Current Status:

Passed

(2024-09-19: Chaptered by Secretary of State. Chapter 283, Statutes of 2024.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city, which includes, among other mandatory elements, a housing element. That law requires, for the 4th and subsequent revisions of the housing element, the Department of Housing and Community Development (department) to determine the existing and projected need for housing for each region, as specified. That law requires the department, in consultation with the council of governments, to determine the existing and projected need of housing for each region in a specified manner. That law requires the departments determination to be based upon population projections produced by the Department of Finance, as specified. That law also requires the department to meet and consult with the council of governments regarding the assumptions and methodologies to be used to determine each regions housing need and requires the council of governments to provide data assumptions from the council of governments projections, as specified. That law authorizes the department to accept or reject the information provided by the council of governments and, after consultation with each council of governments, requires the department to make determinations on the council of governments data assumptions and the methodology the department will use to determine each regions housing need. That law requires the department to provide its determinations to each council of governments, as specified. That law, upon making that determination, authorizes the council of governments to object to the determination.

This bill, for regions in which the department is required to distribute the regional housing need, would prohibit a city or county from filing an objection to the regional housing need determination. The bill would also make conforming changes.

The Planning and Zoning Law, for the 4th and subsequent revisions of the housing element, provides an alternative process for determining the existing and projected need for housing for each region, as specified.

This bill would repeal the alternative process described above.

The Planning and Zoning Law requires public participation and access in the development of the methodology and in the process of drafting and adoption of the allocation of the regional housing needs. That law requires participation by organizations other than local jurisdictions and councils of governments to be solicited, as provided, including soliciting specified members of protected classes. That law also authorizes the department to review the adopted allocation methodology and report its findings to the council of governments or delegate subregion within 90 days of receiving notice.

This bill would expand the solicitation requirement to include specified households with special housing needs. The bill would also reduce the time allotted for the department to report its findings regarding the adopted allocation methodology to 45 days. By requiring councils of governments or delegate subregions, as applicable, to solicit participation from additional sources, this bill would impose a state-mandated local program.

The Planning and Zoning Law requires each council of governments and delegate subregion, as applicable, at least one and one-half years before their scheduled housing element revision, to distribute a draft allocation of regional housing needs to each local government in the region or subregion, where applicable, and to the department, based on the methodology adopted, and requires each of those entities, as applicable to publish the draft allocation on its internet website.

This bill would additionally authorize a council of government to distribute the draft allocation plan upon adoption of the final methodology reviewed and accepted by the department under certain circumstances.

The Planning and Zoning Law authorizes, within 45 days following receipt of the draft allocation, a local government within the region or the delegate subregion, as applicable, or the department to appeal to the council of governments or the delegate subregion for a revision of the share of the regional housing need proposed to be allocated to one or more local governments. If no appeals are filed, that law requires the draft allocation to be issued as the proposed final allocation plan.

This bill would, if no appeals are filed, instead authorize the draft allocation to be adopted pursuant to a specified procedure that includes, among other things, a public hearing.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

This bill would incorporate additional changes to Sections 65584.01 and 65584.04 of the Government Code proposed by AB 3093 to be operative only if this bill and AB 3093 are enacted and this bill is enacted last.

This bill would incorporate additional changes to Section 65584.05 of the Government Code proposed by AB 2597 to be operative only if this bill and AB 2597 are enacted and this bill is enacted last.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would repeal the alternative process described above.

This bill would, if no appeals are filed, instead authorize the draft allocation to be adopted pursuant to a specified procedure that includes, among other things, a public hearing.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

This bill would incorporate additional changes to Section 65584.05 of the Government Code proposed by AB 2597 to be operative only if this bill and AB 2597 are enacted and this bill is enacted last.

This bill would provide that no reimbursement is required by this act for a specified reason.

The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city, which includes, among other mandatory elements, a housing element. That law requires, for the 4th and subsequent revisions of the housing element, the Department of Housing and Community Development (department) to determine the existing and projected need for housing for each region, as specified. That law requires the department, in consultation with the council of governments, to determine the existing and projected need of housing for each region in a specified manner. That law requires the departments determination to be based upon population projections produced by the Department of Finance, as specified. That law also requires the department to meet and consult with the council of governments regarding the assumptions and methodologies to be used to determine each regions housing need and requires the council of governments to provide data assumptions from the council of governments projections, as specified. That law authorizes the department to accept or reject the information provided by the council of governments and, after consultation with each council of governments, to make determinations on the council of governments data assumptions and the methodology the department will use to determine each regions housing need. That law requires the department to provide its determinations to each council of governments, as specified. That law, upon making that determination, authorizes the council of governments to object to the determination.

This bill would repeal the alternative process described above.

