CC SR 20240903 I - Requests for Veto
CITY COUNCIL MEETING DATE: 09/03/2024
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to ratify two letters requesting Governor Newsom to
veto Senate Bill 450 (Atkins) and Senate Bill 937 (Wiener)
RECOMMENDED COUNCIL ACTION:
(1) Ratify a letter signed by Mayor Cruikshank, requesting Governor Newsom to veto
Senate Bill (SB) 450: Housing Development: approvals (Atkins); and,
(2) Ratify a letter signed by Mayor Cruikshank, requesting Governor Newsom to veto
Senate Bill (SB) 937: Development projects: fees and charges (Wiener)
FISCAL IMPACT: There is no direct fiscal impact.
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Catherine Jun, Deputy City Manager
REVIEWED BY: Same as below
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. August 29, 2024 Request to Veto SB 450 (Atkins) (page A-1)
B. SB 450 Bill Text (page B-1)
C. August 29, 2024 Request to Veto SB 937 (Wiener) (page C-1)
D. SB 937 Bill Text (page D-1)
BACKGROUND
On December 19, 2023, the City Council adopted the 2024 Legislative Platform, which
outlines the policy position of the City Council on current issues that directly or indirectly
impact the City. The Platform serves as a guideline to actively engage with pending
legislation, with City Council approval.
The Platform identifies five major policies priorities, including Housing and Local Land
Use. This priority espouses several tenets, including the following three that are
applicable to this item:
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A) Oppose legislation that infringes local control and erodes the City’s authority to
manage its own affairs.
B) Support actions which further strengthen local democracy, authority, and control.
C) Oppose legislation that diminishes the authority of local jurisdictions in processing
permits, enforcing building codes, or mandating the manner of enforcement.
DISCUSSION:
During the final week of the legislative session in Sacramento, two bills that limit local
control over housing and land use passed both houses and headed to the Governor’s
desk, as of August 29, 2024. The Governor has until September 30 to sign or veto any
bills passed by the Legislature before September 1.
SB 450 – Housing Development
SB 450 was recently moved from the inactive file in the final days of the legislative session
and was passed by both houses on August 29. The bill would limit the ability of local
governments to apply objective standards on proposed SB 9 projects and require cities
to approve or deny a proposed project within 60 days from when a local agency receives
a completed application, or the project is deemed approved. The measure also allows a
developer to demolish and replace an existing home with two new homes e ven if a tenant
occupies the home.
SB 9 permitted the application of objective standards if those standards did not physically
preclude the construction of the units. SB 450 reverses this provision by limiting objective
standards to those that apply on sites that do not include two units, preventing a local
agency from applying appropriate health and safety standards while not precluding the
use.
Additionally, SB 450 would prohibit local governments from accounting for specific,
adverse impacts on the physical environment of a proposed lot split which may lead to
unintended consequences for local communities. By removing the ability of local
governments to account for this, streamlined housing projects may have negative impacts
on the environment, noise levels, and wildlife.
A letter requesting the Governor to veto SB 450 is available under Attachment A; the bill
text as amended is available under Attachment B.
SB 937 - Development projects: fees and charges
SB 937 would, among other things, for certain developments, defer development impact
fees until the certificate of occupancy or its equivalent is issued and would also restrict
local agencies from charging interest on any deferred fees. The bill would therefore
create significant fiscal challenges to local agencies and their efforts to provide essential
services and infrastructure, utilizing these fees.
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Should the City Council approve developer impact fees in the future, this bill would prohibit
cities from requiring impact fees until late in the development process, from charging
interest on deferred fees, and transferring risk should a project fail will further limit cities’
ability to serve the needs of their communities.
A letter requesting the Governor to veto SB 937 is available under Attachment B; the bill
text as amended is available under Attachment D.
CONCLUSION:
Given the pace at which these bills were moving through both houses and to the
Governor’s desk, the Mayor signed and sent both letters to the Governor. The City
Council is requested to consider ratifying both letters.
