Lake Forest City Council
July 1, 2025

ATTACHMENT 4

3rd ADDENDUM TO VONAGE BUSINESS SERVICE TERMS
Sales Orders # 626489, 626490 and 626491
This Addendum is executed by and between Vonage Business Inc. ("Vonage Business") and the customer identified in the signature block below ("Customer") in connection with the above- referenced Sales Order ("Sales Order"). This Addendum supplements or amends the terms and conditions set forth at https://www.vonage.com/legal/unified-communications/enterprise/tos/ (the "Service Terms"), which are referenced in and made part of the Sales Order. To the extent of any inconsistency between this Addendum and the Service Terms, this Addendum will control. Except as amended or supplemented by this Addendum, the Service Terms otherwise remain unchanged and in full force and effect. Defined terms in this Addendum have the same meaning given such terms in the Service Terms.

Notwithstanding anything to the contrary in the Service Terms, the Parties hereby agree as follows:

1. MONTHLY CHARGES UNDER SALES ORDERS
The Parties agree and confirm that the total monthly charges for the Services under Sales Order numbers 62648 (Civic Center), 626490 (Skate Park) and 626491(Sports Park) is $7167.50 not including Taxes and Fees as set out in the table below:

Location: Civic Center
Name Quantity Rate Total
AudioConnect Audio Conferencing - Flat Rate 1 20 20
Hunt Group 22 4 88
Long Distance Outbound (2.5) and Inbound Toll Free
(2.5) service 1 0 0
Managed Ethernet Loop 5 Mbps 1 500 500
Managed Router Rental - Ethernet up to 50 mb 1 15 15
Polycom 6000 Rental 11 18 198
Polycom CCX 500 & Handset no Power Supply -
Rental 11 9 99
Polycom VVX 250 POE - Rental 6 3 18
Polycom VVX Color Expansion Module Rental 8 6 48
Polycom VVX201 POE Rental 42 3 126
Polycom VVX601 POE Rental 115 9 1035
Premier Basic 51 13 663
Premier Plus 134 25 3350

Premier Plus 6 29 174
SmartWAN Mono-30 Mbps-Rental 1 71 71
Auto Attendant 10 5 50
DID Single Number 2 0.25 0.5
Equipment Shipping/Handling - Ground 2 0 0
Group Page 10 1 8 8
Managed Analog Port 10 8 80
Phone Shipping and Handling - 2 Day 1 0 0
Phone Shipping and Handling - Ground 7 0 0
Unified Mailbox 22 5 110
Total: $6,653.50
Location: Skate Park
Name Quantity Rate Total
Long Distance Outbound (2.5) and Inbound Toll Free
(2.5) service 1 $0.00 $0.00
Polycom VVX601 POE Rental 3 $9.00 $27.00
Premier Plus 6 $25.00 $150.00
Unified Mailbox 1 $5.00 $5.00
Total: $182.00
Location: Sports Park
Name Quantity Rate Total
Hunt Group 1 $4.00 $4.00
Long Distance Outbound (2.5) and Inbound Toll Free
(2.5) service 1 $0.00 $0.00
Polycom VVX201 POE Rental 12 $3.00 $36.00
Polycom VVX601 POE Rental 4 $9.00 $36.00
Premier Basic 12 $13.00 $156.00
Premier Plus 4 $25.00 $100.00
Total: $332.00

2. PRICING
Customer will pay Vonage Business for the Products and Services over the 36-month Service Term. All quoted prices in the above referenced Sales Order do not include Taxes and Fees.

The authorized representatives of Vonage Business and Customer have executed this Addendum below:

Vonage Business Inc. City of Lake Forest
By:

Name:

Title:

By: {{__evi__Signer1_es_:signer1:signature}}
Name:

Title:

Date: Date: {{__evi__Dte1_es_:signer1:date:required}}

CITY COUNCIL AGENDA REPORT
MEETING DATE: 7/1/2025
DEPARTMENT: Community Development
SUBJECT:

GENERAL PLAN AMENDMENT TO REFLECT CHANGES TO THE ORANGE

COUNTY MASTER PLAN OF ARTERIAL HIGHWAYS
RECOMMENDED ACTION(S):

1. Find that General Plan Amendment 10-24-5745 is not subject to the California Environmental Quality Act (CEQA) pursuant to the following sections of the State CEQA Guidelines: Section 15060 (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), and Section 15061(b)(3) (the activity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment).

2. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF LAKE FOREST, CALIFORNIA, APPROVING GENERAL PLAN AMENDMENT 10-24-5745, AMENDING THE GENERAL PLAN MOBILITY NETWORK MAP (FIGURE M-1) TO REFLECT CHANGES TO THE ORANGE

COUNTY MASTER PLAN OF ARTERIAL HIGHWAYS
EXECUTIVE SUMMARY:

Orange County Transit Authority (OCTA) maintains the Master Plan of Arterial Highways (“MPAH”) for the entire county. In March of 2024, the County of Orange proposed an MPAH amendment to reclassify portions of El Toro Road/Santiago Canyon Road located in Lake Forest, Mission Viejo, and Unincorporated County. Specifically, two sections of El Toro Road would be reclassified from “major arterial” to “primary arterial.” The proposed downgrade of the roadway classification from major to primary arterial to these portions of El Toro Road is consistent with the current built configuration of El Toro Road. The Public Works Directors of both Lake Forest and Mission Viejo consented to the County’s proposed amendments.

In September of 2024, OCTA Board of Directors approved these amendments to the MPAH. The approval of the amended MPAH is contingent upon OCTA receiving receipt of documentation confirming that all affected general plans are consistent with the proposed amendment. City staff reviewed the City’s General Plan and determined that the MPAH amendments triggered required

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modifications to “Figure M-1-Mobility Network”, in the City’s General Plan Mobility Element. “Figure M-1:Mobility Network” is a map of the City’s roadway system and displays the road classification for each road. Two sections of the El Toro Road segment that were part of the MPAH amendment are within the jurisdiction of Lake Forest. Revisions to the Mobility Network Map are proposed to modify these two sections of El Toro Road from “major arterial” to “primary arterial.” The Planning Commission reviewed General Plan Amendment 10-24-5745 at a public hearing on June 5, 2025, and adopted a Resolution recommending approval of the revised “Figure M-1:Mobility Network” map by the City Council.

BACKGROUND:

Master Plan of Arterial Highway Amendments
Orange County Transit Authority (“OCTA”) maintains the Master Plan of Arterial Highways (“MPAH”) for the entire County. The MPAH coordinates roadway system planning across Orange County jurisdictions. OCTA is responsible for reviewing and approving all requests for amendments to the MPAH.

In March of 2024, the County of Orange proposed an MPAH amendment to reclassify portions of El Toro Road/Santiago Canyon Road. El Toro Road turns into Santiago Canyon Road near Live Oak Canyon Road in Lake Forest. Graphic 1 shows the location of MPAH amendment, which spans the segment between Portola Parkway (in Lake Forest) and SR-241 (in Unincorporated Orange County), along with the proposed reclassifications for different segments of the road. The El Toro Road/Santiago Canyon Road alignment meanders between multiple jurisdictions, including Lake Forest, Mission Viejo and unincorporated areas of the County.

The County proposed to downgrade the MPAH classifications of El Toro Road/Santiago Canyon Road to match the current road configuration. Previously, the MPAH showed this segment of El Toro Road/Santiago Canyon Road being widened in the future. However, based on a traffic analysis by OCTA staff, using OCTAM 5.1 (Orange County Transportation Analysis Model), the 2050 forecasted daily vehicle trips did not warrant widening of the road system.

This amendment to reclassify portions of El Toro Road/Santiago Canyon Road was reviewed by the Public Works Directors of both Lake Forest and Mission Viejo who each consented to the County’s proposed amendments.

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On September 9, 2024, the OCTA Board of Directors approved the County’s requested amendments to the MPAH. The OCTA staff report is attached to this report with excerpts of the attachments that pertain to the El Toro Road/Santiago Canyon Road MPAH amendment (Attachment 2).

The approval of the amended MPAH is contingent upon OCTA receiving receipt of documentation confirming that all affected general plans are consistent with the proposed amendment and are compliant with the California Environmental Quality Act. Amendment requests will expire if OCTA does not receive such documentation within three years of granting approval. As such, the City received a letter from OCTA (Attachment 3) requesting confirmation that the City has amended the General Plan to be consistent with the amended MPAH.

Graphic 1: Orange County’s Proposed
Reclassification of El Toro Road/ Santiago
Canyon Road

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California Government Code Compliance
Pursuant to Government Code sections 65352.3 and 65352.4 (Senate Bill 18), the City is required to notify the appropriate tribal representatives of a General Plan Amendment. The tribal representatives are provided the opportunity to conduct a consultation with the City on matters regarding the preservation of and mitigating impacts to sacred places located on land within the City. In accordance with Senate Bill 18, on January 27, 2025, the City sent letters to California Native American tribes that are on the contact list maintained by the Native American Heritage Commission for the purpose of informing these tribes about the Project.

The City provided a 90-day period for the representative of the tribes to request formal consultation. There were no requests for formal consultation.

Additionally, Government Code Section 65352 requires that cities notify specific agencies before a legislative body takes action to adopt or substantially amend a general plan. GPA 10-24-5745 is not a substantial amendment to the General Plan because it only includes minor revisions to Figure M-1 in Mobility Element.

As such, the requirements in Government Code Section 65352 are not applicable to this General Plan Amendment.

DISCUSSION:

City staff reviewed the City’s General Plan and determined that the MPAH amendments triggered required modifications to Figure M-1-Mobility Network, in the City’s General Plan Mobility Element. Based on staff analysis, there are no other General Plan sections that need to be modified related to the MPAH Amendment. “Figure M-1: Mobility Network” is a map of the City’s roadway system and displays the road classification for each road. Two sections of the El Toro Road/Santiago Canyon Road segment that were part of the MPAH amendment are within the jurisdiction of Lake Forest. As shown in Graphic 2, the proposed revisions to the Mobility Network Map include modifying the two sections of El Toro Road from “major arterial” to “primary arterial.” The proposed downgrade of the roadway classification from major to primary arterial to these portions of El Toro Road is consistent with the current built configuration of El Toro Road. General Plan Amendment 10-24-5745 would not include any development, grading, ground disturbance, construction project, or other change to the physical environment. The road classification of the small section of Santiago Canyon Road within the City on the Mobility Network map is shown as “Collector”, which is already consistent with the MPAH amendment.

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PLANNING COMMISSION:

The Planning Commission reviewed GPA 10-24-5745 at a public hearing on June 5, 2025. The Planning Commission unanimously adopted a resolution recommending approval by the City Council (Attachment 4). The attached draft City Council resolution (Attachment 1) includes the revised “Figure M-1: Mobility Network” with the revisions shown in Graphic 2.

ENVIRONMENTAL REVIEW:

Pursuant to State CEQA Guidelines section 15060(c)(2), an activity is not subject to CEQA if the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment. This project, GPA 10-24-5745, is an amendment to the City’s General Plan Mobility Network Map to ensure consistency with the Orange County Master Plan of Arterial Highways. The revisions include the downgrade of the roadway classification from major to

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primary arterial to portions of El Toro Road/Santiago Canyon Road. The revisions are consistent with the current built configuration of El Toro Road/Santiago Canyon Road. As such, General Plan Amendment 10-24-5745 would not entitle or otherwise approve any development, grading, ground disturbance, construction project, or other change to the physical environment.

Thus, section 15060(c)(2) applies to GPA 10-24-5745 and no further action is therefore required.

Even if GPA 10-24-5745 were subject to CEQA, the action qualifies for the commonsense exemption under Section 15061(b)(3). Under Section 15061(b)(3), where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Here, the General Plan Amendment does not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, because it involves an amendment to the City’s General Plan Mobility Network Map to ensure consistency with the Orange County Master Plan of Arterial Highways, and does not entitle or otherwise approve any development, grading, ground disturbance, construction project, or other change to the physical environment. Therefore, it can be seen with certainty that there is no possibility that GPA 10-24-5745 may have a significant effect on the environment. As a result, GPA 10-24-5745 is not subject to CEQA.

PUBLIC NOTICING:

In accordance with the requirements of the Lake Forest Municipal Code Section

9.184.040(C)(2), the public hearing notice was published in a newspaper of general circulation and posted at City Hall on June 19, 2025.

FISCAL IMPACT:

There is no fiscal impact related to the recommended actions.

ATTACHMENTS:

1. Draft Resolution approving GPA
Exhibit A: Revised Mobility Network Map (Figure M-1)

2. Excerpts of OCTA Report for Amended MPAH
a. Staff Report
b. Excerpts from Attachment A related to Lake Forest changes (MPAH Amendments Detailed Discussion)
c. Attachment C (Letter from OC Public Works requesting MPAH amendments)

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d. Attachment G (County of Orange MPAH Amendments Map)
e. Attachment I (Santiago Canyon/El Toro Road Jurisdiction Consent Forms from Lake Forest and Mission Viejo)

3. Letter from OCTA

4. Planning Commission resolution recommending approval of GPA 10-24-5745 Initiated By: Jennifer Mansur, AICP, Senior Planner
Submitted By: Gayle Ackerman, AICP, Director of Community Development Approved By: Debra Rose, City Manager

55136.00400\34220397.4
Attachment 1

1 Resolution No. 2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAKE FOREST, CALIFORNIA, APPROVING GENERAL
PLAN AMENDMENT 10-24-5745, AMENDING THE

GENERAL PLAN MOBILITY NETWORK MAP (FIGURE M-
1) TO REFLECT CHANGES TO THE ORANGE COUNTY

MASTER PLAN OF ARTERIAL HIGHWAYS
WHEREAS, on June 2, 2020, the City of Lake Forest City Council adopted the 2040 Lake Forest General Plan; and
WHEREAS, on September 9, 2024, the Orange County Transportation Authority (OCTA) Board of Directors approved amendments to the Orange County Master Plan of Arterial Highways (MPAH) to reclassify two sections of El Toro Road/Santiago Canyon Road in the City of Lake Forest from a major arterial (six-lane, divided) to a primary arterial (four-lane, divided); and WHEREAS, the approval of the amended MPAH is contingent upon OCTA receiving receipt of documentation confirming that all affected general plans are consistent with the proposed amendment and are compliant with the California Environmental Quality Act. Amendment requests will expire if the Orange County Transportation Authority does not receive such documentation within three years of granting approval.; and
WHEREAS, the City initiated General Plan Amendment 10-24-5745 (“GPA 10-24-5745”) to amend the City’s General Plan Mobility Network (Figure M-1) to ensure consistency with the Orange County MPAH; and
WHEREAS, in accordance with Government Code 65352.3 and 65352.4 (Senate Bill 18) on January 27, 2025, the City sent letters to California Native American tribes that are on the contact list maintained by the Native American Heritage Commission for the purpose of informing these tribes about the Project, and the providing a 90-day period for the representative of the tribe to request formal consultation; and
WHEREAS, there were no requests for formal consultation; and WHEREAS, GPA 10-24-5745 is a not a substantial amendment to the General Plan because it only includes minor revisions to Figure M-1 in Mobility Element, as such the requirements in Government Code Section 65352 are not applicable to this General Plan Amendment; and

2 WHEREAS, California Government Code Sections 65353 and 65354 require the Planning Commission hold a public hearing and recommend to the City Council that the proposed general plan amendment be approved, disapproved, or conditionally approved; and
WHEREAS, on May 22, 2025, the City gave public notice of the Planning Commission public hearing on June 5, 2025 for consideration of GPA 10-24- 5745 by advertising in a newspaper of general circulation and posting the notice at City Hall; and
WHEREAS, on June 5, 2025, the Planning Commission conducted a duly noticed public hearing to consider General Plan Amendment 10-24-5745, at which interested persons had an opportunity to testify in support of, or opposition to the request, and at which the Planning Commission considered the application. Following the public hearing, the Planning Commission adopted a resolution recommending that the City Council approve GPA 10-24-5745; and WHEREAS, on June 19, 2025, the City gave public notice of the City Council public hearing for consideration of GPA 10-24-5745 by advertising in a newspaper of general circulation and posting the notice at City Hall; and WHEREAS, on July 1, 2025, the City Council conducted a duly-noticed public hearing to consider General Plan Amendment 10-24-5745, at which interested persons had an opportunity to testify in support of, or opposition to the request, and at which the City Council considered the application; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE
FOREST DOES RESOLVE, DETERMINE, FIND, AND ORDER AS FOLLOWS:

SECTION 1. Incorporation of Recitals. The City Council hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution.

SECTION 2. CEQA. Pursuant to State CEQA Guidelines section 15060(c)(2), an activity is not subject to CEQA if the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment. This project, GPA 10-24-5745, is an amendment to the City’s General Plan Mobility Network Map to ensure consistency with the Orange County Master Plan of Arterial Highways. The revisions include the downgrade of the roadway classification from major to primary arterial to portions of El Toro Road. The

3 revisions are consistent with the current built configuration of El Toro Road. As such, General Plan Amendment 10-24-5745 would not entitle or otherwise approve any development, grading, ground disturbance, construction project, or other change to the physical environment. Thus, section 15060(c)(2) applies to GPA 10-24-5745 and no further action is therefore required.

Even if GPA 10-24-5745 were subject to CEQA, the action qualifies for the common sense exemption under Section 15061(b)(3). Under Section 15061(b)(3), where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Here, the General Plan Amendment does not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, because it involves an amendment to the City’s General Plan Mobility Network Map to ensure consistency with the Orange County Master Plan of Arterial Highways, and does not entitle or otherwise approve any development, grading, ground disturbance, construction project, or other change to the physical environment. Therefore, it can be seen with certainty that there is no possibility that GPA 10-24-5745 may have a significant effect on the environment. As a result, GPA 10-24-5745 is not subject to CEQA.

SECTION 3. General Plan Amendment. GPA 10-24-5745 consists of revisions to the General Plan Mobility Network Map (Figure M-1) of the Mobility Element. The revised map is attached to this resolution as Exhibit “A” and incorporated herein by reference.

SECTION 4. General Plan Consistency. Based on the entire record before the City Council, including all written and oral evidence presented, the City Council hereby finds and determines GPA 10-24-5745 is consistent with the City’s adopted General Plan. Specifically, this project is the result of coordination with OCTA regarding the MPAH and implements the following General Plan Mobility Element policy and related implementation action:
a. Master Plan of Arterial Highways (MPAH). Coordinate with OCTA with respect to regional vehicular access as documented in the OCTA MPAH. (Policy M-1.1)
b. Periodically coordinate with OCTA regarding the OCTA Master Plan of Arterial Highways and inform OCTA regarding Lake Forest’s long-term mobility plans and priorities. (Action M-1a)
Furthermore, the proposed revisions to the Mobility Network Map are not in conflict with any General Plan goal, policy, or implementation action.

4 SECTION 5. City Council Action. The City Council hereby approves GPA 10-24-5745, for a revised General Plan Mobility Network Map (Figure M-1), that is attached to this resolution as Exhibit “A.”
SECTION 6. Location of Documents. The documents and materials that constitute the record of proceedings on which these findings are based are located at City Hall for the City of Lake Forest, located at 100 Civic Center Drive, Lake Forest, California. The City Clerk is the custodian of the record of proceedings.

SECTION 7. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Resolution for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution.

The City Council hereby declares that it would have adopted this Resolution, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 8. Effective Date. This Resolution takes effect immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Lake Forest, California on __________, 2025, by the following vote, to wit:
________________________________

SCOTT VOIGTS
MAYOR
ATTEST:
______________________________________

THY MERRITT

ACTING CITY CLERK

5 APPROVED AS TO FORM:
__________________________
MATTHEW E. RICHARDSON

CITY ATTORNEY

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF LAKE FOREST )
I, Thy Merritt, Acting City Clerk of the City of Lake Forest, California, do hereby certify that the foregoing Resolution No. 2025-__ was duly passed and adopted at a regular meeting of the Lake Forest City Council on the _____ day of _________ 2025, by the following vote, to wit:

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
_______________________________

THY MERRITT

ACTING CITY CLERK

6 EXHIBIT A

Attachment 2

Orange County Transportation Authority
550 South Main Street / P.O. Box 14184 / Orange / California 92863-1584 / (714) 560-OCTA (6282)

August 29, 2024

To: Regional Transportation Planning Committee

From: Darrell E. Johnson, Chief Executive Officer

Subject: Amendments to the Master Plan of Arterial Highways

Overview

The Orange County Transportation Authority administers the Master Plan of Arterial Highways, including the review and approval of amendments requested by local agencies. Approvals are recommended for amendment requests from the County of Orange, the City of Fullerton, and the City of Laguna Hills. Also, a status report on pending amendment requests is provided.

Recommendations

A. Approve the following Master Plan of Arterial Highways amendments:

County of Orange

1. Reclassify Villa Park Road /Santiago Canyon Road from a major (six-lane, divided) arterial to an asymmetric primary (five -lane, divided) arterial between Hewes Street and Cannon Street.

2. Reclassify Santiago Canyon Road from a primary ( four-lane, divided) arterial to a divided collector ( two-lane, divided) arterial between State Route 241 and Live Oak Canyon Road.

3. Reclassify El Toro Road from a major (six-lane, divided) arterial to a primary ( four-lane, divided) arterial between Live Oak Canyon Road and Pheasant Creek.

4. Reclassify El Toro Road, from a major (six-lane, divided) arterial to an asymmetric primary ( five-lane, divided) arterial between Pheasant Creek and Portola Parkway.

5. Delete Black Star Canyon Road between Silverado Canyon Road and the Orange County/Riverside County Line.

6. Reclassify Bucker Way from a secondary ( four-lane, undivided ) arterial to a divided collector (two -lane, divided) arterial between Ranch Canyon Road and Coyotes Road.

7. Reclassify Ranch Canyon Road from a primary (four-lane, divided) arterial to a divided collector (two -lane, divided) arterial between Bucker Way and Cow Camp Road.

Amendments to the Master Plan of Arterial Highways Page 2

City of Fullerton

8. Reclassify Harbor Bou levard, from a major (six -lane, divided) arterial to a primary (four -lane, divided) arterial between Bastanchury Road and Berkeley Avenue.

City of Laguna Hills

9. Reclassify Paseo De Valencia from a major (six -lane, divided) arterial to a divided collector (two -lane, divided) arterial between Alicia Parkway and La Paz Road.

10. Reclassify Paseo De Valencia from a secondary (four -lane, undivided) arterial to a divided collector (two-lane, divided) arterial between La Paz Road and Cabot Road.

11. Reclassify Cabot Road from a secondary (four -lane, undivided) arterial to a divided collector (two -lane, divided) arterial between Paseo de Valencia and El Paseo.

The Master Plan of Arterial Highways will be amended to reflect each approved request contingent upon receipt of documentation confirming that all affected general plan s are consistent with the proposed amendment and are compliant with the California Environmental Quality Act. Amendment requests will expire if the Orange County Transportation Authority does not receive such documentation within three years of granting approval.

Should the proposed Master Plan of Arterial Highways amendment be modified for any reason after receiving approval, the modified Master Plan of Arterial Highways amendment must be returned to the Orange County Transportation Authority Board of Directors for reconsideration and action.

B. Direct the Executive Director of Planning, or his designee, to file a Notice of Exemption from the California Environmental Quality Act for the Master Plan of Arterial Highways amendments.

C. Receive and file a status report on the active Master Plan of Arterial Highways amendments.

Background

The Master Plan of Arterial Highways (MPAH) coordinates roadway system planning across Orange County jurisdictions. The MPAH was first adopted by the County of Orange in 1956 , and the Orange County Transportation Authority (OCTA) assumed administration responsibilities in 1995.

Amendments to the Master Plan of Arterial Highways Page 3

OCTA is responsible for maintaining the integrity and continuity of the MPAH system as it evolves to fulfill transportation circulation needs by reviewing changes proposed by local jurisdictions . The reviews consider potential transportation-related concerns and ensure interagency collaboration to avoid unintended impacts in neighboring jurisdictions or regional transportation systems. Details on the requested amendment s by the County of Orange (County), City of Fullerton (Fullerton), and City of Laguna Hills (Laguna Hills) are presented below, along with a status report of MPAH amendments that are in process.

Discussion

Consistent with the MPAH amendment process described in OCTA’s Guidance for Administration of the MPAH, Attachment A documents OCTA’s analysis of several requests for amendments to the MPAH. The requests were submitted to OCTA by the County (Attachments B, C, and D), Fullerton (Attachment E), and Laguna Hills (Attachment F). The table below summarizes the current and proposed roadway configurations.

The first five amendments in the table that are proposed by the County are illustrated in Attachment G and the cities of Lake Forest, Mission Viejo, Orange, and Villa Park have provided consent forms (Attachments H and I) to express their support. The remaining three amendments being proposed by the County are illustrated in Attachment J. Additionally, a map of the MPAH amendment request by the City of Fullerton is provided in Attachment K, and a map of the amendment request by the City of Laguna Hills is provided in Attachment L.

Most of the amendments are being requested to accommodate complete street initiatives. OCTA supports these initiatives through the MPAH amendment process, which also ensures that the integrity of the MPAH system is maintained and ha s no impacts on the ability of OCTA to deliver public transit. The amendment requests are supported by affected jurisdictions, where applicable, and they can be implemented within the existing right -of-way. The requested amendments are expected to sufficiently accommodate future traffic demand and, therefore, t hey do not adversely impact the MPAH and are recommended for approval.

Amendments to the Master Plan of Arterial Highways Page 4

Agency Current
Configuration
MPAH
Classification
Requested
Classification

1. Villa Park Road/Santiago Canyon Road - Hewes Street to Cannon Street County 4-lane, divided 6-lane, divided 5-lane, divided

2. Santiago Canyon Road - State Route 241 to Live Oak Canyon Road County 2-lane, undivided 4-lane, divided 2-lane, divided

3. El Toro Road - Live Oak Canyon Road to Pheasant Creek County 2-lane, undivided 6-lane, divided 4-lane, divided

4. El Toro Road - Pheasant Creek to Portola Parkway
County 5-lane, divided 6-lane, divided 5-lane, divided

5. Black Star Canyon Road - Silverado Canyon Road to County Line County Unbuilt 4-lane, undivided Remove

6. Bucker Way - Ranch Canyon Road to Coyotes Road
County Unbuilt 4-lane, undivided 2-lane, divided

7. Ranch Canyon Road - Bucker Way to Cow Camp Road
County Unbuilt 4-lane, divided 2-lane, divided

8. Harbor Boulevard - Bastanchury Road to Berkeley Avenue Fullerton 4-lane, divided 6-lane, divided 4-lane, divided

9. Paseo De Valencia - Alicia Parkway to La Paz Road
Laguna Hills 4-lane, divided 6-lane, divided 2-lane, divided

10. Paseo De Valencia - La Paz Road to Cabot Road
Laguna Hills 4-lane, divided 4-lane, divided 2-lane, divided

11. Cabot Road - Paseo de Valencia to El Paseo
Laguna Hills 4-lane, divided 4-lane, undivided 2-lane, divided

California Environmental Quality Act (CEQA)

Amendments to the MPAH plan are exempt from CEQA review. With direction from the Board, staff will file a Notice of Exemption from CEQA for the proposed MPAH amendment.

MPAH Amendment Status Update

There are currently 17 active amendments proposed for the MPAH (Attachment M). Several of the active amendments are awaiting local action to amend their respective general plans. Others are either under review, in the cooperative study process, pending resolution of issues with other agencies, or are awaiting refinement of development plans.

Amendments to the Master Plan of Arterial Highways Page 5

On July 12, 2021, t he Board conditionally approved amendments to delete Tonner Canyon Road and Valencia Avenue in the City of Brea (Brea) from the MPAH. Since the general plan update was not completed within three years of the Board approval date, the amendment was not finalized and has expired. Staff is actively coordinating with Brea to potentially restart the amendment process when appropriate.

Staff is also coordinating with the cities of Costa Mesa and Newport Beach on the proposed 19th Street amendment. OCTA has met with both cities to discuss the status of this request. The setting for this change can have implications on roadways that involve the cities of Costa Mesa, Huntington Beach, Newport Beach, the County of Orange, and potentially the California Department of Transportation. OCTA is agreeable to lead a traffic study in the general area, including the Banning Ranch area, to gain consensus between t he involved agencies on MPAH network needs before advancing the 19th Street amendment.

However, OCTA was asked to pause the effort until after the cities of Costa Mesa and Newport Beach have updated their General Plan Housing Elements so the latest future housing assumptions can be reflected in the traffic analysis.

Summary

The County, Fullerton, and Laguna Hills have requested amendments to the MPAH. Based on an analysis of the requested changes, the MPAH Guidance has been satisfied, and staff recommends Board approval. A summary of active amendments proposed for the MPAH is also provided as information for the Board.