The Planning and Zoning Law requires each council of governments and delegate subregion, as applicable, at least one and one-half years before their scheduled housing element revision, to distribute a draft allocation of regional housing needs to each local government in the region or subregion, where applicable, and requires the department, based on the methodology adopted, to publish the draft allocation on its internet website.

This bill would, if no appeals are filed, instead authorize the draft allocation to be adopted pursuant to a specified procedure that includes, among other things, a public hearing.

The Planning and Zoning Law requires each city, county, and city and county to revise its housing element according to a specified schedule. That law requires subsequent revisions to the housing element of a metropolitan planning organization or a regional transportation planning agency to be due 18 months after adoption of every second regional transportation plan update, provided that the deadline for adoption is no more than eight years later than the deadline for adoption of the previous eight-year housing element. That law also requires the metropolitan planning organization or a regional transportation planning agency for a region that has an eight-year revision interval to notify the department and the Department of Transportation in writing of the estimated adoption date for its next regional transportation plan update at least 12 months before the estimated adoption date. For purposes of determining the existing and projected need for housing within a region, that law requires the date of the next scheduled revision of the housing element be deemed to be the estimated adoption date of the regional transportation plan update described in the notice provided to the Department of Transportation plus 18 months.This bill would condition the above-described deemed date of the next scheduled revision on that date being no more than eight years later than the deadline for adoption of the previous eight-year housing element.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

This bill would incorporate additional changes to Section 65584.05 of the Government Code proposed by AB 2597 to be operative only if this bill and AB 2597 are enacted and this bill is enacted last.

This bill would provide that no reimbursement is required by this act for a specified reason.

The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city, which includes, among other mandatory elements, a housing element. That law requires, for the 4th and subsequent revisions of the housing element, the Department of Housing and Community Development (department) to determine the existing and projected need for housing for each region, as specified. That law requires the department, in consultation with the council of governments, to determine the existing and projected need of housing for each region in a specified manner. That law requires the departments determination to be based upon population projections produced by the Department of Finance, as specified. That law also requires the department to meet and consult with the council of governments regarding the assumptions and methodologies to be used to determine each regions housing need and requires the council of governments to provide data assumptions from the council of governments projections, as specified. That law authorizes the department to accept or reject the information provided by the council of governments and, after consultation with each council of governments, to make determinations on the council of governments data assumptions and the methodology the department will use to determine each regions housing need. That law requires the department to provide its determinations to each council of governments, as specified. That law, upon making that determination, authorizes the council of governments to object to the determination.

This bill would repeal the alternative process described above.

The Planning and Zoning Law requires each council of governments and delegate subregion, as applicable, at least one and one-half years before their scheduled housing element revision, to distribute a draft allocation of regional housing needs to each local government in the region or subregion, where applicable, and requires the department, based on the methodology adopted, to publish the draft allocation on its internet website.

This bill would additionally authorize a council of government to distribute the draft allocation plan upon adoption of the final methodology reviewed and adopted accepted by the department under certain circumstances.

This bill would, if no appeals are filed, instead authorize the draft allocation to be adopted pursuant to a specified procedure that includes, among other things, a public hearing.

This bill would condition the above-described deemed date of the next scheduled revision on that date being no more than eight years later than the deadline for adoption of the previous eight-year housing element.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

This bill would provide that no reimbursement is required by this act for a specified reason.

The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city, which includes, among other mandatory elements, a housing element. That law requires, for the 4th and subsequent revisions of the housing element, the Department of Housing and Community Development (department) to determine the existing and projected need for housing for each region, as specified. That law requires the department, in consultation with the council of governments, to determine the existing and projected need of housing for each region in a specified manner. That law requires the departments determination to be based upon population projections produced by the Department of Finance, as specified. That law also requires the department to meet and consult with the council of governments regarding the assumptions and methodologies to be used to determine each regions housing need and requires the council of governments to provide data assumptions from the council of governments projections, as specified. That law authorizes the department to accept or reject the information provided by the council of governments and, after consultation with each council of governments, to make determinations on the council of governments data assumptions and the methodology the department will use to determine each regions housing need. That law requires the department to provide its determinations to each council of governments, as specified. That law, upon making that determination, authorizes the council of governments to object to the determination.

This bill would repeal the alternative process described above.

The Planning and Zoning Law requires each council of governments and delegate subregion, as applicable, at least one and one-half years before their scheduled housing element revision, to distribute a draft allocation of regional housing needs to each local government in the region or subregion, where applicable, and requires the department, based on the methodology adopted, to publish the draft allocation on its internet website.

This bill would additionally authorize a council of government to distribute the draft allocation plan upon adoption of the final methodology reviewed and adopted by the department under certain circumstances.

