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CC SR 20210615 E - AB 215 Letter of Opposition CITY COUNCIL MEETING DATE: 06/15/2021 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to authorize the Mayor to sign a letter in opposition to AB 215 (Chiu). RECOMMENDED COUNCIL ACTION: (1) Authorize the Mayor to sign a letter in opposition to AB 215, which would require a jurisdiction with low regional housing needs progress to have a mid-cycle consultation with the California Department of Housing and Community Development (HCD). 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 opposition letter to AB 215 (page A-1) B. Text of AB 215 (as amended April 5, 2021) (page B-1) BACKGROUND AND DISCUSSION: Assembly Bill No. 215, introduced by Assemblymember David Chiu (D-17-San Francisco), would require a jurisdiction with relatively low progress toward meeting its Regional Housing Needs Allocation (RHNA) to have a mid-cycle element consultation with the California Department of Housing and Community Development (HCD), and update all goals, policies, and objectives in its housing plan to reflect new benchmarks. Starting with the current sixth cycle housing element revision, based on annual reports submitted by the jurisdiction to HCD, if the jurisdiction is found to not be making sufficient 1 progress toward meeting its share of RHNA compared to its prorated share, the jurisdiction would be subject to a mid-cycle consultation with HCD. During this consultation, the jurisdiction would be required to take specified actions, including a review and update of the jurisdiction’s goals, policies, quantified objectives, financial resources, and scheduled programs. Additionally, if the jurisdiction’s relative progress toward meeting its share of the RHNA allocation from the region or subregion is at least 10% less than the relative progress of the subregion as a whole, the jurisdiction would be required to attain a pro-housing designation. A pro-housing designation involves adopting policies that facilitate the planning, approval, or construction of housing, including local financial incentives, reduced parking requirements for sites zoned for residential development, and the adoption of zoning allowing for use by right for residential and mixed-use development. The sixth cycle RHNA plan covers the planning period October 2021 through October 2029. The City of Rancho Palos Verdes is responsible for 639 housing units in various income levels. If this bill were to pass, and if in its annual reports, the City reported fewer than 80 units annually within four years, the City would be subject to the mid-cycle review by HCD. If the City’s relative progress were 10% less than other jurisdictions in the Southern California Association of Governments (SCAG) region, the City would additionally be required to adopt a pro-housing designation. The 2019 Budget Act included language declaring it was the state’s intent to incentivize jurisdictions to create pro-housing environments through the form of additional “points” when applying for competitive housing and infrastructure grant programs. The pro- housing designation was meant to apply when a city or county enacted local policies and strategies to accelerate housing development. AB 215 turns the incentive into a requirement, regardless of whether those policies and strategies are appropriate for the type of community and whether those policies and strategies are supported by the community. The specific metrics for pro-housing designation have not yet been finalized, so the full extent of this requirement is unknown at this time. Additionally, HCD has existing measures to enforce jurisdictions failing to meet housing element obligations during their annual reports. HCD can review any action by a jurisdiction that is inconsistent with the jurisdiction’s adopted housing element, including a failure to implement its housing element programs; revoke the department’s prior findings that a jurisdiction’s housing element is compliant; and refer a non-compliant jurisdiction to the Attorney General. The Attorney General, in turn, can bring the local agency to court to compel compliance, with non-compliant jurisdictions becoming subject to significant fines. Rather than create a new mid-cycle housing element review process that is unlikely to be exclusively targeted at jurisdictions that are failing to meet their obligations, the state should remain focused on using the tools in existing law to promote housing element adoption and implementation. At this time, AB 215 passed the Assembly and was ordered to the Senate on June 1, 2021. 2 The intention of the bill is to increase accountability of local governments for complying with existing state law to promote housing production. However, this bill is an intrusion into local control and self-determination, most specifically with the usage of the pro- housing designation as a mandatory requirement, and by unnecessarily adding assessments of jurisdictions’ compliance with RHNA. For these reasons, Staff recommends the City Council authorize the Mayor to sign a letter to Assemblymember Chiu as drafted or with revisions, opposing AB 215. ALTERNATIVES: In addition to the Staff recommendation, the following alternative a ctions 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. 