Attachments

A. Master Plan of Arterial Highways Amendments Detailed Discussion B. Letter from Nardy Khan, PE, PMP, Deputy Director, OC Public Works, to Kurt Brotcke, Director, Strategic Planning, Orange County Transportation Authority, dated March 6, 2024, re: MPAH Amendment Request for Villa Park Road/Santiago Canyon Road
C. Letter from Nardy Khan, PE, PMP, Deputy Director, OC Public Works, to Kurt Brotcke, Director, Strategic Planning, Orange County Transportation Authority, dated March 27, 2024, re: MPAH Amendment Request for Santiago Canyon Road (SCR), El Toro Road, and Black Star Canyon Road
D. Letter from Nardy Khan, PE, PMP, Deputy Director, OC Public Works, to Kia Mortazavi , Executive Director, Strategic Planning, Orange County Transportation Authority, dated July 18 , 2024, re: MPAH Amendment Request for Bucker Way and Ranch Canyon Road in RMV
E. Letter from Stephen Bise, PE, Public Works Director, City of Fullerton to Ivy Hang, Senior Transportation Analyst, Orange County Transportation

Amendments to the Master Plan of Arterial Highways Page 6

Authority, dated June 21, 2024, re: Maste r Plan of Arterial Highways Amendment – Harbor Boulevard
F. Letter from Jarad Hildenbrand, City Manager, City of Laguna Hills, to Kia Mortazavi, Executive Director, Planning Division, Orange County Transportation Authority, dated June 11, 2024, re: Master Plan of Arterial Highways Amendment – Paseo De Valencia and Cabot Road
G. County of Orange MPAH Amendments Map
H. Villa Park Road/Santiago Canyon Road – Jurisdiction Consent Forms I. Santiago Canyon Road, El Toro Road, and Black Star Canyon Road – Jurisdiction Consent Forms
J. County of Orange MPAH Amendment Map – Bucker Way and Ranch Canyon Road
K. City of Fullerton MPAH Amendment Map
L. City of Laguna Hills MPAH Amendment Map
M. Status Report on Pending Master Plan of Arterial Highways Amendments

Prepared by:

Approved by:

Ivy Hang Kia Mortazavi
Senior Transportation Analyst
(714) 560-5684
Executive Director, Planning
(714) 560-5741

Master Plan of Arterial Highways Amendments Detailed Discussion

1 County – Reclassify Villa Park Road/Santiago Canyon Road

Villa Park Road/Santiago Canyon Road, between Hewes Street and Cannon Street, is currently constructed as a primary (four -lane, divided) arterial, and is classified on the Master Plan of Arterial Highways (MPAH) as a future major (six-lane, divided) arterial.

The County is requesting to reclassify this facility to an asymmetric primary (five -lane, divided) arterial. This reclassification would provide two eastbound lanes and three westbound lanes, while providing adequate right-of-way to accommodate class II bicycle lanes with three -foot painted buffers. The cities of Orange and Villa Park have also submitted consent forms to express their support for this MPAH amendment.

Based on analysis by Orange County Transportation Authority ( OCTA) staff, using the Orange County Transportation Analysis Model (OCTAM) 5.1, 27,000 daily vehicle trips are forecasted for this segment in 2050. Since an asymmetric primary can carry up to 37,500 daily vehicle trips while maintaining an acceptable level of service , the proposed amendment provides ample capacity, and no trips are expected to be diverted to other facilities.

The requested amendment does not adversely impact the MPAH and is, therefore, recommended for approval.

County – Reclassify Santiago Canyon Road

Santiago Canyon Road, between State Route 241 and Live Oak Canyon Road, is currently constructed as a collector (two-lane, undivided) arterial, and is classified on the MPAH as a future primary (four -lane, divided) arterial. The County is requesting a reclassification of this facility to a divided collector (two -lane, divided) arterial. The proposed changes would support the County’s effort to improve traffic conditions on Santiago Canyon Road. The cities of Lake Forest and Mission Viejo have also submitted consent forms to express their support for this MPAH amendment.

Based on analysis by OCTA staff, using OCTAM 5.1, between 9,000 and 14,000 daily vehicle trips are forecasted for this segment in 2050. Since a divided collector can carry up to 15,000 daily vehicle trips while maintaining an acceptable level of service, t he proposed amendment provides sufficient capacity , and no trips are expected to be diverted to other facilities.

The requested amendment does not adversely impact the MPAH and is, therefore, recommended for approval.

County – Reclassify El Toro Road

El Toro Road, between Live Oak Canyon Road and Portola Parkway, currently has between two and five travel lanes. This facility is classified on the MPAH as a future major (six-lane, divided) arterial. The County is requesting to reclassify the segment of El Toro Road between Live Oak Canyon Road and Pheasant Creek to a primary

ATTACHMENT A

Master Plan of Arterial Highways Amendments Detailed Discussion

2 (four-lane, divided) arterial. For the segment of El Toro Road between Pheasant Creek and Portola Parkway, the County is requesting to reclassify to an asymmetric primary (five-lane, divided) arterial, consistent with the existing built configuration. The proposed changes would support the County’s effort to accommodate class II bicycle lanes and improve traffic conditions on El Toro Road.

Based on analysis by OCTA staff, using OCTAM 5.1, between 10,000 and 15,000 daily vehicle trips are forecasted for the segment of El Toro Road between Live Oak Canyon Road and Portola Parkway in 2050. No trips are anticipated to be diverted to other facilities as a result of this amendment since the proposed classifications would have ample capacity for the forecasted volumes. Specifically, a primary can carry up to 30,000 daily vehicle trips while maintaining an acceptable level of service, and an asymmetr ic primary can carry up to 37,500 daily vehicle trips.

The requested amendment does not adversely impact the MPAH and is, therefore, recommended for approval.

County – Delete Black Star Canyon Road

Black Star Canyon Road is currently built as an approximately one-mile, single-lane road that ends at the Black Star Canyon Falls trailhead in the Black Star Canyon wilderness area. The MPAH classifies the facility as a secondary (four -lane, undivided) arterial that extends to the Orange/Riverside County Line. A corresponding road was deleted from the Riverside County highway plan several years ago and an open space preserve was established by the City of Corona. Due to this lack of connectivity to Riversid e County and concerns of severe environmental and cultural impacts from construction in the Cleveland National Forest, the County does not intend to implement this planned facility.

Therefore, the County is requesting to delete Black Star Canyon Road from the MPAH.

The requested amendment does not adversely impact the MPAH and is, therefore, recommended for approval.

County – Reclassify Bucker Way

Bucker Way is an unbuilt facility in the Rancho Mission Viejo community that is currently classified on the MPAH as a future Secondary (four-lane, undivided) arterial. The County is requesting to reclassify Bucker Way as a Divided Collector (two -lane, divided) arterial between Ranch Canyon Road and Coyotes Road to provide the appropriate capacity needed for the anticipated travel demand and accommodations for active transportation.

Based on analysis by OCTA staff, using OCTAM 5.1, approximately 3,000 daily vehicle trips are forecasted on this segment in 2050. Since a divided collector can carry up to 15,000 daily vehicle trips while maintaining an acceptable level of service, the pro posed amendment provides sufficient capacity, and no trips are expected to be diverted to other facilities.

County Adminislralion South
601 North Ross Street
Santa Ana. CA 92701
P.O. Box 4048
Santa Ana, CA 92702
(714) 667-8800
[email protected]
OCPubl
icWorks.com
March 27, 2024
Mr. Kurt Brotcke, Director
Strategic Planning
"

ORANGE COUNTY
OC Public Works
Orange County Transportation Authority
550 South Main Street
Orange, CA. 92863-1584
Administrative
Services
Subject: MP AH Amendment Request for Santiago Canyon Road (SCR), El Toro Road, and Black Star Canyon Road
"' Deac M,. Brntcke,
OC Development
Services
OC Facilities Design
& Construction
Management
OC Facilities
Maintenance
& CUF
OC
Fleet Services
OC Construction
OC Environmental
Resources
OC Operations &
Maintenance
OC Infrastructure
Programs
OC Survey
On May 8, 2017, the Orange County Transportation Authority (OCTA) Board of Directors (Board) approved an amendment to the Master Plan of Arterial Highways (MPAH), which included three changes: reclassification of Santiago Canyon Road (SCR), deletion of the Jeffrey Road Extension, and deletion of Black Star Canyon Road between Silverado Canyon Road and the Orange County/Riverside County line. The approval was contingent upon fulfilling several requirements, including amending each agency's general plan. This amendment was based on a traffic study that recommended reclassifying SCR, from east of the State Route 241 and Live Oak Canyon Road, from a primary (four-lane, divided) to a collector (two-lane undivided). However, this recommendation did not secure approval from the Orange County Planning Commission.

Consequently, the County's General Plan was not amended, and the County's original MP AH Amendment request was indefinitely put on hold.

In 2023, Orange County Public Works (OCPW) embarked on another comprehensive Traffic Study for three roadways: SCR, El Toro Road, and Black Star Canyon Road. These roadway segments are situated within unincorporated Orange County, the City of Lake Forest, and the City of Mission Viejo. Please note that the deletion of the Jeffrey Road Extension is not included in our current request as it is not needed at this time. The outcome from our 2023 study for SCR diverges from the 2017 one and now takes precedence.

OCPW formally requests the withdrawal of the previous MP AH Amendment from 2017, and the initiation of a MP AH Amendment process for the segments of SCR, El Toro Road, and Black Star Canyon Road for the following modifications:
• Reclassify SCR between SR-241 and Live Oak Canyon Road from its currently planned designation as a Primary Arterial (four-lane divided roadway) to a Divided Collector (two-lane divided roadway with a center turn-lane)
• Reclassify El Toro Road (ETR) between Live Oak Canyon Road and Portola Parkway from its currently planned designation as a Major Arterial (six-lane divided roadway) to a Primary Arterial (four-lane divided roadway) with the exception that the southern end segment between Pheasant Creek and Portola Parkway remain at its current condition as an asymmetric Primary Arterial (five-lane divided roadway)

ATTACHMENT C

PHEASANT CREEK

LIVE OAKCYNIRVINE
VILLA
PARK
IRVINE
YALE
BAKE
ALTON

JAMBOREE

SANTIA GOCANYON

PORTOLA
BRYAN
CULVER

B ARRANCA

EL TORO

JEFFREY
HEW
ES

NEWPORT

SERRAN O
CANNON

IRVINE CENTER
WALNUT

SAND CANYON

BLACK STAR CANYON

CHAPMAN

TRABUCO

LAK EFOREST

MARINEWAY

NOH L RANCH

TUSTINRANCH
TOLEDO

CANYON VIEW

GLENN RANCH

QUAIL HILL

IMPERIAL
RANCHO

MUIRLANDS

VILLA PA RK

PORTOLA

JEFFREY

SANTIAGOCANYON

TRABUCO
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UNINCORPORATED
LAKE
FOREST

ANAHEIM
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ORANGE

MISSION
VIEJO
Source: OCTA
5/23/2024
W:\Requests\PDCS\SP\PA\MPAH\mxd\CountyAmendments_2024-0523.mxd 0 21
MilesZ
County of Orange MPAH Amendments

CONSTRUCTED

ROADWAYS

NOT CONSTRUCTED

ROADWAYS
Major Arterial
Primary Arterial
Secondary Arterial
Remove Black Star Canyon Road
an unconstructed secondary (four-lane, undivided) arterial between Silverado Canyon Road and
the Orange County/Riverside County Line.

Reclassify Santiago Canyon Road
from a Primary (four-lane, divided) arterial to a
Divided Collector (two-lane divided) arterial between
State Route 241 and Live Oak Canyon Road.

Proposed Removal
Proposed Reclassification
Reclassify El Toro Road
from a Major (six-lane, divided) arterial to a
Primary (four-lane divided) arterial between
Live Oak Canyon Road and Pheasant Creek.

Reclassify El Toro Road
from a Major (six-lane, divided) arterial to an
Asymmetric Primary (five-lane divided) arterial between Pheasant Creek and Portola Parkway.

Reclassify Villa Park Road
from a Major (six-lane, divided) arterial to an
Asymmetric Primary (five-lane divided) arterial between Hewes Street and Cannon Street.

March 25, 2024
601 North Ross Street, Santa Ana, CA 92701 www.ocpublicworks.com P.O. Box 4048, Santa Ana, CA 92702 714.667.8800 | [email protected] Consent Form
Project: MPAH Amendment Request for Santiago Canyon Road, El Toro Road, and Black Star Canyon Road
Lead: Orange County Public Works
Amendment:
• Reclassify Santiago Canyon Road (SCR) between SR-241 and Live Oak Canyon Road from its currently planned designation as a Primary Arterial (four-lane divided roadway) to a Divided Collector (two-lane divided roadway with a center turn-lane) • Reclassify El Toro Road (ETR) between Live Oak Canyon Road and Portola Parkway from its currently planned designation as a Major Arterial (six-lane divided roadway) to a Primary Arterial (four-lane divided roadway) with the exception that the southern end segment between Pheasant Creek and Portola Parkway remain at its current condition as an asymmetric Primary Arterial (five-lane divided roadway) • Delete Black Star Canyon Road (BSCR) between Silverado Canyon Road and the Orange County/Riverside County line.

Please select your response below:
☒ We, City of Lake Forest, grant consent to the subject MPAH Amendment Request, and are in support of OCPW being the lead agency in the Amendment efforts. ☐ We, _________________________, do not grant consent to the subject MPAH Amendment Request. Our reasons are attached as a separate page to this form.

April 9, 2024
Signature Date
Thomas E. Wheeler
Name (Print)
Public Works Director/City Engineer
Title

ATTACHMENT I

April 11, 2024
601 North Ross Street, Santa Ana, CA 92701 www.ocpublicworks.com P.O. Box 4048, Santa Ana, CA 92702 714.667.8800 | [email protected] Consent Form
Project: MPAH Amendment Request for Santiago Canyon Road, El Toro Road, and Black Star Canyon Road
Le
ad: Orange County Public Works
Am
endment:
• Reclassify Santiago Canyon Road (SCR) between SR-241 and Live Oak Canyon Road from its currently planned designation as a Primary Arterial (four-lane divided roadway) to a Divided Collector (two-lane divided roadway with a center turn-lane) • Re
classify El Toro Road (ETR) between Live Oak Canyon Road and Portola Parkway from its currently planned designation as a Major Arterial (six-lane divided roadway) to a Primary Arterial (four-lane divided roadway) with the exception that the southern end segment between Pheasant Creek and Portola Parkway remain at its current condition as an asymmetric Primary Arterial (five-lane divided roadway) • De
lete Black Star Canyon Road (BSCR) between Silverado Canyon Road and the Orange County/Riverside County line.

Pl
ease select your response below:
☒ We
, The City of Mission Viejo, grant consent to the subject MPAH Amendment Request, and are in support of OCPW being the lead agency in the Amendment efforts. ☐ We
, _________________________, do not grant consent to the subject MPAH Amendment Request. Our reasons are attached as a separate page to this form. ____ ______________
_ _____April 11, 2024___
Signature Date
__Ma
rk Chagnon_________________
Name (Print)
___D
irector of Public Works_________
Title

Attachment 3

October 21, 2024
Thomas E. Wheeler
Public Works Director/City Engineer
City of Lake Forest
100 Civic Center Drive
Lake Forest, CA 92630
Subject: City of Lake Forest – Master Plan of Arterial Highways Amendments – Approval Confirmation
Dear Mr. Wheeler,
On September 9, 2024, the Orange County Transportation Authority (OCTA) Board of Directors (Board) approved the following amendments to the Master Plan of Arterial Highways (MPAH) requested by the County of Orange and supported by the City of Lake Forest:

1. Reclassify Santiago Canyon Road from a primary (four-lane, divided) arterial to a divided collector (two-l ane, divided) arterial between State Route 241 and Live Oak Canyon Road.

2. Reclassify El Toro Road from a major (s ix-lane, divided) arterial to a primary (four-lane, divided) arterial between Live Oak Canyon Road and Pheasant Creek.

3. Reclassify El Toro Road, from a majo r (six-lane, divided) arterial to an asymmetric primary (five-lane, divide d) arterial between Pheasant Creek and Portola Parkway.

The staff report and Board meeting minutes from September 9, 2024, are attached for your records. The MPAH amendments will be finalized contingent upon OCTA receiving documentation confirming that the County of Orange and the City of Lake Forest have amended their general plans a ccordingly and have complied with the requirements of the California Environmental Quality Act. This documentation can be sent to the attention of Ivy Hang, Senior Transportation Analyst, at [email protected].

Sincerely,
Rose Casey
Executive Director, Planning
RC:ih
Attachment
c: Tran Tran, City of Lake Forest
Ivy Hang, OCTA
Sincererereeeereeeereeereeeeeerreeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeerely, RoRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR seeeeee CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCasey

Attachment 4

CITY COUNCIL AGENDA REPORT
MEETING DATE: 7/1/2025
DEPARTMENT: City Manager
SUBJECT:

STRATEGIC PLAN QUARTERLY UPDATE
RECOMMENDED ACTION(S):

Receive and file.

EXECUTIVE SUMMARY:

On June 20, 2023, the City Council approved the City’s Strategic Plan covering Fiscal Years 2023-24 through 2029-30 (“Strategic Plan”). The Strategic Plan includes major goals established by the City Council and a series of initiatives that facilitate progress towards each goal. The Strategic Plan’s Implementation Matrix includes 80 initiatives (Attachment 1). Each initiative has been assigned to a lead department and includes a description of the funding source. The Strategic Plan is updated every two years in conjunction with the development of the City’s two-year operating budget.

Each quarter, the City Manager’s Office provides an update to the City Council summarizing the progress made on the Strategic Plan during the preceding three months. This is the eighth quarterly report submitted to the City Council since the passage of the Strategic Plan in 2023. Since the Strategic Plan’s inception on June 20, 2023, the City has either started, completed or made substantial progress on all 80 of the initiatives in the Implementation Matrix. 52 of the 80 initiatives have been completed. A complete progress report for Year 2, Quarter 4 of the Strategic Plan is provided as Attachment 2.

BACKGROUND:

The City’s Strategic Plan was approved on June 20, 2023. The Strategic Plan was developed through a comprehensive public engagement process that included residents, each commission, and the City Council. The Strategic Plan includes three major goals:

Goal A – Our City is well-planned, attractive, and safe.

Goal B – Our connected City is engaged, informed, and technologically current.

Goal C – Our healthy City government is sustainable and well-run with committed people.

The Strategic Plan’s Implementation Matrix includes 80 initiatives that are assigned to one of the three goals. Each of these initiatives facilitate progress towards one of the goals.

DISCUSSION:

The City Manager’s Office actively manages the City’s Strategic Plan, receiving periodic reports from departments to assess the progress made towards plan goals. Since the Strategic Plan’s inception, the City has either started, completed, or made substantial progress on all 80 of the initiatives in the Implementation Matrix. The overall progress made on the Strategic Plan is illustrated in Attachment 2. The City Manager’s Office has selected 8 completed Strategic Plan initiatives to highlight for this quarterly report (Table 1).

Table 1: Year 2, Q4 Strategic Plan Quarterly Report
Initiative Description Update
Goal A: Our livable City is well-planned, attractive, and safe.

SP #14 – Shopping
Center Study
Procure consultant to
report on the City's
current shopping center
inventory and
recommend transition or
re-tenant options based
on shopper preferences
and other economic
trends.
**Attracting new
restaurants and stores is
the most common
specific suggestion
residents provide when
asked how the City can
improve the community
(pg. 5)**
Final Shopping Center
Study Report was
completed in May 2025
and presented before
the City Council. Based
on the study findings, the
City will implement
strategies that
incorporate findings,
respond to shopper
preferences, and
address economic
trends.

Initiatives in the 2025-
2032 update to the
Strategic Plan include
hiring a broker for retail
recruitment,
implementing city-wide
branding, and launching

Initiative Description Update
a Lake Forest Flavors
campaign.

SP #26 – Noise
Ordinance Update
Develop and implement
noise mitigation
strategies to protect
residents from excessive
exposure to noise.

Updated Noise
Ordinance was approved
on May 20, 2025,
following a public
hearing held May 6,
2025.

SP #50 – Emergency
Notification Strategy
Procure advanced
emergency notification
system to notify
residents and
stakeholders of
emergency evacuations.
**Residents remain
interested in emergency
preparedness in the
2023 Community
Satisfaction Survey (pg.
39)**
Launched campaign to
increase subscribers to
the City’s emergency
notification systems and
implemented biannual
mass mailing campaign
to residents in areas
most prone to fires.

Mailers included
information about the
"zone" residents are in.

Zone refers to the
evacuation zone that will
used during an
emergency.

Goal B: Our connected City is engaged, informed, and technologically current.

SP #51 – Modernize
Marketing Tools
Procure drone and
provide formal drone
pilot training to staff for
event and facility
marketing, implement
website chatbot, and
stream LFTV on City
website.
**Most residents are
satisfied with the City's
communication efforts
and increasingly rely on
social media and
electronic forms of
communication (pg. 60-
76)**
Procured advanced
equipment to bolster the
City’s communication
and marketing
capabilities including a
drone with pilot training
and the increased
utilization of software to
conduct informal
resident surveys.

Marketing tools to be
integrated in the City’s
upcoming website
update include a website
chatbot.

Initiative Description Update
Goal C: Our healthy City government is sustainable and well run with committed people.

SP #64 – Microsoft 365
Full Integration
Complete Microsoft 365
Implementation and
transition all conference
rooms to Teams-
compatible.

Completed the upgrade
of City Hall conference
rooms to be compatible
with Microsoft 365
Teams.

SP #68 – General Fund
Risk Reserve Policy
Update
Update the City's risk-
based reserves policy to
reflect long-term
strategic planning goals.

Policy updated and
approved with 2025-
2027 Operating Budget
on June 3, 2025.

SP #73 – Evaluate
Housing Authority
Elimination
Evaluate the potential
dissolution of the Lake
Forest Housing Authority
to reduce administrative
costs.

Evaluated the potential
dissolution of the Lake
Forest Housing Authority
and determined it is not
possible to do so per
state law. Report
findings presented at the
May 27, 2025, Audit
Committee meeting.

SP #80 – Law
Enforcement Staffing
Needs Evaluation
Develop standard for
assessing staffing needs
for the OCSD contract
and the potential of
adding two deputies with
an approximate first year
cost $900,000 and
$700,000 annually
thereafter.

Methodology and
standard to assess
staffing needs developed
through the work of a
Public Safety Ad Hoc
Committee composed of
Mayor Pro Tem
Pequeño and Council
Member Cirbo.

Methodology discussed
at May 20, 2025, City
Council meeting.

New law enforcement
agreement for FY 2025-
26 and 2025-2027
Operating Budget which
includes sufficient funds
to add one deputy each
year over the next two
fiscal years were
approved on May 20,

Initiative Description Update
2025, and June 3, 2025,
respectively.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

ATTACHMENTS:

1. 2023-24 – 2029-30 Strategic Plan

2. Strategic Plan Progress Report: Year 2, Q4
Initiated By: Nidia Ruelas, Assistant to the City Manager Submitted By: Debra Rose, City Manager
Approved By: Debra Rose, City Manager

ATTACHMENT 1

ATTACHMENT 2

Strategic Plan Quarterly Report
Year 2, Q4
Initiative # Initiative Title Initiative/Project Description Lead Department Estimated Completion Date Status SP#1 Lake Forest Transportation
Mitigation Program
Complete infrastructure projects that increase mobility and reduce congestion with Lake Forest Transportation Mitigation (LFTM) funds paid for by developments. - Lake Forest Rd & Rancho Pkwy (LFTM) (24T05)
- El Toro Rd & Portola Pkwy/Santa Margarita Pkwy (LFTM) (PW2019-03) - Bake Pkwy & Irvine Blvd/Trabuco Rd (LFTM) (PW2019-02) - Bake Pkwy & Jeronimo Rd (LFTM) (PW2020-04)
- Lake Forest Dr & Jeronimo Rd (LFTM) (24T06)
- Lake Forest Dr & Rockfield Blvd (LFTM) (PW2025-03)
- Los Alisos & Rockfield (LFTM) (24T0Z)
- Lake Forest Dr. & I-5 - not within City-limits (LFTM/NITM) - Bake Pkwy & Rockfield - not within City-limits (LFTM) Public Works FY 2021-22 - FY 2025-26 Substantial Progress SP#2 Meadows Traffic Mitigation
Program
Use Meadows Traffic Improvement Funds (MTIF) to manage impacts related to the Meadows development.
- Bake Pkwy/Baffin Bay Intersection Improvements (PW2020-19) - Bake Pkwy/Toledo Way Intersection Improvements (PW2020-18) Public Works FY 2022-23 - FY 2023-24 Substantial Progress SP#3 Foothill Circulation Phasing Plan
Utilize developer-funded Foothill Circulation Phasing Plan (FCPP) to make various transportation improvements that reduce congestion and improve traffic flow. - Los Alisos Blvd/Muirlands Blvd Intersection Improvements (24T08) - Jeronimo Rd Widening at El Toro Rd (PW2019-08)
- El Toro Rd Raised Medians from Jeronimo Rd to Trabuco Rd (PW2020-07) Public Works FY 2022-23 - FY 2023-24 Substantial Progress SP#4 New Traffic Circulation/Mobility
Projects
Projects which increase mobility and implement new approaches to traffic circulation. - Protective Permissive Left Turn Project (24T02)
- Increase Bike Lanes in Lake Forest
- Trabuco Rd Ascension Cemetery Left Turn Holding Pocket (24S03) Public Works FY 2021-22 - FY 2025-26 Substantial Progress SP#5 Traffic Signal Synchronization
Utilize grants and other transportation funds to complete traffic signal synchronization projects that provide more efficient traffic flow.
- Alton Pkwy (PW2020-16)
- Lake Forest Dr (18T03)
- Portola Pkwy (PW2020-15)
- Bake Pkwy and Rockfield Blvd (25T03)
- Irvine Blvd./Trabuco Rd (25T04)
Public Works FY 2021-22 - FY 2023-24 Substantial Progress SP#6 Maintain "Good" Pavement
Condition of the City's Roads
Construct pavement rehabilitation projects to repair and maintain the quality of the roads (# PW 2021-05A/B, # PW 2022-05A/B, # PW 2023-05A/B, # PW 2024-05A/B, # PW 2025-05A/B, # PW 2026-05A/B, # PW 2027-05A/B, # PW 2027-8-05A/B)(various projects to be changed upon CIP adoption)
Public Works FY 2021-22 - FY 2027-28 Substantial Progress SP#7 Traffic Operational Improvement
Study & Improvement Project
Study intersections throughout the City to consider operational improvements, such as dedicated turn lanes and other traffic flow improvements. **"Traffic congestion" is the highest rated community concern in the 2023 Community Satisfaction Survey (pg. 6 & 32)**
Public Works FY 2023-24 Started

Strategic Plan Quarterly Report
Year 2, Q4
Initiative # Initiative Title Initiative/Project Description Lead Department Estimated Completion Date Status SP#8 Nature Park to Meadows
Development Trail Connection
Trail Connection from Nature Park to Meadows Development Trail System - preliminary studies and concept.
**38% of residents would like to see more part amenities and additional trails was walking trails is a component of that category from 2023 Community Satisfaction Survey (pg. 6 & 32)**
Public Works FY 2024-25 Started
SP#9 Trabuco Road Improvements
-Trabuco Road/Ascension Cemetery Left Turn Holding Pocket Addition (24S03) -Trabuco Asphalt Trail Rehabilitation Project (24P16)
-Trabuco Road Resurfacing (24S01A)
**"Traffic congestion" is the highest rated community concern in the 2023 Community Satisfaction Survey (pg. 6 & 32)**
Public Works FY 2024-25 Completed
SP#10 Parking Enforcement
Procure private parking enforcement service to increase enforcement response and facilitate cleaner neighborhood streets and adjust staffing accordingly. **Parking issues remain a moderate to significant neighborhood concern for many residents in the 2023 Community Satisfaction Survey (pg. 48)**
City Manager/ Police Services FY 2023-24 Completed
SP#11 Arterial Median Improvement
Project
Installation of raised hardscaped medians would improve traffic safety. These locations include Trabuco Rd north of El Toro Rd, and on Rockfield Blvd south of Lake Forest Dr. (24S09)
Public Works FY 2023-24 Substantial Progress
SP#12 General Plan Implementation
Develop and implement programs to promote energy conservation in construction and transportation projects. Procure consultant to assist with implementing energy conservation and pollution reduction strategies.

