California 2021 2021-2022 Regular Session

California Assembly Bill AB68 Amended / Bill

Filed 03/18/2021

                    Amended IN  Assembly  March 18, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 68Introduced by Assembly Member SalasDecember 07, 2020 An act to add Section 65914.2 to the Government Code, and to add Sections 50455.5 and 50469 to the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTAB 68, as amended, Salas. Affordable housing: California State Auditors Report. Department of Housing and Community Development: housing appeals committee: housing development and financing.(1) The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. Existing law provides for various reforms and incentives intended to facilitate and expedite the construction of affordable housing. Existing law requires the Department of Housing and Community Development (HCD), in consultation with each council of governments, to determine existing and projected needs for housing for each region and requires each council of governments or, for cities and counties without a council of governments, HCD to adopt a final regional housing need plan that allocates a share of the regional housing need to each city, county, or city and county and is consistent with specified objectives.The bill would require HCD to establish a housing appeals committee and would establish procedures by which an applicant for a conditional use permit or other discretionary approval for a housing development project, as defined, could appeal to that committee the decision of a city or county to either deny the application or approve the application with conditions in a manner rendering it infeasible for the development of the housing development project. The bill would provide that the committee would not have jurisdiction if the affected local agency has permitted construction of unspecified percentages of its allocation of units for very low, low-, and moderate-income households in the previous regional housing needs allocation plan cycle. The bill would authorize the committee, following a public hearing conducted according to specified procedures, to affirm, modify, or reverse the decision of the affected local agency. The bill would limit the review of the committee to whether, in the case of a denial, the decision was unreasonable and not consistent with local needs or, in the case of approval with conditions, whether the conditions imposed render the housing development project infeasible and are consistent with local needs. The bill would require the committee to affirm the decision of the affected local agency if it finds that the denial or conditions are consistent with local needs. The bill would provide that a decision of the committee to modify or reverse a decision of the affected local agency may be reviewed in the superior court for the county in which the housing development project is proposed to be constructed.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.By adding to the duties of local planning officials with respect to the approval of housing development projects, this bill would impose a state-mandated local program. Existing(2) Existing law establishes various programs intended to promote the development of affordable housing, including the Multifamily Housing Program, under which the Department of Housing and Community Development HCD provides financial assistance in the form of deferred payment loans to pay for the eligible costs of certain housing development activities. Existing law requires the California State Auditor to conduct any audit of a state or local agency or any other publicly created entity that is requested by the Joint Legislative Audit Committee, as provided. establishes the California Statewide Housing Plan, which serves as a state housing plan for all relevant purposes, that incorporates a statement of housing goals, policies, and objectives, as well as specified segments. Existing law requires HCD to update and provide a revision of the plan to the Legislature every 4 years, as provided.This bill would state the intent of the Legislature to enact legislation that would implement recommendations made in the California State Auditors Report 2020-108, issued on November 17, 2020, relating to affordable housing.This bill, no later than January 31, 2022, and annually thereafter, would require HCD to prepare and submit to the Legislature an addendum to the most recent revision of the California Statewide Housing Plan, as described above, that includes updated information and identifies specified information relating to state financial resources and housing projects receiving financing. The bill would also require HCD to establish a workgroup that includes representatives from HCD, the California Tax Credit Allocation Committee, the California Housing Finance Agency, and relevant industries, including, but not limited to, private lenders and developers, for the purpose of ensuring that the state awards financial resources for housing in a more timely and efficient manner. In carrying out this purpose, the bill would require the workgroup to make various recommendations regarding regulatory changes to program requirements and deadlines.(3) 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.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NOYES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 65914.2 is added to the Government Code, to read:65914.2. (a) For purposes of this section:(1) Affected local agency means a city, including a charter city, or county with jurisdiction over a proposed housing development project for which an appeal is sought pursuant to this section.(2) Applicant means a person seeking a conditional use or other discretionary permit from an affected local agency in order construct a housing development project.(3) Consistent with local needs means reasonable with respect to the determination of regional housing need, as determined pursuant to Section 65584, for the number of very low, low-, and moderate-income households within an affected local agency and the health and safety of the residents of the affected local agency.(4) Department means the Department of Housing and Community Development.(5) Housing appeals committee or committee means the committee established within the department pursuant to subdivision (b) for the purpose of hearing appeals from a decision of an affected local agency with respect to an application for a conditional use or other discretionary permit for a housing development project.(6) Housing development project means a use consisting of any of the following:(A) One or more residential dwelling 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. (7) Infeasible means that it is impossible to build or operate a housing development project without financial loss without substantially changing the cost of the housing or unit sizes. (b) (1) The department shall establish a housing appeals committee. The Director of Housing and Community Development shall annually appoint the members of the committee and designate a chair.(2) Membership on the committee shall be as follows:(A) Three representatives of the department.(B) Four public members who shall be appointed so as to promote geographic diversity and balance urban and rural interests and who shall each be representative of, or have experience in, one or more of the following areas:(i) Private sector lending institutions.(ii) For-profit housing development.(iii) Nonprofit housing development.(iv) Public sector housing development.(v) Local or regional planning.(vi) Architecture.(vii) Local community development.(viii) Local government.(ix) Housing consultation.(x) Academia as related to housing issues.(3) Members of the committee shall serve without compensation, but shall be reimbursed for all actual and necessary expenses incurred in the performance of their duties.(4) The committee shall hear appeals pursuant to this section at a public hearing held at least quarterly. The committee shall conduct the public hearing in accordance with any applicable rules and regulations adopted by the department.(5) The department shall provide space and clerical or other assistance that the committee may require.(c) (1) Subject to paragraph (3), if a city or county denies an application for a conditional use permit or other discretionary approval for a housing development project, or grants that permit or approval with conditions in a manner rendering it infeasible for the development of the housing development project, the applicant may, within 20 days of the final decision of the affected local agency, appeal the decision to the committee by submitting a statement of appeal, which shall state the grounds for the appeal and the relief sought, to the committee.(2) The committee shall transmit a notice of the appeal to any affected local agency. No later than 10 days following receipt of the notice of appeal, the affected local agency shall transmit a copy of the final decision described in paragraph (1) to the committee for review.(3) The committee shall not have jurisdiction over the appeal if the affected local agency has permitted construction of at least ____ percent of its allocation of units for very low income households, ____ percent of its allocation of units for low-income households, and ____ percent of its allocation of units for moderate-income households in the previous regional housing needs allocation plan cycle developed pursuant to Section 65584.(d) The committee shall conduct a hearing on the appeal within 30 days of receipt of the statement of appeal. The committee shall, by majority vote and consistent with subdivision (e), affirm, modify, or reverse the decision of the city or county within 30 days after the conclusion of the hearing.(e) The review of the committee shall be limited as follows:(1) (A) If the affected local agency denied the application for a conditional use permit or other discretionary approval, whether that denial was reasonable and consistent with local needs.(B) If the committee determines that a denial of the application for a conditional use permit or other discretionary approval is both unreasonable and not consistent with local needs, the committee shall reverse the decision of the affected local agency and remand the matter with instructions that the application be approved consistent with the decision of the committee.(2) (A) If the affected local agency approved the application with conditions, whether the conditions imposed on the housing development project render it infeasible and are consistent with local needs.(B) If the committee determines that one or more of the conditions imposed on the housing development project render it infeasible and that those conditions are not consistent with local needs, the committee shall modify the permit so that it no longer renders infeasible the development of the housing development project and the conditions are consistent with local needs. The committee shall remand the matter to the affected local agency with instructions to issue the permit or other approval as modified by the committee.(3) The committee shall affirm the decision of the affected local agency if it finds that the decision is consistent with local needs.(f) Once the committee has issued its final decision, the affected local agency shall not have any discretion to modify the permit or other approval other than as directed in the decision of the committee. Implementation of the final decision of the committee shall be deemed a ministerial duty of the affected local agency.(g) A decision of the committee modifying or reversing a decision of the affected local agency may be reviewed in the superior court for the county in which the housing development project is proposed to be constructed. (h) The Legislature finds and declares that encouraging and streamlining the development of housing throughout the state 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. Section 50455.5 is added to the Health and Safety Code, to read:50455.5. (a) No later than January 31, 2022, and annually thereafter, the department shall prepare and submit to the Legislature an addendum to the most recent revision of the California Statewide Housing Plan pursuant to Section 50452 that includes updated information and identifies all of the following:(1) All financial resources available to each housing agency for the development of affordable housing.(2) The number of affordable units that the resources identified in paragraph (1) are expected to build annually compared to the annual units needed, including units for individuals experiencing homelessness, individuals with special needs, seniors, and farmworkers.(3) The amount of financial resources the state will need to obtain from other sources, including, but not limited to, federal, local, and private sources, to meet the remaining gap in needed units, if any, identified pursuant to paragraph (2).(4) Where the states financial resources will have the most impact based on geographic distribution, population, and indicators of need.(5) Outcomes to measure how well the state is maximizing the impact of its financial resources to meet the annual units needed, including measuring whether the state has reduced cost burden and overcrowding, and increased housing availability.(b) The annual addendum to the California Statewide Housing Plan submitted pursuant to this section shall be submitted in accordance with Section 9795 of the Government Code.SEC. 3. Section 50469 is added to the Health and Safety Code, to read:50469. (a) The department shall establish a workgroup that includes representatives from the department, the California Tax Credit Allocation Committee, the California Housing Finance Agency, and relevant industries, including, but not limited to, private lenders and developers.(b) The purpose of the workgroup established pursuant to this section shall be to ensure that the state awards financial resources for housing in a more timely and efficient manner. In carrying out this purpose, the workgroup shall do all of the following:(1) To the extent feasible, and consistent with applicable law, develop recommendations to ensure that program requirements for determining eligibility for awarding financial resources to multifamily housing projects are consistent.(2) Recommend regulatory changes to align application deadlines for multifamily housing programs.(3) Design requirements and develop recommended deadlines to best accomplish the goals outlined in the most recent revision of the California Statewide Housing Plan pursuant to Section 50452, along with any addendum prepared pursuant to Section 50455.5, with the intent of maximizing the number of affordable housing units built and removing administrative barriers.(4) Recommending regulatory changes that the department, the California Tax Credit Allocation Committee, and the California Housing Finance Agency may take consistent with applicable law in order to incorporate any new program requirements and deadlines developed by the workgroup pursuant to this section.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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.SECTION 1.It is the intent of the Legislature to enact legislation that would implement recommendations made in the California State Auditors Report 2020-108, issued on November 17, 2020, relating to affordable housing.

