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ATT 2 - SB 79 - OPPOSE

Atherton City Council
May 21, 2025

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ATT 2 - SB 79 - OPPOSE
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May 21, 2025
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Atherton City Council
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AMENDED IN SENATE APRIL 23, 2025
AMENDED IN SENATE APRIL 9, 2025
AMENDED IN SENATE MARCH 5, 2025
SENATE BILL No. 79
Introduced by Senator Wiener
January 15, 2025
An act to amend Section 54221 of, and to add Chapter 4.1.5 (commencing with Section 65912.155) to Division 1 of Title 7 of, the Government Code, and to add Section 21080.26.5 to the Public Resources Code, relating to land use.
legislative counsel’s digest
SB 79, as amended, Wiener. Local government land: public transit use: housing development: transit-oriented development. (1)  Existing law prescribes requirements for the disposal of surplus land by a local agency. Existing law defines “surplus land” for these purposes to mean land owned in fee simple by any local agency for which the local agency’s governing body takes formal action declaring that the land is surplus and is not necessary for the agency’s use. Existing law defines “agency’s use” for these purposes to include land that is being used for agency work or operations, as provided. Existing law exempts from this definition of “agency’s use” certain commercial or industrial uses, except that in the case of a local agency that is a district, except a local agency whose primary purpose or mission is to supply the public with a transportation system, “agency’s use” may include commercial or industrial uses or activities, as specified.

This bill would additionally include land leased to support public transit operations in the definition of “agency’s use,” as described above.

96 The bill would also revise the definition of “agency’s use” with respect to commercial or industrial uses to instead provide that a district or a public transit operator may use land for commercial or industrial uses or activities, as described above.
(2)  Existing law, the Planning and Zoning Law, requires each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that contains certain mandatory elements, including a housing element. Existing law requires that the housing element include, among other things, an assessment of housing needs and an inventory of resources and constraints that are relevant to the meeting of these needs, including an inventory of land suitable for residential development, as provided. Existing law, for the 4th and subsequent revisions of the housing element, requires the Department of Housing and Community Development to determine the existing and projected need for housing for each region, as specified, and requires the appropriate council of local governments, or the department for cities and counties without a council of governments, to adopt a final regional housing need plan that allocates a share of the regional housing need to each locality in the region.

Existing law, the Housing Accountability Act, among other things, requires a local agency that proposes to disapprove a housing development project, as defined, or to impose a condition that the project be developed at a lower density to base its decision on written findings supported by a preponderance of the evidence that specified conditions exist if that project complies with applicable, objective general plan, zoning, and subdivision standards and criteria in effect at the time that the application was deemed complete. The act authorizes the applicant, a person who would be eligible to apply for residency in the housing development project or emergency shelter, or a housing organization to bring an action to enforce the act’s provisions, as provided, and provides for penalties if the court finds that the local agency is in violation of specified provisions of the act.

This bill would require that a housing development project, as defined, proposed within a specified distance of a transit-oriented development (TOD) stop, as defined, be an allowed use on any site zoned for residential, mixed, commercial, or light industrial development, if the development complies with applicable requirements, as specified. The bill would establish requirements concerning height limits, density, and floor area ratio in accordance with a development’s proximity to 96 SB 79 — 2 —
specified tiers of TOD stops, as provided. The bill would provide that, for the purposes of the Housing Accountability Act, a proposed development consistent with the applicable standards of these provisions shall be deemed consistent, compliant, and in conformity with prescribed requirements. The bill would provide that a local government that denies a project meeting the requirements of these provisions located in a high-resource area, as defined, would be presumed in violation of the Housing Accountability Act, as specified, and immediately liable for penalties, as provided. The bill would specify that a development proposed pursuant to these provisions is eligible for streamlined, ministerial approval pursuant to specified law, except that the bill would exempt a project under these provisions from specified requirements, and would specify that the project is required to comply with certain affordability requirements, under that law.

This bill would require a proposed development to comply with specified requirements under existing law relating to the demolition of existing residential units. The bill would also authorize a transit agency to adopt objective standards for both residential and commercial development proposed pursuant to these provisions if the development would be constructed on land owned by the transit agency or on which the transit agency has a permanent operating easement, provided that the objective standards allow for the same or greater development intensity as allowed by local standards or applicable state law.

This bill would require the Department of Housing and Community Development to oversee compliance with the bill’s provisions, including, but not limited to, promulgating specified standards relating to the inventory of land included within a county’s or city’s housing element.

The bill would permit a local government to adopt an ordinance to implement these provisions, as provided. The bill would require the local government to submit a copy of this ordinance to the department within 60 days of adoption and require the department to review the ordinance for compliance, as specified. If the department finds an ordinance is out of compliance, and the local government does not take specified steps to address compliance, the bill would require the department to notify the local government in writing and authorize the department to notify the Attorney General, as provided.

This bill would define various terms for its purposes and make related findings and declarations.
96 — 3 — SB 79
This 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. (3)  Existing law, the California Environmental Quality Act (CEQA), requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA, until January 1, 2030, exempts from its requirements certain transportation-related projects if specified requirements are met, as provided. CEQA includes within these exempt transportation-related projects a public project for the institution or increase of bus rapid transit, bus, or light rail service, or other passenger rail service, that will be exclusively used by low-emission or zero-emission vehicles, on existing public rights-of-way or existing highway rights-of-way.

This bill would exempt from CEQA a public or private residential, commercial, or mixed-used project that, at the time the project application is filed, is located entirely or principally on land owned by a public transit agency, or fully or partially encumbered by an existing operating easement in favor of a public transit agency, and meets specified requirements. The bill would provide that, for a project that requires the construction of new passenger rail storage and maintenance facilities at a publicly or privately owned offsite location distinct from the principal project site, that project would be considered a wholly separate project from the project described in these provisions and shall not be exempt from CEQA.
(4)  By increasing the duties of local officials, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state.

Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.
96 SB 79 — 4 —
Vote: majority. Appropriation: no. Fiscal committee: yes.

State-mandated local program: yes.

