CC 04-07-20 #1 2020 Housing Law Training_PresentationsShute, Mihaly & Weinberger LLPWinter King & Caitlin Brown2020 Housing Law Training
OVERVIEW●Housing Accountability Act●Permit Streamlining Act●Housing Crisis Act●Density Bonus Law
2019 Housing Legislation●What is the problem the Legislature was trying to solve?●How is the Legislature trying to solve the problem?
Housing Accountability ActOverview•Originally enacted in 1982—Anti-NIMBY Act
Housing Accountability ActOverview•Cities cannot disapprove or reduce density of housing project that complies with “objective, quantifiable, written development standards” unless:•Specific adverse impacts to public health and safety AND•No feasible method to mitigate other than reduce density
Housing Accountability Act2019 changes•Which ordinances/policies/standards apply•Exceptions for CEQA mitigation measures, when project changes, etc.•Definition of “objective” standard (same as SB 35)•Limit on number of hearings
Permit Streamlining ActOverview•Establishes timelines for processing certain land use applications.•Does not apply to ministerial permits or legislative acts (e.g., GP, zoning amendments, specific plan)•Requires cities to inform public of information required for a complete application.
Permit Streamlining Act2019 changes•Mandatory preliminary checklist•Timeline for application review, completeness, action
Housing Crisis Act, SB 330, Gov. Code 66300Prohibits enactment of development policies applicable “to land where housing is an allowable use” that would:•Reduce density/intensity of use (unless concurrent up-zoning)•Impose moratorium absent findings of imminent threat
Housing Crisis Act, SB 330, Gov. Code 66300Prohibits enactment of development policies applicable “to land where housing is an allowable use” that would:•Impose subjective design standards established on/after 1/1/2020•Cap/limit housing units or population
Housing Crisis Act, SB 330, Gov. Code 66300Cities can prohibit/limit commercial use of land designated for residential use (AirBnB)Can’t approve housing project that will demolish more units than create or demolish protected units absent findings (inc. replacement)
Density BonusExisting Law (Gov. Code 65915)•Certain percentage affordable or other qualifying housing is eligible for:•Increase in density•Certain number of incentives/concessions•Waivers•Parking standards
Density BonusExisting Law (Gov. Code 65915)•State law establishes standards; local jurisdictions to provide procedure/implementation•Cupertino’s Density Bonus Ordinance: Chapter 19.56 of the Cupertino Municipal Code
Density Bonus•Density bonus for:•10% lower income•5% very low income•Senior citizen housing development (inc.mobilehomes)•10% of for-sale common interest development for moderate income
Density Bonus•Density bonus also available for:•10% for transitional foster youth, disabled veterans, homeless persons•20% for lower income students•Land donation•2020 “Super Density Bonus” for 100% affordable projects
Density Bonus•Density bonus is the increase over otherwise maximum allowable density (the percent increase allowed based on type and amount of qualifying housing); applicant may select only one bonus.•Base units•Density bonus units
Density Bonus•Statute includes the specific density bonus for each type of qualifying housing
Density Bonus•Example for a project providing very-low income unitsPercent Very Low-Income UnitsPercent Density Bonus5206 22.57258 27.593010 32.511 35
Density Bonus•Very Low: at or below 50% of area median income (“AMI”), adjusted for family size•Low: at or below 80% of AMI, adjusted for family size•Median: at or below 100% of AMI, adjusted for family size•Moderate: at or below 120% of AMI, adjusted for family sizeIncome Levels
Density BonusHCD 2019 Household Income Limits for Santa Clara County*Income CategoryApproximate Percent of Area Median Income*Income Limit for 4-Person HouseholdVery LowUp to 50% $73,150LowUp to 80% $103,900MedianUp to 100% $131,400ModerateUp to 120% $157,700*Effective May 6, 2019. Income Limits will be updated each year by HCD.
Density BonusIncentives/Concessions available that “result in identifiable and actual cost reductions” in the cost of the affordable housing•Limited in number based on the type and amount of qualifying housing
Density BonusNumber of Incentives/ConcessionsQualifying Housing1 At least: 10% low income; 5% very low income; 10% moderate income in a common interest development2 At least: 20% low income; 10% very low income; 20% moderate income in a common interest development3 At least: 30% low income; 15% very low income; 30% moderate income in a common interest development4 100% of the units for low income (except up to 20% for moderate income)
Density BonusWaivers of any development standards “physically precluding the construction of a [density bonus] development . . . at the densities or with the concessions or incentives permitted.”•Unlimited waivers available•Waivers allowed for the development and its amenities
Density Bonus•City may not “require a vehicular parking ratio, inclusive of handicapped and guest parking” exceeding certain ratios:•(A) Zero to one bedroom: one onsite parking space•(B) Two to three bedrooms: two onsite parking spaces•(C) Four and more bedrooms: two and one-half parking spacesParking Standards
Density Bonus•No parking requirement for 100% for lower income, all rental, and “special needs housing development” or “supportive housing development” Parking Standards
Hypothetical Application•1-acre site with a density of 20 du/ac•Maximum allowable density: 20 units•Applicant proposes: 3 very low income and 2 low income (15% very low income and 10% low income)Application: 27-unit rental apartments
Hypothetical Application•Qualifies for a 35% density bonus because of the very-low income units•Total allowed density plus density bonus = 27 units•3 incentives/concessions•Unlimited waivers•Reduced parking standards availableApplication: 27-unit rental apartments
Hypothetical Application•Also could satisfy the City’s inclusionary requirements for a rental project: 15% below market rate with a ratio of 60% of units for very low-income and 40% of units for low-income householdsApplication: 27-unit rental apartments
Density BonusBerkeley: •Base project submission for projects (Berkeley density is form-based)Approaches by other jurisdictions:
Density BonusSan Francisco: •Base project study required for projects in form-based zones but not in zones where density specified•Waivers generally for additional densityApproaches by other jurisdictions:
Density BonusSan Francisco: •Offers additional programs and incentives for affordable housing that go beyond state density bonus lawApproaches by other jurisdictions:333 12thSt. San Francisco; Courtesy Macy Architecture via sf.curbed.com
Questions?
Base UnitsMarket Rate TotalBMR TotalVLI LIYears of affordabilityDensity Bonus Market Rate UnitsTotal Unit CountProposed Hypothetical Project20 15 5 3 23 – 99 years (per BMR Manual)2 – 45/55 years(per Section 19.56.050 (A)) 7 (35% bonus)15+3+2+7 = 27City’s BMR requirement (15%)32 (rounded up from 1.8)1 (rounded down from 1.2)99 years