 Amended IN  Assembly  March 18, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 68Introduced by Assembly Member SalasDecember 07, 2020 An act to add Section 65914.2 to the Government Code, and to add Sections 50455.5 and 50469 to the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTAB 68, as amended, Salas. Affordable housing: California State Auditors Report. Department of Housing and Community Development: housing appeals committee: housing development and financing.(1) The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. Existing law provides for various reforms and incentives intended to facilitate and expedite the construction of affordable housing. Existing law requires the Department of Housing and Community Development (HCD), in consultation with each council of governments, to determine existing and projected needs for housing for each region and requires each council of governments or, for cities and counties without a council of governments, HCD to adopt a final regional housing need plan that allocates a share of the regional housing need to each city, county, or city and county and is consistent with specified objectives.The bill would require HCD to establish a housing appeals committee and would establish procedures by which an applicant for a conditional use permit or other discretionary approval for a housing development project, as defined, could appeal to that committee the decision of a city or county to either deny the application or approve the application with conditions in a manner rendering it infeasible for the development of the housing development project. The bill would provide that the committee would not have jurisdiction if the affected local agency has permitted construction of unspecified percentages of its allocation of units for very low, low-, and moderate-income households in the previous regional housing needs allocation plan cycle. The bill would authorize the committee, following a public hearing conducted according to specified procedures, to affirm, modify, or reverse the decision of the affected local agency. The bill would limit the review of the committee to whether, in the case of a denial, the decision was unreasonable and not consistent with local needs or, in the case of approval with conditions, whether the conditions imposed render the housing development project infeasible and are consistent with local needs. The bill would require the committee to affirm the decision of the affected local agency if it finds that the denial or conditions are consistent with local needs. The bill would provide that a decision of the committee to modify or reverse a decision of the affected local agency may be reviewed in the superior court for the county in which the housing development project is proposed to be constructed.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.By adding to the duties of local planning officials with respect to the approval of housing development projects, this bill would impose a state-mandated local program. Existing(2) Existing law establishes various programs intended to promote the development of affordable housing, including the Multifamily Housing Program, under which the Department of Housing and Community Development HCD provides financial assistance in the form of deferred payment loans to pay for the eligible costs of certain housing development activities. Existing law requires the California State Auditor to conduct any audit of a state or local agency or any other publicly created entity that is requested by the Joint Legislative Audit Committee, as provided. establishes the California Statewide Housing Plan, which serves as a state housing plan for all relevant purposes, that incorporates a statement of housing goals, policies, and objectives, as well as specified segments. Existing law requires HCD to update and provide a revision of the plan to the Legislature every 4 years, as provided.This bill would state the intent of the Legislature to enact legislation that would implement recommendations made in the California State Auditors Report 2020-108, issued on November 17, 2020, relating to affordable housing.This bill, no later than January 31, 2022, and annually thereafter, would require HCD to prepare and submit to the Legislature an addendum to the most recent revision of the California Statewide Housing Plan, as described above, that includes updated information and identifies specified information relating to state financial resources and housing projects receiving financing. The bill would also require HCD to establish a workgroup that includes representatives from HCD, the California Tax Credit Allocation Committee, the California Housing Finance Agency, and relevant industries, including, but not limited to, private lenders and developers, for the purpose of ensuring that the state awards financial resources for housing in a more timely and efficient manner. In carrying out this purpose, the bill would require the workgroup to make various recommendations regarding regulatory changes to program requirements and deadlines.(3) 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.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NOYES 

 Amended IN  Assembly  March 18, 2021

Amended IN  Assembly  March 18, 2021

 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION

 Assembly Bill 

No. 68

Introduced by Assembly Member SalasDecember 07, 2020

Introduced by Assembly Member Salas
December 07, 2020

 An act to add Section 65914.2 to the Government Code, and to add Sections 50455.5 and 50469 to the Health and Safety Code, relating to housing. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 68, as amended, Salas. Affordable housing: California State Auditors Report. Department of Housing and Community Development: housing appeals committee: housing development and financing.