ALTERNATIVES:
In addition to Staff’s Recommendations, the following alternative actions are available for
the City Council’s consideration:
1. Direct Staff not to ratify one or both attached letters to the Governor.
2. Take other action as the Council deems appropriate.
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City of Rancho Palos Verdes
John Cruikshank, Mayor
Eric Alegria, Mayor Pro Tem
David L. Bradley, Councilmember
Barbara Ferraro, Councilmember
Paul Seo, Councilmember
30940 HAWTHORNE BLVD. / RANCHO PALOS VERDES, CA 90275-5391 / (310) 544-5207 / FAX (310) 544-5291 / WWW.RPVCA.GOV
August 29, 2024
The Honorable Gavin Newsom
California Governor
1021 O Street, Suite 9000
Sacramento, CA 95814
RE: SENATE BILL 450 (ATKINS) – REQUEST FOR VETO
Dear Governor Newsom,
On behalf of the City of Rancho Palos Verdes, I am writing to respectfully request your
veto on Senate Bill (SB) 450, which would limit the ability of local governments to apply
objective standards on a proposed SB 9 project and require cities to approve or deny a
proposed project within 60 days from when a local agency receives a completed
application, or the project is deemed approved. The bill would also allow a developer to
demolish and replace an existing home with two new homes even if a tenant occupies
the home.
SB 9 permitted the application of objective standards if those standards did not physically
preclude the construction of the units. SB 450 reverses this provision by limiting objective
standards to those that apply on sites that do not include two units, preventing a local
agency from applying appropriate health and safety standards while not precluding the
use.
The Legislature continues to pass dozens of complex housing laws requiring ministerial
approval of various projects without funding for local governments to hire the necessary
staff to implement these laws. SB 450 would compound this problem by requiring cities
to approve or deny projects within 60 days, thus forcing cities to set aside other housing
development applications to prioritize SB 9 projects. Failure to act within 60 days would
result in automatic project approval.
A-1
SB 450 (Atkins)
Request for Veto
August 29, 2024
Additionally, SB 450 would prohibit local governments from accounting for specific,
adverse impacts on the physical environment of a proposed lot split which may lead to
unintended consequences for local communities. We plan and zone for the intensity of
land uses in our general plan to ensure safe and smart residential development. By
removing the ability of local governments to account for this, streamlined housing projects
may have negative impacts on the environment, agriculture, noise levels, and wildlife.
Protecting these resources is necessary to promote smart and safe housing development.
For these reasons, we respectfully request your veto on SB 450. Should you have any
questions, please contact our legislative advocate Sharon Gonsalves with Renne Public
Policy Group at 916-974-9270.
Sincerely,
John Cruikshank
Mayor
310-544-5202
John.Cruikshank@rpvca.gov
CC: The Honorable Ben Allen, Senate District 24
The Honorable Al Muratsuchi, Assembly District 66
Myles White, Deputy Legislative Secretary, Office of Governor Gavin Newsom
Rancho Palos Verdes City Council
Ara Mihranian, City Manager
Catherine Jun, Rancho Palos Verdes Deputy City Manager
A-2
AMENDED IN ASSEMBLY AUGUST 22, 2024
AMENDED IN ASSEMBLY SEPTEMBER 1, 2023
AMENDED IN SENATE MARCH 16, 2023
SENATE BILL No. 450
Introduced by Senator Atkins
February 13, 2023
An act to amend Sections 65585, 65852.21, 65852.21 and 66411.7
of the Government Code, and to amend Section 4 of Chapter 162 of the
Statutes of 2021, relating to land use.
legislative counsel’s digest
SB 450, as amended, Atkins. Housing development: approvals.
(1) The Planning and Zoning Law provides for the creation of
accessory dwelling units by local ordinance, or, if a local agency has
not adopted an ordinance, by ministerial approval, in accordance with
specified standards and conditions.
Existing law
(1) The Planning and Zoning law requires a proposed housing
development containing no more than 2 residential units within a
single-family residential zone to be considered ministerially, without
discretionary review or hearing, if the proposed housing development
meets certain requirements, including that the proposed housing
development does not allow for the demolition of more than 25% of
the existing exterior structural walls, except as provided. Existing law
authorizes a local agency to impose objective zoning standards, objective
subdivision standards, and objective design standards, as defined, except
as specified, on the proposed housing development. Existing law
authorizes a local agency to deny a proposed housing development if
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specified conditions are met, including that the building official makes
a written finding that the proposed housing development project would
have a specific, adverse impact upon public health and safety or the
physical environment, as provided.
