated with a new development that is not a housing development, affordable to the household at an affordable rent or an affordable housing cost. This subparagraph shall not apply to any of the following:
(i)A development project that consists of a single residential unit located on a site where a single protected unit is being demolished.
(ii)(I)Units in a housing development in which 100 percent of the units, exclusive of a managers unit or units, are reserved for lower income households.
(II)Notwithstanding subclause (I), this subparagraph shall apply to protected units occupied by an occupant who qualifies for residence in the new development and for whom providing a comparable unit would not be precluded due to unit size limitations or other requirements of one or more funding source of the housing development.
(C)(i)For purposes of complying with subparagraph (B), if one or more single-family homes that qualify as protected units are being replaced in a development project that consists of two or more units, comparable unit means either of the following, as applicable:
(I)A unit containing the same number of bedrooms if the single-family home contains three or fewer bedrooms.
(II)A unit containing three bedrooms if the single-family home contains four or more bedrooms.
(ii)For purposes of this subparagraph, a comparable unit is not required to have the same or similar square footage or the same number of total rooms.
(D)This subparagraph does not apply to an occupant of a short-term rental that is rented for a period of fewer than 30 days.
(5)This subdivision does not confer additional legal protections upon an unlawful occupant of a protected unit.
(c)This section shall not supersede any objective provision of a locally adopted ordinance that places restrictions on the demolition of residential dwelling units or the subdivision of residential rental units that are more protective of lower income households, requires the provision of a greater number of units affordable to lower income households, or that requires greater relocation assistance to displaced households.
(d)This section shall not apply to a housing development project for which an application was submitted after January 1, 2019, but prior to January 1, 2020, in a jurisdiction with a population of under 31,000 as of the 2020 United States Census that has a rent or price control ordinance.
SEC. 8.The heading of Article 3 (commencing with Section 66301) is added to Chapter 12 of Division 1 of Title 7 of the Government Code, to read:3.Duration of ChapterSEC. 7.SEC. 9.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
(a)In the preparation of its housing element, each city and county shall consider the guidelines adopted by the department pursuant to Section 50459 of the Health and Safety Code. Those guidelines shall be advisory to each city or county in the preparation of its housing element.
(b)(1)At least 90 days prior to adoption of a revision of its housing element pursuant to subdivision (e) of Section 65588, or at least 60 days prior to the adoption of a subsequent amendment to this element, the planning agency shall submit a draft element revision or draft amendment to the department. The local government of the planning agency shall make the first draft revision of a housing element available for public comment for at least 30 days and, if any comments are received, the local government shall take at least 10 business days after the 30-day public comment period to consider and incorporate public comments into the draft revision prior to submitting it to the department. For any subsequent draft revision, the local government shall post the draft revision on its internet website and shall email a link to the draft revision to all individuals and organizations that have previously requested notices relating to the local governments housing element at least seven days before submitting the draft revision to the department.
(2)The planning agency staff shall collect and compile the public comments regarding the housing element received by the city, county, or city and county, and provide these comments to each member of the legislative body before it adopts the housing element.
(3)The department shall review the draft and report its written findings to the planning agency within 90 days of its receipt of the first draft submittal for each housing element revision pursuant to subdivision (e) of Section 65588 or within 60 days of its receipt of a subsequent draft amendment or an adopted revision or adopted amendment to an element. The department shall not review the first draft submitted for each housing element revision pursuant to subdivision (e) of Section 65588 until the local government has made the draft available for public comment for at least 30 days and, if comments were received, has taken at least 10 business days to consider and incorporate public comments pursuant to paragraph (1).
(c)In the preparation of its findings, the department may consult with any public agency, group, or person. The department shall receive and consider any written comments from any public agency, group, or person regarding the draft or adopted element or amendment under review.
(d)In its written findings, the department shall determine whether the draft element or draft amendment substantially complies with this article.
(e)Prior to the adoption of its draft element or draft amendment, the legislative body shall consider the findings made by the department. If the departments findings are not available within the time limits set by this section, the legislative body may act without them.
(f)If the department finds that the draft element or draft amendment does not substantially comply with this article, the legislative body shall take one of the following actions:
(1)Change the draft element or draft amendment to substantially comply with this article.
(2)Adopt the draft element or draft amendment without changes. The legislative body shall include in its resolution of adoption written findings which explain the reasons the legislative body believes that the draft element or draft amendment substantially complies with this article despite the findings of the department.
(g)Promptly following the adoption of its element or amendment, the planning agency shall submit a copy to the department.
(h)The department shall, within 90 days, review adopted housing elements or amendments and report its findings to the planning agency.
(i)(1)(A)The department shall review any action or failure to act by the city, county, or city and county that it determines is inconsistent with an adopted housing element or Section 65583, including any failure to implement any program actions included in the housing element pursuant to Section 65583. The department shall issue written findings to the city, county, or city and county as to whether the action or failure to act substantially complies with this article, and provide a reasonable time no longer than 30 days for the city, county, or city and county to respond to the findings before taking any other action authorized by this section, including the action authorized by subparagraph (B).
(B)If the department finds that the action or failure to act by the city, county, or city and county does not substantially comply with this article, and if it has issued findings pursuant to this section that an amendment to the housing element substantially complies with this article, the department may revoke its findings until it determines that the city, county, or city and county has come into compliance with this article.
(2)The department may consult with any local government, public agency, group, or person, and shall receive and consider any written comments from any public agency, group, or person, regarding the action or failure to act by the city, county, or city and county described in paragraph (1), in determining whether the housing element substantially complies with this article.
(j)The department shall notify the city, county, or city and county and may notify the office of the Attorney General that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to this element, or any action or failure to act described in subdivision (i), does not substantially comply with this article or that any local government has taken an action in violation of the following:
(1)Housing Accountability Act (Section 65589.5).
(2)Section 65863.
(3)Chapter 4.3 (commencing with Section 65915).
(4)Section 65008.
(5)Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019, Sections 65941.1, 65943, and 66300).
(6)Chapter 13 (commencing with Section 66310).
(6)(7)Section 8899.50.
(7)(8)Section 65913.4.
(8)(9)Article 11 (commencing with Section 65650).
(9)(10)Article 12 (commencing with Section 65660).
(10)(11)Section 65913.11.
(11)(12)Section 65400.
(12)(13)Section 65863.2.
(13)(14)Chapter 4.1 (commencing with Section 65912.100).
(k)Commencing July 1, 2019, prior to the Attorney General bringing any suit for a violation of the provisions identified in subdivision (j) related to housing element compliance and seeking remedies available pursuant to this subdivision, the department shall offer the jurisdiction the opportunity for two meetings in person or via telephone to discuss the violation, and shall provide the jurisdiction written findings regarding the violation. This paragraph does not affect any action filed prior to the effective date of this section. The requirements set forth in this subdivision do not apply to any suits brought for a violation or violations of paragraphs (1) and (3) to (9), inclusive, of subdivision (j).
(l)In any action or special proceeding brought by the Attorney General relating to housing element compliance pursuant to a notice or referral under subdivision (j), the Attorney General may request, upon a finding of the court that the housing element does not substantially comply with the requirements of this article pursuant to this section, that the court issue an order or judgment directing the jurisdiction to bring its housing element into substantial compliance with the requirements of this article. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If a court determines that the housing element of the jurisdiction substantially complies with this article, it shall have the same force and effect, for purposes of eligibility for any financial assistance that requires a housing element in substantial compliance and for purposes of any incentives provided under Section 65589.9, as a determination by the department that the housing element substantially complies with this article.
(1)If the jurisdiction has not complied with the order or judgment after 12 months, the court shall conduct a status conference. Following the status conference, upon a determination that the jurisdiction failed to comply with the order or judgment compelling substantial compliance with the requirements of this article, the court shall impose fines on the jurisdiction, which shall be deposited into the Building Homes and Jobs Trust Fund. Any fine levied pursuant to this paragraph shall be in a minimum amount of ten thousand dollars ($10,000) per month, but shall not exceed one hundred thousand dollars ($100,000) per month, except as provided in paragraphs (2) and (3). In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(2)If the jurisdiction has not complied with the order or judgment after three months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Following the status conference, if the court finds that the fees imposed pursuant to paragraph (1) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of three. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(3)If the jurisdiction has not complied with the order or judgment six months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Upon a determination that the jurisdiction failed to comply with the order or judgment, the court may impose the following:
(A)If the court finds that the fees imposed pursuant to paragraphs (1) and (2) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of six. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(B)The court may order remedies available pursuant to Section 564 of the Code of Civil Procedure, under which the agent of the court may take all governmental actions necessary to bring the jurisdictions housing element into substantial compliance pursuant to this article in order to remedy identified deficiencies. The court shall determine whether the housing element of the jurisdiction substantially complies with this article and, once the court makes that determination, it shall have the same force and effect, for all purposes, as the departments determination that the housing element substantially complies with this article. An agent appointed pursuant to this paragraph shall have expertise in planning in California.
(4)This subdivision does not limit a courts discretion to apply any and all remedies in an action or special proceeding for a violation of any law identified in subdivision (j).
(m)In determining the application of the remedies available under subdivision (l), the court shall consider whether there are any mitigating circumstances delaying the jurisdiction from coming into compliance with state housing law. The court may consider whether a city, county, or city and county is making a good faith effort to come into substantial compliance or is facing substantial undue hardships.
(n)Nothing in this section shall limit the authority of the office of the Attorney General to bring a suit to enforce state law in an independent capacity. The office of the Attorney General may seek all remedies available under law including those set forth in this section.
(o)Notwithstanding Sections 11040 and 11042, if the Attorney General declines to represent the department in any action or special proceeding brought pursuant to a notice or referral under subdivision (j) the department may appoint or contract with other counsel for purposes of representing the department in the action or special proceeding.
(p)Notwithstanding any other provision of law, the statute of limitations set forth in subdivision (a) of Section 338 of the Code of Civil Procedure shall apply to any action or special proceeding brought by the Office of the Attorney General or pursuant to a notice or referral under subdivision (j), or by the department pursuant to subdivision (o).
SEC. 2.Section 65912.114 of the Government Code is amended to read:65912.114.(a)(1)If the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development.
(2)If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(A)Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B)Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(b)If the local government fails to provide the required documentation pursuant to subdivision (a), the development shall be deemed to satisfy the required objective planning standards.
(c)(1)For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(2)For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(d)The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a project as defined in Section 21065 of the Public Resources Code.
(e)Design review of the development may be conducted by the local governments planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(1)Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.
(2)Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.
(f)A development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915.
(g)The local government shall ensure that the project satisfies the requirements specified in subdivision (d) of Section 66300, Chapter 13 (commencing with Section 66310) regardless of whether the development is within or not within an affected city or within or not within an affected county.
(h)If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(i)A local government may exempt a parcel from this section before a development proponent submits a development application on a parcel pursuant to this article if the local government makes written findings establishing all of the following:
(1)The local government has identified one or more parcels that meet the criteria described in subdivisions (b) through (f) of Section 65912.111.
(2)(A)If a parcel identified in paragraph (1) would not otherwise be eligible for development pursuant to this chapter, the local government has permitted the parcel to be developed pursuant to the requirements of this chapter.
(B)If a parcel identified in paragraph (1) would otherwise be eligible for development pursuant to this chapter, the local government has permitted residential densities above the residential density required in subdivision (b) of Section 65912.113.
(3)The development of the parcel or parcels pursuant to paragraph (3) will result in all of the following:
(A)No net loss of the total potential residential density in the jurisdiction.
(B)No net loss of the potential residential density of housing affordable to lower income households in the jurisdiction.
(C)Affirmative furthering of fair housing.
(j)A local governments approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) of Section 65913.4.
(k)Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) of Section 65913.4.
(l)A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.
(m)A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) of Section 65913.4.
(n)A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) of Section 65913.4.
(o)A local government may adopt an ordinance to implement the provisions of this article. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
SEC. 3.Section 65912.124 of the Government Code is amended to read:65912.124.(a)(1)If the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development.
(2)If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(A)Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B)Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(b)If the local government fails to provide the required documentation pursuant to subdivision (a), the development shall be deemed to satisfy the required objective planning standards.
(c)(1)For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(2)For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(d)The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a project as defined in Section 21065 of the Public Resources Code.
(e)Design review of the development may be conducted by the local governments planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(1)Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.
(2)Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.
(f)A housing development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915, except that the project shall not use a concession to reduce a local government requirement for the provision of ground floor retail that is consistent with the allowance contained in paragraph (3) of subdivision (j) of Section 65912.123.
(g)The local government shall ensure that the project satisfies the requirements specified in subdivision (d) of Section 66300, Chapter 13 (commencing with Section 66310), regardless of whether the development is within or not within an affected city or within or not within an affected county.
(h)If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(i)A local government may exempt a parcel from this section before a development proponent submits a development application on a parcel pursuant to this article if the local government makes written findings establishing all of the following:
(1)The local government has identified a parcel or parcels that meet the criteria described in subdivisions (b) and (e) to (h), inclusive, of Section 65912.121.
(2)(A)If a parcel identified in paragraph (1) would not otherwise be eligible for development pursuant to this chapter, the local government has permitted the parcel to be developed pursuant to the requirements of this chapter.
(B)If a parcel identified in paragraph (1) would otherwise be eligible for development pursuant to this chapter, the local government has permitted residential densities above the residential density required in subdivision (b) of Section 65912.123 and heights required in subdivision (c) of Section 65912.123.
(3)The development of the parcel or parcels pursuant to paragraph (3) will result in all of the following:
(A)No net loss of the total potential residential density in the jurisdiction.
(B)No net loss of the potential residential density of housing affordable to lower income households in the jurisdiction.
(C)Affirmative furthering of fair housing.
(j)A local governments approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) of Section 65913.4.