Community Development FY 2023-24 Substantial Progress
SP#13 Commercial & Industrial
Property Alignment Study
Procure consultant and conduct study related to current and projected demand for commercial and industrial uses.
**Residents are interested in attracting new businesses, but concerned about impacts growth can have in 2023 Community Satisfaction Survey (pg. 20) Community Development FY 2023-24 Started
SP#14 Shopping Center Study
Procure consultant to report on the City's current shopping center inventory and recommend transition or re-tenant options based on shopper preferences and other economic trends.
**Attracting new restaurants and stores is the most common specific suggestion residents provide when asked how the City can improve the community (pg. 5)** Economic Development FY 2023-24 Completed
SP#15 Affirmatively Furthering Fair
Housing
Effectuate the City's AFFH Implementation Plan, which includes landlord, tenant, and developer education.
**Housing affordability and homelessness are key issues both businesses and residents cited in the 2023 Community Satisfaction Survey (pg. 5, 20-21)** Community Development FY 2023-24 Completed
SP#16 Affordable Housing
Opportunities Promotion
Market affordable housing opportunities to the community. **Housing affordability and homelessness are key issues both businesses and residents cited in the 2023 Community Satisfaction Survey (pg. 5, 20-21)** Management Services FY 2023-24 Completed

Strategic Plan Quarterly Report
Year 2, Q4
Initiative # Initiative Title Initiative/Project Description Lead Department Estimated Completion Date Status SP#17 New Franchise Agreement
Enter into new franchise agreement that incorporates State mandates with reasonable pricing for residents and businesses, rollout of new bins, and commercial bin inspection. **Most Lake Forest residents are aware of organics recycling requirements, but many cite barriers to compliance in 2023 Community Satisfaction Survey (pg. 49-57)** Public Works FY 2023-24 Completed
SP#18 Pilot Gap Housing Program
Expand non-profit administered pilot program providing "bridge" housing vouchers to prevent homelessness.
**Housing affordability and homelessness are key issues both businesses and residents cited in the 2023 Community Satisfaction Survey (pg. 5, 20-21)** City Manager FY 2023-24 Substantial Progress
SP#19 Legislative Advocacy
Procure multi-year government affairs contract to advocate for Lake Forest's interests at the State and Federal levels.
**Issues related to housing, homelessness, and infrastructure remain top concerns of Lake Forest residents and all have connections to State- and Federal-level policymaking. Issues are highlighted throughout 2023 Community Satisfaction Survey** City Manager FY 2024-25 Completed
SP#20 Taste of Lake Forest 2.0
Reintroduce "Taste of Lake Forest" with financial support from the Strategic Economic Investment Program for Fall 2023 and 2024.
**Promoting/advertising local businesses was the most common suggestions provided by residents on how the City can improve business climate (pg. 20)** Economic Development FY 2023-24 Completed
SP#21 Hotel Marketing Campaign
Procure marketing consultant to develop and initiate a "Stay in Lake Forest" marketing campaign to bolster occupancy rates and assist hotels recovering from the COVID-19 pandemic.
**Promoting/advertising local businesses was the most common suggestions provided by residents on how the City can improve business climate (pg. 20)** Economic Development FY 2023-24 In Transition
SP#22 Brewery Attraction
Grant/Microloan
Establish a brewery-focused grant or microloan program. **Attracting new restaurants is the most common specific recommendation residents have for the City and some desire more nightlife options in 2023 Community Satisfaction Survey (pg. 19-20)**
Economic Development FY 2024-25 Completed
SP#23 SEIP 2.0
Develop and present plan to reformulate the City's SEIP **Attracting new and promoting existing businesses remains a top resident suggestion for the City in the 2023 Community Satisfaction Survey (pg. 19-20)** Economic Development FY 2023-24 Completed
SP#24 Citywide Street Sign Refresh Create new street name sign design and replace street signs citywide, beginning in southwest Lake Forest. Public Works FY 2023-24 Substantial Progress

Strategic Plan Quarterly Report
Year 2, Q4
Initiative # Initiative Title Initiative/Project Description Lead Department Estimated Completion Date Status SP#25 Cavanaugh Park Upgrade Project
- Phase 1
Alterations to landscaping, grade, and retaining wall structure in response to Neighborhood Improvement Program outreach.
**Maintaining parks is one of the top three concerns residents have related to the Public Works Department in the 2023 Community Satisfaction Survey (pg. 6 & 32)** Public Works FY 2023-24 Completed
SP#26 Noise Ordinance Update Develop and implement noise mitigation strategies to protect residents from excessive exposure to noise. Community Development FY 2023-24 Completed SP#27 Southwest Lake Forest
Investment Projects
-El Toro Road Bus Shelter Renovations (24S04)
-Arterial Wall Enhancements in Southwest Lake Forest (24S06) -Ridge Route Median Improvement Projects (24S07)
-Cavanaugh Park Neighborhood Outreach Response Upgrades (25P08) -Audible Pedestrian Signals (25T01)
**Maintaining local roads, parks, and other infrastructure are top concerns for residents and businesses in 2023 Community Satisfaction Survey, along with improving the appearance of deteriorating areas (pg. 6-10, & 20)**
Public Works FY 2024-25 Substantial Progress
SP#28 Property Maintenance Volunteer
Program
Design and launch volunteer effort to provide landscaping and other basic maintenance services to low-income residents.
**Nearly half of Lake Forest residents cite lack of building upkeep and landscaping issues as neighborhood issue (pg. 48)**
Community Development FY 2024-25 In Transition
SP#29 Neighborhood Improvement
Task Force
Transition from pilot to long-term program for neighborhood improvement activities.

Procure multi-year outreach consulting contract and establish basic framework to be replicated.
**Nearly 2/3 of residents cite significant neighborhood issues that should be improved by the City, such as parking, lack of property maintenance, homelessness, and overcrowding (pg. 10 & 48)**
Community Development FY 2023-24 Substantial Progress
SP#30 Community Preservation
Program
Develop and implement new citywide community preservation program to assist residents in need who may be unable to address code violations, deteriorated property, and neglected maintenance.
**Almost half of residents surveyed reported that lack of property maintenance, noise, parking, and graffiti are having a negative impact on their neighborhood (pg. 48)** Community Development FY 2024-25 Started
SP#31 Arbor Mini Parks Reactivate Arbor Mini Parks through new uses, perimeter fencing, and new landscaping. (PW2019-17) Public Works FY 2023-24 Completed
SP#32 Lake Forest Nature Park & Lake
Forest Park Concept Design
Conduct public engagement campaigns for the redevelopment of Lake Forest Nature Park and Lake Forest Park and present conceptual plans for City Council consideration. (25P08) **Maintaining local roads, parks, and other infrastructure are top concerns for residents and businesses in 2023 Community Satisfaction Survey (pg. 6-10)** Management Services FY 2024-25 Completed

Strategic Plan Quarterly Report
Year 2, Q4
Initiative # Initiative Title Initiative/Project Description Lead Department Estimated Completion Date Status SP#33 Etnie's Skate Park Remodel
Concept Design
Procure specialist consultant and conduct public engagement campaign centered around changes to the Etnie's Skate Park and present conceptual plans for City Council consideration. (25P03)
**Maintaining local roads, parks, and other infrastructure are top concerns for residents and businesses in 2023 Community Satisfaction Survey (pg. 6-10)** Management Services FY 2024-25 Started
SP#34 Park Usability Enhancements
Public Works project to mitigate vandalism at public bathrooms in parks. Neighborhood outreach to assess usership of bathrooms by adjacent neighborhood. (25P14) **Maintaining local roads, parks, and other infrastructure are top concerns for residents and businesses in 2023 Community Satisfaction Survey (pg. 6-10)** Public Works/ Management Services FY 2024-25 Completed
SP#35 Heroes Park Sports Field
Renovations
Perform renovations at sports fields at Heroes Park, including irrigation, baseball field improvements, and leveling. (25P10)
**Maintaining local roads, parks, and other infrastructure are top concerns for residents and businesses in 2023 Community Satisfaction Survey (pg. 6-10)** Public Works FY 2024-25 Started
SP#36 Sports Park LED Lighting Study
Sports park lighting study to assess feasibility of lighting upgrades and potential cost savings. **Maintaining local roads, parks, and other infrastructure are top concerns for residents and businesses in 2023 Community Satisfaction Survey (pg. 6-10)** Public Works FY 2024-25 Completed
SP#37 Park Enhancements
Complete various significant maintenance or enhancement projects to retain the high- quality of the City's park facilities.
- Playground Resurfacing Projects
- Heroes Park Electrical Repairs and LED/Efficiency Upgrades (PW2023-08) - El Toro Lodge Pole Fencing Repairs (PW2021-09)
- Park Gazebo Repair & Replacement (PW2022-09)
- Replace synthetic fields installed in 2014 at the Lake Forest Sports Park (25P02) Public Works FY 2021-22 - FY 2024-25 Substantial Progress SP#38 Neighborhood Park Renovations -
Phase 3 Renovate Lake Forest Park and the Nature Park based upon a community input process Public Works FY 2024-25 Started SP#39 Heavyweight Vehicle Impact
Study
Procure consultant to produce a study highlighting the impact that heavy freight traffic has on the City's roadway network.
**Maintaining local roads, parks, and other infrastructure are top concerns for residents and businesses in 2023 Community Satisfaction Survey (pg. 6-10)** Public Works FY 2023-24 Completed
SP#40 Foothill Ranch Sport Rink
Conversion
Foothill Ranch Park – 1 Hockey Rink Conversion to Box Lacrosse **Providing recreation opportunities to a wide range of users is an important issue for residents in 2023 Community & Business Satisfaction Survey (pg. 6)** Management Services/ Public Works FY 2024-25 Started

Strategic Plan Quarterly Report
Year 2, Q4
Initiative # Initiative Title Initiative/Project Description Lead Department Estimated Completion Date Status SP#41 Pickleball Court Study
Study existing court offerings and potentially repurpose existing tennis and other courts to pickleball.
**Providing recreation opportunities to a wide range of users is an important issue for residents in 2023 Community & Business Satisfaction Survey (pg. 6)** Management Services/ Public Works FY 2024-25 Completed
SP#42 Community Focus Groups
Establish community-based focus groups to improve programming offerings to the public. **Providing recreation opportunities to a wide range of users is an important issue for residents in 2023 Community & Business Satisfaction Survey (pg. 6 & 34)** Management Services FY 2023-24 Completed
SP#43 Senior Mobility Program
Expansion
Expand marketing for Senior Mobility Program and add locations to increase participation. **Residents think providing recreational opportunities to various resident demographics is important and are appreciate services for seniors in 2023 Community Satisfaction Survey (pg. 6 & 34)**
Management Services FY 2023-24 Completed
SP#44 Special Needs Programming
Expand special needs programming to include resource fair and Special Olympics. **A majority of residents surveyed for the 2023 Community Satisfaction Survey stated providing special needs programming from Community Services was very or extremely important (pg. 6 & 34)**
Management Services FY 2024-25 Completed
SP#45 Golf Course & Equestrian Center
Lease Extensions
Negotiate lease extensions at Lake Forest Golf & Practice Center (expires January 2025) and Equestrian Center (expires August 2026) to continue program offerings and maintain strong relationships with tenants.

Economic Development FY 2025-26 Started
SP#46 Lake Forest Geofence
Complete implementation of Lake Forest geofence and procure mobile ALPR cameras. **Maintaining a low crime rate and investigating crimes are the most important issue related to Police Services for both residents and businesses in the 2023 Community Satisfaction Survey (pg. 6)**
Police Services FY 2023-24 Completed
SP#47 Neighborhood-based Emergency
Management Team
Merge existing Neighborhood Watch program with an emergency management-focused program to increase neighborhood familiarity with emergency response and evacuation procedures. Fire watch on foothills.
**Residents value the City's neighborhood watch efforts and remain interested in emergency preparedness in the 2023 Community Satisfaction Survey (pg. 39)** City Manager/ Police Services FY 2023-24 Completed
SP#48 E-Bike Public Awareness & Safety
Campaign
Public awareness campaign regarding e-bike regulations and collaborate with local schools to enhance rider safety.
**Improving public safety at/near parks and maintaining a low crime rate were important issues for residents in the 2023 Community Satisfaction Survey (pg. 6 & 37)** City Manager/ Police Services FY 2023-24 Completed
SP#49 Local Hazard Mitigation Plan Identify risks and vulnerability associated with natural disasters and develop long-term strategies for protecting people and property from future hazards. Community Development FY 2023-24 Completed

Strategic Plan Quarterly Report
Year 2, Q4
Initiative # Initiative Title Initiative/Project Description Lead Department Estimated Completion Date Status SP#50 Emergency Notification Strategy
Procure advanced emergency notification system to notify residents and stakeholders of emergency evacuations.
**Residents remain interested in emergency preparedness in the 2023 Community Satisfaction Survey (pg. 39)**
Police Services FY 2024-25 Completed
SP#51 Modernize Marketing Tools
Procure drone and provide formal drone pilot training to staff for event and facility marketing, implement website chatbot, and stream LFTV on City website. **Most residents are satisfied with the City's communication efforts and increasingly rely on social media and electronic forms of communication (pg. 60-76)** Management Services FY 2024-25 Completed
SP#52 Expand Holiday Lighting
Expand holiday lighting display along El Toro Road corridor. **Providing community events (and more of them) remains important to both residents and local businesses (pg. 6-7)**
Management Services FY 2024-25 Completed
SP#53 Etnie's Skate Park of Lake Forest
20th Anniversary Celebration
20th anniversary celebration of the Etnie's Skatepark of Lake Forest. **Providing community events (and more of them) remains important to both residents and local businesses (pg. 6-7)**
Management Services FY 2023-24 Completed
SP#54 Inaugural Lunar New Year
Produce the City's first Lunar New Year and Mid-Autumn Festival events - open to the community.
**Providing community events (and more of them) remains important to both residents and local businesses (pg. 6-7)**
Management Services FY 2023-24 Completed
SP#55 Accessibility Enhancements
Expand and preserve access to City Hall by analyzing how Census data may impact resident communication, increase disability accommodations, and provide other services to ensure broad community participation.

City Clerk FY 2022-23 Completed
SP#56 Citywide Translation Services Procure translation services for all City departments to ensure communications accommodate language needs. City Clerk FY 2023-24 Completed SP#57 Translation Services Policy Establish po licy related to language translation services at public meetings and gatherings. Cit y Clerk FY 2023-24 Completed SP#58 Passport Issuance Program Relaunch passport service provided by the City Clerk's Office City Clerk FY 2023-24 Completed SP#59 Youth in Government Day Partner with SVUSD and student organizations to institute Youth in Government Day City Clerk/ Manage ment Services FY 2023-24 Completed SP#60 Informal Resident Survey System
Procure informal resident survey system to gather quick feedback on neighborhood issues. **Most residents are satisfied with the City's communication efforts and increasingly rely on social media and electronic forms of communication (pg. 60-76)** Management Services FY 2023-24 Completed
SP#61 Digitalization of Community
Services
Modernize payment system for City events and programming, credit card payments for special events, and provide electronic submission of event applications and insurance. Management Services FY 2023-24 Started SP#62 Provide Convenient Access to
Permit and Other City Records
Link EnerGov to the City's Laserfiche system to provide the public with more convenient access to public records related to permits, property information, previous PRA's, etc. City Clerk FY 2023-24 Completed SP#63 Cyber Security Enhancement Establish new firewalls at Civic Center, Lake Forest Sports Park, and Etnie's Skate Park site and conduct cyber security assessment. Information Technology FY 2023-24 Completed

Strategic Plan Quarterly Report
Year 2, Q4
Initiative # Initiative Title Initiative/Project Description Lead Department Estimated Completion Date Status SP#64 Microsoft 365 Full Integration Complete Microsoft 365 Implementation and transition all conference rooms to Teams- compatible Information Technology FY 2024-25 Completed
SP#65 Building Services Modernization Use technology to enhance access to permitting, plan check, and building records for the public. Community Development FY 2023-24 In Transition
SP#66 Online Permitting Configure and implement online permitting a nd plan check review for solar-related permits. Community Devel opment FY 2023-24 Completed SP#67 Strategy for "One Time" Revenue Develop a strategy or policy with Audit Committee for determining how to appropriate one- time revenues (development fees, stimulus funds, etc.). City Manager/ Finance FY 2023-24 Started SP#68 General Fund Risk Reserve Policy
Update Update the City's risk-based reserves policy to reflect long-term strategic planning goals. Finance FY 2024-25 Completed SP#69 Biennial Fee Study Conduct a comparative analysis of City of Lake Forest fees vs fees charged for similar services in nearby communities. Finance FY 2020-21 - FY 2024-25 Completed SP#70 Non-Functional Turf Removal
Study
Study locations within the City where non-functional turf could be replaced with different drought tolerant landscaping, improving water conservation and efficiency. **Residents consistently rank maintaining public landscaping as a top issue for services provided by the Public Works Department (pg. 32)**
Public Works FY 2024-25 Completed
SP#71 Upgrade Community Facility
Amenities
Procure a fold-away dance floor and decorations, moving lights, piano, and spider box to accommodate more events that sustain facility rental revenue. Management Services FY 2024-25 Completed SP#72 Payroll Insourcing Study &
Implementation
Produce analysis comparing in-house payroll processing costs vs outsourced arrangement and implement in-house system if financially justified. Finance FY 2024-25 Completed SP#73 Evaluate Housing Authority
Elimination
Evaluate the potential dissolution of the Lake Forest Housing Authority to reduce administrative costs. Finance FY 2024-25 Completed
SP#74 Implement New Procurement
System Implement new procurement system that accommodates the City's internal processes. Finance FY 2023-24 Completed SP#75 Contract Staffing Policy Develop and implement policies that preserve the City's ability to effectively manage services provided by contract staff. City Manager/ Management Services FY 2023-24 Completed SP#76 Enhanced Internal Survey System Procure enhanced employee survey system to track the productivity and wellbeing of Lake Forest workforce. City Manager/ Management Services FY 2023-24 Completed SP#77 Lake Forest Research &
Development Team
Internal team of emerging leaders to research, develop, and recommend key policy initiatives. City Manager FY 2023-24 Completed
SP#78 Modernize Recruitment System Advertise job opportunities on contemporary platforms and establish a remote interview process. City Manager/ Management Services FY 2023-24 Completed SP#79 Succession Planning Implement employee growth program that includes formal stretch assignments, dev
elopment tracking, and cross-departmental learning opportunities. City Manager/ Management Services FY 2024-25 Substantial Progress

Strategic Plan Quarterly Report
Year 2, Q4
Initiative # Initiative Title Initiative/Project Description Lead Department Estimated Completion Date Status SP#80 Law Enforcement Staffing Needs
Evaluation
Develop standard for assessing staffing needs for the OCSD contract and the potential of adding two deputies with an approximate first year cost $900,000 and $700,000 annually thereafter.

City Manager/ Police Services FY 2023-24 Completed

Strategic Plan Quarterly Report
Year 2, Q4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
In Transition 22223
Completed 3 1 21 73 03 33 83 95 2
Substantial Progress 18 22 27 23 21 20 19 14
Started 14 22 21 15 14 14 14 11
Not Started 45 24 15 10 10 6 6 0
0 10
20 30
40 50
60 70
80 Overall Progress (Quarterly)

Strategic Plan Quarterly Report
Year 2, Q4
0 10
20 30
40 50
60 Goal A Goal B Goal C
Goal Progress to Date, Y2, Q4
Not Started Started Substantial Progress Completed In Transition

CITY COUNCIL AGENDA REPORT
MEETING DATE: 7/1/2025
DEPARTMENT: City Manager
SUBJECT:

LEGISLATIVE AND REGULATORY MATTERS
RECOMMENDED ACTION(S):

1. Receive and file a report summarizing legislative and regulatory matters with the potential to impact the City of Lake Forest.

2. Adopt policy positions recommended by staff on various legislation with the potential to impact the City of Lake Forest.

EXECUTIVE SUMMARY:

As part of its Legislative and Regulatory Program, the City Council adopts a Legislative and Regulatory Platform before the State’s Legislative Session starts.

This platform contains policy guidelines rooted in the preservation of local control and municipal financial independence. The City Council adopted the 2025-2027 Legislative and Regulatory Platform (Attachment 1) on January 7, 2025.

This report provides a summary of proposed legislation with the potential to significantly impact the operations, financial position, or decision-making capacity of the City of Lake Forest. The complete bill texts for each of the bills summarized below are included as Attachment 2. Each summary below includes a staff recommendation on whether the City Council should support or oppose the legislation. The positions and recommendations from CalCities and the Association of California Cities – Orange County (“ACC-OC”) are also included if a position has been adopted or specified. Aside from CalCities and ACC-OC, Orange County Business Council (“OCBC”) and Orange County Council of Governments (“OCCOG”) have released positions on select legislation. If a position was taken by either organization, it is noted below the summary.

This item was continued from the May 6, 2025, City Council meeting. The Legislative Ad Hoc Committee, composed of Mayor Scott Voigts and Council Member Mark Tettemer, met on June 6, 2025, to receive a legislative update and provide comment on items presented on May 6, 2025. The status of each bill, positions and recommendations from other agencies, and staff recommendations have been updated to reflect any changes or updates since May 2025.

Emergency and Disaster Management
Assembly Bill 226
Title: California FAIR Plan Association.

Authors: Assembly Members Calderon and Alvarez
Staff Recommendation: Support
CalCities Position: Watch
ACC-OC Position: Support
Status: 2nd House – Policy Committee
AB 226 would authorize the California FAIR Plan Association to request that the California Infrastructure and Economic Development Bank issue bonds to finance the costs of claims, increase liquidity and claims-paying capacity of the association, and refund bonds previously issued for that purpose. This bill does not impose direct requirements on local governments, but it could indirectly benefit Lake Forest residents by stabilizing the FAIR Plan’s capacity to insure residential and commercial properties in high-risk fire zones.

This bill is also supported by OCBC.

Housing and Community Development
Assembly Bill 650
Title: Planning and zoning: housing element: regional housing needs allocation.

Author: Assembly Member Papan
Staff Recommendation: Support
CalCities Position: Sponsor
ACC-OC Position: Support
Status: 2nd House – Policy Committee
The City of Lake Forest faced several challenges in getting our housing element certified. While our Community Development Department drafted a complete draft document initially in September of 2021, responded promptly and completely to all HCD comments, and maintained open and professional communication with the City’s representative at HCD, it took significant time to achieve compliance. This was primarily due to factors including unclear guidance, changing criteria or standards during a process, conflicting corrections, and extended review timeframes by HCD which delayed the City’s progress and made it more difficult to achieve the common goal of a certified Housing Element.

AB 650 would help address some of these issues by allowing local governments to begin updating a housing element six months earlier. The bill would also require HCD to provide specific text and analysis that must be included in the housing element to remedy deficiencies, ensuring that local governments are not

penalized when HCD identifies additional deficiencies not previously identified in prior review letters. This bill is also supported by OCCOG.

Assembly Bill 1206
Title: Single-family and multifamily housing units: preapproved plans.

Author: Assembly Member Harabedian
Staff Recommendation: Oppose
CalCities Position: Oppose Unless Amended
ACC-OC Position: Oppose
Status: 2nd House – Policy Committee

AB 1206 would require all local jurisdictions by July 1, 2026, to develop a program for preapproval of single-family and multifamily residential housing plans. In addition, the measure would require local agencies to ministerially approve within 30 days of receiving a completed application for a preapproved single-family and multi-family plan. Preapproved plans for larger, more complex structures are not feasible with California's varying local climactic, geographic, and topographic conditions. As a result, a one-size-fits-all approach for single family and multi-family housing will not be feasible at the local level and will reduce local authority over planning decisions.

Assembly Bill 609
Title: California Environmental Quality Act: exemption: housing development projects.

Authors: Assembly Members Wicks, Alvarez, Carrillo, Flora, Quirk-Silva, and Wilson
Staff Recommendation: Support
CalCities Position: Watch
ACC-OC Position: Support
Status: 2nd House – Policy Committee
AB 609 would exempt eligible infill housing projects from CEQA requirements if they meet specific conditions related to size, density, and location. Specifically, qualifying developments must be 20 acres or less, meet density requirements, and not be located in sensitive areas such as coastal zones, wetlands, or hazardous sites. The bill would also require a local government, as a condition of approval, to have the development proponent complete a Phase I Environmental Assessment related to potential hazardous substance releases on the site. This bill is also supported by OCBC and OCCOG.

Recovery Housing
Senate Bill 35
Title: Alcohol and drug programs.

Author: Senator Umberg

Staff Recommendation: Support
CalCities Position: Sponsor
ACC-OC Position: Support
Status: 2nd House – Policy Committee
SB 35 would enhance the oversight and enforcement of existing state licensing laws for alcohol and drug treatment facilities. A recent state audit revealed that the California Department of Health Care Services (“DHCS”) has not consistently investigated allegations of unlicensed facilities providing or advertising treatment services. To address these gaps, the auditor recommended that the DHCS improve the timeliness of inspections and complaint investigations, conduct more site visits, and establish follow-up procedures to ensure unlicensed facilities cease unlawful operations. SB 35 would implement these recommendations by requiring the DHCS to meet specific timelines for investigating allegations of unlicensed treatment services.

Senate Bill 329
Title: Alcohol and drug recovery or treatment facilities: investigations.

Authors: Senators Blakespear and Umberg
Staff Recommendation: Support
CalCities Position: Sponsor
ACC-OC Position: Support
Status: 2nd House – Policy Committee
SB 329 would require the DHCS to complete timely investigations into complaints about alcohol or drug treatment facilities. While existing law requires DHCS to investigate complaints against licensed alcohol and drug treatment facilities, it does not establish timelines for completing those investigations. This bill will create clear, reasonable deadlines – aligned with existing DHCS policy – to enhance public transparency and ensure providers are held accountable for delivering high-quality treatment and care. This bill is coauthored by Assembly Member Dixon.

Assembly Bill 424
Title: Alcohol and other drug programs: complaints.

Author: Assembly Member Davies
Staff Recommendation: Support
CalCities Position: Sponsor
ACC-OC Position: Support
Status: 2nd House – Policy Committee
AB 424 would require the DHCS to provide status updates to individuals who have filed a complaint against a licensed alcohol or drug treatment facility. More specifically, the DHCS will be required to notify individuals at three key points:
when their complaint is received when the investigation concludes, and the

outcome of the investigation. Currently, DHCS does not automatically provide this information. Instead, complainants must file a Public Records Act request, which can take months or even sometimes over a year to receive a response. AB 424 would help cities stay informed and support a more transparent oversight process.

Assembly Bill 492
Title: Alcohol and drug programs: licensing.

Author: Assembly Member Valencia
Staff Recommendation: Support
CalCities Position: Sponsor
ACC-OC Position: Support
Status: 2nd House – Fiscal Committee
Currently, the DHCS is not required to notify local governments when approving licenses for new alcohol and drug treatment facilities. AB 492 will require the DHCS to notify cities of these facilities. Similar notification requirements are already in place for liquor licenses, cannabis businesses, and syringe exchange programs. This bill will enable cities to better coordinate services and identify emerging trends and potential gaps in the State’s approach to treatment needs.

This bill is coauthored by Assembly Member Dixon.

Transportation and Public Safety
Assembly Bill 544
Title: Electric bicycles: required equipment.

Author: Assembly Member Davies
Staff Recommendation: Support
CalCities Position: Support
ACC-OC Position: Not Specified
Status: 1st House – Fiscal Committee
AB 544 would expand safety requirements for electric bicycles (e-bikes) by requiring them to be equipped at all times with a red rear reflector or red light with a built-in reflector that is visible from 500 feet. The bill also updates helmet requirements for minors operating e-bikes. Requiring minors to wear helmets aligns with existing safety regulations for traditional bicycles and motorcycles, reinforcing the importance of protective gear in preventing serious head injuries.

Additionally, requiring e-bikes to be equipped with proper rear lighting or reflectors is essential for visibility, especially in low-light conditions, thereby reducing the risk of collisions.

Assembly Bill 545
Title: Electric bicycles: required equipment.

Author: Assembly Member Davies

Staff Recommendation: Support
CalCities Position: Track
ACCOC Position: Not Specified
Status: 2nd House – Fiscal Committee
AB 545 would expand existing restrictions on tampering with e-bikes by prohibiting the sale of an application that can modify an e-bike’s speed capability such that it no longer meets the legal definition of an electric bicycle. Current law already prohibits the sale of products or devices used for this purpose. By closing this gap, AB 545 strengthens enforcement against illegal modifications and supports the safe operation of e-bikes in accordance with state law.

Assembly Bill 965
Title: Vehicles: electric bicycles.

Author: Assembly Member Dixon
Staff Recommendation: Support
CalCities Position: Track
ACC-OC Position: Not Specified
Status: 2nd House – Policy Committee
AB 965 would ban the sale of class 3 e-bikes to individuals under 16 years of age. Existing law already prohibits individuals under 16 from operating a class 3 e-bike, which are a category of e-bikes that can reach a maximum speed of 28 mph with pedal assistance. However, current statute does not restrict the sale of class 3 e-bikes to persons under the age of 16. This bill would close that gap by making it an infraction, punishable by a fine of up to $250.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended actions.

ATTACHMENTS:

1. 2025-2027 Legislative and Regulatory Platform

2. Bill Texts
Initiated By: Sofia de Melo, Intern
Submitted By: Nidia Ruelas, Assistant to the City Manager Approved By: Debra Rose, City Manager

ATTACHMENT 1

2 CITY OF LAKE FOREST
2025-2027 LEGISLATIVE AND REGULATORY PLATFORM
I. INTROD
UCTION
Th
e Legislative and Regulatory Platform (“Platform”) defines the City's Policy guidelines and provides the foundation for advocacy efforts at the federal, state, and local levels. Staff uses this Platform to identify relevant topic areas and subject matter, and makes recommendations to City Council on specific legislation or regulations consistent with the policy guidelines. Additionally, in the event it is necessary for the City to respond to a legislative proposal in a timeframe that does not allow the City Council to take formal action, staff would express positions on bills in accordance with these guidelines, and then seek City Council direction at the appropriate time.

II. GUIDING

PRINCIPLES

1. Support Public Safety
Sup
port legislation or regulations that provides the City with the ability to maintain high-level public safety for its residents and businesses. Support measures and initiatives that preserve law enforcement action that provide residents with the safety needed to achieve a desirable quality of life. Oppose efforts that would diminish the City’s ability to properly fund its police services.

2. Preserve Local Control
Preserv
e and protect the City’s powers, duties, and prerogatives to enact local legislation and policy direction concerning local affairs and oppose legislation or regulations that preempts local authority. Oppose measures that seek to preempt or degrade local control.

3. Fiscal Responsibility and Economic Development
Supp
ort measures that promote fiscal stability, financial independence, preserve the City’s revenue base, and maximum local control over local government budgeting. Oppose measures that shift local funds to the county, state, or federal governments and/or make cities more dependent on the county, state, or federal governments for financial stability.