(1) The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. Existing law provides for various reforms and incentives intended to facilitate and expedite the construction of affordable housing. Existing law requires the Department of Housing and Community Development (HCD), in consultation with each council of governments, to determine existing and projected needs for housing for each region and requires each council of governments or, for cities and counties without a council of governments, HCD to adopt a final regional housing need plan that allocates a share of the regional housing need to each city, county, or city and county and is consistent with specified objectives.The bill would require HCD to establish a housing appeals committee and would establish procedures by which an applicant for a conditional use permit or other discretionary approval for a housing development project, as defined, could appeal to that committee the decision of a city or county to either deny the application or approve the application with conditions in a manner rendering it infeasible for the development of the housing development project. The bill would provide that the committee would not have jurisdiction if the affected local agency has permitted construction of unspecified percentages of its allocation of units for very low, low-, and moderate-income households in the previous regional housing needs allocation plan cycle. The bill would authorize the committee, following a public hearing conducted according to specified procedures, to affirm, modify, or reverse the decision of the affected local agency. The bill would limit the review of the committee to whether, in the case of a denial, the decision was unreasonable and not consistent with local needs or, in the case of approval with conditions, whether the conditions imposed render the housing development project infeasible and are consistent with local needs. The bill would require the committee to affirm the decision of the affected local agency if it finds that the denial or conditions are consistent with local needs. The bill would provide that a decision of the committee to modify or reverse a decision of the affected local agency may be reviewed in the superior court for the county in which the housing development project is proposed to be constructed.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.By adding to the duties of local planning officials with respect to the approval of housing development projects, this bill would impose a state-mandated local program. Existing(2) Existing law establishes various programs intended to promote the development of affordable housing, including the Multifamily Housing Program, under which the Department of Housing and Community Development HCD provides financial assistance in the form of deferred payment loans to pay for the eligible costs of certain housing development activities. Existing law requires the California State Auditor to conduct any audit of a state or local agency or any other publicly created entity that is requested by the Joint Legislative Audit Committee, as provided. establishes the California Statewide Housing Plan, which serves as a state housing plan for all relevant purposes, that incorporates a statement of housing goals, policies, and objectives, as well as specified segments. Existing law requires HCD to update and provide a revision of the plan to the Legislature every 4 years, as provided.This bill would state the intent of the Legislature to enact legislation that would implement recommendations made in the California State Auditors Report 2020-108, issued on November 17, 2020, relating to affordable housing.This bill, no later than January 31, 2022, and annually thereafter, would require HCD to prepare and submit to the Legislature an addendum to the most recent revision of the California Statewide Housing Plan, as described above, that includes updated information and identifies specified information relating to state financial resources and housing projects receiving financing. The bill would also require HCD to establish a workgroup that includes representatives from HCD, the California Tax Credit Allocation Committee, the California Housing Finance Agency, and relevant industries, including, but not limited to, private lenders and developers, for the purpose of ensuring that the state awards financial resources for housing in a more timely and efficient manner. In carrying out this purpose, the bill would require the workgroup to make various recommendations regarding regulatory changes to program requirements and deadlines.(3) 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.

(1) The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. Existing law provides for various reforms and incentives intended to facilitate and expedite the construction of affordable housing. Existing law requires the Department of Housing and Community Development (HCD), in consultation with each council of governments, to determine existing and projected needs for housing for each region and requires each council of governments or, for cities and counties without a council of governments, HCD to adopt a final regional housing need plan that allocates a share of the regional housing need to each city, county, or city and county and is consistent with specified objectives.

The bill would require HCD to establish a housing appeals committee and would establish procedures by which an applicant for a conditional use permit or other discretionary approval for a housing development project, as defined, could appeal to that committee the decision of a city or county to either deny the application or approve the application with conditions in a manner rendering it infeasible for the development of the housing development project. The bill would provide that the committee would not have jurisdiction if the affected local agency has permitted construction of unspecified percentages of its allocation of units for very low, low-, and moderate-income households in the previous regional housing needs allocation plan cycle. The bill would authorize the committee, following a public hearing conducted according to specified procedures, to affirm, modify, or reverse the decision of the affected local agency. The bill would limit the review of the committee to whether, in the case of a denial, the decision was unreasonable and not consistent with local needs or, in the case of approval with conditions, whether the conditions imposed render the housing development project infeasible and are consistent with local needs. The bill would require the committee to affirm the decision of the affected local agency if it finds that the denial or conditions are consistent with local needs. The bill would provide that a decision of the committee to modify or reverse a decision of the affected local agency may be reviewed in the superior court for the county in which the housing development project is proposed to be constructed.

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.

By adding to the duties of local planning officials with respect to the approval of housing development projects, this bill would impose a state-mandated local program.

 Existing



(2) Existing law establishes various programs intended to promote the development of affordable housing, including the Multifamily Housing Program, under which the Department of Housing and Community Development HCD provides financial assistance in the form of deferred payment loans to pay for the eligible costs of certain housing development activities. Existing law requires the California State Auditor to conduct any audit of a state or local agency or any other publicly created entity that is requested by the Joint Legislative Audit Committee, as provided. establishes the California Statewide Housing Plan, which serves as a state housing plan for all relevant purposes, that incorporates a statement of housing goals, policies, and objectives, as well as specified segments. Existing law requires HCD to update and provide a revision of the plan to the Legislature every 4 years, as provided.

This bill would state the intent of the Legislature to enact legislation that would implement recommendations made in the California State Auditors Report 2020-108, issued on November 17, 2020, relating to affordable housing.



This bill, no later than January 31, 2022, and annually thereafter, would require HCD to prepare and submit to the Legislature an addendum to the most recent revision of the California Statewide Housing Plan, as described above, that includes updated information and identifies specified information relating to state financial resources and housing projects receiving financing. The bill would also require HCD to establish a workgroup that includes representatives from HCD, the California Tax Credit Allocation Committee, the California Housing Finance Agency, and relevant industries, including, but not limited to, private lenders and developers, for the purpose of ensuring that the state awards financial resources for housing in a more timely and efficient manner. In carrying out this purpose, the bill would require the workgroup to make various recommendations regarding regulatory changes to program requirements and deadlines.