(k)Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) of Section 65913.4.
(l)A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.
(m)A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) of Section 65913.4.
(n)A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) of Section 65913.4.
(o)A local government may adopt an ordinance to implement the provisions of this article. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
SEC. 4.Section 65940 of the Government Code, as amended by Section 4 of Chapter 161 of the Statutes of 2021, is amended to read:65940.(a)(1)Each public agency shall compile one or more lists that shall specify in detail the information that will be required from any applicant for a development project. Each public agency shall revise the list of information required from an applicant to include a certification of compliance with Section 65962.5, and the statement of application required by Section 65943. Copies of the information, including the statement of application required by Section 65943, shall be made available to all applicants for development projects and to any person who requests the information.
(2)An affected city or affected county, as defined in Section 66300, shall include the information necessary to determine compliance with the requirements of subdivision (d) of Section 66300 Chapter 13 (commencing with Section 66310) in the list compiled pursuant to paragraph (1).
(b)The list of information required from any applicant shall include, where applicable, identification of whether the proposed project is located within 1,000 feet of a military installation, beneath a low-level flight path or within special use airspace as defined in Section 21098 of the Public Resources Code, and within an urbanized area as defined in Section 65944.
(c)(1)A public agency that is not beneath a low-level flight path or not within special use airspace and does not contain a military installation is not required to change its list of information required from applicants to comply with subdivision (b).
(2)A public agency that is entirely urbanized, as defined in subdivision (e) of Section 65944, with the exception of a jurisdiction that contains a military installation, is not required to change its list of information required from applicants to comply with subdivision (b).
(d)For purposes of this section, development project includes a housing development project as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(e)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SECTION 1.SEC. 5.Section 66300 of the Government Code is amended to read:66300.(a)As used in this section, chapter, the following definitions shall apply:
(1)(A)Except as otherwise provided in subparagraph (B), affected city means a city, including a charter city, that the Department of Housing and Community Development determines, pursuant to subdivision (e), (d), is in an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B)Notwithstanding subparagraph (A), affected city does not include any city that has a population of 5,000 or less and is not located within an urbanized area, as designated by the United States Census Bureau.
(2)Affected county means a census-designated place, based on the 2013-2017 American Community Survey 5-year Estimates, that is wholly located within the boundaries of an urbanized area, as designated by the United States Census Bureau.
(3)Notwithstanding any other law, affected county and affected city includes the electorate of an affected county or city exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the affected county or city.
(4)Department means the Department of Housing and Community Development.
(5)Development policy, standard, or condition means any of the following:
(A)A provision of, or amendment to, a general plan.
(B)A provision of, or amendment to, a specific plan.
(C)A provision of, or amendment to, a zoning ordinance.
(D)A subdivision standard or criterion.
(6)Housing development project has the same meaning as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(7)Objective design standard means a design standard that involves no personal or subjective judgment by a public official and is uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal of an application.
(b)(1)Notwithstanding any other law except as provided in subdivision (i), (h), with respect to land where housing is an allowable use, an affected county or an affected city shall not enact a development policy, standard, or condition that would have any of the following effects:
(A)Changing the general plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use or reducing the intensity of land use within an existing general plan land use designation, specific plan land use designation, or zoning district in effect at the time of the proposed change, below what was allowed under the land use designation or zoning ordinances of the affected county or affected city, as applicable, as in effect on January 1, 2018, except as otherwise provided in clause (ii) of subparagraph (B) or subdivision (i). (h). For purposes of this subparagraph, reducing the intensity of land use includes, but is not limited to, reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, new or increased setback requirements, minimum frontage requirements, or maximum lot coverage limitations, or any other action that would individually or cumulatively reduce the sites residential development capacity.
(B)(i)Imposing a moratorium or similar restriction or limitation on housing development, including mixed-use development, within all or a portion of the jurisdiction of the affected county or city, other than to specifically protect against an imminent threat to the health and safety of persons residing in, or within the immediate vicinity of, the area subject to the moratorium or for projects specifically identified as existing restricted affordable housing.
(ii)The affected county or affected city, as applicable, shall not enforce a zoning ordinance imposing a moratorium or other similar restriction on or limitation of housing development until it has submitted the ordinance to, and received approval from, the department. The department shall approve a zoning ordinance submitted to it pursuant to this subparagraph only if it determines that the zoning ordinance satisfies the requirements of this subparagraph. If the department denies approval of a zoning ordinance imposing a moratorium or similar restriction or limitation on housing development as inconsistent with this subparagraph, that ordinance shall be deemed void.
(C)Imposing or enforcing design standards established on or after January 1, 2020, that are not objective design standards.
(D)Except as provided in subparagraph (E), establishing or implementing any provision that:
(i)Limits the number of land use approvals or permits necessary for the approval and construction of housing that will be issued or allocated within all or a portion of the affected county or affected city, as applicable.
(ii)Acts as a cap on the number of housing units that can be approved or constructed either annually or for some other time period.
(iii)Limits the population of the affected county or affected city, as applicable.
(E)Notwithstanding subparagraph (D), an affected county or affected city may enforce a limit on the number of approvals or permits or a cap on the number of housing units that can be approved or constructed if the provision of law imposing the limit was approved by voters prior to January 1, 2005, and the affected county or affected city is located in a predominantly agricultural county. For the purposes of this subparagraph, predominantly agricultural county means a county that meets both of the following, as determined by the most recent California Farmland Conversion Report produced by the Department of Conservation:
(i)Has more than 550,000 acres of agricultural land.
(ii)At least one-half of the county area is agricultural land.
(2)Any development policy, standard, or condition enacted on or after the effective date of this section that does not comply with this section shall be deemed void.
(c)Notwithstanding subdivisions (b) and (f), (e), an affected county or affected city may enact a development policy, standard, or condition to prohibit the commercial use of land that is designated for residential use, including, but not limited to, short-term occupancy of a residence, consistent with the authority conferred on the county or city by other law.
(d)Notwithstanding any other provision of this section and notwithstanding local density requirements, both of the following shall apply:(1)An affected city or an affected county shall not approve a housing development project that will require the demolition of one or more residential dwelling units unless the project will create at least as many residential dwelling units as will be demolished.(2)An affected city or an affected county shall not approve a housing development project that will require the demolition of occupied or vacant protected units, unless all of the following apply:(A)(i)The project will replace all existing or demolished protected units.(ii)Any protected units replaced pursuant to this subparagraph shall be considered in determining whether the housing development project satisfies the requirements of Section 65915 or a locally adopted requirement that requires, as a condition of the development of residential rental units, that the project provide a certain percentage of residential rental units affordable to, and occupied by, households with incomes that do not exceed the limits for moderate-income, lower income, very low income, or extremely low income households, as specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code.(B)The housing development project will include at least as many residential dwelling units as the greatest number of residential dwelling units that existed on the project site within the last five years.(C)(i)Any existing occupants will be allowed to occupy their units until six months before the start of construction activities with proper notice, subject to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1.(ii)Any existing occupants that are required to leave their units shall be allowed to return at their prior rental rate if the demolition does not proceed and the property is returned to the rental market.(D)The developer agrees to provide both of the following to the existing occupants of any protected units that are lower income households:(i)Relocation benefits to the occupants of those affordable residential rental units, subject to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1.(ii)A right of first refusal for a comparable unit available in the new housing development affordable to the household at an affordable rent or an affordable housing cost. This clause shall not apply to any of the following:(I)A development project that consists of a single residential unit located on a site where a single protected unit is being demolished.(II)(ia)Units in a housing development in which 100 percent of the units, exclusive of a managers unit or units, are reserved for lower income households.(ib)Notwithstanding sub-subclause (ia), clause (ii) shall apply to protected units occupied by an occupant who qualifies for residence in the new development and for whom providing a comparable unit would not be precluded due to unit size limitations or other requirements of one or more funding source of the housing development.(iii)(I)For purposes of complying with clause (ii), if one or more single-family homes that qualify as protected units are being replaced in a development project that consists of two or more units, comparable unit means either of the following, as applicable:(ia)A unit containing the same number of bedrooms if the single-family home contains three or fewer bedrooms.(ib)A unit containing three bedrooms if the single-family home contains four or more bedrooms.(II)For purposes of this clause, a comparable unit is not required to have the same or similar square footage or the same number of total rooms.(iv)This subparagraph does not apply to an occupant of a short-term rental that is rented for a period of fewer than 30 days.(E)This paragraph does not confer additional legal protections upon an unlawful occupant of a protected unit.(F)For purposes of this paragraph:(i)Affordable housing cost has the same meaning as defined in Section 50052.5 of the Health and Safety Code.(ii)Affordable rent has the same meaning as defined in Section 50053 of the Health and Safety Code.(iii)Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.(iv)Persons and families of low or moderate income has the same meaning as defined in Section 50093 of the Health and Safety Code.(v)Lower income households has the same meaning as defined in Section 50079.5 of the Health and Safety Code.(vi)Protected units means any of the following:(I)Residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years.(II)Residential dwelling units that are or were subject to any form of rent or price control through a public entitys valid exercise of its police power within the past five years.(III)Residential dwelling units that are or were rented by lower or very low income households within the past five years.(IV)Residential dwelling units that were withdrawn from rent or lease in accordance with Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 within the past 10 years.(vii)(I)Replace shall have the same meaning as provided in subparagraphs (B) and (C) of paragraph (3) of subdivision (c) of Section 65915.(II)Notwithstanding subclause (I), for purposes of a development project that consists of a single residential unit on a site with a single protected unit, replace shall mean that the protected unit is replaced with a unit of any size at any income level.(3)This subdivision shall not supersede any objective provision of a locally adopted ordinance that places restrictions on the demolition of residential dwelling units or the subdivision of residential rental units that are more protective of lower income households, requires the provision of a greater number of units affordable to lower income households, or that requires greater relocation assistance to displaced households.(4)This subdivision shall only apply to a housing development project that submits a complete application pursuant to Section 65943 on or after January 1, 2020.(5)This subdivision shall not apply to a housing development project for which an application was submitted after January 1, 2019, but prior to January 1, 2020, in a jurisdiction with a population of under 31,000 as of the 2020 United States Census that has a rent or price control ordinance.(e)(d)The Department of Housing and Community Development shall determine those cities and counties in this state that are affected cities and affected counties, in accordance with subdivision (a) by June 30, 2020. The department may update the list of affected cities and affected counties once on or after January 1, 2021, and once on or after January 1, 2025, to account for changes in urbanized areas or urban clusters due to new data obtained from the 2020 census. The departments determination shall remain valid until January 1, 2030.
(f)(e)(1)Except as provided in paragraphs (3) and (4) and subdivisions (h) and (i), (g) and (h), this section shall prevail over any conflicting provision of this title or other law regulating housing development in this state to the extent that this section more fully advances the intent specified in paragraph (2).
(2)It is the intent of the Legislature that this section be broadly construed so as to maximize the development of housing within this state. Any exception to the requirements of this section, including an exception for the health and safety of occupants of a housing development project, shall be construed narrowly.
(3)This section shall not be construed as prohibiting the adoption or amendment of a development policy, standard, or condition in a manner that:
(A)Allows greater density.
(B)Facilitates the development of housing.
(C)Reduces the costs to a housing development project.
(D)Imposes or implements mitigation measures as necessary to comply with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(4)This section shall not apply to a housing development project located within a very high fire hazard severity zone. For purposes of this paragraph, very high fire hazard severity zone has the same meaning as provided in Section 51177.
(g)(f)This section shall not be construed to void a height limit, urban growth boundary, or urban limit established by the electorate of an affected county or an affected city, provided that the height limit, urban growth boundary, or urban limit complies with subparagraph (A) of paragraph (1) of subdivision (b).
(h)(g)(1)Nothing in this section supersedes, limits, or otherwise modifies the requirements of, or the standards of review pursuant to, Division 13 (commencing with Section 21000) of the Public Resources Code.
(2)Nothing in this section supersedes, limits, or otherwise modifies the requirements of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). For a housing development project proposed within the coastal zone, nothing in this section shall be construed to prohibit an affected county or an affected city from enacting a development policy, standard, or condition necessary to implement or amend a certified local coastal program consistent with the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code).
(i)(h)(1)This section does not prohibit an affected county or an affected city, including the local electorate acting through the initiative process, from changing a land use designation or zoning ordinance to a less intensive use, or reducing the intensity of land use, if the city or county concurrently changes the development standards, policies, and conditions applicable to other parcels within the jurisdiction to ensure that there is no net loss in residential capacity.
(2)(A)For purposes of this subdivision, concurrently means the action is approved at the same meeting of the legislative body.
(B)Notwithstanding subparagraph (A), if the action that would result in a net loss of residential capacity is requested by an applicant for a housing development project, concurrently means within 180 days.
(C)Notwithstanding subparagraph (A), in the case of an initiative measure, concurrently means the action is included in the initiative in a manner that ensures the added residential capacity is effective at the same time as the reduction in residential capacity.
(3)(A)(i)The City of San Jose may proactively change a zoning ordinance to a more intensive use and subsequently use the additional capacity to change a zoning ordinance applicable to an eligible parcel to a less intensive use as long as there is no net loss in residential capacity.
(ii)A change to a zoning ordinance to a less intensive use under this paragraph shall occur within one year of the change to the zoning ordinance to a more intensive use.
(iii)For purposes of this paragraph, eligible parcel means a parcel that meets all of the following criteria:
(I)It is zoned for residential uses.
(II)It does not have a multifamily housing general plan designation.
(III)Its zoning is inconsistent with the general plan of the city in effect on January 1, 2018.
(B)A change to a zoning ordinance to a less intensive use under this paragraph shall not be effective until the City of San Jose establishes zoning districts that implement mixed-use neighborhood, urban residential, transit residential, and urban village general plan land use designations.