This bill would remove the requirement that a proposed housing
development does not allow for the demolition of more than 25% of
the existing exterior structural walls to be considered ministerially. The
bill would prohibit a local agency from imposing objective zoning
standards, objective subdivision standards, and objective design
standards that do not apply uniformly to development within the
underlying zone, but would specify that these provisions do not prohibit
a local agency from adopting or imposing objective zoning standards,
objective subdivision standards, and objective design standards on the
development if the standards are more permissive than applicable
standards within the underlying zone. The bill would remove the
authorization for a local agency to deny a proposed housing development
if the building official makes a written finding that the proposed housing
development project would have a specific, adverse impact upon the
physical environment. The bill would require the local agency to
consider and approve or deny the proposed housing development
application within 60 days from the date the local agency receives the
completed application, and would deem the application approved after
that time. The bill would require a permitting agency, if it denies an
application, to provide a full set of comments to the applicant with a
list of items that are defective or deficient and a description of how the
application can be remedied by the applicant.
(2) The Subdivision Map Act vests the authority to regulate and
control the design and improvement of subdivisions in the legislative
body of a local agency and sets forth procedures governing the local
agency’s processing, approval, conditional approval or disapproval,
and filing of tentative, final, and parcel maps, and the modification of
those maps.
Existing law requires a local agency to ministerially approve a parcel
map for an urban lot split that meets certain requirements. Existing law
authorizes a local agency to impose objective zoning standards, objective
subdivision standards, and objective design standards, as defined, except
as specified. Existing law authorizes a local agency to deny an urban
lot split if specified conditions are met, including that the building
official makes a written finding that the proposed housing development
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project would have a specific, adverse impact upon public health and
safety or the physical environment, as provided.
This bill would specify that objective zoning standards, objective
subdivision standards, and objective design standards imposed by a
local agency must be related to the design or improvements of a parcel.
This bill would remove the authorization for a local agency to deny a
proposed housing development if the building official makes a written
finding that the proposed housing development project would have a
specific, adverse impact upon the physical environment. The bill would
require the local agency to consider and approve or deny the proposed
housing development application within 60 days from the date the local
agency receives the completed application, and would deem the
application approved after that time. The bill would require a permitting
agency, if it denies an application, to provide a full set of comments to
the applicant with a list of items that are defective or deficient and a
description of how the application can be remedied by the applicant.
(3) The Planning and Zoning Law requires each county and city to
adopt a comprehensive, long-term general plan for the physical
development of the county or city and requires that general plan to
include, among other mandatory elements, a housing element. Existing
law requires a planning agency to submit a copy of its draft housing
element or amendments to its housing element to the department for
review, and requires the department to notify the city, county, or city
and county if the department finds that the housing element or the
amendment does not substantially comply with or is in violation of
specified statutes.
This bill would add the proposed housing development and urban lot
split provisions described above to the list of statutes the department is
required to notify a city, county, or city and county of when reviewing
a housing element or amendment.
(4)
(3) This bill would make additional nonsubstantive and conforming
changes to these provisions.
(5)
(4) The bill would include findings that related to changes proposed
by this bill and would amend certain findings in existing law to state
that the provisions address a matter of statewide concern rather than a
municipal affair and, therefore, apply to all cities, including charter
cities.
(6)
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(5) By increasing the duties of local agencies with respect to land
use regulations, the 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.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 65585 of the Government Code is
line 2 amended to read:
line 3 65585. (a) In the preparation of its housing element, each city
line 4 and county shall consider the guidelines adopted by the department
line 5 pursuant to Section 50459 of the Health and Safety Code. Those
line 6 guidelines shall be advisory to each city or county in the
line 7 preparation of its housing element.