The people of the State of California do enact as follows:
line 1 SECTION 1. Section 54221 of the Government Code is line 2 amended to read:
line 3 54221. As used in this article, the following definitions shall line 4 apply:
line 5 (a)  (1)  “Local agency” means every city, whether organized line 6 under general law or by charter, county, city and county, district, line 7 including school, sewer, water, utility, and local and regional park line 8 districts of any kind or class, joint powers authority, successor line 9 agency to a former redevelopment agency, housing authority, or line 10 other political subdivision of this state and any instrumentality line 11 thereof that is empowered to acquire and hold real property. line 12 (2)  The Legislature finds and declares that the term “district” line 13 as used in this article includes all districts within the state, line 14 including, but not limited to, all special districts, sewer, water, line 15 utility, and local and regional park districts, and any other political line 16 subdivision of this state that is a district, and therefore the changes line 17 in paragraph (1) made by the act adding this paragraph that specify line 18 that the provisions of this article apply to all districts, including line 19 school, sewer, water, utility, and local and regional park districts line 20 of any kind or class, are declaratory of, and not a change in, line 21 existing law.
line 22 (b)  (1)  “Surplus land” means land owned in fee simple by any line 23 local agency for which the local agency’s governing body takes line 24 formal action in a regular public meeting declaring that the land line 25 is surplus and is not necessary for the agency’s use. Land shall be line 26 declared either “surplus land” or “exempt surplus land,” as line 27 supported by written findings, before a local agency may take any line 28 action to dispose of it consistent with an agency’s policies or line 29 procedures. A local agency, on an annual basis, may declare line 30 multiple parcels as “surplus land” or “exempt surplus land.” line 31 (2)  “Surplus land” includes land held in the Community line 32 Redevelopment Property Trust Fund pursuant to Section 34191.4 line 33 of the Health and Safety Code and land that has been designated line 34 in the long-range property management plan approved by the line 35 Department of Finance pursuant to Section 34191.5 of the Health 96 — 5 — SB 79
line 1 and Safety Code, either for sale or for future development, but line 2 does not include any specific disposal of land to an identified entity line 3 described in the plan.
line 4 (3)  Nothing in this article prevents a local agency from obtaining line 5 fair market value for the disposition of surplus land consistent with line 6 Section 54226.
line 7 (4)  Notwithstanding paragraph (1), a local agency is not required line 8 to make a declaration at a public meeting for land that is “exempt line 9 surplus land” pursuant to subparagraph (A), (B), (E), (K), (L), or line 10 (Q) of paragraph (1) of subdivision (f) if the local agency identifies line 11 the land in a notice that is published and available for public line 12 comment, including notice to the entities identified in subdivision line 13 (a) of Section 54222, at least 30 days before the exemption takes line 14 effect.
line 15 (c)  (1)  Except as provided in paragraph (2), “agency’s use” line 16 shall include, but not be limited to, land that is being used, or is line 17 planned to be used pursuant to a written plan adopted by the local line 18 agency’s governing board, for agency work or operations, line 19 including, but not limited to, utility sites, property owned by a port line 20 that is used to support logistics uses, watershed property, land line 21 being used for conservation purposes, land for demonstration, line 22 exhibition, or educational purposes related to greenhouse gas line 23 emissions, sites for broadband equipment or wireless facilities, line 24 land leased to support public transit operations, and buffer sites line 25 near sensitive governmental uses, including, but not limited to, line 26 waste disposal sites, and wastewater treatment plants. “Agency’s line 27 use” by a local agency that is a district shall also include land line 28 disposed for uses described in subparagraph (B) of paragraph (2). line 29 (2)  (A)  “Agency’s use” shall not include commercial or line 30 industrial uses or activities, including nongovernmental retail, line 31 entertainment, or office development. Property disposed of for the line 32 sole purpose of investment or generation of revenue shall not be line 33 considered necessary for the agency’s use.
line 34 (B)  In the case of a local agency that is a district or a public line 35 transit operator, “agency’s use” may include commercial or line 36 industrial uses or activities, including nongovernmental retail, line 37 entertainment, or office development or be for the sole purpose of line 38 investment or generation of revenue if the agency’s governing line 39 body takes action in a public meeting declaring that the use of the line 40 site will do one of the following:
96 SB 79 — 6 —
line 1 (i)  Directly further the express purpose of agency work or line 2 operations.
line 3 (ii)  Be expressly authorized by a statute governing the local line 4 agency, provided the district complies with Section 54233.5 if line 5 applicable.
line 6 (d)  (1)  “Dispose” means either of the following:
line 7 (A)  The sale of the surplus land.
line 8 (B)  The entering of a lease for surplus land, which is for a term line 9 longer than 15 years, inclusive of any extension or renewal options line 10 included in the terms of the initial lease, entered into on or after line 11 January 1, 2024.
line 12 (2)  “Dispose” shall not mean either of the following:
line 13 (A)  The entering of a lease for surplus land, which is for a term line 14 of 15 years or less, inclusive of any extension or renewal options line 15 included in the terms of the initial lease.
line 16 (B)  The entering of a lease for surplus land on which no line 17 development or demolition will occur, regardless of the term of line 18 the lease.
line 19 (e)  “Open-space purposes” means the use of land for public line 20 recreation, enjoyment of scenic beauty, or conservation or use of line 21 natural resources.
line 22 (f)  (1)  Except as provided in paragraph (2), “exempt surplus line 23 land” means any of the following:
line 24 (A)  Surplus land that is transferred pursuant to Section 25539.4 line 25 or 37364.
line 26 (B)  Surplus land that is less than one-half acre in area and is line 27 not contiguous to land owned by a state or local agency that is line 28 used for open-space or low- and moderate-income housing line 29 purposes.
line 30 (C)  Surplus land that a local agency is exchanging for another line 31 property necessary for the agency’s use. “Property” may include line 32 easements necessary for the agency’s use.
line 33 (D)  Surplus land that a local agency is transferring to another line 34 local, state, or federal agency, or to a third-party intermediary for line 35 future dedication for the receiving agency’s use, or to a federally line 36 recognized California Indian tribe. If the surplus land is transferred line 37 to a third-party intermediary, the receiving agency’s use must be line 38 contained in a legally binding agreement at the time of transfer to line 39 the third-party intermediary.
96 — 7 — SB 79
line 1 (E)  Surplus land that is a former street, right-of-way, or line 2 easement, and is conveyed to an owner of an adjacent property. line 3 (F)  (i)  Surplus land that is to be developed for a housing line 4 development, which may have ancillary commercial ground floor line 5 uses, that restricts 100 percent of the residential units to persons line 6 and families of low or moderate income, with at least 75 percent line 7 of the residential units restricted to lower income households, as line 8 defined in Section 50079.5 of the Health and Safety Code, with line 9 an affordable sales price or an affordable rent, as defined in Section line 10 50052.5 or 50053 of the Health and Safety Code, for 55 years for line 11 rental housing, 45 years for ownership housing, and 50 years for line 12 rental or ownership housing located on tribal trust lands, unless a line 13 local ordinance or a federal, state, or local grant, tax credit, or other line 14 project financing requires a longer period of affordability, and in line 15 no event shall the maximum affordable sales price or rent level be line 16 higher than 20 percent below the median market rents or sales line 17 prices for the neighborhood in which the site is located. line 18 (ii)  The requirements of clause (i) shall be contained in a line 19 covenant or restriction recorded against the surplus land at the time line 20 of sale that shall run with the land and be enforceable against any line 21 owner who violates the covenant or restriction and each successor line 22 in interest who continues the violation.