(3) 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.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 65914.2 is added to the Government Code, to read:65914.2. (a) For purposes of this section:(1) Affected local agency means a city, including a charter city, or county with jurisdiction over a proposed housing development project for which an appeal is sought pursuant to this section.(2) Applicant means a person seeking a conditional use or other discretionary permit from an affected local agency in order construct a housing development project.(3) Consistent with local needs means reasonable with respect to the determination of regional housing need, as determined pursuant to Section 65584, for the number of very low, low-, and moderate-income households within an affected local agency and the health and safety of the residents of the affected local agency.(4) Department means the Department of Housing and Community Development.(5) Housing appeals committee or committee means the committee established within the department pursuant to subdivision (b) for the purpose of hearing appeals from a decision of an affected local agency with respect to an application for a conditional use or other discretionary permit for a housing development project.(6) Housing development project means a use consisting of any of the following:(A) One or more residential dwelling 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. (7) Infeasible means that it is impossible to build or operate a housing development project without financial loss without substantially changing the cost of the housing or unit sizes. (b) (1) The department shall establish a housing appeals committee. The Director of Housing and Community Development shall annually appoint the members of the committee and designate a chair.(2) Membership on the committee shall be as follows:(A) Three representatives of the department.(B) Four public members who shall be appointed so as to promote geographic diversity and balance urban and rural interests and who shall each be representative of, or have experience in, one or more of the following areas:(i) Private sector lending institutions.(ii) For-profit housing development.(iii) Nonprofit housing development.(iv) Public sector housing development.(v) Local or regional planning.(vi) Architecture.(vii) Local community development.(viii) Local government.(ix) Housing consultation.(x) Academia as related to housing issues.(3) Members of the committee shall serve without compensation, but shall be reimbursed for all actual and necessary expenses incurred in the performance of their duties.(4) The committee shall hear appeals pursuant to this section at a public hearing held at least quarterly. The committee shall conduct the public hearing in accordance with any applicable rules and regulations adopted by the department.(5) The department shall provide space and clerical or other assistance that the committee may require.(c) (1) Subject to paragraph (3), if a city or county denies an application for a conditional use permit or other discretionary approval for a housing development project, or grants that permit or approval with conditions in a manner rendering it infeasible for the development of the housing development project, the applicant may, within 20 days of the final decision of the affected local agency, appeal the decision to the committee by submitting a statement of appeal, which shall state the grounds for the appeal and the relief sought, to the committee.(2) The committee shall transmit a notice of the appeal to any affected local agency. No later than 10 days following receipt of the notice of appeal, the affected local agency shall transmit a copy of the final decision described in paragraph (1) to the committee for review.(3) The committee shall not have jurisdiction over the appeal if the affected local agency has permitted construction of at least ____ percent of its allocation of units for very low income households, ____ percent of its allocation of units for low-income households, and ____ percent of its allocation of units for moderate-income households in the previous regional housing needs allocation plan cycle developed pursuant to Section 65584.(d) The committee shall conduct a hearing on the appeal within 30 days of receipt of the statement of appeal. The committee shall, by majority vote and consistent with subdivision (e), affirm, modify, or reverse the decision of the city or county within 30 days after the conclusion of the hearing.(e) The review of the committee shall be limited as follows:(1) (A) If the affected local agency denied the application for a conditional use permit or other discretionary approval, whether that denial was reasonable and consistent with local needs.(B) If the committee determines that a denial of the application for a conditional use permit or other discretionary approval is both unreasonable and not consistent with local needs, the committee shall reverse the decision of the affected local agency and remand the matter with instructions that the application be approved consistent with the decision of the committee.(2) (A) If the affected local agency approved the application with conditions, whether the conditions imposed on the housing development project render it infeasible and are consistent with local needs.(B) If the committee determines that one or more of the conditions imposed on the housing development project render it infeasible and that those conditions are not consistent with local needs, the committee shall modify the permit so that it no longer renders infeasible the development of the housing development project and the conditions are consistent with local needs. The committee shall remand the matter to the affected local agency with instructions to issue the permit or other approval as modified by the committee.(3) The committee shall affirm the decision of the affected local agency if it finds that the decision is consistent with local needs.(f) Once the committee has issued its final decision, the affected local agency shall not have any discretion to modify the permit or other approval other than as directed in the decision of the committee. Implementation of the final decision of the committee shall be deemed a ministerial duty of the affected local agency.(g) A decision of the committee modifying or reversing a decision of the affected local agency may be reviewed in the superior court for the county in which the housing development project is proposed to be constructed. (h) The Legislature finds and declares that encouraging and streamlining the development of housing throughout the state 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. Section 50455.5 is added to the Health and Safety Code, to read:50455.5. (a) No later than January 31, 2022, and annually thereafter, the department shall prepare and submit to the Legislature an addendum to the most recent revision of the California Statewide Housing Plan pursuant to Section 50452 that includes updated information and identifies all of the following:(1) All financial resources available to each housing agency for the development of affordable housing.(2) The number of affordable units that the resources identified in paragraph (1) are expected to build annually compared to the annual units needed, including units for individuals experiencing homelessness, individuals with special needs, seniors, and farmworkers.(3) The amount of financial resources the state will need to obtain from other sources, including, but not limited to, federal, local, and private sources, to meet the remaining gap in needed units, if any, identified pursuant to paragraph (2).(4) Where the states financial resources will have the most impact based on geographic distribution, population, and indicators of need.(5) Outcomes to measure how well the state is maximizing the impact of its financial resources to meet the annual units needed, including measuring whether the state has reduced cost burden and overcrowding, and increased housing availability.(b) The annual addendum to the California Statewide Housing Plan submitted pursuant to this section shall be submitted in accordance with Section 9795 of the Government Code.SEC. 3. Section 50469 is added to the Health and Safety Code, to read:50469. (a) The department shall establish a workgroup that includes representatives from the department, the California Tax Credit Allocation Committee, the California Housing Finance Agency, and relevant industries, including, but not limited to, private lenders and developers.(b) The purpose of the workgroup established pursuant to this section shall be to ensure that the state awards financial resources for housing in a more timely and efficient manner. In carrying out this purpose, the workgroup shall do all of the following:(1) To the extent feasible, and consistent with applicable law, develop recommendations to ensure that program requirements for determining eligibility for awarding financial resources to multifamily housing projects are consistent.(2) Recommend regulatory changes to align application deadlines for multifamily housing programs.(3) Design requirements and develop recommended deadlines to best accomplish the goals outlined in the most recent revision of the California Statewide Housing Plan pursuant to Section 50452, along with any addendum prepared pursuant to Section 50455.5, with the intent of maximizing the number of affordable housing units built and removing administrative barriers.(4) Recommending regulatory changes that the department, the California Tax Credit Allocation Committee, and the California Housing Finance Agency may take consistent with applicable law in order to incorporate any new program requirements and deadlines developed by the workgroup pursuant to this section.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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.SECTION 1.It is the intent of the Legislature to enact legislation that would implement recommendations made in the California State Auditors Report 2020-108, issued on November 17, 2020, relating to affordable housing.

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

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

SECTION 1. Section 65914.2 is added to the Government Code, to read:65914.2. (a) For purposes of this section:(1) Affected local agency means a city, including a charter city, or county with jurisdiction over a proposed housing development project for which an appeal is sought pursuant to this section.(2) Applicant means a person seeking a conditional use or other discretionary permit from an affected local agency in order construct a housing development project.(3) Consistent with local needs means reasonable with respect to the determination of regional housing need, as determined pursuant to Section 65584, for the number of very low, low-, and moderate-income households within an affected local agency and the health and safety of the residents of the affected local agency.(4) Department means the Department of Housing and Community Development.(5) Housing appeals committee or committee means the committee established within the department pursuant to subdivision (b) for the purpose of hearing appeals from a decision of an affected local agency with respect to an application for a conditional use or other discretionary permit for a housing development project.(6) Housing development project means a use consisting of any of the following:(A) One or more residential dwelling 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. (7) Infeasible means that it is impossible to build or operate a housing development project without financial loss without substantially changing the cost of the housing or unit sizes. (b) (1) The department shall establish a housing appeals committee. The Director of Housing and Community Development shall annually appoint the members of the committee and designate a chair.(2) Membership on the committee shall be as follows:(A) Three representatives of the department.(B) Four public members who shall be appointed so as to promote geographic diversity and balance urban and rural interests and who shall each be representative of, or have experience in, one or more of the following areas:(i) Private sector lending institutions.(ii) For-profit housing development.(iii) Nonprofit housing development.(iv) Public sector housing development.(v) Local or regional planning.(vi) Architecture.(vii) Local community development.(viii) Local government.(ix) Housing consultation.(x) Academia as related to housing issues.(3) Members of the committee shall serve without compensation, but shall be reimbursed for all actual and necessary expenses incurred in the performance of their duties.(4) The committee shall hear appeals pursuant to this section at a public hearing held at least quarterly. The committee shall conduct the public hearing in accordance with any applicable rules and regulations adopted by the department.(5) The department shall provide space and clerical or other assistance that the committee may require.(c) (1) Subject to paragraph (3), if a city or county denies an application for a conditional use permit or other discretionary approval for a housing development project, or grants that permit or approval with conditions in a manner rendering it infeasible for the development of the housing development project, the applicant may, within 20 days of the final decision of the affected local agency, appeal the decision to the committee by submitting a statement of appeal, which shall state the grounds for the appeal and the relief sought, to the committee.(2) The committee shall transmit a notice of the appeal to any affected local agency. No later than 10 days following receipt of the notice of appeal, the affected local agency shall transmit a copy of the final decision described in paragraph (1) to the committee for review.(3) The committee shall not have jurisdiction over the appeal if the affected local agency has permitted construction of at least ____ percent of its allocation of units for very low income households, ____ percent of its allocation of units for low-income households, and ____ percent of its allocation of units for moderate-income households in the previous regional housing needs allocation plan cycle developed pursuant to Section 65584.(d) The committee shall conduct a hearing on the appeal within 30 days of receipt of the statement of appeal. The committee shall, by majority vote and consistent with subdivision (e), affirm, modify, or reverse the decision of the city or county within 30 days after the conclusion of the hearing.(e) The review of the committee shall be limited as follows:(1) (A) If the affected local agency denied the application for a conditional use permit or other discretionary approval, whether that denial was reasonable and consistent with local needs.(B) If the committee determines that a denial of the application for a conditional use permit or other discretionary approval is both unreasonable and not consistent with local needs, the committee shall reverse the decision of the affected local agency and remand the matter with instructions that the application be approved consistent with the decision of the committee.(2) (A) If the affected local agency approved the application with conditions, whether the conditions imposed on the housing development project render it infeasible and are consistent with local needs.(B) If the committee determines that one or more of the conditions imposed on the housing development project render it infeasible and that those conditions are not consistent with local needs, the committee shall modify the permit so that it no longer renders infeasible the development of the housing development project and the conditions are consistent with local needs. The committee shall remand the matter to the affected local agency with instructions to issue the permit or other approval as modified by the committee.(3) The committee shall affirm the decision of the affected local agency if it finds that the decision is consistent with local needs.(f) Once the committee has issued its final decision, the affected local agency shall not have any discretion to modify the permit or other approval other than as directed in the decision of the committee. Implementation of the final decision of the committee shall be deemed a ministerial duty of the affected local agency.(g) A decision of the committee modifying or reversing a decision of the affected local agency may be reviewed in the superior court for the county in which the housing development project is proposed to be constructed. (h) The Legislature finds and declares that encouraging and streamlining the development of housing throughout the state 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.

