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1 RiversideCA.gov
1 RiversideCA.gov
City Council
March 1, 2022
California 2021 Housing Legislation
Community & Economic Development
RiversideCA.gov
2 1. The twin crises of housing a ffordability and homelessness persist. a) Production below demand
b) High land and development costs
c) Rapid sales and rental price increases
d) Neighborhood opposition
e) Regulatory constraints
f) Environmental regulations
2. This remains a priority for both the Governor and the Legislature. a) Senate Bill (SB) 8, 9, 10 and Assembly Bill (AB) 1174 – signed into law September 16, 2021
b) 27 additional housing-related bills – signed into law September 28, 2021
BACKGROUND
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3 BACKGROUND
CATEGORY – IMPACT TO CITY NUMBER OF BILLS
Low (non-City responsibility) 9
Low (City responsibility) 10
Medium 9
High 3
TOTAL 31
HOUSING LEGISLATION PASSED INTO LAW IN 2021
RiversideCA.gov
4 BACKGROUND
HOUSING AND HOMELESSNES COMMITTEE – DECEMBER 20, 2021
The Committee requested additional information or clarification on 5 Bills:
1. AB 1029 - The Committee inquired about the City’s Pro-Housing policies and approach.
2. SB 10 - The Committee inquired on what the process would be for the City to “opt-in” to the residential density increases authorized under SB 10.
3. AB 1584 - The Committee inquired about the changes to noticing requirements on terminating affordability covenants.
4. AB 602 - The Committee inquired about potential effects to City Departments related to the requirement for the nexus study for impact fees.
5. SB 9 - The Committee inquired if staff have prepared a map indicating the areas of the City where SB 9 would apply.
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3 RiversideCA.gov
5 No. Bill Description Responsible
Agency
Impact
to City
1 AB 948 Changes to licensing and continuing education requirements for real estate appraisers.
Bureau of Real
Estate Low
2 AB 1466
Requires parties to real estate transactions to modify deeds and other property documents to remove illegal, discriminatory restrictions during the recordation process.
Bureau of Real
Estate Low
3 SB 263 Changes licensing education requirements for real estate brokers and agents.
Bureau of Real
Estate Low
4 AB 447 Changes restrictions, eligibility and allocation methods for tax credit financing for affordable housing. CTCAC Low
5 AB 1297 Allows state Infrastructure and Economic Development Bank to finance housing in limited circumstances. I-Bank Low
6 AB 68 Changes requirements for content, publication and reporting related to the California Statewide Housing Plan. HCD Low 7 SB 791 Establishes Surplus Land Unit within state Department of Housing and Community Development (HCD). HCD Low
8 AB 1095
Requires funds administered by the Strategic Growth Council for affordable housing to be made available for affordable home ownership in addition to rentals.
Strategic
Growth Council Low
9 SB 381 Applies only to the City of South Pasadena. N/A Low
LOW IMPACT (NON-CITY RESPONSIBILITY)
RiversideCA.gov
6 LOW IMPACT (CITY RESPONSIBILITY)
No. Bill Topic Anticipated Impact
1 AB 215 Housing Element Low
2 AB 571 Density Bonus Low
3 AB 634 Density Bonus Low
4 AB 721 Affordable Housing Low
5 AB 787 Housing Element Low
6 AB 1029 Housing Element Low
7 AB 1174 Process Low
8 AB 1340 Housing Element Low
9 AB 1398 Housing Element Low
10 SB 10 Zoning Low
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7 AB 215 – Planning and Zoning Law:
Housing Element: Violations
LOW IMPACT (CITY RESPONSIBILITY)
WHEN IT APPLIES
• Next revision of the Housing Element
WHAT IT DOES
• Requires draft Housing Element (HE)
revisions to be made public for 30 days
before submittal to State for review
• Increases State review time to 90 days
• Allows State to sue jurisdictions for
violations of Housing Accountability Act
(HAA)
AB 571 – Planning and Zoning:
Density Bonuses: Affordable Housing
WHEN IT APPLIES
• January 1, 2022
WHAT IT DOES
• Prohibits fees imposed to fund affordable
housing from being imposed on
affordable housing units in a Density