line 23 (G)  (i)  Surplus land that is subject to a local agency’s open, line 24 competitive solicitation or that is put to open, competitive bid by line 25 a local agency, provided that all entities identified in subdivision line 26 (a) of Section 54222 will be invited to participate in the process, line 27 for a housing or a mixed-use development that is more than one line 28 acre and less than 10 acres in area, consisting of either a single line 29 parcel, or two or more adjacent or non-adjacent parcels combined, line 30 that includes not less than 300 residential units, and that restricts line 31 at least 25 percent of the residential units to lower income line 32 households, as defined in Section 50079.5 of the Health and Safety line 33 Code, with an affordable sales price or an affordable rent, as line 34 defined in Sections 50052.5 and 50053 of the Health and Safety line 35 Code, for 55 years for rental housing, 45 years for ownership line 36 housing, and 50 years for rental or ownership housing located on line 37 tribal trust lands, unless a local ordinance or a federal, state, or line 38 local grant, tax credit, or other project financing requires a longer line 39 period of affordability.
96 SB 79 — 8 —
line 1 (ii)  The requirements of clause (i) shall be contained in a line 2 covenant or restriction recorded against the surplus land at the time line 3 of sale that shall run with the land and be enforceable against any line 4 owner who violates the covenant or restriction and each successor line 5 in interest who continues the violation.
line 6 (H)  (i)  Surplus land totaling 10 or more acres, consisting of line 7 either a single parcel, or two or more adjacent or non-adjacent line 8 parcels combined for disposition to one or more buyers pursuant line 9 to a plan or ordinance adopted by the legislative body of the local line 10 agency, or a state statute. That surplus land shall be subject to a line 11 local agency’s open, competitive solicitation process or put out to line 12 open, competitive bid by a local agency, provided that all entities line 13 identified in subdivision (a) of Section 54222 will be invited to line 14 participate in the process for a housing or mixed-use development. line 15 (ii)  The aggregate development shall include the greater of the line 16 following:
line 17 (I)  Not less than 300 residential units.
line 18 (II)  A number of residential units equal to 10 times the number line 19 of acres of the surplus land or 10,000 residential units, whichever line 20 is less.
line 21 (iii)  At least 25 percent of the residential units shall be restricted line 22 to lower income households, as defined in Section 50079.5 of the line 23 Health and Safety Code, with an affordable sales price or an line 24 affordable rent pursuant to Sections 50052.5 and 50053 of the line 25 Health and Safety Code, for a minimum of 55 years for rental line 26 housing, 45 years for ownership housing, and 50 years for rental line 27 or ownership housing located on tribal trust lands, unless a local line 28 ordinance or a federal, state, or local grant, tax credit, or other line 29 project financing requires a longer period of affordability. line 30 (iv)  If nonresidential development is included in the line 31 development pursuant to this subparagraph, at least 25 percent of line 32 the total planned units affordable to lower income households shall line 33 be made available for lease or sale and permitted for use and line 34 occupancy before or at the same time with every 25 percent of line 35 nonresidential development made available for lease or sale and line 36 permitted for use and occupancy.
line 37 (v)  A violation of this subparagraph is subject to the penalties line 38 described in Section 54230.5. Those penalties are in addition to line 39 any remedy a court may order for violation of this subparagraph. line 40 A local agency shall only dispose of land pursuant to this 96 — 9 — SB 79
line 1 subparagraph through a disposition and development agreement line 2 that includes an indemnification clause that provides that if an line 3 action occurs after disposition violates this subparagraph, the line 4 person or entity that acquired the property shall be liable for the line 5 penalties.
line 6 (vi)  The requirements of clauses (i) to (v), inclusive, shall be line 7 contained in a covenant or restriction recorded against the surplus line 8 land at the time of sale that shall run with the land and be line 9 enforceable against any owner who violates the covenant or line 10 restriction and each successor in interest who continues the line 11 violation.
line 12 (I)  A mixed-use development, which may include more than line 13 one publicly owned parcel, that meets all of the following line 14 conditions:
line 15 (i)  The development restricts at least 25 percent of the residential line 16 units to lower income households, as defined in Section 50079.5 line 17 of the Health and Safety Code, with an affordable sales price or line 18 an affordable rent, as defined in Sections 50052.5 and 50053 of line 19 the Health and Safety Code, for 55 years for rental housing, 45 line 20 years for ownership housing, and 50 years for rental or ownership line 21 housing located on tribal trust lands, unless a local ordinance or a line 22 federal, state, or local grant, tax credit, or other project financing line 23 requires a longer period of affordability.
line 24 (ii)  At least 50 percent of the square footage of the new line 25 construction associated with the development is designated for line 26 residential use.
line 27 (iii)  The development is not located in an urbanized area, as line 28 defined in Section 21094.5 of the Public Resources Code. line 29 (J)  (i)  Surplus land that is subject to a valid legal restriction line 30 that is not imposed by the local agency and that makes housing line 31 prohibited, unless there is a feasible method to satisfactorily line 32 mitigate or avoid the prohibition on the site. A declaration of line 33 exemption pursuant to this subparagraph shall be supported by line 34 documentary evidence establishing the valid legal restriction. For line 35 the purposes of this section, “documentary evidence” includes, line 36 but is not limited to, a contract, agreement, deed restriction, statute, line 37 regulation, or other writing that documents the valid legal line 38 restriction.
line 39 (ii)  Valid legal restrictions include, but are not limited to, all of line 40 the following:
96 SB 79 — 10 —
line 1 (I)  Existing constraints under ownership rights or contractual line 2 rights or obligations that prevent the use of the property for line 3 housing, if the rights or obligations were agreed to prior to line 4 September 30, 2019.
line 5 (II)  Conservation or other easements or encumbrances that line 6 prevent housing development.
line 7 (III)  Existing leases, or other contractual obligations or line 8 restrictions, if the terms were agreed to prior to September 30, line 9 2019.
line 10 (IV)  Restrictions imposed by the source of funding that a local line 11 agency used to purchase a property, provided that both of the line 12 following requirements are met:
line 13 (ia)  The restrictions limit the use of those funds to purposes line 14 other than housing.
line 15 (ib)  The proposed disposal of surplus land meets a use consistent line 16 with that purpose.
line 17 (iii)  Valid legal restrictions that would make housing prohibited line 18 do not include either of the following:
line 19 (I)  An existing nonresidential land use designation on the surplus line 20 land.
line 21 (II)  Covenants, restrictions, or other conditions on the property line 22 rendered void and unenforceable by any other law, including, but line 23 not limited to, Section 714.6 of the Civil Code. line 24 (iv)  Feasible methods to mitigate or avoid a valid legal line 25 restriction on the site do not include a requirement that the local line 26 agency acquire additional property rights or property interests line 27 belonging to third parties.
line 28 (K)  Surplus land that was granted by the state in trust to a local line 29 agency or that was acquired by the local agency for trust purposes line 30 by purchase or exchange, and for which disposal of the land is line 31 authorized or required subject to conditions established by statute. line 32 (L)  Land that is subject to either of the following, unless line 33 compliance with this article is expressly required:
line 34 (i)  Section 17388, 17515, 17536, 81192, 81397, 81399, 81420, line 35 or 81422 of the Education Code.
line 36 (ii)  Part 14 (commencing with Section 53570) of Division 31 line 37 of the Health and Safety Code.
line 38 (M)  Surplus land that is a former military base that was line 39 conveyed by the federal government to a local agency, and is line 40 subject to Article 8 (commencing with Section 33492.125) of 96 — 11 — SB 79
line 1 Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code, line 2 provided that all of the following conditions are met:
line 3 (i)  The former military base has an aggregate area greater than line 4 five acres, is expected to include a mix of residential and line 5 nonresidential uses, and is expected to include no fewer than 1,400 line 6 residential units upon completion of development or redevelopment line 7 of the former military base.
line 8 (ii)  The affordability requirements for residential units shall be line 9 governed by a settlement agreement entered into prior to September line 10 1, 2020. Furthermore, at least 25 percent of the initial 1,400 line 11 residential units developed shall be restricted to lower income line 12 households, as defined in Section 50079.5 of the Health and Safety line 13 Code, with an affordable sales price or an affordable rent, as line 14 defined in Sections 50052.5 and 50053 of the Health and Safety line 15 Code, for 55 years for rental housing, 45 years for ownership line 16 housing, and 50 years for rental or ownership housing located on line 17 tribal trust lands, unless a local ordinance or a federal, state, or line 18 local grant, tax credit, or other project financing requires a longer line 19 period of affordability.
line 20 (iii)  Before disposition of the surplus land, the agency adopts line 21 written findings that the land is exempt surplus land pursuant to line 22 this subparagraph.
line 23 (iv)  Before disposition of the surplus land, the recipient has line 24 negotiated a project labor agreement consistent with the local line 25 agency’s project stabilization agreement resolution, as adopted on line 26 February 2, 2021, and any succeeding ordinance, resolution, or line 27 policy, regardless of the length of the agreement between the local line 28 agency and the recipient.
line 29 (v)  The agency includes in the annual report required by line 30 paragraph (2) of subdivision (a) of Section 65400 the status of line 31 development of residential units on the former military base, line 32 including the total number of residential units that have been line 33 permitted and what percentage of those residential units are line 34 restricted for persons and families of low or moderate income, or line 35 lower income households, as defined in Section 50079.5 of the line 36 Health and Safety Code.
line 37 A violation of this subparagraph is subject to the penalties line 38 described in Section 54230.5. Those penalties are in addition to line 39 any remedy a court may order for violation of this subparagraph line 40 or the settlement agreement.
96 SB 79 — 12 —
line 1 (N)  Real property that is used by a district for an agency’s use line 2 expressly authorized in subdivision (c).
line 3 (O)  Land that has been transferred before June 30, 2019, by the line 4 state to a local agency pursuant to Section 32667 of the Streets line 5 and Highways Code and has a minimum planned residential density line 6 of at least 100 dwelling units per acre, and includes 100 or more line 7 residential units that are restricted to persons and families of low line 8 or moderate income, with an affordable sales price or an affordable line 9 rent, as defined in Sections 50052.5 and 50053 of the Health and line 10 Safety Code, for 55 years for rental housing, 45 years for ownership line 11 housing, and 50 years for rental or ownership housing located on line 12 tribal trust lands, unless a local ordinance or a federal, state, or line 13 local grant, tax credit, or other project financing requires a longer line 14 period of affordability. For purposes of this subparagraph, not line 15 more than 20 percent of the affordable units may be restricted to line 16 persons and families of moderate income and at least 80 percent line 17 of the affordable units must be restricted to lower income line 18 households as defined in Section 50079.5 of the Health and Safety line 19 Code.
line 20 (P)  (i)  Land that meets the following conditions:
line 21 (I)  Land that is subject to a sectional planning area document line 22 that meets both of the following:
line 23 (ia)  The sectional planning area was adopted prior to January line 24 1, 2019.
line 25 (ib)  The sectional planning area document is consistent with line 26 county and city general plans applicable to the land. line 27 (II)  The land identified in the adopted sectional planning area line 28 document was dedicated prior to January 1, 2019. line 29 (III)  On January 1, 2019, the parcels on the land met at least line 30 one of the following conditions:
line 31 (ia)  The land was subject to an irrevocable offer of dedication line 32 of fee interest requiring the land to be used for a specified purpose. line 33 (ib)  The land was acquired through a land exchange subject to line 34 a land offer agreement that grants the land’s original owner the line 35 right to repurchase the land acquired by the local agency pursuant line 36 to the agreement if the land will not be developed in a manner line 37 consistent with the agreement.
line 38 (ic)  The land was subject to a grant deed specifying that the line 39 property shall be used for educational uses and limiting other types line 40 of uses allowed on the property.
96 — 13 — SB 79
line 1 (IV)  At least 25 percent of the units are dedicated to lower line 2 income households, as defined in Section 50079.5 of the Health line 3 and Safety Code, at an affordable rent, as defined by Section 50053 line 4 of the Health and Safety Code, or an affordable housing cost, as line 5 defined by Section 50052.5 of the Health and Safety Code, and line 6 subject to a recorded deed restriction for a period of 55 years for line 7 rental units and 45 years for owner-occupied units, unless a local line 8 ordinance or a federal, state, or local grant, tax credit, or other line 9 project financing requires a longer period of affordability. line 10 (V)  The land is developed at an average density of at least 10 line 11 units per acre, calculated with respect to the entire sectional line 12 planning area.
line 13 (VI)  No more than 25 percent of the nonresidential square line 14 footage identified in the sectional planning area document receives line 15 its first certificate of occupancy before at least 25 percent of the line 16 residential square footage identified in the sectional planning area line 17 document has received its first certificate of occupancy. line 18 (VII)  No more than 50 percent of the nonresidential square line 19 footage identified in the sectional planning area document receives line 20 its first certificate of occupancy before at least 50 percent of the line 21 residential square footage identified in the sectional planning area line 22 document has received its first certificate of occupancy. line 23 (VIII)  No more than 75 percent of the nonresidential square line 24 footage identified in the sectional planning area document shall line 25 receive its first certificate of occupancy before at least 75 percent line 26 of the residential square footage identified in the sectional planning line 27 area document has received its first certificate of occupancy. line 28 (ii)  The local agency includes in the annual report required by line 29 paragraph (2) of subdivision (a) of Section 65400 the status of line 30 development, including the total square footage of the residential line 31 and nonresidential development, the number of residential units line 32 that have been permitted, and what percentage of those residential line 33 units are restricted for persons and families of low or moderate line 34 income, or lower income households, as defined in Section 50079.5 line 35 of the Health and Safety Code.
line 36 (iii)  The Department of Housing and Community Development line 37 may request additional information from the agency regarding line 38 land disposed of pursuant to this subparagraph. line 39 (iv)  At least 30 days prior to disposing of land declared “exempt line 40 surplus land,” a local agency shall provide the Department of 96 SB 79 — 14 —
