Senate Standing Committee on Housing

We do not yet have a quorum, so the committee will operate as a subcommittee to hear bill presentations. And we'll begin first with filing into SB b four fifty seven by Senator Becker. And Senator, whenever you're ready, you may present. Also, very nice tie.

Go go Giants. Thank you, Mister Chair. Before I get started, I wanna thank the committee staff who's been incredibly constructive throughout the whole process. Coming off the Senate floor earlier this year, the bill clarified what constituted valid in kind services a city can offer for the purposes of receiving renewed credit for preserving naturally occurring affordable housing.

Working with Spur, we've amended the bill to additionally direct HCD, develop and publish economic models that allow jurisdictions to quickly and accurately estimate the realistic development capacity of any given site grounded in real data for site inventory analysis.

Historically, the lack of standardization as analysis has meant every city has used a different method even differing between parcels. What's great about this bill, it's a reen reform bill that even housing advocates can love. Housing advocates, local governments, developers all agree that our current approach needs to change. It's too time consuming. The bang for the buck just really isn't there.

This will just make it a much much faster and more economical to develop housing elements. The bill is a meaningful step forward towards a more data driven housing element process that will reduce ambiguity has that has cost many cities both time and money at expensive development. Request an aye vote.

Thank you. Do you have any witnesses in support?

We have, yeah. Michael Lang. Michael Lang. For maybe Just to answer questions.

Certainly for technicals.

Okay. Thank you very much. We'll invite anyone else who'd like to express support for SB 457. Please come forward and set your name, organization, and position on the bill. Seeing no one come forward, are there any opposition witnesses?

Seeing no opposition witnesses, I'll bring we don't have a quorum yet. I'll bring it back to the dais for any questions or comments. Yes. Vice Chair Ciarato. Thank you.

So, I I like the intent of this bill, because, cities have had very, very difficult time trying to get through, their housing elements. And, the back and forth that has happened between them, HCD, not having clear direction on what it is that they need to to to have better. And and and then also, you know, lacking some of the expertise because, you know, they frankly have a shortage of community planners out there. So that part of it, I I'm good with.

I'm a little nervous about the part where we're kind of giving HCD kind of a lot of legal deference before we hear what their methodology is.

Because if their methodology to deal with some of this is worse than what we started with, that's a concern. I'd rather hear their methodology first. You know, frankly, from my city's perspective, my for several cities' perspective, HCD is really housing. It's the community development part doesn't pertain. And we should just rename it housing.

And and and and so that that's the part of of this that makes me a little bit, leery of of approve or, you know, being on board with this. So I'd have to see their method methodology before I could support the bill. Thanks.

Thank you. Thank you so much, Senator, for this bill. It's a it's a really excellent bill. I think showing how innovation can really help improve our housing element process. Seneca Baldwin, SB 457.

You know, once again, local agents are not required to use the tool. With the site capacity analysis. Governments, that a lot of local jurisdictions, including smaller cities, are really resource constrained. And, the state is requiring that local agencies have to do a lot in developing these housing elements. So this is a really great idea, to provide additional tool to make it easier and to make sure cities comply because that's the goal, is to achieve compliance.

So I wanna thank you very much. And, Senator Cabaldon, any questions or comments on SB 457? Now, Don, I'll turn it back over to you to make a closing statement.

Yeah. Thank you. Yeah. All I represent are small and medium sized cities, so we're optimistic. This will be helpful.

I appreciate the the comments of Senator Sayarto. Hopefully, we'll we'll find that that that you will be happy with the methodology. We'll see how it all goes. But certainly, so this is a big step forward. I respectfully ask for an eye vote.

Thank you, Senator. We don't have a quorum, but when we do, we will entertain a motion at that time. Thank you. Thank you. And, sergeant, if you can contact Senator D'Orazo's office, just to let her know that we're ready to have her present.

I know that she's in the health committee. And so, committee will recess for five minutes while we wait for the next author to present. Over to the vice Chair, as I present the next bill on behalf of the author.

Alright. The next bill we will be hearing is SB 1388, by, the author is, Senator Durazo. And it's gonna be presented, by the Chair. Thank you. You may begin.

Thank you, Mister Chair, members. SB 1388 establishes the affordable housing risk reduction program to help affordable housing providers reduce insurance costs by providing technical assistance. This will support providers in pursuing alternative insurance models and securing more affordable housing options than available in the current market. I wanna clarify, that, this is not providing, specific loans. This is about providing technical assistance.

