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AB-1086 Housing: regional housing needs.(2017-2018)

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Date Published: 04/17/2017 09:00 PM
AB1086:v97#DOCUMENT

Amended  IN  Assembly  April 17, 2017
Amended  IN  Assembly  March 28, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1086


Introduced by Assembly Member Daly

February 16, 2017


An act to add and repeal Section 65589.9 amend Section 65584.01 of the Government Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


AB 1086, as amended, Daly. Housing: regional housing needs.

The

(1) The Planning and Zoning Law requires each city, county, and city and county to prepare and adopt a general plan that contains certain mandatory elements, including, but not limited to, a housing element that analyzes existing and projected housing needs. Existing law includes various legislative findings and declarations related to the statewide importance of housing availability and the responsibility of local government to address regional housing needs. That law also requires the housing element, in turn, to include, among other things, an assessment of housing needs and an inventory of resources and constraints relevant to the meeting of those needs. That law further requires the Department of Housing and Community Development, for the 4th and subsequent revisions of the housing element, to determine the existing and projected need for housing for each region, based upon population projections produced by the Department of Finance and regional population forecasts used in preparing regional transportation plans, in consultation with each council of governments. Existing law requires the population forecast developed by the council of governments to be the basis upon which the department determines the existing and projected need for that region if the total regional population forecast for the project year, developed by the council of governments and used for the preparation of the regional transportation plan, is within 3% of the total regional population forecast prepared by the Department of Finance.

This bill would require the Department of Housing and Community Development, on or before May 1, 2018, to report to the Legislature on whether the guidance and procedures for determining the methodology for regional housing needs contained in this article are sufficient to capture total housing needs, particularly in coastal regions.

This bill would instead require the population forecast developed by the council of governments to be the basis upon which the department determines the existing and projected need for that region if the total regional population forecast for the project year, developed by the council of governments and used for the preparation of the regional transportation plan, is within 1.5% of the total regional population forecast prepared by the Department of Finance.
(2) Existing law requires the department to meet and consult with the council of governments regarding the existing and projected housing need for a region at least 26 months prior to the scheduled revision. Existing law requires the council of governments to provide data assumptions from the council’s projections, including, if available, among other things, household size data and trends in household size.
This bill would require trends in household size to include overcrowding data, as specified. By increasing the duties of local officials, this 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 no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NOYES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 65584.01 of the Government Code is amended to read:

65584.01.
 (a) For the fourth and subsequent revision of the housing element pursuant to Section 65588, the department, in consultation with each council of governments, where applicable, shall determine the existing and projected need for housing for each region in the following manner:
(b) The department’s determination shall be based upon population projections produced by the Department of Finance and regional population forecasts used in preparing regional transportation plans, in consultation with each council of governments. If the total regional population forecast for the projection year, developed by the council of governments and used for the preparation of the regional transportation plan, is within a range of 3 1.5 percent of the total regional population forecast for the projection year by the Department of Finance, then the population forecast developed by the council of governments shall be the basis from which the department determines the existing and projected need for housing in the region. If the difference between the total population projected by the council of governments and the total population projected for the region by the Department of Finance is greater than 3 1.5 percent, then the department and the council of governments shall meet to discuss variances in methodology used for population projections and seek agreement on a population projection for the region to be used as a basis for determining the existing and projected housing need for the region. If no agreement is reached, then the population projection for the region shall be the population projection for the region prepared by the Department of Finance as may be modified by the department as a result of discussions with the council of governments.
(c) (1) At least 26 months prior to the scheduled revision pursuant to Section 65588 and prior to developing the existing and projected housing need for a region, the department shall meet and consult with the council of governments regarding the assumptions and methodology to be used by the department to determine the region’s housing needs. The council of governments shall provide data assumptions from the council’s projections, including, if available, the following data for the region:
(A) Anticipated household growth associated with projected population increases.
(B) Household size data and trends in household size.
(C) Trends in household size shall include overcrowding data and trends used in the department’s definition of overcrowding in “California’s Housing Future: Challenges and Opportunities,” 2017. This assessment shall include the percentage of renter households that are overcrowded.

(C)

(D) The rate of household formation, or headship rates, based on age, gender, ethnicity, or other established demographic measures.

(D)

(E) The vacancy rates in existing housing stock, and the vacancy rates for healthy housing market functioning and regional mobility, as well as housing replacement needs.

(E)

(F) Other characteristics of the composition of the projected population.

(F)

(G) The relationship between jobs and housing, including any imbalance between jobs and housing.
(2) The department may accept or reject the information provided by the council of governments or modify its own assumptions or methodology based on this information. After consultation with the council of governments, the department shall make determinations in writing on the assumptions for each of the factors listed in subparagraphs (A) to (F), (G), inclusive, of paragraph (1) and the methodology it shall use and shall provide these determinations to the council of governments.
(d) (1) After consultation with the council of governments, the department shall make a determination of the region’s existing and projected housing need based upon the assumptions and methodology determined pursuant to subdivision (c). The region’s existing and projected housing need shall reflect the achievement of a feasible balance between jobs and housing within the region using the regional employment projections in the applicable regional transportation plan. Within 30 days following notice of the determination from the department, the council of governments may file an objection to the department’s determination of the region’s existing and projected housing need with the department.
(2) The objection shall be based on and substantiate either of the following:
(A) The department failed to base its determination on the population projection for the region established pursuant to subdivision (b), and shall identify the population projection which the council of governments believes should instead be used for the determination and explain the basis for its rationale.
(B) The regional housing need determined by the department is not a reasonable application of the methodology and assumptions determined pursuant to subdivision (c). The objection shall include a proposed alternative determination of its regional housing need based upon the determinations made in subdivision (c), including analysis of why the proposed alternative would be a more reasonable application of the methodology and assumptions determined pursuant to subdivision (c).
(3) If a council of governments files an objection pursuant to this subdivision and includes with the objection a proposed alternative determination of its regional housing need, it shall also include documentation of its basis for the alternative determination. Within 45 days of receiving an objection filed pursuant to this section, the department shall consider the objection and make a final written determination of the region’s existing and projected housing need that includes an explanation of the information upon which the determination was made.

SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
SECTION 1.Section 65589.9 is added to the Government Code, to read:
65589.9.

(a)The Legislature finds and declares both of the following:

(1)The Legislative Analyst reported in 2016 that while rents remain extremely high in coastal housing markets, most coastal counties are meeting or nearly meeting their production goals.

(2)The finding of the Legislative Analyst suggests that coastal production goals do not reflect the full extent of the demand for housing in these areas.

(b)On or before May 1, 2018, the department shall report to the Legislature on whether the guidance and procedures for determining the methodology for regional housing needs contained in this article are sufficient to capture total housing needs, particularly in coastal regions. The report shall be submitted in compliance with Section 9795.

(c)This section shall remain in effect only until January 1, 2019, and as of that date is repealed.