3 June 15, 2021 Via Email The Honorable David Chiu California State Assembly State Capitol, P.O. Box 942849 Sacramento, CA 94249-0017 SUBJECT: Notice of Opposition to AB 215 Dear Assemblymember Chiu: The City of Rancho Palos Verdes strongly opposes AB 215, which would require a jurisdiction with relatively low progress toward meeting its Regional Housing Needs Allocation (RHNA) to be subject to a mid-cycle consultation with the Department of Housing and Community Development (HCD) and implement pro -housing policies. HCD has existing measures to enforce jurisdictions failing to meet housing element obligations. HCD can review any action by a jurisdiction that is inconsistent with the jurisdiction’s adopted housing element, including a failure to implement its housing element programs; revoke the department’s prior findings that a jurisdiction’s housing element is compliant; and refer a non-compliant jurisdiction to the Attorney General. The Attorney General, in turn, can bring the local agency to court to compel compliance with non-compliant jurisdictions becoming subject to significant fines. Rather than create a new mid-cycle housing element review process, the state should remain focused on using the tools in existing law to promote housing element adoption and implementation. The 2019 Budget Act included language declaring it was the state’s intent to incentivize jurisdiction to create pro-housing environments through the form of additional points when applying for competitive housing and infrastructure grant programs. AB 215 turns the incentive into a requirement for jurisdictions which fall behind on their RHNA allocation, regardless of whether those policies and strategies are appropriate for the type of community and whether those policies and strategies are supported by the community. A-1 Assemblymember Chiu Jun 15, 2021 Page 2 This bill is an intrusion into local control and self-determination, most specifically with the usage of the pro-housing designation as a mandatory requirement, and by unnecessarily adding additional assessments of jurisdictions’ compliance with RHNA allocations. For these reasons, the City of Rancho Palos Verdes strongly opposes AB 215. Sincerely, Eric Alegria Mayor cc: Ben Allen, Senator, 26th State Senate District 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 Rancho Palos Verdes City Council Ara Mihranian, City Manager Karina Bañales, Deputy City Manager A-2 AMENDED IN ASSEMBLY APRIL 5, 2021 california legislature—2021–22 regular session ASSEMBLY BILL No. 215 Introduced by Assembly Member Chiu January 11, 2021 An act to amend Section 65585 of of, and to add Sections 65585.5 and 65589.10 to, the Government Code, relating to housing. legislative counsel’s digest AB 215, as amended, Chiu. Housing element. element: regional housing need: relative progress determination. Existing (1)Existing law, the Planning and Zoning Law, requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. That law requires the Department of Housing and Community Development (HCD) to determine whether the housing element is in substantial compliance with specified provisions of that law. That law This bill, starting with the 6th housing element revision, would require the department to determine the relative progress toward meeting regional housing needs of each jurisdiction, council of governments, and subregion, as specified. The bill would require the department to make this determination based on the information contained in the annual reports submitted by each jurisdiction, as specified. The bill would require the department to make this determination for all housing and for lower income housing by dividing the applicable entity’s progress toward meeting its share of the regional housing need by its prorated share of the regional housing need, as specified. The bill would require the department to post the determinations of relative progress B-1 on its internet website by July 1 of the year in which relative progress is determined. The bill would require a jurisdiction to undertake a midcycle housing element consultation with the department if the jurisdiction’s progress toward meeting its share of the regional housing need is less than its prorated share of the regional housing need and the relative progress of the jurisdiction for all housing or for lower income housing is less than the relative progress of the affiliated council of governments or subregion, as specified. The bill would require a jurisdiction to undertake specified actions, in consultation with the department, as a part of this midcycle housing element consultation, including a review and