Item 24 - Discussion of Assembly Bill 764
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ff' - AGENDA REPORT
CITY OF POW A Y
TO: Honorable Mayor and Members of the City Council
FROM: Councilmember Susan Callery
DATE: March 23, 1993
SUBJECT: Discussion of Assembly Bill 764 (Goldsmith) Adding
Flexibility to state Housing Laws
BACKGROUND
On February 24, 1993, Assemblyman Jan Goldsmith introduced AB 764
which relates to land use and general plans. Under existing law,
if adequate housing sites are not identified by a city or county
to accommodate the needs of all household income levels, the
housing program of the affected local government is required to
provide adequate affordable housing sites to meet housing needs.
FINDINGS
The provisions of AB 764 would authorize cities that have not
identified adequate housing sites to meet affordable housing
requirements by 1) identifying sites within the city's
jurisdiction that would provide adequate levels of affordable
housing as a result of committed assistance from the local
governments or 2) by identifying affordable housing sites outside
the city's jurisdiction.
Since existing fair share housing responsibilities have
restricted local governments' ability to comply with housing
requirements, AB 764 would offer cities greater flexibility in
meeting affordable housing requirements. The provisions of
AB 764 establish that the conversion and rehabilitation of
affordable housing would contribute to the total number of fair
share housing. Consequently, cities would gain flexibility in
terms of the construction, conversion, and rehabilitation of
affordable housing, while meeting fair share housing
requirements. In addition, the measure would enable a city to
expend funds outside of its jurisdiction to meet affordable
housing requirements.
ACTION:
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Agenda Report
Assembly Bill 764
March 23, 1993
page 2
On March 4, 1993, AB 764 was sent to the Assembly Local
Government Committee. According to the Assembly Local Government
Committee, the measure may be heard as early as wednesday, March
24, 1993. Since the bill has not yet been heard, the City is not
aware of any proponents or opponents to the measure.
In an effort to bring AB 764 to the attention of other cities and
to encourage support of the measure, Deputy Mayor Bob Emery sent
the letter provided in Attachment A to San Diego County cities
and seven northern California cities. A copy of the bill text has
also been provided in Attachment B.
ENVIRONMENTAL REVIEW
Environmental review is not required for this item under
California Environmental Quality Act guidelines.
FISCAL IMPACT
There is no fiscal impact.
PUBLIC NOTIFICATION AND CORRESPONDENCE
Assemblyman Jan Goldsmith was notified about this agenda item.
RECOMMENDATION
It is recommended that the City Council support AB 764 and direct
staff to notify Assemblyman Goldsmith about the City's support of
the measure.
Attachment:
A. AB 764 Letter from Deputy Mayor Emery
B. AB 764 Bill Text
2 of 13 MAR 2 3 1993 ITEM 24A-
~ OF POW A -
--,ITY
DON HIGGINSON. Mayor
BOB EMERY, Deputy Mayor
B. TONY SNESKO, Council member
SUSAJ.'f CALLERY, Councilmember
MICKEY CAFAGNA, Councilmember
March 15, 1993
Wayne Rassussen
Planning Department
City of Pleasanton
P.O. Box 520
Pleasanton, CA 94566-0802
Re: Assembly Bill 764 (Goldsmith)
Dear Mr. Rassussen:
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Attached is a summary and complete copy of AB 764 (Goldsmith). I direct your
attention to this bill as it is designed to add flexibility to present a housing law that
severely limits city options with regard to affordable housing.
As a former Councilmember and Mayor of the City of Poway, Assemblyman Goldsmith
is uniquely aware of the limitations placed upon cities in meeting their low and moderate
housing responsibilities. AB 764 is an attempt to give individual cities more latitude in
the construction, conversion and rehabilitation of affordable housing yet still meet their
fair share housing responsibilities under 5B 2274, better known as the Bergeson BilL
Many cities throughout California have run up against the Bergeson requirements and .
found it next to impossible to meet its narrow guidelines. Cities that are at buildout or
whose zoning or terrain confine growth have great difficulty meeting the 5 year "fair
share" plans adopted by their regional planning councils. Provisions of AB 764 would
allow for the expenditure of funds outside of cities and conversion and rehabilitation
would count towards the total fair share number.
