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State Update

Key Housing Related Bills
March 13, 2008


Two-year Bills Carried Over From 2007

The following bills passed their house of origin and are being taken up again in this legislative session.

AB 239 - DeSaulnier (Local Document Recording Fees)

NPH strongly supported this bill in 2007 which would allow Contra Costa and San Mateo counties to increase their document recording fee by $25 to fund their housing trust funds. Unfortunately, the Bill did not pass out of committee in 2007.  Although this bill continues to face an uphill battle with opposition from certain segments of the Realtor community and others, advocates are hopeful that this bill will gain more political traction in this legislative session.

SB 303 - Ducheny (Housing Element Reform)

NPH also supported this bill which was sponsored by the California Building Industry Association CBIA and would make the following planning law changes:

•    Require a city or county to rezone land to meet its regional housing needs assessment (RHNA) within one year of adopting its housing element;
•    Require so-called "Mullin densities" as the minimum density on sites zoned for lower-income developments;
•    Require the city/county to update its open space element every five years;
•    When a development application is submitted, prohibit a city or county from reducing the density on the site below the housing element density, unless the city/county makes specific findings, and
•    Require the land use element to designate land for 10 years of housing need.

CBIA is hopeful that with some changes to satisfy the concerns of local government and environmentalists, that SB 303 may have a chance of passing in 2008. 

SB 375 - Steinberg (Regional Planning)

Carried by the President Pro Temp elect of the State Senate, this bill would require most Regional Transportation Plans to include a "preferred growth scenario" (PGS). The PGS would identify sufficient housing sites to accommodate population growth, identify and exclude from development certain farmlands and resources lands, and achieve C02 reductions. Developments on areas outside those identified for housing would not receive regional or state transportation funding. NPH is working closely with housing allies in Sacramento to ensure that the bill’s requirements do not undermine or conflict with existing housing element law or current regional planning efforts such as the ABAG/MTC sponsored “Focus” effort.  Senator Steinberg’s staff have been receptive to making changes to SB 375 to address concerns from housing advocates, and it is likely that with amendments this bill will receive a favorable hearing in committee in April.

New Bills – Introduced by February 22, 2008

Building Standards
 
AB 2925 (Davis) Substandard Buildings: New Ownership Interest: Registration

(1) The State Housing Law regulates buildings used for human habitation and requires specified local agencies to enforce building standards. Under existing law, if any sale or other transfer of property to a 3rd party occurs during the period between the issuance of a notice of violation relating to substandard buildings and the abatement of the violation, or any administrative or judicial actions related thereto, the transferor is required to record a Notice of Conveyance of Substandard Property with the county recorder where the property is located, within 5 days after the sale or transfer occurs, identifying the name and address of the buyer or transferee. The notice is required to be executed with a signature that the information is true and correct, under penalty of perjury.

Under existing law, any person who obtains an ownership interest in any property after a notice of pendency of an action or proceeding relating to substandard buildings was recorded with respect to the property is subject to any order to correct the violation, including time limitations, specified in the citation or other notice of violation.
This bill would require a person or entity that acquires an ownership interest in a property for which an enforcement agency has recorded with the county recorder any of specified documents relating to substandard building violations to provide that enforcement agency with specified information and documents, concurrently with the completion of sale, an exchange of property, or closure of escrow. The bill would impose a state-mandated local program by imposing additional duties upon enforcement agencies.

The bill would impose specified civil penalties for failure to comply with these reporting requirements. The bill would authorize a public prosecutor to bring a civil action seeking a civil penalty, and provide that the civil penalty shall be a lien on the property and enforceable as a civil judgment.

The bill would exempt from these provisions real property owned by a governmental entity and real property owned by a financial institution, as specified, that has a recorded deed of trust on the real property and acquires possession of the real property pursuant to the terms and conditions of the loan. The bill would further provide a 60-day exemption for a lender, as defined, to comply with these provisions.

The bill would also delete a notice requirement specific to Los Angeles County.
(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.


SB 1473 (Calderon) Building standards: green buildings.       

(1) The California Building Standards Law provides for the adoption of building standards by state agencies by requiring all state agencies that adopt or propose adoption of any building standard to submit the building standard to the California Building Standards Commission for approval or adoption.

