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HomeMy Public PortalAbout06) 7B Legislative Update_Staff Report MANAGEMENT SERVICES DEPARTMENT MEMORANDUM DATE: August 18, 2020 TO: The Honorable City Council FROM: Bryan Cook, City Manager By: Brian Haworth, Assistant to the City Manager SUBJECT: LEGISLATIVE UPDATE RECOMMENDATION: The City Council is requested to receive and file this report. BACKGROUND: 1. The state’s 2020 Legislative Session convened on January 6 but has since been disrupted twice by the coronavirus outbreak. This has left roughly 700 bills awaiting votes, prompting lawmakers to focus on priority legislation. 2. Affordable housing, police reform, and coronavirus-related measures continue to take precedence: • While no individual housing bill is as sweeping as SB 50—the controversial dense-housing bill that failed the Senate in January—several proposals aim to make a dent in California’s housing shortage. • Police reform continues to gain support with proposed legislation that bans police use of tear gas and neck holds, and allows independent investigations of police use of force. • Coronavirus-related measures are seeking additional workplace protections, guaranteed sick leave, and expanded eviction moratoriums and payment forbearances until April 2021. 3. California lawmakers have until August 31 for bills to pass both houses. Governor Newsom then has until September 30 to sign or veto these bills. All approved legislation will become law effective January 1, 2021, unless otherwise stipulated. City Council August 18, 2020 Page 2 of 3 ANALYSIS: Attachment A summarizes proposed legislation that may significantly impact city policies, municipal operations, and local neighborhoods. Identified bills are those that have passed their house of origin and continue to make their way through the legislative process. Items worth noting include: • SB 795, which revises SB 5, a 2019 legislative bill that was vetoed because of budgetary concerns. This new iteration addresses the governor’s fiscal interests, now drawing revenue from the state’s general fund. If approved, the legislation would gradually provide over $2 billion annually for affordable housing projects. • Two bills, AB 2345 and SB 1085, would expand the state’s density bonus law, allowing developers to build taller buildings in exchange for affordable housing. The Senate’s version, SB 1085, focuses on “missing middle” housing that is more affordable for middle-income earners; the Assembly’s text focuses on boosting low-income housing by allowing a 50 percent density bonus. • Ambitious goals for addressing homelessness were outlined in AB 3269, which would require cities and counties to create plans to reduce homelessness in their communities (by 90 percent) by 2028. A related proposal, AB 3300, seeks $2 billion annually to combat homelessness with funds going to cities, councils, continuum of care agencies (e.g., LAHSA), and affordable housing developers. Expenditures would generally require a 25 percent local match. • Under AB 3040, cities could receive additional Regional Housing Needs Allocation (RHNA) credits if they allow fourplexes in areas currently zoned for single-family housing. Meanwhile, AB 725 would shift density to single-family neighborhoods (allowing duplexes and other multi-family developments) in those cities that have not met RHNA housing targets. • Two bills, SB 899 and AB 1851, would bypass zoning restrictions by allowing faith- based organizations and other nonprofit institutions to build 100 percent affordable housing on their land. Sites must be on a one-quarter-acre site in size or greater; minimum parking requirements would also be eliminated for church properties as long as half of the spaces remain. • SB 902 and SB 1120 looks to eliminate single-family zoning throughout the state. SB 902 would increase baseline zoning in Temple City to three homes per lot by right; SB 1120 would ministerially allow qualifying single-family lots to be developed into duplexes or subdivided into two separate lots (opening opportunities for up to four units per lot). An update report on these and other approved bills will be presented to Council in October. City Council August 18, 2020 Page 3 of 3 CITY STRATEGIC GOAL: Actions contained in this report align with the strategic goals of good governance. FISCAL IMPACT: There is no fiscal impact associated with the requested Council action. ATTACHMENT: A. Legislative Update (as of July 27, 2020) ATTACHMENT A