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Building California’s Future

California’s 2017 Housing Package Implementation. Building California’s Future. Linda Wheaton Ass’t. Director, Intergovernmental Affairs State Department of Housing and Community Development Update on the State of Housing Santa Cruz, March 28, 2018.

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Building California’s Future

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  1. California’s 2017 Housing Package Implementation Building California’s Future Linda Wheaton Ass’t. Director, Intergovernmental Affairs State Department of Housing and Community Development Update on the State of Housing Santa Cruz, March 28, 2018

  2. State & Local Roles In Housing • The California Legislature & courts have repeatedly asserted housing as an issue of statewide concern • State interest in an adequate supply of housing: * critical to state economy * critical to well being of residents * critical to protecting environment • Most fundamental decisions about housing supply & affordability maintained at local level, but with State and regional involvement

  3. Major Housing Principles of State Law since the 1970s • All communities are responsible for planning to accommodate both resident population and growth in new households that are expected to reside within the area • Adequate provision for housing needs for households of all incomes, a.k.a. “fair share planning” including Very Low, Low, Moderate, and Above Moderate income households, adjusting for overconcentration of lower income households

  4. Housing Planning Plays Important Roles • Accommodating shelter needs of diverse and growing population • Accommodating adequate and balanced housing supply for economic and employment growth • Providing appropriately zoned residential land to accommodate timely response of the housing industry to market conditions • Facilitating regulatory certainty for transparent and efficient residential permit processing • Planning for provision of housing assistance and regulatory incentives

  5. Key State Housing & Planning Laws • Housing Element Law • State Density Bonus Law • Second Unit Law/Accessory Dwelling Units • Anti-NIMBY (Housing Accountability Act) • No Net Residential Capacity Loss • Limited Conditional Use for Multifamily (MF) in MF Zones • Least Cost Zoning • Article 34 re: voter authorization & public housing • Fair Housing laws with land use provisions

  6. Growing Role of ADUs 2016 Legislation SB 1069 (Wieckowski) – addresses parking, fee and  fire sprinkler & ministerial permitting issues; prohibits precluding ADUs AB 2299 (Bloom) – addresses parking, allowable size, and setback requirements AB 2406 (Thurmond) – authorized junior accessory dwelling units (JADUs)

  7. State Housing Element Law’s Regional Housing Needs Allocations (RHNA) • Increasing housing supply & mix of housing types, tenure & affordability • Promoting infill development & socioeconomic equity, protection of environmental & agricultural resources, & encouraging efficient development patterns • Promoting improved intraregional jobs-housing relationship • Balancing disproportionate household income distributions

  8. Housing Element Update Process Engage with the public to consider Evaluate Effectiveness of Past Programs Develop Programs w/ Quantified Objectives (“Action Plan”) • Upgrade housing stock • Special needs groups (seniors, disabled, homeless) • Address displacement and loss • of affordable housing • Ensure fair housing opportunity • Reduce parking • Reduce impact fees • Streamline application review process • Rezone land to accommodate RHNA • Provide financial/regulatory incentives for housing development • Zone for multifamily, farmworker, ADU, etc

  9. 180,000 new homes needed annually Annual New Housing Permits 1955-2016 • 1955-1989 • Average 205,000 • 2007-2016 • Average 80,000 Source: Construction Industry Research Board/California Homebuilding Foundation Reports 2005, 2013, 2015; Graphic by HCD

  10. Rent vs. Renter Income 2000 2005 2010 2015 Source: California Housing Partnership analysis of 2000 Decennial Census and 2005-2014 American Community Survey 1 year data. 2001-2004 and 2015-2016 are an estimated trend. Median rent and renter income are inflation adjusted to 2014 dollars. Graphic recreated by HCD.