This bill would revise the definition of "building standard" in existing law to include sustainable building standards and green building standards, as defined in the bill.
The bill would require each city, county, or city and county to collect a fee from any applicant for a building permit, assessed at the rate of $4 per $100,000 in valuation, as determined by the local building official, with appropriate fractions thereof, but not less than $1. The bill would authorize the city, county, or city and county to retain not more than 10% of the fees collected for related administrative costs and for code enforcement education, including certifications in the voluntary construction inspector certification program. The bill would require the city, county, or city and county to transmit the remainder to the commission for deposit in the Building Standards Administration Special Revolving Fund which the bill would establish in the State Treasury. The bill would establish a state-mandated local program by imposing additional duties on local government.

The bill would require that all funds received by the commission under the California Building Standards Law be deposited in the fund and be available, upon appropriation, to the commission for expenditure in carrying out these provisions of existing law, with emphasis placed on the development, adoption, publication, and educational efforts associated with green building standards.

The bill would require the commission and state agencies to adopt, and would provide for the adoption by local government of, green building standards.

(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.



CEQA Reform

AB 1017 (Ma) California Environmental Quality Act: appeal to local lead agency's elected decisionmaking body.   

(1) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.

CEQA provides that if a nonelected decisionmaking body of a local lead agency certifies an EIR, approves a negative declaration or mitigated negative declaration, or determines that a project is not subject to CEQA, that certification, approval, or determination may be appealed to the agency's elected decisionmaking body, if any.
This bill would require that appeal to be brought within 30 days of the certification, approval, or determination, unless that period is extended to a maximum of 60 days by the elected decisionmaking body, in which case the appeal would be required to be brought within that extended period. By increasing the duties of a local government to determine whether to extend an appeal period, the bill would impose a state-mandated local program.

(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

As amended Jan. 1, 2008: Requires certain appeals of CEQA decisions to be filed within 30 days of the decision.

As introduced: Affects 1C"s $100 million, $200 million, and $125 million for BEGIN Program. For the $100 million and $125 million, requires projects to:

1. Be consistent with General Plan
2. Use an unspecified percent of funds for 1st homebuyer assistance to low income families
3. Leverage other monies

For the $200 million, #1 and 3 would apply.


Housing Development

 AB 2280  (Saldana) Density bonus.   

The Planning and Zoning Law requires, when a developer of housing proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus and other incentives or concessions for the production of lower income housing units or the donation of land within the development if the developer, among other things, agrees to construct a specified percentage of units for low-, very low, or moderate-income households or qualifying residents.

This bill would require, for qualifying senior citizen housing developments, as defined, that 100% of the units in the development be for senior citizens.
The bill would delete a provision authorizing the seller to retain the value of any improvements, the downpayment, and the seller's proportionate share of appreciation, upon resale of low- and very low income units used to qualify for a density bonus, incentive, or concession.

The bill would require a city, county, or city and county to grant a concession or incentive requested by the applicant under existing law unless the city, county, or city and county makes a written finding, based upon substantial evidence, that, among other things, the concession or incentive would be contrary to state or federal law.

The bill would revise the percentage of lower income, very low income, and moderate income households required for qualification for incentives and concessions.

The bill would delete provisions requiring a court to award the plaintiff reasonable attorney's fees and costs of suit if the court finds that a refusal to grant a requested density bonus, incentive, or concession, or a waiver or reduction of development standards, is in violation of existing law.

The bill would delete a requirement that an applicant for a waiver or reduction of development standards show that the waiver or modification is necessary to make proposed housing units economically feasible.
The bill would require, as a condition for the granting of a density bonus to a developer in exchange for donating land to a city, county, or city and county for very low income housing, that the local agency identify and approve a source of funding for the very low income units.

The bill would specify that, for the purposes of these provisions of existing law, a concession or incentive does not include elimination or modification of the public review process for development.


AB 2604 (Torrico) Developer fees.   

Existing law prohibits a local agency that imposes any fees or charges on a residential development for the construction of public improvements or facilities from requiring the payment of those fees or charges until the date of the final inspection, or the date the certificate of occupancy is issued, whichever occurs first, with specified exceptions. If the fee or charge is not fully paid prior to issuance of a building permit, existing law authorizes the local agency issuing the building permit to require the property owner, as a condition of issuance of the building permit, to execute a contract to pay the fee or charge within the specified time.

This bill would create, until January 1, 2014, another exception by prohibiting a local agency that imposes any fee or charge on a residential development for the construction of public facilities, as defined, from requiring the payment of those fees or charges for residential units until the date the certificate of occupancy is issued, or the close of escrow in jurisdictions that already have adopted a policy to defer collection until that time, whichever occurs later.