SECTION 1. Section 65914.2 is added to the Government Code, to read:

### SECTION 1.

65914.2. (a) For purposes of this section:(1) Affected local agency means a city, including a charter city, or county with jurisdiction over a proposed housing development project for which an appeal is sought pursuant to this section.(2) Applicant means a person seeking a conditional use or other discretionary permit from an affected local agency in order construct a housing development project.(3) Consistent with local needs means reasonable with respect to the determination of regional housing need, as determined pursuant to Section 65584, for the number of very low, low-, and moderate-income households within an affected local agency and the health and safety of the residents of the affected local agency.(4) Department means the Department of Housing and Community Development.(5) Housing appeals committee or committee means the committee established within the department pursuant to subdivision (b) for the purpose of hearing appeals from a decision of an affected local agency with respect to an application for a conditional use or other discretionary permit for a housing development project.(6) Housing development project means a use consisting of any of the following:(A) One or more residential dwelling 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. (7) Infeasible means that it is impossible to build or operate a housing development project without financial loss without substantially changing the cost of the housing or unit sizes. (b) (1) The department shall establish a housing appeals committee. The Director of Housing and Community Development shall annually appoint the members of the committee and designate a chair.(2) Membership on the committee shall be as follows:(A) Three representatives of the department.(B) Four public members who shall be appointed so as to promote geographic diversity and balance urban and rural interests and who shall each be representative of, or have experience in, one or more of the following areas:(i) Private sector lending institutions.(ii) For-profit housing development.(iii) Nonprofit housing development.(iv) Public sector housing development.(v) Local or regional planning.(vi) Architecture.(vii) Local community development.(viii) Local government.(ix) Housing consultation.(x) Academia as related to housing issues.(3) Members of the committee shall serve without compensation, but shall be reimbursed for all actual and necessary expenses incurred in the performance of their duties.(4) The committee shall hear appeals pursuant to this section at a public hearing held at least quarterly. The committee shall conduct the public hearing in accordance with any applicable rules and regulations adopted by the department.(5) The department shall provide space and clerical or other assistance that the committee may require.(c) (1) Subject to paragraph (3), if a city or county denies an application for a conditional use permit or other discretionary approval for a housing development project, or grants that permit or approval with conditions in a manner rendering it infeasible for the development of the housing development project, the applicant may, within 20 days of the final decision of the affected local agency, appeal the decision to the committee by submitting a statement of appeal, which shall state the grounds for the appeal and the relief sought, to the committee.(2) The committee shall transmit a notice of the appeal to any affected local agency. No later than 10 days following receipt of the notice of appeal, the affected local agency shall transmit a copy of the final decision described in paragraph (1) to the committee for review.(3) The committee shall not have jurisdiction over the appeal if the affected local agency has permitted construction of at least ____ percent of its allocation of units for very low income households, ____ percent of its allocation of units for low-income households, and ____ percent of its allocation of units for moderate-income households in the previous regional housing needs allocation plan cycle developed pursuant to Section 65584.(d) The committee shall conduct a hearing on the appeal within 30 days of receipt of the statement of appeal. The committee shall, by majority vote and consistent with subdivision (e), affirm, modify, or reverse the decision of the city or county within 30 days after the conclusion of the hearing.(e) The review of the committee shall be limited as follows:(1) (A) If the affected local agency denied the application for a conditional use permit or other discretionary approval, whether that denial was reasonable and consistent with local needs.(B) If the committee determines that a denial of the application for a conditional use permit or other discretionary approval is both unreasonable and not consistent with local needs, the committee shall reverse the decision of the affected local agency and remand the matter with instructions that the application be approved consistent with the decision of the committee.(2) (A) If the affected local agency approved the application with conditions, whether the conditions imposed on the housing development project render it infeasible and are consistent with local needs.(B) If the committee determines that one or more of the conditions imposed on the housing development project render it infeasible and that those conditions are not consistent with local needs, the committee shall modify the permit so that it no longer renders infeasible the development of the housing development project and the conditions are consistent with local needs. The committee shall remand the matter to the affected local agency with instructions to issue the permit or other approval as modified by the committee.(3) The committee shall affirm the decision of the affected local agency if it finds that the decision is consistent with local needs.(f) Once the committee has issued its final decision, the affected local agency shall not have any discretion to modify the permit or other approval other than as directed in the decision of the committee. Implementation of the final decision of the committee shall be deemed a ministerial duty of the affected local agency.(g) A decision of the committee modifying or reversing a decision of the affected local agency may be reviewed in the superior court for the county in which the housing development project is proposed to be constructed. (h) The Legislature finds and declares that encouraging and streamlining the development of housing throughout the state 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.

