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SB-1299 Housing development: incentives: rezoning of idle retail sites.(2019-2020)

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Date Published: 04/01/2020 09:00 PM
SB1299:v98#DOCUMENT

Amended  IN  Senate  April 01, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1299


Introduced by Senator Portantino

February 21, 2020


An act to amend Section 50550 add Chapter 2.9 (commencing with Section 50495) to Part 2 of Division 31 of the Health and Safety Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


SB 1299, as amended, Portantino. Workforce Housing Reward Program. Housing development: incentives: rezoning of idle retail sites.
Existing law establishes establishes, among other housing programs, the Workforce Housing Reward Program, which requires the Department of Housing and Community Development to make local assistance grants to cities, counties, and cities and counties that provide land use approval to housing developments that are affordable to very low and low-income households.
This bill, upon appropriation by the Legislature, would require the department to administer a program to provide incentives in the form of grants allocated as provided to local governments that rezone idle sites used for a big box retailer or a commercial shopping center to instead allow the development of workforce housing. The bill would define various terms for these purposes. In order to be eligible for a grant, the bill would require a local government, among other things, to apply to the department for an allocation of grant funds and provide documentation that it has met specified requirements. The bill would make the allocation of these grants subject to appropriation by the Legislature. The bill would require the department to issue a Notice of Funding Availability for each calendar year in which funds are made available for these purposes. The bill would require that the amount of grant awarded to each eligible local government be equal to the average amount of annual sales and use tax revenue generated by each idle site identified in the local government’s application over the 7 years immediately preceding the date of the local government’s application, subject to certain modifications, and that the local government receive this amount for each of the 7 years following the date of the local government’s application.

This bill would make a nonsubstantive change those provisions.

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

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


SECTION 1.

 Chapter 2.9 (commencing with Section 50495) is added to Part 2 of Division 31 of the Health and Safety Code, to read:
CHAPTER  2.9. Retail Site Rezoning Incentives

50495.
 For purposes of this chapter:
(a) “Big box retailer” means a store of greater than 75,000 square feet of gross buildable area that generates or previously generated sales or use tax pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code).
(b) “Commercial shopping center” means a group of two or more stores that maintain a common parking lot for patrons of those stores.
(c) “Idle” means that at least 80 percent of the leased or rentable square footage of the big box retailer or commercial shopping center site is not occupied for at least a 12-month calendar period.
(d) “Local government” means a city, county, or city and county.
(e) “NOFA” means Notice of Funding Availability.
(f) “Sales and use tax revenue” means the cumulative amount of revenue generated by taxes imposed by a local government in accordance with both of the following laws:
(1) The Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code).
(2) The Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code).
(g) (1) “Use by right” means that the local government’s review of a workforce housing does not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Any subdivision of the sites shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act (Division 2 (commencing with Section 66410) of Title 7 of the Government Code).
(2) A local ordinance may provide that “use by right” does not exempt the use from design review. However, that design review shall not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(h) “Workforce housing” means an owner-occupied or rental housing development with an affordable housing cost or affordable rent to households with a household income greater than or equal to 80 percent of the area median income, but no more than 120 percent of the area median income, for the area in which the big box retailer or commercial shopping center site is located, as determined pursuant to Section 50093.

50495.2.
 Upon appropriation by the Legislature, the department shall administer a program to provide incentives in the form of grants allocated in accordance with this chapter to local governments that rezone idle sites used for a big box retailer or a commercial shopping center to instead allow the development of workforce housing.

50495.4.
 In order to be eligible for a grant under this chapter, a local government shall do all of the following:
(a) Rezone one or more idle sites used for a big box retailer or commercial shopping center to allow workforce housing as a use by right.
(b) Approve and issue a certificate of occupancy for a workforce housing development on each site rezoned pursuant to subdivision (a) for which the local government seeks an incentive pursuant to this chapter.
(c) Apply to the department for an allocation of grant funds and provide documentation that it has complied with the requirements of this section.

50495.6.
 (a) Upon appropriation by the Legislature for purposes of this chapter, the department shall allocate a grant to each local government that meets the criteria specified in Section 50495.4 in an amount determined pursuant to subdivision (b). For each calendar year in which funds are made available for purposes of this chapter, the department shall issue a NOFA for the distribution of funds to a local government during the 12-month period subsequent to the NOFA. The department shall accept applications from applicants at the end of the 12-month period.
(b) The amount of grant provided to each eligible local government, in each year for which the local government may receive an allocation pursuant to subdivision (c), shall be as follows:
(1) Subject to paragraphs (2) and (3), the annual amount of grant shall be equal to the average amount of annual sales and use tax revenue generated by each idle site identified in the local government’s application that meets the criteria specified in subdivisions (a) and (b) of Section 50495.4 over the seven years immediately preceding the date of the local government’s application.
(2) For any idle big box retailer or commercial shopping center site rezoned by a local government in accordance with subdivision (a) of Section 50495.4 to allow mixed uses, the amount of grant pursuant to paragraph (1) shall be reduced in proportion to the percentage of the square footage of the development that is used for a use other than workforce housing.
(3) If for any NOFA the amount of funds made available for purposes of this chapter is insufficient to provide each eligible local government with the full amount specified in paragraphs (1) and (2), based on the number of applications received, the department shall reduce the amount of grant funds awarded to each eligible local government proportionally.
(c) The department shall allocate the amount determined pursuant to subdivision (b) to each eligible local government annually for each of the seven years following the date of the local government’s application.

50495.8.
 The department may adopt guidelines for purposes of this chapter in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

SECTION 1.Section 50550 of the Health and Safety Code is amended to read:
50550.

There is hereby established the Workforce Housing Reward Program, to be administered by the department for the purpose of providing local assistance to cities, counties, and cities and counties that provide land use approval to housing developments that are affordable to very low and low-income households.