This bill would, if no appeals are filed, instead authorize the draft allocation to be adopted pursuant to a specified procedure that includes, among other things, a public hearing.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law, the Planning and Zoning Law, requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. That law requires the planning agency of a city or county to provide by April 1 of each year an annual report to, among other entities, the Department of Housing and Community Development. The law requires that the annual report include, among other specified information, the number of net new units of housing, including both rental housing and for-sale housing, that have been issued a completed entitlement, building permit, or certificate of occupancy, and the income category, by area median income, that each unit of housing satisfies, as specified.This bill would revise and recast these provisions to specify that the income category includes extremely low income households, as defined. By requiring cities and counties to include additional information in their annual reports, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would revise and recast these provisions to specify that the income category includes extremely low income households, as defined. By requiring cities and counties to include additional information in their annual reports, the bill would impose a state-mandated local program.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law establishes various programs to address homelessness, including requiring the Governor to create an Interagency Council on Homelessness and establishing the Homeless Housing, Assistance, and Prevention program for the purpose of providing jurisdictions, as defined, with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges, as specified.This bill, by January 1, 2030, would require each city and county to provide housing opportunities, as defined, for homeless individuals within its jurisdiction, based on their most recent point-in-time count. The bill would require each city and county to develop a housing obligation plan that describes how the city or county plans to increase housing opportunities in its jurisdiction so that it can offer at least one housing opportunity to each homeless individual, as specified. In this regard, the bill would require a housing obligation plan to include, among other things, goals and plans to fulfill the city or countys housing obligation, including specific projects and completion timelines, and the city or countys progress in reducing the number of homeless individuals in its jurisdiction. The bill would require a housing obligation plan to identify steps taken by the city or county to consult with other jurisdictions to ensure that the plan is consistent with regional homelessness planning efforts. The bill would require a city or county to submit its housing obligation plan to the Department of Housing and Community Development for review and post the plan to its internet website by January 1, 2025. The bill would require a city or county to update its housing obligation plan on or before January 1 of each subsequent year.This bill would establish the Homeless Housing Obligation Fund in the State Treasury. The bill would require moneys to be deposited in the fund upon appropriation by the Legislature and would require those moneys to be awarded by the Department of Housing and Community Development as grants to cities, counties, and nonprofit housing entities for the purpose of fulfilling the housing obligations required by these provisions, and would specify eligible uses of the grant funding. The bill would require the grant funding to be allocated to projects that provide housing to individuals that are homeless, individuals that are previously homeless, individuals that are at risk of homelessness, and extremely low income households, as specified.This bill would authorize the Department of Housing and Community Development to adopt regulations to implement these provisions.Existing law additionally requires the Department of Housing and Community Development, in consultation with each council of governments, to determine each regions existing and projected housing need, as provided. Existing law requires each council of governments, or the department for cities and counties without a council of governments, to adopt a final regional housing need plan that allocates a share of the regional housing need to each city, county, or city and county and that furthers specified objectives. Existing law requires the regional housing needs allocation plan to further specified objectives, including that each jurisdiction receives an allocation of units for low- and very low income households, as defined. This bill, for regional housing need assessments on or after January 1, 2024, would require homeless to be included as an income category for purposes of the regional housing needs allocation plan and would require the regional housing needs allocation plan to further fulfilling the citys or countys above-described obligation to provide housing opportunities. By requiring each council of governments to revise the income categories used in regional housing needs allocations, the bill would impose a state-mandated local program. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.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 with regard to certain mandates no reimbursement is required by this act for a specified reason.With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

This bill bill, by January 1, 2030, would require each city and county to provide housing fit for habitation opportunities, as defined, for homeless individuals within its jurisdiction, based on their most recent point-in-time count, as defined. count. The bill would require each city and county to develop a housing obligation plan that includes specified information to fulfill its housing obligation and post the plan to its internet website. describes how the city or county plans to increase housing opportunities in its jurisdiction so that it can offer at least one housing opportunity to each homeless individual, as specified. In this regard, the bill would require a housing obligation plan to include, among other things, goals and plans to fulfill the city or countys housing obligation, including specific projects and completion timelines, and the city or countys progress in reducing the number of homeless individuals in its jurisdiction. The bill would require a housing obligation plan to identify steps taken by the city or county to consult with other jurisdictions to ensure that the plan is consistent with regional homelessness planning efforts. The bill would require a city or county to submit its housing obligation plan to the Department of Housing and Community Development for review and post the plan to its internet website by January 1, 2025. The bill would require a city or county to update its housing obligation plan on or before January 1 of each subsequent year.