Legislative Analysis as of July 27, 2020 X-X-X (ayes-noes-no vote recorded) pg. 1 of 5 APACA: American Planning Association of California CCCA: California Contract Cities Association LCC: League of California Cities ADUs AB 953 (Bloom et al.) Land use: accessory dwelling units. Clarifies that a house can add both an accessory dwelling unit and a junior accessory dwelling unit. Deems a permit application for either type of dwelling unit to be approved if the local agency has not acted upon the completed application within 60 days. 01/30/2020: Passed assembly floor, 76-0-4 (Chau-YES) DENSITY BONUS AB 2345 (Gonzalez) Planning and zoning: density bonuses: affordable housing. Increases density bonuses up to 50% for buildings that are 33% low-income housing. (The current maximum density bonus for a mixed-income development is 35%, which can be achieved if a building is 20% low-income housing.) 06/10/2020: Passed assembly floor, 74-1-4 (Chau-YES) Position(s): APACA-Oppose Unless Amended; CCCA-Oppose LCC-Oppose Unless Amended SB 1085 (Skinner) Density Bonus Law: qualifications for incentives or concessions. Extends incentives available under the Density Bonus law to small projects of two or more units—in exchange for some affordable housing. It also creates additional density bonuses for projects that incorporate moderate-income and student housing. 06/26/2020: Passed senate floor, 31-1-8 (Rubio-YES) Position(s): LCC-Oppose Unless Amended FUNDING SB 795 (Beall et al.) Affordable Housing and Community Development Investment Program. Revises SB 5, which was vetoed last year because of budgetary constraints. The initial legislation would have gradually provided $2 billion annually for affordable housing projects. The revised bill addresses the governor’s fiscal concerns, drawing revenue from the state’s general fund instead of from property taxes (alleviating fears that schools would lose money). 06/25/2020: Passed senate floor, 29-10-1 (Rubio-YES) Position(s): CCCA-Support; LCC-Support ATTACHMENT A Legislative Analysis as of July 27, 2020 X-X-X (ayes-noes-no vote recorded) pg. 2 of 5 APACA: American Planning Association of California CCCA: California Contract Cities Association LCC: League of California Cities HOMELESSNESS AB 3269 (Chiu et al.) State and local agencies: homelessness plan. Mandates the state Department of Housing and Community Development to set a benchmark goal in reducing homelessness by January 2028. Counties will set annual and actionable benchmark goals; cities would be required to help meet these goals, as well as request and actively seek the participation of all homeless continuums of care (that serve within the city’s jurisdiction). 06/10/2020: Passed assembly floor, 58-10-11 (Chau-YES) Position(s): LCC-Watch AB 3300 (Santiago et al.) Homelessness: California Access to Housing and Services Act. Establishes an ongoing $2 billion appropriation to prevent homelessness; funds will go to cities, counties, homeless continuum of care agencies (ex: LAHSA), and affordable housing developers. Funding would focus on vulnerable populations; expenditures would require a 25% local match. 06/15/2020: Passed assembly floor, 62-2-15 (Chau-YES) Position(s): LCC-Watch SB 1138 (Wiener) Housing element: emergency shelters: rezoning of sites. Reduces the number of regulations and standards that cities can put on new shelters to objective written standards. Allows shelters in nonresidential areas close to services and transportation. Requires additional criteria to be used in determining sites to be rezoned to accommodate emergency shelters. 06/22/2020: Passed senate floor, 30-8-2 (Rubio-YES) INSPECTIONS AB 3352 (Friedman) State Housing Law: enforcement response to complaints. Requires municipalities to inspect complaints of lead-hazard building violations beginning July 1, 2021. Cities or counties are to provide free copies of the inspection report and citations issued, if any, to all affected parties. 06/10/2020: Passed assembly floor, 51-20-8 (Chau-YES) ATTACHMENT A Legislative Analysis as of July 27, 2020 X-X-X (ayes-noes-no vote recorded) pg. 3 of 5 APACA: American Planning Association of California CCCA: California Contract Cities Association LCC: League of California Cities PLANNING AB 725 (Wicks) General plans: housing element: income-restricted housing. Requires at least 25% of new zoned capacity be zoned for at least two but not more than 35 homes per acre. Applies to those cities that have not met their RHNA housing targets. 