(C)The City of San Jose shall report each zoning ordinance amendment establishing a less intensive use pursuant to this paragraph in the following ways:
(i)In its annual report submitted pursuant to paragraph (2) of subdivision (a) of Section 65400 and submit the annual report to the relevant policy committees of the Legislature each year that the City of San Jose adopts a zoning ordinance amendment pursuant to this paragraph.
(ii)Electronically on an internet website accessible to the public by the time the zoning ordinance amendment is in effect.
(D)This paragraph shall become inoperative upon the date that the City of San Joses housing element update for the sixth cycle is due pursuant to Section 65588.
(4)This section does not prohibit an affected county or an affected city from changing a land use designation or zoning ordinance to a less intensive use on a site that is a mobilehome park, as defined in Section 18214 of the Health and Safety Code, as of the effective date of this section, and the no net loss requirement in paragraph (1) shall not apply.
(j)(i)Notwithstanding subdivisions (b) and (f), (e), this section does not prohibit an affected city or an affected county from enacting a development policy, standard, or condition that is intended to preserve or facilitate the production of housing for lower income households, as defined in Section 50079.5 of the Health and Safety Code, or housing types that traditionally serve lower income households, including mobilehome parks, single-room occupancy units, or units subject to any form of rent or price control through a public entitys valid exercise of its police power.
(k)(j)The amendments to subparagraph (A) of paragraph (1) of subdivision (b), and to paragraph (1) of subdivision (i) (h) made by the act adding this subdivision do not constitute a change in, but are declaratory of, existing law.
SEC. 6.Chapter 13 (commencing with Section 66310) is added to Division 1 of Title 7 of the Government Code, to read:13.Demolition of Housing Units66310.For purposes of this chapter:
(a)(1)(A)Except as otherwise provided in subparagraph (B), affected city means a city, including a charter city, that the Department of Housing and Community Development determines, pursuant to subdivision (d), is in an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B)Notwithstanding subparagraph (A), affected city does not include any city that has a population of 5,000 or less and is not located within an urbanized area, as designated by the United States Census Bureau.
(2)Affected county means a census-designated place, based on the 2013-2017 American Community Survey 5-year Estimates, that is wholly located within the boundaries of an urbanized area, as designated by the United States Census Bureau.
(3)Notwithstanding any other law, affected county and affected city includes the electorate of an affected county or city exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the affected county or city.
(b)Affordable housing cost has the same meaning as defined in Section 50052.5 of the Health and Safety Code.
(c)Affordable rent has the same meaning as defined in Section 50053 of the Health and Safety Code.
(d)Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.
(e)Housing development project has the same meaning as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(f)Persons and families of low or moderate income has the same meaning as defined in Section 50093 of the Health and Safety Code.
(g)Lower income households has the same meaning as defined in Section 50079.5 of the Health and Safety Code.
(h)Protected units means any of the following:
(1)Residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years.
(2)Residential dwelling units that are or were subject to any form of rent or price control through a public entitys valid exercise of its police power within the past five years.
(3)Residential dwelling units that are or were rented by lower or very low income households within the past five years.
(4)Residential dwelling units that were withdrawn from rent or lease in accordance with Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 within the past 10 years.
(i)(1)Replace shall have the same meaning as provided in subparagraphs (B) and (C) of paragraph (3) of subdivision (c) of Section 65915.
(2)Notwithstanding paragraph (1), for purposes of a development project that consists of a single residential unit on a site with a single protected unit, replace shall mean that the protected unit is replaced with a unit of any size at any income level.
(j)Very low income households has the same meaning as defined in Section 50105 of the Health and Safety Code.
66311.(a)Notwithstanding any other law and notwithstanding local density requirements, an affected city or an affected county shall not approve a housing development project that will require the demolition of one or more residential dwelling units unless the project will create at least as many residential dwelling units as will be demolished.
(b)Notwithstanding any other law and notwithstanding local density requirements, an affected city or an affected county shall not approve a development project that will require the demolition of occupied or vacant protected units, or that is located on a site where protected units were demolished in the previous five years, unless all of the following requirements are satisfied:
(1)(A)The project will replace all existing or demolished protected units.
(B)Any protected units replaced pursuant to this paragraph shall be considered in determining whether the housing development project satisfies the requirements of Section 65915 or a locally adopted requirement that requires, as a condition of the development of residential rental units, that the project provide a certain percentage of residential rental units affordable to, and occupied by, households with incomes that do not exceed the limits for moderate-income, lower income, very low income, or extremely low income households, as specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code.
(2)(A)If the project is a housing development project, it will include at least as many residential dwelling units as the greatest number of residential dwelling units that existed on the project site within the last five years.
(B)If the project is not a housing development project, the proponent will ensure that the required replacement housing is developed prior to or concurrently with the development project.
(3)(A)Any existing occupants will be allowed to occupy their units until six months before the start of construction activities. The project proponent shall provide existing occupants with written notice of the planned demolition, the date they must vacate, and their rights under this section. Notice shall be provided at least six months in advance of the date that existing occupants must vacate.
(B)Any existing occupants that are required to leave their units shall be allowed to return at their prior rental rate if the demolition does not proceed and the property is returned to the rental market.
(4)The developer agrees to provide both of the following to the existing occupants of any protected units that are lower income households:
(A)Relocation benefits that are equivalent to the relocation benefits required to be paid by public entities pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 and any implementing regulations.
(B)A right of first refusal for a comparable unit available in the new housing development, or in the required replacement units associated with a new development that is not a housing development, affordable to the household at an affordable rent or an affordable housing cost. This subparagraph shall not apply to any of the following:
(i)A development project that consists of a single residential unit located on a site where a single protected unit is being demolished.
(ii)(I)Units in a housing development in which 100 percent of the units, exclusive of a managers unit or units, are reserved for lower income households.
(II)Notwithstanding subclause (I), this subparagraph shall apply to protected units occupied by an occupant who qualifies for residence in the new development and for whom providing a comparable unit would not be precluded due to unit size limitations or other requirements of one or more funding source of the housing development.
(C)(i)For purposes of complying with subparagraph (B), if one or more single-family homes that qualify as protected units are being replaced in a development project that consists of two or more units, comparable unit means either of the following, as applicable:
(I)A unit containing the same number of bedrooms if the single-family home contains three or fewer bedrooms.
(II)A unit containing three bedrooms if the single-family home contains four or more bedrooms.
(ii)For purposes of this subparagraph, a comparable unit is not required to have the same or similar square footage or the same number of total rooms.
(D)This subparagraph does not apply to an occupant of a short-term rental that is rented for a period of fewer than 30 days.
(5)This subdivision does not confer additional legal protections upon an unlawful occupant of a protected unit.
(c)This section shall not supersede any objective provision of a locally adopted ordinance that places restrictions on the demolition of residential dwelling units or the subdivision of residential rental units that are more protective of lower income households, requires the provision of a greater number of units affordable to lower income households, or that requires greater relocation assistance to displaced households.
(d)This section shall not apply to a housing development project for which an application was submitted after January 1, 2019, but prior to January 1, 2020, in a jurisdiction with a population of under 31,000 as of the 2020 United States Census that has a rent or price control ordinance.
SEC. 7.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
(a)As used in this section: section, the following definitions shall apply:
(1)(A)Except as otherwise provided in subparagraph (B), affected city means a city, including a charter city, that the Department of Housing and Community Development determines, pursuant to subdivision (e), is in an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B)Notwithstanding subparagraph (A), affected city does not include any city that has a population of 5,000 or less and is not located within an urbanized area, as designated by the United States Census Bureau.
(2)Affected county means a census-designated place, based on the 2013-2017 American Community Survey 5-year Estimates, that is wholly located within the boundaries of an urbanized area, as designated by the United States Census Bureau.
(3)Notwithstanding any other law, affected county and affected city includes the electorate of an affected county or city exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the affected county or city.
(4)Department means the Department of Housing and Community Development.
(5)Development policy, standard, or condition means any of the following:
(A)A provision of, or amendment to, a general plan.
(B)A provision of, or amendment to, a specific plan.
(C)A provision of, or amendment to, a zoning ordinance.
(D)A subdivision standard or criterion.
(6)Housing development project has the same meaning as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(7)Objective design standard means a design standard that involves no personal or subjective judgment by a public official and is uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal of an application.
(b)(1)Notwithstanding any other law except as provided in subdivision (i), with respect to land where housing is an allowable use, an affected county or an affected city shall not enact a development policy, standard, or condition that would have any of the following effects:
(A)Changing the general plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use or reducing the intensity of land use within an existing general plan land use designation, specific plan land use designation, or zoning district in effect at the time of the proposed change, below what was allowed under the land use designation or zoning ordinances of the affected county or affected city, as applicable, as in effect on January 1, 2018, except as otherwise provided in clause (ii) of subparagraph (B) or subdivision (i). For purposes of this subparagraph, reducing the intensity of land use includes, but is not limited to, reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, new or increased setback requirements, minimum frontage requirements, or maximum lot coverage limitations, or any other action that would individually or cumulatively reduce the sites residential development capacity.
(B)(i)Imposing a moratorium or similar restriction or limitation on housing development, including mixed-use development, within all or a portion of the jurisdiction of the affected county or city, other than to specifically protect against an imminent threat to the health and safety of persons residing in, or within the immediate vicinity of, the area subject to the moratorium or for projects specifically identified as existing restricted affordable housing.
(ii)The affected county or affected city, as applicable, shall not enforce a zoning ordinance imposing a moratorium or other similar restriction on or limitation of housing development until it has submitted the ordinance to, and received approval from, the department. The department shall approve a zoning ordinance submitted to it pursuant to this subparagraph only if it determines that the zoning ordinance satisfies the requirements of this subparagraph. If the department denies approval of a zoning ordinance imposing a moratorium or similar restriction or limitation on housing development as inconsistent with this subparagraph, that ordinance shall be deemed void.
(C)Imposing or enforcing design standards established on or after January 1, 2020, that are not objective design standards.
(D)Except as provided in subparagraph (E), establishing or implementing any provision that:
(i)Limits the number of land use approvals or permits necessary for the approval and construction of housing that will be issued or allocated within all or a portion of the affected county or affected city, as applicable.
(ii)Acts as a cap on the number of housing units that can be approved or constructed either annually or for some other time period.
(iii)Limits the population of the affected county or affected city, as applicable.
(E)Notwithstanding subparagraph (D), an affected county or affected city may enforce a limit on the number of approvals or permits or a cap on the number of housing units that can be approved or constructed if the provision of law imposing the limit was approved by voters prior to January 1, 2005, and the affected county or affected city is located in a predominantly agricultural county. For the purposes of this subparagraph, predominantly agricultural county means a county that meets both of the following, as determined by the most recent California Farmland Conversion Report produced by the Department of Conservation:
(i)Has more than 550,000 acres of agricultural land.
(ii)At least one-half of the county area is agricultural land.
(2)Any development policy, standard, or condition enacted on or after the effective date of this section that does not comply with this section shall be deemed void.
(c)Notwithstanding subdivisions (b) and (f), an affected county or affected city may enact a development policy, standard, or condition to prohibit the commercial use of land that is designated for residential use, including, but not limited to, short-term occupancy of a residence, consistent with the authority conferred on the county or city by other law.
(d)Notwithstanding any other provision of this section and notwithstanding local density requirements, both of the following shall apply:
(1)An affected city or an affected county shall not approve a housing development project that will require the demolition of one or more residential dwelling units unless the project will create at least as many residential dwelling units as will be demolished.
(2)An affected city or an affected county shall not approve a housing development project that will require the demolition of occupied or vacant protected units, unless all of the following apply:
(A)(i)The project will replace all existing or demolished protected units.
(ii)Any protected units replaced pursuant to this subparagraph shall be considered in determining whether the housing development project satisfies the requirements of Section 65915 or a locally adopted requirement that requires, as a condition of the development of residential rental units, that the project provide a certain percentage of residential rental units affordable to, and occupied by, households with incomes that do not exceed the limits for moderate-income, lower income, very low income, or extremely low income households, as specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code.
(B)The housing development project will include at least as many residential dwelling units as the greatest number of residential dwelling units that existed on the project site within the last five years.
(C)(i)Any existing occupants will be allowed to occupy their units until six months before the start of construction activities with proper notice, subject to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1.
(ii)Any existing occupants that are required to leave their units shall be allowed to return at their prior rental rate if the demolition does not proceed and the property is returned to the rental market.
(D)The developer agrees to provide both of the following to the existing occupants of any protected units that are lower income households:
(i)Relocation benefits to the occupants of those affordable residential rental units, subject to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1.
(ii)A right of first refusal for a comparable unit available in the new housing development affordable to the household at an affordable rent or an affordable housing cost. This clause shall not apply to any of the following:
(I)A development project that consists of a single residential unit located on a site where a single protected unit is being demolished.
(II)(ia)Units in a housing development in which 100 percent of the units, exclusive of a managers unit or units, are reserved for lower income households.
(ib)Notwithstanding sub-subclause (ia), clause (ii) shall apply to protected units occupied by an occupant who qualifies for residence in the new development and for whom providing a comparable unit would not be precluded due to unit size limitations or other requirements of one or more funding source of the housing development.
(iii)(I)For purposes of complying with clause (ii), if one or more single-family homes that qualify as protected units are being replaced in a development project that consists of two or more units, comparable unit means either of the following, as applicable:
(ia)A unit containing the same number of bedrooms if the single-family home contains three or fewer bedrooms.
(ib)A unit containing three bedrooms if the single-family home contains four or more bedrooms.
(II)For purposes of this clause, a comparable unit is not required to have the same or similar square footage or the same number of total rooms.
