HomeMy WebLinkAboutAB 1867 Harkey - Land Use ��� �
CITY OF PALM DESERT
CITY MANAGER'S OFFICE
STAFF REPORT
REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION ON
AB 1867 (HARKEY) AT ITS MEETING OF MARCH 30, 2010
DATE: April 22, 2010
CONTENTS: AB 1867 Language
Recommendation
By Minute Motion, concur with the action taken by the Legislative Review Committee
at its meeting of March 30, 2010, and direct staff to prepare a letter of support for the
Mayor's signature with regard to AB 1867 (Harkey) relative to land use.
Committee Recommendation
The Legislative Review Committee directed staff to prepare a letter of support for AB 1867.
Backqround
Current State law regarding a municipality meeting its State affordable housing obligation uses a
specification "unfit for human occupation" as a type of housing the City can claim credit for in the
State formula when it is"substantially rehabilitated". This bill would expand that specification to also
include rehabilitation of"substandard housing"as a specification the city can claim credit fortowards
its "substantially rehabilitated" obligation for low and very low income housing. If a City has very
limited"unfit"housing that it can rehabilitate,this presents some restrictions on the formula outcome
for a City such as ours which is committed to generating affordable housing. This bill would enable
a City that has more "substandard" housing than "unfit" housing more opportunity to get credit for
rehabilitation to low and very low income housing which benefits the community and the City. Our
support can have a positive impact on the eventual passage of the bill.
Fiscal Analvsis
There is no fiscal impact to the City of Palm Desert.
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CITY COUNCILACTION
GARY ROSENBLUM APPROVED � nr�vTlF.D
RISK MANAGER RECE[VED OTHF,R
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CALIFORNIA LEGISLATURE-2009-10 REGULAR SESSION
ASSEMBLY BILL No. 1867
Introduced by Assembly Member Harkey
February 12,2010
An act to amend Section 65583.1 of the Government Code,relating
to land use.
LEGISLATIVE COUNSEL'S DIGEST
AB 1867, as introduced, Harkey. Land use: local planning: housing
element program.
The Planning and Zoning Law authorizes the Department of Housing
and Community Development to allow a city or county to substitute
the provision of units for up to 25%of the city's or county's ohligation
to identify adequate sites for any income category in its housing element
if the city or county includes in its housing element a program
committing the city or counry to provide units in that income category
within the city or county that will be made available through the
provision of committed assistance,during the planning period covered
by the element, to low- and very low income households at affordable
housing costs or affordable rents,as defined.In order for a unit to qualify
for inclusion in this program, it must meet one of several, specified
criteria,including the criterion of being substantially rehabilitated with
committed assistance from the city or county and constituting a net
increase in the community's stock of low-and very low income housing,
and the criterion of being located in a multifamily rental housing
complex of 4 or more units, as specified.
Under that law,a unit is not eligible to be considered as"substantially
rehabilitated" unless specified requirements are met, including the
requirement that the unit to be rehabilitated is initially found by the city
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AB 1867 —2—
or county or by a court to be "unfit for human habitation" due to the
existence of at least 4 of various specified conditions.
This bill would modify the eligibility requirements for a unit to be
considered as"substantially rehabilitated"by revising the requirement
that the unit to be rehabilitated is initially found to be"unfit for human
habitation" due to the existence of at least four of various specified
conditions, and instead requiring that the unit to be rehabilitated is
initially found to be a"substandard building"due to the existence of at
least 6 of other,various specified conditions.This bill would also revise
the criterion of being located in a multifamily rental housing complex
of 4 or more units,as specified,and replace it with the criterion of being
located in a multifamily rental housing complex of 3 or more units, as
specified.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
The people of the State of California do enact as,follows:
l SECTION 1. Section 65583.1 of the Government Code is
2 amended to read:
3 65583.1. (a) The Department of Housing and Community
4 Development,in evaluating a proposed or adopted housing element
5 for substantial compliance with this article, may allow a city or
6 county to identify adequate sites, as required pursuant to Section
7 65583, by a variety of inethods, including, but not limited to,
8 redesignation of property to a more intense land use category and
9 increasing the density allowed within one or more categories.The
10 department may also allow a city or county to identify sites for
11 second units based on the number of second units developed in
l 2 the prior housing element planning period whether or not the units
13 are permitted by right, the need for these units in the community,
14 the resources or incentives available for their development, and
15 any other relevant factors, as determined by the department.