  11. The 2000 publication of the Statewide Housing Plan update “Raising the Roof” alerted: “These problems cannot be addressed without increasing housing production California needs roughly 100,000 housing units per year more than recent production levels”

  12. California Legislative Analyst Office (LAO) Assessed State Housing Issues Source: LAO reports Mar. 2015 – Dec. 2016 http://www.lao.ca.gov/LAOEconTax/Housing

  13. Retrieved 3.24.18 from: https://calmatters.org/articles/digging-data-attainable-california-dream-today,/

  14. A Study of State Smart Growth Policies Suggested . . . • . . . if smart growth programs are to have a positive impact on housing affordability or avert a negative impact from constraints on the land market, • they must explicitly require the production of housing for low- and moderate-income households, rather than merely plan for it or ignore it completely. Smart Growth Policies: An Evaluation of Programs and Outcomes, Ingram, Gregory K., Armando Carbonell, Yu-Hung Hong, Anthony Flint, Lincoln Institute, May 2009, p. 86

  15. California’s 2017 Housing PackageEnacted September 29, 2017 • Streamlined approvals • Greater enforcement • Preservation • Funding • approvals • Greater enforcement • Preservation • Permanent funding

  16. 2017 Housing Package

  17. Stakeholder Deliverables

  18. SB 2 Building Jobs and Homes Act

  19. SB 2 Allocation

  20. SB 3 Veterans and Affordable Housing Bond Act, Nov. 2018(subject to voter approval) • $1.5 billion Multifamily Housing Prog. • $450 million TOD Housing and Infill Infrastructure Grant programs • $450 million CalHome and the BEGIN program • $300 million Joe Serna Farmworker Housing • $300 Million Local Housing Trust Fund Matching Grant

  21. Streamline Housing Permitting • SB 35 (Wiener) Affordable Housing: Streamlined Approval Process • Streamlined approval process with objective standards for qualifying multifamily infill developments in communities that have failed to meet their regional housing need allocation (RHNA) • Must comply with existing general plan, zoning • Sites in coastal zones & other designated areas excluded • Development must provide at least 10% for lower-income families or a higher local inclusionary threshold

  22. SB 35 Determinations, February 2018 • Jurisdictions with insufficient progress in meeting their RHNA must offer streamlined permitting for qualifying developments. • Depending on their RHNA progress by income category, they are subject to offering streamlining: • Insufficient re: Moderate- Above Moderate income units: • - For developments including at least 10% AH units (blue on map) • Insufficient re: Low – Very Low income units: • - For developments including at least 50% AH units • (beige on map)

  23. AB 1505 (Bloom) Inclusionary Zoning • Authorizes a city or county to require minimum amount of housing reserved for low income households in new residential rental developments • Authorizes HCD to review economic feasibility study of new or amended inclusionary ordinances with criteria above specified thresholds (>15% @ or below 80% AMI)

  24. Housing Element Accountability • AB 1397 (Low) Adequate Housing Element Sites • Strengthens housing planning law to ensure appropriate land is appropriately designated and available for development • SB 166 (Skinner) No Net Loss • Ensures appropriately zoned land remains available for development of housing affordable to lower income Californians • AB 879 (Grayson) Local Transparency Strengthens housing element requirements to address constraints to building housing; requires HCD report on changes to Mitigation Fee Act • AB 72 (Santiago) Housing Element Enforcement Strengthens enforcement of housing element law and authorizes HCD to refer violations to the Attorney General

  25. Housing Accountability Act (HAA)AB 678 (Bocanegra)/SB 167 (Skinner) & AB 1515 (Daly) • Higher standard of proof required for local agencies to defend any denial of low-to-moderate-income housing developments • Imposes a $10,000 per unit penalty on cities/counties that ,for unjustified reasons, deny approval of new homes affordable to low or moderate income Californians • Limits deference of State courts to local jurisdiction’s interpretation of Housing Accountability Act standards

  26. Outreach and Public Participation* July and Ongoing May - June March - April January - February December *Excluding SB 3 (TBD)

  27. hcd.ca.gov Visit:California Housing Package Sign up to receive: Email Announcements California Department of Housing and Community Development 2020 West El Camino Avenue, Sacramento, California 95833 916.263.7400 Follow us on Twitter: @California_HCD Follow us on Facebook: www.facebook.com/CaliforniaHCD

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