This bill would establish the Homeless Housing Obligation Fund in the State Treasury. The bill would require moneys to be deposited in the fund upon appropriation by the Legislature and would require those moneys to be awarded by the Department of Housing and Community Development as grants to cities, counties, and nonprofit housing entities for the purpose of fulfilling the housing obligations required by these provisions, and would specify eligible uses of the grant funding. The bill would require the grant funding to be allocated to projects that provide housing to individuals that are homeless, individuals that are previously homeless, individuals that are at risk of homelessness, and extremely low income households, as specified.

This bill would authorize the Department of Housing and Community Development to adopt regulations to implement these provisions.

Existing law additionally requires the Department of Housing and Community Development, in consultation with each council of governments, to determine each regions existing and projected housing need, as provided. Existing law requires each council of governments, or the department for cities and counties without a council of governments, to adopt a final regional housing need plan that allocates a share of the regional housing need to each city, county, or city and county and that furthers specified objectives. Existing law requires the regional housing needs allocation plan to further specified objectives, including that each jurisdiction receives an allocation of units for low- and very low income households, as defined.

This bill, for regional housing need assessments on or after January 1, 2024, would require homeless to be included as an income category for purposes of the regional housing needs allocation plan and would require the regional housing needs allocation plan to further fulfilling the citys or countys above-described obligation to provide housing fit for human habitation. opportunities. By requiring each council of governments to revise the income categories used in regional housing needs allocations, the bill would impose a state-mandated local program.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

This bill, on or before January 1, 2025, and annually thereafter, would require each city and county to complete a point-in-time count, as defined, of individuals that are persons within its jurisdiction and to post the point-in-time count on its internet website. The bill would require each city and county to provide housing fit for habitation for homeless individuals within its jurisdiction, based on those their most recent point-in-time counts. count, as defined. The bill would require each city and county develop a housing obligation plan that includes specified information to fulfill its housing obligation and post the plan to its internet website. In this regard, the bill would require a housing obligation plan to include, among other things, goals and plans to fulfill the city or countys housing obligation, including specific projects and completion timelines, and the city or countys progress in reducing the number of homeless individuals in its jurisdiction.

This bill would establish the Homeless Housing Obligation Fund in the State Treasury. The bill would require moneys to be deposited in the fund upon appropriation by the Legislature and would require those moneys to be awarded by the Department of Housing and Community Development as grants to cities and counties to fund the point-in-time counts and cities, counties, and nonprofit housing entities for the purpose of fulfilling the housing obligations required by these provisions. provisions, and would specify eligible uses of the grant funding. The bill would require the grant funding awarded for purposes of fulfilling the city or countys housing obligation to be allocated to projects that provide housing to individuals that are homeless, individuals that are previously homeless, individuals that are at risk of homelessness, and extremely low income households, as specified.

This bill would authorize the Department of Housing and Community Development to adopt regulations to implement these provisions.

Existing law additionally requires the Department of Housing and Community Development, in consultation with each council of governments, to determine each regions existing and projected housing need, as provided. Existing law requires each council of governments, or the department for cities and counties without a council of governments, to adopt a final regional housing need plan that allocates a share of the regional housing need to each city, county, or city and county and that furthers specified objectives. Existing law requires the regional housing needs allocation plan shall to further specified objectives, including that each jurisdiction receives an allocation of units for low- and very low income households, as defined.

This bill, for regional housing need assessments on or after January 1, 2024, would require homeless to be included as an income category for purposes of the regional housing needs allocation plan and would require the regional housing needs allocation plan to further fulfilling the citys or countys above-described obligation to provide housing fit for human habitation. By requiring each council of governments to revise the income categories used in regional housing needs allocations, the bill would impose a state-mandated local program.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

This bill, on or before January 1, 2025, and annually thereafter, would require each city and county to complete a point-in-time count, as defined, of individuals that are persons within its jurisdiction and to post the point-in-time count on its internet website. The bill would require each city and county to provide housing fit for habitation for homeless individuals within its jurisdiction, based on those point-in-time counts. The bill would require each city and county develop a housing obligation plan that includes specified information to fulfill its housing obligation and post the plan to its internet website. In this regard, the bill would require a housing obligation plan to include, among other things, goals and plans to fulfill the city or countys housing obligation, including specific projects and completion timelines, and the city or countys progress in reducing the number of homeless individuals in its jurisdiction.

This bill would establish the Homeless Housing Obligation Fund in the State Treasury. The bill would require moneys to be deposited in the fund upon appropriation by the Legislature and would require those moneys to be awarded by the Department of Housing and Community Development as grants to cities and counties to fund the point-in-time counts and for the purpose of fulfilling the housing obligations required by these provisions. The bill would require the grant funding awarded for purposes of fulfilling the city or countys housing obligation to be allocated to projects that provide housing to individuals that are homeless, individuals that are previously homeless, individuals that are at risk of homelessness, and extremely low income households, as specified.

