BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 2634|
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                                 THIRD READING


          Bill No:  AB 2634
          Author:   Lieber (D)
          Amended:  8/28/06 in Senate
          Vote:     21

           
           SEN. TRANSPORTATION & HOUSING COMMITTEE :  8-4, 6/27/06
          AYES:  Lowenthal, Cedillo, Ducheny, Kehoe, Machado,  
            Simitian, Soto, Torlakson
          NOES:  Ashburn, Dutton, Margett, Runner
          NO VOTE RECORDED:  McClintock

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  46-33, 5/30/06 - See last page for vote


           SUBJECT  :    Housing element law:  extremely low-income  
          housing needs

           SOURCE  :     Author


           DIGEST  :    This bill requires cities and counties, within  
          their housing elements, to analyze the need and develop  
          quantified objectives for the production of extremely  
          low-income housing.

           Senate Floor Amendments  of 8/28/06 (1) cite the bill as the  
          Supportive Housing Development Act of 2006, (2) require an  
          analysis of governmental constraints to the development of  
          multifamily rental housing, factory-built housing,  
          mobilehomes, housing for agricultural employees, supportive  
                                                           CONTINUED





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          housing, emergency shelters, single-room occupancy units,  
          and transitional housing, (3) clarify that cities and  
          counties must make a diligent effort to achieve the public  
          participation of all economic segments of the community in  
          the development of the housing element, and (4) clarify  
          that changes to housing element law take effect when the  
          next housing element cycle begins, or when a city or county  
          submits its first draft to the department for review if  
          that is more than 90 days after the effective date of the  
          bill, and (5) add chaptering amendments to resolve  
          conflicts with SB 1322 (Cedillo).

           ANALYSIS  :    The Planning and Zoning Law requires cities  
          and counties to prepare and adopt a general plan to guide  
          the future growth of a community.  Every general plan must  
          contain seven elements:  land use, circulation, housing,  
          conservation, open-space, noise, and safety.  Cities and  
          counties must revise their housing elements every five  
          years, following a staggered statutory schedule.  The  
          Department of Housing and Community Development (HCD)  
          review both draft and adopted housing elements to determine  
          whether or not they are in substantial compliance with the  
          law.

          Before each revision, each community is assigned its fair  
          share of the regional housing need for the very low-, low-,  
          moderate- and above-moderate income categories through the  
          regional housing needs assessment (RHNA) process.  A  
          housing element must identify and analyze existing and  
          projected housing needs for these income categories,  
          identify adequate sites with appropriate zoning to meet the  
          housing needs of these income segments of the community,  
          and ensure that regulatory systems provide opportunities  
          for, and do not unduly constrain, housing development.  To  
          the extent that a city or county does not have adequate  
          sites within its existing inventory of residentially zoned  
          land, then the jurisdiction must adopt a program to rezone  
          land at appropriate densities to accommodate the  
          jurisdiction's housing need for all income groups.  The  
          city or country must also establish "quantified objectives"  
          of how much housing it estimates will be constructed,  
          rehabilitated, or preserved in each income category during  
          the planning period with available resources.  The  
          quantified objectives (production goals) may be less than  







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          the total housing need (RHNA number), which the city or  
          county must then accommodate through its zoning.

          Existing law defines the relevant income categories as  
          follows:

          1.Extremely low-income households are those earning less  
            than 30 percent of the area (county) median income.

          2.Very low-income households are those earning less than 50  
            percent of the area median income.

          3.Low-income households are those earning less than 80  
            percent of the area median income.

          4.Moderate-income households are those earning less than  
            120 percent of the area median income.

          5.Above moderate-income households are those earning more  
            than 120 percent of the area median income.

          This bill:

          1.Requires cities and counties, within their housing  
            elements, to analyze the need and identify adequate sites  
            for extremely low-income housing and requires they  
            calculate the subset of very low income households that  
            qualify as extremely low-income households.  The bill  
            allows local agencies to use either census track data to  
            calculate the percentage or presume that 50 percent of  
            the very low-income households qualify as extremely  
            low-income, and requires that the total number of  
            extremely low-income households and very low-income  
            households shall equal the jurisdictions allocation of  
            very low-income households.

          2.Requires cities and counties to develop a quantified  
            objective for and assist in the production,  
            rehabilitation, or preservation of extremely low-income  
            housing

          3.Adds supportive housing (housing with services for  
            persons who are disabled, homeless, or at risk of  
            becoming homeless) and single-room occupancy units to the  







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            list of housing types for which a city or county shall  
            identify sites as needed.

