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Item 8 - Visual slideshow presented by Staff at MeetingRutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Housing Legislation Update Before After Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Housing Crisis Act of 2019 2 Went into effect 1-1-2020 •New “No Net Loss” requirements for planned and existing housing •Revised the Housing Accountability Act •New Preliminary Application Vesting •Amends Permit Streamlining Act Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Old “No Net Loss” Law - Housing Element Site Only §65863 already imposed: •Restrictions on reduction of density of a Housing Element site or approving individual projects with less units than identified density •Must make finding that remaining sites identified in Housing Element are sufficient to meet Regional Housing Needs Assessment (“RHNA”) numbers •Requirement to “identify and make available” additional adequate sites within 180 days if agency approves lower density project and finds remaining sites are not adequate to meet RHNA Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 –NEW No Net Loss of Planned or Actual Units •Government Code §66300 –applies to all residential sites •Fundamental purposes: –Prevent future planning/across the board regulations that will reduce housing –Preclude/limit individual projects that will result in fewer units due to demolition •Projects without a completed project application before Jan. 1, 2020 –Extreme limitations on demolition of “protected units” 4 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 –NEW No Net Loss of Planned Units •Per §66300(b), on land where housing is permitted, City cannot enact a “development policy, standard, or condition” that would have the following effects: –Reduce intensity of land use below Jan. 1, 2018 levels –Impose moratorium on housing development unless imminent threat to health & safety –Impose/enforce design standards established after January 1, 2020 that are not objective –Establish/implement numeric caps on permits/units/limits on population 5 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 –NEW No Net Loss of Planned Units City can decrease intensity if it concurrently increases intensity elsewhere so there is no net loss in residential capacity. (66300(i)) 6 City can impose restrictions on “commercial use” of land designated for residential use, e.g., short term rentals. (66300(c)) Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 –NEW No Net Loss of Actual Units •On project level [§66300(d)], City can’t approve a “housing development project” [more than one unit] that: –Demolishes existing dwelling units unless it replaces with at least as many 7 •Severe restriction on the demolition of vacant or occupied “protected units” (e.g., affordable), including replacement requirements Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 –NEW No Net Loss of Actual Units 8 Protected Units: •Covenanted Units (within 5 yrs) •Occupied by lower or very low income households (within 5 yrs) •Elderly couple on fixed income? Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 –NEW No Net Loss of Actual Units 9 Housing Development Project that requires demolition of occupied or vacant “Protected Unit” must: •“Replace” all existing or demolished units •Include at least as many units as the greatest number of units on the site in last 5 years •Existing residents must be allowed to remain until 6 months before construction •Displaced occupants must get relocation benefits + right of first refusal Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Housing Accountability Act •Housing Accountability Act or “Anti-NIMBY Act” (Gov. Code § 65589.5) amended again •Applies to “housing development projects” –Residential or mixed use with 2/3 residential square footage –Likely does not apply to the development of a single family home 10 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 2018 Amendments To deny a housing development project (or impose a condition reducing density), agency must either: •Determine project does not comply with objective general plan, zoning or subdivision criteria or standards within 1-2 months of a completed application (otherwise deemed consistent) OR Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 2018 Amendments Find, by a preponderance of the evidence,that project would have a specific adverse impact on public health or safety that can’t be mitigated: •“specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete 12 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 2018 Amendments Additional changes: •Added additional penalty provisions, including fines for bad faith disapprovals •Attorneys fees for housing groups Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com New Amendments Effective January 1, 2020 SB 330 further amended HAA: •Freezes all existing regulations and impact fees when certain enumerated information (a “preliminary application”) is submitted for a housing development project •No City action required to “deem” application complete Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Vesting Regulations Upon Complete “Preliminary Application” •“Preliminary application” is a new defined term in Permit Streamlining Act. (§65941.1) –Project and site description information •City staff will post list of required information online 15 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Limitations to Vesting The following may still be imposed after application deemed complete: •Automatic fee increases based on independent cost indices referenced in a city’s or county’s fee ordinance •Regulation is necessary to mitigate or avoid a health or safety impact and there is no feasible alternative (preponderance of evidence) •Regulation necessary to avoid or substantially lessen a project impact under CEQA 16 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Limitations to Vesting Continued Vesting “expires” when the project has not commenced construction within 2.5 years of “final approval” or is revised to change the number of residential units or square footage of construction by 20% or more. 17 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Limitations to Vesting Continued •Later enacted regulations of use and occupancy of residential units such as rent control and limitations on short term rentals still apply to housing development projects 18 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Additional HAA Amendments •Clarifies “objective” to mean “involving no personal or subjective judgment by a public official and being 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.” •“Lower density” includes any conditions that have the same effect or impact on the ability of the project to provide housing. 19 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com HAA Does Not Exempt Projects from CEQA SB 330 did not affect §65589.5(e), which states: •“Nothing in this section shall be construed to relieve the local agency from complying with” CEQA or the Coastal Act 20 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Permit Streamlining Act •Maximum of 5 public hearings where project complies with General Plan and zoning (§ 65905.5) •Deadline to act on project after EIR certified reduced from 120 to 90 days (§65950) –60 days for certain affordable housing developments 21 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Permit Streamlining Act Adds §65913.10: •City must make “historic site” determination at the time the preliminary application is submitted, “[f]or purposes of any state or local law, ordinance, or regulation that requires the city or county to determine whether the site of a proposed housing development project is a historic site.” •Determination “remains valid” during pendency unless discovery made during grading/construction 22 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Permit Streamlining Act Amends §65943: •City required to provide the applicant with an exhaustive list, in writing, of the items that were not complete within 30 days of application submittal –deemed complete if no written determination in 30 days •City may not request new information that was not listed in the initial incomplete letter during subsequent reviews of an incomplete application 23 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com QUESTIONS?