   

Economic Development

 SB 1103 (Cedillo) Economic development subsidies: review by local agencies.   

Existing law provides for various programs for economic development activities by state and local agencies.

This bill would, beginning January 1, 2009, and until January 1, 2015, require each local agency to provide specified information to the public before approving an economic development subsidy, as defined, within its jurisdiction, and to review, hold hearings, and report on those subsidies at specified intervals.

This bill would also require the Legislative Analyst, on or before January 1, 2014, to provide the Legislature a report on these additional requirements.
   
Energy

 AB 1920 (Huffman) Renewable energy resources: net metering.   

(1) The existing Public Utilities Act imposes various duties and responsibilities on the Public Utilities Commission with respect to the purchase of electricity and requires the commission to review and adopt a procurement plan and a renewable energy procurement plan for each electrical corporation pursuant to the California Renewables Portfolio Standard Program. The program requires that a retail seller of electricity, including electrical corporations, community choice aggregators, and electric service providers, but not including local publicly owned electric utilities, purchase a specified minimum percentage of electricity generated by eligible renewable energy resources, as defined, in any given year as a specified percentage of total kilowatthours sold to retail end-use customers each calendar year. Under existing law the governing board of a local publicly owned electric utility is responsible for implementing and enforcing a renewables portfolio standard.

The act defines an "electric service provider" as an entity that offers electrical service to customers within the service territory of an electrical corporation, as defined. Pursuant to the act, an "electric service provider" does not include an electrical corporation or a local publicly owned electric corporation, but does include the unregulated affiliates and subsidiaries of an electrical corporation.

Existing law relative to private energy producers defines an "electric service provider" as an electrical corporation, electrical cooperative, or local publicly owned electric utility, excluding a local publicly owned electric utility that serves more than 750,000 customers and that also conveys water to its customers. Existing law relative to private energy producers requires every electric service provider, upon request, to make available to an eligible customer-generator, as defined, a standard contract or tariff for net energy metering on a first-come-first-served basis until the time that the total rated generating capacity used by eligible customer-generators exceeds a specified amount. Existing law provides that where the electricity generated by the eligible customer-generator exceeds the electricity supplied by the electric service provider during a 12-month period, the eligible customer-generator is a net electricity producer and the electric service provider retains any excess kilowatthours generated and the customer-generator is not owed compensation for those excess kilowatthours unless the electric service provider enters into a purchase agreement with the eligible customer-generator for those excess kilowatthours.

This bill would replace the definition of "electric service provider" in existing law relative to private energy producers with a definition of "electric utility or cooperative." The bill would expand the definition of an "eligible customer-generator" to include customers that generate electricity using an eligible renewable energy resource that meets existing sizing, interconnection, and operating requirements for solar and wind generation. The bill would require the ratemaking authority, as defined, for the electric utility or cooperative to adopt, by July 1, 2009, a net surplus electricity compensation rate to compensate a net surplus customer-generator, as defined, for net surplus electricity, as defined, generated by an eligible customer-generator and delivered to the grid that is in excess of the amount of electricity that is delivered from the grid to the eligible customer-generator. The bill would require the electric utility or cooperative to offer a standard contract or tariff to eligible customer-generators that includes this rate. The bill would provide that upon adoption of the net surplus electricity compensation rate, any renewable energy credit, as defined, for net surplus electricity belongs to the electric utility or cooperative purchasing the electricity and that net surplus electricity counts toward the electric utility or cooperative' s renewables portfolio standard purchasing requirements.

Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because the this bill would require action by the commission to implement its requirements, a violation of these provisions would impose a state-mandated local program by expanding the definition of a crime.

(2) In a decision, the commission adopted the California Solar Initiative to provide incentives to customer-side photovoltaics and solar thermal electric projects under one megawatt. Existing law requires the commission, in implementing the California Solar Initiative, as defined, to authorize the award of monetary incentives for up to the first megawatt of alternating current generated by a solar energy system, as defined, that meets eligibility criteria established by the State Energy Resources Conservation and Development Commission. The eligibility requirements include a requirement that the solar energy system is intended primarily to offset part or all of the consumer's own electricity demand. Existing law requires the governing body of a local publicly owned electric utility that sells electricity at retail, to adopt, implement, and finance a solar initiative program, for the purpose of investing in, and encouraging the increased installation of, residential and commercial solar energy systems, meeting certain requirements. The eligibility requirements include the requirement that solar energy systems receiving monetary incentives are intended primarily to offset part or all of the consumer's own electricity demand.