This bill would authorize the Department of Housing and Community Development to adopt regulations to implement these provisions.

Existing law additionally requires the Department of Housing and Community Development, in consultation with each council of governments, to determine each regions existing and projected housing need, as provided. Existing law requires each council of governments, or the department for cities and counties without a council of governments, to adopt a final regional housing need plan that allocates a share of the regional housing need to each city, county, or city and county and that furthers specified objectives. Existing law requires the regional housing needs allocation plan shall further specified objectives, including each jurisdiction receives an allocation of units for low- and very low income households, as defined.

This bill, for regional housing need assessments on or after January 1, 2024, would require homeless to be included as an income category for purposes of the regional housing needs allocation plan. plan and would require the regional housing needs allocation plan to further fulfilling the citys or countys above-described obligation to provide housing fit for human habitation. By requiring each council of governments to revise the income categories used in regional housing needs allocations, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

Version:

The people of the State of California do enact as follows:SECTION 1.Section 65584.01 of the Government Code is amended to read:65584.01.

For the fourth and subsequent revision of the housing element pursuant to Section 65588, the department, in consultation with each council of governments, where applicable, shall determine the existing and projected need for housing for each region in the following manner:

(a)The departments determination shall be based upon population projections produced by the Department of Finance and regional population forecasts used in preparing regional transportation plans, in consultation with each council of governments. If the total regional population forecast for the projection year, developed by the council of governments and used for the preparation of the regional transportation plan, is within a range of 1.5 percent of the total regional population forecast for the projection year by the Department of Finance, then the population forecast developed by the council of governments shall be the basis from which the department determines the existing and projected need for housing in the region. If the difference between the total population projected by the council of governments and the total population projected for the region by the Department of Finance is greater than 1.5 percent, then the department and the council of governments shall meet to discuss variances in methodology used for population projections and seek agreement on a population projection for the region to be used as a basis for determining the existing and projected housing need for the region. If agreement is not reached, then the population projection for the region shall be the population projection for the region prepared by the Department of Finance as may be modified by the department as a result of discussions with the council of governments.

(b)(1)At least 26 months prior to the scheduled revision pursuant to Section 65588 and prior to developing the existing and projected housing need for a region, the department shall meet and consult with the council of governments regarding the assumptions and methodology to be used by the department to determine the regions housing needs. The council of governments shall provide data assumptions from the councils projections, including, if available, the following data for the region:

(A)Anticipated household growth associated with projected population increases.

(B)Household size data and trends in household size.

(C)The percentage of households that are overcrowded and the overcrowding rate for a comparable housing market. For purposes of this subparagraph:

(i)The term overcrowded means more than one resident per room in each room in a dwelling.

(ii)The term overcrowded rate for a comparable housing market means that the overcrowding rate is no more than the average overcrowding rate in comparable regions throughout the nation, as determined by the council of governments.

(D)The rate of household formation, or headship rates, based on age, gender, ethnicity, or other established demographic measures.

(E)The vacancy rates in existing housing stock, and the vacancy rates for healthy housing market functioning and regional mobility, as well as housing replacement needs. For purposes of this subparagraph, the vacancy rate for a healthy rental housing market shall be considered no less than 5 percent.

(F)Other characteristics of the composition of the projected population.

(G)The relationship between jobs and housing, including any imbalance between jobs and housing.

(H)The percentage of households that are cost burdened and the rate of housing cost burden for a healthy housing market. For the purposes of this subparagraph:

(i)The term cost burdened means the share of very low, low-, moderate-, and above moderate-income households that are paying more than 30 percent of household income on housing costs.

(ii)The term rate of housing cost burden for a healthy housing market means that the rate of households that are cost burdened is no more than the average rate of households that are cost burdened in comparable regions throughout the nation, as determined by the council of governments.

(I)The loss of units during a state of emergency that was declared by the Governor pursuant to the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2), during the planning period immediately preceding the relevant revision pursuant to Section 65588 that have yet to be rebuilt or replaced at the time of the data request.

(2)The department may accept or reject the information provided by the council of governments or modify its own assumptions or methodology based on this information. After consultation with the council of governments, the department shall make determinations in writing on the assumptions for each of the factors listed in subparagraphs (A) to (I), inclusive, of paragraph (1) and the methodology it shall use and shall provide these determinations to the council of governments. The methodology submitted by the department may make adjustments based on the regions total projected households, which includes existing households as well as projected households.