Bonus project
RiversideCA.gov
8 AB 634 – Density Bonus Law:
Affordability Restrictions
LOW IMPACT (CITY RESPONSIBILITY)
WHEN IT APPLIES
• January 1, 2022
WHAT IT DOES
• Clarifies that existing Density Bonus Law
does not prohibit jurisdictions from
imposing affordability periods of longer
than 55 years
AB 721 – Covenants and
Restrictions: Affordable Housing
WHEN IT APPLIES
• January 1, 2022
WHAT IT DOES
• Makes deed restrictions on title to
property that limit the number of
residential units, number of families or
occupants, size or location of units, and
similar restrictions void and unenforceable
against affordable housing development
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9 AB 787 – Planning and Zoning: Housing
Element: Converted Affordable Housing
Units
LOW IMPACT (CITY RESPONSIBILITY)
WHEN IT APPLIES
• January 1, 2023
WHAT IT DOES
• Allows jurisdictions to count market-rate
units that are converted to affordable
housing toward up to 25% of their
Moderate-Income Regional Housing
Needs Assessment (RHNA) obligation
AB 1029 – Housing Elements:
Prohousing Local Policies
WHEN IT APPLIES
• July 1, 2021
WHAT IT DOES
• Adds preservation of affordable units
through extension of affordability
covenants to the list of prohousing local
policies for which a jurisdiction can be
recognized when applying for grants
RiversideCA.gov
10 AB 1174 – Planning and Zoning:
Housing: Development Appliciation
Modifications, Approvals and
Subsequent Permits
LOW IMPACT (CITY RESPONSIBILITY)
WHEN IT APPLIES
• Effective immediately
WHAT IT DOES
• For projects approved pursuant to a SB 35
Streamlined Ministerial process, extends
the time limit to secure building permits
from three years to indefinite if certain
criteria are met
AB 1304 – Affirmatively Further Fair
Housing: Housing Element: Inventory
of Land
WHEN IT APPLIES
• January 1, 2022/Next Housing Element
Revision
WHAT IT DOES
• Clarifies that jurisdictions are required by
law to Affirmatively Further Fair Housing in
administering their housing programs
• Requires future HE revisions to assess the
RHNA Sites Inventory as it relates to
Affirmatively Furthering Fair Housing
(AFFH)
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11 AB 1398 – Planning and Zoning:
Housing Element: Rezoning of Sites:
Prohousing Local Policies
LOW IMPACT (CITY RESPONSIBILITY)
WHEN IT APPLIES
• Next revision of the Housing Element
WHAT IT DOES
• Reduces timeline for adopting an HE
Rezoning Program from 3 years to 1 year for
jurisdictions that do not adopt an HE
update by the deadline
• Excuses jurisdictions that timely adopt the
6 th Cycle HE Update from a required 4-year,
mid-cycle (2025) update, if applicable
SB 10 – Planning and Zoning:
Housing Development: Density
WHEN IT APPLIES
• January 1, 2022
WHAT IT DOES
• Allows jurisdictions to opt to upzone
parcels in transit priority areas to allow up
to 10 dwelling units per acre without
requiring California Environmental Quality
Act (CEQA) studies
RiversideCA.gov
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13 MODERATE IMPACT
No. Bill Topic Anticipated Impact
1 AB 345 ADUs Moderate
2 AB 491 Affordable Housing Moderate
3 AB 1043 Affordable Housing Moderate
4 AB 1584 Omnibus (multiple topics) Moderate
5 SB 8 Process Moderate
6 SB 290 Density Bonus Moderate
7 SB 478 Zoning Moderate
8 SB 591 Senior Housing Moderate
9 SB 728 Density Bonus Moderate
RiversideCA.gov
14 AB 345 – Accessory Dwelling Units:
Separate Conveyance
MODERATE IMPACT
WHEN IT APPLIES
• January 1, 2022
WHAT IT DOES
• Requires jurisdictions to allow Accessory
Dwelling Units (ADUs) to be sold
separately from the primary dwelling as
part of a tenancy-in-common
arrangement if the ADU was built by a
qualified nonprofit
HOW IT AFFECTS RIVERSIDE
• Will be incorporated into upcoming
revisions to City’s ADU regulations
AB 491 – Housing: Affordable and
Market-Rate Units
WHEN IT APPLIES
• Effective Immediately
WHAT IT DOES
• Clarifies that mixed-income residential
development may not segregate
affordable units from market-rate units
and must provide same entrances,
common areas, amenities, etc.
