BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2634| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 AB 2634 Page 2 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 AB 2634 Page 3 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 AB 2634 Page 4 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 AB 2634 Page 5 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 AB 2634 Page 6 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 **** END ****