(iv)This subparagraph does not apply to an occupant of a short-term rental that is rented for a period of fewer than 30 days.
(E)This paragraph does not confer additional legal protections upon an unlawful occupant of a protected unit.
(F)For purposes of this paragraph:
(i)Affordable housing cost has the same meaning as defined in Section 50052.5 of the Health and Safety Code.
(ii)Affordable rent has the same meaning as defined in Section 50053 of the Health and Safety Code.
(iii)Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.
(iv)Persons and families of low or moderate income has the same meaning as defined in Section 50093 of the Health and Safety Code.
(v)Lower income households has the same meaning as defined in Section 50079.5 of the Health and Safety Code.
(vi)Protected units means any of the following:
(I)Residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years.
(II)Residential dwelling units that are or were subject to any form of rent or price control through a public entitys valid exercise of its police power within the past five years.
(III)Residential dwelling units that are or were rented by lower or very low income households within the past five years.
(IV)Residential dwelling units that were withdrawn from rent or lease in accordance with Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 within the past 10 years.
(vii)(I)Replace shall have the same meaning as provided in subparagraphs (B) and (C) of paragraph (3) of subdivision (c) of Section 65915.
(II)Notwithstanding subclause (I), for purposes of a development project that consists of a single residential unit on a site with a single protected unit, replace shall mean that the protected unit is replaced with a unit of any size at any income level.
(3)This subdivision shall not supersede any objective provision of a locally adopted ordinance that places restrictions on the demolition of residential dwelling units or the subdivision of residential rental units that are more protective of lower income households, requires the provision of a greater number of units affordable to lower income households, or that requires greater relocation assistance to displaced households.
(4)This subdivision shall only apply to a housing development project that submits a complete application pursuant to Section 65943 on or after January 1, 2020.
(5)This subdivision shall not apply to a housing development project for which an application was submitted after January 1, 2019, but prior to January 1, 2020, in a jurisdiction with a population of under 31,000 as of the 2020 United States Census that has a rent or price control ordinance.
(e)The Department of Housing and Community Development shall determine those cities and counties in this state that are affected cities and affected counties, in accordance with subdivision (a) by June 30, 2020. The department may update the list of affected cities and affected counties once on or after January 1, 2021, and once on or after January 1, 2025, to account for changes in urbanized areas or urban clusters due to new data obtained from the 2020 census. The departments determination shall remain valid until January 1, 2030.
(f)(1)Except as provided in paragraphs (3) and (4) and subdivisions (h) and (i), this section shall prevail over any conflicting provision of this title or other law regulating housing development in this state to the extent that this section more fully advances the intent specified in paragraph (2).
(2)It is the intent of the Legislature that this section be broadly construed so as to maximize the development of housing within this state. Any exception to the requirements of this section, including an exception for the health and safety of occupants of a housing development project, shall be construed narrowly.
(3)This section shall not be construed as prohibiting the adoption or amendment of a development policy, standard, or condition in a manner that:
(A)Allows greater density.
(B)Facilitates the development of housing.
(C)Reduces the costs to a housing development project.
(D)Imposes or implements mitigation measures as necessary to comply with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(4)This section shall not apply to a housing development project located within a very high fire hazard severity zone. For purposes of this paragraph, very high fire hazard severity zone has the same meaning as provided in Section 51177.
(g)This section shall not be construed to void a height limit, urban growth boundary, or urban limit established by the electorate of an affected county or an affected city, provided that the height limit, urban growth boundary, or urban limit complies with subparagraph (A) of paragraph (1) of subdivision (b).
(h)(1)Nothing in this section supersedes, limits, or otherwise modifies the requirements of, or the standards of review pursuant to, Division 13 (commencing with Section 21000) of the Public Resources Code.
(2)Nothing in this section supersedes, limits, or otherwise modifies the requirements of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). For a housing development project proposed within the coastal zone, nothing in this section shall be construed to prohibit an affected county or an affected city from enacting a development policy, standard, or condition necessary to implement or amend a certified local coastal program consistent with the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code).
(i)(1)This section does not prohibit an affected county or an affected city, including the local electorate acting through the initiative process, from changing a land use designation or zoning ordinance to a less intensive use, or reducing the intensity of land use, if the city or county concurrently changes the development standards, policies, and conditions applicable to other parcels within the jurisdiction to ensure that there is no net loss in residential capacity.
(2)(A)For purposes of this subdivision, concurrently means the action is approved at the same meeting of the legislative body.
(B)Notwithstanding subparagraph (A), if the action that would result in a net loss of residential capacity is requested by an applicant for a housing development project, concurrently means within 180 days.
(C)Notwithstanding subparagraph (A), in the case of an initiative measure, concurrently means the action is included in the initiative in a manner that ensures the added residential capacity is effective at the same time as the reduction in residential capacity.
(3)(A)(i)The City of San Jose may proactively change a zoning ordinance to a more intensive use and subsequently use the additional capacity to change a zoning ordinance applicable to an eligible parcel to a less intensive use as long as there is no net loss in residential capacity.
(ii)A change to a zoning ordinance to a less intensive use under this paragraph shall occur within one year of the change to the zoning ordinance to a more intensive use.
(iii)For purposes of this paragraph, eligible parcel means a parcel that meets all of the following criteria:
(I)It is zoned for residential uses.
(II)It does not have a multifamily housing general plan designation.
(III)Its zoning is inconsistent with the general plan of the city in effect on January 1, 2018.
(B)A change to a zoning ordinance to a less intensive use under this paragraph shall not be effective until the City of San Jose establishes zoning districts that implement mixed-use neighborhood, urban residential, transit residential, and urban village general plan land use designations.
(C)The City of San Jose shall report each zoning ordinance amendment establishing a less intensive use pursuant to this paragraph in the following ways:
(i)In its annual report submitted pursuant to paragraph (2) of subdivision (a) of Section 65400 and submit the annual report to the relevant policy committees of the Legislature each year that the City of San Jose adopts a zoning ordinance amendment pursuant to this paragraph.
(ii)Electronically on an internet website accessible to the public by the time the zoning ordinance amendment is in effect.
(D)This paragraph shall become inoperative upon the date that the City of San Joses housing element update for the sixth cycle is due pursuant to Section 65588.
(4)This section does not prohibit an affected county or an affected city from changing a land use designation or zoning ordinance to a less intensive use on a site that is a mobilehome park, as defined in Section 18214 of the Health and Safety Code, as of the effective date of this section, and the no net loss requirement in paragraph (1) shall not apply.
(j)Notwithstanding subdivisions (b) and (f), this section does not prohibit an affected city or an affected county from enacting a development policy, standard, or condition that is intended to preserve or facilitate the production of housing for lower income households, as defined in Section 50079.5 of the Health and Safety Code, or housing types that traditionally serve lower income households, including mobilehome parks, single-room occupancy units, or units subject to any form of rent or price control through a public entitys valid exercise of its police power.
(k)The amendments to subparagraph (A) of paragraph (1) of subdivision (b), and to paragraph (1) of subdivision (i) made by the act adding this subdivision do not constitute a change in, but are declaratory of, existing law.
|
Date
|
Status
|
|---|---|
| Oct 11, 2023 | Chaptered by Secretary of State - Chapter 754, Statutes of 2023. |
| Oct 11, 2023 | Approved by the Governor. |
| Sep 21, 2023 | Enrolled and presented to the Governor at 3:30 p.m. |
| Sep 13, 2023 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 3370.). |
| Sep 12, 2023 | In Assembly. Concurrence in Senate amendments pending. |
| Sep 12, 2023 | Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0. Page 2628.). |
| Sep 11, 2023 | Read second time. Ordered to third reading. |
| Sep 7, 2023 | Read third time and amended. Ordered to second reading. |
| Aug 15, 2023 | Read second time. Ordered to third reading. |
| Aug 14, 2023 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Jul 11, 2023 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (July 10). Re-referred to Com. on APPR. |
| Jun 28, 2023 | From committee: Do pass and re-refer to Com. on HOUSING. (Ayes 5. Noes 0.) (June 28). Re-referred to Com. on HOUSING. |
| Jun 21, 2023 | 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 15, 2023 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Jun 7, 2023 | Referred to Coms. on GOV. & F. and HOUSING. |
| May 26, 2023 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 25, 2023 | Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 1740.) |
| May 11, 2023 | Read second time. Ordered to third reading. |
| May 10, 2023 | From committee: Do pass. (Ayes 15. Noes 0.) (May 10). |
| Apr 27, 2023 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (April 26). Re-referred to Com. on APPR. |
| Apr 17, 2023 | Re-referred to Com. on L. GOV. |
| Apr 13, 2023 | Read second time and amended. |
| Apr 12, 2023 | From committee: Amend, and do pass as amended and re-refer to Com. on L. GOV. (Ayes 7. Noes 1.) (April 12). |
| Mar 13, 2023 | Re-referred to Com. on H. & C.D. |
| Mar 9, 2023 | Referred to Coms. on H. & C.D. and L. GOV. |
| Mar 9, 2023 | From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended. |
| Feb 17, 2023 | From printer. May be heard in committee March 19. |
| Feb 16, 2023 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 13, 2023 | AB 1218 Lowenthal Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 12, 2023 | Assembly 3rd Reading AB1218 Lowenthal By Skinner | Senate Floor |
Passed |
|
| Jul 10, 2023 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Housing |
Passed |
|
| Jun 28, 2023 | Do pass, but first be re-referred to the Committee on [Housing] | Senate Standing Committee on Governance and Finance |
Passed |
|
| May 25, 2023 | AB 1218 Lowenthal Assembly Third Reading | Assembly Floor |
Passed |
|
| May 10, 2023 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 26, 2023 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Local Government |
Passed |
|
| Apr 12, 2023 | Do pass as amended 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
|
|---|---|---|
| Aids Healthcare Foundation | ** Support | |
| Associated General Contractors | ** Against | |
| Building Owners & Managers Association of California | ** Against | |
| California Building Industry Association | * Neutral | Apr 12, 2023 |
| California Business Properties Association | ** Against | |
| California Housing Partnership | ** Support | |
| California Rural Legal Assistance Foundation | ** Support | |
| Disability Rights California | ** Support | |
| Inland Empire Economic Partnership | ** Against | |
| Livable California | ** Support | |
| Los Angeles Area Chamber Of Commerce | ** Against | |
| Naiop California | ** Against | |
| Public Interest Law Project | ** Support | |
| western center on law & poverty | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 1218
Author:(Lowenthal)
As Amended Ver:September 7, 2023
Majority vote
SUMMARY
Amends the demolition protections for existing housing applicable to development projects.
Senate Amendments
- Specify that the provision that a housing development replace units demolished within the past five years only applies to units demolished on or after January 1, 2020;
- Specify that the requirements to replace protected units do not apply to projects that meet all of the following criteria:
- The project is an industrial use;
- The project site is entirely within a zone that does not allow residential uses;
- The zoning applicable to the project site that does not allow residential uses was adopted prior to January 1, 2022; and
- The protected units that are or were on the project site are or were nonconforming uses.
- Specify that occupants of protected units demolished pursuant to 2), above, are not eligible for relocation benefits or a right of first refusal in replacement units.
- Allow non-residential project that demolish existing units to replace those units elsewhere within the same jurisdiction.
- Remove the requirement for the Department of Housing and Community Development (HCD) to notify a city or county if the city or county has taken an action in violation of the provisions created by this bill.
- Incorporate amendments made by the Housing Budget Trailer bill (AB 129 (Budget Committee), Chapter 40, Statutes of 2023), which became effective on July 10, 2023.
COMMENTS
Demolition Protections for Existing Housing: In response to the mismatch between housing supply and demand in California, the Legislature enacted the Housing Crisis Act of 2019 (HCA) (SB 330 (Skinner), Chapter 654, Statutes of 2019) and subsequent amendments to the Act that, among other things, extended its sunset to January 1, 2030 (SB 8 (Skinner), Chapter 161, Statutes of 2021). The HCA prohibits local governments from reducing the capacity for housing development within their jurisdictions and includes demolition protections designed to ensure that there is no net reduction of housing in the state, especially affordable housing.
Under the HCA, projects cannot require the demolition of housing unless the project creates at least as many new homes, and cannot demolish affordable housing units protected by law unless the project replaces the units and allows existing residents to occupy their units until six months before construction starts. The developer must also provide relocation assistance and a right of first refusal to the residents in the new development at affordable rates.
This bill proposes to amend the HCA's demolition protections in several ways, including:
- Moving the demolition protections into its own article under the HCA chapter of Planning and Land Use law. This change will improve visibility and legibility of the law, which is currently located within a subdivision of the larger HCA.
- Applying the demolition protections for sites with protected units that are proposed to be developed for non-residential purposes (e.g., offices, retail). The non-residential development projects would be responsible to relocate displaced tenants and to replace demolished protected units. This will prevent the loss of units affordable to lower income households in the instance when a proposed development is not a housing development project. The bill includes an exception to this provision for industrial projects in non-residential zones.
- Applying the demolition protections to sites where protected housing units were demolished in the previous five years, as long as that demolition occurred after January 1, 2020. This five-year lookback provision is the same as the demolition protections contained in both housing element law and density bonus law.
- Specifying that the notice to the occupants of the proposed demolition project proponent must be written and include the date they must vacate, and their rights under this section of law. This replaces the current noticing requirements that are challenging to implement, as they are contained in a Title of the Government Code that contains 38 different sections of law.
- Requiring that the project proponent must provide written notice at least six months in advance of the date that existing occupants must vacate. This provision will help existing occupants of units to be demolished identify new accommodations.