update of the jurisdiction’s goals, policies, quantified objectives, financial resources, and scheduled programs. The bill would require the department to find that a housing element is not in substantial compliance with the Planning and Zoning Law if the department determines that the jurisdiction has not complied with these provisions. Because this bill would require certain jurisdictions to participate in a midcycle housing element consultation with the department, the bill imposes a state-mandated local program. (2)Existing law, for award cycles commencing after July 1, 2021, awards a city or county additional points in the scoring of specified program applications if the city or county, among other things, has been designated by the department as prohousing based upon its adoption of prohousing local policies for housing, as provided. Existing law defines “prohousing local policies” as policies that facilitate the planning, approval, or construction of housing, including, but not limited to, local financial incentives for housing, reduced parking requirements for sites that are zoned for residential development, and the adoption of zoning allowing for use by right for residential and mixed-use development. This bill, commencing with the 6th revision of the housing element, would require a jurisdiction to attain a prohousing designation by the department if the jurisdiction’s relative progress toward meeting its share of the regional or subregional housing need for all housing is at least 10 percentage points less than the relative progress of their affiliated council of governments or subregion, as determined pursuant to the provisions described above, as specified. (3)The Planning and Zoning Law also requires HCD the department to notify a city, county, or city and county, and authorizes HCD the department to notify the office of the Attorney General, that the city, 2 B-2 county, or city and county is in violation of state law if HCD the department finds that the housing element or an amendment to the housing element does not substantially comply with specified provisions of the Planning and Zoning Law, or that the local government has taken action or failed to act in violation of specified provisions of law. This bill would add the Housing Crisis Act of 2019 to those specified provisions of law. 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.​ State-mandated local program: no yes.​ The people of the State of California do enact as follows: line 1 SECTION 1. The State of California is suffering from line 2 extremely high home prices, rents, and levels of homelessness. line 3 This is, in part, due to the lack of proper planning at the local level line 4 for the appropriate amount of housing. It is the intent of the line 5 Legislature to ensure proper planning occurs at the local level by line 6 requiring the Department of Housing and Community Development line 7 to review the plans and programs of any city county where the line 8 amount of housing produced falls below a specified percentage of line 9 their regional housing needs allocation, and to recommend line 10 amendments to local housing elements as necessary. line 11 SEC. 2. line 12 SECTION 1. Section 65585 of the Government Code is line 13 amended to read: line 14 65585. (a)  In the preparation of its housing element, each city line 15 and county shall consider the guidelines adopted by the department line 16 pursuant to Section 50459 of the Health and Safety Code. Those line 17 guidelines shall be advisory to each city or county in the line 18 preparation of its housing element. line 19 (b)(1)  At least 90 days prior to adoption of its housing element, line 20 or at least 60 days prior to the adoption of an amendment to this line 21 element, the planning agency shall submit a draft element or draft line 22 amendment to the department. 3 B-3 line 1 (2)  The planning agency staff shall collect and compile the line 2 public comments regarding the housing element received by the line 3 city, county, or city and county, and provide these comments to line 4 each member of the legislative body before it adopts the housing line 5 element. line 6 (3)  The department shall review the draft and report its written line 7 findings to the planning agency within 90 days of its receipt of the line 8 draft in the case of an adoption or within 60 days of its receipt in line 9 the case of a draft amendment. line 10 (c)  In the preparation of its findings, the department may consult line 11 with any public agency, group, or person. The department shall line 12 receive and consider any written comments from any public line 13 agency, group, or person regarding the draft or adopted element line 14 or amendment under review. line 15 (d)  In its written findings, the department shall determine line 16 whether the draft element or draft amendment substantially line 17 complies with this article. line 18 (e)  Prior to the adoption of its draft element or draft