New California Laws: Affordable Housing Bill Package

Supplement to The Daily Recorder and the Los Angeles and San Francisco

JANUARY 10, 2018 NEW CALIFORNIA LAWS 2 0 1 8 Affordable housing bill package

By Jon Goetz and Eva Plaza cess for housing development appli- advocates (in addition to project ap- cations in communities that have not plicants) who successfully challenge package of 15 bills designed approved sufficient housing to keep local disapprovals. The bills further al- to help communities combat up with regional fair share housing low courts to vacate local disapprovals ACalifornia’s affordable hous- goals. Eligible projects will not require and impose fines of $10,000 or more ing crisis becomes law in 2018. The conditional use permits, and can take per unit for violation of the Housing bills take several different approach- advantage of lower state-mandated Accountability Act. AB 1515 directs es to the housing dilemma, including parking standards. To take advantage courts to give less deference to local providing more funding for affordable of the special process, the proposed government determinations of a proj- Shutterstock housing development, streamlining development must be on an urban in- ect’s consistency with local zoning local government housing approvals, fill site, the existing zoning or general and general plans. housing department to review actions restoring local authority to require af- plan must allow residential uses, and SB 540 and AB 73: Housing Dis- by cities and counties for compliance fordable housing in private projects, the development must not be located tricts. Under SB 540, local govern- with their adopted housing elements, and strengthening the state’s general in sensitive areas. A developer who ments can identify Workforce Housing and allows the department to revoke plan housing element and “Anti-NIM- uses the streamlined process must pay Opportunity Zones requiring at least findings of housing element compli- BY” laws. prevailing wages. half of the housing to be affordable, ance for noncompliance. AB 879 tight- SB 2: The Permanent Source. AB 1505: Inclusionary Housing. and conduct upfront environmental ens housing element requirements, ex- Senate Bill 2 will provide a “perma- Assembly Bill 1505 overturns the 2009 reviews and public engagement, thus pands local analysis of constraints on nent source” of funds for affordable Palmer/Sixth Street Properties, L.P. eliminating the need for reviews of housing development, and directs the housing development through the im- v. City of Los Angeles ruling, which projects later proposed within those state housing department to study the position of a $75 fee on most recorded held that cities and counties were not zones. AB 73 authorizes local gov- reasonableness of local fees charged to real estate documents (except for home allowed to require private developers ernments to establish Housing Sus- housing developments. sales). The recording fee is expected to restrict rent levels under the state’s tainability Districts requiring at least AB 1521: Expiring Affordabili- to generate approximately $200-$300 Costa Hawkins Rental Housing Act. 20 percent of the housing to be af- ty Restrictions. This bill strengthens million per year. Half of the 2018 This bill authorizes (without mandat- fordable, and provides incentive funds the law regarding the preservation of funds will go to local governments for ing) local governments to require that for upfront zoning and environmental assisted housing developments by re- planning efforts to streamline housing new rental housing developments in- review to localities issuing permits for quiring an owner of an assisted hous- production and the other half will go to clude a specified percentage of afford- residential units on infill sites with- ing development to accept a bona fide the state for homeless assistance pro- able units. Localities need to allow in the district. Both bills limit local offer to purchase the development grams. Beginning in 2019, 70 percent alternate means of compliance, such government discretion to disapprove from a qualified purchaser, if speci- of the funds will be directly allocated as in lieu fees, land dedication, offsite projects within the zones. Projects in fied requirements are met. For assist- to local governments for affordable construction, and rehabilitation of ex- both types of zones must pay prevail- ed housing developments, SB 1521 housing projects and programs, and isting housing. This bill also gives the ing wages. expands owner obligations to provide the other 30 percent will be used by California Department of Housing and AB 1397 and SB 166: No Net Loss tenants notice of expiring use restric- the state for farmworker housing, mul- Community Development review and Zoning. These bills will modify the tions and remedies for failure to pro- tifamily housing and other affordable approval rights in some localities over existing “No Net Loss Zoning” law, vide such notice. housing programs. inclusionary ordinances that require which ensures that local governments AB 571: Farmworker Housing. SB 3: $4 Billion Housing Bond. more than 15 percent low-income af- do not downzone sites or approve new AB 571 makes several changes to the This bill will place a bond act on the fordable housing. housing at significantly lower densi- farmworker state low-income housing November 2018 state ballot, with AB 678, SB 167 and AB 1515: ties than projected in their housing el- tax credit program to pride more flex- bond proceeds to be used to fund var- Strengthening Anti- NIMBY Law. ements without identifying other sites ibility to this underutilized program, ious existing housing programs. $1.5 These bills strengthen the state’s that could accommodate the local need including reducing the percentage of billion of the funds would go to the Housing Accountability Act, known for housing sites at specified income units that must be occupied by farm- state’s Multifamily Housing Program as the “Anti-NIMBY Law,” which levels. The bills require that as de- worker households. for affordable housing development limits the ability of cities and counties velopment occurs, local governments loans, $1 billion would go to the state’s to disapprove proposed housing de- assess their ability to accommodate Jon Goetz is a principal in Meyers Nave’s CalVet veteran’s home loan program, velopments without making specified new housing on the remaining sites in Economic Development, Real Estate and Housing Practice. and the remainder will be allocated for findings. AB 678 and SB 167 impose a their inventory and make adjustments other affordable housing programs. higher standard of proof on local gov- to their zoning if needed. The bills also Eva Plaza is of counsel in Meyers Nave’s SB 35: Streamlined Approval ernments that make findings to sup- tighten standards for those sites. Trial and Litigation Practice Group and Process. This complex bill creates a port disapproval of housing projects, AB 72 and SB 879: Housing El- Municipal and Special District Law Prac- streamlined ministerial approval pro- and award attorney fees to housing ements. AB 72 authorizes the state tice Group.