(c)(1)After consultation with the council of governments, the department shall make a determination of the regions existing and projected housing need based upon the assumptions and methodology determined pursuant to subdivision (b). The regions existing and projected housing need shall reflect the achievement of a feasible balance between jobs and housing within the region using the regional employment projections in the applicable regional transportation plan. Within 30 days following notice of the determination from the department, the council of governments may file an objection to the departments determination of the regions existing and projected housing need with the department.

(2)The objection shall be based on and substantiate either of the following:

(A)The department failed to base its determination on the population projection for the region established pursuant to subdivision (a), and shall identify the population projection which the council of governments believes should instead be used for the determination and explain the basis for its rationale.

(B)The regional housing need determined by the department is not a reasonable application of the methodology and assumptions determined pursuant to subdivision (b). The objection shall include a proposed alternative determination of its regional housing need based upon the determinations made in subdivision (b), including analysis of why the proposed alternative would be a more reasonable application of the methodology and assumptions determined pursuant to subdivision (b).

(3)If a council of governments files an objection pursuant to this subdivision and includes with the objection a proposed alternative determination of its regional housing need, it shall also include documentation of its basis for the alternative determination. Within 45 days of receiving an objection filed pursuant to this section, the department shall consider the objection and make a final written determination of the regions existing and projected housing need that includes an explanation of the information upon which the determination was made.

(4)In regions in which the department is required to distribute the regional housing need pursuant to Section 65584.06, no city or county may file an objection to the regional housing need determination.

(d)Statutory changes enacted after the date the department issued a final determination pursuant to this section shall not be a basis for a revision of the final determination.

SEC. 1.5.Section 65584.01 of the Government Code is amended to read:65584.01.

(A)Anticipated household growth associated with projected population increases.

(B)Household size data and trends in household size.

(C)The percentage of households that are overcrowded and the overcrowding rate for a comparable housing market. For purposes of this subparagraph:

(i)The term overcrowded means more than one resident per room in each room in a dwelling.

(D)The rate of household formation, or headship rates, based on age, gender, ethnicity, or other established demographic measures.

(F)Other characteristics of the composition of the projected population.

(G)The relationship between jobs and housing, including any imbalance between jobs and housing.

(H)The percentage of households that are cost burdened and the rate of housing cost burden for a healthy housing market. For the purposes of this subparagraph:

(i)The term cost burdened means the share of very low, low-, moderate-, and above moderate-income households that are paying more than 30 percent of household income on housing costs.

(J)The housing needs of individuals and families experiencing homelessness.

(i)The data utilized by the council of governments shall align with homelessness data best practices as determined by the department.

(ii)Sources of homelessness data may include the Homeless Data Integration System administered by the Interagency Council on Homelessness, the homeless point-in-time count, or other sources deemed appropriate by the department.

(2)The objection shall be based on and substantiate either of the following:

(d)Statutory changes enacted after the date the department issued a final determination pursuant to this section shall not be a basis for a revision of the final determination.

SEC. 2.Section 65584.02 of the Government Code is repealed.SEC. 3.Section 65584.04 of the Government Code, as added by Section 3 of Chapter 948 of the Statutes of 2022, is amended to read:65584.04.

(a)At least two years before a scheduled revision required by Section 65588, each council of governments, or delegate subregion as applicable, shall develop, in consultation with the department, a proposed methodology for distributing the existing and projected regional housing need to cities, counties, and cities and counties within the region or within the subregion, where applicable pursuant to this section. The methodology shall further the objectives listed in subdivision (d) of Section 65584.

(b)(1)No more than six months before the development of a proposed methodology for distributing the existing and projected housing need, each council of governments shall survey each of its member jurisdictions to request, at a minimum, information regarding the factors listed in subdivision (e) that will allow the development of a methodology based upon the factors established in subdivision (e).

(2)With respect to the objective in paragraph (5) of subdivision (d) of Section 65584, the survey shall review and compile information that will allow the development of a methodology based upon the issues, strategies, and actions that are included, as available, in an Analysis of Impediments to Fair Housing Choice or an Assessment of Fair Housing completed by any city or county or the department that covers communities within the area served by the council of governments, and in housing elements adopted pursuant to this article by cities and counties within the area served by the council of governments.

(3)The council of governments shall seek to obtain the information in a manner and format that is comparable throughout the region and utilize readily available data to the extent possible.

(4)The information provided by a local government pursuant to this section shall be used, to the extent possible, by the council of governments, or delegate subregion as applicable, as source information for the methodology developed pursuant to this section. The survey shall state that none of the information received may be used as a basis for reducing the total housing need established for the region pursuant to Section 65584.01.

(5)If the council of governments fails to conduct a survey pursuant to this subdivision, a city, county, or city and county may submit information related to the items listed in subdivision (e) before the public comment period provided for in subdivision (d).