amendment, line 19 the legislative body shall consider the findings made by the line 20 department. If the department’s findings are not available within line 21 the time limits set by this section, the legislative body may act line 22 without them. line 23 (f)  If the department finds that the draft element or draft line 24 amendment does not substantially comply with this article, the line 25 legislative body shall take one of the following actions: line 26 (1)  Change the draft element or draft amendment to substantially line 27 comply with this article. line 28 (2)  Adopt the draft element or draft amendment without changes. line 29 The legislative body shall include in its resolution of adoption line 30 written findings which explain the reasons the legislative body line 31 believes that the draft element or draft amendment substantially line 32 complies with this article despite the findings of the department. line 33 (g)  Promptly following the adoption of its element or line 34 amendment, the planning agency shall submit a copy to the line 35 department. line 36 (h)  The department shall, within 90 days, review adopted line 37 housing elements or amendments and report its findings to the line 38 planning agency. line 39 (i)  (1)  (A)  The department shall review any action or failure line 40 to act by the city, county, or city and county that it determines is 4 B-4 line 1 inconsistent with an adopted housing element or Section 65583, line 2 including any failure to implement any program actions included line 3 in the housing element pursuant to Section 65583. The department line 4 shall issue written findings to the city, county, or city and county line 5 as to whether the action or failure to act substantially complies line 6 with this article, and provide a reasonable time no longer than 30 line 7 days for the city, county, or city and county to respond to the line 8 findings before taking any other action authorized by this section, line 9 including the action authorized by subparagraph (B). line 10 (B)  If the department finds that the action or failure to act by line 11 the city, county, or city and county does not substantially comply line 12 with this article, and if it has issued findings pursuant to this section line 13 that an amendment to the housing element substantially complies line 14 with this article, the department may revoke its findings until it line 15 determines that the city, county, or city and county has come into line 16 compliance with this article. line 17 (2)  The department may consult with any local government, line 18 public agency, group, or person, and shall receive and consider line 19 any written comments from any public agency, group, or person, line 20 regarding the action or failure to act by the city, county, or city line 21 and county described in paragraph (1), in determining whether the line 22 housing element substantially complies with this article. line 23 (j)  The department shall notify the city, county, or city and line 24 county and may notify the office of the Attorney General that the line 25 city, county, or city and county is in violation of state law if the line 26 department finds that the housing element or an amendment to this line 27 element, or any action or failure to act described in subdivision line 28 (i), does not substantially comply with this article or that any local line 29 government has taken an action in violation of the following: line 30 (1)  Housing Accountability Act (Section 65589.5 of the line 31 Government Code). line 32 (2)  Section 65863 of the Government Code. line 33 (3)  Chapter 4.3 (commencing with Section 65915) of Division line 34 1 of Title 7 of the Government Code. line 35 (4)  Section 65008 of the Government Code. line 36 (5)  Housing Crisis Act of 2019 (Section 66300 of the line 37 Government Code). line 38 (k)  Commencing July 1, 2019, prior to the Attorney General line 39 bringing any suit for a violation of the provisions identified in line 40 subdivision (j) related to housing element compliance and seeking 5 B-5 line 1 remedies available pursuant to this subdivision, the department line 2 shall offer the jurisdiction the opportunity for two meetings in line 3 person or via telephone to discuss the violation, and shall provide line 4 the jurisdiction written findings regarding the violation. This line 5 paragraph does not affect any action filed prior to the effective line 6 date of this section. The requirements set forth in this subdivision line 7 do not apply to any suits brought for a violation or violations of line 8 paragraphs (1), (3), and (4) of subdivision (j). line 9 (l)In any action or special proceeding brought by the Attorney line 10 General relating to housing element compliance pursuant to a line 11 notice or referral under subdivision (j), the Attorney General may line 12 request, upon a finding of the court that the housing element does line 13 not substantially comply with the requirements of this