65914.2. (a) For purposes of this section:(1) Affected local agency means a city, including a charter city, or county with jurisdiction over a proposed housing development project for which an appeal is sought pursuant to this section.(2) Applicant means a person seeking a conditional use or other discretionary permit from an affected local agency in order construct a housing development project.(3) Consistent with local needs means reasonable with respect to the determination of regional housing need, as determined pursuant to Section 65584, for the number of very low, low-, and moderate-income households within an affected local agency and the health and safety of the residents of the affected local agency.(4) Department means the Department of Housing and Community Development.(5) Housing appeals committee or committee means the committee established within the department pursuant to subdivision (b) for the purpose of hearing appeals from a decision of an affected local agency with respect to an application for a conditional use or other discretionary permit for a housing development project.(6) Housing development project means a use consisting of any of the following:(A) One or more residential dwelling 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. (7) Infeasible means that it is impossible to build or operate a housing development project without financial loss without substantially changing the cost of the housing or unit sizes. (b) (1) The department shall establish a housing appeals committee. The Director of Housing and Community Development shall annually appoint the members of the committee and designate a chair.(2) Membership on the committee shall be as follows:(A) Three representatives of the department.(B) Four public members who shall be appointed so as to promote geographic diversity and balance urban and rural interests and who shall each be representative of, or have experience in, one or more of the following areas:(i) Private sector lending institutions.(ii) For-profit housing development.(iii) Nonprofit housing development.(iv) Public sector housing development.(v) Local or regional planning.(vi) Architecture.(vii) Local community development.(viii) Local government.(ix) Housing consultation.(x) Academia as related to housing issues.(3) Members of the committee shall serve without compensation, but shall be reimbursed for all actual and necessary expenses incurred in the performance of their duties.(4) The committee shall hear appeals pursuant to this section at a public hearing held at least quarterly. The committee shall conduct the public hearing in accordance with any applicable rules and regulations adopted by the department.(5) The department shall provide space and clerical or other assistance that the committee may require.(c) (1) Subject to paragraph (3), if a city or county denies an application for a conditional use permit or other discretionary approval for a housing development project, or grants that permit or approval with conditions in a manner rendering it infeasible for the development of the housing development project, the applicant may, within 20 days of the final decision of the affected local agency, appeal the decision to the committee by submitting a statement of appeal, which shall state the grounds for the appeal and the relief sought, to the committee.(2) The committee shall transmit a notice of the appeal to any affected local agency. No later than 10 days following receipt of the notice of appeal, the affected local agency shall transmit a copy of the final decision described in paragraph (1) to the committee for review.(3) The committee shall not have jurisdiction over the appeal if the affected local agency has permitted construction of at least ____ percent of its allocation of units for very low income households, ____ percent of its allocation of units for low-income households, and ____ percent of its allocation of units for moderate-income households in the previous regional housing needs allocation plan cycle developed pursuant to Section 65584.(d) The committee shall conduct a hearing on the appeal within 30 days of receipt of the statement of appeal. The committee shall, by majority vote and consistent with subdivision (e), affirm, modify, or reverse the decision of the city or county within 30 days after the conclusion of the hearing.(e) The review of the committee shall be limited as follows:(1) (A) If the affected local agency denied the application for a conditional use permit or other discretionary approval, whether that denial was reasonable and consistent with local needs.(B) If the committee determines that a denial of the application for a conditional use permit or other discretionary approval is both unreasonable and not consistent with local needs, the committee shall reverse the decision of the affected local agency and remand the matter with instructions that the application be approved consistent with the decision of the committee.(2) (A) If the affected local agency approved the application with conditions, whether the conditions imposed on the housing development project render it infeasible and are consistent with local needs.(B) If the committee determines that one or more of the conditions imposed on the housing development project render it infeasible and that those conditions are not consistent with local needs, the committee shall modify the permit so that it no longer renders infeasible the development of the housing development project and the conditions are consistent with local needs. The committee shall remand the matter to the affected local agency with instructions to issue the permit or other approval as modified by the committee.(3) The committee shall affirm the decision of the affected local agency if it finds that the decision is consistent with local needs.(f) Once the committee has issued its final decision, the affected local agency shall not have any discretion to modify the permit or other approval other than as directed in the decision of the committee. Implementation of the final decision of the committee shall be deemed a ministerial duty of the affected local agency.(g) A decision of the committee modifying or reversing a decision of the affected local agency may be reviewed in the superior court for the county in which the housing development project is proposed to be constructed. (h) The Legislature finds and declares that encouraging and streamlining the development of housing throughout the state 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.

65914.2. (a) For purposes of this section:(1) Affected local agency means a city, including a charter city, or county with jurisdiction over a proposed housing development project for which an appeal is sought pursuant to this section.(2) Applicant means a person seeking a conditional use or other discretionary permit from an affected local agency in order construct a housing development project.(3) Consistent with local needs means reasonable with respect to the determination of regional housing need, as determined pursuant to Section 65584, for the number of very low, low-, and moderate-income households within an affected local agency and the health and safety of the residents of the affected local agency.(4) Department means the Department of Housing and Community Development.(5) Housing appeals committee or committee means the committee established within the department pursuant to subdivision (b) for the purpose of hearing appeals from a decision of an affected local agency with respect to an application for a conditional use or other discretionary permit for a housing development project.(6) Housing development project means a use consisting of any of the following:(A) One or more residential dwelling 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. (7) Infeasible means that it is impossible to build or operate a housing development project without financial loss without substantially changing the cost of the housing or unit sizes. (b) (1) The department shall establish a housing appeals committee. The Director of Housing and Community Development shall annually appoint the members of the committee and designate a chair.(2) Membership on the committee shall be as follows:(A) Three representatives of the department.(B) Four public members who shall be appointed so as to promote geographic diversity and balance urban and rural interests and who shall each be representative of, or have experience in, one or more of the following areas:(i) Private sector lending institutions.(ii) For-profit housing development.(iii) Nonprofit housing development.(iv) Public sector housing development.(v) Local or regional planning.(vi) Architecture.(vii) Local community development.(viii) Local government.(ix) Housing consultation.(x) Academia as related to housing issues.(3) Members of the committee shall serve without compensation, but shall be reimbursed for all actual and necessary expenses incurred in the performance of their duties.(4) The committee shall hear appeals pursuant to this section at a public hearing held at least quarterly. The committee shall conduct the public hearing in accordance with any applicable rules and regulations adopted by the department.(5) The department shall provide space and clerical or other assistance that the committee may require.(c) (1) Subject to paragraph (3), if a city or county denies an application for a conditional use permit or other discretionary approval for a housing development project, or grants that permit or approval with conditions in a manner rendering it infeasible for the development of the housing development project, the applicant may, within 20 days of the final decision of the affected local agency, appeal the decision to the committee by submitting a statement of appeal, which shall state the grounds for the appeal and the relief sought, to the committee.(2) The committee shall transmit a notice of the appeal to any affected local agency. No later than 10 days following receipt of the notice of appeal, the affected local agency shall transmit a copy of the final decision described in paragraph (1) to the committee for review.(3) The committee shall not have jurisdiction over the appeal if the affected local agency has permitted construction of at least ____ percent of its allocation of units for very low income households, ____ percent of its allocation of units for low-income households, and ____ percent of its allocation of units for moderate-income households in the previous regional housing needs allocation plan cycle developed pursuant to Section 65584.(d) The committee shall conduct a hearing on the appeal within 30 days of receipt of the statement of appeal. The committee shall, by majority vote and consistent with subdivision (e), affirm, modify, or reverse the decision of the city or county within 30 days after the conclusion of the hearing.(e) The review of the committee shall be limited as follows:(1) (A) If the affected local agency denied the application for a conditional use permit or other discretionary approval, whether that denial was reasonable and consistent with local needs.(B) If the committee determines that a denial of the application for a conditional use permit or other discretionary approval is both unreasonable and not consistent with local needs, the committee shall reverse the decision of the affected local agency and remand the matter with instructions that the application be approved consistent with the decision of the committee.(2) (A) If the affected local agency approved the application with conditions, whether the conditions imposed on the housing development project render it infeasible and are consistent with local needs.(B) If the committee determines that one or more of the conditions imposed on the housing development project render it infeasible and that those conditions are not consistent with local needs, the committee shall modify the permit so that it no longer renders infeasible the development of the housing development project and the conditions are consistent with local needs. The committee shall remand the matter to the affected local agency with instructions to issue the permit or other approval as modified by the committee.(3) The committee shall affirm the decision of the affected local agency if it finds that the decision is consistent with local needs.(f) Once the committee has issued its final decision, the affected local agency shall not have any discretion to modify the permit or other approval other than as directed in the decision of the committee. Implementation of the final decision of the committee shall be deemed a ministerial duty of the affected local agency.(g) A decision of the committee modifying or reversing a decision of the affected local agency may be reviewed in the superior court for the county in which the housing development project is proposed to be constructed. (h) The Legislature finds and declares that encouraging and streamlining the development of housing throughout the state 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.



65914.2. (a) For purposes of this section:

(1) Affected local agency means a city, including a charter city, or county with jurisdiction over a proposed housing development project for which an appeal is sought pursuant to this section.

(2) Applicant means a person seeking a conditional use or other discretionary permit from an affected local agency in order construct a housing development project.

(3) Consistent with local needs means reasonable with respect to the determination of regional housing need, as determined pursuant to Section 65584, for the number of very low, low-, and moderate-income households within an affected local agency and the health and safety of the residents of the affected local agency.

(4) Department means the Department of Housing and Community Development.