(c)The council of governments shall electronically report the results of the survey of fair housing issues, strategies, and actions compiled pursuant to paragraph (2) of subdivision (b). The report shall describe common themes and effective strategies employed by cities and counties within the area served by the council of governments, including common themes and effective strategies around avoiding the displacement of lower income households. The council of governments shall also identify significant barriers to affirmatively furthering fair housing at the regional level and may recommend strategies or actions to overcome those barriers. A council of governments or metropolitan planning organization, as appropriate, may use this information for any other purpose, including publication within a regional transportation plan adopted pursuant to Section 65080 or to inform the land use assumptions that are applied in the development of a regional transportation plan.

(d)Public participation and access shall be required in the development of the methodology and in the process of drafting and adoption of the allocation of the regional housing needs. Participation by organizations other than local jurisdictions and councils of governments shall be solicited in a diligent effort to achieve public participation of all economic segments of the community as well as members of protected classes under Section 12955 and households with special housing needs under paragraph (7) of subdivision (a) of Section 65583. The proposed methodology, along with any relevant underlying data and assumptions, an explanation of how information about local government conditions gathered pursuant to subdivision (b) has been used to develop the proposed methodology, how each of the factors listed in subdivision (e) is incorporated into the methodology, and how the proposed methodology furthers the objectives listed in subdivision (d) of Section 65584, shall be distributed to all cities, counties, any subregions, and members of the public who have made a written or electronic request for the proposed methodology and published on the council of governments, or delegate subregions, internet website. The council of governments, or delegate subregion, as applicable, shall conduct at least one public hearing to receive oral and written comments on the proposed methodology.

(e)To the extent that sufficient data is available from local governments pursuant to subdivision (b) or other sources, each council of governments, or delegate subregion as applicable, shall consider including the following factors in developing the methodology that allocates regional housing needs:

(1)Each member jurisdictions existing and projected jobs and housing relationship. This shall include an estimate based on readily available data on the number of low-wage jobs within the jurisdiction and how many housing units within the jurisdiction are affordable to low-wage workers as well as an estimate based on readily available data, of projected job growth and projected household growth by income level within each member jurisdiction during the planning period.

(2)The opportunities and constraints to development of additional housing in each member jurisdiction, including all of the following:

(A)Lack of capacity for sewer or water service due to federal or state laws, regulations or regulatory actions, or supply and distribution decisions made by a sewer or water service provider other than the local jurisdiction that preclude the jurisdiction from providing necessary infrastructure for additional development during the planning period.

(B)The availability of land suitable for urban development or for conversion to residential use, the availability of underutilized land, and opportunities for infill development and increased residential densities. The council of governments may not limit its consideration of suitable housing sites or land suitable for urban development to existing zoning ordinances and land use restrictions of a locality, but shall consider the potential for increased residential development under alternative zoning ordinances and land use restrictions. The determination of available land suitable for urban development may exclude lands where the Federal Emergency Management Agency (FEMA) or the Department of Water Resources has determined that the flood management infrastructure designed to protect that land is not adequate to avoid the risk of flooding.

(C)Lands preserved or protected from urban development under existing federal or state programs, or both, designed to protect open space, farmland, environmental habitats, and natural resources on a long-term basis, including land zoned or designated for agricultural protection or preservation that is subject to a local ballot measure that was approved by the voters of that jurisdiction that prohibits or restricts conversion to nonagricultural uses.

(D)County policies to preserve prime agricultural land, as defined pursuant to Section 56064, within an unincorporated area and land within an unincorporated area zoned or designated for agricultural protection or preservation that is subject to a local ballot measure that was approved by the voters of that jurisdiction that prohibits or restricts its conversion to nonagricultural uses.

(E)Emergency evacuation route capacity, wildfire risk, sea level rise, and other impacts caused by climate change.

(3)The distribution of household growth assumed for purposes of a comparable period of regional transportation plans and opportunities to maximize the use of public transportation and existing transportation infrastructure.

(4)Agreements between a county and cities in a county to direct growth toward incorporated areas of the county and land within an unincorporated area zoned or designated for agricultural protection or preservation that is subject to a local ballot measure that was approved by the voters of the jurisdiction that prohibits or restricts conversion to nonagricultural uses.

(5)The loss of units contained in assisted housing developments, as defined in paragraph (9) of subdivision (a) of Section 65583, that changed to non-low-income use through mortgage prepayment, subsidy contract expirations, or termination of use restrictions.

(6)The percentage of existing households at each of the income levels listed in subdivision (f) of Section 65584 that are paying more than 30 percent and more than 50 percent of their income in rent.

(7)The rate of overcrowding.

(8)The housing needs of farmworkers.

