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SB-899 Planning and zoning: housing development: higher education institutions and religious institutions.(2019-2020)

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Date Published: 07/09/2020 09:00 PM
SB899:v94#DOCUMENT

Amended  IN  Assembly  July 27, 2020
Amended  IN  Senate  June 18, 2020
Amended  IN  Senate  May 27, 2020
Amended  IN  Senate  May 18, 2020
Amended  IN  Senate  March 05, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 899


Introduced by Senator Wiener
(Coauthor: Senator Caballero)

January 30, 2020


An act to add Section 65913.5 to the Government Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


SB 899, as amended, Wiener. Planning and zoning: housing development: higher education institutions and religious institutions.
The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a housing element. That law allows a development proponent to submit an application for a development that is subject to a specified streamlined, ministerial approval process not subject to a conditional use permit if the development satisfies certain objective planning standards.
This bill would require that a housing development project be a use by right upon the request of an independent institution of higher education or religious institution that partners with a qualified developer on any land owned in fee simple by the applicant on or before January 1, 2020, if the development satisfies specified criteria. The bill would define various terms for these purposes. Among other things, the bill would require that 100% of the units, exclusive of manager units, in a housing development project eligible for approval as a use by right under these provisions be affordable to lower income households, except that 20% of the units may be for moderate-income households. The bill would authorize the development to include ancillary uses on the ground floor of the development, as specified. The bill would specify that a housing development project that is eligible for approval as a use by right under the bill is also eligible for a density bonus or other incentives or concessions, except as specified. The bill would require a development subject to these provisions to provide off-street parking of up to one space per unit, unless a local ordinance provides for a lower standard of parking, in which case the ordinance applies. The bill would prohibit a local government from imposing any parking requirement on a development subject to these provisions if the development is located within one-half mile walking distance of a high-quality transit corridor or major transit stop, as those terms are defined, and within one block of a car share vehicle.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
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 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 does not apply to the ministerial approval of projects.
This bill, by requiring approval of certain development projects as a use by right, would expand the exemption for ministerial approval of projects under CEQA.
By adding to the duties of local planning officials with respect to approving certain development projects, this bill would impose a state-mandated local program.
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: YES  

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


SECTION 1.

 Section 65913.5 is added to the Government Code, to read:

65913.5.
 (a) For purposes of this section:
(1) “Applicant” means an independent institution of higher education or religious institution that partners with a qualified developer to construct a housing development project and requests approval of that project as a use by right pursuant to this section.
(2) “Independent institution of higher education” has the same meaning as defined in Section 66010 of the Education Code.
(3) “Local government” means a city, county, or city and county, whether general law or chartered.
(4) “Qualified developer” means a local public entity, as defined in Section 50079 of the Health and Safety Code, or a developer that meets both of the following:
(A) The developer is a nonprofit corporation, a limited partnership in which the managing general partner is a nonprofit corporation, or a limited liability company in which the managing member is a nonprofit corporation.
(B) The developer, at the time of submission of an application for development pursuant to this section, owns or manages housing units located on property that is exempt from taxation pursuant to the welfare exemption established in subdivision (a) of Section 214 of the Revenue and Taxation Code.
(5) “Religious institution” means an institution owned, controlled, and operated and maintained by a bona fide church, religious denomination, or religious organization composed of multidenominational members of the same well-recognized religion, lawfully operating as a nonprofit religious corporation pursuant to Part 4 (commencing with Section 9110) of Division 2 of Title 1 of the Corporations Code.
(6) (A) “Use by right” means that the local government’s review of the development project under this section may 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)).
(B) A local ordinance may provide that “use by right” does not exempt the development project 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.
(b) Notwithstanding any inconsistent provision of a local government’s general plan, specific plan, zoning ordinance, or regulation, upon the request of an applicant, a housing development project shall be a use by right on any land owned in fee simple by the applicant on or before January 1, 2020, if the development satisfies all of the following criteria: criteria are satisfied:
(1) The development is located on a parcel that satisfies the requirements specified in paragraph (2) of subdivision (a) of Section 65913.4.
(2) The development is located on a parcel that satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4.
(3) The development is not within a historic district as defined in subdivision (h) of Section 5020.1 of the Public Resources Code that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance.
(4) The development is located in a residential, mixed-use, or commercial zone and meets the following density requirements as applicable:
(A) (i) If the development project is located in a residential or mixed-use zone, the development project shall be allowed a density of the applicable density deemed appropriate to accommodate housing for lower income households identified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2.
(ii) If the local government allows for greater residential density on that parcel, or greater residential density or building heights on an adjacent parcel, than permitted in clause (i), the greater density or building height shall apply.
(iii) A housing development project that is located in a residential or mixed-use zone shall be eligible for a density bonus or other incentives or concession pursuant to Section 65915.
(B) (i) If the development project is located in a commercial zone, the development project shall be allowed a density of 40 units per acre and a height of one story above the maximum height applicable to the parcel.
(ii) If the local government allows for greater residential density or building heights on that parcel, or an adjacent parcel, than permitted in clause (i), the greater density or building height shall apply. A development project shall not use an incentive, waiver, or concession to increase the height of the development to greater than the height authorized under this subparagraph.
(iii) Except as provided in clause (ii), a housing development project that is located in a commercial zone shall be eligible for a density bonus or other incentives or concession pursuant to Section 65915.
(C) For purposes of this paragraph, a development project shall be deemed to be located in a residential, mixed-use, or commercial zone if it meets both of the following conditions:
(i) The development project is proposed for a parcel that is zoned for educational or religious use to conform to the existing use.
(ii) The development project is proposed for a parcel that is adjacent to a parcel located in a residential, mixed-use, or commercial zone.
(5) The development project is located on a site that is one-quarter acre in size or greater.
(6) One hundred percent of the development project’s total units, exclusive of a manager’s unit or units, are for lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that up to 20 percent of the total units in the development may be for moderate-income households, as defined in Section 50053 of the Health and Safety Code. The rent or sales price for the unit shall be at least 20 percent below the market rate for a unit of similar size and bedroom count in the same neighborhood in the city, county, or city and county in which the housing development is located. The applicant shall provide the city, county, or city and county with evidence to establish that the units meet the requirements of this subparagraph. All units, exclusive of any manager unit or units, shall be restricted as provided in this subparagraph for at least the following periods of time:
(A) Fifty-five years for units that are rented. However, the local government may require that the rental units in the housing development project be restricted to lower income households for a longer period of time if that restriction is consistent with all applicable regulatory requirements for state assistance.
(B) Forty-five years for units that are owner occupied. However, the local government may require that owner-occupied units in the housing development project be restricted to lower income households for a longer period of time if that restriction is consistent with all applicable regulatory requirements for state assistance.
(C) A religious institution or independent institution of higher education, in its discretion, may restrict 100 percent of the residential units, exclusive of any manager unit or units, in the housing development project to lower income households, as that term is defined in Section 50079.5 of the Health and Safety Code, with an affordable housing cost or affordable rent, as defined in Sections 50052.5 and 50053, respectively, of the Health and Safety Code, for at least the time periods specified in subparagraphs (A) and (B).
(7) The development project complies with all objective development standards of the city or county that are not in conflict with this section.
(8) If the housing development project requires the demolition of existing residential dwelling units, the applicant shall comply with subdivision (d) of Section 66300, as that section read as of January 1, 2020.
(9) The applicant certifies to the local government that either of the following is true for the housing development project, as applicable:
(A) The entirety of the development project is a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(B) If the development project is not in its entirety a public work, that all construction workers employed in the execution of the development project will be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate. If the development project is subject to this subparagraph, then for those portions of the development project that are not a public work all of the following shall apply:
(i) The applicant shall ensure that the prevailing wage requirement is included in all contracts for the performance of the work.
(ii) All contractors and subcontractors shall pay to all construction workers employed in the execution of the work at least the general prevailing rate of per diem wages, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
(iii) Except as provided in clause (v), all contractors and subcontractors shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in therein.
(iv) Except as provided in clause (v), the obligation of the contractors and subcontractors to pay prevailing wages may be enforced by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code, within 18 months after the completion of the development, by an underpaid worker through an administrative complaint or civil action, or by a joint labor-management committee though a civil action under Section 1771.2 of the Labor Code. If a civil wage and penalty assessment is issued, the contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Section 1742.1 of the Labor Code.
(v) Clauses (iii) and (iv) shall not apply if all contractors and subcontractors performing work on the development project are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development project and provides for enforcement of that obligation through an arbitration procedure. For purposes of this clause, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(vi) Notwithstanding subdivision (c) of Section 1773.1 of the Labor Code, the requirement that employer payments not reduce the obligation to pay the hourly straight time or overtime wages found to be prevailing shall not apply if otherwise provided in a bona fide collective bargaining agreement covering the worker. The requirement to pay at least the general prevailing rate of per diem wages does not preclude use of an alternative workweek schedule adopted pursuant to Section 511 or 514 of the Labor Code.
(c) Notwithstanding any other provision of this section, a development project that is eligible for approval as a use by right pursuant to this section may include the following ancillary uses, provided that those uses are limited to the ground floor of the development:
(1) In a single-family residential zone, ancillary uses shall be limited to uses that provide direct services to the residents of the development and have a community benefit, including childcare centers and community centers.
(2) In a multifamily residential, commercial, or mixed-use zone, the development may include commercial uses that are permitted without a conditional use permit or planned unit development permit.
(d) (1) Except as provided in paragraph (2), the proposed development shall provide off-street parking of up to one space per unit, unless a local ordinance provides for a lower standard of parking, in which case the ordinance shall apply.
(2) A local government shall not impose a parking requirement if either of the following is true:
(A) The parcel is located within one-half mile walking distance of public transit, either a high-quality transit corridor as defined in subdivision (b) of Section 21155 of the Public Resources Code or a major transit stop as defined in Section 21064.3 of the Public Resources Code.
(B) There is a car share vehicle located within one block of the parcel.
(e) The Legislature finds and declares that ensuring residential development at greater density on land owned by independent institutions of higher education and religious institutions is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.

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.