BILL ANALYSIS SENATE LOCAL GOVERNMENT COMMITTEE Senator Tom Torlakson, Chair BILL NO: AB 2292 HEARING: 7/3/02 AUTHOR: Dutra FISCAL: No VERSION: 6/13/02 CONSULTANT: Detwiler RESIDENTIAL DENSITIES Background and Existing Law The Planning and Zoning Law requires every county and city to adopt a general plan with seven specified elements, including a housing element. A housing element must contain an assessment of housing needs, including an inventory of land suitable for residential development, including vacant and redevelopable sites and an analysis of the sites' zoning, public facilities, and public services. A housing element must also contain a five-year action program, including the identification of adequate sites to encourage the development of housing for all income levels. Local officials must revise their housing elements every five years. Major land use decisions --- zoning, subdivisions, public works, use permits --- must be consistent with local general plans. The courts say that a land use decision is consistent with a general plan if it furthers the plan's objectives and policies and does not obstruct their attainment. State law requires county supervisors and city councils to plan and zone enough vacant land for residential use, in relation to the growth projections in their general plans. Local officials must refrain from imposing subdivision standards that make affordable housing infeasible. If a court finds that a county or city violated these statutes, local officials have 60 days to comply. Some observers worry that when local officials react to "NIMBY" pressure by reducing the density of subdivisions and apartment projects, they make it hard to reach a general plan's goal for producing enough housing units during that five-year period. Downzonings and rezonings are among the reasons that counties and cities don't reach their housing goals. AB 2292 -- 6/13/02 -- Page 2 Proposed Law Assembly Bill 2292 requires every city and county to ensure that its inventory or programs for adequate housing sites required as part of its housing element can accommodate its share of regional housing needs during that planning period. AB 2292 prohibits a city and a county from reducing, requiring, or permitting the reduction of a parcel's residential density to a lower residential density that is below the density used to determine compliance with the housing element, unless the city or county makes written findings supported by substantial evidence that: The reduction is consistent with the general plan, including the housing element. The reduction substantially complies with other statutory provisions, including residential zoning standards, density bonus requirements, the housing element's inventory of sites, and the housing element's program for identifying sites. The remaining sites identified in the housing element are adequate to accommodate the regional share of housing needs. If the reduction of a parcel's residential density would result in an inadequate number of remaining sites, the bill allows the city or county to reduce that parcel's density if the city or county identifies sufficient additional, adequate and available sites with equal or greater residential density, so there is not net loss of residential unit capacity. If a court finds that the action of a city or county violates these requirements, the bill requires the court to award the plaintiff reasonable attorney's fees and costs, except in extraordinary circumstances where the court finds that it would not further the statute's purposes. AB 2292 declares that its requirements are in addition to other laws that limit the reduction of residential densities. Comments AB 2292 -- 6/13/02 -- Page 3 1. No net loss . Elected officials, planners, property owners, builders, and housing advocates spend plenty of hours and political capital writing general plans. Once the housing element is in place, they must make the other elements' policies and programs mesh. But when city councils and county supervisors give in to angry neighbors and cut residential densities, the plans just fall apart. Cities and counties can't produce enough housing if they step back from their planned densities. Adapting the concept of no-net-loss to residential densities, AB 2292 makes local officials who want to cut densities boost them somewhere else in the community. 2. Prescription for litigation . Although comprehensive planning is a rational process, land use decisions are inherently political. Rational decisions about housing elements' five-year goals clash in AB 2292 with the real politics of approving development projects. The bill's language anticipates more lawsuits, requiring written findings and substantial evidence. The bill invites litigation by promising attorney's fees to winning plaintiffs. The Committee may wish to consider whether the goal of AB 2292 is producing enough affordable houses and apartments, or producing lawsuits over irreconcilable differences. Are more lawsuits the best way to battle NIMBYism? 3. Paying the piper . Under the "American rule," each party in a lawsuit must pay its own attorney's fees unless they have a different agreement or they meet a statutory or judicial exception. Under the "private attorney general doctrine," a court may award attorney's fees to a prevailing private party in a lawsuit that enforces an important public right. Under AB 369 (Dutra, 2000), a court must award attorney's fees and costs to a prevailing plaintiff if the court found that local officials disapproved an affordable housing development or made the development infeasible. While last year's Dutra bill set the precedent for ordering courts to award attorney's fees in affordable housing cases, the Committee may wish to consider whether the Legislature should extend the practice with AB 2292. Will mandatory attorney's fees become commonplace with other land use lawsuits? 