line 1 Housing and Community Development a written notification of line 2 its declaration and findings in a form prescribed by the Department line 3 of Housing and Community Development. Within 30 days of line 4 receipt of the written notification and findings, the department line 5 shall notify the local agency if the department has determined that line 6 the local agency is in violation of this article. A local agency that line 7 fails to submit the written notification and findings shall be liable line 8 for a civil penalty pursuant to this subparagraph. A local agency line 9 shall not be liable for the civil penalty if the Department of Housing line 10 and Community Development does not notify the agency that the line 11 agency is in violation of this article within 30 days of receiving line 12 the written notification and findings. Once the department line 13 determines that the declarations and findings comply with line 14 subclauses (I) to (IV), inclusive, of clause (i), the local agency line 15 may proceed with disposal of land pursuant to this subparagraph. line 16 This clause is declaratory of, and not a change in, existing law. line 17 (v)  If the local agency disposes of land in violation of this line 18 subparagraph, the local agency shall be liable for a civil penalty line 19 calculated as follows:
line 20 (I)  For a first violation, 30 percent of the greater of the final line 21 sale price or the fair market value of the land at the time of line 22 disposition.
line 23 (II)  For a second or subsequent violation, 50 percent of the line 24 greater of the final sale price or the fair market value of the land line 25 at the time of disposition.
line 26 (III)  For purposes of this subparagraph, fair market value shall line 27 be determined by an independent appraisal of the land. line 28 (IV)  An action to enforce this subparagraph may be brought by line 29 any of the following:
line 30 (ia)  An entity identified in subdivisions (a) to (e), inclusive, of line 31 Section 54222.
line 32 (ib)  A person who would have been eligible to apply for line 33 residency in affordable housing had the agency not violated this line 34 section.
line 35 (ic)  A housing organization, as that term is defined in Section line 36 65589.5.
line 37 (id)  A beneficially interested person or entity. line 38 (ie)  The Department of Housing and Community Development. line 39 (V)  A penalty assessed pursuant to this subparagraph shall, line 40 except as otherwise provided, be deposited into a local housing 96 — 15 — SB 79
line 1 trust fund. The local agency may elect to instead deposit the penalty line 2 moneys into the Building Homes and Jobs Trust Fund or the line 3 Housing Rehabilitation Loan Fund. Penalties shall not be paid out line 4 of funds already dedicated to affordable housing, including, but line 5 not limited to, Low and Moderate Income Housing Asset Funds, line 6 funds dedicated to housing for very low, low-, and line 7 moderate-income households, and federal HOME Investment line 8 Partnerships Program and Community Development Block Grant line 9 Program funds. The local agency shall commit and expend the line 10 penalty moneys deposited into the local housing trust fund within line 11 five years of deposit for the sole purpose of financing newly line 12 constructed housing units that are affordable to extremely low, line 13 very low, or low-income households.
line 14 (VI)  Five years after deposit of the penalty moneys into the line 15 local housing trust fund, if the funds have not been expended, the line 16 funds shall revert to the state and be deposited in the Building line 17 Homes and Jobs Trust Fund or the Housing Rehabilitation Loan line 18 Fund for the sole purpose of financing newly constructed housing line 19 units located in the same jurisdiction as the surplus land and that line 20 are affordable to extremely low, very low, or low-income line 21 households. Expenditure of any penalty moneys deposited into the line 22 Building Homes and Jobs Trust Fund or the Housing Rehabilitation line 23 Loan Fund pursuant to this subdivision shall be subject to line 24 appropriation by the Legislature.
line 25 (vi)  For purposes of this subparagraph, the following definitions line 26 apply:
line 27 (I)  “Sectional planning area” means an area composed of line 28 identifiable planning units, within which common services and line 29 facilities, a strong internal unity, and an integrated pattern of land line 30 use, circulation, and townscape planning are readily achievable. line 31 (II)  “Sectional planning area document” means a document or line 32 plan that sets forth, at minimum, a site utilization plan of the line 33 sectional planning area and development standards for each land line 34 use area and designation.
line 35 (vii)  This subparagraph shall become inoperative on January 1, line 36 2034.
line 37 (Q)  Land that is owned by a California public-use airport on line 38 which residential uses are prohibited pursuant to Federal Aviation line 39 Administration Order 5190.6B, Airport Compliance Program, line 40 Chapter 20 – Compatible Land Use and Airspace Protection. 96 SB 79 — 16 —
line 1 (R)  Land that is transferred to a community land trust, and all line 2 of the following conditions are met:
line 3 (i)  The property is being or will be developed or rehabilitated line 4 as any of the following:
line 5 (I)  An owner-occupied single-family dwelling.
line 6 (II)  An owner-occupied unit in a multifamily dwelling. line 7 (III)  A member-occupied unit in a limited equity housing line 8 cooperative.
line 9 (IV)  A rental housing development.
line 10 (ii)  Improvements on the property are or will be available for line 11 use and ownership or for rent by qualified persons, as defined in line 12 paragraph (6) of subdivision (c) of Section 214.18 of the Revenue line 13 and Taxation Code.
line 14 (iii)  (I)  A deed restriction or other instrument, requiring a line 15 contract or contracts serving as an enforceable restriction on the line 16 sale or resale value of owner-occupied units or on the affordability line 17 of rental units is recorded on or before the lien date following the line 18 acquisition of the property by the community land trust. line 19 (II)  For the purpose of this clause, the following definitions line 20 apply:
line 21 (ia)  “A contract or contracts serving as an enforceable restriction line 22 on the sale or resale value of owner-occupied units” means a line 23 contract described in paragraph (11) of subdivision (a) of Section line 24 402.1 of the Revenue and Taxation Code.
line 25 (ib)  “A contract or contracts serving as an enforceable restriction line 26 on the affordability of rental units” means an enforceable and line 27 verifiable agreement with a public agency, a recorded deed line 28 restriction, or other legal document described in subparagraph (A) line 29 of paragraph (2) of subdivision (g) of Section 214 of the Revenue line 30 and Taxation Code.
line 31 (iv)  A copy of the deed restriction or other instrument shall be line 32 provided to the assessor.
line 33 (S)  (i)  For local agencies whose primary mission or purpose is line 34 to supply the public with a transportation system, surplus land that line 35 is developed for commercial or industrial uses or activities, line 36 including nongovernmental retail, entertainment, or office line 37 development or for the sole purpose of investment or generation line 38 of revenue, if the agency meets all of the following conditions:
line 39 (I)  The agency has an adopted land use plan or policy that line 40 designates at least 50 percent of the gross acreage covered by the 96 — 17 — SB 79
line 1 adopted land use plan or policy for residential purposes. The line 2 adopted land use plan or policy shall also require the development line 3 of at least 300 residential units, or at least 10 residential units per line 4 gross acre, averaged across all land covered by the land use plan line 5 or policy, whichever is greater.
line 6 (II)  The agency has an adopted land use plan or policy that line 7 requires at least 25 percent of all residential units to be developed line 8 on the parcels covered by the adopted land use plan or policy made line 9 available to lower income households, as defined in Section 50079 line 10 of the Health and Safety Code, at an affordable sales price or rented line 11 at an affordable rent, as defined in Sections 50052.5 and 50053 of line 12 the Health and Safety Code, for 55 years for rental housing and line 13 45 years for ownership housing, unless a local ordinance or the line 14 terms of a federal, state, or local grant, tax credit, or other project line 15 financing requires a longer period of affordability. These terms line 16 shall be included in the land use plan or policy and dictate that line 17 they will be contained in a covenant or restriction recorded against line 18 the surplus land at the time of disposition that shall run with the line 19 land and be enforceable against any owner or lessee who violates line 20 the covenant or restriction and each successor in interest who line 21 continues the violation.