California is facing a dual crisis and affordable housing and insurance crisis. And while California is experiencing an ongoing supply shortage of affordable housing, Affordable housing providers across California are facing limited availability of insurance coverage, including significant premium and deductible cost increases, reductions in the scope and quality of coverage. California has experienced some of the highest insurance premium hikes in The United States with increases as high as 500%.

The Senator wanted to note in her district, the Little Tokyo Service Center, a community development nonprofit, had insurance premiums rise by over 300%. The severe insurance crisis is significantly increasing cost for affordable housing developers by limiting their ability to build new affordable housing and preserve existing units.

Given these insurance challenges, many providers have expressed interest in alternative risk financing options to increase the availability and affordability of insurance coverage. However, several affordable housing nonprofits lack the technical expertise necessary to evaluate, establish, or participate in these models. The bill will address these challenges by having the state provide technical assistance to affordable housing developers so they can pursue risk mitigation strategies and alternative risk financing options. Housing providers need affordable insurance options, so California can continue to work towards our housing goals of creating affordable housing.

Affordable insurance to create affordable housing.

SB 1388 will reduce the barriers for the production and preservation of essential affordable housing and help us reach our goals. And at the appropriate time, I respectfully ask for an aye vote.

Thank you. And do we have a witness today? A witness in support? You are you a

Just just a quick support. Okay. Here on behalf of Enterprise Community. Graciela Castillo Crings. Here on behalf of Enterprise Community Partners and Housing California, strong supporters and cosponsors of the bill.

Alright. Other support? Clifton Wilson on behalf of the Burbank Housing Development Corporation also in support. Thank you. Thank you.

Do we have any opposition out in the room? If not, I'll bring it back to the dais. I don't have any questions. You may close.

Respectfully ask for your eye vote at the appropriate time.

Absolutely. So we are waiting for a quorum to be established in which we will once it's established, we will be voting on the two bills that we have already heard. And so at this time, we're gonna be going into recess. Alright.

And we have established a quorum, so I'd like to ask the committee assistant please call the roll.

Senators, Aragine? Here. Aragine here. Sierato?

Here.

Sierato here. Caballero. Cortesi? Here. Cortesi here, Durazo.

Gonzales. Gonzales here, Grayson. Ochoa Bogh.

Okay. Thank you, colleagues. We did hear the two bills. So I will entertain a motion first on SB 1388 Durazo. Is there an moved by Senator Gonzales? Thank you. If we can please call the the motion is that the Assembly amendments be concurred.

[Roll Call]

We'll keep that bill on call. And lastly, filing them to SB 457, Becker. I'll entertain a motion on that bill.

So moved.

Moved by Senator Cabaldon. Thank you. If you can please call the roll.

[Roll Call]

Okay. We'll keep that bill on call as well. Thank you to my colleagues. We'll wait We'll recess the committee and wait for other members to join to add on. Thank you.

We will go through the role for Senator Caballero, starting with file item one SB 1388, Durazo.

[Roll Call]

We'll keep that bill oncall. Thank you. And lastly, filing two SB 457 Becker.

[Roll Call]

We'll keep that bill on call as well. Thank you. There's one that's not on our agenda as we discussed yesterday. Yeah. We'll see We will open the role for Senator Padilla. If we could start first with file item one SB 1388 by Senator Durazo.

[Roll Call]

We'll keep that bill on call. Thank you. And file them to SB 457 by Becker.

[Roll Call]

And we'll keep that bill on call as well. And we'll wait for other members to add on. Thank you.

And so we will open the role now for Senator Razzo, starting first with her bill, SB 1388.

Senator D'Arazo? Aye. DeRazo, aye.

Okay. We'll keep that bill on call. And lastly, filing in two SB 457 by Senator Becker.

Senators D'Arazo? Aye. D'Arosso, aye.

Okay. The motion was Assembly amendments be concurred in. And so, thank you, Senator Russell. We are done. And we will recess the committee and wait for Senator Grayson.

Thank you.

Thank you, Mister Chair. Thank you.

We're gonna reconvene the Senate Housing Committee hearing. Sorry. Yeah. All good. Okay.

We're gonna open the role for Senator Grayson, and we'll start first on file item one, SB 1388 by Senator Derassem. Motion The motion is that the Assembly members be concurred in.

Senator Grayson? Aye. Grayson, aye.

Okay. That that motion passes on a vote of eight to two. And now filing to SB 457 Becker, the motion is that the Assembly amendments be concurred in.

Senator Grayson? Aye. Grayson, aye.

And that motion passes on a vote of eight to two as well. Thank you, Senator. With that, the Senate Committee on Housing is now adjourned.