line 8 (b) (1) At least 90 days prior to adoption of a revision of its
line 9 housing element pursuant to subdivision (e) of Section 65588, or
line 10 at least 60 days prior to the adoption of a subsequent amendment
line 11 to this element, the planning agency shall submit a draft element
line 12 revision or draft amendment to the department. The local
line 13 government of the planning agency shall make the first draft
line 14 revision of a housing element available for public comment for at
line 15 least 30 days and, if any comments are received, the local
line 16 government shall take at least 10 business days after the 30-day
line 17 public comment period to consider and incorporate public
line 18 comments into the draft revision prior to submitting it to the
line 19 department. For any subsequent draft revision, the local
line 20 government shall post the draft revision on its internet website and
line 21 shall email a link to the draft revision to all individuals and
line 22 organizations that have previously requested notices relating to
line 23 the local government’s housing element at least seven days before
line 24 submitting the draft revision to the department.
line 25 (2) The planning agency staff shall collect and compile the
line 26 public comments regarding the housing element received by the
line 27 city, county, or city and county, and provide these comments to
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line 1 each member of the legislative body before it adopts the housing
line 2 element.
line 3 (3) The department shall review the draft and report its written
line 4 findings to the planning agency within 90 days of its receipt of the
line 5 first draft submittal for each housing element revision pursuant to
line 6 subdivision (e) of Section 65588 or within 60 days of its receipt
line 7 of a subsequent draft amendment or an adopted revision or adopted
line 8 amendment to an element. The department shall not review the
line 9 first draft submitted for each housing element revision pursuant
line 10 to subdivision (e) of Section 65588 until the local government has
line 11 made the draft available for public comment for at least 30 days
line 12 and, if comments were received, has taken at least 10 business
line 13 days to consider and incorporate public comments pursuant to
line 14 paragraph (1).
line 15 (c) In the preparation of its findings, the department may consult
line 16 with any public agency, group, or person. The department shall
line 17 receive and consider any written comments from any public
line 18 agency, group, or person regarding the draft or adopted element
line 19 or amendment under review.
line 20 (d) In its written findings, the department shall determine
line 21 whether the draft element or draft amendment substantially
line 22 complies with this article.
line 23 (e) Prior to the adoption of its draft element or draft amendment,
line 24 the legislative body shall consider the findings made by the
line 25 department. If the department’s findings are not available within
line 26 the time limits set by this section, the legislative body may act
line 27 without them.
line 28 (f) If the department finds that the draft element or draft
line 29 amendment does not substantially comply with this article, the
line 30 legislative body shall take one of the following actions:
line 31 (1) Change the draft element or draft amendment to substantially
line 32 comply with this article.
line 33 (2) Adopt the draft element or draft amendment without changes.
line 34 The legislative body shall include in its resolution of adoption
line 35 written findings which explain the reasons the legislative body
line 36 believes that the draft element or draft amendment substantially
line 37 complies with this article despite the findings of the department.
line 38 (g) Promptly following the adoption of its element or
line 39 amendment, the planning agency shall submit a copy to the
line 40 department.
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line 1 (h) The department shall, within 90 days, review adopted
line 2 housing elements or amendments and report its findings to the
line 3 planning agency.
line 4 (i) (1) (A) The department shall review any action or failure
line 5 to act by the city, county, or city and county that it determines is
line 6 inconsistent with an adopted housing element or Section 65583,
line 7 including any failure to implement any program actions included
line 8 in the housing element pursuant to Section 65583. The department
line 9 shall issue written findings to the city, county, or city and county
line 10 as to whether the action or failure to act substantially complies
line 11 with this article, and provide a reasonable time no longer than 30
line 12 days for the city, county, or city and county to respond to the
line 13 findings before taking any other action authorized by this section,
line 14 including the action authorized by subparagraph (B).
line 15 (B) If the department finds that the action or failure to act by
line 16 the city, county, or city and county does not substantially comply
line 17 with this article, and if it has issued findings pursuant to this section
line 18 that an amendment to the housing element substantially complies
line 19 with this article, the department may revoke its findings until it
line 20 determines that the city, county, or city and county has come into
line 21 compliance with this article.
line 22 (2) The department may consult with any local government,
line 23 public agency, group, or person, and shall receive and consider
line 24 any written comments from any public agency, group, or person,
line 25 regarding the action or failure to act by the city, county, or city
line 26 and county described in paragraph (1), in determining whether the
line 27 housing element substantially complies with this article.
