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SACRAMENTO • WASHINGTON, DC
NORTHERN CALIFORNIA • CENTRAL CALIFORNIA • SOUTHERN CALIFORNIA State Legislative Update
October 18, 2022
Slide
2 Sacramento General Overview 2022
Legislative Session ended on August 31 and Governor acted on all bills passed by the Legislature on September 30
Breakdown of Bill Data
• 2,055 bills introduced
• Legislature passed 1,166 (excluding resolutions and constitutional amendments) • Governor signed 997 bills into law and vetoed 169
• Veto rate higher than prior years (16% in 2022 vs. 7.8% in 2021) New Legislature – January 2023
City of Costa Mesa: Legislative Update: October 18, 2022 Slide
3 Adopted Budget Provisions
Healthcare
expansion
$9.5 billion
inflation relief
rebate
$2 billion for
housing
investments
$19 billion multi-
year climate
package
Building
reserves/rainy
day fund
City of Costa Mesa: Legislative Update: October 18, 2022 2022 State Budget:
$307.9 billion in total spending, near $100 billion surplus ($49 billion for discretionary use)
One-time spending formulas
Slide
4 City of Costa Mesa Successful Earmarks
-
2022
City of Costa Mesa: Legislative Update: October 18, 2022 $11,200,000
Various City
Park Projects
$3,500,000
Fairview
Developmental
Center
Slide
5 2022 State Housing Package
• $1 billion for California
Housing Accelerator
Program
– 30 low-income projects,
2,700+ new homes
• 41 bills signed into law
• Governor’s Housing
Focus: production,
affordability, jobs,
transit-oriented
City of Costa Mesa: Legislative Update: October 18, 2022 Slide
6 Legislative Outcomes: Housing and Land Use
AB 2011 (Wicks): Affordable Housing and High Road Jobs Act of 2022
Creates a ministerial, streamlined approval process for 100% affordable housing projects in commercial zones and for mixed- income housing projects along commercial corridors
Signed into Law – Effective July 1, 2023
SB 6 (Caballero): Middle Class Housing Act of 2022
Establishes housing as an allowable use on any parcel zoned for office or retail uses so long as developers use a skilled and trained workforce.
Signed into Law – Effective July 1, 2023
City of Costa Mesa opposed both bills
City of Costa Mesa: Legislative Update: October 18, 2022 Slide
7 AB 2011
• Two options for eligibility:
• 100% Below Market Rate (BMR) in commercial zones
• Mixed-income (15% BMR) on commercial corridors (local road with a right-of-way of 70 to 150 feet, generally, four to eight lanes)
• Approval Process
• 90 days for projects with less than 150 units
• 180 days for projects with more than 150 units
• Location
• Office, retail or parking
• Restrictions: industrial, fire severity zone, tribal area, SB 35 exclusions, mobile home parks, 500 feet of freeway, within .6 miles of oil/gas refinery
• Project Criteria
• Proponents must complete environmental assessment;
notices and relocation assistance
• Multi-family: 5 or more homes for sale/rent
City of Costa Mesa: Legislative Update: October 18, 2022 Slide
8 AB 2011
• Affordability
• Commercial Zones
• 100% affordable
• Commercial Corridors
• Rental: 8% very low income plus 5% extremely low income, or 15% lower income
• Owner-Occupied: 30% moderate income or 15% lower
income
• Labor Standards
• Prevailing wage; apprenticeship (50+ units)
• Development Requirements
• Commercial Zones: Density; zoning (if parcel currently allows residential)
• Commercial Corridors: height and setback requirements City of Costa Mesa: Legislative Update: October 18, 2022 Slide
9 SB 6
• Eligibility
• Allows for residential development on commercial
zones, no ministerial approval process
• No re-zoning required; no affordability requirements
• Approval Process
• No streamlined approval process
• “Allowable use” if local conditions are met (low-income density, parking, design, public notice, local code,
permitting)
• Location
• Retail, office, parking; less than 20 acres
City of Costa Mesa: Legislative Update: October 18, 2022 Slide
10 SB 6
• Criteria
• At least half dedicated to housing; proponent must
provide notices and relocation assistance
• Labor Standards
• Prevailing wage
• Skilled and trained workforce (exception if less
than 2 bids)
• Development Requirements
• Lower income density requirements
• Subject to local parking, design, ordinances
City of Costa Mesa: Legislative Update: October 18, 2022 Slide
11 Looking Ahead: 2023 Legislative Session
Beginning of a new
2-Year Session
Potential changes in
budget reserves
New class of
Legislators and
possible changes to
leadership
Continued Focus on
issue areas of
behavioral health,
housing production,
and tax reform
City of Costa Mesa: Legislative Update: October 18, 2022 Slide
12 Questions and Comments
Sean McReynolds
Senior Associate
[email protected]
www.townsendpa.com
City of Costa Mesa: Legislative Update: October 18, 2022 An Ordinance to Adopt the 2022 Edition
of the California Building Standards Codes
2 Background
• The California Health & Safety Code Section 17958
mandates that the California Building Standards
Commission adopt & publish the California Building
Standards Codes (Title 24 CCR) every three years.