HOW IT AFFECTS RIVERSIDE
• Will be enforced as part of the regular
Development Review process for new
residential projects
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15 MODERATE IMPACT: AB 1584
2021 HOUSING OMNIMBUS
WHEN IT APPLIES
• January 1, 2022
WHAT IT DOES
• Clarifies unenforceability of ADU restrictions
in Covenants, Conditions & Restrictions
(CC&Rs) for common interest developments
• Extends mobile home park tenancy
termination notice periods
• Makes clarifying changes to the Homeowner
Bill of Rights
• Changes process, timeline for making public
court decisions on real estate issues
• Clarifies that Density Bonus waivers/
concessions not inconsistent with
adopted plans for HAA purposes
HOW IT AFFECTS RIVERSIDE
• No/Low Impacts – mobile home parks,
Homeowner Bill of Rights, court decisions
• Moderate Impacts – ADUs, Density Bonus,
affordable rental restrictions, Successor
Agency property
WHAT IT DOES (cont.)
• Clarifies that properties with manufactured
ADUs are not mobile home parks
• Requires housing on Successor Agency
properties to be offered first to people
displaced by redevelopment or
descendants
RiversideCA.gov
16 AB 1043 – Housing Programs: Rental
Housing Developments: Affordable Rent
MODERATE IMPACT
WHEN IT APPLIES
• January 1, 2022
WHAT IT DOES
• Creates a new household income
category for affordable housing, “acutely
low-income,” limited to under 15% of area
median income
HOW IT AFFECTS RIVERSIDE
• Housing Authority will ensure compliance
with household income limits should future
units be restricted to this income category
SB 8 – Housing Crisis Act of 2019
WHEN IT APPLIES
• Effective Immediately
WHAT IT DOES
• Extends the expiration of the Housing
Accountability Act from 2025 to 2030
HOW IT AFFECTS RIVERSIDE
• Restricts ability to downzone or decrease
residential zoning capacity for additional 5
years
• Allows projects eligible for the SB 330
Preliminary Application process to lock in
fees by submitting preliminary applications
for additional 5 years
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17 SB 290 – Density Bonus Law
MODERATE IMPACT
WHEN IT APPLIES
• January 1, 2022
WHAT IT DOES
• Inclusionary zoning units must be included
in base density calculation
• Creates incentive/concession for student
housing with 20% affordability
• Extends maximum 0.5 parking space/unit
to 40% moderate-income projects
• Further limits jurisdictions’ ability to deny
incentives/concessions for affordable
housing
HOW IT AFFECTS RIVERSIDE
• Will require future updates to Title 19 to
conform; creates additional annual
reporting requirements
SB 478 – Planning and Zoning Law:
Housing Development Projects
WHEN IT APPLIES
• January 1, 2022
WHAT IT DOES
• Prohibits jurisdictions from imposing
maximum Floor Area Ratio (FAR) or lot
coverage standards that preclude a
minimum number of units, if allowed by
zoning
• Makes deed restrictions that have same
effect void and unenforceable
HOW IT AFFECTS RIVERSIDE
• May necessitate minor, clarifying changes to
existing provisions of the Zoning Code – no
substantive changes needed
RiversideCA.gov
18 SB 591 – Senior Citizens:
Intergenerational Housing
Developments
MODERATE IMPACT
WHEN IT APPLIES
• January 1, 2022
WHAT IT DOES
• Allows affordable senior housing
developments to have 20% of units
occupied by caregivers or transition-
aged youth
HOW IT AFFECTS RIVERSIDE
• May require revisions to existing Zoning
Code definition of Senior Housing to
conform
SB 728 – Density Bonus Law: Purchase of
Density Bonus Units by Nonprofits
WHEN IT APPLIES
• January 1, 2022
WHAT IT DOES
• New requirements for equity sharing
agreements for for-sale affordable housing
developments receiving a Density Bonus
HOW IT AFFECTS RIVERSIDE