I would urge you to study AB 764 and if you find that you can support its principles,
please contact the Assembly Local Government Committee as soon as possible. A list of
members of this Committee is attached for your use.
~ City Hall Located at 13325 Civic Center Drive
Mailing Address: P.O. Box 789, Poway, California 92074-0789 . (619) 748-6600, 695-1400
~ ""'''"''"''y,..d"'''' ATTACHMENT A
3 of 13 MAR231993 ITEM 244
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Assembly Bill 764
March 15, 1993.
Page 2
If you have any questions regarding this matter, please feel free to contact any of the
following individuals:
Deputy Mayor Bob Emery City of Poway 619/679-4202
City Manager Jim Bowersox City of Poway 619/679-4200
Assemblyman Ian Goldsmith 75th Assembly District 619/486-5191
Your personal support as well as your city's is crucial at this juncture.
Sincerely,
Bob Emery
Deputy Mayor
Attachments
LW\ 2 a 199'3 n~tA 241J-
4 of 13
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- Letter regarding AB764 mailed to following individuals on 3/16/93:
Wayne Rassussen Claude "Bud" Lewis
Planning Department Mayor
City of Pleasanton City of Carlsbad
P.O. Box 520 1200 Carls bad Village Drive
Pleasanton, CA 94566-0802 Carlsbad, CA 92008
Gary Fazzino Tim Nader
Mayor Mayor
City of Palo Alto City of Chula Vista
P.O. box 10250 P.O. Box 1087
Palo Alto, CA 94303 Chula Vista, CA 91912
Pamela Means Mary Herron
City Clerk Mayor
City of Napa City of Coronado
P.O. Box 660 1825 Strand Way
Napa, CA 94559 Coronado, CA 92118
Wayne Schwammel Rod Franklin
City Administrator Mayor
- City of Santa Monica City of Del Mar
110 East Cook Street, Room 1 1050 Camino Del Mar
Santa Monica, CA 93454 Del Mar, CA 92014
Harry Peacock Joan Shoemaker
City Manager Mayor
City of Saratoga City of EI Cajon
13777 Fruitvale 200 E. Main Street
Saratoga, CA 95070 EI Cajon, CA 92020
Barbara Waldman John Davis
Vice Mayor Mayor
City of Sunnyvale City of Encinitas
P.O. Box 3707 527 Encinitas Blvd.
Sunnyvale, CA 94088 Encinitas, CA 92024
Barbara Triland Jerry Harmon
Mayor Mayor
City f Los Altos City of Escondido
P.O. Box 733 201 N. Broadway
Los Altos, CA 94023 Escondido, CA 92025
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Jack Dale
Mike Bixler Mayor
Mayor City of Santee
City of Imperial Beach 10765 Woodside Ave.
825 Imperial Beach Blvd. Santee, CA 92071
Imperial Beach, CA 92032
Celine Olson
Art Madrid Mayor
Mayor City of Solana Beach
City of La Mesa 380 Stevens Avenue, #120
8130 Allison Avenue Solana Beach, CA 92075
La Mesa, CA 91941
Gloria McClellan
Brian Cochran Mayor
Mayor City of Vista
City of Lemon Grove 600 Eucalyptus Ave.
3232 Main Street Vista, CA 92084
Lemon Grove, CA 92045
George Waters
Mayor
City of National City
1243 National City Blvd.
National City, CA 91950
Dick Lyon
Mayor
City of Oceanside
300 N. Hill
Oceanside, CA 92054
Susan Golding
Mayor
City of San Diego
202 "C' Street
San Diego, CA 92101
Lee Thibadeau
Mayor
City of San Marcos
105 W. Richmar Ave.
San Marcos, CA 92069
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6 of 13 MAR 2 3 1993 ITEM 244
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PAGE 1
LEGISLATIVE COUNS~L'S DIGEST
"""d NUMBER: AB 764
AB 764, as introduced, Goldsmith. Land use: general plans.