article line 14 pursuant to this section, that the court issue an order or judgment line 15 directing the jurisdiction to bring its housing element into line 16 substantial compliance with the requirements of this article. The line 17 court shall retain jurisdiction to ensure that its order or judgment line 18 is carried out. If a court determines that the housing element of line 19 the jurisdiction substantially complies with this article, it shall line 20 have the same force and effect, for purposes of eligibility for any line 21 financial assistance that requires a housing element in substantial line 22 compliance and for purposes of any incentives provided under line 23 Section 65589.9, as a determination by the department that the line 24 housing element substantially complies with this article. line 25 (1)If the jurisdiction has not complied with the order or line 26 judgment after twelve months, the court shall conduct a status line 27 conference. Following the status conference, upon a determination line 28 that the jurisdiction failed to comply with the order or judgment line 29 compelling substantial compliance with the requirements of this line 30 article, the court shall impose fines on the jurisdiction, which shall line 31 be deposited into the Building Homes and Jobs Trust Fund. Any line 32 fine levied pursuant to this paragraph shall be in a minimum line 33 amount of ten thousand dollars ($10,000) per month, but shall not line 34 exceed one hundred thousand dollars ($100,000) per month, except line 35 as provided in paragraphs (2) and (3). In the event that the line 36 jurisdiction fails to pay fines imposed by the court in full and on line 37 time, the court may require the Controller to intercept any available line 38 state and local funds and direct such funds to the Building Homes line 39 and Jobs Trust Fund to correct the jurisdiction’s failure to pay. 6 B-6 line 1 The intercept of the funds by the Controller for this purpose shall line 2 not violate any provision of the California Constitution. line 3 (2)  If the jurisdiction has not complied with the order or line 4 judgment after three months following the imposition of fees line 5 described in paragraph (1), the court shall conduct a status line 6 conference. Following the status conference, if the court finds that line 7 the fees imposed pursuant to paragraph (1) are insufficient to bring line 8 the jurisdiction into compliance with the order or judgment, the line 9 court may multiply the fine determined pursuant to paragraph (1) line 10 by a factor of three. In the event that the jurisdiction fails to pay line 11 fines imposed by the court in full and on time, the court may line 12 require the Controller to intercept any available state and local line 13 funds and direct such funds to the Building Homes and Jobs Trust line 14 Fund to correct the jurisdiction’s failure to pay. The intercept of line 15 the funds by the Controller for this purpose shall not violate any line 16 provision of the California Constitution. line 17 (3)  If the jurisdiction has not complied with the order or line 18 judgment six months following the imposition of fees described line 19 in paragraph (1), the court shall conduct a status conference. Upon line 20 a determination that the jurisdiction failed to comply with the order line 21 or judgment, the court may impose the following: line 22 (A)  If the court finds that the fees imposed pursuant to line 23 paragraphs (1) and (2) are insufficient to bring the jurisdiction into line 24 compliance with the order or judgment, the court may multiply line 25 the fine determined pursuant to paragraph (1) by a factor of six. line 26 In the event that the jurisdiction fails to pay fines imposed by the line 27 court in full and on time, the court may require the Controller to line 28 intercept any available state and local funds and direct such funds line 29 to the Building Homes and Jobs Trust Fund to correct the line 30 jurisdiction’s failure to pay. The intercept of the funds by the line 31 Controller for this purpose shall not violate any provision of the line 32 California Constitution. line 33 (B)  The court may order remedies available pursuant to Section line 34 564 of the Code of Civil Procedure, under which the agent of the line 35 court may take all governmental actions necessary to bring the line 36 jurisdiction’s housing element into substantial compliance pursuant line 37 to this article in order to remedy identified deficiencies. The court line 38 shall determine whether the housing element of the jurisdiction line 39 substantially complies with this article and, once the court makes line 40 that determination, it shall have the same force and effect, for all 7 B-7 line 1 purposes, as the department’s determination that the housing line 2 element substantially complies with this article. An agent appointed line 3 pursuant to this paragraph shall have expertise in planning in line 4 California. line 5 (4)  