16 Nothing in this section reduces the responsibility of a city or county
17 to identify, by income category, the total number of sites for
18 residential development as required by this article.
19 (b) Sites that contain permanent housing units located on a
20 military base undergoing closure or conversion as a result of action
21 pursuant to the Defense Authorization Amendments and Base
22 Closure and Realignment Act(Public Law 100-526),the Defense
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—3— AB 1867
1 Base Closure and RealignmentAct of 1990(Public Law ]O1-S l 0),
2 or any subsequent act requiring the closure or conversion of a
3 military base may be identified as an adequate site if the housing
4 element demonstrates that the housing units will be available for
5 occupancy by households within the planning period of the
6 element. No sites containing housing units scheduled or planned
7 for demolition or conversion to nonresidential uses shall qualify
8 as an adequate site.
9 Any city,city and county,or county using this subdivision shall
10 address the progress in meeting this section in the reports provided
11 pursuant to paragraph (1) of subdivision(b)of Section 65400.
12 (c) (1) The Department of Housing and Community
13 Development may allow a city or county to substitute the provision
14 of units for up to 25 percent of the community's obligation to
I S identify adequate sites for any income category in its housing
16 element pursuant to paragraph (1) of subdivision (c) of Section
17 65583 where the community includes in its housing element a
18 program committing the local government to provide units in that
19 income category within the city or county that will be made
20 available through the provision of committed assistance during
21 the planning period covered by the element to low-and very low
22 income households at affordable housing costs or affordable rents,
23 as defined in Sections 50052.5 and 50053 of the Health and Safety
24 Code, and which meet the requirements of paragraph (2). Except
25 as otherwise provided in this subdivision, the community may
26 substitute one dwelling unit for one dwelling unit site in the
27 applicable income category. The program shall do all of the
28 following:
29 (A) Identify the specific, existing sources of committed
30 assistance and dedicate a specific portion of the funds from those
31 sources to the provision of housing pursuant to this subdivision.
32 (B) Indicate the number of units that will be provided to both
33 low- and very low income households and demonstrate that the
34 amount of dedicated funds is sufficient to develop the units at
35 affordable housing costs or affordable rents.
36 (C) Demonstrate that the units meet the requirements of
37 paragraph(2).
38 (2) Only units that comply with subparagraph (A), (B), or(C)
39 qualify for inclusion in the housing element program described in
40 paragraph(1), as follows:
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AB 1867 —4—
1 (A) Units that are to be substantially rehabilitated with
2 committed assistance from the city or county and constitute a net
3 increase in the community's stock of housing affordable to low-
4 and very low income households. For purposes of this
5 subparagraph, a unit is not eligible to be "substantially
6 rehabilitated"unless all of the following requirements are met:
7 (i) At the time the unit is identified for substantial rehabilitation,
8 (I)the local government has determined that the unit is at imminent
9 risk of loss to the housing stock, (II) the local government has
10 committed to provide relocation assistance pursuant to Chapter 16
ll (commencing with Section 7260) of Division 7 of Title 1 to any �
12 occupants temporarily or permanently displaced by the
13 rehabilitation or code enforcement activity, or the relocation is
14 otherwise provided prior to displacement either as a condition of
15 receivership, or provided by the property owner or the local
16 government pursuant to Article 2.5 (commencing with Section
l 7 17975) of Chapter 5 of Part 1.5 of Division 13 of the Health and
18 Safety Code,or as otherwise provided by local ordinance;provided
19 the assistance includes not less than the equivalent of four months'