line 22 (III)  Land disposed of for residential purposes shall issue a line 23 competitive request for proposals subject to the local agency’s line 24 open, competitive solicitation process or put out to open, line 25 competitive bid by the local agency, provided that all entities line 26 identified in subdivision (a) of Section 54222 are invited to line 27 participate.
line 28 (IV)  Prior to entering into an agreement to dispose of a parcel line 29 for nonresidential development on land designated for the purposes line 30 authorized pursuant to this subparagraph in an agency’s adopted line 31 land use plan or policy, the agency, since January 1, 2020, must line 32 have entered into an agreement to dispose of a minimum of 25 line 33 percent of the land designated for affordable housing pursuant to line 34 subclause (II).
line 35 (ii)  The agency may exempt at one time all parcels covered by line 36 the adopted land use plan or policy pursuant to this subparagraph. line 37 (2)  Notwithstanding paragraph (1), a written notice of the line 38 availability of surplus land for open-space purposes shall be sent line 39 to the entities described in subdivision (b) of Section 54222 before line 40 disposing of the surplus land, provided the land does not meet the 96 SB 79 — 18 —
line 1 criteria in subparagraph (H) of paragraph (1), if the land is any of line 2 the following:
line 3 (A)  Within a coastal zone.
line 4 (B)  Adjacent to a historical unit of the State Parks System. line 5 (C)  Listed on, or determined by the State Office of Historic line 6 Preservation to be eligible for, the National Register of Historic line 7 Places.
line 8 (D)  Within the Lake Tahoe region as defined in Section 66905.5. line 9 (g)  “Persons and families of low or moderate income” has the line 10 same meaning as provided in Section 50093 of the Health and line 11 Safety Code.
line 12 SEC. 2. Chapter 4.1.5 (commencing with Section 65912.155) line 13 is added to Division 1 of Title 7 of the Government Code, to read:
line 14
line 15 Chapter 4.1.5. Transit-Oriented Development
line 16
line 17 65912.155. The Legislature finds and declares all of the line 18 following:
line 19 (a)  California faces a housing shortage both acute and chronic, line 20 particularly in areas with access to robust public transit line 21 infrastructure.
line 22 (b)  Building more homes near transit access reduces housing line 23 and transportation costs for California families, and promotes line 24 environmental sustainability, economic growth, and reduced traffic line 25 congestion.
line 26 (c)  Public transit systems require sustainable funding to provide line 27 reliable service, especially in areas experiencing increased density line 28 and ridership. The state does not invest in public transit service to line 29 the same degree as it does in roads, and the state funds a smaller line 30 proportion of the state’s major transit agencies’ operations costs line 31 than other states with comparable systems. Transit systems in other line 32 countries derive significant revenue from transit-oriented line 33 development at and near their stations.
line 34 65912.156. For purposes of this chapter, the following line 35 definitions apply:
line 36 (a)  “Adjacent” means sharing a property line with a transit stop, line 37 including any parcels that serve a parking or circulation purpose line 38 related to the stop.
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line 1 (b)  “Commuter rail” means a rail transit service not meeting line 2 the standards for heavy rail or light rail, excluding California line 3 High-Speed Rail and Amtrak Long Distance Service. line 4 (c)  “Department” means the Department of Housing and line 5 Community Development.
line 6 (d)  “Frequent commuter rail” means a commuter rail service line 7 with a total of at least 24 daily trains per weekday across both line 8 directions and not meeting the standard for very high or line 9 high-frequency commuter rail at any point in the past three years. line 10 (e)  “Heavy rail transit” means an electric railway with the line 11 capacity for a heavy volume of traffic using high-speed and rapid line 12 acceleration passenger rail cars operating singly or in multicar line 13 trains on fixed rails, separate rights-of-way from which all other line 14 vehicular and foot traffic are excluded, and high platform loading. line 15 (f)  “High-frequency commuter rail” means a commuter rail line 16 service operating a total of at least 48 trains per day across both line 17 directions at any point in the past three years. line 18 (g)  “High-resource area” means a highest resource or line 19 high-resource neighborhood opportunity area, as used in the line 20 opportunity area maps published annually by the California Tax line 21 Credit Allocation Committee and the department. line 22 (h)  “Housing development project” has the same meaning as line 23 defined in Section 65589.5.
line 24 (i)  “Light rail transit” includes streetcar, trolley, and tramway line 25 service.
line 26 (j)  “Net habitable square footage” means the finished and heated line 27 floor area fully enclosed by the inside surface of walls, windows, line 28 doors, and partitions, and having a headroom of at least six and line 29 one-half feet, including working, living, eating, cooking, sleeping, line 30 stair, hall, service, and storage areas, but excluding garages, line 31 carports, parking spaces, cellars, half-stories, and unfinished attics line 32 and basements.
line 33 (k)  “Rail transit” has the same meaning as defined in Section line 34 99602 of the Public Utilities Code.
line 35 (l)  “Residential floor area ratio” means the ratio of net habitable line 36 square footage dedicated to residential use to the area of the lot. line 37 (m)  “Tier 1 transit-oriented development stop” means a major line 38 transit stop, as defined by Section 21155 of the Public Resources line 39 Code, served by heavy rail transit or very high frequency commuter line 40 rail.
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line 1 (n)  “Tier 2 transit-oriented development stop” means a major line 2 transit stop, as defined by Section 21155 of the Public Resources line 3 Code, excluding a Tier 1 transit-oriented development stop, served line 4 by light rail transit, by high-frequency commuter rail, or by bus line 5 service meeting the standards of paragraph (1) of subdivision (a) line 6 of Section 21060.2 of the Public Resources Code. line 7 (o)  “Tier 3 transit-oriented development stop” means a major line 8 transit stop, as defined by Section 21155 of the Public Resources line 9 Code, excluding a Tier 1 or Tier 2 transit-oriented development line 10 stop, served by frequent commuter rail service or by ferry service. line 11 (p)  “Transit-oriented development stop” means a major transit line 12 stop, as defined by Section 21155 of the Public Resources Code, line 13 excluding any stop served by rail transit with a frequency of fewer line 14 than 10 total trains per weekday.
line 15 (q)  “Very high frequency commuter rail” means a commuter line 16 rail service with a total of at least 72 trains per day across both line 17 directions at any point in the past three years. line 18 65912.157. (a)  A housing development project within one-half line 19 or one-quarter mile of a transit-oriented development stop shall line 20 be an allowed use on any site zoned for residential, mixed, line 21 commercial, or light industrial development, if the development line 22 complies with the applicable of all of the following requirements:
line 23 (1)  For a residential development within one-quarter mile of a line 24 Tier 1 transit-oriented development stop, all of the following apply:
line 25 (A)  A development may be built up to 75 feet high, or up to the line 26 local height limit, whichever is greater. If a development proposes line 27 a height under this subparagraph in excess of the local height line 28 limit, then a local government shall not be required to grant a line 29 waiver, incentive, or concession pursuant to Section 65915 for line 30 additional height beyond that specified under this subparagraph, line 31 except as provided in subparagraph (D) of paragraph (2) of line 32 subdivision (d) of Section 65915.