This subdivision does not limit a court’s discretion to apply line 6 any and all remedies in an action or special proceeding for a line 7 violation of any law identified in subdivision (j). line 8 (m)  In determining the application of the remedies available line 9 under subdivision (l), the court shall consider whether there are line 10 any mitigating circumstances delaying the jurisdiction from coming line 11 into compliance with state housing law. The court may consider line 12 whether a city, county, or city and county is making a good faith line 13 effort to come into substantial compliance or is facing substantial line 14 undue hardships. line 15 (n)  The office of the Attorney General may seek all remedies line 16 available under law including those set forth in this section. line 17 SEC. 2. Section 65585.5 is added to the Government Code, to line 18 read: line 19 65585.5. (a)  Commencing with the sixth revision of the housing line 20 element pursuant to Section 65588, the department shall determine line 21 the relative progress toward meeting regional housing needs line 22 subject to the following: line 23 (1)  (A)  The department shall determine relative progress toward line 24 meeting regional housing needs for all housing and lower income line 25 housing during the fifth year of the applicable planning period. line 26 (B)  The department shall also determine relative progress line 27 toward meeting regional housing needs for all housing during the line 28 year after the completion of the jurisdiction’s planning period. line 29 The department’s determination of relative progress under this line 30 subparagraph shall be used to determine jurisdictions that must line 31 attain a prohousing designation pursuant to Section 65589.10 and line 32 shall not be the basis for a midcycle housing element consultation line 33 under subdivision (b). line 34 (2)  The department shall make relative progress determinations line 35 based on the information contained in the annual reports submitted line 36 pursuant to Section 65400, and shall measure relative progress line 37 subject to the following: line 38 (A)  For each jurisdiction: line 39 (i)  Relative progress for all housing shall be measured by line 40 dividing the jurisdiction’s progress toward meeting its share of 8 B-8 line 1 the regional housing need by its prorated share of the regional line 2 housing need, as determined pursuant to Section 65584. line 3 (ii)Relative progress for lower income housing shall be line 4 measured by dividing the jurisdiction’s progress toward meeting line 5 its share of the regional housing need for the very low and line 6 low-income categories by its prorated share of the regional housing line 7 need for very low and low-income households, as determined line 8 pursuant to Section 65584. line 9 (B)For each council of governments: line 10 (i)Relative progress for all housing shall be measured by line 11 summing the progress of each of the council of governments’ line 12 member jurisdictions toward meeting their share of the regional line 13 housing need and dividing that sum by the prorated regional line 14 housing need, as determined pursuant to Section 65584.01. line 15 (ii)Relative progress for lower income housing shall be line 16 measured by summing the progress of each of the council of line 17 governments’ member jurisdictions toward meeting their share of line 18 the regional housing need for very low and low-income households line 19 and dividing that sum by the prorated regional housing need for line 20 very low and low-income households, as determined pursuant to line 21 Section 65584.01. line 22 (C)For each subregion: line 23 (i)Relative progress for all housing shall be measured by line 24 summing the progress of each of the subregion’s member line 25 jurisdictions toward meeting their share of the subregional housing line 26 need and dividing that sum by the prorated subregional housing line 27 need, as determined pursuant to Section 65584.03. line 28 (ii)Relative progress for lower income housing shall be line 29 measured by summing the progress of each of the subregion’s line 30 member jurisdictions toward meeting their share of the subregional line 31 housing need for very low and low-income households and dividing line 32 that sum by the prorated subregional housing need for very low line 33 and low-income households, as determined pursuant to Section line 34 65584.03. line 35 (3)This subdivision shall only apply to jurisdictions with an line 36 eight-year housing element planning period, pursuant to Section line 37 65588. line 38 (4)Determinations of relative progress shall be published on line 39 the department’s internet website by July 1 of the year in which line 40 relative progress is determined. 