(9)The housing needs generated by the presence of a private university or a campus of the California State University or the University of California within any member jurisdiction.

(10)The housing needs of individuals and families experiencing homelessness. If a council of governments has surveyed each of its member jurisdictions pursuant to subdivision (b) on or before January 1, 2020, this paragraph shall apply only to the development of methodologies for the seventh and subsequent revisions of the housing element.

(11)The loss of units during a state of emergency that was declared by the Governor pursuant to the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2), during the planning period immediately preceding the relevant revision pursuant to Section 65588 that have yet to be rebuilt or replaced at the time of the analysis.

(12)The regions greenhouse gas emissions targets provided by the State Air Resources Board pursuant to Section 65080.

(13)Any other factors adopted by the council of governments, that further the objectives listed in subdivision (d) of Section 65584, provided that the council of governments specifies which of the objectives each additional factor is necessary to further. The council of governments may include additional factors unrelated to furthering the objectives listed in subdivision (d) of Section 65584 so long as the additional factors do not undermine the objectives listed in subdivision (d) of Section 65584 and are applied equally across all household income levels as described in subdivision (f) of Section 65584 and the council of governments makes a finding that the factor is necessary to address significant health and safety conditions.

(f)The council of governments, or delegate subregion, as applicable, shall explain in writing how each of the factors described in subdivision (e) was incorporated into the methodology and how the methodology furthers the objectives listed in subdivision (d) of Section 65584. The methodology may include numerical weighting. This information, and any other supporting materials used in determining the methodology, shall be posted on the council of governments, or delegate subregions, internet website.

(g)The following criteria shall not be a justification for a determination or a reduction in a jurisdictions share of the regional housing need:

(1)Any ordinance, policy, voter-approved measure, or standard of a city or county that directly or indirectly limits the number of residential building permits issued by a city or county.

(2)Prior underproduction of housing in a city or county from the previous regional housing need allocation, as determined by each jurisdictions annual production report submitted pursuant to subparagraph (H) of paragraph (2) of subdivision (a) of Section 65400.

(3)Stable population numbers in a city or county from the previous regional housing needs cycle.

(h)Following the conclusion of the public comment period described in subdivision (d) on the proposed allocation methodology, and after making any revisions deemed appropriate by the council of governments, or delegate subregion, as applicable, as a result of comments received during the public comment period, and as a result of consultation with the department, each council of governments, or delegate subregion, as applicable, shall publish a draft allocation methodology on its internet website and submit the draft allocation methodology, along with the information required pursuant to subdivision (e), to the department.

(i)Within 60 days, the department shall review the draft allocation methodology and report its written findings to the council of governments, or delegate subregion, as applicable. In its written findings the department shall determine whether the methodology furthers the objectives listed in subdivision (d) of Section 65584. If the department determines that the methodology is not consistent with subdivision (d) of Section 65584, the council of governments, or delegate subregion, as applicable, shall take one of the following actions:

(1)Revise the methodology to further the objectives listed in subdivision (d) of Section 65584 and adopt a final regional, or subregional, housing need allocation methodology.

(2)Adopt the regional, or subregional, housing need allocation methodology without revisions and include within its resolution of adoption findings, supported by substantial evidence, as to why the council of governments, or delegate subregion, believes that the methodology furthers the objectives listed in subdivision (d) of Section 65584 despite the findings of the department.

(j)If the departments findings are not available within the time limits set by subdivision (i), the council of governments, or delegate subregion, may act without them.

(k)Upon either action pursuant to subdivision (i), the council of governments, or delegate subregion, shall provide notice of the adoption of the methodology to the jurisdictions within the region, or delegate subregion, as applicable, and to the department, and shall publish the adopted allocation methodology, along with its resolution and any adopted written findings, on its internet website.

(l)The department may, within 45 days, review the adopted methodology and report its findings to the council of governments, or delegate subregion.

(m)(1)It is the intent of the Legislature that housing planning be coordinated and integrated with the regional transportation plan. To achieve this goal, the allocation plan shall allocate housing units within the region consistent with the development pattern included in the sustainable communities strategy.

(2)The final allocation plan shall ensure that the total regional housing need, by income category, as determined under Section 65584, is maintained, and that each jurisdiction in the region receive an allocation of units for low- and very low income households.

(3)The resolution approving the final housing need allocation plan shall demonstrate that the plan is consistent with the sustainable communities strategy in the regional transportation plan and furthers the objectives listed in subdivision (d) of Section 65584.

(n)This section shall become operative on January 1, 2025.

SEC. 3.5.Section 65584.04 of the Government Code, as added by Section 3 of Chapter 948 of the Statutes of 2022, is amended to read:65584.04.