line 33 (B)  A local government shall not impose any maximum density line 34 of less than 120 dwelling units per acre. The development line 35 proponent may seek a further increased density in accordance with line 36 applicable density bonus law.
line 37 (C)  A local government shall not enforce any other local line 38 development standard or combination of standards that would line 39 prevent achieving a residential floor area ratio of up to 3.5. 96 — 21 — SB 79
line 1 (D)  A development that otherwise meets the eligibility line 2 requirements of Section 65915, including, but not limited to, line 3 affordability requirements, shall be eligible for three additional line 4 concessions pursuant to Section 65915.
line 5 (2)  For a residential development further than one-quarter mile line 6 but within one-half mile of a Tier 1 transit-oriented development line 7 stop, all of the following apply:
line 8 (A)  A development may be built up to 65 feet high, or up to the line 9 local height limit, whichever is greater. If a development proposes line 10 a height under this subparagraph in excess of the local height line 11 limit, then a local government shall not be required to grant a line 12 waiver, incentive, or concession pursuant to Section 65915 for line 13 additional height beyond that specified under this subparagraph, line 14 except as provided in subparagraph (D) of paragraph (2) of line 15 subdivision (d) of Section 65915.
line 16 (B)  A local government shall not impose any maximum density line 17 standard of less than 100 dwelling units per acre. The development line 18 proponent may seek a further increased density in accordance with line 19 applicable density bonus law.
line 20 (C)  A local government shall not enforce any other local line 21 development standard or combination of standards that would line 22 prevent achieving a residential floor area ratio of up to 3. line 23 (D)  A development that otherwise meets the eligibility line 24 requirements of Section 65915, including, but not limited to, line 25 affordability requirements, shall be eligible for two additional line 26 concessions pursuant to Section 65915.
line 27 (3)  For a residential development within one-quarter mile of a line 28 Tier 2 transit-oriented development stop, all of the following apply:
line 29 (A)  A development may be built up to 65 feet high, or up to the line 30 local height limit, whichever is greater. If a development proposes line 31 a height under this subparagraph in excess of the local height line 32 limit, then a local government shall not be required to grant a line 33 waiver, incentive, or concession pursuant to Section 65915 for line 34 additional height beyond that specified under this subparagraph, line 35 except as provided in subparagraph (D) of paragraph (2) of line 36 subdivision (d) of Section 65915.
line 37 (B)  A local government shall not impose any maximum density line 38 standard of less than 100 dwelling units per acre. The development line 39 proponent may seek a further increased density in accordance with line 40 applicable density bonus law.
96 SB 79 — 22 —
line 1 (C)  A local government shall not enforce any other local line 2 development standard or combination of standards that would line 3 prevent achieving a residential floor area ratio of up to 3. line 4 (D)  A development that otherwise meets the eligibility line 5 requirements of Section 65915, including, but not limited to, line 6 affordability requirements, shall be eligible for two additional line 7 concessions pursuant to Section 65915.
line 8 (4)  For a residential development further than one-quarter mile line 9 but within one-half mile of a Tier 2 transit-oriented development line 10 stop, all of the following apply:
line 11 (A)  A development may be built up to 55 feet high, or up to the line 12 local height limit, whichever is greater. If a development proposes line 13 a height under this subparagraph in excess of the local height line 14 limit, then a local government shall not be required to grant a line 15 waiver, incentive, or concession pursuant to Section 65915 for line 16 additional height beyond that specified under this subparagraph, line 17 except as provided in subparagraph (D) of paragraph (2) of line 18 subdivision (d) of Section 65915.
line 19 (B)  A local government shall not impose any maximum density line 20 standard of less than 80 dwelling units per acre. The development line 21 proponent may seek a further increased density in accordance with line 22 applicable density bonus law.
line 23 (C)  A local government shall not enforce any other local line 24 development standard or combination of standards that would line 25 prevent achieving a residential floor area ratio of up to 2.5. line 26 (D)  A development that otherwise meets the eligibility line 27 requirements of Section 65915, including, but not limited to, line 28 affordability requirements, shall be eligible for one additional line 29 concession pursuant to Section 65915.
line 30 (5)  For a residential development within one-quarter mile of a line 31 Tier 3 transit-oriented development stop, all of the following apply:
line 32 (A)  A development may be built up to 55 feet high, or up to the line 33 local height limit, whichever is greater. If a development proposes line 34 a height under this subparagraph in excess of the local height line 35 limit, then a local government shall not be required to grant a line 36 waiver, incentive, or concession pursuant to Section 65915 for line 37 additional height beyond that specified under this subparagraph, line 38 except as provided in subparagraph (D) of paragraph (2) of line 39 subdivision (d) of Section 65915.
96 — 23 — SB 79
line 1 (B)  A local government shall not impose any maximum density line 2 standard of less than 80 dwelling units per acre. The development line 3 proponent may seek a further increased density in accordance with line 4 applicable density bonus law.
line 5 (C)  A local government shall not enforce any other local line 6 development standard or combination of standards that would line 7 prevent achieving a residential floor area ratio of up to 2.5. line 8 (D)  A development that otherwise meets the eligibility line 9 requirements of Section 65915, including, but not limited to, line 10 affordability requirements, shall be eligible for one additional line 11 concession pursuant to Section 65915.
line 12 (6)  For a residential development further than one-quarter mile line 13 but within one-half mile of a Tier 3 transit-oriented development line 14 stop, all of the following apply:
line 15 (A)  A development may be built up to 45 feet high, or up to the line 16 local height limit, whichever is greater. If a development proposes line 17 a height under this subparagraph in excess of the local height line 18 limit, then a local government shall not be required to grant a line 19 waiver, incentive, or concession pursuant to Section 65915 for line 20 additional height beyond that specified under this subparagraph, line 21 except as provided in subparagraph (D) of paragraph (2) of line 22 subdivision (d) of Section 65915.
line 23 (B)  A local government shall not impose any maximum density line 24 standard of less than 60 dwelling units per acre. The development line 25 proponent may seek a further increased density in accordance with line 26 applicable density bonus law.
line 27 (C)  A local government shall not enforce any other local line 28 development standard or combination of standards that would line 29 prevent achieving a residential floor area ratio of up to 2. line 30 (b)  Notwithstanding any other law, a housing development line 31 project that meets any of the eligibility criteria under subdivision line 32 (a) and is immediately adjacent to a Tier 1, Tier 2, or Tier 3 line 33 transit-oriented development stop shall be eligible for an adjacency line 34 intensifier to increase the height limit by an additional 20 feet, the line 35 maximum density standard by an additional 40 dwelling units per line 36 acre, and the residential floor area ratio by 1. line 37 (c)  A development proposed pursuant to this section shall line 38 comply with the antidisplacement requirements of Section 66300.6. line 39 This subdivision shall apply to any city or county. 96 SB 79 — 24 —