(5) Housing appeals committee or committee means the committee established within the department pursuant to subdivision (b) for the purpose of hearing appeals from a decision of an affected local agency with respect to an application for a conditional use or other discretionary permit for a housing development project.

(6) Housing development project means a use consisting of any of the following:

(A) One or more residential dwelling 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. 

(7) Infeasible means that it is impossible to build or operate a housing development project without financial loss without substantially changing the cost of the housing or unit sizes. 

(b) (1) The department shall establish a housing appeals committee. The Director of Housing and Community Development shall annually appoint the members of the committee and designate a chair.

(2) Membership on the committee shall be as follows:

(A) Three representatives of the department.

(B) Four public members who shall be appointed so as to promote geographic diversity and balance urban and rural interests and who shall each be representative of, or have experience in, one or more of the following areas:

(i) Private sector lending institutions.

(ii) For-profit housing development.

(iii) Nonprofit housing development.

(iv) Public sector housing development.

(v) Local or regional planning.

(vi) Architecture.

(vii) Local community development.

(viii) Local government.

(ix) Housing consultation.

(x) Academia as related to housing issues.

(3) Members of the committee shall serve without compensation, but shall be reimbursed for all actual and necessary expenses incurred in the performance of their duties.

(4) The committee shall hear appeals pursuant to this section at a public hearing held at least quarterly. The committee shall conduct the public hearing in accordance with any applicable rules and regulations adopted by the department.

(5) The department shall provide space and clerical or other assistance that the committee may require.

(c) (1) Subject to paragraph (3), if a city or county denies an application for a conditional use permit or other discretionary approval for a housing development project, or grants that permit or approval with conditions in a manner rendering it infeasible for the development of the housing development project, the applicant may, within 20 days of the final decision of the affected local agency, appeal the decision to the committee by submitting a statement of appeal, which shall state the grounds for the appeal and the relief sought, to the committee.

(2) The committee shall transmit a notice of the appeal to any affected local agency. No later than 10 days following receipt of the notice of appeal, the affected local agency shall transmit a copy of the final decision described in paragraph (1) to the committee for review.

(3) The committee shall not have jurisdiction over the appeal if the affected local agency has permitted construction of at least ____ percent of its allocation of units for very low income households, ____ percent of its allocation of units for low-income households, and ____ percent of its allocation of units for moderate-income households in the previous regional housing needs allocation plan cycle developed pursuant to Section 65584.

(d) The committee shall conduct a hearing on the appeal within 30 days of receipt of the statement of appeal. The committee shall, by majority vote and consistent with subdivision (e), affirm, modify, or reverse the decision of the city or county within 30 days after the conclusion of the hearing.

(e) The review of the committee shall be limited as follows:

(1) (A) If the affected local agency denied the application for a conditional use permit or other discretionary approval, whether that denial was reasonable and consistent with local needs.

(B) If the committee determines that a denial of the application for a conditional use permit or other discretionary approval is both unreasonable and not consistent with local needs, the committee shall reverse the decision of the affected local agency and remand the matter with instructions that the application be approved consistent with the decision of the committee.

(2) (A) If the affected local agency approved the application with conditions, whether the conditions imposed on the housing development project render it infeasible and are consistent with local needs.

(B) If the committee determines that one or more of the conditions imposed on the housing development project render it infeasible and that those conditions are not consistent with local needs, the committee shall modify the permit so that it no longer renders infeasible the development of the housing development project and the conditions are consistent with local needs. The committee shall remand the matter to the affected local agency with instructions to issue the permit or other approval as modified by the committee.

(3) The committee shall affirm the decision of the affected local agency if it finds that the decision is consistent with local needs.

(f) Once the committee has issued its final decision, the affected local agency shall not have any discretion to modify the permit or other approval other than as directed in the decision of the committee. Implementation of the final decision of the committee shall be deemed a ministerial duty of the affected local agency.

(g) A decision of the committee modifying or reversing a decision of the affected local agency may be reviewed in the superior court for the county in which the housing development project is proposed to be constructed. 

(h) The Legislature finds and declares that encouraging and streamlining the development of housing throughout the state 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. Section 50455.5 is added to the Health and Safety Code, to read:50455.5. (a) No later than January 31, 2022, and annually thereafter, the department shall prepare and submit to the Legislature an addendum to the most recent revision of the California Statewide Housing Plan pursuant to Section 50452 that includes updated information and identifies all of the following:(1) All financial resources available to each housing agency for the development of affordable housing.(2) The number of affordable units that the resources identified in paragraph (1) are expected to build annually compared to the annual units needed, including units for individuals experiencing homelessness, individuals with special needs, seniors, and farmworkers.(3) The amount of financial resources the state will need to obtain from other sources, including, but not limited to, federal, local, and private sources, to meet the remaining gap in needed units, if any, identified pursuant to paragraph (2).(4) Where the states financial resources will have the most impact based on geographic distribution, population, and indicators of need.(5) Outcomes to measure how well the state is maximizing the impact of its financial resources to meet the annual units needed, including measuring whether the state has reduced cost burden and overcrowding, and increased housing availability.(b) The annual addendum to the California Statewide Housing Plan submitted pursuant to this section shall be submitted in accordance with Section 9795 of the Government Code.

SEC. 2. Section 50455.5 is added to the Health and Safety Code, to read:

### SEC. 2.

50455.5. (a) No later than January 31, 2022, and annually thereafter, the department shall prepare and submit to the Legislature an addendum to the most recent revision of the California Statewide Housing Plan pursuant to Section 50452 that includes updated information and identifies all of the following:(1) All financial resources available to each housing agency for the development of affordable housing.(2) The number of affordable units that the resources identified in paragraph (1) are expected to build annually compared to the annual units needed, including units for individuals experiencing homelessness, individuals with special needs, seniors, and farmworkers.(3) The amount of financial resources the state will need to obtain from other sources, including, but not limited to, federal, local, and private sources, to meet the remaining gap in needed units, if any, identified pursuant to paragraph (2).(4) Where the states financial resources will have the most impact based on geographic distribution, population, and indicators of need.(5) Outcomes to measure how well the state is maximizing the impact of its financial resources to meet the annual units needed, including measuring whether the state has reduced cost burden and overcrowding, and increased housing availability.(b) The annual addendum to the California Statewide Housing Plan submitted pursuant to this section shall be submitted in accordance with Section 9795 of the Government Code.

50455.5. (a) No later than January 31, 2022, and annually thereafter, the department shall prepare and submit to the Legislature an addendum to the most recent revision of the California Statewide Housing Plan pursuant to Section 50452 that includes updated information and identifies all of the following:(1) All financial resources available to each housing agency for the development of affordable housing.(2) The number of affordable units that the resources identified in paragraph (1) are expected to build annually compared to the annual units needed, including units for individuals experiencing homelessness, individuals with special needs, seniors, and farmworkers.(3) The amount of financial resources the state will need to obtain from other sources, including, but not limited to, federal, local, and private sources, to meet the remaining gap in needed units, if any, identified pursuant to paragraph (2).(4) Where the states financial resources will have the most impact based on geographic distribution, population, and indicators of need.(5) Outcomes to measure how well the state is maximizing the impact of its financial resources to meet the annual units needed, including measuring whether the state has reduced cost burden and overcrowding, and increased housing availability.(b) The annual addendum to the California Statewide Housing Plan submitted pursuant to this section shall be submitted in accordance with Section 9795 of the Government Code.

