Policy & Legislation
Prop. 1C Update: Part I
Infill and T.O.D. Bills Await Senate Action
In two weeks, the legislature will return from its summer recess. Before the frantic final month of legislative activity begins, we wanted to bring you up-to-date on the remaining viable Prop. 1C- related legislation. Part two of this article will appear in our next issue.
Infill homes infrastructure: Housing California and the Planning and Conservation League have jointly advocated since January 2007 to influence the design of this new program. We’ve spent innumerable hours with legislative staff crafting AB 1053 (Núñez) and SB 46 (Perata).
Instead of using either of these vehicles, however, Perata and Núñez chose to amend SB 86 on July 19, 2007, to turn it into a "budget trailer bill" with the program design. (A budget trailer bill is a policy change negotiated behind the scenes as part of the budget, instead of through the regular policy committee process.)
SB 86 reflects most of our proposal. Our clear "wins" include:
- The eligible uses are public infrastructure -- e.g. sewer and sidewalks -- that directly supports residential developments in which at least 15% of the homes are affordable at 60% AMI (average median income) for rentals or 120% AMI for for-sale homes.
- Developers are allowed to apply directly for funds.
- Developments must be built at the "Mullin densities" with an adjustment for rural areas.
- Developments will be ranked based on their affordability; density; and proximity to transit, job centers, and other amenities.
- There is no "affordability cap," which had appeared in a previous version of the language. The cap would have given the same number of points in the ranking system for a development with 25% affordable units and developments with 26-100% affordable units.
The one area in which we did not succeed is allowing use of the funds to directly achieve below-market-rate affordability. However, both Speaker Núñez and President pro Tem Perata recognize they need to take steps to avoid running out of MHP (Multifamily Housing Program) funds in early 2009. They committed to working with us next year to address the impending shortage.
The assembly passed SB 86 on July 20, 2007. The senate is expected to send it to the governor when they pass the state budget.
Transit-oriented development (T.O.D.): SB 1689 (Perata, Statutes of 2006) created the Transit Oriented Development Implementation Program to provide grants for public infrastructure and loans for residential development near transit stations. The Department of Housing and Community Development (HCD) expects to release proposed guidelines this month, with a Notice of Funding Availability (NOFA) following this fall.
However, Assembly Majority Leader Karen Bass, D-Los Angeles, is authoring AB 1091 to tweak the program somewhat. Her bill would:
- Require any home development supported by a grant for public infrastructure to contain at least 20% affordable homes, with at least half of these affordable to households at low or very-low incomes.
- Increase the affordability threshold for receiving a residential development loan from 15% to 20% of the development's homes and require at least half of these to be affordable to households at low or very-low incomes.
- Allow supported developments to be located within 1/2 mile of a transit station instead of 1/4 mile.
AB 1091 will be heard in the Senate Appropriations Committee on August 20, 2007. It is sponsored by the City of Los Angeles.
Our next issue will review the legislative debate surrounding Prop. 1C’s housing-related parks program and innovative housing finance program.
Contact Julie Snyder, (916) 447-0503 x 102 or .