4. Housing and Land Use

3 Support legislation or regulations that preserves local authority and flexibility in housing and land use regulations to safeguard community character, health, and safety. Oppose legislation or regulations that would hinder the unique needs and priorities of the community or negatively affect local governance or property rights.

5. Environment

Support legislative and regulatory measures that prioritize responsible resource management and local autonomy in environmental regulation.

Advocate for streamlined regulatory processes that reduce unnecessary bureaucracy. Oppose policies that impose undue restrictions on local decision-making and limit the availability of diverse energy options.

III. POLICY STATEMENTS

1. Public Safety

• The City opposes any state or federal mandates that would undermine local decision-making in critical areas in Public Safety. • The City supports legislation or regulations to address safety concerns related to e-bikes, fentanyl, and retail theft mitigation. • The City supports legislation or regulations that would help to fund regional transportation projects that sustain the City’s regional public safety model.

2. L ocal Control

• The City supports legislation or regulations that lead to greater financial independence from federal, state and/or county government, and protect local resources from seizure by federal, state and/or county agencies.
• The City supports legislation or regulations maintaining maximum local flexibility in all areas of its responsibility and operations and opposes legislation that imposes intrusive, unnecessary, or unfunded state- imposed mandates or preempts local authority.
• The City opposes legislation or regulations that make the City more dependent on federal, state, and/or county government or agencies for policy direction.

4 • The City opposes legislation or regulations to limit the City’s ability to contract for municipal services.
• The City opposes any legislation or regulations that are inconsistent with the doctrine of home rule, interferes with local exercise of police powers over local land use, or requires a federal, state, and/or county entity to develop model planning practices and policies. • The City supports legislation or regulations that bolster programmatic and grant funding available for local governments to access in order to fund infrastructure projects, or other improvements which would benefit the community, including federal Community Project Funding/ Congressionally Directed Spending.
• The City supports maximum flexibility with regard to expending grant funds that address economic recovery associated with public health declarations, natural disasters, and other emergencies, as well as the other needs of the City in which grant funds can be utilized.

3. F iscal Responsibility and Economic Development

• The City supports bills that would lower taxation rates for businesses and residents.
• The City opposes legislation , regulations, or ballot initiatives that would alter the legislative intent of Proposition 13, including a split real- property tax roll that would affect commercial property and any amendment that would affect residential property.
• The City Council opposes efforts by the State Legislature to assess taxes on public goods and services such as water and electricity. • The City opposes legislation that would lower the vote threshold as a method to impose new taxes or create new financing opportunities. • The City supports efforts to reestablish the authority and financing capability previously afforded to local governments by redevelopment through legislation or regulations designed to support businesses through economic development and the City supports efforts to facilitate economic development efforts that enhance opportunities for local businesses.
• The City supports legislation or regulations that would amend existing law to ensure that prevailing wage rates do not impede its ability to pursue small-dollar projects and lower operating costs.

5 • The City supports policies that prioritize private sector investment and economic development. The City opposes the imposition of stringent regulations that could stifle business innovation, hinder economic growth, or discourage investment in the community.

4. H
ousing and Land Use

• The City supports efforts to amend the current occupancy calculation in the Uniform Housing Code (“UHC”) to achieve a more reasonable standard, thereby, improving the health, safety, and residential character of our community.
• The City supports efforts, at both the federal and state level, to provide local agencies with regulatory tools related to short-term rentals and other uses in residential areas that may affect the quality of life. • The City supports the continuation and funding of federal housing assistance programs, such as vouchers or rental assistance, including those funded through existing grant programs such as the Community Development Block Grant (“CDBG”).

5. Transportation

• The City supports funding for investments in transportation which aim to reduce traffic and pollution; including investments in roads, public transportation networks, mass transit systems such as rail, and bicycle/ pedestrian infrastructure, such as funding for project design, construction, and maintenance.

6. Environment

• The City supports modification to the California Environmental Quality Act (“CEQA”) and the National Environmental Policy Act (“NEPA”) to eliminate duplicative and unnecessary provisions of the existing law. • The City supports legislative and regulatory efforts that reduce or delay the financial and compliance impacts of State-mandated organics recycling.
• The City opposes Municipal Separate St orm Sewer System (“MS4”) permit requirements that impose undue costs or burdens on municipalities or limit local flexibility in managing stormwater pollution.

6 • The City opposes gas to electric transition efforts that would impose undue financial burdens for residents, local businesses, and property owners.
• The City supports legislation or regulations to lengthen the duration of National Pollutant Discharge Elimination System (“NPDES”) permits for stormwater discharge under the Clean Water Act (“CWA”) from five (5) to ten (10) years, and strengthening federal programs designed to assist municipalities in achieving NPDES permit compliance.

7. S
ocial and Demographics

• The City supports religious freedom and legislation or regulations protecting religious freedom at both the state and federal level. • The City supports legislation or regulations that advance the practice or policy of favoring individuals in hiring and similar contexts based solely on abilities and personal merits, including education, skills, experience, and other similar factors.

8. Wild
life and Natural Disaster

• The City supports legislation and regulations which puts safeguards on and curbs the cost of homeowners insurance premium increases and the cancellation of insurance, on account of wildfire and other natural disasters.

IV. LEGISLATIVE DIRECTION

• Staff may continue to advocate a position for a bill which has been amended into a new bill number as long as the language and intent remain substantially unchanged.

• The City shall monitor and take into consideration the strategic goals and positions adopted by local and regional agencies, including but not limited to the following:

 Association of California
Cities – Orange County (ACC-
OC)
 County of Orange
 El Toro Water District (ETWD)
 Irvine Ranch Water District
(IRWD)
 League of California Cities
(CalCities)

7  Orange County-American
Planning Association (OC-
APA)
 Orange County Business
Council (OCBC)
 Orange County Council of
Governments (OCCOG)
 Orange County Fire Authority
(OCFA)
 Orange County Sheriff’s
Department (OCSD)
 Orange County Transportation
Authority (OCTA)
 South Coast Air Quality
Management district (South
Coast AQMD)

V. LEGISLATIVE PROCEDURES

1) Develop and adopt a legislative and regulatory platform every two years based on the long-term strategic vision and current needs of the City.

2) Monitor and analyze proposed legislative and regulatory matters to determine effects on the City’s municipal operations and service to its residents and businesses.

3) Staff will stay up to date on legislative and regulatory matters relevant to their respective department.

4) Present legislative and regulatory matters to the City Council periodically throughout the legislative calendar.

5) Communicate the City’s position on proposed legislation or regulations through letters of support or opposition for legislation or regulations that is impactful to the City.

6) Work regularly with state and federal lobbyists to ensure that the City’s voice is well represented.

ATTACHMENT 2

AMENDED IN SENATE JUNE 16, 2025
AMENDED IN SENATE MAY 29, 2025
california legislature—2025–26 regular session
ASSEMBLY BILL No. 226
Introduced by Assembly Members Calderon and Alvarez
(Principal coauthors: Assembly Members Bryan, Harabedian, Irwin, Schiavo, Schultz, and Zbur)
(Coauthors: Assembly Members Addis, Berman, Connolly,
Elhawary, Ortega, Pellerin, Ransom, Sharp-Collins, and Stefani) (Coauthor: Senator Strickland)
January 9, 2025
An act to add Section 63087.5 to, and to add Article 11 (commencing with Section 63049.75) to Chapter 2 of Division 1 of Title 6.7 of, the Government Code, and to add Section 10100.3 to the Insurance Code, relating to insurance, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.
legislative counsel’s digest
AB 226, as amended,
Calderon. California FAIR Plan Association.

The California FAIR Plan Association is a joint reinsurance association in which all insurers licensed to write basic property insurance participate in administering a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels. Existing law requires the association’s plan of operation and any amendment to the plan to be approved by the Insurance Commissioner. Existing law establishes the California Infrastructure and Economic Development Bank and

97

authorizes it to issue bonds to provide funds for the payment of costs of a project for a participating party or upon request by a state entity.

This bill would authorize the association, if granted prior approval from the commissioner, to request the California Infrastructure and Economic Development Bank to issue bonds, and would authorize the bank to issue those bonds to finance the costs of claims, to increase liquidity and claims-paying capacity of the association, and to refund bonds previously issued for that purpose. The bill would specify that the association is a participating party and that financing all or any portion of the costs of claims or to increase liquidity and the claims-paying capacity of the association is a project for bond purposes.

The bill would authorize the bank to loan the proceeds of issued bonds to the association, and would authorize the association to enter into a loan agreement with the bank and to enter into a line of credit agreement or other agreement
This bill would require the association, if the above-described bonds, loan agreements, or lines of credit received the prior approval of the commissioner, and if the association is unable to timely and fully meet its repayment obligation, to assess members in the amounts and at the times necessary to timely pay in full all obligations of the association with respect to those bonds, loan agreements, lines of credit, and other agreements, as specified. The bill would authorize the association to secure those bonds, loan agreements, lines of credit, and other agreements by a statutory lien, as specified.

Existing law establishes the California Infrastructure and Economic Development Bank Fund, a continuously appropriated fund, for the purpose of implementing the objectives of the bank.

To the extent that the bill would result in additional revenues being deposited into the California Infrastructure and Economic Development Bank Fund, the bill would make an appropriation.

This bill would declare that it is to take effect immediately as an urgency statute.

V ote: 2⁄3.

Appropriation: yes. Fiscal committee: yes.​
State-mandated local program: no.​
The people of the State of California do enact as follows:
line 1 SECTION 1. Article 11 (commencing with Section 63049.75) line 2 is added to Chapter 2 of Division 1 of Title 6.7 of the Government line 3 Code , to read:
97 — 2 — AB 226

line 1 Article 11. California FAIR Plan Association Financing line 2
line 3 63049.75. (a)  Notwithstanding any other provision of this line 4 division, pursuant to Section 10100.3 of the Insurance Code and line 5 upon approval of the bank, a financing of the costs of claims or to line 6 increase liquidity and claims-paying capacity upon the request of line 7 the California FAIR Plan Association shall be deemed to be in the line 8 public interest and eligible for financing by the bank. Article 3 line 9 (commencing with Section 63040), Article 4 (commencing with line 10 Section 63042), Article 5 (commencing with Section 63043), line 11 Article 5.5 (commencing with Section 63047.1), Article 6 line 12 (commencing with Section 63048), Article 6.3 (commencing with line 13 Section 63048.55), Article 6.5 (commencing with Section 63048.6), line 14 Article 6.7 (commencing with Section 63048.91), Article 7 line 15 (commencing with Section 63049), Article 8 (commencing with line 16 Section 63049.6), Article 9 (commencing with Section 63049.67), line 17 and Article 10 (commencing with Section 63049.70) shall not line 18 apply to that financing provided by the bank.
line 19 (b)  Notwithstanding any other provision of this division, the line 20 bank shall not have authority over any matter that is subject to the line 21 approval of, or otherwise regulated by, the Insurance Commissioner line 22 under Part 1 (commencing with Section 1880) of Division 2 of the line 23 Insurance Code. The bank shall have the right to enforce all line 24 obligations of the California FAIR Plan Association under the line 25 agreements relating to bonds issued under this section. line 26 (c)  The bank may issue taxable or tax-exempt bonds pursuant line 27 to Chapter 5 (commencing with Section 63070) to finance the costs line 28 of claims or to increase liquidity and claims-paying capacity of line 29 the California FAIR Plan Association, and to refund bonds line 30 previously issued for that purpose, and may loan the proceeds line 31 thereof to the California FAIR Plan Association. Bond proceeds line 32 may also be used to fund necessary reserves, capitalized interest, line 33 credit or liquidity enhancement costs, and costs of issuance. line 34 (d)   Bonds issued under this section shall not be deemed to line 35 constitute a debt or liability of the state or of any political line 36 subdivision thereof, other than the bank, or a pledge of the faith line 37 and credit of the state or of any political subdivision, but shall be line 38 payable solely from the revenues and assets securing the bonds. line 39 All bonds issued under this article shall contain on the face of the line 40 bonds a statement to that effect.
97 AB 226 — 3 —

line 1 SEC. 2. Section 63087.5 is added to the Government Code, line 2 immediately following Section 63087 , to read:
line 3 63087.5. For purposes of this chapter:
line 4 (a)   “Participating party” includes the California FAIR Plan line 5 Association.
line 6 (b)  “Project” has the same meaning as defined in Section 63010, line 7 and also includes financing all or any portion of the costs of claims line 8 or to increase liquidity and the claims-paying capacity of the line 9 California FAIR Plan Association in an amount, together with line 10 necessary reserves, capitalized interest, credit or liquidity line 11 enhancement costs, or costs of issuance, that may be determined line 12 by the California FAIR Plan Association, with prior approval from line 13 the Insurance Commissioner, in a request to the bank made line 14 pursuant to Section 63049.75.
line 15 SEC. 3. Section 10100.3 is added to the Insurance Code, line 16 immediately following Section 10100.2 , to read:
line 17 10100.3. (a)  If granted prior approval from the commissioner, line 18 the association may do all of the following:
line 19 (1)   Request the California Infrastructure and Economic line 20 Development Bank to issue bonds from time to time to finance all line 21 or any portion of the costs of claims or to increase liquidity and line 22 claims-paying capacity, pursuant to Section 63049.75 of the line 23 Government Code.
line 24 (2)  Enter into loan agreements with the California Infrastructure line 25 and Economic Development Bank, pursuant to Section 63049.75 line 26 of the Government Code.
line 27 (3)  Enter into line of credit agreements with one or more entities line 28 for the purpose of financing the costs of claims or to increase line 29 liquidity and claims-paying capacity and to refund lines of credit line 30 previously incurred for that purpose.
line 31 (4)  Secure those loan agreements, line of credit agreements, or line 32 agreements described in paragraph (5) by a pledge of, and the grant line 33 of a lien and security interest in, collateral, which may include line 34 premiums, revenues, receivables, assessments, and any other assets line 35 of the association. That pledge, lien, and security interest is subject line 36 to Division 9 (commencing with Section 9101) of the Commercial line 37 Code.
line 38 (5)   Enter into any other agreement or take any other action line 39 necessary or convenient to the execution and delivery of bonds, line 40 loan agreements, or line of credit agreements.
97 — 4 — AB 226

line 1 (b)  (1)  If the bonds, loan agreements, or lines of credit described line 2 in subdivision (a) have received the prior approval of the line 3 commissioner as provided in subdivision (a), and if the association line 4 is otherwise unable to timely and fully meet its repayment line 5 obligation, the association shall assess members in the amounts line 6 and at the times necessary to timely pay in full all obligations of line 7 the association with respect to those bonds, loan agreements, lines line 8 of credit, and all obligations of the association under agreements line 9 entered into pursuant to paragraph (5) of subdivision (a). line 10 (2)   The FAIR Plan shall not act pursuant to this subdivision line 11 without the prior review and approval of the commissioner. line 12 (c)  (1)  Once approved by the commissioner, specific repayment line 13 terms shall not be altered by subsequent amendment to the plan line 14 of operation, and amendments to the plan of operation shall not line 15 impair the timely payment in full of any obligations of the line 16 association with respect to those bonds, loan agreements, lines of line 17 credit, and all obligations of the association under agreements line 18 entered into pursuant to paragraph (5) of subdivision (a). line 19 (2)  The state shall not alter, amend, or restrict the provisions of line 20 this section in a manner adverse to the rights and interests of line 21 bondholders, credit providers, or other parties who have entered line 22 into bonds, line of credit agreements, or other agreements pursuant line 23 to paragraph (5) of subdivision (a), for so long as the bonds, lines line 24 of credit, or other agreements pursuant to paragraph (5) of line 25 subdivision (a) remain outstanding. This subdivision does not line 26 preclude altering, amending, or restricting this section if it line 27 expressly applies only to agreements issued or entered into on or line 28 after the effective date of that alteration, amendment, or restriction. line 29 (3)  The association may include the terms of paragraph (2) in line 30 an agreement relating to bonds, lines of credit, or other agreements line 31 entered into pursuant to paragraph (5) of subdivision (a). line 32 (d)   (1)  The bonds, loan agreements, lines of credit, and line 33 agreements described in paragraph (5) of subdivision (a) may be line 34 secured by a statutory lien on all collateral in favor of the bond line 35 trustee, line of credit providers, and lenders, as applicable, to secure line 36 the payment and performance of all obligations of the association. line 37 This shall be a continuous lien on collateral effective from the time line 38 the first bond is issued, or the first line of credit agreement is line 39 executed and delivered, whether or not a particular item of 97 AB 226 — 5 —

line 1 collateral exists at the time of the issuance or execution and line 2 delivery.
line 3 (2)   The statutory lien shall be valid, effective, prior, perfected, line 4 binding, and enforceable without the need for notification, physical line 5 delivery, recordation, filing, or further action. line 6 (3)   For purposes of this subdivision, the beneficiary of the line 7 statutory lien becomes entitled to enforce the lien in accordance line 8 with the statute under which it was created if a payment default line 9 occurs in connection with a lien.
line 10 (e)   As long as a bond, loan agreement agreement, or line of line 11 credit is outstanding, the association shall not be subject to Article line 12 14 (commencing with Section 1010) or Article 14.3 (commencing line 13 with Section 1064.1) of Chapter 1 of Part 2 of Division 1. line 14 SEC. 4. This act is an urgency statute necessary for the line 15 immediate preservation of the public peace, health, or safety within line 16 the meaning of Article IV of the California Constitution and shall line 17 go into immediate effect. The facts constituting the necessity are:
line 18 California is now experiencing a severe property insurance line 19 availability crisis resulting in needed coverage, typically provided line 20 by admitted insurers and licensed surplus line brokers, often being line 21 unavailable in the normal insurance market. Consumers who cannot line 22 obtain property insurance through admitted or surplus lines insurers line 23 are also having to purchase more insurance through the California line 24 FAIR Plan Association, and the number of policies in the line 25 association has continued to grow. Because of this increase and line 26 the growing wildfire risk in the state, the FAIR Plan must be ready line 27 for catastrophic events, for which the FAIR Plan needs access to line 28 as many financial tools as possible at all times. line 29 The Legislature finds that access to basic property insurance line 30 suitable for protection of all types of habitational risk, including line 31 personal and commercial lines of insurance, has become line 32 increasingly unavailable and that, as a result, all Californians may line 33 suffer because of this unavailability. In order for insurance line 34 consumers to obtain adequate policy coverage from the California line 35 FAIR Plan, which is subject to regulation by the commissioner, line 36 as soon as possible, it is necessary that this act take effect line 37 immediately.

O
97 — 6 — AB 226

AMENDED IN ASSEMBLY APRIL 24, 2025
AMENDED IN ASSEMBLY MARCH 28, 2025
california legislature—2025–26 regular session
ASSEMBLY BILL No. 650
Introduced by Assembly Member Papan
(Coauthors: Assembly Members Pacheco, Haney, and Wicks) February 13, 2025
An act to amend Sections 65583, 65584, 65584.01, 65584.03, 65584.04, 65584.05, 65585, and 65589.5 and 65585 of the Government Code, relating to land use.
legislative counsel’s digest
AB 650, as amended, Papan. Planning and zoning: housing element:
regional housing needs allocation.
(1)  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, which includes, among other mandatory elements, a housing element. Existing law requires a public agency to administer its programs and activities relating to housing and community development in a manner to affirmatively further fair housing, and take no action that is materially inconsistent with its obligation to affirmatively further fair housing. Existing law defines “affirmatively furthering fair housing,” as provided.

The Planning and Zoning Law requires that a housing element include, among other things, a program that sets forth a schedule of actions during the planning period. Existing law requires the Department of Housing and Community Development to develop a standardized

Revised 5-23-25—See last page. 97

reporting format for programs and actions taken pursuant to the requirement to affirmatively further fair housing.

This bill would require the department to develop the above-described standardized reporting format on or before December 31, 2026. (2)  Existing law requires, for the 4th and subsequent revisions of the housing element, the department to determine the existing and projected need for housing for each region, as specified. Existing law requires the department, in consultation with the council of governments, to determine the existing and projected need of housing for each region at least 2 years prior to the scheduled revision of the housing element, as provided. Existing law requires the department to meet and consult with the council of governments regarding the assumptions and methodology to be used to determine the region’s housing needs at least 26 months prior to the scheduled revision of the housing element, as provided.

This
bill bill, except as specified, would extend the above-described timeline for the department to determine the existing and projected need of housing for each region from 2 years to
30 months 3 years prior to
the scheduled revision of the housing element, and the above-described timeline to meet and consult with a council of governments from at least 26 months to at least
32 38 months prior to the scheduled revision
of the housing element, respectively.
(3)  Existing law authorizes at least 2 or more cities and a county, or counties, and at least 28 months prior to the scheduled housing element revision, to form a subregional entity to allocate the subregion’s existing and projected housing need among its members. If the council of governments does not receive a notification of this formation at least 28 months prior to the update, existing law requires the council of governments to implement specified requirements regarding the regional housing need process. Existing law requires the council of governments to determine the share of regional housing need assigned to each delegate subregion at least 25 months prior to the scheduled revision.

This bill would extend the above-described timeline for cities and counties to form a subregional entity to allocate the subregion’s housing need, as provided, from 28 months to 34 months, and the above-described timeline for the council of governments to determine the share of regional housing need assigned to each subregion from 25 months to 31 months, respectively.
(3)
97 — 2 — AB 650

(4)  Existing law, at least 2 years before a scheduled revision of the housing element, as specified, requires each council of governments, or delegate subregion as applicable, to develop, in consultation with the department, a proposed methodology for distributing the existing and projected regional housing need to jurisdictions, as specified.

Existing law, at least 1 1⁄2 years before a scheduled revision of the housing element, as specified, requires each council of governments and delegate subregion, as applicable, to distribute a draft allocation of regional housing needs to each local government in the region or subregion, where applicable, and the department, as specified.

This bill, except with respect to the 7th housing element cycle for councils of governments with a housing element revision due date during the 2027 calendar year, would instead require that the above-described methodology be developed from at least 2 1⁄2 years before a scheduled revision of the housing element, and that the distribution of the draft allocation plan be made at least 2 years before a scheduled revision of the housing element, respectively. (4)
(5)  Existing law requires a planning agency to submit a copy of its draft housing element or amendments to its housing element or housing element revision to the department for review, and requires the department to notify the city, county, or city and county with written findings if the department finds that the housing element or the amendment does not substantially comply with specified law. If the department finds that the draft housing element or draft amendment is not in substantial compliance, existing law requires the jurisdiction to either update the draft to substantially comply with specified law, or adopt the draft housing element or amendment without changes, as provided.

This bill would require the department, if the department finds that a draft element or draft amendment does not substantially comply, as described above, to (A) identify and explain the specific deficiencies in the draft element or draft amendment and (B) provide the specific analysis or text that the department expects the planning agency to include in the draft element or draft amendment to remedy those deficiencies, as specified. The bill would require a jurisdiction, in updating a noncompliant housing element or amendment under the above-described provisions, to include the specific analysis or text in its draft element or amendment.

The bill w ould also e xempt a
jurisdiction from certain requirements to approve a so-called “builder’s 97 AB 650 — 3 —

remedy project” under specified la w for the period during which the department is re viewing that jurisdiction’ s updated draft element or draft amendment after submission of the updated element or amendment, as described above, or for 90 days from the date the department notifies the planning agenc y of additional deficiencies with the draft, as provided. The bill w ould mak e v arious conforming changes in this regard.
(5)
(6)  By imposing additional duties on local governments, this bill would create a state-mandated local program.

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

Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

V ote: 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 65583 of the Government Code is line 2 amended to read:
line 3 65583. The housing element shall consist of an identification line 4 and analysis of existing and projected housing needs and a line 5 statement of goals, policies, quantified objectives, financial line 6 resources, and scheduled programs for the preservation, line 7 improvement, and development of housing. The housing element line 8 shall identify adequate sites for housing, including rental housing, line 9 factory-built housing, mobilehomes, and emergency shelters, and line 10 shall make adequate provision for the existing and projected needs line 11 of all economic segments of the community. The housing element line 12 shall contain all of the following:
line 13 (a)   An assessment of housing needs and an inventory of line 14 resources and constraints that are relevant to the meeting of these line 15 needs. The assessment and inventory shall include all of the line 16 following:
line 17 (1)  An analysis of population and employment trends and line 18 documentation of projections and a quantification of the locality’s line 19 existing and projected housing needs for all income levels. These 97 — 4 — AB 650

line 1 existing and projected needs shall include the locality’s share of line 2 the regional housing need in accordance with Section 65584. line 3 (2)  An analysis and documentation of household characteristics, line 4 including level of payment compared to ability to pay, housing line 5 characteristics, including overcrowding, and housing stock line 6 condition.
line 7 (3)  An inventory of land suitable and available for residential line 8 development, including vacant sites and sites having realistic and line 9 demonstrated potential for redevelopment during the planning line 10 period to meet the locality’s housing need for a designated income line 11 level, and an analysis of the relationship of zoning and public line 12 facilities and services to these sites, and an analysis of the line 13 relationship of the sites identified in the land inventory to the line 14 jurisdiction’s duty to affirmatively further fair housing. line 15 (4)  (A)  The identification of one or more zoning designations line 16 that allow residential uses, including mixed uses, where emergency line 17 shelters are allowed as a permitted use without a conditional use line 18 or other discretionary permit and that are suitable for residential line 19 uses. The identified zoning designations shall include sufficient line 20 sites meeting the requirements of subparagraph (H) with sufficient line 21 capacity, as described in subparagraph (I), to accommodate the line 22 need for emergency shelter identified in paragraph (7), except that line 23 each local government shall identify a zoning designation or line 24 designations that can accommodate at least one year-round line 25 emergency shelter. If the local government cannot identify a zoning line 26 designation or designations with sufficient capacity, the local line 27 government shall include a program to amend its zoning ordinance line 28 to meet the requirements of this paragraph within one year of the line 29 adoption of the housing element. The local government may line 30 identify additional zoning designations where emergency shelters line 31 are permitted with a conditional use permit. The local government line 32 shall also demonstrate that existing or proposed permit processing, line 33 development, and management standards that apply to emergency line 34 shelters are objective and encourage and facilitate the development line 35 of, or conversion to, emergency shelters.
line 36 (B)   Emergency shelters shall only be subject to the following line 37 written, objective standards:
line 38 (i)  The maximum number of beds or persons permitted to be line 39 served nightly by the facility.
97 AB 650 — 5 —

line 1 (ii)   Sufficient parking to accommodate all staff working in the line 2 emergency shelter, provided that the standards do not require more line 3 parking for emergency shelters than other residential or commercial line 4 uses within the same zone.
line 5 (iii)   The size and location of exterior and interior onsite waiting line 6 and client intake areas.
line 7 (iv)   The provision of onsite management.
line 8 (v)  The proximity to other emergency shelters, provided that line 9 emergency shelters are not required to be more than 300 feet apart. line 10 (vi)   The length of stay.
line 11 (vii)   Lighting.
line 12 (viii)   Security during hours that the emergency shelter is in line 13 operation.
line 14 (C)  For purposes of this paragraph, “emergency shelter” shall line 15 include other interim interventions, including, but not limited to, line 16 a navigation center, bridge housing, and respite or recuperative line 17 care.
line 18 (D)   The permit processing, development, and management line 19 standards applied under this paragraph shall not be deemed to be line 20 discretionary acts within the meaning of the California line 21 Environmental Quality Act (Division 13 (commencing with Section line 22 21000) of the Public Resources Code).
line 23 (E)   If a local government has adopted written, objective line 24 standards pursuant to subparagraph (B), the local government shall line 25 include an analysis of the standards in the analysis of constraints line 26 pursuant to paragraph (5).
line 27 (F)  A local government that can demonstrate, to the satisfaction line 28 of the department, the existence of one or more emergency shelters line 29 either within its jurisdiction or pursuant to a multijurisdictional line 30 agreement that can accommodate that jurisdiction’s need and the line 31 needs of the other jurisdictions that are a part of the agreement for line 32 emergency shelter identified in paragraph (7) may comply with line 33 the zoning requirements of subparagraph (A) by identifying a line 34 zoning designation where new emergency shelters are allowed line 35 with a conditional use permit.
line 36 (G)  A local government with an existing ordinance or ordinances line 37 that comply with this paragraph shall not be required to take line 38 additional action to identify zoning designations for emergency line 39 shelters. The housing element must only describe how existing 97 — 6 — AB 650

line 1 ordinances, policies, and standards are consistent with the line 2 requirements of this paragraph.
line 3 (H)   The zoning designation or designations where emergency line 4 shelters are allowed, as described in subparagraph (A), shall include line 5 sites that meet at least one of the following standards:
line 6 (i)   Vacant sites zoned for residential use.
line 7 (ii)   Vacant sites zoned for nonresidential use that allow line 8 residential development, if the local government can demonstrate line 9 how the sites with this zoning designation that are being used to line 10 satisfy the requirements of paragraph (1) are located near amenities line 11 and services that serve people experiencing homelessness, which line 12 may include health care, transportation, retail, employment, and line 13 social services, or that the local government will provide free line 14 transportation to services or offer services onsite. line 15 (iii)   Nonvacant sites zoned for residential use or for line 16 nonresidential use that allow residential development that are line 17 suitable for use as a shelter in the current planning period, or which line 18 can be redeveloped for use as a shelter in the current planning line 19 period. A nonvacant site with an existing use shall be presumed line 20 to impede emergency shelter development absent an analysis based line 21 on substantial evidence that the use is likely to be discontinued line 22 during the planning period. The analysis shall consider current line 23 market demand for the current uses, market conditions, and line 24 incentives or standards to encourage shelter development. line 25 (I)   The zoning designation or designations shall have sufficient line 26 sites meeting the requirements of subparagraph (H) to line 27 accommodate the need for shelters identified pursuant to paragraph line 28 (7). The number of people experiencing homelessness that can be line 29 accommodated on any site shall be demonstrated by dividing the line 30 square footage of the site by a minimum of 200 square feet per line 31 person, unless the locality can demonstrate that one or more line 32 shelters were developed on sites that have fewer square feet per line 33 person during the prior planning period or the locality provides line 34 similar evidence to the department demonstrating that the site can line 35 accommodate more people experiencing homelessness. Any line 36 standard applied pursuant to this subparagraph is intended only line 37 for calculating site capacity pursuant to this section, and shall not line 38 be construed as establishing a development standard applicable to line 39 the siting, development, or approval of a shelter. 97 AB 650 — 7 —