20 rent and moving expenses and comparable replacement housing
21 consistent with the moving expenses and comparable replacement
22 housing required pursuant to Section 7260, (III) the local
23 government requires that any displaced occupants will have the
24 right to reoccupy the rehabilitated units,and(IV)the unit has been
25 found by the local government or a court to be ----�` r�- '-_--�.�--
26 '-�'--'�ata� a substandard building due to the existence of at least
27 �€a�tr six violations of the conditions listed in subdivisions (a) to
28 {g�j (o), inclusive, of Section '''-�� 17920.3 of the Health and
29 Safety Code.
30 (ii) The rehabilitated unit will have long-term affordability
31 covenants and restrictions that require the unit to be available to,
32 and occupied by, persons or families of low- or very low income
33 at af�ordable housing costs for at least 20 years or the time period
34 required by any applicable federal or state law or regulation.
35 (iii) Prior to initial occupancy after rehabilitation,the local code
36 enforcement agency shall issue a certificate of occupancy indicating
37 compliance with all applicable state and local building code and
38 health and safety code requirements.
39 (B) Units that are located in a multifamily rental housing
40 complex of�ettr three or more units,are converted with committed
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—5— AB 1867
1 assistance from the city or county from nonaffordable to affordable
2 by acquisition of the unit or the purchase of affordability covenants
3 and restrictions for the unit, are not acquired by eminent domain,
4 and constitute a net increase in the community's stock of housing
5 affordable to low-and very low income households.For purposes
6 of this subparagraph, a unit is not converted by acquisition or the �
7 purchase of affordability covenants unless all of the following
8 occur:
9 (i) The unit is made available at a cost affordable to low- or
10 very low income households.
11 (ii) At the time the unit is identified for acquisition, the unit is
12 not available at an affordable housing cost to either of the
13 following:
14 (I) Low-income households,if the unit will be made affordable
15 to low-income households.
16 (II) Very low income households, if the unit will be made
l7 affordable to very low income households.
18 (iii) At the time the unit is identified for acquisition the unit is
19 not occupied by low- or very low income households or if the
20 acquired unit is occupied,the local government has committed to
21 provide relocation assistance prior to displacement,if any,pursuant
22 to Chapter 16 (commencing with Section 7260) of Division 7 of
23 Title 1 to any occupants displaced by the conversion, or the
24 relocation is otherwise provided prior to displacement; provided
25 the assistance includes not less than the equivalent of four months'
26 rent and moving expenses and comparable replacement housing
27 consistent with the moving expenses and comparable replacement
28 housing required pursuant to Section 7260.
29 (iv) The unit is in decent, safe, and sanitary condition at the
30 time of occupancy.
31 (v) The unit has long-term affordability covenants and
32 restrictions that require the unit to be affordable to persons of low-
33 or very low income for not less than 55 years.
34 (C) Units that will be preserved at affordable housing costs to
35 persons or families of low- or very low incomes with committed
36 assistance from the city or county by acquisition of the unit or the
37 purchase of affordability covenants for the unit. For purposes of
38 this subparagraph,a unit shall not be deemed preserved unless all
39 of the following occur:
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AB 1867 —6—
1 (i) The unit has long-term affordability covenants and
2 restrictions that require the unit to be affordable to and reserved
3 for occupancy by persons of the same or lower income group as
4 the current occupants for a period of at least 40 years.
5 (ii) The unit is within an "assisted housing development," as
6 defined in paragraph(3) of subdivision (a) of Section 65863.10.
7 (iii) The city or county finds,after a public hearing,that the unit
8 is eligible, and is reasonably expected, to change from housing
9 affordable to low- and very low income households to any other �
10 use during the next five years due to termination of subsidy
11 contracts, mortgage prepayment, or expiration of restrictions on
12 use.
13 (iv) The unit is in decent, safe, and sanitary condition at the
14 time of occupancy.
15 (v) At the time the unit is identified for preservation it is
16 available at affordable cost to persons or families of low- or very
l7 low income.