According to the Author
"AB 1218 provides needed clarity to ensure that the replacement housing and relocation assistance provisions of SB 330 are implementable and can achieve their intended impact. Low-income tenants should be getting the relocation assistance the law promises. In addition, it makes no sense in a housing crisis as severe as California's to allow affordable housing to be lost to commercial and industrial development. Developers should have a plan to replace affordable units regardless of the type of project they are building, consistent with the rules that apply under Housing Element Law."
Arguments in Support
Supporters of this bill argue that it will address confusing and conflicting provisions of existing demolition protections. According to the Public Interest Law Project and the California Rural Legal Assistance Foundation, the bill's sponsors, "These confusing provisions make it difficult to implement the law at the local level, lead to confusion for developers, and mean that housing units may be lost despite the state's well-documented shortage of housing and displaced low-income households are not benefitting from important protections under the law."
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
- Minor and absorbable costs to the Department of Housing and Community Development (HCD).
- Local costs of an unknown amount to cities and counties to expand demolition protections to non-residential projects. These costs are not reimbursable by the state because local agencies have general authority to charge and adjust planning and permitting fees to cover their costs.
VOTES:
ASM HOUSING AND COMMUNITY DEVELOPMENT: 7-1-0
YES: Wicks, Joe Patterson, Wendy Carrillo, Gabriel, Kalra, Quirk-Silva, Ward
NO: Sanchez
ASM LOCAL GOVERNMENT: 8-0-0
YES: Aguiar-Curry, Dixon, Boerner, Pacheco, Ramos, Robert Rivas, Waldron, Wilson
ASM APPROPRIATIONS: 15-0-1
YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Addis, Lowenthal, Papan, Pellerin, Robert Rivas, Sanchez, Weber, Wilson
ABS, ABST OR NV: Mathis
ASSEMBLY FLOOR: 77-0-3
YES: Addis, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
ABS, ABST OR NV: Aguiar-Curry, Flora, Mathis
UPDATED
VERSION: September 7, 2023
CONSULTANT: Steve Wertheim / H. & C.D. / (916) 319-2085 FN: 0002216
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 1218 |
THIRD READING
Bill No: AB 1218
Author: Lowenthal (D)
Amended: 9/7/23 in Senate
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 5-0, 6/28/23
AYES: Caballero, Blakespear, Durazo, Glazer, Wiener
NO VOTE RECORDED: Seyarto, Dahle, Skinner
SENATE HOUSING COMMITTEE: 9-0, 7/10/23
AYES: Wiener, Blakespear, Caballero, Cortese, McGuire, Padilla, Skinner, Umberg, Wahab
NO VOTE RECORDED: Ochoa Bogh, Seyarto
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 77-0, 5/25/23 - See last page for vote
SUBJECT: Development projects: demolition of residential dwelling units
SOURCE: California Rural Legal Assistance Foundation
Public Interest Law Project
DIGEST:
This bill amends existing demolition protections for housing units applicable to development projects.
Senate Floor Amendments of 9/7/23 exempt certain industrial developments from the bill’s requirements, increase flexibility for projects that are not housing, and make other minor changes.
ANALYSIS: Existing law places restrictions on certain types of development standards pursuant to the Housing Crisis Act (HCA) of 2019, amends the Housing Accountability Act (HAA), and makes changes to local approval processes and the Permit Streamlining Act. Additionally, the HCA prohibits specified cities and counties from approving a housing development project that will require the demolition of residential units unless the project will create at least as many units as demolished (i.e., no net loss in housing units). A project shall not be approved if it will demolish protected units, unless all of the following apply:
- The project will replace all existing or demolished protected units.
- Any existing tenants will be allowed to occupy their unit until six months before the start of construction activities with proper notice.
- The developer agrees to provide to the occupants of any protected units both:
- Relocation benefits.
- A right of first refusal for a comparable unit available in the new housing development affordable to the household at an affordable rent or an affordable cost.
This bill:
- Moves the HCA existing demolition protections to a new stand-alone article.
- Applies the demolition protections for protected housing units to all development projects, not just housing development projects. Also, this bill specifies if the development project is not a housing development project, the proponent must ensure the required replacement housing is developed prior to, or concurrently with, the development project.
- Clarifies the demolition protections apply to existing protected units and protected units demolished on or after January 1, 2020, consistent with the enactment of the HCA.
- Applies the demolition protections to sites where protected housing units were demolished in the previous five years.
- Amends the notice requirements for existing occupants of units proposed to be demolished, to require:
- The project proponent to provide the notice to the occupants of the proposed demolition project in writing, and include the date they must vacate, and their rights under this section of law.
- The project proponent to provide the written notice at least six months before the date that existing occupants must vacate.
- Provides that a project does not have to replace the protected units, offer a first right of refusal in a new unit, or develop housing concurrently to the project if the project is (a) an industrial use; (b) located in a zone that does not allow residential uses; (c) the zoning for that site was adopted prior to January 1, 2022; and (d) the protected units that are or were on the project site are or were nonconforming uses.
- Allows required replacement housing to be located on another site within the same jurisdiction if the project is not a housing development project, and allows the project proponent to contract with another entity to develop the required replacement housing.
- Corrects a cross reference to the demolition protections moved by this bill in AB 2011 (Wicks, 2022).
- Removes changes to the section of law that establishes the ability of HCD to adopt guidelines for various housing laws in order to address chaptering amendments.
Comments
- Purpose of the bill. According to the author, “AB 1218 provides needed clarity to ensure that the replacement housing and relocation assistance provisions of SB 330 are implementable and can achieve their intended impact. Low-income tenants should be getting the relocation assistance the law promises. In addition, it makes no sense in a housing crisis as severe as California's to allow affordable housing to be lost to commercial and industrial development. Developers should have a plan to replace affordable units regardless of the type of project they are building, consistent with the rules that apply under Housing Element Law.”
- Challenges for other types of development. Currently, the HCA only requires housing projects that displace residents to replace the units they demolish as part of a new housing project. This bill applies the HCAs existing demolition protections to non-housing projects. This means commercial developers would have to replace demolished housing units. In some cases, commercial developers may not have expertise developing housing. Additionally, their commercial projects may not have housing components. This bill allows commercial developers to contract with other parties to develop the housing within the same jurisdiction, instead of developing it themselves. AB 1218 also exempts certain industrial projects from these requirements. However, this bill may still increase costs for some non-housing developments, potentially reducing some economic growth.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT: (Verified 9/11/23)
California Rural Legal Assistance Foundation (co-source)
Public Interest Law Project (co-source)
Aids Healthcare Foundation
California Housing Partnership
Disability Rights California
Livable California
Western Center on Law & Poverty
OPPOSITION: (Verified 9/11/23)
None received
ASSEMBLY FLOOR: 77-0, 5/25/23
AYES: Addis, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
NO VOTE RECORDED: Aguiar-Curry, Flora, Mathis
Prepared by: Anton Favorini-Csorba / GOV. & F. / (916) 651-4119
9/11/23 17:41:24
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 1218 |
THIRD READING
Bill No: AB 1218
Author: Lowenthal (D)
Amended: 6/21/23 in Senate
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 5-0, 6/28/23
AYES: Caballero, Blakespear, Durazo, Glazer, Wiener
NO VOTE RECORDED: Seyarto, Dahle, Skinner
SENATE HOUSING COMMITTEE: 9-0, 7/10/23
AYES: Wiener, Blakespear, Caballero, Cortese, McGuire, Padilla, Skinner, Umberg, Wahab
NO VOTE RECORDED: Ochoa Bogh, Seyarto
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 77-0, 5/25/23 - See last page for vote
SUBJECT: Development projects: demolition of residential dwelling units
SOURCE: California Rural Legal Assistance Foundation
Public Interest Law Project
DIGEST:
This bill amends existing demolition protections for housing units applicable to development projects.
ANALYSIS: Existing law places restrictions on certain types of development standards pursuant to the Housing Crisis Act (HCA) of 2019, amends the Housing Accountability Act (HAA), and makes changes to local approval processes and the Permit Streamlining Act. Additionally, the HCA prohibits specified cities and counties from approving a housing development project that will require the demolition of residential units unless the project will create at least as many units as demolished (i.e., no net loss in housing units). A project shall not be approved if it will demolish protected units, unless all of the following apply:
- The project will replace all existing or demolished protected units.
- Any existing tenants will be allowed to occupy their unit until six months before the start of construction activities with proper notice.
- The developer agrees to provide to the occupants of any protected units both:
- Relocation benefits.
- A right of first refusal for a comparable unit available in the new housing development affordable to the household at an affordable rent or an affordable cost.
This bill:
- Moves the HCA existing demolition protections to a new stand-alone article.
- Applies the demolition protections for protected housing units to all development projects, not just housing development projects. Also, this bill specifies if the development project is not a housing development project, the proponent must ensure the required replacement housing is developed prior to, or concurrently with, the development project;
- Clarifies the demolition protections apply to existing protected units and protected units demolished on or after January 1, 2020, consistent with the enactment of the HCA.
- Applies the demolition protections to sites where protected housing units were demolished in the previous five years.
- Amends the notice requirements for existing occupants of units proposed to be demolished, to require:
- The project proponent to provide the notice to the occupants of the proposed demolition project in writing, and include the date they must vacate, and their rights under this section of law.
- The project proponent to provide the written notice at least six months before the date that existing occupants must vacate.
Comments
- Purpose of the bill. According to the author, “AB 1218 provides needed clarity to ensure that the replacement housing and relocation assistance provisions of SB 330 are implementable and can achieve their intended impact. Low-income tenants should be getting the relocation assistance the law promises. In addition, it makes no sense in a housing crisis as severe as California's to allow affordable housing to be lost to commercial and industrial development. Developers should have a plan to replace affordable units regardless of the type of project they are building, consistent with the rules that apply under Housing Element Law.”
- Challenges for other types of development. Currently, the HCA only requires housing projects that displace residents to replace the units they demolish as part of a new housing project. This bill applies the HCAs existing demolition protections to non-housing projects. This means commercial and industrial developers would have to replace demolished housing units. In some cases, commercial or industrial developers may not have expertise developing housing. Additionally, their industrial or commercial projects may not have housing components. How would these commercial or industrial developers comply with this bill? While the measure specifies that, if the development project is not a housing development project, the proponent must ensure the required replacement housing is developed prior to, or concurrently with, the development project, what options does a commercial or industrial developer have to comply with this requirement? Should developers not familiar with housing have other options to comply with anti-displacement requirements? Will this bill have the effect of stopping some non-housing projects because their proponents do not have the expertise to comply with the bill’s requirements?
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT: (Verified 8/16/23)
California Rural Legal Assistance Foundation (co-source)
Public Interest Law Project (co-source)
Aids Healthcare Foundation
California Housing Partnership
Disability Rights California
Livable California
Western Center on Law & Poverty
OPPOSITION: (Verified 8/16/23)
Associated General Contractors
Building Owners & Managers Association California
California Business Properties Association
Inland Empire Economic Partnership
Los Angeles Area Chamber of Commerce
NAIOP California
ASSEMBLY FLOOR: 77-0, 5/25/23
AYES: Addis, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
NO VOTE RECORDED: Aguiar-Curry, Flora, Mathis
Prepared by: Anton Favorini-Csorba / GOV. & F. / (916) 651-4119
8/16/23 14:16:49
**** END ****
SENATE COMMITTEE ON HOUSING
Senator Scott Wiener, Chair
2023 - 2024 Regular
Bill No: AB 1218 Hearing Date: 7/10/2023
Author: | Lowenthal | ||
Version: | 6/21/2023 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Alison Hughes | ||
SUBJECT: Development projects: demolition of residential dwelling units
DIGEST: This bill amends existing demolition protections for housing units applicable to development projects.
ANALYSIS:
Existing law, pursuant to the Housing Crisis Act (HCA) of 2019, places restrictions on certain types of development standards, amends the Housing Accountability Act (HAA), and makes changes to local approval processes and the Permit Streamlining Act. Additionally, the HCA:
- Prohibits specified cities and counties from approving a housing development project that will require the demolition of residential units unless the project will create at least as many units as demolished (i.e., no net loss in housing units). A project shall not be approved if it will demolish protected units, unless all of the following apply:
- The project will replace all existing or demolished protected units.
- Any existing tenants will be allowed to occupy their unit until six months before the start of construction activities with proper notice.
- The developer agrees to provide both of the following to the occupants of any protected units:
- Relocation benefits.
- A right of first refusal for a comparable unit available in the new housing development affordable to the household at an affordable rent or an affordable cost.
This bill:
- Moves the HCA existing demolition protections to a new stand-alone article.
- Applies the demolition protections for protected housing units to all development projects, not just housing development projects. The bill also specifies if the development project is not a housing development project, the proponent must ensure the required replacement housing is developed prior to, or concurrently with, the development project;
- Clarifies the demolition protections apply to existing protected units and protected units demolished on or after January 1, 2020, consistent with the enactment of the HCA.
- Applies the demolition protections to sites where protected housing units were demolished in the previous five years.
- Amends the notice requirements for existing occupants of units proposed to be demolished, to require:
- The project proponent to provide the notice to the occupants of the proposed demolition project in writing, and include the date they must vacate, and their rights under this section of law.
- The project proponent to provide the written notice at least six months before the date that existing occupants must vacate.
COMMENTS:
- Author’s statement. “AB 1218 provides needed clarity to ensure that the replacement housing and relocation assistance provisions of SB 330 are implementable and can achieve their intended impact. Low-income tenants should be getting the relocation assistance the law promises. In addition, it makes no sense in a housing crisis as severe as California's to allow affordable housing to be lost to commercial and industrial development. Developers should have a plan to replace affordable units regardless of the type of project they are building, consistent with the rules that apply under Housing Element Law.”