4. Watch your language . For more than 30 years, the AB 2292 -- 6/13/02 -- Page 4 Planning and Zoning Law has required major land use decisions to be consistent with local general plans. But the statute still doesn't define consistency. Two appellate court decisions and an Attorney General's opinion have embraced a definition from the advisory General Plan Guidelines issued by the Governor's Office of Planning and Research. That definition recognizes that a land use decision is consistent with a general plan if it furthers the plan's objectives and policies and does not obstruct their attainment. Rezoning residential property from medium-density to low-density is exactly the kind of decision that would obstruct the attainment of a plan's objectives and policies. Instead of fomenting litigation with elaborate findings, the Committee may wish to consider codifying the consistency definition. Clear statutory direction to local officials may influence their decisions. Assembly Actions Assembly Judiciary Committee: 12-0 Assembly Local Government Committee: 9-1 Assembly Floor: 57-13 Support and Opposition (6/27/) Support : California Association of Realtors, California Rural Legal Assistance Foundation, Western Center on Law and Poverty, A Community of Friends, A.F. Evans Company, Advanced Development and Investment, Affordable Housing Associates, Alliance for Retired Americans, Allied Housing, Apartment Association of California-Southern Cities, Barbara Sanders Associates, Beacon Housing, Berkeley Property Owners Association, Bonita House, Bridge Housing Corporation, Bruce Reed Goodmiller Law Firm, California Legislative Council for Older Americans, California State Building and Construction Trades Council, Cabrillo Economic Development Corp, California Affordable Housing Law Project, California Association of Homes and Services for the Aging, California Conference of Carpenters, California Federation of Labor AFL-CIO, California HIV Advocacy-Coalition Southern California Region, California Housing Council, California State Association of Electrical Workers, California State Pipe Trades Council, Center for Community Advocacy, Century Housing, Chicano Consortium, AB 2292 -- 6/13/02 -- Page 5 Children Now, CHISPA, Citizens for Responsible Growth, Civic Center Barrio Housing Corporation, Coachella Valley Housing Coalition, Coalition for Economic Survival, Community Housing Improvement Program, Chico Community Interfaith Services, Carlsbad Community Resource Associates, Congress of California Seniors, Consumers in Action for Personal Assistance, Council of Churches of Santa Clara County, Council of Community Housing Organizations, Creative Support Alternative, Davis and Company, East Bay Asian Local Development Corporation, East Bay Community Law Center, Enterprise Foundation, Esperanza Community Housing Corporation, Fair Housing Council of the San Fernando Valley, Fair Housing Council of San Diego, Fair Housing Foundation, Faith Housing Corporation, First Community Housing, Fremont Fair Housing, Friends Committee on Legislation, Gray Panthers of California, Great Northern Corporation, Hermandad Mexicana Nacional, Hillview Mental Health Center, Hollywood Community Housing Corporation, Homes for Life Foundation, Homeward Bound of Marin, Housing Policy Network, Housing Rights Committee of San Francisco, Humana Economic Development Group, Inglewood Neighborhood Housing Services, Jamboree Housing Corporation, Kennedy Commission, Los Angeles Coalition to End Hunger and Homelessness, Los Angeles County Area Agency on Aging Advisory Council, La Raza Centro Legal, Latin American Civic Association, League of Women Voters-Richmond Area, Los Angeles Housing Law Project, Los Angeles Housing Partnership, Low Income Housing Fund, Lutheran Social Services-Southern California, Many Mansions, Marin Housing Council, Mercy Housing Corporation, Minority Apartment Owners Association, Nancy Lewis Associates, Naphtali Knox & Associates, Neighborhood House Association, Neighborhood Unitarian Universalist Church, New Economics for Women, New Faze Development, O.N.E. Company, Office of Social Concerns-Diocese of San Bernardino, Older Women's League of California, Orange County Community Housing Corporation, Pacific Housing Development, People's Self-Help Housing, Planning for Elders in the Central City, Protection and Advocacy Inc., Ralph Me Chur Architects, Rural Communities Housing Development Corporation, Rural Community Assistance Corporation, Sacramento City Councilmember David Jones, Sacramento Housing Alliance, Sacramento Loaves and Fishes, Sacramento Mutual Housing, Sacramento Neighborhood Housing Services, San Diego County Apartment Association, Santa Barbara Rental Property Association, Santa Cruz Community Counseling, Second Somoan Congregational Church, Self Help AB 2292 -- 6/13/02 -- Page 6 Enterprises, Senior Action Network, Shelter Network, Shelter Partnership Inc., Skid Row Housing Trust, Sober Living Network, Society of St. Vincent de Paul, South County Housing, Southern California Association of Non-Profit Housing, Squier Properties, Sun Country Builders, Tenderloin Housing Clinic, The Agora Group, The Greenlining Institute, The WIN Project, Thomas Saffran Associates, Union Gospel Outreach, Vallejo Neighborhood Housing Services, Venice Community Housing Corporation, Vernon Property Association, Vietnam Veterans of California-Sacramento Branch, West Hollywood Community Housing Corporation, Western Center on Law and Poverty, Western States Council of Sheet Metal Workers, Westside Fair Housing, Westside Regional Center. Opposition : American Planning Association-California Chapter, California State Association of Counties, League of California Cities; Cities of Benicia, Colma, Costa Mesa, Dana Point, El Cajon, Emeryville, Foster City, Fullerton, Galt, Garden Grove, Hayward, Irwindale, Laguna Hills, Lake Forest, Lakewood, La Palma, La Quinta, Merced, Millbrae, Monterey, Moreno Valley, Oakland, San Clemente, San Dimas, San Marcos, Saratoga, Riverside, Signal Hill, Thousand Oaks, Yucca Valley; Norco Horsemen's Association, San Diego County, Santa Clara County Cities Association, San Mateo County Council of Cities, South Bay Cities Council of Governments.