Exist~ng law requires each city, county, or city and county to prepare and
c.d,_.pt a general plan for its jurisdiction that includes certain mandatory
elements, including a housing element. Existing law requires the housing
('l"llent to include, among other things, II program setting forth as-year
~chedule of actions the local government is undertaking to implement the
po~.icies of, and achieve the goals and objectives of, the housing element,
in'luding the provision of adequate sites to meet the housing needs of all
e,-:.",orric segments of the cOll\l1\unity. In the event that adequate sites to
~crommodate the needs of all household income levels are not identified by the
rj\y, county, or city and county, existing law requires the housing program of
tb,o. "ffected local government to provide for adequate sites to meet these
t"~,, ;;;ing needs pursuant to specified zoning procedures.
~his bill would authorize an affected local government to provide for
ade.:!u&te sites to meet the housing needs of all economic segments of the
conullunity by identifying sites within its jurisdiction that will provide
- ,quate levels of affordable housing due to committed assistance from the
."eal governments, as specified, or by identifying sites outside its
jurisdiction that shall be used for affordable housing pursuant to an
dg! .~ement entered into between or among the affected local government
entities.
Vote: majority. Appropriation: no. Fiscal committee: no.
Sc~te-mandated local program: no.
ATTACHMENT B MAR 231993 ITEM 24A
9 of 13
f~i.1. - 19.1993 02:31PM FROM TO 7481455 P.C2
PAGE 2
Display 1993-1994 Bill Text - INFORMATION
BILL NUMBER: AB 764
BILL TEXT
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
"ECTION 1. section 65583 at the Government Cod~ is amended to read:
6~583. The housing element shall consist of an identificatior, and analysis
of ~~isting and pr.ojected housing needs and a statement of goals, policies,
q~aLtLfied objectives, financial resources, and scheduled programs for the
preservation, improvement, and development of housing. The housing elemen~
~~311 identify adequate sites for housing, including rental hou~ing,
tactory-built housing, and mobilehomes, and shall make adequate provlsion for
thE existing and projected needs of all economic segments of the community.
The element shall contain all of the following:
(a) An assessment of housing needs and an inventory of resources and
COft:', traints relevant to the meeting of these ne..ds. The assessment and
irl\ 'c,.,t,'ry shall include the following:
(1) An analysis of population and employment trends and documentation of
p~nJections and a quantification ot ~he locality's existing and project~d
hou,c.Lllg needs for all income levels. These existing and projectec needs sha:
incl~de the locality's share of the regional housing need in accordance with
Section 65584.
(2) An analysis and documentation of household characteristics, including
level of payment compared to ability to pay, housing characteristic~,
inCluding overcrowding, and housing stock condition.
(3 ) An inventory of land suitable for residential development, including
vacant sites and sites having potential for redevelopment, and an analysis of
the relationship of zoning and public facilities and services to these sites.
(4) An analysis of potential and actual governmental constraints upon the
"'a~"tpnance, improvement, or development of housing for all income levels,
incluaing land use controls, building codes and thelr enforcement, site
.;.m:->rovements, fees and other exactions required of developers, and local
pi r,,~essing and permit procedures. Tho analysis shall also demonstrate local
effr.rts to remove governmental constraints that hinder the localj.ty from
meeting its share of the regional housing need in accordance with Section
65584.
(5) An analysis of potential and actual nongovernmental constraints upon
tre meintenance, improvement, or development of housing for all income levels,
including the availability of financing, the price of land, and the cost of
cOLstruction.
(6) An analysis of any special housing needs, such as those of the
handicapped, elderly, large families, !armworkers, families with female heads
of household.., and families and persons in nped of emergency shelter.
(7) An analysis of opportunities for energy conservation with respect to
10 of 13 MAR 2 3 1993 ITEM 24fT-
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PAGE 3
_Display 1993-1994 Bill Text - INFORMATION
L NUMBER: AB 764
BILL TEXT
r~~~dentlal development.