- California’s Housing Crisis. California has the largest concentration of severely unaffordable housing markets in the nation and the statewide average home value reached a new record in June 2022 at $793,300. To keep up with demand, HCD estimates that California must plan for the development of more than 2.5 million homes over the next eight years, and no less than one million of those homes must meet the needs of lower-income households (more than 640,000 very low-income and 385,000 low-income units are needed). For decades, not enough housing was constructed to meet need, resulting in a severe undersupply of housing.
As a result of the severe housing shortage, millions of Californians, who are disproportionately lower-income and people of color, must make hard decisions about paying for housing at the expense of food, health care, child care, and transportation—one in three households in the state don’t earn enough money to meet their basic needs. A lack of affordable housing is the biggest contributor to homelessness. As housing costs continue to rise, rent becomes less affordable for lower-income households, who are forced to live beyond their means (paying more than 30% of income on housing costs) or are pushed out of their homes, leading to rapid increases in homelessness. Variation in rates of homelessness cannot be explained by variation in rates of individual factors such as poverty or mental illness, however, cities with higher rents and lower rental vacancy rates (i.e., tighter housing markets) are directly linked to higher per capita rates of homelessness.
- HCA and housing demolition protections. In response to the housing crisis, the Legislature enacted the Housing Crisis Act of 2019 (HCA) (SB 330 (Skinner, Chapter 654, Statutes of 2019) and subsequent amendments to the Act that, among other things, extended its sunset to January 1, 2030 (SB 8 (Skinner, Chapter 161, Statutes of 2021)). The HCA prohibits local governments from reducing the capacity for housing development within their jurisdictions and includes demolition protections designed to ensure that there is no net reduction of housing in the state, especially affordable housing.
Under the HCA, projects cannot require the demolition of housing unless the project creates at least as many new homes, and cannot demolish affordable housing units protected by law unless the project replaces the units and allows existing residents to occupy their units until six months before construction starts. The developer must also provide relocation assistance and a right of first refusal to the residents in the new development at affordable rates.
- Expanding existing housing demolition protections. This bill moves the demolition protections to a new stand-alone article in the HCA and makes the following changes:
- Applies the demolition protections for sites with protected units that are proposed to be developed for non-residential purposes (e.g., offices, retail, warehouses). The non-residential development projects would be responsible to relocate displaced tenants and to replace demolished protected units. This will prevent the loss of units affordable to lower-income households in the instance when a proposed development is not a housing development project.
- Applies the demolition protections to sites where protected housing units were demolished in the previous five years. This five-year lookback provision is the same as the demolition protections contained in both housing element law and density bonus law.
- Specifies that the notice to the occupants of the proposed demolition project proponent must be written and include the date they must vacate, and their rights under this section of law. This replaces the current noticing requirements that are challenging to implement.
- Requires that the project proponent must provide written notice at least six months in advance of the date that existing occupants must vacate. This provision will help existing occupants of units to be demolished identify new accommodations.
- Opposition. The California Business Properties Association are opposed to provisions that require commercial developers to replace demolished housing units. They are concerned that these developers don’t build residential units, and that the units may not be appropriate to be constructed on site.
- Here, there, and everywhere. This bill was heard in the Governance and Finance Committee on June 28 and passed on a 5-0 vote.
Related Legislation:
SB 8 (Skinner, Chapter 161, Statutes of 2022) — extended the sunset on the HCA of 2019 by five years, to January 1, 2030, and makes other changes.
SB 330 (Skinner, Chapter 654, Statutes of 2019) — established the Housing Crisis Act of 2019, which, until January 1, 2025, places restrictions on certain types of development standards, amended the Housing Accountability Act (HAA), and made changes to local approval processes and the Permit Streamlining Act.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
POSITIONS: (Communicated to the committee before noon on Wednesday,
July 5, 2023.)
SUPPORT:
California Rural Legal Assistance Foundation (Co-Sponsor)
Public Interest Law Project (Co-Sponsor)
California Housing Partnership
Disability Rights California
Livable California
Western Center on Law & Poverty
OPPOSITION:
California Business Properties Association
-- END --
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Anna M. Caballero, Chair
2023 - 2024 Regular
Bill No: | AB 1218 | Hearing Date: | 6/28/23 |
Author: | Lowenthal | Tax Levy: | No |
Version: | 6/21/23 | Fiscal: | Yes |
Consultant: | Peterson | ||
Development projects: demolition of residential dwelling units
Amends existing demolition protections for housing applicable to development projects.
Background
Planning and approving new housing is mainly a local responsibility. The California Constitution allows cities and counties to “make and enforce within its limits, all local, police, sanitary and other ordinances and regulations not in conflict with general laws.” It is from this fundamental power (commonly called the police power) that cities and counties derive their authority to regulate behavior to preserve the health, safety, and welfare of the public—including land use authority.
Planning and Zoning Law. State law provides additional powers and duties for cities and counties regarding land use. The Planning and Zoning Law requires every county and city to adopt a general plan that sets out planned uses for all of the area covered by the plan. A general plan must include specified mandatory “elements,” including a housing element that establishes the locations and densities of housing, among other requirements. Cities’ and counties’ major land use decisions—including most zoning ordinances and other aspects of development permitting—must be consistent with their general plans. The Planning and Zoning Law also establishes a planning agency in each city and county, which may be a separate planning commission, administrative body, or the legislative body of the city or county itself. Cities and counties must provide a path to appeal a decision to the planning commission and/or the city council or county board of supervisors.
Zoning and approval processes. Local governments use their police power to enact zoning ordinances that shape development, such as setting maximum heights and densities for housing units, minimum numbers of required parking spaces, setbacks to preserve privacy, lot coverage ratios to increase open space, and others. These ordinances can also include conditions on development to address aesthetics, community impacts, or other particular site-specific considerations.
Local governments have broad authority to define the specific approval processes needed to satisfy these considerations. Typically, most large housing projects require “discretionary” approvals from local governments, such as a conditional use permit or a change in zoning laws. This process requires hearings by the local planning commission, public notice, and may require additional approvals. City or county planning staff can permit some housing projects “ministerially” or “by right” without discretionary approval from elected officials.
State housing laws. The Legislature has enacted a variety of statutes to facilitate and encourage the provision of housing, particularly affordable housing and housing to support individuals with disabilities or other needs. Among them is the Housing Accountability Act (HAA), enacted in 1982 in response to concerns over a growing rejection of housing development by local governments due to not-in-my-backyard (NIMBY) sentiments among local residents (SB 2011, Greene). The HAA, also known as the “Anti-NIMBY” legislation, restricts a local agency’s ability to disapprove, or require density reductions in, housing projects that devote at least 2/3rds of their floor area to residential units.
To build on the HAA and other recent housing legislation intended to streamline development, the Legislature enacted SB 330 (Skinner, 2019), the Housing Crisis Act of 2019 (HCA). The HCA had several main components:
- Prohibits certain local actions that would reduce housing capacity. The HCA prohibits downzoning unless the city or county concurrently upzones an equal amount elsewhere so there is no net loss in residential capacity. It also voids certain local policies that limit growth, including building moratoria, caps on the numbers of units that can be approved, and population limits;
- Prohibits a local agency from imposing design standards that are not objective if those standards were adopted after January 1, 2020;
- Prohibits a local agency from applying new rules or standards to a project after a preliminary application containing specified information is submitted. The local agency must also make any required determinations on whether a project site is a historic site when a complete preliminary application is filed. However, if the project significantly changes, local agencies may apply new rules;
- Requires local agencies to exhaustively list all information needed to make a development application complete under the Permit Streamlining Act, limits that list to only those items on the checklist for application required by state law, and prohibits the local agency from requiring additional information. The checklist information must also be posted online;
- Establishes a cap of five hearings that can be conducted on a project that complies with objective local standards in place at the time a development application is deemed complete; and
- Establishes certain anti-displacement protections.
SB 8 (Skinner, 2021) extended the sunset on the Housing Crisis Act of 2019 by five years, to January 1, 2030, and provides that until January 1, 2034, the HCA’s provisions apply to a housing development project that submits a preliminary application before January 1, 2030.
Under the HCA an affected city or county must not approve a housing development project that requires the demolition of one or more residential units unless the project creates at least as many residential units as it will demolish. Furthermore, a city or county must not approve a housing development project that requires the demolition of occupied or vacant protected units unless all the following apply:
- The project will replace all existing or demolished protected units, and any protected units replaced must be considered in determining whether the projects meets inclusionary requirements.
- The project will include at least as many residential units as the greatest number of residential units that existed on the site within the last five years.
- Any existing occupants will be allowed to occupy their units until six months before the start of construction with proper notice, and any existing occupants required to leave must be allowed to return at their prior rental rate if the demolition does not proceed and the property returns to the rental market.
- The developer agrees to provide existing lower-income occupants of protected units relocation benefits and a right of first refusal for a comparable unit in the new housing development at an affordable cost, except as otherwise provided.
These provisions applied to cities that the Department of Housing and Community Development (HCD) determine to be in an urbanized area or urban cluster as designated by the U.S. Census, but does not include any city with a population of 5,000 or less, and is not located within an urbanized area. They also applied to counties that meet U.S. designations for urbanized areas.
California’s housing challenges. California faces a severe housing shortage. In its most recent statewide housing assessment, (HCD estimated California needs to build an additional 100,000 units per year over recent averages of 80,000 units per year to meet the projected need for housing in the state. Many causes have contributed to the lack of housing production. Recent reports by the Legislative Analyst’s Office (LAO) and others point to local approval processes as a major factor. They argue local governments control most of the decisions about where, when, and how to build new housing, and those governments are quick to respond to vocal community members who may not want new neighbors. The building industry also points to required reviews under the California Environmental Quality Act (CEQA), and housing advocates note a lack of a dedicated source of funds for affordable housing.
The Public Interest Law Project and the California Rural Legal Assistance Foundation want to recast the anti-demolition provisions of the HCA to reduce confusion and address conflicting provisions of existing demolition protections.
Proposed Law
Assembly Bill 1218 moves the HCA’s existing demolition protections to a new article and makes the following changes to these protections:
- Applies the demolition protections for protected housing units to all development projects, not just housing development projects. The measure also specifies if the development project is not a housing development project, the proponent must ensure the required replacement housing is developed prior to, or concurrently with, the development project;
- Clarifies the demolition protections apply to existing protected units and protected units demolished on or after January 1, 2020;
- Applies the demolition protections to sites where protected housing units were demolished in the previous five years; and
- Amends the notice requirements for existing occupants of units proposed to be demolished, to require:
- The project proponent to provide the notice to the occupants of the proposed demolition project in writing, and include the date they must vacate, and their rights under this section of law.
- The project proponent to provide the written notice at least six months before the date that existing occupants must vacate.
AB 1218 also expands the requirement that HCD must notify the local agency, and may also notify the Attorney General, about violations of state law that it finds in the housing element process to include actions in violation of the bill’s provisions.
The measure also makes technical changes, and defines its terms.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill. According to the author, “AB 1218 provides needed clarity to ensure that the replacement housing and relocation assistance provisions of SB 330 are implementable and can achieve their intended impact. Low-income tenants should be getting the relocation assistance the law promises. In addition, it makes no sense in a housing crisis as severe as California's to allow affordable housing to be lost to commercial and industrial development. Developers should have a plan to replace affordable units regardless of the type of project they are building, consistent with the rules that apply under Housing Element Law.”
2. Sure, but will it work? Currently, the HCA only requires housing projects that displace residents to replace the units they demolish as part of a new housing project. AB 1218 applies the HCAs existing demolition protections to non-housing projects. This means commercial and industrial developers would have to replace demolished housing units. In some cases, commercial or industrial developers may not have expertise developing housing. Additionally, their industrial or commercial projects may not have housing components. How would these commercial or industrial developers comply with AB 1218? While the measure specifies that, if the development project is not a housing development project, the proponent must ensure the required replacement housing is developed prior to, or concurrently with, the development project, what options does a commercial or industrial developer have to comply with this requirement? Should developers not familiar with housing have other options to comply with anti-displacement requirements? For example, could a developer partner with a nonprofit to provide replacement housing to displaced individuals? The Committee may wish to consider whether the measure provides sufficient options for these developers to comply with the bill’s requirements.
3. Mandate. The California Constitution requires the state to reimburse local governments for the costs of new or expanded state mandated local programs. Because AB 1218 imposes new duties on local officials, Legislative Counsel says that it imposes a new state mandate. AB 1218 disclaims the state's responsibility for providing reimbursement by citing local governments’ authority to charge for the costs of implementing the bill's provisions.
4. Coming and going. The Senate Rules Committee has ordered a double referral of AB 1218: first to the Senate Governance and Finance Committee to hear issues related to land use, and second to the Senate Housing Committee.
Assembly Actions
Assembly Housing and Community Development Committee: 7-1
Assembly Local Government Committee: 8-0
Assembly Appropriations Committee: 15-0
Assembly Floor: 77-0
Support and Opposition
(6/23/23)
Support: California Rural Legal Assistance Foundation, INC. (Sponsor)
Public Interest Law Project (Sponsor)
Aids Healthcare Foundation
California Housing Partnership
Disability Rights California
Western Center on Law & Poverty, INC.
Opposition: California Business Properties Association
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 1218
Author:(Lowenthal)
As Amended Ver:April 13, 2023
Majority vote
SUMMARY
Amends the demolition protections for existing housing applicable to development projects.
Major Provisions
- Moves the existing demolition protections for housing developments into their own Article within the Housing Crisis Act of 2019 chapter of Planning and Land Use law.
- Applies the demolition protections for protected housing units to all development projects. Further specifies that if the development project is not a housing development project, the proponent must ensure that the required replacement housing is developed prior to or concurrently with the development project.
- Applies the demolition protections to sites where protected housing units were demolished in the previous five years.