• Housing Authority will review future
affordable housing agreements/deed
restrictions for compliance, when applicable
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19 HIGH IMPACT
• AB 602: Development Impact Fees:
Impact Fee Nexus Study
• AB 838: State Housing Law:
Enforcement Response to
Complaints
• SB 9: California Housing Opportunity
and More Efficiency (HOME) Act
RiversideCA.gov
20 HIGH IMPACT: AB 602
DEVELOPMENT FEES: IMPACT FEE NEXUS STUDY
WHEN IT APPLIES
• July 1, 2022
WHAT IT DOES
• Creates new requirements for
preparing impact fee nexus studies
• Requires nexus studies be updated
every 8 years
• Limits fees on housing to proportional
with unit size
• Requires impact fees to be posted
online
WHAT IT MEANS FOR RIVERSIDE
• Will significantly alter the way that
future Public Works, Utility, Traffic &
other impact fees are assessed to
residential development
• Mandates nexus study updates on
an 8-year cycle
• May require some updates to City
web pages
• Does not affect ongoing Fee Study, if
adopted before effective date
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21 HIGH IMPACT: AB 838
STATE HOUSING LAW: ENFORCEMENT RESPONSE TO COMPLAINTS
WHEN IT APPLIES
• July 1, 2022
WHAT IT DOES
• Requires investigation of occupant
complaints of substandard housing
and provide reports free of charge
• Requires cities to report observed
violations to property owners and
plan for compliance
• Prohibits conditions on inspections,
such as property owner refusal or
current payment of rent
WHAT IT MEANS FOR RIVERSIDE
• Established Code Enforcement
procedures largely comply
• Commits City to maintaining existing
practice
• Will preclude future changes in
procedures that do not meet
requirements
• Will require waiver of nominal fees
for hard copies of reports & mailings
RiversideCA.gov
22 HIGH IMPACT: SB 9
CALIFORNIA HOUSING OPPORTUNITY AND MORE EFFICIENCY (HOME) ACT
WHEN IT APPLIES
• January 1, 2022
WHAT IT DOES
• Allows up to 4 units in any single-family zone:
•Ministerial lot split – minimum 1,200 square
feet for new lots, 60/40 ratio
•Ministerial approval of duplex on each lot
•Applies to conversions and new build
•Limited parking requirements, no dedications
or off-site improvements for lot splits
•No short-term rentals allowed
•Can prohibit ADUs, JADUs
• Numerous exceptions/qualifications for
hazards, environmental/historic resources,
displacement avoidance
WHAT IT MEANS FOR RIVERSIDE
• Slightly increases potential
residential development in single-
family zones (from current 3 units to
4 units)
• Will require updates to Zoning Code
• Will require new applications,
processing procedures, permit
tracking and reporting (Planning,
Building & Safety, Public Works)
• Prohibits ROW dedication, off-site
improvements normally required for
single-family subdivisions
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23 HIGH IMPACT: SB 9
Access
Easement
Unit 1
Unit 3 Unit 4
Unit 2
LOT 1
LOT 2
RiversideCA.gov
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25 STRATEGIC PLAN ALIGNMENT
Envision Riverside 2025 Strategic Plan Priorities
Cross-Cutting Threads
Community Trust
Equity
Fiscal Responsibility
Innovation
Sustainability &
Resiliency
#2 COMMUNITY WELL-BEING
2.1 – Facilitate the development of a quality and diverse housing supply that is available and affordable to a wide range of income levels
2.2 – Collaborate with partner agencies to improve household resiliency and reduce the incidence and duration of homelessness
2.4 – Support programs and innovations that enhance community safety, encourage neighborhood engagement, and build public trust RiversideCA.gov
26 That the City Council receive and file the staff report on the California Legislature’s 2021 Housing Bills.
RECOMMENDATION
25 26