50455.5. (a) No later than January 31, 2022, and annually thereafter, the department shall prepare and submit to the Legislature an addendum to the most recent revision of the California Statewide Housing Plan pursuant to Section 50452 that includes updated information and identifies all of the following:(1) All financial resources available to each housing agency for the development of affordable housing.(2) The number of affordable units that the resources identified in paragraph (1) are expected to build annually compared to the annual units needed, including units for individuals experiencing homelessness, individuals with special needs, seniors, and farmworkers.(3) The amount of financial resources the state will need to obtain from other sources, including, but not limited to, federal, local, and private sources, to meet the remaining gap in needed units, if any, identified pursuant to paragraph (2).(4) Where the states financial resources will have the most impact based on geographic distribution, population, and indicators of need.(5) Outcomes to measure how well the state is maximizing the impact of its financial resources to meet the annual units needed, including measuring whether the state has reduced cost burden and overcrowding, and increased housing availability.(b) The annual addendum to the California Statewide Housing Plan submitted pursuant to this section shall be submitted in accordance with Section 9795 of the Government Code.



50455.5. (a) No later than January 31, 2022, and annually thereafter, the department shall prepare and submit to the Legislature an addendum to the most recent revision of the California Statewide Housing Plan pursuant to Section 50452 that includes updated information and identifies all of the following:

(1) All financial resources available to each housing agency for the development of affordable housing.

(2) The number of affordable units that the resources identified in paragraph (1) are expected to build annually compared to the annual units needed, including units for individuals experiencing homelessness, individuals with special needs, seniors, and farmworkers.

(3) The amount of financial resources the state will need to obtain from other sources, including, but not limited to, federal, local, and private sources, to meet the remaining gap in needed units, if any, identified pursuant to paragraph (2).

(4) Where the states financial resources will have the most impact based on geographic distribution, population, and indicators of need.

(5) Outcomes to measure how well the state is maximizing the impact of its financial resources to meet the annual units needed, including measuring whether the state has reduced cost burden and overcrowding, and increased housing availability.

(b) The annual addendum to the California Statewide Housing Plan submitted pursuant to this section shall be submitted in accordance with Section 9795 of the Government Code.

SEC. 3. Section 50469 is added to the Health and Safety Code, to read:50469. (a) The department shall establish a workgroup that includes representatives from the department, the California Tax Credit Allocation Committee, the California Housing Finance Agency, and relevant industries, including, but not limited to, private lenders and developers.(b) The purpose of the workgroup established pursuant to this section shall be to ensure that the state awards financial resources for housing in a more timely and efficient manner. In carrying out this purpose, the workgroup shall do all of the following:(1) To the extent feasible, and consistent with applicable law, develop recommendations to ensure that program requirements for determining eligibility for awarding financial resources to multifamily housing projects are consistent.(2) Recommend regulatory changes to align application deadlines for multifamily housing programs.(3) Design requirements and develop recommended deadlines to best accomplish the goals outlined in the most recent revision of the California Statewide Housing Plan pursuant to Section 50452, along with any addendum prepared pursuant to Section 50455.5, with the intent of maximizing the number of affordable housing units built and removing administrative barriers.(4) Recommending regulatory changes that the department, the California Tax Credit Allocation Committee, and the California Housing Finance Agency may take consistent with applicable law in order to incorporate any new program requirements and deadlines developed by the workgroup pursuant to this section.

SEC. 3. Section 50469 is added to the Health and Safety Code, to read:

### SEC. 3.

50469. (a) The department shall establish a workgroup that includes representatives from the department, the California Tax Credit Allocation Committee, the California Housing Finance Agency, and relevant industries, including, but not limited to, private lenders and developers.(b) The purpose of the workgroup established pursuant to this section shall be to ensure that the state awards financial resources for housing in a more timely and efficient manner. In carrying out this purpose, the workgroup shall do all of the following:(1) To the extent feasible, and consistent with applicable law, develop recommendations to ensure that program requirements for determining eligibility for awarding financial resources to multifamily housing projects are consistent.(2) Recommend regulatory changes to align application deadlines for multifamily housing programs.(3) Design requirements and develop recommended deadlines to best accomplish the goals outlined in the most recent revision of the California Statewide Housing Plan pursuant to Section 50452, along with any addendum prepared pursuant to Section 50455.5, with the intent of maximizing the number of affordable housing units built and removing administrative barriers.(4) Recommending regulatory changes that the department, the California Tax Credit Allocation Committee, and the California Housing Finance Agency may take consistent with applicable law in order to incorporate any new program requirements and deadlines developed by the workgroup pursuant to this section.

50469. (a) The department shall establish a workgroup that includes representatives from the department, the California Tax Credit Allocation Committee, the California Housing Finance Agency, and relevant industries, including, but not limited to, private lenders and developers.(b) The purpose of the workgroup established pursuant to this section shall be to ensure that the state awards financial resources for housing in a more timely and efficient manner. In carrying out this purpose, the workgroup shall do all of the following:(1) To the extent feasible, and consistent with applicable law, develop recommendations to ensure that program requirements for determining eligibility for awarding financial resources to multifamily housing projects are consistent.(2) Recommend regulatory changes to align application deadlines for multifamily housing programs.(3) Design requirements and develop recommended deadlines to best accomplish the goals outlined in the most recent revision of the California Statewide Housing Plan pursuant to Section 50452, along with any addendum prepared pursuant to Section 50455.5, with the intent of maximizing the number of affordable housing units built and removing administrative barriers.(4) Recommending regulatory changes that the department, the California Tax Credit Allocation Committee, and the California Housing Finance Agency may take consistent with applicable law in order to incorporate any new program requirements and deadlines developed by the workgroup pursuant to this section.

50469. (a) The department shall establish a workgroup that includes representatives from the department, the California Tax Credit Allocation Committee, the California Housing Finance Agency, and relevant industries, including, but not limited to, private lenders and developers.(b) The purpose of the workgroup established pursuant to this section shall be to ensure that the state awards financial resources for housing in a more timely and efficient manner. In carrying out this purpose, the workgroup shall do all of the following:(1) To the extent feasible, and consistent with applicable law, develop recommendations to ensure that program requirements for determining eligibility for awarding financial resources to multifamily housing projects are consistent.(2) Recommend regulatory changes to align application deadlines for multifamily housing programs.(3) Design requirements and develop recommended deadlines to best accomplish the goals outlined in the most recent revision of the California Statewide Housing Plan pursuant to Section 50452, along with any addendum prepared pursuant to Section 50455.5, with the intent of maximizing the number of affordable housing units built and removing administrative barriers.(4) Recommending regulatory changes that the department, the California Tax Credit Allocation Committee, and the California Housing Finance Agency may take consistent with applicable law in order to incorporate any new program requirements and deadlines developed by the workgroup pursuant to this section.



50469. (a) The department shall establish a workgroup that includes representatives from the department, the California Tax Credit Allocation Committee, the California Housing Finance Agency, and relevant industries, including, but not limited to, private lenders and developers.

(b) The purpose of the workgroup established pursuant to this section shall be to ensure that the state awards financial resources for housing in a more timely and efficient manner. In carrying out this purpose, the workgroup shall do all of the following:

(1) To the extent feasible, and consistent with applicable law, develop recommendations to ensure that program requirements for determining eligibility for awarding financial resources to multifamily housing projects are consistent.

(2) Recommend regulatory changes to align application deadlines for multifamily housing programs.

(3) Design requirements and develop recommended deadlines to best accomplish the goals outlined in the most recent revision of the California Statewide Housing Plan pursuant to Section 50452, along with any addendum prepared pursuant to Section 50455.5, with the intent of maximizing the number of affordable housing units built and removing administrative barriers.

(4) Recommending regulatory changes that the department, the California Tax Credit Allocation Committee, and the California Housing Finance Agency may take consistent with applicable law in order to incorporate any new program requirements and deadlines developed by the workgroup pursuant to this section.

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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.

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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.

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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.

### SEC. 4.



It is the intent of the Legislature to enact legislation that would implement recommendations made in the California State Auditors Report 2020-108, issued on November 17, 2020, relating to affordable housing.