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AB-1056 Infrastructure financing: industrialized housing.(2021-2022)

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Date Published: 03/18/2021 09:00 PM
AB1056:v98#DOCUMENT

Amended  IN  Assembly  March 18, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1056

Introduced by Assembly Member Grayson

February 18, 2021

An act to amend Section 65940.1 of the Government Code, relating to local government. add Article 11 (commencing with 63049.80) to Chapter 2 of Division 1 of Title 6.7 of the Government Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


AB 1056, as amended, Grayson. Local agencies: fees and zoning standards. Infrastructure financing: industrialized housing.
Existing law establishes the Department of Housing and Community Development (department) and sets forth its powers and duties including functioning as the principal state department responsible for coordinating federal-state relationships in housing and community development, except for housing finance. Those duties include, among other things, administration of the Emergency Housing and Assistance Program.
Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the California Infrastructure and Economic Development Bank (bank) and sets forth the powers and duties of the bank including authority to make loans, issue bonds, and provide financial assistance relating to economic development or public development facilities.
This bill would require the department and the bank to develop a proposed program, as specified, to invest in the building of offsite industrialized housing to support the policy goal of increasing the state’s capacity to quickly respond to additional housing needs precipitated by homelessness, wildfires, COVID-19, or other emergency situations. The bill would require the department and the bank to report its recommendations to the Legislature by January 1, 2023, including whether and how industrialized housing would alleviate the state’s housing, homelessness, and disaster response needs. The bill would preclude implementation of the recommended programs unless approved by a subsequent act of the Legislature.

Existing law requires a city, county, or special district that has an internet website to make specified information available on its internet website, as applicable, including a current schedule of fees, exactions, affordability requirements it has imposed that are applicable to a proposed housing development project, and an archive of impact fee nexus studies, cost of service studies, or equivalent, conducted by that city, county, or special district on or after January 1, 2018. Existing law requires a city, county, or special district to update this information within 30 days of any changes.

This bill would make a nonsubstantive change to these provisions.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Article 11 (commencing with Section 63049.80) is added to Chapter 2 of Division 1 of Title 6.7 of the Government Code, to read:
Article  11. Industrialized Housing Investments

63049.80.
 The definitions contained in this section are in addition to the definitions contained in Section 63010 and together with the definitions contained in that section shall govern the construction of this article, unless the context requires otherwise:
(a) “Bank” means the Infrastructure and Economic Development Bank.
(b) “Department” means the Department of Housing and Community Development.
(c) “Industrialized housing” means a residential structure that is designed for occupancy by one or more families, is constructed in one or more modules, or constructed using one or more modular components, built at a location other that the permanent site and is designed to be used as a permanent residential structure when the module or modular component is transported to the permanent site and erected or installed on a permanent foundation system.

63049.81.
 (a) It is the intent of the Legislature that a program be developed to support the state’s policy goal of increasing the state’s capacity to quickly respond to additional housing needs precipitated by homelessness, wildfires, COVID-19, or other emergency situations, and that the program, once established and approved by the Legislature, be administered jointly by the bank and the department.
(b) The bank shall, in coordination with the department, develop a program to invest in the building of offsite industrialized housing in order to meet the policy goal set forth in subdivision (a).
(c) The program shall include all of the following:
(1) Criteria, procedures, and accountability measures as may be necessary to implement the program.
(2) Procedures that ensure that priority is given to underserved populations, including both urban and rural areas and low-income communities.
(3) Protocols that encourage green building standards to the extent feasible.
(d) By January 1, 2023, the bank shall prepare and submit to the Legislature a report on the proposed program in compliance with Section 9795, which shall do all of the following:
(1) Identify the types of investment programs considered by the bank and a cost and benefit analysis of each program. The programs shall include an analysis of an equity investment program, a revolving loan program, a grant program, and any other program that the bank and department deem feasible to meet the goal stated in subdivision (a).
(2) Include the bank’s and the department’s joint recommendations for the types of programs that would best satisfy the goal stated in subdivision (a).
(3) Specify whether and how the proposed investment in industrialized housing would alleviate the state’s housing, homelessness, and disaster response needs.
(4) Identify the total number of industrialized housing units that could be made available annually, and at what cost, to persons experiencing homelessness statewide and in geographically diverse regions across the state.
(5) Identify the total number of industrialized housing units that could be made available annually, and at what cost, to persons experiencing displacement due to disaster.
(e) The recommended programs specified in this chapter shall be implemented only upon approval by a subsequent act of the Legislature.

63049.82.
 Notwithstanding any other provision of this division, this article does not apply to any other activities, powers, and duties of the bank.

SECTION 1.Section 65940.1 of the Government Code is amended to read:
65940.1.

(a)(1)A city, county, or special district that has an internet website shall make all of the following available on its internet website, as applicable:

(A)(i)A current schedule of fees, exactions, and affordability requirements imposed by that city, county, or special district, including any dependent special districts, as defined in Section 56032.5, of the city or county applicable to a proposed housing development project.

(ii)The city, county, or special district shall present the information described in clause (i) in a manner that clearly identifies the fees, exactions, and affordability requirements that apply to each parcel and the fees that apply to each new water and sewer utility connection.

(B)All zoning ordinances and development standards adopted by the city or county presenting the information, which shall specify the zoning, design, and development standards that apply to each parcel.

(C)The list required to be compiled pursuant to Section 65940 by the city or county presenting the information.

(D)The current and five previous annual fee reports, or the current and five previous annual financial reports, that were required pursuant to subdivision (b) of Section 66006 and subdivision (d) of Section 66013.

(E)An archive of impact fee nexus studies, cost of service studies, or equivalent, conducted by that city, county, or special district on or after January 1, 2018. For purposes of this subparagraph, “cost of service study” means the data provided to the public pursuant to subdivision (a) of Section 66016.

(2)A city, county, or special district shall update the information made available under this subdivision within 30 days of any changes.

(b)For purposes of this section:

(1)“Affordability requirement” means a requirement imposed as a condition of a development of residential units, that the development include a certain percentage of the units affordable for rent or sale to households with incomes that do not exceed the limits for moderate-income, lower income, very low income, or extremely low income households specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code, or an alternative means of compliance with that requirement including, but not limited to, in-lieu fees, land dedication, off-site construction, or acquisition and rehabilitation of existing units.

(2)(A)“Exaction” means any of the following:

(i)A construction excise tax.

(ii)A requirement that the housing development project provide public art or an in-lieu payment.

(iii)A special tax levied on new housing units pursuant to the Mello-Roos Community Facilities Act (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5).

(iv)Dedications of parkland or in-lieu fees imposed pursuant to Section 66477.

(B)“Exaction” does not include fees or charges pursuant to Section 66013 that are not imposed (i) in connection with issuing or approving a permit for development or (ii) as a condition of approval of a proposed development, as held in Capistrano Beach Water Dist. v. Taj Development Corp. (1999) 72 Cal.App.4th 524.

(3)“Fee” means a fee or charge described in the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020)).

(4)“Housing development project” means a use consisting of any of the following:

(A)Residential units only.

(B)Mixed-use developments consisting of residential and nonresidential uses with at least two-thirds of the square footage designated for residential use.

(C)Transitional housing or supportive housing.

(c)This section shall not be construed to alter the existing authority of a city, county, or special district to adopt or impose an exaction or fee.