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CC SR 20210406 F - Senate Bill (SB) 809 Letter of Support (RHNA) CITY COUNCIL MEETING DATE: 04/06/2021 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to authorize the Mayor to sign a letter of support for SB 809. RECOMMENDED COUNCIL ACTION: (1) Authorize the Mayor to sign a letter of support for SB 809. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: McKenzie Bright, Administrative Analyst REVIEWED BY: Karina Bañales, Deputy City Manager APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Draft letter in support of SB 809 (page A-1) B. Text of SB 809 (as amended March 10, 2021) (page B-1) BACKGROUND AND DISCUSSION: SB 809, introduced by Senator Ben Allen, would allow cities to enter into an agreement whereby one jurisdiction contributes suitable land for regional housing need allocation (RHNA) shares, and the other contributes funding for that development. This bill would give cities the option to trade land for financial contributions to develop that land. If a city determined it had an insufficient inventory of land suitable and available for residential development to meet its RHNA share, it could enter into a regional agreement with other cities. The other cities would contribute land within their border, and the requesting city would contribute funding for the development of that land. Up to half of the development capacity resulting from the agreement could count towards a single jurisdiction’s housing needs. 1 While RHNA only requires cities to plan for future housing developments and it does not require cities to provide financing for residential developments, this bill would incorporate a financial element into the allocation process. However, this bill gives cities flexibility when planning for their RHNA share – to agree to locate their RHNA share in another city in return for providing funding. Given this bill’s potential to provide a measure of local control in the RHNA process, Staff recommends the City Council authorize the Mayor to sign a letter to Senator Allen as drafted or with revisions, supporting SB 809. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Identify revised language to add to the letter. 2. Do not authorize the Mayor to sign the letter. 3. Take other action, as deemed appropriate. 2 April 6, 2021 Via Email The Honorable Ben Allen California State Senate State Capitol, Room 4076 Sacramento, CA 95814 SUBJECT: Notice of Support of SB 809 Dear Senator Allen: The City of Rancho Palos Verdes supports SB 809, which would provide a measure of local control in the regional housing need allocation (RHNA) process. In local land use planning and zoning, there are many factors that must be considered. The City of Rancho Palos Verdes is located on the Palos Verdes Peninsula, almost entirely within a Very High Fire Hazard Severity Zone (VHFHSZ). As such, it is vital that the City maintain its local land use authority to ensure that all developments meet all safety standards and that related traffic changes do not have undue influence on egress paths especially during an evacuation. As drafted, this bill will allow for flexibility for cities that may not have land suitable or available to meet RHNA allocations to enter into multijurisdictional agreements to exchange available land for financial compensation to develop that land. As California continues to look to the future in housing development, this bill would allow cities to assess their capability and have increased local control to meet RHNA shares. For these reasons, the City of Rancho Palos Verdes supports SB 809. Sincerely, Eric Alegria Mayor A-1 Senator Allen April 6, 2021 Page 2 cc: Al Muratsuchi, Assembly Member, 66th Assembly District Jeff Kiernan, League of California Cities Meg Desmond, League of California Cities Marcel Rodarte, California Contract Cities Association Jacki Bacharach, South Bay Cities Council of Governments Rancho Palos Verdes City Council Ara Mihranian, City Manager Karina Bañales, Deputy City Manager A-2 AMENDED IN SENATE MARCH 10, 2021 SENATE BILL No. 809 Introduced by Senator Allen (Principal coauthor: Assembly Member Eduardo Garcia) February 19, 2021 An act relating to regional housing trusts. to add and repeal Section 65583.4 of the Government Code, relating to land use. legislative counsel’s digest SB 809, as amended, Allen. Regional housing trusts. Multijurisdictional regional agreements: housing element. 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. Existing law requires that the housing element include, among other things, an inventory of land suitable and available for residential development that identifies sites that can be developed for housing within the planning period and that are sufficient to provide for the jurisdiction’s share of the regional housing need for all income levels, as specified. This bill would authorize a city or county to satisfy part of its requirement to identify zones suitable for residential development by adopting and implementing a multijurisdictional regional agreement. The bill would require the multijurisdictional regional agreement to clearly establish the jurisdiction that is contributing suitable land for residential development and the jurisdiction or jurisdictions that are contributing funding for that development. The bill would require that a multijurisdictional regional agreement be between 2 or more cities 98 B-1 or counties that are located within the same county or within adjacent counties. This bill would require a jurisdiction that is a party to a multijurisdictional regional agreement under these provisions to provide specified information in its housing element, including how the multijurisdictional regional agreement will satisfy the jurisdiction’s housing need for a designated income level. The bill would prohibit the jurisdictions that are a party to a multijurisdictional regional agreement from claiming an aggregate capacity in an amount greater than the actual capacity created by the housing development subject to the agreement. The bill would repeal these provisions on January 1, 2030. 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 Joint Exercise of Powers Act authorizes 2 or more public agencies, by agreement, to form a joint powers authority to exercise any power common to the contracting parties, as specified. Existing law authorizes the agreement to set forth the manner by which the joint powers authority will be governed. This bill would state the intent of the Legislature to enact legislation that would require all local governments to participate in a regional housing trust fund. Vote: majority. Appropriation: no. Fiscal committee: no yes.​ State-mandated local program: no.​ The people of the State of California do enact as follows: line 1 SECTION 1. Section 65583.4 is added to the Government Code, line 2 to read: line 3 65583.4. (a)  A city or county may satisfy part of its requirement line 4 to identify zones suitable for residential development pursuant to line 5 paragraph (3) of subdivision (a) of Section 65583 by adopting and line 6 implementing a multijurisdictional regional agreement as provided line 7 in this subdivision. line 8 (b)  (1)  A multijurisdictional regional agreement adopted and line 9 implemented pursuant to this section shall clearly establish the line 10 jurisdiction that is contributing suitable land for residential line 11 development and the jurisdiction or jurisdictions that are line 12 contributing funding for that development. 98 — 2 — SB 809 B-2 line 1 (2)  A multijurisdictional regional agreement subject to this line 2 section shall be between two or more cities that are located within line 3 the same county, between two or more cities within adjacent line 4 counties, or between adjacent counties and any city within those line 5 counties. line 6 (c)  Each jurisdiction that is a party to a multijurisdictional line 7 regional agreement shall describe in its housing element both of line 8 the following: line 9 (1)  How the multijurisdictional regional agreement will satisfy line 10 the jurisdiction’s housing need for a designated income level. No line 11 more than 1⁄2 of the development capacity resulting from the line 12 agreement shall be given to a single jurisdiction as credit towards line 13 its housing needs. line 14 (2)  The jurisdiction’s contribution to a housing development line 15 pursuant to the multijurisdictional regional agreement, including line 16 the amount and source of the funding that the jurisdiction line 17 contributes. line 18 (d)  The jurisdictions that are a party to a multijurisdictional line 19 regional agreement shall not claim an aggregate capacity in an line 20 amount greater than the actual capacity created by the housing line 21 development subject to the multijurisdictional regional agreement line 22 in the jurisdiction’s housing element. line 23 (e)  The Legislature finds and declares that this section addresses line 24 a matter of statewide concern rather than a municipal affair as line 25 that term is used in Section 5 of Article XI of the California line 26 Constitution. Therefore, this section applies to all cities, including line 27 charter cities. line 28 (f)  This section shall remain in effect only until January 1, 2030, line 29 and as of that date is repealed. line 30 SECTION 1. It is the intent of the Legislature to enact line 31 legislation that would require all local governments to participate line 32 in a regional housing trust fund. O 98 SB 809 — 3 — B-3