line 1 (J)  Notwithstanding subparagraph (H), a local government may line 2 accommodate the need for emergency shelters identified pursuant line 3 to paragraph (7) on sites owned by the local government if it line 4 demonstrates with substantial evidence that the sites will be made line 5 available for emergency shelter during the planning period, they line 6 are suitable for residential use, and the sites are located near line 7 amenities and services that serve people experiencing line 8 homelessness, which may include health care, transportation, retail, line 9 employment, and social services, or that the local government will line 10 provide free transportation to services or offer services onsite. line 11 (5)  An analysis of potential and actual governmental constraints line 12 upon the maintenance, improvement, or development of housing line 13 for all income levels, including the types of housing identified in line 14 paragraph (1) of subdivision (c), and for persons with disabilities line 15 as identified in the analysis pursuant to paragraph (7), including line 16 land use controls, building codes and their enforcement, site line 17 improvements, fees, and other exactions required of developers, line 18 local processing and permit procedures, historic preservation line 19 practices and policies and an assessment of how existing and line 20 proposed historic designations affect the locality’s ability to meet line 21 its share of the housing need pursuant to paragraph (1), and any line 22 locally adopted ordinances that directly impact the cost and supply line 23 of residential development. The analysis shall also demonstrate line 24 local efforts to remove governmental constraints that hinder the line 25 locality from meeting its share of the regional housing need in line 26 accordance with Section 65584 and from meeting the need for line 27 housing for persons with disabilities, supportive housing, line 28 transitional housing, and emergency shelters identified pursuant line 29 to paragraph (7).
line 30 (6)   An analysis of potential and actual nongovernmental line 31 constraints upon the maintenance, improvement, or development line 32 of housing for all income levels, including the availability of line 33 financing, the price of land, the cost of construction, the requests line 34 to develop housing at densities below those anticipated in the line 35 analysis required by subdivision (c) of Section 65583.2, and the line 36 length of time between receiving approval for a housing line 37 development and submittal of an application for building permits line 38 for that housing development that hinder the construction of a line 39 locality’s share of the regional housing need in accordance with line 40 Section 65584. The analysis shall also demonstrate local efforts 97 — 8 — AB 650

line 1 to remove nongovernmental constraints that create a gap between line 2 the locality’s planning for the development of housing for all line 3 income levels and the construction of that housing. line 4 (7)  (A)  An analysis of any special housing needs, such as those line 5 of the elderly; persons with disabilities, including a developmental line 6 disability, as defined in Section 4512 of the Welfare and line 7 Institutions Code; extremely low income households; large line 8 families; farmworkers; families with female heads of households; line 9 and families and persons in need of emergency shelter. The need line 10 for emergency shelter shall be assessed based on the capacity line 11 necessary to accommodate the most recent homeless point-in-time line 12 count conducted before the start of the planning period, the need line 13 for emergency shelter based on number of beds available on a line 14 year-round and seasonal basis, the number of shelter beds that go line 15 unused on an average monthly basis within a one-year period, and line 16 the percentage of those in emergency shelters that move to line 17 permanent housing solutions. The need for emergency shelter may line 18 be reduced by the number of supportive housing units that are line 19 identified in an adopted 10-year plan to end chronic homelessness line 20 and that are either vacant or for which funding has been identified line 21 to allow construction during the planning period. An analysis of line 22 special housing needs by a city or county may include an analysis line 23 of the need for frequent user coordinated care housing services. line 24 (B)  For the seventh and subsequent revisions of the housing line 25 element, the analysis required in subparagraph (A) shall also line 26 include an analysis of the housing needs of acutely and extremely line 27 low income households.
line 28 (8)  An analysis of opportunities for energy conservation with line 29 respect to residential development. Cities and counties are line 30 encouraged to include weatherization and energy efficiency line 31 improvements as part of publicly subsidized housing rehabilitation line 32 projects. This may include energy efficiency measures that line 33 encompass the building envelope, its heating and cooling systems, line 34 and its electrical system.
line 35 (9)   An analysis of existing assisted housing developments that line 36 are eligible to change from low-income housing uses during the line 37 next 10 years due to termination of subsidy contracts, mortgage line 38 prepayment, or expiration of restrictions on use. “Assisted housing line 39 developments,” for the purpose of this section, shall mean line 40 multifamily rental housing that receives governmental assistance 97 AB 650 — 9 —

line 1 under federal programs listed in subdivision (a) of Section line 2 65863.10, state and local multifamily revenue bond programs, line 3 local redevelopment programs, the federal Community line 4 Development Block Grant Program, or local in-lieu fees. “Assisted line 5 housing developments” shall also include multifamily rental units line 6 that were developed pursuant to a local inclusionary housing line 7 program or used to qualify for a density bonus pursuant to Section line 8 65916.
line 9 (A)   The analysis shall include a listing of each development by line 10 project name and address, the type of governmental assistance line 11 received, the earliest possible date of change from low-income line 12 use, and the total number of elderly and nonelderly units that could line 13 be lost from the locality’s low-income housing stock in each year line 14 during the 10-year period. For purposes of state and federally line 15 funded projects, the analysis required by this subparagraph need line 16 only contain information available on a statewide basis. line 17 (B)   The analysis shall estimate the total cost of producing new line 18 rental housing that is comparable in size and rent levels, to replace line 19 the units that could change from low-income use, and an estimated line 20 cost of preserving the assisted housing developments. This cost line 21 analysis for replacement housing may be done aggregately for line 22 each five-year period and does not have to contain a line 23 project-by-project cost estimate.
line 24 (C)   The analysis shall identify public and private nonprofit line 25 corporations known to the local government that have legal and line 26 managerial capacity to acquire and manage these housing line 27 developments.
line 28 (D)  The analysis shall identify and consider the use of all federal, line 29 state, and local financing and subsidy programs that can be used line 30 to preserve, for lower income households, the assisted housing line 31 developments, identified in this paragraph, including, but not line 32 limited to, federal Community Development Block Grant Program line 33 funds, tax increment funds received by a redevelopment agency line 34 of the community, and administrative fees received by a housing line 35 authority operating within the community. In considering the use line 36 of these financing and subsidy programs, the analysis shall identify line 37 the amounts of funds under each available program that have not line 38 been legally obligated for other purposes and that could be line 39 available for use in preserving assisted housing developments. 97 — 10 — AB 650

line 1 (b)  (1)  A statement of the community’s goals, quantified line 2 objectives, and policies relative to affirmatively furthering fair line 3 housing and to the maintenance, preservation, improvement, and line 4 development of housing.
line 5 (2)   It is recognized that the total housing needs identified line 6 pursuant to subdivision (a) may exceed available resources and line 7 the community’s ability to satisfy this need within the content of line 8 the general plan requirements outlined in Article 5 (commencing line 9 with Section 65300). Under these circumstances, the quantified line 10 objectives need not be identical to the total housing needs. The line 11 quantified objectives shall establish the maximum number of line 12 housing units by income category that can be constructed, line 13 rehabilitated, and conserved over a five-year time period. line 14 (c)   A program that sets forth a schedule of actions during the line 15 planning period, each with a timeline for implementation, that may line 16 recognize that certain programs are ongoing, such that there will line 17 be beneficial impacts of the programs within the planning period, line 18 that the local government is undertaking or intends to undertake line 19 to implement the policies and achieve the goals and objectives of line 20 the housing element through the administration of land use and line 21 development controls, the provision of regulatory concessions and line 22 incentives, the utilization of appropriate federal and state financing line 23 and subsidy programs when available, and the utilization of moneys line 24 in a low- and moderate-income housing fund of an agency if the line 25 locality has established a redevelopment project area pursuant to line 26 the Community Redevelopment Law (Division 24 (commencing line 27 with Section 33000) of the Health and Safety Code). In order to line 28 make adequate provision for the housing needs of all economic line 29 segments of the community, the program shall do all of the line 30 following:
line 31 (1)   Identify actions that will be taken to make sites available line 32 during the planning period with appropriate zoning and line 33 development standards and with services and facilities to line 34 accommodate that portion of the city’s or county’s share of the line 35 regional housing need for all income levels that could not be line 36 accommodated on sites identified in the inventory completed line 37 pursuant to paragraph (3) of subdivision (a) without rezoning, and line 38 to comply with the requirements of Section 65584.09. Sites shall line 39 be identified as needed to affirmatively further fair housing and line 40 to facilitate and encourage the development of a variety of types 97 AB 650 — 11 —

line 1 of housing for all income levels, including multifamily rental line 2 housing, factory-built housing, mobilehomes, housing for line 3 agricultural employees, supportive housing, single-room occupancy line 4 units, emergency shelters, and transitional housing. line 5 (A)  Where the inventory of sites, pursuant to paragraph (3) of line 6 subdivision (a), does not identify adequate sites to accommodate line 7 the need for groups of all household income levels pursuant to line 8 Section 65584, a program for rezoning of those sites, subject to line 9 the following deadlines:
line 10 (i)  For the adoption of the sixth revision of the housing element, line 11 jurisdictions with an eight-year housing element planning period line 12 pursuant to Section 65588, including adoption of minimum density line 13 and development standards or, for a jurisdiction in the coastal zone, line 14 any necessary local coastal program amendments related to land line 15 use designations, changes in intensity of land use, zoning line 16 ordinances, or zoning district maps, consistent with Sections 30512, line 17 30512.2, 30513, and 30514 of the Public Resources Code, shall line 18 be completed no later than three years after either the date the line 19 housing element is adopted pursuant to subdivision (f) of Section line 20 65585 or the date that is 90 days after receipt of comments from line 21 the department pursuant to subdivision (b) of Section 65585, line 22 whichever is earlier, unless the deadline is extended pursuant to line 23 subdivision (f). Notwithstanding the foregoing, for a local line 24 government that fails to adopt a housing element that the line 25 department has found to be in substantial compliance with this line 26 article within 120 days of the statutory deadline in Section 65588 line 27 for adoption of the housing element, rezoning of those sites, line 28 including adoption of minimum density and development standards line 29 or, for a jurisdiction in the coastal zone, any necessary local coastal line 30 program amendments related to land use designations, changes in line 31 intensity of land use, zoning ordinances, or zoning district maps, line 32 consistent with Sections 30512, 30512.2, 30513, and 30514 of the line 33 Public Resources Code, shall be completed no later than one year line 34 from the statutory deadline in Section 65588 for adoption of the line 35 housing element.
line 36 (ii)   For adoption of the seventh and all subsequent revisions of line 37 the housing element, rezonings shall be completed no later than line 38 one year from the statutory deadline in Section 65588 for adoption line 39 of the housing element.
97 — 12 — AB 650

line 1 (iii)   Notwithstanding clause (ii), for the adoption of the seventh line 2 and all subsequent revisions of the housing element, rezonings line 3 shall be completed no later than three years and 90 days after the line 4 statutory deadline in Section 65588 for adoption of the housing line 5 element, unless the deadline is extended pursuant to subdivision line 6 (f). This clause shall apply only if the local government complies line 7 with all of the following:
line 8 (I)   The local government submits a draft element or draft line 9 amendment to the department for review pursuant to paragraph line 10 (1) of subdivision (b) of Section 65585 at least 90 days before the line 11 statutory deadline established in Section 65588 for adoption of the line 12 housing element.
line 13 (II)  The local government receives from the department findings line 14 that the draft element or draft amendment substantially complies line 15 with this article pursuant to paragraph (3) of subdivision (b) of line 16 Section 65585 on or before the statutory deadline set forth in line 17 Section 65588 for adoption of the housing element. line 18 (III)  The local government adopts the draft element or draft line 19 amendment that the department found to substantially comply with line 20 this article no later than 120 days after the statutory deadline set line 21 forth in Section 65588.
line 22 (B)   Where the inventory of sites, pursuant to paragraph (3) of line 23 subdivision (a), does not identify adequate sites to accommodate line 24 the need for groups of all household income levels pursuant to line 25 Section 65584, the program shall identify sites that can be line 26 developed for housing within the planning period pursuant to line 27 subdivision (h) of Section 65583.2. The identification of sites shall line 28 include all components specified in Section 65583.2. line 29 (C)   Where the inventory of sites pursuant to paragraph (3) of line 30 subdivision (a) does not identify adequate sites to accommodate line 31 the need for farmworker housing, the program shall provide for line 32 sufficient sites to meet the need with zoning that permits line 33 farmworker housing use by right, including density and line 34 development standards that could accommodate and facilitate the line 35 feasibility of the development of farmworker housing for low- and line 36 very low income households.
line 37 (2)   (A)  Assist in the development of adequate housing to meet line 38 the needs of extremely low, very low, low-, and moderate-income line 39 households.
97 AB 650 — 13 —

line 1 (B)  For the seventh and subsequent revisions of the housing line 2 element, the program shall also assist in the development of line 3 adequate housing to meet the needs of acutely low income line 4 households.
line 5 (3)  Address and, where appropriate and legally possible, remove line 6 governmental and nongovernmental constraints to the maintenance, line 7 improvement, and development of housing, including housing for line 8 all income levels and housing for persons with disabilities. The line 9 program shall remove constraints to, and provide reasonable line 10 accommodations for housing designed for, intended for occupancy line 11 by, or with supportive services for, persons with disabilities. line 12 Transitional housing and supportive housing shall be considered line 13 a residential use of property and shall be subject only to those line 14 restrictions that apply to other residential dwellings of the same line 15 type in the same zone. Supportive housing, as defined in Section line 16 65650, shall be a use by right in all zones where multifamily and line 17 mixed uses are permitted, as provided in Article 11 (commencing line 18 with Section 65650).
line 19 (4)   Conserve and improve the condition of the existing line 20 affordable housing stock, which may include addressing ways to line 21 mitigate the loss of dwelling units demolished by public or private line 22 action.
line 23 (5)  Promote and affirmatively further fair housing opportunities line 24 and promote housing throughout the community or communities line 25 for all persons regardless of race, religion, sex, marital status, line 26 ancestry, national origin, color, familial status, or disability, and line 27 other characteristics protected by the California Fair Employment line 28 and Housing Act (Part 2.8 (commencing with Section 12900) of line 29 Division 3 of Title 2), Section 65008, and any other state and line 30 federal fair housing and planning law.
line 31 (6)   Preserve for lower income households the assisted housing line 32 developments identified pursuant to paragraph (9) of subdivision line 33 (a). The program for preservation of the assisted housing line 34 developments shall utilize, to the extent necessary, all available line 35 federal, state, and local financing and subsidy programs identified line 36 in paragraph (9) of subdivision (a), except where a community has line 37 other urgent needs for which alternative funding sources are not line 38 available. The program may include strategies that involve local line 39 regulation and technical assistance.
97 — 14 — AB 650

line 1 (7)   Develop a plan that incentivizes and promotes the creation line 2 of accessory dwelling units that can be offered at affordable rent, line 3 as defined in Section 50053 of the Health and Safety Code, for line 4 very low, low-, or moderate-income households. For purposes of line 5 this paragraph, “accessory dwelling units” has the same meaning line 6 as “accessory dwelling unit” as defined in subdivision (a) of line 7 Section 66313.
line 8 (8)   Include an identification of the agencies and officials line 9 responsible for the implementation of the various actions and the line 10 means by which consistency will be achieved with other general line 11 plan elements and community goals.
line 12 (9)  Include a diligent effort by the local government to achieve line 13 public participation of all economic segments of the community line 14 in the development of the housing element, and the program shall line 15 describe this effort.
line 16 (10)   (A)  Affirmatively further fair housing in accordance with line 17 Chapter 15 (commencing with Section 8899.50) of Division 1 of line 18 Title 2. The program shall include an assessment of fair housing line 19 in the jurisdiction that shall include all of the following line 20 components:
line 21 (i)  A summary of fair housing issues in the jurisdiction and an line 22 assessment of the jurisdiction’s fair housing enforcement and fair line 23 housing outreach capacity.
line 24 (ii)   An analysis of available federal, state, and local data and line 25 knowledge to identify integration and segregation patterns and line 26 trends, racially or ethnically concentrated areas of poverty and line 27 affluence, disparities in access to opportunity, and disproportionate line 28 housing needs, including displacement risk. The analysis shall line 29 identify and examine such patterns, trends, areas, disparities, and line 30 needs, both within the jurisdiction and comparing the jurisdiction line 31 to the region in which it is located, based on race and other line 32 characteristics protected by the California Fair Employment and line 33 Housing Act (Part 2.8 (commencing with Section 12900) of line 34 Division 3 of Title 2) and Section 65008.
line 35 (iii)  An assessment of the contributing factors, including the line 36 local and regional historical origins and current policies and line 37 practices, for the fair housing issues identified under clauses (i) line 38 and (ii).
line 39 (iv)  An identification of the jurisdiction’s fair housing priorities line 40 and goals, giving highest priority to those factors identified in 97 AB 650 — 15 —

line 1 clause (iii) that limit or deny fair housing choice or access to line 2 opportunity, or negatively impact fair housing or civil rights line 3 compliance, and identifying the metrics and milestones for line 4 determining what fair housing results will be achieved. line 5 (v)   Strategies and actions to implement those priorities and line 6 goals, which may include, but are not limited to, enhancing line 7 mobility strategies and encouraging development of new affordable line 8 housing in areas of opportunity, as well as place-based strategies line 9 to encourage community revitalization, including preservation of line 10 existing affordable housing, and protecting existing residents from line 11 displacement.
line 12 (B)  A jurisdiction that completes or revises an assessment of line 13 fair housing pursuant to Subpart A (commencing with Section line 14 5.150) of Part 5 of Subtitle A of Title 24 of the Code of Federal line 15 Regulations, as published in V olume 80 of the Federal Register, line 16 Number 136, page 42272, dated July 16, 2015, or an analysis of line 17 impediments to fair housing choice in accordance with the line 18 requirements of Section 91.225 of Title 24 of the Code of Federal line 19 Regulations in effect before August 17, 2015, may incorporate line 20 relevant portions of that assessment or revised assessment of fair line 21 housing or analysis or revised analysis of impediments to fair line 22 housing into its housing element.
line 23 (C)  (i)  The requirements of this paragraph shall apply to housing line 24 elements due to be revised pursuant to Section 65588 on or after line 25 January 1, 2021.
line 26 (ii)   The assessment required pursuant to this paragraph shall be line 27 completed before the planning agency makes its first draft revision line 28 of a housing element available for public comment pursuant to line 29 subdivision (b) of Section 65585.
line 30 (D)  (i)  On or before December 31, 2026, the department shall line 31 develop a standardized reporting format for programs and actions line 32 taken pursuant to this paragraph. The standardized reporting format line 33 shall enable the reporting of all of the assessment components line 34 listed in subparagraph (A) and, at a minimum, include all of the line 35 following fields:
line 36 (I)   Timelines for implementation.
line 37 (II)   Responsible party or parties.
line 38 (III)  Resources committed from the local budget to affirmatively line 39 further fair housing.
line 40 (IV)   Action areas.
97 — 16 — AB 650

line 1 (V)   Potential impacts of the program.
line 2 (ii)   A local government shall utilize the standardized report line 3 format developed pursuant to this subparagraph for the seventh line 4 and each subsequent revision of the housing element. line 5 (d)   (1)  A local government may satisfy all or part of its line 6 requirement to identify a zone or zones suitable for the line 7 development of emergency shelters pursuant to paragraph (4) of line 8 subdivision (a) by adopting and implementing a multijurisdictional line 9 agreement, with a maximum of two other adjacent communities, line 10 that requires the participating jurisdictions to develop at least one line 11 year-round emergency shelter within two years of the beginning line 12 of the planning period.
line 13 (2)  The agreement shall allocate a portion of the new shelter line 14 capacity to each jurisdiction as credit toward its emergency shelter line 15 need, and each jurisdiction shall describe how the capacity was line 16 allocated as part of its housing element.
line 17 (3)  Each member jurisdiction of a multijurisdictional agreement line 18 shall describe in its housing element all of the following:
line 19 (A)  How the joint facility will meet the jurisdiction’s emergency line 20 shelter need.
line 21 (B)  The jurisdiction’s contribution to the facility for both the line 22 development and ongoing operation and management of the line 23 facility.
line 24 (C)  The amount and source of the funding that the jurisdiction line 25 contributes to the facility.
line 26 (4)  The aggregate capacity claimed by the participating line 27 jurisdictions in their housing elements shall not exceed the actual line 28 capacity of the shelter.
line 29 (e)   Except as otherwise provided in this article, amendments to line 30 this article that alter the required content of a housing element line 31 shall apply to both of the following:
line 32 (1)  A housing element or housing element amendment prepared line 33 pursuant to subdivision (e) of Section 65588 or Section 65584.02, line 34 when a city, county, or city and county submits a draft to the line 35 department for review pursuant to Section 65585 more than 90 line 36 days after the effective date of the amendment to this section. line 37 (2)   Any housing element or housing element amendment line 38 prepared pursuant to subdivision (e) of Section 65588 or Section line 39 65584.02, when the city, county, or city and county fails to submit 97 AB 650 — 17 —

line 1 the first draft to the department before the due date specified in line 2 Section 65588 or 65584.02.
line 3 (f)   The deadline for completing required rezoning pursuant to line 4 subparagraph (A) of paragraph (1) of subdivision (c) shall be line 5 extended by one year if the local government has completed the line 6 rezoning at densities sufficient to accommodate at least 75 percent line 7 of the units for lower income households and if the legislative line 8 body at the conclusion of a public hearing determines, based upon line 9 substantial evidence, that any of the following circumstances exists:
line 10 (1)   The local government has been unable to complete the line 11 rezoning because of the action or inaction beyond the control of line 12 the local government of any other state, federal, or local agency. line 13 (2)  The local government is unable to complete the rezoning line 14 because of infrastructure deficiencies due to fiscal or regulatory line 15 constraints.
line 16 (3)   The local government must undertake a major revision to line 17 its general plan in order to accommodate the housing-related line 18 policies of a sustainable communities strategy or an alternative line 19 planning strategy adopted pursuant to Section 65080. line 20 The resolution and the findings shall be transmitted to the line 21 department together with a detailed budget and schedule for line 22 preparation and adoption of the required rezonings, including plans line 23 for citizen participation and expected interim action. The schedule line 24 shall provide for adoption of the required rezoning within one year line 25 of the adoption of the resolution.
line 26 (g)  (1)  If a local government fails to complete the rezoning by line 27 the deadline provided in subparagraph (A) of paragraph (1) of line 28 subdivision (c), as it may be extended pursuant to subdivision (f), line 29 except as provided in paragraph (2), a local government may not line 30 disapprove a housing development project, nor require a line 31 conditional use permit, planned unit development permit, or other line 32 locally imposed discretionary permit, or impose a condition that line 33 would render the project infeasible, if the housing development line 34 project, (A) is proposed to be located on a site required to be line 35 rezoned pursuant to the program action required by that line 36 subparagraph and, (B) complies with applicable, objective general line 37 plan and zoning standards and criteria, including design review line 38 standards, described in the program action required by that line 39 subparagraph. Any subdivision of sites shall be subject to the line 40 Subdivision Map Act (Division 2 (commencing with Section 97 — 18 — AB 650

line 1 66410)). Design review shall not constitute a “project” for purposes line 2 of Division 13 (commencing with Section 21000) of the Public line 3 Resources Code.
line 4 (2)   A local government may disapprove a housing development line 5 described in paragraph (1) if it makes written findings supported line 6 by substantial evidence on the record that both of the following line 7 conditions exist:
line 8 (A)   The housing development project would have a specific, line 9 adverse impact upon the public health or safety unless the project line 10 is disapproved or approved upon the condition that the project be line 11 developed at a lower density. As used in this paragraph, a “specific, line 12 adverse impact” means a significant, quantifiable, direct, and line 13 unavoidable impact, based on objective, identified written public line 14 health or safety standards, policies, or conditions as they existed line 15 on the date the application was deemed complete. line 16 (B)  There is no feasible method to satisfactorily mitigate or line 17 avoid the adverse impact identified pursuant to paragraph (1), other line 18 than the disapproval of the housing development project or the line 19 approval of the project upon the condition that it be developed at line 20 a lower density.
line 21 (3)   The applicant or any interested person may bring an action line 22 to enforce this subdivision. If a court finds that the local agency line 23 disapproved a project or conditioned its approval in violation of line 24 this subdivision, the court shall issue an order or judgment line 25 compelling compliance within 60 days. The court shall retain line 26 jurisdiction to ensure that its order or judgment is carried out. If line 27 the court determines that its order or judgment has not been carried line 28 out within 60 days, the court may issue further orders to ensure line 29 that the purposes and policies of this subdivision are fulfilled. In line 30 any such action, the city, county, or city and county shall bear the line 31 burden of proof.
line 32 (4)   For purposes of this subdivision, “housing development line 33 project” means a project to construct residential units for which line 34 the project developer provides sufficient legal commitments to the line 35 appropriate local agency to ensure the continued availability and line 36 use of at least 49 percent of the housing units for very low, low-, line 37 and moderate-income households with an affordable housing cost line 38 or affordable rent, as defined in Section 50052.5 or 50053 of the line 39 Health and Safety Code, respectively, for the period required by line 40 the applicable financing.
97 AB 650 — 19 —

line 1 (h)   An action to enforce the program actions of the housing line 2 element shall be brought pursuant to Section 1085 of the Code of line 3 Civil Procedure.
line 4 (i)  Notwithstanding any other law, the otherwise applicable line 5 timeframe set forth in paragraph (2) of subdivision (b) and line 6 subdivision (d) of Section 21080.3.1 of the Public Resources Code, line 7 and paragraph (3) of subdivision (d) of Section 21082.3 of the line 8 Public Resources Code, for a Native American tribe to respond to line 9 a lead agency and request consultation in writing is extended by line 10 30 days for any housing development project application line 11 determined or deemed to be complete on or after March 4, 2020, line 12 and prior to December 31, 2021.
line 13 (j)   On or after January 1, 2024, at the discretion of the line 14 department, the analysis of government constraints pursuant to line 15 paragraph (5) of subdivision (a) may include an analysis of line 16 constraints upon the maintenance, improvement, or development line 17 of housing for persons with a characteristic identified in subdivision line 18 (b) of Section 51 of the Civil Code. The implementation of this line 19 subdivision is contingent upon an appropriation by the Legislature line 20 in the annual Budget Act or another statute for this purpose. line 21 SEC. 2. Section 65584 of the Government Code is amended line 22 to read:
line 23 65584. (a)  (1)  For the fourth and subsequent revisions of the line 24 housing element pursuant to Section 65588, the department shall line 25 determine the existing and projected need for housing for each line 26 region pursuant to this article. For purposes of subdivision (a) of line 27 Section 65583, the share of a city or county of the regional housing line 28 need shall include that share of the housing need of persons at all line 29 income levels within the area significantly affected by the general line 30 plan of the city or county.
line 31 (2)  It is the intent of the Legislature that cities, counties, and line 32 cities and counties should undertake all necessary actions to line 33 encourage, promote, and facilitate the development of housing to line 34 accommodate the entire regional housing need, and reasonable line 35 actions should be taken by local and regional governments to line 36 ensure that future housing production meets, at a minimum, the line 37 regional housing need established for planning purposes. These line 38 actions shall include applicable reforms and incentives in Section line 39 65582.1.
97 — 20 — AB 650

line 1 (3)   The Legislature finds and declares that insufficient housing line 2 in job centers hinders the state’s environmental quality and runs line 3 counter to the state’s environmental goals. In particular, when line 4 Californians seeking affordable housing are forced to drive longer line 5 distances to work, an increased amount of greenhouse gases and line 6 other pollutants are released and puts in jeopardy the achievement line 7 of the state’s climate goals, as established pursuant to Section line 8 38566 of the Health and Safety Code, and clean air goals. line 9 (b)   (1)  (A)   The department, in consultation with each council line 10 of governments, shall determine each region’s existing and line 11 projected housing need pursuant to Section 65584.01 at least 30 line 12 months three years prior to the scheduled revision required line 13 pursuant to Section 65588. The 65588, except in the following line 14 circumstances:
line 15 (i)  For regions with a scheduled housing element revision due line 16 date in the 2027 calendar year, the department shall determine line 17 the region’s housing need at least two years before the scheduled line 18 revision.
line 19 (ii)  For regions with a scheduled housing element revision due line 20 date in the 2028 calendar year or the first six months of the 2029 line 21 calendar year, the department shall determine the region’s housing line 22 need at least 32 months before the scheduled revision. line 23 (B)  For cities and counties without a council of governments, line 24 the department shall determine each region’s existing and line 25 projected housing need pursuant to Section 65584.01 at least 30 line 26 months before the scheduled revision required pursuant to Section line 27 65588, except for cities and counties with a scheduled housing line 28 element revision due date in the 2027 calendar year or the first line 29 six months of the 2028 calendar year, the department shall line 30 determine their existing and projected housing need at least two line 31 years before the scheduled revision.
line 32 (2)  The appropriate council of governments, or for cities and line 33 counties without a council of governments, the department, shall line 34 adopt a final regional housing need plan that allocates a share of line 35 the regional housing need to each city, county, or city and county line 36 at least one year prior to the scheduled revision for the region line 37 required by Section 65588. The allocation plan prepared by a line 38 council of governments shall be prepared pursuant to Sections line 39 65584.04 and 65584.05.
97 AB 650 — 21 —

