Today's Law As Amended

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AB-1350 Land use: housing element: regional housing need: noncompliant cities and counties: penalty.(2017-2018)



SECTION 1.

 Section 65584.08 is added to the Government Code, to read:

65584.08.
 (a) (1) A noncompliant city or county shall pay a penalty to the department. The penalty shall be an amount equal to either of the following amounts, whichever is less:
(A) One-third of the annual property tax increment allocated to the city or county for the 2018–19 fiscal year to the 2020–21 fiscal year, inclusive.
(B) One-third of the annual sales price for a single-family home in the noncompliant city or county multiplied by the number of low-income and very low income units that would have met at least one-third of the noncompliant city’s or county’s share of the regional housing need during its current housing element planning period.
(2) (A) The penalty imposed pursuant to paragraph (1) shall be deposited in the Regional Housing Needs Assessment Compliance Fund, which is hereby created in the General Fund.
(B) Notwithstanding Section 13340, all money deposited in the Regional Housing Needs Assessment Compliance Fund is hereby continuously appropriated to the department without regard to fiscal years for distribution of grants in accordance with paragraph (3) to compliant cities and counties.
(3) (A) The department shall do all of the following:
(i) Be responsible for overseeing the grant program.
(ii) Award grants to compliant cities and counties with priority given to projects within compliant cities and counties that are closest in proximity to cities and counties that have paid the penalty required pursuant to paragraph (1).
(iii) Publish deadlines and written procedures for compliant cities and counties to apply for the grants.
(B) Grants awarded pursuant to this paragraph shall be used by compliant cities and counties for one or more of the following purposes:
(i) To construct low-income and very low income housing.
(ii) To convert market-rate housing to low-income and very low income housing.
(iii) Very low, low-, and moderate-income first-time home buyer programs.
(iv) Workforce housing.
(v) To subsidize the creation of low-income and very low income housing units within other market rate housing projects.
(4) Upon payment of the penalty required pursuant to paragraph (1), a noncompliant city or county shall be deemed to be a compliant city or county.
(5) A noncompliant city or county that has not received an allocation of annual property tax increment for the 2018–19 fiscal year to the 2020–21 fiscal year, inclusive, shall not be required to pay the penalty required pursuant to paragraph (1).
(b) (1) On or after January 1, 2021, a noncompliant city or county shall not do either of the following for low-income and very low income housing projects:
(A) Collect established fees, or impose new fees, as a condition of approval of a development project that is greater than 20 percent of the fee imposed as a condition of approval for market rate projects.
(B) Require the payment of building permit fees.
(2) This subdivision shall cease to apply to a noncompliant city or county when either of the following occur:
(A) A noncompliant city or county pays the penalty required pursuant to subdivision (a).
(B) A noncompliant city or county described in paragraph (5) of subdivision (a) becomes a compliant city or county.
(c) For purposes of this section, all of the following definitions shall apply:
(1) “Annual tax increment” has the same meaning as that term is described in Section 96.5 of the Revenue and Taxation Code.
(2) “Compliant city or county” means a city or county that has met at least one-third of its share of the regional housing need for low-income and very low income housing during its current housing element planning period on or before January 1, 2021.
(3) “Department” means the Department of Housing and Community Development.
(4) “Noncompliant city or county” means a city or county that has not met at least one-third of its share of the regional housing need for low-income and very low income housing during its current housing element planning period on or before January 1, 2021.