          4.Specifies that the housing elements analysis of  
            governmental constraints to the development of housing  
            for all income groups include multifamily rental housing,  
            factory-built housing, mobilehomes, housing for  
            agricultural employees, supportive housing, emergency  
            shelters, single-room occupancy units, and transitional  
            housing.

          5.Clarifies that changes to housing element law take effect  
            when the next housing element cycle begins, or when a  
            city or county submits its first draft to the department  
            for review if that is more than 90 days after the  
            effective date of the bill.

          6.Deletes obsolete provisions.

          7.Includes double-jointing language with SB 1322 (Cedillo).

           Comments

          Who are extremely low-income families  ?  A family that earns  
          30 percent of the statewide median income in California is  
          one that brings in $19,234 or les per year, or roughly  
          $9.25 an hour for a full-time worker.  These workers  
          include entry-level health-care aides, childcare workers,  
          and office clerks.  The extremely low-income category also  
          includes people with disabilities, seniors, and those  
          transitioning out of homelessness.  To be affordable, these  
          households need rents that are roughly $480 per month.   
          Yet, under current law, most housing plans consider only  
          those families at 50 percent of the area median income and  
          above, who can afford rents in the $800 range.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/10/06) (Unable to reverify)

          Affordable Housing Network of Santa Clara County
          Association of Regional Center Agencies
          California Alliance of Retired Americans







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          California Association of Homes and Services for the Aging
          California Council of the Blind
          California Foundation for Independent Living Centers
          California Rural Legal Assistance Foundation
          Californians for Disability Rights
          City of San Jose
          County of San Mateo
          Developmental Disabilities Board Area 10
          Federation of Retired Union Members of Santa Clara County
          Gray Panthers of California
          Housing California
          Independent Living Resource Center of San Francisco
          JERICO
          Older Women's League of California
          Protection and Advocacy, Inc.
          Resources for Independent Living
          Regional Center of the East Bay
          San Diego Housing Federation 
          Santa Clara County Board of Supervisors
          Southern California Association of Non-Profit Housing
          Western Center on Law and Poverty

           OPPOSITION  :    (Unable to verify at time of writing)

          American Planning Association - California Chapter (prior  
          version
          California State Association of Counties (prior version)
          City of Lakewood (prior version)
          San Diego County Board of Supervisors (prior version)

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          the current income categories used in housing element law  
          are inadequate and result in most cities failing to plan  
          adequately for a large segment of their workers, seniors,  
          and others with the lowest incomes.  Most jurisdictions  
          focus their analysis and affordable housing programs on  
          very low-income households and ignore the unique housing  
          needs of extremely low-income households.  This bill seeks  
          to ensure that cities and counties consider the housing  
          needs of families earning less than 30 percent of the area  
          median income.

           ARGUMENTS IN OPPOSITION  :    In its letter of opposition,  
          the American Planning Association states that "it makes  







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          little sense to impose a new requirement that is for all  
          practical purposes unattainable."  They point out that  
          there are insufficient funds at present to allow local  
          governments to meet their current low- and very low-income  
          housing requirements, and that adding a new extremely  
          low-income category would make an already difficult  
          situation considerably worse.  
           

           ASSEMBLY FLOOR : 
          AYES:  Arambula, Baca, Bass, Berg, Bermudez, Blakeslee,  
            Calderon, Canciamilla, Chan, Chavez, Chu, Cohn, Coto, De  
            La Torre, Dymally, Evans, Frommer, Goldberg, Hancock,  
            Jerome Horton, Jones, Karnette, Klehs, Koretz, Laird,  
            Leno, Levine, Lieber, Lieu, Liu, Montanez, Mullin,  
            Nation, Negrete McLeod, Oropeza, Pavley, Ridley-Thomas,  
            Ruskin, Saldana, Salinas, Torrico, Umberg, Vargas, Wolk,  
            Yee, Nunez
          NOES:  Aghazarian, Benoit, Bogh, Cogdill, Daucher, DeVore,  
            Emmerson, Garcia, Harman, Haynes, Shirley Horton,  
            Houston, Huff, Keene, La Malfa, La Suer, Leslie,  
            Matthews, Maze, McCarthy, Mountjoy, Nakanishi, Niello,  
            Parra, Plescia, Richman, Sharon Runner, Spitzer,  
            Strickland, Tran, Villines, Walters, Wyland
          NO VOTE RECORDED:  Nava


          JJA:cm  8/27/06   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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