City Council Memorandum
TO: HONORABLE MAYO R AND CITY COUNCIL
FROM: COMMUNITY & ECONOMIC DEVELOPMENT
DATE: FEBRUARY 8, 2022
WARDS: ALL
DEPARTMENT
SUBJECT: 2021 CALIFORNIA HOUSING BILLS UPDATE
ISSUE:
Receiv
e and file a summary of the California Legisl ature’s 2021 Housing Bills with an update on the potential impacts for the City of Riverside.
RECOMMENDATION:
That the City Council receive and file the staff report on the California Legislature’s 2021 Housing Bills.
HOUSING AND HOMELES
SNESS COMMITTEE:
On December 20, 2021, the Housing and Home lessn
ess Committee (Co mmittee) received an
update on Housing Legislation signed into law by Governor Newsom in 2021 and recommended that City Council receive and file the update. The staff report summarizes the bills and categorizes them based on potential impact to the City: low, moderate, and high impact (Attachments 1 and 2). The Committee requested additional information or clarification on five Bills as follows:
AB 1029 (Low Impact) - The Committee inquired about the City’s Pro-Housing policies and approach. The Housing Element, recently adopted by City Council, includes Pro-Housing Policies to protect affordable housing. The Housing Authority will continue to maintain and track the affordable housing projects with covenants.
SB 10 (Low Impact) - The Committee inquired on what the process would be for the City to “opt-in” to the residential density increases authorized under SB 10. Staff indicated that City Council has the option to change the zoning per the State Legislation. Staff prepared a map (Attachment 3) showing the City’s trans it-rich areas (half-mile radius around the Magnolia/Market/University corridor and the thr ee Metrolink stations) indicating the areas that could potentially be impacted by this Bill if City Council chooses to move forward. AB 1584 (Moderate Impact) - The Committee inquired about the changes to noticing requirements on terminating affordability co venants. Staff explained that the noticing requirement is that the owner must notify all affected tenants at least 12 months prior to the anticipated date of th e termination of a subsidy contra ct, the expiration of rental
2021 California Housing Bill Update ● Page 2
restrictions, or prepayment on an assist ed housing development. These noticing requirements were previously in the state law. The Committee report incorrectly stated that the Bill modified these noticing requirement s. AB 1584 made no changes to the noticing requirements.
AB 602 (High Impact) - The Co mmittee inquired about potential effects to City Departments related to the requirement for the nexus study for impact fees. The City is currently updating the fee schedule which includes several im pact fees from both the Public Works Department and the Parks, Recreation and Community Services Department. In the next Fee Study, the City will be required to update fees at a minimum of 8-year intervals and tie those fees to the scale of the development. The nexus study requirement does not apply to the establishment or modi fication of application fees, us er fees, or other non-impact related fees.
SB 9 (High Impact) - The Committee inquired if staff have prepared a map indicating the areas of the City where SB 9 would apply. Staff developed a map (Attachment 4) that identifies the areas of the Cit y that are impacted and those that have been excluded (fire hazard severity zones, flood zones, historic districts, agricultural lands protected by a local ballot initiative, etc.).
LEGISLATIVE HISTORY:
In September 2021, Governor Gavin Newsom signed 31 housing bills to promote housing production across the State by streamlining the approval proce ss, establishing more local accountability, encouraging greater affordability, and allowing for more density.
BACKGROUND:
The State of Californi a has been facing an increasing housing shortage for the past few years.
The housing shortage is a result of housing production not keeping up with the need for a variety of reasons, including, but not limited to the following: high land costs, neighborhood opposition to new housing, environmental regulations, population growth, gro wing income disparity, cost of construction, and local and State regulations.
The State of California has identified the shortage of housing as a legislative priority. The housing shortage impacts the California economy, contributes to the homelessness crisis, and results in longer commutes, which increases greenhouse gas em issions, air pollution, and poor health. In September 2021, Governor Newsom signed 31 bills into law addressing the State’s housing crisis (Attachment 2).
The bills generally fall into the following categor ies: Accessory Dwelling Unit (ADU) Regulations (1 Bill), Affordable Housing (4 Bills), Tax Credits (1 Bill), Density Bonus (4 Bills), Enforcement (1 Bill), Housing Elements (6 Bills), Impact Fees (1 Bill), Process (3 Bills), Public Financing (1 Bill), Real Estate (3 Bills), Senior Housing (1 Bill), Statewide Housing Plan (1 Bill), Surplus Land (2 Bills), Zoning (1 Bill) and an Omnibus Package – many topics (1 Bill).
2021 California Housing Bill Update ● Page 3
DISCUSSION:
Of the 31 Bills, staff has determined that nine (9) will have low impacts to the City of Riverside as they are the responsibility of other agencies. These bills include AB 68, AB 447, AB 948, AB 1095, AB 1297, AB 1466, SB 263, SB 281, and SB 281.
Nine (9) Bills that are the responsibility of th e City will likely have moderat e impacts on the City.
These include AB 345, AB 491, AB 1043, AB 1584, SB 8, SB 290, SB 478, SB 591, and SB 728.
Three (3) Bills that are the resp onsibility of the City of Riverside will likely have high impacts on the City of Riverside. These include AB 602, AB 838, and SB 9.
The Housing and Homelessness Committee report (Att achment 1) summarizes the 31 bills and provides a brief description of eac h of them. The Bill Summary (Atta chment 2) also provides a hyperlink directly to the Bill language.
STRATEGIC PLAN ALIGNMENT:
The Housing Legislation Update to the City Council supports Strategic Priority 2 – Community Well-Being and Goals 2.1, 2.2 and 2.4.
This update aligns with each of the Cross-Cutting Threads as follows:
1. Community Trust – The Update aligns with the Comm unity Trust Cross-Cutting Thread as the update provides needed information fo r both the City Council members and the public on changes to housing related legislation recently signed into law by the State.
2. Equity – The Update aligns with the Equity Cro ss-Cutting Thread in that it provides information on State Legislation that relates to further housing opportunities for all residents in the City.
3. Fiscal Responsibility – The Update aligns with the Fi scal Responsibility Cross-Cutting Thread as changes to regulations to housing projects will help to streamline housing projects and provide additional housing options for all residents.
4. Innovation - The proposed project aligns with t he Innovation Cross-Cutting Thread as it will result in updated processe s and regulations that promot e innovation and creativity in future housing developments.
5. Sustainability and Resiliency – The proposed project aligns with the Sustainability and Resiliency Cross-Cutting Thread as it cons iders existing and future housing needs for residents.
FISCAL IMPACT:
There is no fiscal impact associated with City Council receiving and filing this report.
Prepared by: David Welch, Community & Economic Development Director Certified as to
availability of funds: Edward Enriquez, Chief Financial Officer/City Treasurer Approved by: Rafael Guzman, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
2021 California Housing Bill Update ● Page 4
Concurs with;
___________________________
Erin Edwards, Chair
Housing and Homelessness Committee
Attachments:
1. Housing and Homelessness Committee Repor t - December 20, 2021Potentially Impacted Areas – SB 10
2. Summary of Housing Legislation
3. Potentially Impacted Areas – SB 10
4. Potentially Impacted Areas – SB 9
5. Presentation