line 1 (c)  Notwithstanding any other provision of law, the due dates line 2 for the determinations of the department or for the council of line 3 governments, respectively, regarding the regional housing need line 4 may be extended by the department by not more than 60 days if line 5 the extension will enable access to more recent critical population line 6 or housing data from a pending or recent release of the United line 7 States Census Bureau or the Department of Finance. If the due line 8 date for the determination of the department or the council of line 9 governments is extended for this reason, the department shall line 10 extend the corresponding housing element revision deadline line 11 pursuant to Section 65588 by not more than 60 days. line 12 (d)   The regional housing needs allocation plan shall further all line 13 of the following objectives:
line 14 (1)   Increasing the housing supply and the mix of housing types, line 15 tenure, and affordability in all cities and counties within the region line 16 in an equitable manner, which shall result in each jurisdiction line 17 receiving an allocation of units for low- and very low income line 18 households. The regional housing needs allocation plan shall line 19 allocate units for extremely lo w- low and acutely low income line 20 households in a manner that is roughly proportional to, and within line 21 a range of 3 percent of, the housing need for very low income line 22 households.
line 23 (2)  Promoting infill development and socioeconomic equity, line 24 the protection of environmental and agricultural resources, the line 25 encouragement of efficient development patterns, and the line 26 achievement of the region’s greenhouse gas reductions targets line 27 provided by the State Air Resources Board pursuant to Section line 28 65080.
line 29 (3)  Promoting an improved intraregional relationship between line 30 jobs and housing, including an improved balance between the line 31 number of low-wage jobs and the number of housing units line 32 affordable to low-wage workers in each jurisdiction. line 33 (4)   Allocating a lower proportion of housing need to an income line 34 category when a jurisdiction already has a disproportionately high line 35 share of households in that income category, as compared to the line 36 countywide distribution of households in that category from the line 37 most recent American Community Survey.
line 38 (5)   Affirmatively furthering fair housing.
line 39 (e)   For purposes of this section, “affirmatively furthering fair line 40 housing” means taking meaningful actions, in addition to 97 — 22 — AB 650

line 1 combating discrimination, that overcome patterns of segregation line 2 and foster inclusive communities free from barriers that restrict line 3 access to opportunity based on protected characteristics. line 4 Specifically, affirmatively furthering fair housing means taking line 5 meaningful actions that, taken together, address significant line 6 disparities in housing needs and in access to opportunity, replacing line 7 segregated living patterns with truly integrated and balanced living line 8 patterns, transforming racially and ethnically concentrated areas line 9 of poverty into areas of opportunity, and fostering and maintaining line 10 compliance with civil rights and fair housing laws. line 11 (f)   (1)  Subject to paragraph (2), for purposes of this section line 12 with respect to revisions of the housing element through the sixth line 13 revision, “household income levels” are as determined by the line 14 department pursuant to the following code sections:
line 15 (A)  Very low incomes, as defined by Section 50105 of the line 16 Health and Safety Code.
line 17 (B)  Lower incomes, as defined by Section 50079.5 of the Health line 18 and Safety Code.
line 19 (C)   Moderate incomes, as defined by Section 50093 of the line 20 Health and Safety Code.
line 21 (D)   Above moderate incomes are those exceeding the line 22 moderate-income level of Section 50093 of the Health and Safety line 23 Code.
line 24 (2)   For purposes of this section with respect to the seventh and line 25 subsequent revisions of the housing element, “household income line 26 levels” are as determined by the department in accordance with line 27 the definitions of acutely low, extremely low, very low, low, line 28 moderate, and above moderate income in Section 65582. line 29 (g)   Notwithstanding any other provision of law, determinations line 30 made by the department, a council of governments, or a city or line 31 county pursuant to this section or Section 65584.01, 65584.02, line 32 65584.03, 65584.04, 65584.05, 65584.06, 65584.07, or 65584.08 line 33 are exempt from the California Environmental Quality Act line 34 (Division 13 (commencing with Section 21000) of the Public line 35 Resources Code).
line 36 SEC. 3. Section 65584.01 of the Government Code is amended line 37 to read:
line 38 65584.01. For the fourth and subsequent revision of the housing line 39 element pursuant to Section 65588, the department, in consultation line 40 with each council of governments, where applicable, shall 97 AB 650 — 23 —

line 1 determine the existing and projected need for housing for each line 2 region in the following manner:
line 3 (a)   The department’s determination shall be based upon line 4 population projections produced by the Department of Finance line 5 and regional population forecasts used in preparing regional line 6 transportation plans, in consultation with each council of line 7 governments. If the total regional population forecast for the line 8 projection year, developed by the council of governments and used line 9 for the preparation of the regional transportation plan, is within a line 10 range of 1.5 percent of the total regional population forecast for line 11 the projection year by the Department of Finance, then the line 12 population forecast developed by the council of governments shall line 13 be the basis from which the department determines the existing line 14 and projected need for housing in the region. If the difference line 15 between the total population projected by the council of line 16 governments and the total population projected for the region by line 17 the Department of Finance is greater than 1.5 percent, then the line 18 department and the council of governments shall meet to discuss line 19 variances in methodology used for population projections and seek line 20 agreement on a population projection for the region to be used as line 21 a basis for determining the existing and projected housing need line 22 for the region. If agreement is not reached, then the population line 23 projection for the region shall be the population projection for the line 24 region prepared by the Department of Finance as may be modified line 25 by the department as a result of discussions with the council of line 26 governments.
line 27 (b)   (1)  At least 32 38 months prior to the scheduled revision line 28 pursuant to Section 65588 and prior to developing the existing and line 29 projected housing need for a region, the department shall meet and line 30 consult with the council of governments regarding the assumptions line 31 and methodology to be used by the department to determine the line 32 region’s housing needs. needs, except for the seventh housing line 33 element cycle, for which the department shall meet and consult line 34 with the council of governments at least two months prior to line 35 developing the existing and projected housing need for a region line 36 pursuant to the timelines in subparagraph (A) of paragraph (1) line 37 of subdivision (b) of Section 65584. The council of governments line 38 shall provide data assumptions from the council’s projections, line 39 including, if available, the following data for the region:
97 — 24 — AB 650

line 1 (A)  Anticipated household growth associated with projected line 2 population increases.
line 3 (B)   Household size data and trends in household size. line 4 (C)  The percentage of households that are overcrowded and the line 5 overcrowding rate for a comparable housing market. For purposes line 6 of this subparagraph:
line 7 (i)  The term “overcrowded” means more than one resident per line 8 room in each room in a dwelling.
line 9 (ii)   The term “overcrowded rate for a comparable housing line 10 market” means that the overcrowding rate is no more than the line 11 average overcrowding rate in comparable regions throughout the line 12 nation, as determined by the council of governments. line 13 (D)   The rate of household formation, or headship rates, based line 14 on age, gender, ethnicity, or other established demographic line 15 measures.
line 16 (E)  The vacancy rates in existing housing stock, and the vacancy line 17 rates for healthy housing market functioning and regional mobility, line 18 as well as housing replacement needs. For purposes of this line 19 subparagraph, the vacancy rate for a healthy rental housing market line 20 shall be considered no less than 5 percent.
line 21 (F)   Other characteristics of the composition of the projected line 22 population.
line 23 (G)  The relationship between jobs and housing, including any line 24 imbalance between jobs and housing.
line 25 (H)  The percentage of households that are cost burdened and line 26 the rate of housing cost burden for a healthy housing market. For line 27 the purposes of this subparagraph:
line 28 (i)  The term “cost burdened” means the share of very low, low-, line 29 moderate-, and above moderate-income households that are paying line 30 more than 30 percent of household income on housing costs. line 31 (ii)   The term “rate of housing cost burden for a healthy housing line 32 market” means that the rate of households that are cost burdened line 33 is no more than the average rate of households that are cost line 34 burdened in comparable regions throughout the nation, as line 35 determined by the council of governments.
line 36 (I)   The loss of units during a state of emergency that was line 37 declared by the Governor pursuant to the California Emergency line 38 Services Act (Chapter 7 (commencing with Section 8550) of line 39 Division 1 of Title 2), during the planning period immediately 97 AB 650 — 25 —

line 1 preceding the relevant revision pursuant to Section 65588 that line 2 have yet to be rebuilt or replaced at the time of the data request. line 3 (J)   The housing needs of individuals and families experiencing line 4 homelessness.
line 5 (i)  The data utilized by the council of governments shall align line 6 with homelessness data best practices as determined by the line 7 department.
line 8 (ii)  Sources of homelessness data may include the Homeless line 9 Data Integration System administered by the Interagency Council line 10 on Homelessness, the homeless point-in-time count, or other line 11 sources deemed appropriate by the department.
line 12 (2)   The department may accept or reject the information line 13 provided by the council of governments or modify its own line 14 assumptions or methodology based on this information. After line 15 consultation with the council of governments, the department shall line 16 make determinations in writing on the assumptions for each of the line 17 factors listed in subparagraphs (A) to (I), inclusive, of paragraph line 18 (1) and the methodology it shall use and shall provide these line 19 determinations to the council of governments. The methodology line 20 submitted by the department may make adjustments based on the line 21 region’s total projected households, which includes existing line 22 households as well as projected households.
line 23 (c)  (1)  After consultation with the council of governments, the line 24 department shall make a determination of the region’s existing line 25 and projected housing need based upon the assumptions and line 26 methodology determined pursuant to subdivision (b). The region’s line 27 existing and projected housing need shall reflect the achievement line 28 of a feasible balance between jobs and housing within the region line 29 using the regional employment projections in the applicable line 30 regional transportation plan. Within 30 days following notice of line 31 the determination from the department, the council of governments line 32 may file an objection to the department’s determination of the line 33 region’s existing and projected housing need with the department. line 34 (2)   The objection shall be based on and substantiate either of line 35 the following:
line 36 (A)   The department failed to base its determination on the line 37 population projection for the region established pursuant to line 38 subdivision (a), and shall identify the population projection which line 39 the council of governments believes should instead be used for the line 40 determination and explain the basis for its rationale. 97 — 26 — AB 650

line 1 (B)   The regional housing need determined by the department line 2 is not a reasonable application of the methodology and assumptions line 3 determined pursuant to subdivision (b). The objection shall include line 4 a proposed alternative determination of its regional housing need line 5 based upon the determinations made in subdivision (b), including line 6 analysis of why the proposed alternative would be a more line 7 reasonable application of the methodology and assumptions line 8 determined pursuant to subdivision (b).
line 9 (3)   If a council of governments files an objection pursuant to line 10 this subdivision and includes with the objection a proposed line 11 alternative determination of its regional housing need, it shall also line 12 include documentation of its basis for the alternative determination. line 13 Within 45 days of receiving an objection filed pursuant to this line 14 section, the department shall consider the objection and make a line 15 final written determination of the region’s existing and projected line 16 housing need that includes an explanation of the information upon line 17 which the determination was made.
line 18 (4)  In regions in which the department is required to distribute line 19 the regional housing need pursuant to Section 65584.06, no city line 20 or county may file an objection to the regional housing need line 21 determination.
line 22 (d)  Statutory changes enacted after the date the department line 23 issued a final determination pursuant to this section shall not be a line 24 basis for a revision of the final determination. line 25 SEC. 4. Section 65584.03 of the Government Code is amended line 26 to read:
line 27 65584.03. (a)  At least 28 34 months prior to the scheduled line 28 housing element update required by Section 65588, at least two line 29 or more cities and a county, or counties, may form a subregional line 30 entity for the purpose of allocation of the subregion’s existing and line 31 projected need for housing among its members in accordance with line 32 the allocation methodology established pursuant to Section line 33 65584.04. The purpose of establishing a subregion shall be to line 34 recognize the community of interest and mutual challenges and line 35 opportunities for providing housing within a subregion. A line 36 subregion formed pursuant to this section may include a single line 37 county and each of the cities in that county or any other line 38 combination of geographically contiguous local governments and line 39 shall be approved by the adoption of a resolution by each of the line 40 local governments in the subregion as well as by the council of 97 AB 650 — 27 —

line 1 governments. All decisions of the subregion shall be approved by line 2 vote as provided for in rules adopted by the local governments line 3 comprising the subregion or shall be approved by vote of the line 4 county or counties, if any, and the majority of the cities with the line 5 majority of population within a county or counties. line 6 (b)  Upon formation of the subregional entity, the entity shall line 7 notify the council of governments of this formation. If the council line 8 of governments has not received notification from an eligible line 9 subregional entity at least 28 34 months prior to the scheduled line 10 housing element update required by Section 65588, the council of line 11 governments shall implement the provisions of Sections 65584 line 12 and 65584.04. The delegate subregion and the council of line 13 governments shall enter into an agreement that sets forth the line 14 process, timing, and other terms and conditions of the delegation line 15 of responsibility by the council of governments to the subregion. line 16 (c)   At least 25 31 months prior to the scheduled revision, the line 17 council of governments shall determine the share of regional line 18 housing need assigned to each delegate subregion. The share or line 19 shares allocated to the delegate subregion or subregions by a line 20 council of governments shall be in a proportion consistent with line 21 the distribution of households assumed for the comparable time line 22 period of the applicable regional transportation plan. Prior to line 23 allocating the regional housing needs to any delegate subregion line 24 or subregions, the council of governments shall hold at least one line 25 public hearing, and may consider requests for revision of the line 26 proposed allocation to a subregion. If a proposed revision is line 27 rejected, the council of governments shall respond with a written line 28 explanation of why the proposed revised share has not been line 29 accepted.
line 30 (d)  Each delegate subregion shall fully allocate its share of the line 31 regional housing need to local governments within its subregion. line 32 If a delegate subregion fails to complete the regional housing need line 33 allocation process among its member jurisdictions in a manner line 34 consistent with this article and with the delegation agreement line 35 between the subregion and the council of governments, the line 36 allocations to member jurisdictions shall be made by the council line 37 of governments.
line 38 SEC. 4.
line 39 SEC. 5. Section 65584.04 of the Government Code is amended line 40 to read:
97 — 28 — AB 650

line 1 65584.04. (a)  At least two and one-half years before a line 2 scheduled revision required by Section 65588, each council of line 3 governments, or delegate subregion as applicable, shall develop, line 4 in consultation with the department, a proposed methodology for line 5 distributing the existing and projected regional housing need to line 6 cities, counties, and cities and counties within the region or within line 7 the subregion, where applicable pursuant to this section. The line 8 methodology shall further the objectives listed in subdivision (d) line 9 of Section 65584.
line 10 (b)   (1)  No more than six months before the development of a line 11 proposed methodology for distributing the existing and projected line 12 housing need, each council of governments shall survey each of line 13 its member jurisdictions to request, at a minimum, information line 14 regarding the factors listed in subdivision (e) that will allow the line 15 development of a methodology based upon the factors established line 16 in subdivision (e).
line 17 (2)   With respect to the objective in paragraph (5) of subdivision line 18 (d) of Section 65584, the survey shall review and compile line 19 information that will allow the development of a methodology line 20 based upon the issues, strategies, and actions that are included, as line 21 available, in an Analysis of Impediments to Fair Housing Choice line 22 or an Assessment of Fair Housing completed by any city or county line 23 or the department that covers communities within the area served line 24 by the council of governments, and in housing elements adopted line 25 pursuant to this article by cities and counties within the area served line 26 by the council of governments.
line 27 (3)   The council of governments shall seek to obtain the line 28 information in a manner and format that is comparable throughout line 29 the region and utilize readily available data to the extent possible. line 30 (4)   The information provided by a local government pursuant line 31 to this section shall be used, to the extent possible, by the council line 32 of governments, or delegate subregion as applicable, as source line 33 information for the methodology developed pursuant to this section. line 34 The survey shall state that none of the information received may line 35 be used as a basis for reducing the total housing need established line 36 for the region pursuant to Section 65584.01.
line 37 (5)   If the council of governments fails to conduct a survey line 38 pursuant to this subdivision, a city, county, or city and county may line 39 submit information related to the items listed in subdivision (e) line 40 before the public comment period provided for in subdivision (d). 97 AB 650 — 29 —

line 1 (c)  The council of governments shall electronically report the line 2 results of the survey of fair housing issues, strategies, and actions line 3 compiled pursuant to paragraph (2) of subdivision (b). The report line 4 shall describe common themes and effective strategies employed line 5 by cities and counties within the area served by the council of line 6 governments, including common themes and effective strategies line 7 around avoiding the displacement of lower income households. line 8 The council of governments shall also identify significant barriers line 9 to affirmatively furthering fair housing at the regional level and line 10 may recommend strategies or actions to overcome those barriers. line 11 A council of governments or metropolitan planning organization, line 12 as appropriate, may use this information for any other purpose, line 13 including publication within a regional transportation plan adopted line 14 pursuant to Section 65080 or to inform the land use assumptions line 15 that are applied in the development of a regional transportation line 16 plan.
line 17 (d)   Public participation and access shall be required in the line 18 development of the methodology and in the process of drafting line 19 and adoption of the allocation of the regional housing needs. line 20 Participation by organizations other than local jurisdictions and line 21 councils of governments shall be solicited in a diligent effort to line 22 achieve public participation of all economic segments of the line 23 community as well as members of protected classes under Section line 24 12955 and households with special housing needs under paragraph line 25 (7) of subdivision (a) of Section 65583. The proposed line 26 methodology, along with any relevant underlying data and line 27 assumptions, an explanation of how information about local line 28 government conditions gathered pursuant to subdivision (b) has line 29 been used to develop the proposed methodology, how each of the line 30 factors listed in subdivision (e) is incorporated into the line 31 methodology, and how the proposed methodology furthers the line 32 objectives listed in subdivision (d) of Section 65584, shall be line 33 distributed to all cities, counties, any subregions, and members of line 34 the public who have made a written or electronic request for the line 35 proposed methodology and published on the council of line 36 governments’, or delegate subregion’s, internet website. The line 37 council of governments, or delegate subregion, as applicable, shall line 38 conduct at least one public hearing to receive oral and written line 39 comments on the proposed methodology.
97 — 30 — AB 650

line 1 (e)   To the extent that sufficient data is available from local line 2 governments pursuant to subdivision (b) or other sources, each line 3 council of governments, or delegate subregion as applicable, shall line 4 consider including the following factors in developing the line 5 methodology that allocates regional housing needs:
line 6 (1)   Each member jurisdiction’s existing and projected jobs and line 7 housing relationship. This shall include an estimate based on line 8 readily available data on the number of low-wage jobs within the line 9 jurisdiction and how many housing units within the jurisdiction line 10 are affordable to low-wage workers as well as an estimate based line 11 on readily available data, of projected job growth and projected line 12 household growth by income level within each member jurisdiction line 13 during the planning period.
line 14 (2)  The opportunities and constraints to development of line 15 additional housing in each member jurisdiction, including all of line 16 the following:
line 17 (A)   Lack of capacity for sewer or water service due to federal line 18 or state laws, regulations or regulatory actions, or supply and line 19 distribution decisions made by a sewer or water service provider line 20 other than the local jurisdiction that preclude the jurisdiction from line 21 providing necessary infrastructure for additional development line 22 during the planning period.
line 23 (B)   The availability of land suitable for urban development or line 24 for conversion to residential use, the availability of underutilized line 25 land, and opportunities for infill development and increased line 26 residential densities. The council of governments may not limit line 27 its consideration of suitable housing sites or land suitable for urban line 28 development to existing zoning ordinances and land use restrictions line 29 of a locality, but shall consider the potential for increased line 30 residential development under alternative zoning ordinances and line 31 land use restrictions. The determination of available land suitable line 32 for urban development may exclude lands where the Federal line 33 Emergency Management Agency (FEMA) or the Department of line 34 Water Resources has determined that the flood management line 35 infrastructure designed to protect that land is not adequate to avoid line 36 the risk of flooding.
line 37 (C)  Lands preserved or protected from urban development under line 38 existing federal or state programs, or both, designed to protect line 39 open space, farmland, environmental habitats, and natural resources line 40 on a long-term basis, including land zoned or designated for 97 AB 650 — 31 —

line 1 agricultural protection or preservation that is subject to a local line 2 ballot measure that was approved by the voters of that jurisdiction line 3 that prohibits or restricts conversion to nonagricultural uses. line 4 (D)  County policies to preserve prime agricultural land, as line 5 defined pursuant to Section 56064, within an unincorporated area line 6 and land within an unincorporated area zoned or designated for line 7 agricultural protection or preservation that is subject to a local line 8 ballot measure that was approved by the voters of that jurisdiction line 9 that prohibits or restricts its conversion to nonagricultural uses. line 10 (E)  Emergency evacuation route capacity, wildfire risk, sea line 11 level rise, and other impacts caused by climate change. line 12 (3)   The distribution of household growth assumed for purposes line 13 of a comparable period of regional transportation plans and line 14 opportunities to maximize the use of public transportation and line 15 existing transportation infrastructure.
line 16 (4)  Agreements between a county and cities in a county to direct line 17 growth toward incorporated areas of the county and land within line 18 an unincorporated area zoned or designated for agricultural line 19 protection or preservation that is subject to a local ballot measure line 20 that was approved by the voters of the jurisdiction that prohibits line 21 or restricts conversion to nonagricultural uses. line 22 (5)  The loss of units contained in assisted housing developments, line 23 as defined in paragraph (9) of subdivision (a) of Section 65583, line 24 that changed to non-low-income use through mortgage prepayment, line 25 subsidy contract expirations, or termination of use restrictions. line 26 (6)  The percentage of existing households at each of the income line 27 levels listed in subdivision (f) of Section 65584 that are paying line 28 more than 30 percent and more than 50 percent of their income in line 29 rent.
line 30 (7)   The rate of overcrowding.
line 31 (8)   The housing needs of farmworkers.
line 32 (9)   The housing needs generated by the presence of a private line 33 university or a campus of the California State University or the line 34 University of California within any member jurisdiction. line 35 (10)  The housing needs of individuals and families experiencing line 36 homelessness. If a council of governments has surveyed each of line 37 its member jurisdictions pursuant to subdivision (b) on or before line 38 January 1, 2020, this paragraph shall apply only to the development line 39 of methodologies for the seventh and subsequent revisions of the line 40 housing element.
97 — 32 — AB 650

line 1 (11)  The loss of units during a state of emergency that was line 2 declared by the Governor pursuant to the California Emergency line 3 Services Act (Chapter 7 (commencing with Section 8550) of line 4 Division 1 of Title 2), during the planning period immediately line 5 preceding the relevant revision pursuant to Section 65588 that line 6 have yet to be rebuilt or replaced at the time of the analysis. line 7 (12)  The region’s greenhouse gas emissions targets provided line 8 by the State Air Resources Board pursuant to Section 65080. line 9 (13)   Any other factors adopted by the council of governments, line 10 that further the objectives listed in subdivision (d) of Section line 11 65584, provided that the council of governments specifies which line 12 of the objectives each additional factor is necessary to further. The line 13 council of governments may include additional factors unrelated line 14 to furthering the objectives listed in subdivision (d) of Section line 15 65584 so long as the additional factors do not undermine the line 16 objectives listed in subdivision (d) of Section 65584 and are applied line 17 equally across all household income levels as described in line 18 subdivision (f) of Section 65584 and the council of governments line 19 makes a finding that the factor is necessary to address significant line 20 health and safety conditions.
line 21 (f)  The council of governments, or delegate subregion, as line 22 applicable, shall explain in writing how each of the factors line 23 described in subdivision (e) was incorporated into the methodology line 24 and how the methodology furthers the objectives listed in line 25 subdivision (d) of Section 65584. The methodology may include line 26 numerical weighting. This information, and any other supporting line 27 materials used in determining the methodology, shall be posted line 28 on the council of governments’, or delegate subregion’s, internet line 29 website.
line 30 (g)   The following criteria shall not be a justification for a line 31 determination or a reduction in a jurisdiction’s share of the regional line 32 housing need:
line 33 (1)  Any ordinance, policy, voter-approved measure, or standard line 34 of a city or county that directly or indirectly limits the number of line 35 residential building permits issued by a city or county. line 36 (2)  Prior underproduction of housing in a city or county from line 37 the previous regional housing need allocation, as determined by line 38 each jurisdiction’s annual production report submitted pursuant line 39 to subparagraph (H) of paragraph (2) of subdivision (a) of Section line 40 65400.
97 AB 650 — 33 —

line 1 (3)   Stable population numbers in a city or county from the line 2 previous regional housing needs cycle.
line 3 (h)   Following the conclusion of the public comment period line 4 described in subdivision (d) on the proposed allocation line 5 methodology, and after making any revisions deemed appropriate line 6 by the council of governments, or delegate subregion, as applicable, line 7 as a result of comments received during the public comment period, line 8 and as a result of consultation with the department, each council line 9 of governments, or delegate subregion, as applicable, shall publish line 10 a draft allocation methodology on its internet website and submit line 11 the draft allocation methodology, along with the information line 12 required pursuant to subdivision (e), to the department. line 13 (i)  Within 60 days, the department shall review the draft line 14 allocation methodology and report its written findings to the line 15 council of governments, or delegate subregion, as applicable. In line 16 its written findings the department shall determine whether the line 17 methodology furthers the objectives listed in subdivision (d) of line 18 Section 65584. If the department determines that the methodology line 19 is not consistent with subdivision (d) of Section 65584, the council line 20 of governments, or delegate subregion, as applicable, shall take line 21 one of the following actions:
line 22 (1)  Revise the methodology to further the objectives listed in line 23 subdivision (d) of Section 65584 and adopt a final regional, or line 24 subregional, housing need allocation methodology. line 25 (2)   Adopt the regional, or subregional, housing need allocation line 26 methodology without revisions and include within its resolution line 27 of adoption findings, supported by substantial evidence, as to why line 28 the council of governments, or delegate subregion, believes that line 29 the methodology furthers the objectives listed in subdivision (d) line 30 of Section 65584 despite the findings of the department. line 31 (j)  If the department’s findings are not available within the time line 32 limits set by subdivision (i), the council of governments, or delegate line 33 subregion, may act without them.
line 34 (k)  Upon either action pursuant to subdivision (i), the council line 35 of governments, or delegate subregion, shall provide notice of the line 36 adoption of the methodology to the jurisdictions within the region, line 37 or delegate subregion, as applicable, and to the department, and line 38 shall publish the adopted allocation methodology, along with its line 39 resolution and any adopted written findings, on its internet website. 97 — 34 — AB 650

line 1 ( l)  The department may, within 45 days, review the adopted line 2 methodology and report its findings to the council of governments, line 3 or delegate subregion.
line 4 (m)  (1)  It is the intent of the Legislature that housing planning line 5 be coordinated and integrated with the regional transportation plan. line 6 To achieve this goal, the allocation plan shall allocate housing line 7 units within the region consistent with the development pattern line 8 included in the sustainable communities strategy. line 9 (2)   (A)  The final allocation plan shall ensure that the total line 10 regional housing need, by income category, as determined under line 11 Section 65584, is maintained, and that each jurisdiction in the line 12 region receive an allocation of units for low- and very low income line 13 households.
line 14 (B)  For the seventh and subsequent revisions of the housing line 15 element, the allocation to each region required under subparagraph line 16 (A) shall also include an allocation of units for acutely low and line 17 extremely low income households.
line 18 (3)   The resolution approving the final housing need allocation line 19 plan shall demonstrate that the plan is consistent with the line 20 sustainable communities strategy in the regional transportation line 21 plan and furthers the objectives listed in subdivision (d) of Section line 22 65584.
line 23 (n)   This section shall become operative on January 1, 2025. line 24 (o)   For the seventh housing element cycle, the changes to this line 25 section made by the act adding this subdivision shall not apply to line 26 councils of governments with a housing element revision due date line 27 during the 2027 calendar year.
line 28 SEC. 5.
line 29 SEC. 6. Section 65584.05 of the Government Code is amended line 30 to read:
line 31 65584.05. (a)  At least two years before the scheduled revision line 32 required by Section 65588, each council of governments and line 33 delegate subregion, as applicable, shall distribute a draft allocation line 34 of regional housing needs to each local government in the region line 35 or subregion, where applicable, and the department, based on the line 36 methodology adopted pursuant to Section 65584.04 and shall line 37 publish the draft allocation on its internet website. The council of line 38 governments may additionally distribute the draft allocation plan line 39 upon adoption of the final methodology reviewed and accepted line 40 by the department pursuant to paragraph (2) of subdivision (i) of 97 AB 650 — 35 —

