Amended  IN  Senate  May 18, 2020
Amended  IN  Senate  March 05, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 899

Introduced by Senator Wiener
(Coauthor: Senator Caballero)

January 30, 2020

An act to add Section 65913.5 to the Government Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


SB 899, as amended, Wiener. Planning and zoning: housing development: higher education institutions, nonprofit hospitals hospitals, or religious institutions.
The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a housing element. That law allows a development proponent to submit an application for a development that is subject to a specified streamlined, ministerial approval process not subject to a conditional use permit if the development satisfies certain objective planning standards.
This bill would require that a housing development project be a use by right upon the request of a an independent institution of higher education, nonprofit hospital, nonprofit diagnostic or treatment center, nonprofit rehabilitation facility, nonprofit nursing home, or religious institution that partners with a qualified developer on any land owned in fee simple by the applicant if the development satisfies specified criteria. The bill would define various terms for these purposes. Among other things, the bill would require that 100% of the units units, exclusive of manager units, in a housing development project eligible for approval as a use by right under these provisions be restricted to lower income households, with an affordable housing cost or affordable rent for those households, affordable to households with an average income of 80% of the area median income for specified periods, but would authorize the development to include ancillary commercial uses on the ground floor of the development. The bill would specify that a housing development project that is eligible for approval as a use by right under the bill is also eligible for a density bonus or other incentives or concessions. The bill would prohibit a local government from requiring a housing development project eligible for approval as a use by right under these provisions to provide more than 0.5 parking spaces per unit.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA does not apply to the ministerial approval of projects.
This bill, by requiring approval of certain development projects as a use by right, would expand the exemption for ministerial approval of projects under CEQA.
By adding to the duties of local planning officials with respect to approving certain development projects, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 65913.5 is added to the Government Code, to read:

65913.5.
 (a) For purposes of this section:
(1) “Applicant” means a an independent institution of higher education, nonprofit hospital, nonprofit diagnostic or treatment center, nonprofit rehabilitation facility, nonprofit nursing home, or religious institution that partners with a qualified developer to construct a housing development project and requests approval of that project as a use by right pursuant to this section.
(2) “Independent institution of higher education” has the same meaning as defined in Section 66010 of the Education Code.
(3) “Local government” means a city, county, or city and county, whether general law or chartered.

(2)

(4) “Nonprofit hospital,” “nonprofit diagnostic or treatment center,” “nonprofit rehabilitation facility,” and “nonprofit nursing home” mean any hospital, diagnostic or treatment center, rehabilitation facility, and nursing home, as the case may be, that is owned and operated by one or more nonprofit corporations or associations no part of the net earnings of that inures, or may lawfully inure, to the benefit of any private shareholder or individual, or a hospital publicly owned or operated by a public entity or agency of this state.

(3)

(5) “Qualified developer” means a local public entity, as defined in Section 50079 of the Health and Safety Code, a nonprofit corporation, a limited partnership in which the managing general partner is a nonprofit corporation, or a limited liability company in which the managing member is a nonprofit corporation.

(4)

(6) “Religious institution” means an institution owned, controlled, and operated and maintained by a bona fide church, religious denomination, or religious organization composed of multidenominational members of the same well-recognized religion, lawfully operating as a nonprofit religious corporation pursuant to Part 4 (commencing with Section 9110) of Division 2 of Title 1 of the Corporations Code.

(5)