01/30/2020: Passed assembly floor, 48-22-10 (Chau-YES) Position(s): APACA-NEUTRAL IF AMENDED AB 3040 (Chiu) Local planning: regional housing needs assessment. Authorizes a city or county to include in its inventory of land suitable for residential development, specified sites that contain an existing single-family dwelling unit to provide four dwelling units as a use by right. The legislation would require these sites to be identified to satisfy either the “moderate” or “above-moderate” regional housing need income level. 06/10/2020: Passed assembly floor, 71-4-4 (Chau-YES) Position(s): APACA-Support; LCC-Support In Concept VACANCIES SB 1049 (Glazer) Local ordinances: short-term rentals. Increases the maximum fine a city can charge for illegal short-term rentals (less than 30 consecutive days), i.e., a fine not exceeding $1,500 for a first violation, $3,000 for a second violation of the same ordinance within one year, and $5,000 for each additional violation of the same ordinance within one year of the first violation. 06/22/2020: Passed senate floor, 32-8-0 (Chau-YES) Position(s): LCC-Support If Amended ZONING AB 1851 (Wicks) Faith-based organizations: housing development projects: parking requirements. Associated with SB 899 (below): Eliminates minimum parking requirements, thereby allowing religious organizations to build homes on their parking lots. Only half the spaces need to remain. 06/10/2020: Passed assembly floor, 70-4-5 (Chau-YES) ATTACHMENT A Legislative Analysis as of July 27, 2020 X-X-X (ayes-noes-no vote recorded) pg. 4 of 5 APACA: American Planning Association of California CCCA: California Contract Cities Association LCC: League of California Cities AB 3107 (Bloom) Planning and zoning: general plan: housing development. Permits housing in large areas of commercial zoning if 20% of units are made affordable. Eligible sites are those where three quarters of its perimeter adjoin parcels developed with urban uses. If enacted, the temporary legislation (until 2026) applies only to municipalities that have not zoned enough land for housing. 06/10/2020: Passed assembly floor, 52-14-13 (Chau-YES) Position(s): LCC-Watch AB 3153 (Rivas) Parking and zoning: parking credits. Allows bike parking and car-share spaces to count towards parking requirements. Two bike spaces would count as one car space; each car-share stall would count as two regular car spaces. The incentive is capped at 15% of parking spots for affordable housing and market-rate developments close to transit, and 30% for affordable housing close to transit. 06/08/2020: Passed assembly floor, 57-13-9 (Chau-YES) SB 899 (Weiner) Planning and zoning: housing development: hospitals and religious institutions. Makes it easier for nonprofit hospitals and religious institutions to bypass local zoning restrictions to build 100% affordable housing on their land. Housing built under this proposal would be restricted to lower-income households (if rented for 55 years or owner-occupied for 45 years). Developments can be in residential, mixed-use, or commercial areas and must be on a one-quarter-acre site in size or greater. 06/25/2020: Passed senate floor, 39-0-1 (Rubio-YES) Position(s): CCCA-Oppose SB 902 (Weiner) Planning and zoning: neighborhood multifamily project: use by right: density. Increases baseline zoning to two, three, or four units per parcel depending on the city’s population size. For Temple City, this legislation would permit—but not require—three homes per lot by right. Provisions of this bill would also make it easier for cities to rezone land for up to 10 homes per lot if near transit jobs or on an urban infill site. Current building heights imposed by municipalities would remain the same along with other local building rules, e.g., design guidelines. 06/22/2020: Passed senate floor, 33-3-4 (Rubio-YES) Position(s): CCCA-Watch ATTACHMENT A Legislative Analysis as of July 27, 2020 X-X-X (ayes-noes-no vote recorded) pg. 5 of 5 APACA: American Planning Association of California CCCA: California Contract Cities Association LCC: League of California Cities SB 1120 (Weiner) Subdivisions: tentative maps. Requires cities and counties to ministerially permit a duplex or parcel split (into two lots) within single-family neighborhoods. The bill generally excludes projects requiring the demolition of housing units, or the alteration of housing units that would require evictions. 06/24/2020: Passed senate floor, 39-0-1 (Rubio-YES) Position(s): CCCA-Watch; LCC-Support If Amended