18 (3) This subdivision does not apply to any city or county that,
19 during the current or immediately prior planning period,as defined
20 by Section 65588,has not met any of its share of the regional need
21 for affordable housing, as defined in Section 65584, for low- and
22 very low income households.A city or county shall document for
23 any housing unit that a building permit has been issued and all
24 development and permit fees have been paid or the unit is eligible
25 to be lawfully occupied.
26 (4) For purposes of this subdivision, "committed assistance"
27 means that the city or county enters into a legally enforceable
28 agreement during the period from the beginning of the projection
29 period until the end of the second year of the planning period that
30 obligates sufficient available funds to provide the assistance
31 necessary to make the identified units affordable and that requires
32 that the units be made available for occupancy within two years
33 of the execution of the agreement. "Committed assistance" does
34 not include tenant-based rental assistance.
35 (5) For purposes of this subdivision, "net increase" includes
36 only housing units provided committed assistance pursuant to
37 subparagraph (A) or(B) of paragraph(2} in the current planning
38 period, as defined in Section 65588, that were not provided
39 committed assistance in the immediately prior planning period.
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—7— AB 1867
1 (6) For purposes of this subdivision, "the time the unit is.
2 identified"means the earliest time when any city or county agent,
3 acting on behalf of a public entity,has proposed in writing or has
4 proposed orally or in writing to the property owner, that the unit .
5 be considered for substantial rehabilitation, acquisition, or
6 preservation.
7 (7) In the third year of the planning period,as defined by Section
8 65588,in the report required pursuant to Section 65400, each city
9 or county that has included in its housing element a program to
10 provide units pursuant to subparagraph (A), (B), or (C) of
11 paragraph (2) shall report in writing to the legislative body, and
12 to the department within 30 days of making its report to the
13 legislative body,on its progress in providing units pursuant to this
14 subdivision. The report shall identify the specific units for which
I S committed assistance has been provided or which have been made
16 available to low- and very low income households, and it shall
17 adequately document how each unit complies with this subdivision.
18 If, by July 1 of the third year of the planning period, the city or
19 county has not entered into an enforceable agreement of committed
20 assistance for all units specified in the programs adopted pursuant
21 to subparagraph(A),(B),or(C)of paragraph(2),the city or county
22 shall,not later than July 1 of the fourth year of the planning period,
23 adopt an amended housing element in accordance with Section
24 65585,identifying additional adequate sites pursuant to paragraph
25 (1)of subdivision(c)of Section 65583 suf�icient to accommodate
26 the number of units for which committed assistance was not
27 provided. If a city or county does not amend its housing element
28 to identify adequate sites to address any shortfall, or fails to
29 complete the rehabilitation, acquisition,purchase of affordability
30 covenants,or the preservation of any housing unit within two years
31 after committed assistance was provided to that unit, it shall be
32 prohibited from identifying units pursuant to subparagraph (A),
33 (B), or(C) of paragraph(2) in the housing element that it adopts
34 for the next planning period, as defined in Section 65588, above
35 the number of units actually provided or preserved due to
36 committed assistance.
O
99
April 13, 2010
1�R ��'
Honorable Diane L. Harkey
State Capitol
Room 4177
Sacramento, California 95814
Dear Assemblywoman Harkey,
The City of Palm Desert supports passage of AB 1867. This bill would adjust the
City's low and very low income housing element to include the defined
"substandard housing" properties that are rehabilitated, not just properties that
are declared "unfit for human habitation." The City has a very robust program for
rehabilitating housing in the City for the benefit of those who require affordable
housing, and a strong commitment to meet its State affordable housing
obligation. The changes made by this bill would allow a City like Palm Desert
that may have very little housing "unfit for human habitation" but much more
"substandard housing" available and actively undergoing rehabilitation to receive
appropriate credit for this committment. We support this bill and urge your
colleagues to do the same.
Sincerely,
CINDY FINERTY
MAYOR
CF/Iw
cc: Honorable Brian Nestande
Anthony Gonsalves