(7) (A) “Use by right” means that the local government’s review of the development project under this section may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Any subdivision of the sites shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act (Division 2 (commencing with Section 66410)).
(B) A local ordinance may provide that “use by right” does not exempt the development project from design review. However, that design review shall not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(b) Notwithstanding any inconsistent provision of a city’s or county’s local government’s general plan, specific plan, zoning ordinance, or regulation, upon the request of an applicant, a housing development project shall be a use by right on any land owned in fee simple by the applicant if the development satisfies the following criteria:
(1) If the development project is located in an area where allowable uses are limited to single-family residential development:
(A) The development project consists of no more than 40 residential units shall be allowed a density of at least 35 dwelling units per acre and has a height of no more than 36 feet. If the local government allows for greater residential density or building heights on that parcel, or an adjacent parcel, than is described in this subparagraph, the greater density or building height shall apply.
(B) The development project is located on a site that is one-quarter acre in size or greater and is either adjacent to an arterial road or located within a central business district. greater.
(C) One hundred percent of the residential units in the housing development project are restricted to lower income households, as that term is defined in Section 50079.5 of the Health and Safety Code, with an affordable housing cost or affordable rent, as defined in Sections 50052.5 and 50053, respectively, of the Health and Safety Code, for those households, project, exclusive of any manager unit or units, are affordable to households with an average income of 80 percent of the area median income. However, no unit, exclusive of any manager unit or units, shall be occupied by a household with an income greater than 120 percent of the area median income. The rent for the unit is 20 percent below the market rate for the city, county, or city and county in which the housing development is located. The applicant shall provide the city, county, or city and county with evidence to establish that the units meet the requirements of this subparagraph. All units, exclusive of any manager unit or units, shall be restricted as provided in this subparagraph for at least the following periods of time:
(i) Fifty-five years for units that are rented. However, the local government may require that the rental units in the housing development project be restricted to lower income households for a longer period of time if that restriction is consistent with all applicable regulatory requirements for state assistance.
(ii) Forty-five years for units that are owner occupied. However, the local government may require that owner-occupied units in the housing development project be restricted to lower income households for a longer period of time if that restriction is consistent with all applicable regulatory requirements for state assistance.
(iii) A religious institution, nonprofit hospital, or qualified developer, in its discretion, may restrict 100 percent of the residential units, exclusive of any manager unit or units, in the housing development project to lower income households, as that term is defined in Section 50079.5 of the Health and Safety Code, with an affordable housing cost or affordable rent, as defined in Sections 50052.5 and 50053, respectively, of the Health and Safety Code, for at least the time periods specified in clauses (i) and (ii).
(D) The development project complies with all objective design development standards of the city or county. However, the city or county shall not require the development project to comply with an objective design development standard that would preclude the development from including up to 40 units achieving a density of at least 35 dwelling units per acre or impose a maximum height limitation of less than 36 feet.
(2) If the development project is located in any area where residential residential, mixed, institutional, or commercial uses are an allowable use:
(A) The development project consists of no more than 150 residential units shall be allowed a density of at least 50 dwelling units per acre and has a height of no more than 55 feet. If the local government allows for greater residential density or building heights on that parcel, or an adjacent parcel, than is described in this subparagraph, the greater density or building height shall apply.
(B) The development project is located on a site that is one-half one-quarter acre in size or greater and is either adjacent to an arterial road or located within a central business district. greater.
(C) One hundred percent of the residential units in the housing development project are restricted to lower income households, as that term is defined in Section 50079.5 of the Health and Safety Code, with an affordable housing cost or affordable rent, as defined in Sections 50052.5 and 50053, respectively, of the Health and Safety Code, for those households, project, exclusive of any manager unit or units, are affordable to households with an average income of 80 percent of the area median income. However, no unit, exclusive of any manager unit or units, shall be occupied by a household with an income greater than 120 percent of the area median income. The rent for the unit is 20 percent below the market rate for the city, county, or city and county in which the housing development is located. The applicant shall provide the city, county, or city and county with evidence to establish that the units meet the requirements of this subparagraph. All units, exclusive of any manager unit or units, shall be restricted as provided in this subparagraph for at least the following periods of time:
(i) Fifty-five years for units that are rented. However, the local government may require that the rental units in the housing development project be restricted to lower income households for a longer period of time if that restriction is consistent with all applicable regulatory requirements for state assistance.
(ii) Forty-five years for units that are owner occupied. However, the local government may require that owner-occupied units in the housing development project be restricted to lower income households for a longer period of time if that restriction is consistent with all applicable regulatory requirements for state assistance.
(iii) A religious institution, nonprofit hospital, independent institution of higher education, or qualified developer, in its discretion, may restrict 100 percent of the residential units, exclusive of any manager unit or units, in the housing development project to lower income households, as that term is defined in Section 50079.5 of the Health and Safety Code, with an affordable housing cost or affordable rent, as defined in Sections 50052.5 and 50053, respectively, of the Health and Safety Code, for at least the time periods specified in clauses (i) and (ii).
(D) The development project complies with all objective design development standards of the city or county. However, the city or county shall not require the development project to comply with an objective design development standard that would preclude the development from including up to 150 units achieving a density of at least 50 dwelling units per acre or impose a maximum height limitation of less than 55 feet.
(E) If the housing development project requires the demolition of existing residential dwelling units, the applicant shall comply with subdivision (d) of Section 66300, as that section read as of January 1, 2020.
(c) A housing development project that is eligible for approval as a use by right pursuant to this section shall be eligible for a density bonus or other incentives or concessions.
(d) Notwithstanding any other provision of this section, a development project that is eligible for approval as a use by right pursuant to this section may include ancillary commercial uses, provided that those uses are limited to the ground floor of the development.
(e) Notwithstanding any inconsistent provision of a local government’s general plan, specific plan, zoning ordinance, or regulation, the local government shall not require a housing development project eligible for approval as a use by right pursuant to paragraph (1) or (2) of subdivision (b) to provide more than 0.5 parking spaces per unit.

(e)

(f) The Legislature finds and declares that ensuring residential development at greater density on land owned by religious institutions and nonprofit hospitals is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.

SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.