line 1 (d)  For purposes of subdivision (j) of Section 65589.5, a line 2 proposed housing development project that is consistent with the line 3 applicable standards from this chapter shall be deemed consistent, line 4 compliant, and in conformity with an applicable plan, program, line 5 policy, ordinance, standard, requirement, or other similar provision. line 6 (e)  A local government that denies a housing development line 7 project meeting the requirements of this section that is located in line 8 a high-resource area shall be presumed to be in violation of the line 9 Housing Accountability Act (Section 65589.5) and immediately line 10 liable for penalties pursuant to subparagraph (B) of paragraph (1) line 11 of subdivision (k) of Section 65589.5, unless the local government line 12 demonstrates, pursuant to the standards in subdivisions (j) and (o) line 13 of Section 65589.5, that it has a health, life, or safety reason for line 14 denying the project.
line 15 65912.158. Notwithstanding any other provision of this chapter, line 16 a transit agency may adopt objective standards for both residential line 17 and commercial developments proposed to be constructed on land line 18 owned by the transit agency or on which the transit agency has a line 19 permanent operating easement, if the objective standards allow line 20 for the same or greater development intensity as that allowed by line 21 local standards or applicable state law.
line 22 65912.159. A housing development project proposed pursuant line 23 to Section 65912.157 shall be eligible for streamlined ministerial line 24 approval pursuant to Section 65913.4 in accordance with all of the line 25 following:
line 26 (a)  The proposed project shall be exempt from subparagraph line 27 (A) of paragraph (4) of, paragraph (5) of, and clause (iv) of line 28 subparagraph (A) of paragraph (6) of, subdivision (a) of Section line 29 65913.4.
line 30 (b)  The proposed project shall comply with the affordability line 31 requirements in subclauses (I) through (III), inclusive, of clause line 32 (i) of subparagraph (B) of paragraph (4) of subdivision (a) of line 33 Section 65913.4.
line 34 (c)  The proposed project shall comply with all other line 35 requirements of Section 65913.4, including, but not limited to, the line 36 prohibition against a site that is within a very high fire hazard line 37 severity zone, pursuant to subparagraph (D) of paragraph (6) of line 38 subdivision (a) of Section 65913.4.
line 39 65912.160. (a)  The department shall oversee compliance with line 40 this chapter, including, but not limited to, promulgating standards 96 — 25 — SB 79
line 1 on how to account for capacity pursuant to this chapter in a city line 2 or county’s inventory of land suitable for residential development, line 3 pursuant to Section 65583.2.
line 4 (b)  (1)  A local government may adopt an ordinance to line 5 implement the provisions of this chapter, which may include line 6 revisions to applicable zoning requirements on individual sites line 7 within a transit-oriented development zone, provided that those line 8 revisions maintain the average density allowed for the applicable line 9 tier, or up to a 100-percent increase, subject to review by the line 10 department pursuant to paragraph (3).
line 11 (2)  An ordinance adopted to implement this section shall not line 12 be considered a project under Division 13 (commencing with line 13 Section 21000) of the Public Resources Code.
line 14 (3)  (A)  A local government shall submit a copy of any line 15 ordinance adopted pursuant to this section to the department within line 16 60 days of adoption.
line 17 (B)  Upon receipt of an ordinance pursuant to this paragraph, line 18 the department shall review that ordinance and determine whether line 19 it complies with this section. If the department determines that the line 20 ordinance does not comply with this section, the department shall line 21 notify the local government in writing and provide the local line 22 government a reasonable time, not to exceed 30 days, to respond line 23 before taking further action as authorized by this section. line 24 (C)  The local government shall consider any findings made by line 25 the department pursuant to subparagraph (B) and shall do one of line 26 the following:
line 27 (i)  Amend the ordinance to comply with this section. line 28 (ii)  Adopt the ordinance without changes. The local government line 29 shall include findings in its resolution adopting the ordinance that line 30 explain the reasons the local government believes that the line 31 ordinance complies with this section despite the findings of the line 32 department.
line 33 (D)  If the local government does not amend its ordinance in line 34 response to the department’s findings or does not adopt a resolution line 35 with findings explaining the reason the ordinance complies with line 36 this chapter and addressing the department’s findings, the line 37 department shall notify the local government and may notify the line 38 Attorney General that the local government is in violation of this line 39 section.
96 SB 79 — 26 —
line 1 65912.161. The Legislature finds and declares that the state line 2 faces a housing crisis of availability and affordability, in large part line 3 due to a severe shortage of housing, and solving the housing crisis line 4 therefore requires a multifaceted, statewide approach, including, line 5 but not limited to, encouraging an increase in the overall supply line 6 of housing, encouraging the development of housing that is line 7 affordable to households at all income levels, removing barriers line 8 to housing production, expanding homeownership opportunities, line 9 and expanding the availability of rental housing, and is a matter line 10 of statewide concern and is not a municipal affair as that term is line 11 used in Section 5 of Article XI of the California Constitution. line 12 Therefore, this chapter applies to all cities, including charter cities. line 13 SEC. 3. Section 21080.26.5 is added to the Public Resources line 14 Code, to read:
line 15 21080.26.5. (a)  For the purposes of this section, “public line 16 project” means a project constructed by either a public agency or line 17 private entity, that, upon the completion of the construction, will line 18 be operated by a public agency.
line 19 (b)  This division shall not apply to a public or private residential, line 20 commercial, or mixed-used project that, at the time the project line 21 application is filed, is located entirely or principally on land owned line 22 by a public transit agency, or fully or partially encumbered by an line 23 existing operating easement in favor of a public transit agency, line 24 and that includes at least one of the following:
line 25 (1)  A project component identified in paragraphs (1) to (5), line 26 inclusive, or paragraph (7) of subdivision (b) of Section 21080.25. line 27 (2)  A public project for passenger rail service facilities, other line 28 than light rail service eligible under paragraph (5) of subdivision line 29 (b) of Section 21080.25, including the construction, line 30 reconfiguration, or rehabilitation of stations, terminals, rails, line 31 platforms, or existing operations facilities, which will be line 32 exclusively used by zero-emission or electric trains. The project line 33 shall be located on land owned by a public transit agency, or land line 34 fully or partially encumbered by an existing operating easement line 35 in favor of a public transit agency, at the time the project line 36 application is filed.
line 37 (3)  An agreement between the project applicant and public line 38 transit agency that owns the land or has the permanent operating line 39 easement to finance transit capital infrastructure, transit line 40 maintenance, or transit operations, including through a proposed 96 — 27 — SB 79
line 1 public financing district, community financing district, or tax line 2 increment generated by the project.
line 3 (c)  If a project described in subdivision (b) requires the line 4 construction of new passenger rail storage and maintenance line 5 facilities at a publicly or privately owned offsite location distinct line 6 from the principal project site, then that project shall be considered line 7 a wholly separate project from the project described in subdivision line 8 (b) and shall not be exempt from this division. Any required line 9 environmental review shall not affect or render invalid the line 10 exemption provided in subdivision (b), regardless of whether the line 11 project described in subdivision (b) cannot proceed unless the line 12 offsite facilities are constructed.
line 13 SEC. 4. No reimbursement is required by this act pursuant to line 14 Section 6 of Article XIIIB of the California Constitution because line 15 a local government or school district has the authority to levy line 16 service charges, fees, or assessments sufficient to pay for the line 17 program or level of service mandated by this act, within the line 18 meaning of Section 17556 of the Government Code.

O
96 SB 79 — 28 —

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