BILL NUMBER: AB 1934AMENDED BILL TEXT AMENDED IN SENATE JUNE 14, 2016 AMENDED IN ASSEMBLY JUNE 1, 2016 AMENDED IN ASSEMBLY APRIL 14, 2016 AMENDED IN ASSEMBLY APRIL 4, 2016 INTRODUCED BY Assembly Member Santiago FEBRUARY 12, 2016 An act to add Section 65915.7 to the Government Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST AB 1934, as amended, Santiago. Planning and zoning: development bonuses: mixed-use projects. The Planning and Zoning Law requires, when an applicant proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus and other incentives or concessions for the production of lower income housing units or for the donation of land within the development if the developer, among other things, agrees to construct a specified percentage of units for very low, low-, or moderate-income households or qualifying residents. This bill, when an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a joint project or 2 separate projects encompassing affordable housing, would require a city, county, or city and county to grant to the commercial developer a development bonus, as specified. The bill would define the development bonus to mean incentives mutually agreed upon by the developer and the jurisdictionincluding, butthat may include but are not limited to, specified variances. By increasing the duties of local officials relating to the administration of development bonuses, this bill would create 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. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares that the development of affordable housing 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, Section 65915.7 of the Government Code, as proposed to be added by this act, shall apply to all cities, including charter cities. SEC. 2. Section 65915.7 is added to the Government Code, to read: 65915.7. (a) When an applicant for approval for commercial development agrees to partner with an affordable housing developer to construct a joint project or two separate projects encompassing affordable housing, the city, county, or city and county shall, in addition to any density bonus and incentives or concessions granted to the affordable housing developer as prescribed in subparagraph (C) of paragraph (2) of subdivision (d) of Section 65915, grant to the commercial developer a development bonus as prescribed in subdivision (b). Offsite housing constructed according to this subdivision shall be all of the following: (1) Within the boundaries of the local government. (2) In close proximity to public amenities including schools and employment centers.(3) In close proximity to both pedestrian amenities and transit corridors.(3) Located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code. (b) The development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following: (1) Up to a 20-percent variance in maximum allowable intensity in the General Plan, zoning ordinance, or other regulation. (2) Up to a 20-percent variance in maximum allowable floor area ratio. (3) Up to a 20-percent variance in maximum height requirements. (4) Up to a 20-percent variance in minimum parking requirements. (5) A specific use of a limited-use/limited-application elevator for upper floor accessibility. (c) For the purposes of this section, the agreement for partnered housing and commercial developments shall be approved by the affordable housing developer, the commercial developer, and the local government. (d) For the purposes of this section, affordable housing may be contributed by the commercial developer in one of the following manners: (1) The commercial developer may directly build the units. (2) The commercial developer may dedicate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing. (3) The commercial developer may make an in-lieu payment to the affordable housing developer that shall be used towards the costs of affordable housing construction on a pending project. (e) For the purposes of this section, subparagraph (A) of paragraph (3) of subdivision (c) of Section 65915 shall apply. (f) Nothing in this section shall preclude any additional allowances or incentives offered to developers by local governments pursuant to law or regulation. (g) (1) If the developer of the affordable units does not commence with construction of those units in accordance with timelines ascribed by the agreement described in subdivision (c), the local government may withhold certificates of occupancy for any market rate units under construction until the developer has completed construction of the affordable units. (2) For the purposes of this subdivision, "commence with construction" shall mean either of the following: (A) Commence or complete the construction of affordable units. (B) Issuance of building permits for the construction of the affordable units. (h) For purposes of this section, "partner" shall mean formation of a partnership, limited liability company, corporation, or other entity recognized by the state in which the commercial development applicant and the affordable housing developer are each partners, members, shareholders or other participants, or a contract or agreement between a commercial development applicant and affordable housing developer for the development of both the commercial and the affordable housing properties. SEC. 3. 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.