California Laws that Promote Social and Economic Inclusion via Affordable Housing Solutions 2013 National Housing Conference Atlanta, Georgia September 16-18, 2013

Density Bonus Law Purpose: Ensure local governments zone land at higher densities to incentivize affordable housing  State law mandates that cities/counties increase density and provide other incentives when developer agrees to build certain % of affordable homes (Gov , 1979)  Other incentives: reduction of site development standards, e.g., reduced set-backs and parking, approval of mixed-use zoning  Units remain affordable at least 30 years

Income Category Minimum % Units Bonus Granted Bonus for Each 1% Increase % Units for 35% Bonus Very Low-Income5%20%2.5%11% Lower-Income10%20%1.5%20% Moderate-Income (ownership only) 10%5%1%40% Senior Housing (35+ units) 100%20%--- Land Donation for Very Low-Income 10%15%1%30% Bonuses by Income and % of Affordable Units

Housing Element Law Purpose: Require localities to plan for housing and accept their fair share of the region’s housing need  State law mandates that cities/counties prepare Housing Element to their General Plan every 8 years (Gov. Code , 1969)  Cities/counties receive “fair share” housing goals from regional Council of Governments or State based on existing and projected need  Housing Element must include: Assessment of needs and resources Statements of goals, objectives, policies 8-year schedule of actions to meet fair share, including identification of potential sites  California Department of Housing and Community Development reviews for compliance

Fair Share Housing Allocation Law Purpose: Ensure that every locality accepts its fair share of the regional housing need for all income groups.  California Department of Housing and Community Development (HCD), in consultation with Councils of Government (COGs), determines each region’s existing and projected need 2 years prior to Housing Element update (Gov. Code 65584)  COGs distribute need to localities within region no less than 1 year prior to update  HCD determines and allocates in areas without COG  Regional Housing Needs Allocation (RHNA): New household formation, e.g., births, migration Housing market demand Anticipated jobs growth Jobs-housing imbalance Vacancies Land availability Sewer/water capacity

Anti-NIMBY Law Purpose: Limit conditions under which localities may deny affordable housing development projects, including farm labor housing and emergency shelters  Local agency can’t disapprove project or condition approvals that make infeasible unless has approved Housing Element  Cannot disapprove if on site previously identified as suitable for affordable housing in Housing Element  Written findings based on substantial evidence: Adverse, unmitigatable impact on health and safety Project not needed Project proposed on land zoned for agriculture or resource preservation and surrounded on at least 2 sides by such uses or has inadequate sewer/water

Other Anti-NIMBY Laws Affordable Housing as Protected Class (Gov. Code 65008) Forbids discrimination against affordable housing developments, developers, or potential residents by local agencies carrying out planning and zoning powers May not impose different requirements on affordable projects than other projects Sewer and Water Agencies (Gov. Code ) Public/private agencies providing water and sewer services must grant priority for developments that include affordable units and have written policy for meeting this priority (Gov. Code ) Denials, conditions, reductions must be based on written findings that agency does not have sufficient water supply, treatment or collection capacity Farm Worker Housing (Health and Safety Code ) Farm labor housing of 12 units or less on privately-owned, agriculturally zoned land considered an agricultural use No conditional use permit, zoning variance, or other zoning clearance shall be required that is not required of any other agricultural activity in the same zone.

Inclusionary Housing Purpose: Stimulate production of new affordable housing integrated into new mixed-income residential communities  NO State mandate  145 local government policies that require private residential developers, as condition of approval, either: Build a % of affordable homes for purchase or rent in new single- family subdivisions or apartment complexes, or Dedicate land to local government in lieu of direct production, or Pay fee to local government in lieu of direct production  Modest programs do not negatively impact the overall supply of homes built or the price of market-rate housing  At least 30,000 affordable units since 1999.

Inclusionary Housing Challenges Implosion of real estate market Palmer Case (2009) – Rental inclusionary policies violate State rent control law Patterson Case (2009) – Amount of in-lieu fee must be supported by nexus study proving monetary impact of new market-rate housing on affordable housing Recent cases suggest nexus justification not needed; IH justified within zoning powers Some jurisdictions moving towards fee-first system, in part, due to demise of redevelopment TIF

AB 1229 clarifies that localities have police powers to condition approvals on inclusion of affordable rental housing (Gov. Code 65850) “The legislative body of any county or city may, pursuant to this chapter, adopt ordinances that….: Establish, as a condition of development, inclusionary housing requirements, which may require the provision of residential units affordable to, and occupied by, owners or tenants whose household incomes do not exceed the limits for lower income, very low income, or extremely low income households…..”

Windmere Apartments: Family Housing in Upscale Mace Ranch Subdivision

Walnut Terrace Apartments: Senior Housing in Upscale Mace Ranch Subdivision

Willow Glen Apartments: Senior/Disabled Housing in Upscale Mace Ranch Subdivision

2-Bedroom House: Single-Family Unit in Upscale Mace Ranch Subdivision

Strong Design and Density Incentives Help IH Work Small lot sizes Narrow streets Reduced setbacks Changes in house orientation Irregular lot sizes Elimination of sidewalks on one side of street

NO SIDEWALKS SHORT SETBACKS, LOT SIZE REDUCTIONS, REDUCED STREET WIDTHS SHARED DRIVEWAYS

Land Use Strategies No green strip by sidewalk 2 BR workforce units on irregular lots Flexible Setbacks Narrow streets, with parking on only one side Smaller, affordable workforce IH units

Thank You Presented by: Robert Wiener, Executive Director California Coalition for Rural Housing 717 K Street, Suite 400 Sacramento, CA (916)