- Amends the noticing requirements for existing occupants in units proposed to be demolished, as follows:
- Specifies that notice to the occupants of the proposed demolition project proponent must be written and include the date they must vacate, and their rights under this section of law; and
- Requires that the project proponent must provide the written notice at least six months in advance of the date that existing occupants must vacate.
COMMENTS
California's Housing Crisis: California is in the midst of a housing crisis. Only 17% of households can afford to purchase the median priced single-family home – less than half of the national average, and also less than half of the rate at the start of the pandemic.[1] Over two-thirds of low-income renters are paying more than 30% of their income toward housing, a "rent burden" that means they have to sacrifice other essentials such as food, transportation, and health care.[2] In 2022, over 170,000 Californians experienced homelessness on a given night.[3] Californians rank housing affordability and homelessness as the two most important issues for the state to address.[4]
A major cause of our housing crisis is the mismatch between the supply of housing and the need for housing. The Statewide Housing Plan adopted by the Department of Housing and Community Development (HCD) in 2022 found that California needs approximately 2.5 million units of housing, including one million units affordable to lower income households, in order to address this mismatch over the next eight years.[5] That would require production of over 300,000 units a year, including over 120,000 units a year of housing affordable to lower income households. By contrast, production in the past decade has been under 100,000 units per year – including less than 10,000 units of affordable housing per year.[6]
Demolition Protections for Existing Housing: In response to the mismatch between housing supply and demand, the Legislature enacted the Housing Crisis Act of 2019 (HCA) (SB 330 (Skinner), Chapter 654, Statutes of 2019) and subsequent amendments to the Act that, among other things, extended its sunset to January 1, 2030 (SB 8 (Skinner), Chapter 161, Statutes of 2021). The HCA prohibits local governments from reducing the capacity for housing development within their jurisdictions and includes demolition protections designed to ensure that there is no net reduction of housing in the state, especially affordable housing.
Under the HCA, projects cannot require the demolition of housing unless the project creates at least as many new homes, and cannot demolish affordable housing units protected by law unless the project replaces the units and allows existing residents to occupy their units until six months before construction starts. The developer must also provide relocation assistance and a right of first refusal to the residents in the new development at affordable rates.
This bill proposes to amend the HCA's demolition protections in several ways, including:
- Moving the demolition protections into its own article under the HCA chapter of Planning and Land Use law. This change will improve visibility and legibility of the law, which is currently located within a subdivision of the larger HCA.
- Applying the demolition protections for sites with protected units that are proposed to be developed for non-residential purposes (e.g., offices, retail). The non-residential development projects would be responsible to relocate displaced tenants and to replace demolished protected units. This will prevent the loss of units affordable to lower income households in the instance when a proposed development is not a housing development project. Because it would require a non-residential project to have a residential component, it could serve as a substantial barrier for non-residential projects that seek to demolish residential units.
- Applying the demolition project to sites where protected housing units were demolished in the previous five years. This five-year lookback provision is the same as the demolition protections contained in both housing element law and density bonus law.
- Specifying that the notice to the occupants of the proposed demolition project proponent must be written and include the date they must vacate, and their rights under this section of law. This replaces the current noticing requirements that are challenging to implement, as they are contained in a Title of the Government Code that contains 38 different sections of law.
Requiring that the project proponent must provide written notice at least six months in advance of the date that existing occupants must vacate. This provision will help existing occupants of units to be demolished identify new accommodations.
According to the Author
"AB 1218 provides needed clarity to ensure that the replacement housing and relocation assistance provisions of SB 330 are implementable and can achieve their intended impact. Low-income tenants should be getting the relocation assistance the law promises. In addition, it makes no sense in a housing crisis as severe as California's to allow affordable housing to be lost to commercial and industrial development. Developers should have a plan to replace affordable units regardless of the type of project they are building, consistent with the rules that apply under Housing Element Law."
Arguments in Support
Supporters of the bill argue that it will address confusing and conflicting provisions of existing demolition protections. According to the Public Interest Law Project and the California Rural Legal Assistance Foundation, the bill's sponsors, "These confusing provisions make it difficult to implement the law at the local level, lead to confusion for developers, and mean that housing units may be lost despite the state's well-documented shortage of housing and displaced low-income households are not benefitting from important protections under the law."
Arguments in Opposition
The California Building Industry Association expressed concern that this bill would remove the sunset on the anti-demolition provisions of the HCA but not remove the sunset on the pro-production aspects of the HCA. This concern was addressed by the amendments taken on April 13, 2023, which restored the sunset provision to the anti-demolition protections.
FISCAL COMMENTS
According to the Assembly Committee on Appropriations:
- Minor and absorbable costs to the Department of Housing and Community Development (HCD).
- Local costs of an unknown amount to cities and counties to expand demolition protections to non-residential projects. These costs are not reimbursable by the state because local agencies have general authority to charge and adjust planning and permitting fees to cover their costs.
VOTES
ASM HOUSING AND COMMUNITY DEVELOPMENT: 7-1-0
YES: Wicks, Joe Patterson, Wendy Carrillo, Gabriel, Kalra, Quirk-Silva, Ward
NO: Sanchez
ASM LOCAL GOVERNMENT: 8-0-0
YES: Aguiar-Curry, Dixon, Boerner, Pacheco, Ramos, Robert Rivas, Waldron, Wilson
ASM APPROPRIATIONS: 15-0-1
YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Addis, Lowenthal, Papan, Pellerin, Robert Rivas, Sanchez, Weber, Wilson
ABS, ABST OR NV: Mathis
UPDATED
VERSION: April 13, 2023
CONSULTANT: Steve Wertheim / H. & C.D. / (916) 319-2085 FN: 0000364
California Association of Realtors Housing Affordability Index. Data for the 4th quarter of 2022. https://www.car.org/marketdata/data/haitraditional ↑
Per the California Housing Partnership's Housing Needs Dashboard, update May 2022: https://chpc.net/housingneeds/ ↑
US Department of Housing and Urban Development, "The 2022 Annual Homelessness Assessment Report (AHAR) to Congress": https://www.huduser.gov/portal/sites/default/files/pdf/2022-AHAR-Part-1.pdf ↑
UC Berkeley's Institute of Governmental Studies, April 2022: https://escholarship.org/uc/item/7sn293xs ↑
HCD, March 2022, "California Statewide Housing Plan: A Home for Every Californian": https://storymaps.arcgis.com/stories/94729ab1648d43b1811c1698a748c136 ↑
https://www.hcd.ca.gov/policy-research/housing-challenges.shtml ↑
Date of Hearing: May 10, 2023
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Chris Holden, Chair
ABPCA Bill Id:AB 1218
Author:(Lowenthal) – As Amended Ver:April 13, 2023
Policy Committee: | Housing and Community Development | Vote: | 7 - 1 |
Local Government | 8 - 0 | ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill expands demolition protections for protected housing units to all development projects.
Specifically, this bill:
- Moves the existing demolition protections for housing developments into their own chapter under Planning and Land Use law.
- Applies the demolition protections for protected housing units to all development projects. Further specifies that if the development project is not a housing development project, the proponent must ensure the required replacement housing is developed prior to or concurrently with the development project.
- Applies the demolition protections to sites where protected housing units were demolished in the previous five years.
- Amends the noticing requirements for existing occupants in units proposed to be demolished, as follows:
- Specifies notice to the occupants of the proposed demolition project proponent must be written and include the date they must vacate, and their rights under this section of law.
- Requires the project proponent must provide the written notice at least six months in advance of the date that existing occupants must vacate.
FISCAL EFFECT:
- Minor and absorbable costs to the Department of Housing and Community Development (HCD).
- Local costs of an unknown amount to cities and counties to expand demolition protections to non-residential projects. These costs are not reimbursable by the state because local agencies have general authority to charge and adjust planning and permitting fees to cover their costs.
COMMENTS:
- Purpose. According to the author:
[This bill] provides needed clarity to ensure that the replacement housing and relocation assistance provisions of SB 330 are implementable and can achieve their intended impact. Low-income tenants should be getting the relocation assistance the law promises. In addition, it makes no sense in a housing crisis as severe as California’s to allow affordable housing to be lost to commercial and industrial development. Developers should have a plan to replace affordable units regardless of the type of project they are building, consistent with the rules that apply under Housing Element Law.
- Background. Research shows a major cause of the state’s housing crisis is the mismatch between the supply of housing and the need for housing. The Statewide Housing Plan adopted by HCD in 2022 found that California needs approximately 2.5 million units of housing, including one million units affordable to lower income households, to address this mismatch over the next eight years. That would require production of over 300,000 units a year, including over 120,000 units a year of housing affordable to lower income households. By contrast, production in the past decade has been under 100,000 units per year – including less than 10,000 units of affordable housing per year.
In response to the shortage of housing units, the Legislature enacted the Housing Crisis Act of 2019 (HCA) (SB 330 (Skinner) Chapter 654, Statutes of 2019), which prohibits a local government from approving a housing development project that requires the demolition of one or more residential dwelling units, unless the project creates at least as many residential dwelling units as will be demolished. In addition, projects cannot demolish affordable housing units protected by law unless the project replaces the units and allows existing residents to occupy their units until six months before construction starts. The developer must also provide relocation assistance and a right of first refusal to the residents in the new development at affordable rates. The HCA sunsets on January 1, 2030.
This bill proposes to expand the HCA’s demolition protections to include non-residential developments, provide a five-year lookback provision similar to the demolition protections in housing element and density bonus law, and enhance occupant notification requirements.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: April 26, 2023
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cecilia Aguiar-Curry, Chair
ABPCA Bill Id:AB 1218 (
Author:Lowenthal) – As Amended Ver:April 13, 2023
SUBJECT: Development projects: demolition of residential dwelling units.
SUMMARY: Amends the existing demolition protections for housing applicable to development projects. Specifically, this bill:
- Moves the existing demolition protections for housing developments into a separate article under the Housing Crisis Act of 2019 (HCA) and makes the following substantive changes to the protections:
- Applies the demolition protections for protected housing units to all development projects. Further specifies that if the development project is not a housing development project, the proponent must ensure that the required replacement housing is developed prior to or concurrently with the development project.
- Applies the demolition protections to sites where protected housing units were demolished in the previous five years.
- Amends the noticing requirements for existing occupants in units proposed to be demolished, as follows:
- Specifies that notice to the occupants of the proposed demolition project proponent must be written and include the date they must vacate, and their rights under this section of law.
- Requires that the project proponent must provide the written notice at least six months in advance of the date that existing occupants must vacate.
- Updates cross references in various sections of Housing Element Law to reflect the creation of the new article in the HCA.
- Provides that no reimbursement is required by this bill, pursuant to Section 6 of Article XIII B 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 bill.
EXISTING LAW:
- Establishes the HCA, which includes the following provisions:
- Applies to development projects that are at least two-thirds residential in “affected cities and counties,” which include all but the most rural cities and unincorporated areas in the state.
- Defines “protected unit” to mean residential dwelling units that meet any of the following:
- Are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years.
- Are or were subject to any form of rent or price control through a public entity’s valid exercise of its police power within the past five years.
- Are or were rented by lower or very low income households within the past five years.
- Were withdrawn from rent or lease in accordance with the Ellis Act within the past 10 years.
- Includes demolitions protections, including the following:
- Prohibits an affected city or county from approving a housing development project that will require the demolition of one or more residential dwelling units, unless the project will create at least as many residential dwelling units as will be demolished.
- Prohibits an affected city or county from approving a housing development project that will require the demolition of occupied or vacant protected units, unless all of the following apply:
- The project will replace all existing or demolished protected units, as specified.
- The project will include at least as many residential dwelling units as the greatest number of residential dwelling units that existed on the project site within the last five years.
- Any existing occupants will be allowed to occupy their units until six months before the start of construction activities with proper notice, as specified.
- The developer agrees to provide the existing occupants of any protected units that are lower income households both specified location benefits and a specified right of first refusal in a comparable unit in the new development.
- Provides sunset provisions for the demolition protections and other provisions of the HCA, including that:
- The Act applies to a housing development project that submits a preliminary application before January 1, 2030.
- The Act remains in effect only until January 1, 2034, and as of that date is repealed (Government Code (GC) § 66300-66301).
- Requires local governments, for any site identified in their Housing Elements as being suitable for development, to prohibit the demolition of any sites with existing rental housing units or on which rental housing units have been demolished in the past five years, and any of the rental housing units meet the definition of “protected unit” above, unless the proposed housing development replaces those units (GC § 65583.2).
- Prohibits the utilization of the state density bonus on sites where rental housing units have been demolished in the past five years, and any of the rental housing units meet the definition of “protected unit” unless the proposed housing development replaces those units (GC § 65915).
FISCAL EFFECT: This bill is keyed fiscal, and contains a state-mandated local program.
COMMENTS:
- Bill Summary and Author’s Statement. This bill proposes to amend the HCA’s demolition protections in several substantive ways, including:
- Applying the demolition protections for sites with protected units that are proposed to be developed for non-residential purposes (e.g., offices, retail). The non-residential development projects would be responsible to relocate displaced tenants and to replace demolished protected units. This will prevent the loss of units affordable to lower income households in the instance when a proposed development is not a housing development project.
- Applying the demolition protections to sites where protected housing units were demolished in the previous five years. This five-year lookback provision is the same as the demolition protections contained in both housing element law and density bonus law.
- Specifying that the notice to the occupants of a development proposed for demolition must be written and include the date they must vacate, and their rights under this section of law.
- Requiring that the project proponent must provide written notice at least six months in advance of the date that existing occupants must vacate.
According to the author, “AB 1218 provides needed clarity to ensure that the replacement housing and relocation assistance provisions of SB 330 are implementable and can achieve their intended impact. Low-income tenants should be getting the relocation assistance the law promises. In addition, it makes no sense in a housing crisis as severe as California’s to allow affordable housing to be lost to commercial and industrial development. Developers should have a plan to replace affordable units regardless of the type of project they are building, consistent with the rules that apply under Housing Element Law.”