(~) An analysis of existing assisted housing developments that are eligible
to change from low-income housing uses during the next 10 years due to
termination of subsidy contracts, mortgage prepayment, or expiratlon of
J:e::tJ:ictions on use. "Assisted housing developments," for the purpose of this
Eec1.:.ioo, shtill mean multifamily rental housing that receives governmental
assistance under federal programs listed in subdivision (a) of Section
6'>863.10, state and local multitamily revenue bond programs, local
redevelopment programs, the federal community Development Block Grant Program,
or local in-lieu fees. "Assisted housing developments" shall also include
Inu:!. tifarnily rental unl ts that were developed pursuant to a local inclusionary
housing program or used to qualify for a density bonus pursuant to Section
f.SQI6.
\I,) The analysis shall include a listIng at each development by ptcojec:t
!,i:,,~e and address, the type of governmental assistance received, the earliest
p~ ,~~b~e date of change from low-income use and the total number of elderly
<<I:d nonelderly units that could be lost from the locality's low-income housing
st,)ck in eacr. year during the lo-year period. For purposes of state and
federally funded projects, the analysis required by this subparagraph need
only contain information available on a statewide basis.
(E) The analysis shall estimate the.total cost of producing new rental
housing that is comparable in size and rent levels, to replace tne unlts that
CQuld chanqe from low-income use, and an estimated cost of preserving the
- s;sted housing developments. This cost analysis for replacement housing may
U'; done aggregately for each five-year period and does not have to contain a
project by project cost estimate.
(C) The analysis shall identify public and private nonprofit corporations
I:~~wn to the local government which have legal and managerial capacity to
ac~ui~c and manage these housing developments.
(D) The analysis shall identify and consider the use of all federal, state,
ar,j local financing and subsidy programs which can be used to preserve, for
lOwer income households, the assisted housing developments, identified in this
paragraph, including, but not limited to, federal community Development Block
Grant Program funds, tax increment funds received by a redevelopment agency of
the community, and administrative fees received by a housing authority
op~rating within the community. In considering the use of these financing and
subsidy programs, the analysis shall identify the amounts of funds under ebch
aVoilable program which have not been legally obligated for other purposes and
which could be available for use in preserving assisted housing developments.
(b) (1) A statement of the community's goals, quantified objectives, and
policies relative to the maintenance, preservation, improvement, and
development of housing.
(2) It is recognized that the total housing needs identified pursuant to
subdivision (a) may exceed available resources and the community's ability to
sd.t.isfy this need within the content of the general plan requirements outlined
in A;ticle 5 (commencing with Section 65300). Under ~hese circumstances, the
quantitied objectives need not be identical to the total housing needs. The
9uantified objectives shall establish the maximum number of housing units by
'lcome category that can be constructed, rehabilitated, and conserved over a
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PJI.GE 4
Di.solay 1993-1994 Bill Text - INFORMATION
BILL NUMBER: AB 764
BILL TEXT
five-year time period.
(:;) A program which sets fo!:"th a five-year schedule of acti.cms the local
governmellt is Ulldert<:lking or intend" to undertake to implernent the policies
end achieve the goals and objectives of the housing element through the
ad,r:nistration of lane use and development controls, provision of regulatory
concessions and incentives, and the utilization of ~~propri~te federal and
st~te financing and subsidy programs when available and the utilization of
moneys in a Low and Moderate Income Housing Fund of an agency if the locality
ha~ established a redevelopment project area pursuant to the Community
Redevelopment Law (Division 24 (commencing with Section 33000) of the Health
and Safety Code). In order to make adequote p!:"ovision for the hou:;ing need"
of a,l economic segments of the community, the program shall do all of the
following:
(I) Identify adequate sites which will be made available through
appropriate zoning and development standards and with public services and
f<,,'illc:ies neE:ded to focilitate and encourage the development of a variety of
types of housing for all income levels, including multifamily rental housing,
facotory-built housinq, mobilehomes, emergency shelters, and transitional
hou~ing in order to meet the community's housing goals as identlIied in
su~di',ision (b). Where the inventory of sites, pursuant to paragraph (3) of
subdivisiou (a), does not identify adequate sites to accommodate the need for
gr0ups of all household income levels pursuant to Section 65584, the program
shall p!:"ovide for sufficient sites with ~e~~~~ either or both of the
foe lowi~ actions: - - - -
.. (A) zoning that permits owner-occupied and rental multifamily
residentlal use by right, including density and development standards that
could acco~~odate and facilitate the feasibility of housing for very low and
low-income households. For purposes of this paragraph, ehe phra~e "use by
right" shall mean the use does not require a conditional use permic, except
when the proposed project is a mixed-use project involving both commercial and
r~~~dential uses. Use by right for all rental multifamily residential housing
shall be provided in accordance with subdivision (f) of Sectior 65589.5.