• The 2022 California Building Codes have been adopted
and published by the State and will become effective of January 1, 2023.
• The California Health & Safety Code requires local
government to adopt the most updated State Codes and
allows local agencies to make amendments to those
Codes to respond to local conditions.
3 California Building Standards Code & Reference
Model Code
California Building Standard Code Reference National Model Code 2022 California Building Code 2021 International Building Code (ICC) 2022 California Residential Code 2021 International Residential Code (ICC) 2022 California Fire Code 2021 International Fire Code (ICC) 2022 California Existing Building Code 2021 International Existing Building Code (ICC) 2022 California Plumbing Code 2021 International Plumbing Code (IAPMO) 2022 California Mechanical Code 2021 International Mechanical Code (IAPMO) 2022 California Electrical Code 2020 National Electric Code (NFPA) 2022 California Energy Code 2021 International Energy Code (ICC) 2022 California Green Building Standards
4 Local Amendments to the State Codes
Staff are recommending that the City Council adopt the 2022 State Construction Codes with local amendments to the following:
• 2022 California Building Code
• 2022 California Residential Code
• 2022 California Fire Code
These amendments and changes are necessary due to local climatic, geographic and topographic conditions such as Santa Ana winds and seismic conditions in southern California. The draft Resolution sets forth the required findings for these proposed amendments.
5 Local Amendments to the State Codes
The Development Services Department is recommending amendments to the 2022 California Building and Residential Codes. For example:
• Fencing less than 6 feet in height, swimming pools of a 18 inches or less in depth, and detached decks below 200 square feet in area do not require a building permit.
• Roof coverings are required to be of Class B materials (minimum) • Fire retardant treated wood and shingles must comply with state standards 6 Local Amendments to the State Codes
The Fire & Rescue Department is recommending amendments to the 2022 California Fire Code. For example:
Existing
• Clarification of hazardous (Red Flag) conditions.
• Restrictions on outdoor fires.
• Reference of NFPA 1124 for the temporary retail sale of safe and sane fireworks.
• Maintained modifications to fire sprinkler installation Standards where required.
New
• Energy storage system emergency stop at commercial and residential installations.
• Fire department connection proximity to fire hydrants to match NFPA Standard.
7 Ordinance Adoption
The draft Ordinance amends the City of Costa Mesa Municipal Code:
• Title 5, Buildings and Construction
Section 5-1 (Adopted Construction Codes)
Section 5-1.1 (Amendments to 2022 California Building Code) Section 5-1.3 (Amendments to 2022 California Residential Code); and • Title 7, Fire Protection and Prevention
Section 7-14 (Adoption of the California Fire Code)
Section 7-15 (Amendments to 2022 California Fire Code) 8 Recommendation
Staff recommends the City Council:
1) Hold a public hearing and adopt the Resolution setting forth findings with respect to climatic, geographic, & topographic conditions to allow local amendments to the State Codes. 2) Introduce for first reading the Ordinance to amend Title 5 and Title 7 of the Costa Mesa Municipal Code adopting the 2022 Edition of the State Building Standards Codes, as locally amended, and the current edition of the Orange County Grading and Excavation Code.
An Ordinance to Adopt the 2022 Edition
of the California Building Standards Codes