This bill would provide that investments for solar energy systems that exceed the electricity demand of a consumer shall be permitted, but only the capacity needed to offset part or all of the electricity demand of a consumer is eligible for ratepayer funded monetary incentives pursuant to the solar initiative programs.

(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.


 
SB 1518  (Correa) Water charges, meters, and submeters: multiunit residential structures.   

(1) The Water Measurement Law requires every water purveyor to require, as a condition of new water service on and after January 1, 1992, the installation of a water meter to measure water service. That law also requires urban water suppliers to install water meters on specified service connections, and to charge water users based on the actual volume of deliveries as measured by those water meters in accordance with a certain timetable.

This bill, with a certain exception, would require every water purveyor who provides water service to any person residing in a multiunit residential structure for which a construction permit has been issued on or after January 1, 2012, to require the installation of meters or submeters on each individual rental unit as a condition of new water service to that property. The bill would authorize the owner or operator to charge tenants based on the actual volume of water delivered as measured by the water meter or submeter. The bill would authorize the owner or operator of a multiunit residential structure without water submeters to charge tenants separately for the costs of water service as determined by a prescribed allocation formula, subject to specified requirements.

(2) Existing law requires county sealers to inspect and test measuring devices and permits the board of supervisors of a county to charge an annual device registration fee to recover costs associated with the exercise of those functions. Existing law makes it a crime to violate certain laws relating to the certification and installation of measuring devices.
This bill would make those laws applicable to the meters and submeters installed pursuant to the bill's provisions, and would provide that the property owner is responsible for compliance with those laws. By imposing additional duties on counties with regard to the inspection of meters and submeters, the bill would impose a state-mandated local program. Because, under existing law, a violation of those laws is a crime, the bill would impose a state-mandated local program.

(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.


SB 1220 (Cedillo) Housing: Multifamily Housing Program: veterans.   

Existing law establishes the Multifamily Housing Program under the administration of the Department of Housing and Community Development to provide a standardized set of program rules and features applicable to all housing types based on the department's California Housing Rehabilitation Program.

This bill would authorize a sponsor, as defined, of a project funded by the Multifamily Housing Program, to restrict occupancy of a project to persons with veteran status under specified circumstances.
       
As introduced February 14, allows the Department of Housing and Community Development to fund projects using the Multifamily Housing Program funds for Veterans Only projects.

Sponsor: Author
Staff: Martin Rodonovich

Farmworker Housing 

SB 1247 (Lowenthal) Farmworker housing assistance.
   
Existing law establishes a low-income housing tax credit program, administered by the California Tax Credit Allocation Committee, which provides procedures and requirements for the allocation of state tax credit amounts among low-income housing projects based on federal law. Existing law also establishes a farmworker housing assistance program and prescribes requirements for claiming tax credits under the program, including a requirement that expenditures upon which the amount of the credit is based shall be eligible costs, as defined, and a limitation on the amount of development fees that may be included as eligible costs.

This bill would repeal the farmworker housing assistance program and, instead, would require that an amount specified within those tax credit provisions be set aside for projects housing farmworker households, as provided.

This bill would also repeal specified existing tax credits for farmworker housing authorized under the Personal Income Tax Law and the Corporation Tax Law.


Financing (bonds, tax credits, the budget)
 
 AB 2891 (Levine) Developmental services.   

Existing law, the Lanterman Developmental Disabilities Services Act, establishes the State Department of Developmental Services and sets forth its duties and responsibilities, including, but not limited to, administration and oversight of the state developmental centers and programs relating to persons with developmental disabilities. Existing law requires the department to allocate funds to private nonprofit regional centers for the provision of community services and support for persons with developmental disabilities and their families.

This bill would establish the Lanterman Accessible and Affordable Housing Program to provide resources for grants to purchase residential property for community housing for persons with developmental disabilities. The bill would establish the Lanterman Accessible and Affordable Housing Fund and would, upon appropriation by the Legislature, authorize use of moneys in the fund by the department for these purposes.

The bill would establish the Lanterman Accessible and Affordable Housing Advisory Committee and would set forth its duties.

Homeless (programs and policies)
 
SB 1470 (Lowenthal) Homeless Youth Prevention Act of 2008.   

Existing law establishes an interagency system