This bill is sponsored by the California Rural Legal Assistance Foundation and the Public Interest Law Project.
- California’s Housing Crisis. California faces a severe housing shortage. A variety of causes have contributed to the lack of housing production. Recent reports by the Legislative Analyst’s Office and others point to local approval processes as a major factor. They argue that local governments control most of the decisions about where, when, and how to build new housing, and those governments are quick to respond to vocal community members that may not want new neighbors. The building industry also points to CEQA review as an impediment, and housing advocates note a lack of a dedicated source of funds for affordable housing.
A major cause of our housing crisis is the mismatch between the supply of housing and the need for housing. The Statewide Housing Plan adopted by the Department of Housing and Community Development in 2022 found that California needs approximately 2.5 million units of housing, including one million units affordable to lower income households, in order to address this mismatch over the next eight years. That would require production of over 300,000 units a year, including over 120,000 units a year of housing affordable to lower income households. By contrast, production in the past decade has been under 100,000 units per year – including less than 10,000 units of affordable housing per year.
- Demolition Protections for Existing Housing. In response to the mismatch between housing supply and demand, the Legislature enacted the HCA (SB 330, Skinner, Chapter 654, Statutes of 2019). Subsequent amendments to the Act, among other things, extended its sunset to January 1, 2030 (SB 8, Skinner, Chapter 161, Statutes of 2021). The HCA includes provisions that prohibit local governments from reducing the capacity for housing development within their jurisdictions and includes demolition protections designed to ensure that there is no net reduction of housing in the state, especially affordable housing.
Under the HCA, projects cannot require the demolition of housing unless the project creates at least as many new homes, and cannot demolish affordable housing units protected by law unless the project replaces the units and allows existing residents to occupy their units until six months before construction starts. The developer must also provide relocation assistance and a right of first refusal to the residents in the new development at affordable rates.
- Previous Legislation. SB 8 (Skinner), Chapter 161, Statutes of 2021, extended the sunset on the HCA by five years and made a number of minor changes to the Act, including clarifying the provisions for demolition and replacement.
SB 330 (Skinner), Chapter 654, Statutes of 2019, enacted the HCA, which among other provisions, restricted actions by cities and counties that would reduce the production of housing, including demolition of housing that would result in less total units and less units affordable to lower income households.
- Double-Referral. This bill is double-referred to the Committee on Housing and Community Development where it passed on a 7-1 vote on April 12, 2023.
- Arguments in Support. Disability Rights California writes in support of the bill, “AB 1218 would clarify language requiring relocation assistance for low-income households directly displaced by new development to ensure that people receive this assistance. It would additionally apply the same five-year lookback that applies to other replacement housing laws to ensure that developers do not skirt the requirement by demolishing housing units prior to filing a development application. The bill would also apply the replacement housing requirements to any type of development project for consistency with Housing Element Law and to ensure no net loss of affordable housing.”
- Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
California Rural Legal Assistance Foundation [SPONSOR]
Public Interest Law Project [SPONSOR]
Aids Healthcare Foundation
California Housing Partnership
Disability Rights California
Western Center on Law & Poverty
Opposition
None on file
Analysis Prepared by: Hank Brady / L. GOV. / (916) 319-3958
Date of Hearing: April 12, 2023
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Buffy Wicks, Chair
ABPCA Bill Id:AB 1218 (
Author:Lowenthal) – As Amended Ver:March 9, 2023
SUBJECT: Development projects: demolition of residential dwelling units
SUMMARY: Amends the demolition protections for existing housing applicable to development projects. Specifically, this bill:
- Moves the existing demolition protections for housing developments into their own chapter under Planning and Land Use law.
- Applies the demolition protections for protected housing units to all development projects. Further specifies that if the development project is not a housing development project, the proponent must ensure that the required replacement housing is developed prior to or concurrently with the development project.
- Applies the demolition protections to sites where protected housing units were demolished in the previous five years.
- Amends the noticing requirements for existing occupants in units proposed to be demolished, as follows:
- Specifies that notice to the occupants of the proposed demolition project proponent must be written and include the date they must vacate, and their rights under this section of law; and
- Requires that the project proponent must provide the written notice at least six months in advance of the date that existing occupants must vacate.
- Removes the sunset provisions for the demolition protections.
EXISTING LAW:
- Establishes the Housing Crisis Act of 2019, which includes the following provisions:
- Applies to development projects that are at least two-thirds residential in “affected cities and counties,” which include all but the most rural cities and unincorporated areas in the state.
- Defines “protected unit” to mean residential dwelling units that meet any of the following:
- Are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years;
- Are or were subject to any form of rent or price control through a public entity’s valid exercise of its police power within the past five years;
- Are or were rented by lower or very low income households within the past five years; and
- Were withdrawn from rent or lease in accordance with the Ellis Act within the past 10 years.
- Includes demolitions protections, including the following:
- Prohibits an affected city or county from approving a housing development project that will require the demolition of one or more residential dwelling units, unless the project will create at least as many residential dwelling units as will be demolished.
- Prohibits an affected city or county from approving a housing development project that will require the demolition of occupied or vacant protected units, unless all of the following apply:
- The project will replace all existing or demolished protected units, as specified;
- The project will include at least as many residential dwelling units as the greatest number of residential dwelling units that existed on the project site within the last five years;
- Any existing occupants will be allowed to occupy their units until six months before the start of construction activities with proper notice, as specified; and
- The developer agrees to provide the existing occupants of any protected units that are lower income households both specified location benefits and a specified right of first refusal in a comparable unit in the new development.
- Provides sunset provisions for the demolition protections and other provisions of the Housing Crisis Act of 2019, including that:
- The Act applies to a housing development project that submits a preliminary application before January 1, 2030; and
- The Act remains in effect only until January 1, 2034, and as of that date is repealed. (Government Code (GC) Sections 66300-66301)
- Requires local governments, for any site identified in their Housing Elements as being suitable for development, to prohibit the demolition of any sites with existing rental housing units or on which rental housing units have been demolished in the past five years, and any of the rental housing units meet the definition of “protected unit” in (1)(b) above, unless the proposed housing development replaces those units. (GC Section 65583.2)
- Prohibits the utilization of the state density bonus on sites where rental housing units have been demolished in the past five years, and any of the rental housing units meet the definition of “protected unit” in (1)(b) above, unless the proposed housing development replaces those units. (GC Section 65915)
FISCAL EFFECT: Unknown.
COMMENTS:
Author’s Statement: According to the author, “AB 1218 provides needed clarity to ensure that the replacement housing and relocation assistance provisions of SB 330 are implementable and can achieve their intended impact. Low-income tenants should be getting the relocation assistance the law promises. In addition, it makes no sense in a housing crisis as severe as California’s to allow affordable housing to be lost to commercial and industrial development. Developers should have a plan to replace affordable units regardless of the type of project they are building, consistent with the rules that apply under Housing Element Law.”
California’s Housing Crisis: California is in the midst of a housing crisis. Only 17 percent of households can afford to purchase the median priced single-family home – less than half of the national average, and also less than half of the rate at the start of the pandemic.[1] Over two-thirds of low-income renters are paying more than 30 percent of their income toward housing, a “rent burden” that means they have to sacrifice other essentials such as food, transportation, and health care.[2] In 2022, over 170,000 Californians experienced homelessness on a given night.[3] Californians rank housing affordability and homelessness as the two most important issues for the state to address.[4]
A major cause of our housing crisis is the mismatch between the supply of housing and the need for housing. The Statewide Housing Plan adopted by the Department of Housing and Community Development (HCD) in 2022 found that California needs approximately 2.5 million units of housing, including one million units affordable to lower income households, in order to address this mismatch over the next eight years.[5] That would require production of over 300,000 units a year, including over 120,000 units a year of housing affordable to lower income households. By contrast, production in the past decade has been under 100,000 units per year – including less than 10,000 units of affordable housing per year.[6]
Demolition Protections for Existing Housing: In response to the mismatch between housing supply and demand, the Legislature enacted the Housing Crisis Act of 2019 (HCA) (SB 330, Skinner, Chapter 654, Statutes of 2019) and subsequent amendments to the Act that, among other things, extended its sunset to January 1, 2030 (SB 8, Skinner, Chapter 161, Statutes of 2021). The HCA prohibits local governments from reducing the capacity for housing development within their jurisdictions and includes demolition protections designed to ensure that there is no net reduction of housing in the state, especially affordable housing.
Under the HCA, projects cannot require the demolition of housing unless the project creates at least as many new homes, and cannot demolish affordable housing units protected by law unless the project replaces the units and allows existing residents to occupy their units until six months before construction starts. The developer must also provide relocation assistance and a right of first refusal to the residents in the new development at affordable rates.
This bill proposes to amend the HCA’s demolition protections in several ways, including:
- Moving the demolition protections into its own chapter under Planning and Land Use law. This change will improve visibility and legibility of the law, which is currently located within a subdivision of the larger HCA. By moving the demolition protections out of the HCA, this bill would removes the sunset provisions that currently apply to the demolition protections.
- Applying the demolition protections for sites with protected units that are proposed to be developed for non-residential purposes (e.g., offices, retail). The non-residential development projects would be responsible to relocate displaced tenants and to replace demolished protected units. This will prevent the loss of units affordable to lower income households in the instance when a proposed development is not a housing development project. Because it would require a non-residential project to have a residential component, it could serve as a substantial barrier for non-residential projects that seek to demolish residential units.
- Applying the demolition project to sites where protected housing units were demolished in the previous five years. This five-year lookback provision is the same as the demolition protections contained in both housing element law and density bonus law.
- Specifying that the notice to the occupants of the proposed demolition project proponent must be written and include the date they must vacate, and their rights under this section of law. This replaces the current noticing requirements that are challenging to implement, as they are contained in a Title of the Government Code that contains 38 different sections of law.
- Requiring that the project proponent must provide written notice at least six months in advance of the date that existing occupants must vacate. This provision will help existing occupants of units to be demolished identify new accommodations.
Arguments in Support: Supporters of the bill argue that it will address confusing and conflicting provisions of existing demolition protections. According to the Public Interest Law Project and the California Rural Legal Assistance Foundation, the bill’s sponsors, “These confusing provisions make it difficult to implement the law at the local level, lead to confusion for developers, and mean that housing units may be lost despite the state’s well-documented shortage of housing and displaced low-income households are not benefitting from important protections under the law.”
Arguments in Opposition: Opponents of the bill argue that the demolition protections were negotiated as part of the HCA as a comprehensive package of reforms, and that they should not be severed from the HCA. According to the California Building Industry Association, “As the bill moved through the legislative process, language was added to SB 330 to establish new statewide requirements that would apply to housing projects that include the demolition of existing housing units (as proposed in AB 1218). However, it was always understood that these costly anti-demolition provisions would only be included along with the original reforms in the bill if they were subject to the same sunset provisions included in SB 330. AB 1218 undermines this compromise and leaves out all of the incredibly important entitlement and planning reforms that have proven crucial for both market rate and affordable housing projects.”
Staff Comments: As discussed above, by moving the demolition protections out of the HCA, this bill would removes the sunset provisions that currently apply to the demolition protections. However, as noted by opponents, the demolition protections in the HCA were negotiated as part of a package with the other provisions of the HCA, including those that facilitate increased housing production. As such, the committee may wish to amend the bill to place the demolition protections back within the HCA, such that they once again have the same sunset provisions.
Related Legislation:
SB 8 (Skinner), Chapter 161, Statutes of 2021: Extended the sunset on the Housing Crisis Act of 2019 by five years and made a number of minor changes to the Act, including clarifying the provisions for demolition and replacement.
SB 330 (Skinner), Chapter 654, Statutes of 2019: Restricted, for a period of five years, actions by cities and counties that would reduce the production of housing, including demolition of housing that would result in less total units and less units affordable to lower income households.
Double Referred: This bill was also referred to the Assembly Committee on Local Government, where it will be heard should it pass out of this committee.
REGISTERED SUPPORT / OPPOSITION:
Support
California Rural Legal Assistance Foundation (Sponsor)
Public Interest Law Project (Sponsor)
Disability Rights California
Western Center on Law & Poverty
Opposition
California Building Industry Association
Analysis Prepared by: Steve Wertheim / H. & C.D. / (916) 319-2085
California Association of Realtors Housing Affordability Index. Data for the 4th quarter of 2022. https://www.car.org/marketdata/data/haitraditional ↑
Per the California Housing Partnership’s Housing Needs Dashboard, update May 2022: https://chpc.net/housingneeds/ ↑
US Department of Housing and Urban Development, “The 2022 Annual Homelessness Assessment Report (AHAR) to Congress”: https://www.huduser.gov/portal/sites/default/files/pdf/2022-AHAR-Part-1.pdf ↑
UC Berkeley’s Institute of Governmental Studies, April 2022: https://escholarship.org/uc/item/7sn293xs ↑
HCD, March 2022, “California Statewide Housing Plan: A Home for Every Californian”: https://storymaps.arcgis.com/stories/94729ab1648d43b1811c1698a748c136 ↑
https://www.hcd.ca.gov/policy-research/housing-challenges.shtml ↑
Discussed in Hearing
53SEC
Assembly Floor
56SEC
Senate Floor
8MIN
Senate Standing Committee on Housing
17MIN
Senate Standing Committee on Governance and Finance
1MIN
Assembly Floor
2MIN
Assembly Standing Committee on Appropriations
3MIN
Assembly Standing Committee on Appropriations
4MIN
Assembly Standing Committee on Local Government
Bill Author
Bill Co-Author(s):