~ Identifyin~ ~ site ~ sites within ~ ~ more of the
f()~lOw~ng co. teqOl'les:
(J.) Sltes located within the juriSdiction of the local
g~~ernrnent, wlthout current appropriate zoning, but that shall
prGvide ~ level of affordable housln~ adequate to meer-Ehe goals
of rh~s sectlon aue to comm1tted ass1stance from t~ocal
gc,venunent. --- -- ----
~ (11) s~tes located within the juriSdiction of the local
~,vernment that shall be converted from nonaffordaEIe to affo~dable
h0isln9 due-ro-comm1ttec asslstance-riOm the local government.
- (lll)-sItes located outslde the ~urlsd1ction of the local
guv;;rnment tha.t shall be used. for-a fordable hOllS1nq pursuant t.o an
agreementf ente!:"ed 1nto-between-Qr among the affected local ----
qovernmen ent1t1es-anQ conslstent wlth applicable law.
ill For purposes DrthlS paragraph, "committed a'S"SIStanc"," lI1eans
th~t the-rocal~overrument has entered into a valld contract, or----
otherWISe eneu ered funds:-tor the purpose-of provldlnq the --
iequ~red affordable houslnq.--- --- -- ---
12 of 13 MAR 23 1993 ITEM 24,4--
Mar" 19, 1993 02: 33PM FROM TO 7481-455 P. l~r5
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PAGE 5
Display 1993-1994 Bill Text - INFORMATION
"--,L NUMBER: 1'.B 764
BILL TEXT
(2) Assist in the development of adequate housing to meet the needs ot low-
and moderate-income households.
(3) hcdre~s end, where appropriate and legally possible, remov~
governrn~nta1 constraints to the maintenance, improvement, and development of
housing.
(4) Conserve and improve the condicion of Che exiscing affordable housing
stock, which may include addressing ways to mitigate the loss of dwelling
units demolished by public or private action.
(5) Promote housing opportunities for all persons regardless of race,
religion, sex, marital status, ancestry, national origin, or color.
(6) (A) Preserve tor lower income huuseholds the assisted housing
developments identified pursuant to paragraph (8) of subdivision (a). The
prcqram for presp-rvation of the assisted housing developments shall utilize,
to the extent necessary, all available federal, state, and local financing and
subsidy programs identified in paragraph (8) of subdivision (a), except where
a community ha" uLlkL urgent need" !o~' which 0.1 ternati ve funding ~ource:: are
not available. The program may include strategies that involve local
regulation and technical assistance.
(B) The program shall include an identification of the agencies and
officials responsible for the implementation of the various actions and the
me_ns by which consistency will be achieved with other general plan elements
and community goals. The local government shall make a diligent effort to
achieve public participation of all economic segments of the co~~~~ity in the
'~'ve10pment of the hous~ng element, and the program shall describe this
.fort.
(d) The analysis and program for pres~rving assisted housing developments
required by the amendments to this section enacted by the statutes of 1989
shall be adopted as an amendment to the housing element by July 1, 1992.
(e) Failure of the department co review and report its findings pursuant to
Section 65585 to the local government between July I, 1992, and the next
periodic review and revision required by Section 65588, concerning the housing
element amendment reqllired by the amendments to this section by the Statutes
of 1989, shall not be used as a basis for allocation or denial of any housing
asslstance administered pursuanL to part 2 (commencing with Section 50400) of
Division 31 of the Health and Safety Code.
13 of 13 MAR 231993 ITEM 24,4-
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