line 1 Section 65584.04. The draft allocation shall include the underlying line 2 data and methodology on which the allocation is based, and a line 3 statement as to how it furthers the objectives listed in subdivision line 4 (d) of Section 65584. It is the intent of the Legislature that the draft line 5 allocation should be distributed before the completion of the update line 6 of the applicable regional transportation plan. The draft allocation line 7 shall distribute to localities and subregions, if any, within the region line 8 the entire regional housing need determined pursuant to Section line 9 65584.01 or within subregions, as applicable, the subregion’s entire line 10 share of the regional housing need determined pursuant to Section line 11 65584.03.
line 12 (b)  Within 30 days following receipt of the draft allocation, a line 13 local government within the region or the delegate subregion, as line 14 applicable, or the department may appeal to the council of line 15 governments or the delegate subregion for a revision of the share line 16 of the regional housing need proposed to be allocated to one or line 17 more local governments. Appeals shall be based upon comparable line 18 data available for all affected jurisdictions and accepted planning line 19 methodology, and supported by adequate documentation, and shall line 20 include a statement as to why the revision is necessary to further line 21 the intent of the objectives listed in subdivision (d) of Section line 22 65584. An appeal pursuant to this subdivision shall be consistent line 23 with, and not to the detriment of, the development pattern in an line 24 applicable sustainable communities strategy developed pursuant line 25 to paragraph (2) of subdivision (b) of Section 65080. Appeals shall line 26 be limited to any of the following circumstances:
line 27 (1)   The council of governments or delegate subregion, as line 28 applicable, failed to adequately consider the information submitted line 29 pursuant to subdivision (b) of Section 65584.04. line 30 (2)   The council of governments or delegate subregion, as line 31 applicable, failed to determine the share of the regional housing line 32 need in accordance with the information described in, and the line 33 methodology established pursuant to, Section 65584.04, and in a line 34 manner that furthers, and does not undermine, the intent of the line 35 objectives listed in subdivision (d) of Section 65584. line 36 (3)   A significant and unforeseen change in circumstances has line 37 occurred in the local jurisdiction or jurisdictions that merits a line 38 revision of the information submitted pursuant to subdivision (b) line 39 of Section 65584.04. Appeals on this basis shall only be made by 97 — 36 — AB 650

line 1 the jurisdiction or jurisdictions where the change in circumstances line 2 has occurred.
line 3 (c)   At the close of the period for filing appeals pursuant to line 4 subdivision (b), the council of governments or delegate subregion, line 5 as applicable, shall notify all other local governments within the line 6 region or delegate subregion and the department of all appeals and line 7 shall make all materials submitted in support of each appeal line 8 available on a publicly available internet website. Local line 9 governments and the department may, within 45 days, comment line 10 on one or more appeals. If no appeals are filed, the draft allocation line 11 may be adopted pursuant to subdivision (g).
line 12 (d)   No later than 30 days after the close of the comment period, line 13 and after providing all local governments within the region or line 14 delegate subregion, as applicable, at least 10 days prior notice, the line 15 council of governments or delegate subregion shall conduct one line 16 public hearing to consider all appeals filed pursuant to subdivision line 17 (b) and all comments received pursuant to subdivision (c). line 18 (e)   No later than 45 days after the public hearing pursuant to line 19 subdivision (d), the council of governments or delegate subregion, line 20 as applicable, shall do all of the following:
line 21 (1)   Make a final determination that either accepts, rejects, or line 22 modifies each appeal for a revised share filed pursuant to line 23 subdivision (b). Final determinations shall be based upon the line 24 information and methodology described in Section 65584.04 and line 25 whether the revision is necessary to further the objectives listed line 26 in subdivision (d) of Section 65584. The final determination shall line 27 be in writing and shall include written findings as to how the line 28 determination is consistent with this article. The final determination line 29 on an appeal may require the council of governments or delegate line 30 subregion, as applicable, to adjust the share of the regional housing line 31 need allocated to one or more local governments that are not the line 32 subject of an appeal.
line 33 (2)   Issue a proposed final allocation plan.
line 34 (3)  Submit the proposed final allocation plan to the department. line 35 (4)  Set a date for a public hearing to adopt a final allocation line 36 plan pursuant to subdivision (g).
line 37 (f)   In the proposed final allocation plan, the council of line 38 governments or delegate subregion, as applicable, shall adjust line 39 allocations to local governments based upon the results of the line 40 appeals process. If the adjustments total 7 percent or less of the 97 AB 650 — 37 —

line 1 regional housing need determined pursuant to Section 65584.01, line 2 or, as applicable, total 7 percent or less of the subregion’s share line 3 of the regional housing need as determined pursuant to Section line 4 65584.03, then the council of governments or delegate subregion, line 5 as applicable, shall distribute the adjustments proportionally to all line 6 local governments. If the adjustments total more than 7 percent of line 7 the regional housing need, then the council of governments or line 8 delegate subregion, as applicable, shall develop a methodology to line 9 distribute the amount greater than the 7 percent to local line 10 governments. The total distribution of housing need shall not equal line 11 less than the regional housing need, as determined pursuant to line 12 Section 65584.01, nor shall the subregional distribution of housing line 13 need equal less than its share of the regional housing need as line 14 determined pursuant to Section 65584.03.
line 15 (g)   Within 45 days after the issuance of the proposed final line 16 allocation plan by the council of governments and each delegate line 17 subregion, as applicable, the council of governments shall hold a line 18 public hearing to adopt a final allocation plan. To the extent that line 19 the final allocation plan fully allocates the regional share of line 20 statewide housing need, as determined pursuant to Section line 21 65584.01 and has taken into account all appeals, the council of line 22 governments shall have final authority to determine the distribution line 23 of the region’s existing and projected housing need as determined line 24 pursuant to Section 65584.01. The council of governments shall line 25 submit its final allocation plan to the department within three days line 26 of adoption. Within 15 days after the department’s receipt of the line 27 final allocation plan adopted by the council of governments, the line 28 department shall determine if the final allocation plan is consistent line 29 with the existing and projected housing need for the region, as line 30 determined pursuant to Section 65584.01. The department may line 31 revise the determination of the council of governments if necessary line 32 to obtain this consistency.
line 33 (h)   Any authority of the council of governments to review and line 34 revise the share of a city or county of the regional housing need line 35 under this section shall not constitute authority to revise, approve, line 36 or disapprove the manner in which the share of the city or county line 37 of the regional housing need is implemented through its housing line 38 program.
line 39 (i)   Any time period in subdivision (d) or (e) may be extended line 40 by a council of governments or delegate subregion, as applicable, 97 — 38 — AB 650

line 1 for up to 30 days. Any time period in subdivision (b), (c), (d), (e), line 2 or (g) may be reduced by a council of governments or delegate line 3 subregion, as applicable, to facilitate earlier adoption of the final line 4 allocation plan. No time period shall be reduced to fewer than a line 5 minimum of 10 days.
line 6 (j)   The San Diego Association of Governments may follow the line 7 process in this section for the draft and final allocation plan for line 8 the sixth revision of the housing element notwithstanding such line 9 actions being carried out before the adoption of an updated regional line 10 transportation plan and sustainable communities strategy. line 11 (k)   For the seventh housing element cycle, the changes to this line 12 section made by the act adding this subdivision shall not apply to line 13 councils of governments with a housing element revision due date line 14 during the 2027 calendar year.
line 15 SEC. 6.
line 16 SEC. 7. Section 65585 of the Government Code is amended line 17 to read:
line 18 65585. (a)  In the preparation of its housing element, each city line 19 and county shall consider the guidelines adopted by the department line 20 pursuant to Section 50459 of the Health and Safety Code. Those line 21 guidelines shall be advisory to each city or county in the line 22 preparation of its housing element.
line 23 (b)   (1)  (A)  At least 90 days prior to adoption of a revision of line 24 its housing element pursuant to subdivision (e) of Section 65588, line 25 or at least 60 days prior to the adoption of a subsequent amendment line 26 to this element, the planning agency shall submit a draft element line 27 revision or draft amendment to the department. The local line 28 government of the planning agency shall make the first draft line 29 revision of a housing element available for public comment for at line 30 least 30 days and, if any comments are received, the local line 31 government shall take at least 10 business days after the 30-day line 32 public comment period to consider and incorporate public line 33 comments into the draft revision prior to submitting it to the line 34 department. For any subsequent draft revision, the local line 35 government shall post the draft revision on its internet website and line 36 shall email a link to the draft revision to all individuals and line 37 organizations that have previously requested notices relating to line 38 the local government’s housing element at least seven days before line 39 submitting the draft revision to the department. 97 AB 650 — 39 —

line 1 (B)  The planning agency staff shall collect and compile the line 2 public comments regarding the housing element received by the line 3 city, county, or city and county and provide these comments to line 4 each member of the legislative body before it adopts the housing line 5 element.
line 6 (C)  The department shall review the draft and report its written line 7 findings to the planning agency within 90 days of its receipt of the line 8 first draft submittal for each housing element revision pursuant to line 9 subdivision (e) of Section 65588 or within 60 days of its receipt line 10 of a subsequent draft amendment or an adopted revision or adopted line 11 amendment to an element. The department shall not review the line 12 first draft submitted for each housing element revision pursuant line 13 to subdivision (e) of Section 65588 until the local government has line 14 made the draft available for public comment for at least 30 days line 15 and, if comments were received, has taken at least 10 business line 16 days to consider and incorporate public comments pursuant to line 17 paragraph (1).
line 18 (2)  (A)  At least 90 days prior to the initial adoption of a revision line 19 of its housing element pursuant to subdivision (e) of Section 65588, line 20 and at least 7 days prior to any subsequent adoption submittal if line 21 changes have occurred to the inventory of sites, a local government line 22 shall do both of the following:
line 23 (i)  Make a draft of its inventory of sites required pursuant to line 24 paragraph (3) of subdivision (a) of Section 65583 available to the line 25 department and the public and post the draft inventory on its line 26 internet website.
line 27 (ii)  Send an email to all individuals and organizations that have line 28 previously requested notices notifying them that the inventory has line 29 been updated that includes a link to the draft inventory on its line 30 website.
line 31 (B)  The requirements of this paragraph shall apply to the seventh line 32 and each subsequent revision of the housing element. line 33 (c)  In the preparation of its findings, the department may consult line 34 with any public agency, group, or person. The department shall line 35 receive and consider any written comments from any public line 36 agency, group, or person regarding the draft or adopted element line 37 or amendment under review.
line 38 (d)   In its written findings, the department shall determine line 39 whether the draft element or draft amendment substantially line 40 complies with this article. If the department finds that the draft 97 — 40 — AB 650

line 1 element or draft amendment does not substantially comply with line 2 this article, the department shall in a written communication to the line 3 planning agency do both of the following:
line 4 (1)   Identify and explain the specific deficiencies in the draft line 5 element or draft amendment, including a reference to each line 6 subdivision of Section 65583 that the draft element or draft line 7 amendment does not comply with.
line 8 (2)   Provide the specific analysis or text that the department line 9 expects the planning agency to include in the draft element or draft line 10 amendment to remedy the deficiencies identified in paragraph (1). line 11 (e)  Prior to the adoption of its draft element or draft amendment, line 12 the legislative body shall consider the findings made, and the line 13 specific analysis or text required, by the department. If the line 14 department’s findings are not available within the time limits set line 15 by this section, the legislative body may act without them. line 16 (f)  If the department finds that the draft element or draft line 17 amendment does not substantially comply with this article, the line 18 legislative body shall take one of the following actions:
line 19 (1)  (A)  Include the specific analysis or text in the draft element line 20 or draft amendment to substantially comply with this article, as line 21 required by the department pursuant to subdivision (d). line 22 (B)  Any change to a draft element or draft amendment pursuant line 23 to subparagraph (A) shall be completed in accordance with line 24 subdivision (b). This subparagraph does not constitute a change line 25 in, but is declaratory of, existing law.
line 26 (C)  Notwithstanding Section 65589.5, a jurisdiction shall not line 27 be required to appro ve a builder’s remedy project, as defined in line 28 paragraph (11) of subdi vision (h) of Section 65889.5, within the line 29 planning agenc y’s jurisdiction during either of the follo wing line 30 periods:
line 31 (i)  The duration of the department’s review of a draft element line 32 or draft amendment re vised pursuant to this paragraph. line 33 (ii)  Ninety days from the date the department notifies the line 34 planning agency of additional deficiencies not previously identified line 35 by the department in response to the prior submission of the draft line 36 element or draft amendment.
line 37 (2)   Adopt the draft element or draft amendment without the line 38 specific analysis or text required by the department pursuant to line 39 subdivision (d). The legislative body shall include in its resolution line 40 of adoption written findings that explain the reasons the legislative 97 AB 650 — 41 —

line 1 body believes that the draft element or draft amendment line 2 substantially complies with this article despite the findings of, and line 3 specific analysis or text required by, the department. line 4 (g)  (1)  Promptly following the adoption of its element or line 5 amendment, the planning agency shall submit a copy of the adopted line 6 element or amendment and any findings made pursuant to line 7 paragraph (2) of subdivision (f) to the department. line 8 (2)  This subdivision shall not be construed to excuse a legislative line 9 body from complying with subdivision (f). This paragraph does line 10 not constitute a change in, but is declaratory of, existing law. line 11 (h)  The department shall, within 60 days, review adopted line 12 housing elements or amendments and any findings pursuant to line 13 paragraph (2) of subdivision (f), make a finding as to whether the line 14 adopted element or amendment is in substantial compliance with line 15 this article, and report its findings to the planning agency. If the line 16 department finds that the adopted element or amendment is not in line 17 substantial compliance with this article, the department shall line 18 identify each subdivision of Section 65583 that the housing element line 19 does not substantially comply with and provide the specific analysis line 20 or text to the planning agency that, if adopted, would bring the line 21 housing element or amendment into substantial compliance. line 22 (i)   (1)  (A)  The department shall review any action or failure line 23 to act by the city, county, or city and county that it determines is line 24 inconsistent with an adopted housing element or Section 65583, line 25 including any failure to implement any program actions included line 26 in the housing element pursuant to Section 65583. The department line 27 shall issue written findings to the city, county, or city and county line 28 as to whether the action or failure to act substantially complies line 29 with this article, and provide a reasonable time no longer than 30 line 30 days for the city, county, or city and county to respond to the line 31 findings before taking any other action authorized by this section, line 32 including the action authorized by subparagraph (C). line 33 (B)   If the department finds that the city’s, county’s, or city and line 34 county’s action or failure to act does not substantially comply with line 35 its adopted housing element or its obligations pursuant to Section line 36 65583, there shall be a rebuttable presumption of invalidity in any line 37 legal action challenging that action or failure to act. line 38 (C)   If the department finds that the action or failure to act by line 39 the city, county, or city and county does not substantially comply line 40 with this article, and if it has issued findings pursuant to this section 97 — 42 — AB 650

line 1 that an amendment to the housing element substantially complies line 2 with this article, the department may revoke its findings until it line 3 determines that the city, county, or city and county has come into line 4 compliance with this article.
line 5 (2)  The department may consult with any local government, line 6 public agency, group, or person, and shall receive and consider line 7 any written comments from any public agency, group, or person, line 8 regarding the action or failure to act by the city, county, or city line 9 and county described in paragraph (1), in determining whether the line 10 housing element substantially complies with this article. line 11 (j)  The department shall notify the city, county, or city and line 12 county and may notify the office of the Attorney General that the line 13 city, county, or city and county is in violation of state law if the line 14 department finds that the housing element or an amendment to this line 15 element, or any action or failure to act described in subdivision line 16 (j), does not substantially comply with this article or that any local line 17 government has taken an action in violation of the following:
line 18 (1)   Housing Accountability Act (Section 65589.5). line 19 (2)   Section 65863.
line 20 (3)   Chapter 4.3 (commencing with Section 65915). line 21 (4)   Section 65008.
line 22 (5)   Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019, line 23 Sections 65941.1, 65943, and 66300).
line 24 (6)   Section 8899.50.
line 25 (7)   Section 65913.4.
line 26 (8)   Article 11 (commencing with Section 65650). line 27 (9)   Article 12 (commencing with Section 65660). line 28 (10)   Section 65913.11.
line 29 (11)   Section 65400.
line 30 (12)   Section 65863.2.
line 31 (13)   Chapter 4.1 (commencing with Section 65912.100). line 32 (14)   Section 65905.5.
line 33 (15)   Chapter 13 (commencing with Section 66310). line 34 (16)   Section 65852.21.
line 35 (17)   Section 65852.24.
line 36 (18)   Section 66411.7.
line 37 (19)   Section 65913.16.
line 38 (20)   Article 2 (commencing with Section 66300.5) of Chapter line 39 12.
line 40 (21)   Section 65852.28.
97 AB 650 — 43 —

line 1 (22)   Section 65913.4.5.
line 2 (23)   Section 66499.41.
line 3 (24)   Homeless Housing, Assistance, and Prevention program line 4 (Chapter 6 (commencing with Section 50216) and Chapter 6.5 line 5 (commencing with Section 50230) of Part 1 of Division 31 of the line 6 Health and Safety Code).
line 7 (25)  Encampment Resolution Funding program (Chapter 7 line 8 (commencing with Section 50250) of Part 1 of Division 31 of the line 9 Health and Safety Code).
line 10 (26)   Family Homelessness Challenge Grants and Technical line 11 Assistance Program (Chapter 8 (commencing with Section 50255) line 12 of Part 1 of Division 31 of the Health and Safety Code). line 13 (27)   (A)  Article 11.5 (commencing with Section 65658). line 14 (B)   This paragraph shall become operative only if Assembly line 15 Bill 3068 of the 2023–24 Regular Session of the Legislature is line 16 enacted and takes effect on or before January 1, 2025. line 17 (k)   Commencing July 1, 2019, prior to the Attorney General line 18 bringing any suit for a violation of the provisions identified in line 19 subdivision (j) related to housing element compliance and seeking line 20 remedies available pursuant to this subdivision, the department line 21 shall offer the jurisdiction the opportunity for two meetings in line 22 person or via telephone to discuss the violation, and shall provide line 23 the jurisdiction written findings regarding the violation. This line 24 paragraph does not affect any action filed prior to the effective line 25 date of this section. The requirements set forth in this subdivision line 26 do not apply to any suits brought for a violation or violations of line 27 paragraphs (1) and (3) to (9), inclusive, of subdivision (j). line 28 (l)  In any action or special proceeding brought by the Attorney line 29 General relating to housing element compliance pursuant to a line 30 notice or referral under subdivision (j), the Attorney General may line 31 request, upon a finding of the court that the housing element does line 32 not substantially comply with the requirements of this article line 33 pursuant to this section, that the court issue an order or judgment line 34 directing the jurisdiction to bring its housing element into line 35 substantial compliance with the requirements of this article. The line 36 court shall retain jurisdiction to ensure that its order or judgment line 37 is carried out. If a court determines that the housing element of line 38 the jurisdiction substantially complies with this article, it shall line 39 have the same force and effect, for purposes of eligibility for any line 40 financial assistance that requires a housing element in substantial 97 — 44 — AB 650

line 1 compliance and for purposes of any incentives provided under line 2 Section 65589.9, as a determination by the department that the line 3 housing element substantially complies with this article. line 4 (1)  If the jurisdiction has not complied with the order or line 5 judgment after 12 months, the court shall conduct a status line 6 conference. Following the status conference, upon a determination line 7 that the jurisdiction failed to comply with the order or judgment line 8 compelling substantial compliance with the requirements of this line 9 article, the court shall impose fines on the jurisdiction, which shall line 10 be deposited into the Building Homes and Jobs Trust Fund. Any line 11 fine levied pursuant to this paragraph shall be in a minimum line 12 amount of ten thousand dollars ($10,000) per month, but shall not line 13 exceed one hundred thousand dollars ($100,000) per month, except line 14 as provided in paragraphs (2) and (3). In the event that the line 15 jurisdiction fails to pay fines imposed by the court in full and on line 16 time, the court may require the Controller to intercept any available line 17 state and local funds and direct such funds to the Building Homes line 18 and Jobs Trust Fund to correct the jurisdiction’s failure to pay. line 19 The intercept of the funds by the Controller for this purpose shall line 20 not violate any provision of the California Constitution. line 21 (2)  If the jurisdiction has not complied with the order or line 22 judgment after three months following the imposition of fees line 23 described in paragraph (1), the court shall conduct a status line 24 conference. Following the status conference, if the court finds that line 25 the fees imposed pursuant to paragraph (1) are insufficient to bring line 26 the jurisdiction into compliance with the order or judgment, the line 27 court may multiply the fine determined pursuant to paragraph (1) line 28 by a factor of three. In the event that the jurisdiction fails to pay line 29 fines imposed by the court in full and on time, the court may line 30 require the Controller to intercept any available state and local line 31 funds and direct such funds to the Building Homes and Jobs Trust line 32 Fund to correct the jurisdiction’s failure to pay. The intercept of line 33 the funds by the Controller for this purpose shall not violate any line 34 provision of the California Constitution.
line 35 (3)  If the jurisdiction has not complied with the order or line 36 judgment six months following the imposition of fees described line 37 in paragraph (1), the court shall conduct a status conference. Upon line 38 a determination that the jurisdiction failed to comply with the order line 39 or judgment, the court may impose the following:
97 AB 650 — 45 —

line 1 (A)   If the court finds that the fees imposed pursuant to line 2 paragraphs (1) and (2) are insufficient to bring the jurisdiction into line 3 compliance with the order or judgment, the court may multiply line 4 the fine determined pursuant to paragraph (1) by a factor of six. line 5 In the event that the jurisdiction fails to pay fines imposed by the line 6 court in full and on time, the court may require the Controller to line 7 intercept any available state and local funds and direct such funds line 8 to the Building Homes and Jobs Trust Fund to correct the line 9 jurisdiction’s failure to pay. The intercept of the funds by the line 10 Controller for this purpose shall not violate any provision of the line 11 California Constitution.
line 12 (B)   The court may order remedies available pursuant to Section line 13 564 of the Code of Civil Procedure, under which the agent of the line 14 court may take all governmental actions necessary to bring the line 15 jurisdiction’s housing element into substantial compliance pursuant line 16 to this article in order to remedy identified deficiencies. The court line 17 shall determine whether the housing element of the jurisdiction line 18 substantially complies with this article and, once the court makes line 19 that determination, it shall have the same force and effect, for all line 20 purposes, as the department’s determination that the housing line 21 element substantially complies with this article. An agent appointed line 22 pursuant to this paragraph shall have expertise in planning in line 23 California.
line 24 (4)   This subdivision does not limit a court’s discretion to apply line 25 any and all remedies in an action or special proceeding for a line 26 violation of any law identified in subdivision (j). line 27 (m)   In determining the application of the remedies available line 28 under subdivision ( l), the court shall consider whether there are line 29 any mitigating circumstances delaying the jurisdiction from coming line 30 into compliance with state housing law. The court may consider line 31 whether a city, county, or city and county is making a good faith line 32 effort to come into substantial compliance or is facing substantial line 33 undue hardships.
line 34 (n)  Nothing in this section shall limit the authority of the office line 35 of the Attorney General to bring a suit to enforce state law in an line 36 independent capacity. The office of the Attorney General may seek line 37 all remedies available under law including those set forth in this line 38 section.
line 39 (o)  Notwithstanding Sections 11040 and 11042, if the Attorney line 40 General declines to represent the department in any action or 97 — 46 — AB 650

line 1 special proceeding brought pursuant to a notice or referral under line 2 subdivision (j), the department may appoint or contract with other line 3 counsel for purposes of representing the department in the action line 4 or special proceeding.
line 5 (p)  Notwithstanding any other provision of law, the statute of line 6 limitations set forth in subdivision (a) of Section 338 of the Code line 7 of Civil Procedure shall apply to any action or special proceeding line 8 brought by the office of the Attorney General or pursuant to a line 9 notice or referral under subdivision (j), or by the department line 10 pursuant to subdivision (o).
line 11 (q)   The amendments to this section made by the act adding this line 12 subdivision shall not be construed to limit the department’s ability line 13 to enforce programmatic requirements or remedies against cities, line 14 counties, and continuums of care pursuant to the Homeless line 15 Housing, Assistance, and Prevention program (Chapter 6 line 16 (commencing with Section 50216) and Chapter 6.5 (commencing line 17 with Section 50230) of Part 1 of Division 31 of the Health and line 18 Safety Code), the Encampment Resolution Funding program line 19 (Chapter 7 (commencing with Section 50250)), and the Family line 20 Homelessness Challenge Grants and Technical Assistance Program line 21 (Chapter 8 (commencing with Section 50255)).
line 22 SEC. 7. Section 65589.5 of the Government Code is amended line 23 to read:
line 24 65589.5. (a)  (1)  The Legislature finds and declares all of the line 25 follo wing:
line 26 (A)   The lack of housing, including emer gency shelters, is a line 27 critical problem that threatens the economic, en vironmental, and line 28 social quality of life in California.
line 29 (B)   California housing has become the most e xpensive in the line 30 nation. The excessive cost of the state’s housing supply is partially line 31 caused by acti vities and policies of many local governments that line 32 limit the approval of housing, increase the cost of land for housing, line 33 and require that high fees and e xactions be paid by producers of line 34 housing.
line 35 (C)  Among the consequences of those actions are discrimination line 36 ag ainst low-income and minority households, lack of housing to line 37 support emplo yment gro wth, imbalance in jobs and housing, line 38 reduced mobility , urban spra wl, e xcessive commuting, and air line 39 quality deterioration.
97 AB 650 — 47 —

line 1 (D)   Many local governments do not give adequate attention to line 2 the economic, en vironmental, and social costs of decisions that line 3 result in disappro val of housing development projects, reduction line 4 in density of housing projects, and excessive standards for housing line 5 de velopment projects.
line 6 (2)   In enacting the amendments made to this section by the act line 7 adding this paragraph, the Le gislature further finds and declares line 8 the follo wing:
line 9 (A)   California has a housing supply and af fordability crisis of line 10 historic proportions. The consequences of f ailing to ef fectively line 11 and aggressi vely confront this crisis are hurting millions of line 12 Californians, robbing future generations of the chance to call line 13 California home, stifling economic opportunities for w orkers and line 14 businesses, worsening poverty and homelessness, and undermining line 15 the state’ s environmental and climate objectives. line 16 (B)   While the causes of this crisis are multiple and comple x, line 17 the absence of meaningful and ef fective polic y reforms to line 18 significantly enhance the approval and supply of housing affordable line 19 to Californians of all income le vels is a key factor. line 20 (C)   The crisis has gro wn so acute in California that supply , line 21 demand, and af fordability fundamentals are characterized in the line 22 negative: underserved demands, constrained supply, and protracted line 23 unaf fordability.
line 24 (D)   According to reports and data, California has accumulated line 25 an unmet housing backlog of nearly 2,000,000 units and must line 26 pro vide for at least 180,000 new units annually to keep pace with line 27 gro wth through 2025.
line 28 (E)   California’s o verall home o wnership rate is at its lo west line 29 le vel since the 1940s. The state ranks 49th out of the 50 states in line 30 home ownership rates as well as in the supply of housing per capita. line 31 Only one-half of California’ s households are able to af ford the line 32 cost of housing in their local re gions.
line 33 (F)   Lack of supply and rising costs are compounding inequality line 34 and limiting adv ancement opportunities for many Californians. line 35 (G)   The majority of California renters, more than 3,000,000 line 36 households, pay more than 30 percent of their income to ward rent line 37 and nearly one-third, more than 1,500,000 households, pay more line 38 than 50 percent of their income to ward rent.
line 39 (H)   When Californians ha ve access to safe and af fordable line 40 housing, the y have more money for food and health care; they are 97 — 48 — AB 650

line 1 less lik ely to become homeless and in need of
line 2 government-subsidized services; their children do better in school; line 3 and b usinesses ha ve an easier time recruiting and retaining line 4 emplo yees.
line 5 (I)  An additional consequence of the state’s cumulative housing line 6 shortage is a significant increase in greenhouse g as emissions line 7 caused by the displacement and redirection of populations to states line 8 with greater housing opportunities, particularly w orking- and line 9 middle-class households. California’s cumulative housing shortfall line 10 therefore has not only national b ut international en vironmental line 11 consequences.
line 12 (J)   California’s housing picture has reached a crisis of historic line 13 proportions despite the f act that, for decades, the Legislature has line 14 enacted numerous statutes intended to significantly increase the line 15 approval, development, and affordability of housing for all income line 16 le vels, including this section.
line 17 (K)  The Legislature’s intent in enacting this section in 1982 and line 18 in expanding its provisions since then was to significantly increase line 19 the appro val and construction of ne w housing for all economic line 20 se gments of California’ s communities by meaningfully and line 21 ef fectively curbing the capability of local go vernments to den y, line 22 reduce the density for , or render infeasible housing de velopment line 23 projects and emer gency shelters. That intent has not been fulfilled. line 24 (L)   It is the polic y of the state that this section be interpreted line 25 and implemented in a manner to af ford the fullest possible weight line 26 to the interest of, and the appro val and provision of, housing. line 27 (3)   It is the intent of the Le gislature that the conditions that line 28 w ould have a specific, adverse impact upon the public health and line 29 safety , as described in paragraph (2) of subdi vision (d) and line 30 paragraph (1) of subdi vision (j), arise infrequently. line 31 (4)   It is the intent of the Le gislature that the amendments line 32 removing provisions from subparagraphs (D) and (E) of paragraph line 33 (6) of subdi vision (h) and adding those pro visions to Sections line 34 65589.5.1 and 65589.5.2 by Assembly Bill 1413 (2023), insof ar line 35 as the y are substantially the same as e xisting la w, shall be line 36 considered restatements and continuations of e xisting law, and not line 37 ne w enactments.
line 38 (b)   It is the policy of the state that a local government not reject line 39 or mak e infeasible housing de velopment projects, including line 40 emergency shelters, that contribute to meeting the need determined 97 AB 650 — 49 —