9 B-9 line 1 (b)  (1)  A jurisdiction shall undertake a midcycle housing line 2 element consultation with the department if both of the following line 3 occur: line 4 (A)  The jurisdiction’s progress toward meeting its share of the line 5 regional housing need is less than its prorated share of the regional line 6 housing need. line 7 (B)  The jurisdiction meets one of the following: line 8 (i)  The jurisdiction’s relative progress for all housing during line 9 the fifth year of the applicable planning period, pursuant to line 10 subdivision (a), is less than the relative progress for all housing line 11 of the jurisdiction’s affiliated council of governments or subregion. line 12 (ii)  The jurisdiction’s relative progress for very low and line 13 low-income households during the fifth year of the applicable line 14 planning period, pursuant to subdivision (a), is less than the line 15 relative progress for very low and low-income households of the line 16 jurisdiction’s affiliated council of governments or subregion. line 17 (2)  A jurisdiction required to conduct a midcycle housing line 18 element consultation pursuant to this subdivision shall, in line 19 coordination with the department, do all of the following: line 20 (A)  Review and update, as necessary, all goals, policies, line 21 quantified objectives, financial resources, and scheduled programs. line 22 (B)  Ensure that all programs have enforceable actions and line 23 concrete timelines. line 24 (3)  (A)  By July 1 of the year in which the determination of line 25 relative progress has occurred pursuant to subdivision (a), the line 26 department shall notify each jurisdiction, in writing, of their need line 27 to comply with this subdivision. line 28 (B)  A midcycle housing element consultation shall occur within line 29 six months of the jurisdiction receiving the notice pursuant to line 30 subparagraph (A). line 31 (C)  Any revisions to the housing element required by the line 32 department during a midcycle housing element consultation must line 33 be completed within one year of the consultation. line 34 (4)  The department may apply the requirements of this line 35 subdivision to any jurisdiction that fails to submit a substantially line 36 compliant annual report pursuant to the timelines and requirements line 37 of Section 65400. line 38 (5)  If the department determines that a jurisdiction has not line 39 complied with the requirements of this subdivision, the department 10 B-10 line 1 shall find that their housing element does not substantially comply line 2 with this article, pursuant to Section 65585. line 3 SEC. 3. Section 65589.10 is added to the Government Code, line 4 to read: line 5 65589.10. (a)  Commencing with the sixth revision of the line 6 housing element pursuant to Section 65588, any jurisdiction whose line 7 relative progress toward meeting its share of the regional or line 8 subregional housing need for all housing, as determined pursuant line 9 to paragraph (2) of subdivision (a) of Section 65585.5, is at least line 10 10 percentage points less than the relative progress of their line 11 affiliated council of governments or subregion shall be required line 12 to attain a prohousing designation by the department pursuant to line 13 subdivision (c) of Section 65589.9. line 14 (b)  (1)  The department shall determine whether a jurisdiction line 15 is required to attain a prohousing designation pursuant to line 16 subdivision (a) by July 1 of the year in which the determination of line 17 relative progress has occurred. line 18 (2)  The department shall make a second determination of line 19 whether a jurisdiction is required to attain a prohousing line 20 designation pursuant to subdivision (a) by July 1 of the year after line 21 the completion of the jurisdiction’s planning period. line 22 (3)  The department shall provide written notice to a jurisdiction line 23 that must attain a prohousing designation pursuant to subdivision line 24 (a) by July 1 of the year in which the determination is made. line 25 (4)  A jurisdiction that receives written notice pursuant to line 26 paragraph (3) that does not already have a prohousing designation line 27 shall attain a prohousing designation by July 1 of the year after line 28 receiving the notice pursuant to paragraph (3). If the jurisdiction line 29 does not comply with this timeline, the department shall find that line 30 the jurisdiction’s housing element does not substantially comply line 31 with this article pursuant to Section 65585. line 32 (c)  The department may apply the requirements of this section line 33 to any jurisdiction that fails to submit a substantially compliant line 34 annual report pursuant to the timelines and requirements of Section line 35 65400. line 36 SEC. 4. No reimbursement is required by this act pursuant to line 37 Section 6 of Article XIII B of the California Constitution because line 38 a local agency or school district has the authority to levy service line 39 charges, fees, or assessments sufficient to pay for the program or 11 B-11 line 1 level of service mandated by this act, within the meaning of Section line 2 17556 of the Government Code. O 12 B-12