line 1 pursuant to this article without a thorough analysis of the economic, line 2 social, and en vironmental ef fects of the action and without line 3 complying with subdi vision (d).
line 4 (c)   The Le gislature also recognizes that premature and line 5 unnecessary de velopment of agricultural lands for urban uses line 6 continues to ha ve adverse effects on the availability of those lands line 7 for food and fiber production and on the economy of the state. line 8 Furthermore, it is the polic y of the state that development should line 9 be guided a way from prime agricultural lands; therefore, in line 10 implementing this section, local jurisdictions should encourage, line 11 to the maximum e xtent practicable, in filling existing urban areas. line 12 (d)   For a housing de velopment project for v ery low, low-, or line 13 moderate-income households, or an emer gency shelter, a local line 14 agenc y shall not disappro ve the housing de velopment project or line 15 emer gency shelter, or condition approval in a manner that renders line 16 the housing de velopment project or emergency shelter infeasible, line 17 including through the use of design re view standards, unless it line 18 mak es written findings, based upon a preponderance of the line 19 e vidence in the record, as to one of the following:
line 20 (1)   The jurisdiction has adopted a housing element pursuant to line 21 this article that has been revised in accordance with Section 65588, line 22 is in substantial compliance with this article, and the jurisdiction line 23 has met or e xceeded its share of the re gional housing need line 24 allocation pursuant to Section 65584 for the planning period for line 25 the income category proposed for the housing development project, line 26 pro vided that any disapproval or conditional approval shall not be line 27 based on an y of the reasons prohibited by Section 65008. If the line 28 housing de velopment project includes a mix of income categories, line 29 and the jurisdiction has not met or exceeded its share of the regional line 30 housing need for one or more of those cate gories, then this line 31 paragraph shall not be used to disapprove or conditionally approve line 32 the housing development project. The share of the regional housing line 33 need met by the jurisdiction shall be calculated consistently with line 34 the forms and definitions that may be adopted by the Department line 35 of Housing and Community De velopment pursuant to Section line 36 65400. In the case of an emer gency shelter, the jurisdiction shall line 37 ha ve met or exceeded the need for emergency shelter, as identified line 38 pursuant to paragraph (7) of subdi vision (a) of Section 65583. Any line 39 disappro val or conditional appro val pursuant to this paragraph line 40 shall be in accordance with applicable la w, rule, or standards. 97 — 50 — AB 650

line 1 (2)   The housing development project or emer gency shelter as line 2 proposed w ould have a specific, adv erse impact upon the public line 3 health or safety , and there is no feasible method to satisf actorily line 4 mitig ate or avoid the specific, adv erse impact without rendering line 5 the de velopment unaf fordable to lo w- and moderate-income line 6 households or rendering the development of the emergency shelter line 7 financially infeasible. As used in this paragraph, a “specific, line 8 adv erse impact” means a significant, quantifiable, direct, and line 9 una voidable impact, based on objective, identified written public line 10 health or safety standards, policies, or conditions as the y existed line 11 on the date the application w as deemed complete. The following line 12 shall not constitute a specific, adv erse impact upon the public line 13 health or safety:
line 14 (A)   Inconsistency with the zoning ordinance or general plan line 15 land use designation.
line 16 (B)   The eligibility to claim a welf are e xemption under line 17 subdi vision (g) of Section 214 of the Revenue and Taxation Code. line 18 (3)  The denial of the housing development project or imposition line 19 of conditions is required in order to comply with specific state or line 20 federal la w, and there is no feasible method to comply without line 21 rendering the de velopment unaf fordable to lo w- and line 22 moderate-income households or rendering the de velopment of the line 23 emer gency shelter financially infeasible.
line 24 (4)   The housing de velopment project or emer gency shelter is line 25 proposed on land zoned for agriculture or resource preserv ation line 26 that is surrounded on at least tw o sides by land being used for line 27 agricultural or resource preserv ation purposes, or which does not line 28 ha ve adequate water or wastewater facilities to serve the project. line 29 (5)   On the date an application for the housing de velopment line 30 project or emergency shelter was deemed complete, the jurisdiction line 31 had adopted a re vised housing element that w as in substantial line 32 compliance with this article, and the housing de velopment project line 33 or emer gency shelter was inconsistent with both the jurisdiction’s line 34 zoning ordinance and general plan land use designation as specified line 35 in an y element of the general plan.
line 36 (A)   This paragraph shall not be utilized to disappro ve or line 37 conditionally appro ve a housing development project proposed on line 38 a site, including a candidate site for rezoning, that is identified as line 39 suitable or a vailable for v ery lo w, lo w-, or moderate-income line 40 households in the jurisdiction’ s housing element if the housing 97 AB 650 — 51 —

line 1 de velopment project is consistent with the density specified in the line 2 housing element, e ven though the housing de velopment project line 3 w as inconsistent with both the jurisdiction’s zoning ordinance and line 4 general plan land use designation on the date the application w as line 5 deemed complete.
line 6 (B)   If the local agenc y has f ailed to identify a zone or zones line 7 where emer gency shelters are allowed as a permitted use without line 8 a conditional use or other discretionary permit, has f ailed to line 9 demonstrate that the identified zone or zones include sufficient line 10 capacity to accommodate the need for emergency shelter identified line 11 in paragraph (7) of subdi vision (a) of Section 65583, or has failed line 12 to demonstrate that the identified zone or zones can accommodate line 13 at least one emer gency shelter, as required by paragraph (4) of line 14 subdi vision (a) of Section 65583, then this paragraph shall not be line 15 utilized to disappro ve or conditionally appro ve an emer gency line 16 shelter proposed for a site designated in any element of the general line 17 plan for industrial, commercial, or multif amily residential uses. In line 18 any action in court, the burden of proof shall be on the local agency line 19 to sho w that its housing element does satisfy the requirements of line 20 paragraph (4) of subdi vision (a) of Section 65583. line 21 (6)   On the date an application for the housing de velopment line 22 project or emergency shelter was deemed complete, the jurisdiction line 23 did not ha ve an adopted re vised housing element that w as in line 24 substantial compliance with this article and the housing line 25 de velopment project is not a builder’s remedy project. line 26 (7)   On the date an application for the housing de velopment line 27 project or emergency shelter was deemed complete, the jurisdiction line 28 did not ha ve an adopted re vised housing element that w as in line 29 substantial compliance with this article, and the housing line 30 de velopment project is a builder’s remedy project, and at least one line 31 of the conditions described in subparagraph (C) of paragraph (1) line 32 of subdi vision (f) of Section 65585 applies.
line 33 (e)   Nothing in this section shall be construed to relieve the local line 34 agency from complying with the congestion management program line 35 required by Chapter 2.6 (commencing with Section 65088) of line 36 Di vision 1 of Title 7 or the California Coastal Act of 1976 line 37 (Di vision 20 (commencing with Section 30000) of the Public line 38 Resources Code). Neither shall an ything in this section be line 39 construed to relie ve the local agency from making one or more of line 40 the findings required pursuant to Section 21081 of the Public 97 — 52 — AB 650

line 1 Resources Code or otherwise complying with the California line 2 Environmental Quality Act (Division 13 (commencing with Section line 3 21000) of the Public Resources Code).
line 4 (f)   (1)  Except as pro vided in paragraphs (6) and (8) of this line 5 subdi vision, and subdivision (o), nothing in this section shall be line 6 construed to prohibit a local agenc y from requiring the housing line 7 development project to comply with objective, quantifiable, written line 8 de velopment standards, conditions, and policies appropriate to, line 9 and consistent with, meeting the jurisdiction’s share of the regional line 10 housing need pursuant to Section 65584. Ho wever, the line 11 de velopment standards, conditions, and policies shall be applied line 12 to facilitate and accommodate development at the density permitted line 13 on the site and proposed by the de velopment. Nothing in this line 14 section shall limit a project’ s eligibility for a density bonus, line 15 incenti ve, or concession, or w aiver or reduction of de velopment line 16 standards and parking ratios, pursuant to Section 65915. line 17 (2)  Except as provided in subdivision (o), nothing in this section line 18 shall be construed to prohibit a local agenc y from requiring an line 19 emer gency shelter project to comply with objective, quantifiable, line 20 written de velopment standards, conditions, and policies that are line 21 consistent with paragraph (4) of subdi vision (a) of Section 65583 line 22 and appropriate to, and consistent with, meeting the jurisdiction’ s line 23 need for emer gency shelter, as identified pursuant to paragraph line 24 (7) of subdivision (a) of Section 65583. However, the development line 25 standards, conditions, and policies shall be applied by the local line 26 agenc y to f acilitate and accommodate the de velopment of the line 27 emer gency shelter project.
line 28 (3)  Except as provided in subdivision (o), nothing in this section line 29 shall be construed to prohibit a local agenc y from imposing fees line 30 and other e xactions otherwise authorized by law that are essential line 31 to pro vide necessary public services and f acilities to the housing line 32 de velopment project or emergency shelter.
line 33 (4)   For purposes of this section, a housing development project line 34 or emer gency shelter shall be deemed consistent, compliant, and line 35 in conformity with an applicable plan, program, polic y, ordinance, line 36 standard, requirement, or other similar pro vision if there is line 37 substantial e vidence that w ould allo w a reasonable person to line 38 conclude that the housing de velopment project or emer gency line 39 shelter is consistent, compliant, or in conformity . 97 AB 650 — 53 —

line 1 (5)  For purposes of this section, a change to the zoning ordinance line 2 or general plan land use designation subsequent to the date the line 3 application w as deemed complete shall not constitute a valid basis line 4 to disappro ve or condition appro val of the housing de velopment line 5 project or emer gency shelter.
line 6 (6)   Notwithstanding paragraphs (1) to (5), inclusive, all of the line 7 following apply to a housing development project that is a builder’s line 8 remedy project:
line 9 (A)   A local agency may only require the project to comply with line 10 the objecti ve, quantifiable, written de velopment standards, line 11 conditions, and policies that w ould have applied to the project had line 12 it been proposed on a site with a general plan designation and line 13 zoning classification that allo w the density and unit type proposed line 14 by the applicant. If the local agency has no general plan designation line 15 or zoning classification that w ould have allowed the density and line 16 unit type proposed by the applicant, the de velopment proponent line 17 may identify an y objecti ve, quantifiable, written de velopment line 18 standards, conditions, and policies associated with a dif ferent line 19 general plan designation or zoning classification within that line 20 jurisdiction, that f acilitate the project’s density and unit type, and line 21 those shall apply .
line 22 (B)   (i)  Except as authorized by paragraphs (1) to (4), inclusive, line 23 of subdi vision (d), a local agenc y shall not apply an y individual line 24 or combination of objecti ve, quantifiable, written de velopment line 25 standards, conditions, and policies to the project that do an y of the line 26 follo wing:
line 27 (I)   Render the project infeasible.
line 28 (II)   Preclude a project that meets the requirements allo wed to line 29 be imposed by subparagraph (A), as modified by any density bonus, line 30 incenti ve, or concession, or w aiver or reduction of de velopment line 31 standards and parking ratios, pursuant to Section 65915, from line 32 being constructed as proposed by the applicant. line 33 (ii)  The local agency shall bear the burden of proof of complying line 34 with clause (i).
line 35 (C)   (i)  A project applicant that qualifies for a density bonus line 36 pursuant to Section 65915 shall recei ve tw o incenti ves or line 37 concessions in addition to those granted pursuant to paragraph (2) line 38 of subdi vision (d) of Section 65915.
line 39 (ii)   For a project seeking density bonuses, incenti ves, line 40 concessions, or an y other benefits pursuant to Section 65915, and 97 — 54 — AB 650

line 1 notwithstanding paragraph (6) of subdivision (o) of Section 65915, line 2 for purposes of this paragraph, maximum allo wable residential line 3 density or base density means the density permitted for a b uilder’s line 4 remedy project pursuant to subparagraph (C) of paragraph (11) of line 5 subdi vision (h).
line 6 (iii)   A local agency shall grant an y density bonus pursuant to line 7 Section 65915 based on the number of units proposed and line 8 allo wable pursuant to subparagraph (C) of paragraph (11) of line 9 subdi vision (h).
line 10 (i v)  A project that dedicates units to e xtremely lo w-income line 11 households pursuant to subclause (I) of clause (i) of subparagraph line 12 (C) of paragraph (3) of subdi vision (h) shall be eligible for the line 13 same density bonus, incenti ves or concessions, and w aivers or line 14 reductions of de velopment standards as pro vided to a housing line 15 de velopment project that dedicates three percentage points more line 16 units to v ery low income households pursuant to paragraph (2) of line 17 subdi vision (f) of Section 65915.
line 18 (v)   All units dedicated to e xtremely lo w-income, v ery lo w line 19 income, lo w-income, and moderate-income households pursuant line 20 to paragraph (11) of subdi vision (h) shall be counted as affordable line 21 units in determining whether the applicant qualifies for a density line 22 bonus pursuant to Section 65915.
line 23 (D)   (i)  The project shall not be required to apply for, or receive line 24 appro val of, a general plan amendment, specific plan amendment, line 25 rezoning, or other le gislative approval.
line 26 (ii)   The project shall not be required to apply for , or recei ve, line 27 an y approval or permit not generally required of a project of the line 28 same type and density proposed by the applicant. line 29 (iii)   Any project that complies with this paragraph shall be line 30 deemed consistent, compliant, and in conformity with an applicable line 31 plan, program, polic y, ordinance, standard, requirement, line 32 redevelopment plan and implementing instruments, or other similar line 33 pro vision for all purposes, and shall not be considered or treated line 34 as a nonconforming lot, use, or structure for an y purpose. line 35 (E)   A local agency shall not adopt or impose any requirement, line 36 process, practice, or procedure or undertake any course of conduct, line 37 including, but not limited to, increased fees or inclusionary housing line 38 requirements, that applies to a project solely or partially on the line 39 basis that the project is a b uilder’s remedy project. 97 AB 650 — 55 —

line 1 (F)   (i)  A b uilder’s remedy project shall be deemed to be in line 2 compliance with the residential density standards for the purposes line 3 of complying with subdi vision (b) of Section 65912.123. line 4 (ii)   A b uilder’s remedy project shall be deemed to be in line 5 compliance with the objecti ve zoning standards, objecti ve line 6 subdi vision standards, and objective design review standards for line 7 the purposes of complying with paragraph (5) of subdi vision (a) line 8 of Section 65913.4.
line 9 (G)   (i)  (I)  If the local agenc y had a local af fordable housing line 10 requirement, as defined in Section 65912.101, that on January 1, line 11 2024, required a greater percentage of af fordable units than line 12 required under subparagraph (A) of paragraph (11) of subdi vision line 13 (h), or required an af fordability level deeper than what is required line 14 under subparagraph (A) of paragraph (11) of subdivision (h), then, line 15 e xcept as pro vided in subclauses (II) and (III), the local agenc y line 16 may require a housing de velopment for mixed-income households line 17 to comply with an otherwise lawfully applicable local affordability line 18 percentage or affordability level. The local agency shall not require line 19 housing for mix ed-income households to comply with an y other line 20 aspect of the local af fordable housing requirement. line 21 (II)   Notwithstanding subclause (I), the local affordable housing line 22 requirements shall not be applied to require housing for line 23 mix ed-income households to dedicate more than 20 percent of the line 24 units to af fordable units of any kind.
line 25 (III)   Housing for mixed-income households that is required to line 26 dedicate 20 percent of the units to af fordable units shall not be line 27 required to dedicate an y of the affordable units at an income level line 28 deeper than lo wer income households, as defined in Section line 29 50079.5 of the Health and Safety Code.
line 30 (IV)  A local agency may only require housing for mixed-income line 31 households to comply with the local percentage requirement or line 32 affordability level described in subclause (I) if it first makes written line 33 findings, supported by a preponderance of e vidence, that line 34 compliance with the local percentage requirement or the line 35 af fordability le vel, or both, w ould not render the housing line 36 de velopment project infeasible. If a reasonable person could find line 37 compliance with either requirement, either alone or in combination, line 38 would render the project infeasible, the project shall not be required line 39 to comply with that requirement.
97 — 56 — AB 650

line 1 (ii)   Affordable units in the de velopment project shall ha ve a line 2 comparable bedroom and bathroom count as the mark et rate units. line 3 (iii)  Each affordable unit dedicated pursuant to this subparagraph line 4 shall count to ward satisfying a local af fordable housing line 5 requirement. Each af fordable unit dedicated pursuant to a local line 6 af fordable housing requirement that meets the criteria established line 7 in this subparagraph shall count towards satisfying the requirements line 8 of this subparagraph. This is declaratory of existing law. line 9 (7)   (A)  For a housing de velopment project application that is line 10 deemed complete before January 1, 2025, the de velopment line 11 proponent for the project may choose to be subject to the provisions line 12 of this section that were in place on the date the preliminary line 13 application w as submitted, or, if the project meets the definition line 14 of a b uilder’s remedy project, it may choose to be subject to an y line 15 or all of the pro visions of this section applicable as of January 1, line 16 2025.
line 17 (B)   Notwithstanding subdivision (c) of Section 65941.1, for a line 18 housing de velopment project deemed complete before January 1, line 19 2025, the de velopment proponent may choose to re vise their line 20 application so that the project is a builder’s remedy project, without line 21 being required to resubmit a preliminary application, e ven if the line 22 revision results in the number of residential units or square footage line 23 of construction changing by 20 percent or more. line 24 (8)   A housing de velopment project proposed on a site that is line 25 identified as suitable or a vailable for v ery lo w, lo w-, or line 26 moderate-income households in the jurisdiction’s housing element, line 27 that is consistent with the density specified in the most recently line 28 updated and adopted housing element, and that is inconsistent with line 29 both the jurisdiction’ s zoning ordinance and general plan land use line 30 designation on the date the application was deemed complete, shall line 31 be subject to the pro visions of subparagraphs (A), (B), and (D) of line 32 paragraph (6) and paragraph (9).
line 33 (9)   For purposes of this subdi vision, “objective, quantifiable, line 34 written de velopment standards, conditions, and policies” means line 35 criteria that involve no personal or subjective judgment by a public line 36 official and are uniformly v erifiable by reference to an e xternal line 37 and uniform benchmark or criterion a vailable and kno wable by line 38 both the development applicant or proponent and the public official line 39 before submittal, including, b ut not limited to, an y standard, line 40 ordinance, or polic y described in paragraph (4) of subdivision (o). 97 AB 650 — 57 —

line 1 Nothing herein shall af fect the oblig ation of the housing line 2 de velopment project to comply with the minimum b uilding line 3 standards appro ved by the California Building Standards line 4 Commission as pro vided in P art 2.5 (commencing with Section line 5 18901) of Di vision 13 of the Health and Safety Code. In the event line 6 that applicable objecti ve, quantifiable, written de velopment line 7 standards, conditions, and policies are mutually inconsistent, a line 8 de velopment shall be deemed consistent with the criteria that line 9 permits the density and unit type closest to that of the proposed line 10 project.
line 11 (g)   This section shall be applicable to charter cities because the line 12 Le gislature finds that the lack of housing, including emer gency line 13 shelter , is a critical statewide problem.
line 14 (h)   The follo wing definitions apply for the purposes of this line 15 section:
line 16 (1)   “Feasible” means capable of being accomplished in a line 17 successful manner within a reasonable period of time, taking into line 18 account economic, environmental, social, and technological factors. line 19 (2)   “Housing development project” means a use consisting of line 20 an y of the following:
line 21 (A)   Residential units only.
line 22 (B)   Mixed-use de velopments consisting of residential and line 23 nonresidential uses that meet an y of the following conditions:
line 24 (i)   At least two-thirds of the ne w or converted square footage line 25 is designated for residential use.
line 26 (ii)   At least 50 percent of the new or converted square footage line 27 is designated for residential use and the project meets both of the line 28 follo wing:
line 29 (I)   The project includes at least 500 net new residential units. line 30 (II)   No portion of the project is designated for use as a hotel, line 31 motel, bed and breakf ast inn, or other transient lodging, except a line 32 portion of the project may be designated for use as a residential line 33 hotel, as defined in Section 50519 of the Health and Safety Code. line 34 (iii)   At least 50 percent of the net ne w or con verted square line 35 footage is designated for residential use and the project meets all line 36 of the follo wing:
line 37 (I)   The project includes at least 500 net new residential units. line 38 (II)  The project involves the demolition or conversion of at least line 39 100,000 square feet of nonresidential use.
97 — 58 — AB 650

line 1 (III)   The project demolishes at least 50 percent of the e xisting line 2 nonresidential uses on the site.
line 3 (IV)   No portion of the project is designated for use as a hotel, line 4 motel, bed and breakf ast inn, or other transient lodging, except a line 5 portion of the project may be designated for use as a residential line 6 hotel, as defined in Section 50519 of the Health and Safety Code. line 7 (C)   Transitional housing or supportive housing. line 8 (D)   Farmworker housing, as defined in subdi vision (h) of line 9 Section 50199.7 of the Health and Safety Code.
line 10 (3)   (A)  “Housing for v ery lo w, lo w-, or moderate-income line 11 households” means housing for lo wer income households, line 12 mix ed-income households, or moderate-income households. line 13 (B)   “Housing for lower income households” means a housing line 14 de velopment project in which 100 percent of the units, excluding line 15 managers’ units, are dedicated to lo wer income households, as line 16 defined in Section 50079.5 of the Health and Safety Code, at an line 17 af fordable cost, as defined by Section 50052.5 of the Health and line 18 Safety Code, or an af fordable rent set in an amount consistent with line 19 the rent limits established by the California Tax Credit Allocation line 20 Committee. The units shall be subject to a recorded deed restriction line 21 for a period of 55 years for rental units and 45 years for line 22 o wner-occupied units.
line 23 (C)   (i)  “Housing for mixed-income households” means any of line 24 the follo wing:
line 25 (I)   A housing development project in which at least 7 percent line 26 of the total units, as defined in subparagraph (A) of paragraph (8) line 27 of subdi vision (o) of Section 65915, are dedicated to e xtremely line 28 lo w income households, as defined in Section 50106 of the Health line 29 and Safety Code.
line 30 (II)   A housing development project in which at least 10 percent line 31 of the total units, as defined in subparagraph (A) of paragraph (8) line 32 of subdi vision (o) of Section 65915, are dedicated to v ery low line 33 income households, as defined in Section 50105 of the Health and line 34 Safety Code.
line 35 (III)  A housing development project in which at least 13 percent line 36 of the total units, as defined in subparagraph (A) of paragraph (8) line 37 of subdivision (o) of Section 65915, are dedicated to lower income line 38 households, as defined in Section 50079.5 of the Health and Safety line 39 Code.
97 AB 650 — 59 —

line 1 (IV)   A housing development project in which there are 10 or line 2 fe wer total units, as defined in subparagraph (A) of paragraph (8) line 3 of subdi vision (o) of Section 65915, that is on a site that is smaller line 4 than one acre, and that is proposed for de velopment at a minimum line 5 density of 10 units per acre.
line 6 (ii)   All units dedicated to e xtremely lo w income, v ery lo w line 7 income, and lo w-income households pursuant to clause (i) shall line 8 meet both of the follo wing:
line 9 (I)   The units shall have an affordable housing cost, as defined line 10 in Section 50052.5 of the Health and Safety Code, or an affordable line 11 rent, as defined in Section 50053 of the Health and Safety Code. line 12 (II)   The development proponent shall agree to, and the local line 13 agenc y shall ensure, the continued af fordability of all affordable line 14 rental units included pursuant to this section for 55 years and all line 15 af fordable ownership units included pursuant to this section for a line 16 period of 45 years.
line 17 (D)   “Housing for moderate-income households” means a line 18 housing de velopment project in which 100 percent of the units are line 19 sold or rented to moderate-income households, as defined in line 20 Section 50093 of the Health and Safety Code, at an af fordable line 21 housing cost, as defined in Section 50052.5 of the Health and line 22 Safety Code, or an af fordable rent, as defined in Section 50053 of line 23 the Health and Safety Code. The units shall be subject to a recorded line 24 deed restriction for a period of 55 years for rental units and 45 line 25 years for o wner-occupied units.
line 26 (4)   “Area median income” means area median income as line 27 periodically established by the Department of Housing and line 28 Community De velopment pursuant to Section 50093 of the Health line 29 and Safety Code.
line 30 (5)   Notwithstanding an y other la w, until January 1, 2030, line 31 “deemed complete” means that the applicant has submitted a line 32 preliminary application pursuant to Section 65941.1 or , if the line 33 applicant has not submitted a preliminary application, has line 34 submitted a complete application pursuant to Section 65943. The line 35 local agenc y shall bear the burden of proof in establishing that the line 36 application is not complete.
line 37 (6)  “Disapprove the housing development project” includes any line 38 instance in which a local agenc y does any of the following:
line 39 (A)   Votes or tak es final administrati ve action on a proposed line 40 housing de velopment project application and the application is 97 — 60 — AB 650

line 1 disappro ved, including an y required land use appro vals or line 2 entitlements necessary for the issuance of a b uilding permit. line 3 (B)   Fails to comply with the time periods specified in line 4 subdi vision (a) of Section 65950. An extension of time pursuant line 5 to Article 5 (commencing with Section 65950) shall be deemed to line 6 be an e xtension of time pursuant to this paragraph. line 7 (C)   Fails to meet the time limits specified in Section 65913.3. line 8 (D)   Fails to cease a course of conduct undertak en for an line 9 improper purpose, such as to harass or to cause unnecessary delay line 10 or needless increases in the cost of the proposed housing line 11 de velopment project, that ef fectively disappro ves the proposed line 12 housing de velopment without taking final administrative action if line 13 all of the follo wing conditions are met:
line 14 (i)   The project applicant pro vides written notice detailing the line 15 challenged conduct and wh y it constitutes disapproval to the local line 16 agenc y established under Section 65100.
line 17 (ii)  Within five working days of receiving the applicant’s written line 18 notice described in clause (i), the local agency shall post the notice line 19 on the local agenc y’s internet website, provide a copy of the notice line 20 to an y person who has made a written request for notices pursuant line 21 to subdi vision (f) of Section 21167 of the Public Resources Code, line 22 and file the notice with the county clerk of each county in which line 23 the project will be located. The county clerk shall post the notice line 24 and mak e it available for public inspection in the manner set forth line 25 in subdi vision (c) of Section 21152 of the Public Resources Code. line 26 (iii)   The local agency shall consider all objections, comments, line 27 e vidence, and concerns about the project or the applicant’s written line 28 notice and shall not mak e a determination until at least 60 days line 29 after the applicant has gi ven written notice to the local agenc y line 30 pursuant to clause (i).
line 31 (i v)  Within 90 days of receipt of the applicant’s written notice line 32 described in clause (i), the local agenc y shall issue a written line 33 statement that it will immediately cease the challenged conduct or line 34 issue written findings that comply with both of the follo wing line 35 requirements:
line 36 (I)   The findings articulate an objecti ve basis for wh y the line 37 challenged course of conduct is necessary .
line 38 (II)  The findings provide clear instructions on what the applicant line 39 must submit or supplement so that the local agenc y can mak e a 97 AB 650 — 61 —

line 1 final determination re garding the ne xt necessary appro val or set line 2 the date and time of the ne xt hearing.
line 3 (v)   (I)  If a local agenc y continues the challenged course of line 4 conduct described in the applicant’ s written notice and f ails to line 5 issue the written findings described in clause (i v), the local agency line 6 shall bear the burden of establishing that its course of conduct does line 7 not constitute a disappro val of the housing de velopment project line 8 under this subparagraph in an action tak en by the applicant. line 9 (II)  If an applicant challenges a local agency’s course of conduct line 10 as a disapproval under this subparagraph, the local agency’s written line 11 findings described in clause (i v) shall be incorporated into the line 12 administrati ve record and be deemed to be the final administrative line 13 action for purposes of adjudicating whether the local agenc y’s line 14 course of conduct constitutes a disappro val of the housing line 15 de velopment project under this subparagraph.
line 16 (vi)   A local agency’s action in furtherance of complying with line 17 the California En vironmental Quality Act (Di vision 13 line 18 (commencing with Section 21000) of the Public Resources Code), line 19 including, b ut not limited to, imposing mitigating measures, shall line 20 not constitute project disappro val under this subparagraph. line 21 (E)   Fails to comply with Section 65905.5. For purposes of this line 22 subparagraph, a b uilder’s remedy project shall be deemed to line 23 comply with the applicable, objecti ve general plan and zoning line 24 standards in ef fect at the time an application is deemed complete. line 25 (F)  (i)  Determines that an application for a housing development line 26 project is incomplete pursuant to subdi vision (a) or (b) of Section line 27 65943 and includes in the determination an item that is not required line 28 on the local agenc y’s submittal requirement checklist. The local line 29 agenc y shall bear the b urden of proof that the required item is line 30 listed on the submittal requirement checklist.
line 31 (ii)  In a subsequent review of an application pursuant to Section line 32 65943, requests the applicant pro vide new information that w as line 33 not identified in the initial determination and upholds this line 34 determination in the final written determination on an appeal filed line 35 pursuant to subdi vision (c) of Section 65943. The local agenc y line 36 shall bear the b urden of proof that the required item was identified line 37 in the initial determination.
line 38 (iii)   Determines that an application for a housing development line 39 project is incomplete pursuant to subdi vision (a) or (b) of Section line 40 65943, a reasonable person w ould conclude that the applicant has 97 — 62 — AB 650