line 28 (j) The department shall notify the city, county, or city and
line 29 county and may notify the office of the Attorney General that the
line 30 city, county, or city and county is in violation of state law if the
line 31 department finds that the housing element or an amendment to this
line 32 element, or any action or failure to act described in subdivision
line 33 (i), does not substantially comply with this article or that any local
line 34 government has taken an action in violation of the following:
line 35 (1) Housing Accountability Act (Section 65589.5).
line 36 (2) Section 65863.
line 37 (3) Chapter 4.3 (commencing with Section 65915).
line 38 (4) Section 65008.
line 39 (5) Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019,
line 40 Sections 65941.1, 65943, and 66300).
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line 1 (6) Section 8899.50.
line 2 (7) Section 65913.4.
line 3 (8) Article 11 (commencing with Section 65650).
line 4 (9) Article 12 (commencing with Section 65660).
line 5 (10) Section 65913.11.
line 6 (11) Section 65400.
line 7 (12) Section 65863.2.
line 8 (13) Chapter 4.1 (commencing with Section 65912.100).
line 9 (14) Section 65852.21.
line 10 (15) Section 66411.7.
line 11 (k) Commencing July 1, 2019, prior to the Attorney General
line 12 bringing any suit for a violation of the provisions identified in
line 13 subdivision (j) related to housing element compliance and seeking
line 14 remedies available pursuant to this subdivision, the department
line 15 shall offer the jurisdiction the opportunity for two meetings in
line 16 person or via telephone to discuss the violation, and shall provide
line 17 the jurisdiction written findings regarding the violation. This
line 18 paragraph does not affect any action filed prior to the effective
line 19 date of this section. The requirements set forth in this subdivision
line 20 do not apply to any suits brought for a violation or violations of
line 21 paragraphs (1) and (3) to (9), inclusive, of subdivision (j).
line 22 (l) In any action or special proceeding brought by the Attorney
line 23 General relating to housing element compliance pursuant to a
line 24 notice or referral under subdivision (j), the Attorney General may
line 25 request, upon a finding of the court that the housing element does
line 26 not substantially comply with the requirements of this article
line 27 pursuant to this section, that the court issue an order or judgment
line 28 directing the jurisdiction to bring its housing element into
line 29 substantial compliance with the requirements of this article. The
line 30 court shall retain jurisdiction to ensure that its order or judgment
line 31 is carried out. If a court determines that the housing element of
line 32 the jurisdiction substantially complies with this article, it shall
line 33 have the same force and effect, for purposes of eligibility for any
line 34 financial assistance that requires a housing element in substantial
line 35 compliance and for purposes of any incentives provided under
line 36 Section 65589.9, as a determination by the department that the
line 37 housing element substantially complies with this article.
line 38 (1) If the jurisdiction has not complied with the order or
line 39 judgment after 12 months, the court shall conduct a status
line 40 conference. Following the status conference, upon a determination
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line 1 that the jurisdiction failed to comply with the order or judgment
line 2 compelling substantial compliance with the requirements of this
line 3 article, the court shall impose fines on the jurisdiction, which shall
line 4 be deposited into the Building Homes and Jobs Trust Fund. Any
line 5 fine levied pursuant to this paragraph shall be in a minimum
line 6 amount of ten thousand dollars ($10,000) per month, but shall not
line 7 exceed one hundred thousand dollars ($100,000) per month, except
line 8 as provided in paragraphs (2) and (3). In the event that the
line 9 jurisdiction fails to pay fines imposed by the court in full and on
line 10 time, the court may require the Controller to intercept any available
line 11 state and local funds and direct those funds to the Building Homes
line 12 and Jobs Trust Fund to correct the jurisdiction’s failure to pay.
line 13 The intercept of the funds by the Controller for this purpose shall
line 14 not violate any provision of the California Constitution.
line 15 (2) If the jurisdiction has not complied with the order or
line 16 judgment after three months following the imposition of fees
line 17 described in paragraph (1), the court shall conduct a status
line 18 conference. Following the status conference, if the court finds that
line 19 the fees imposed pursuant to paragraph (1) are insufficient to bring
line 20 the jurisdiction into compliance with the order or judgment, the
line 21 court may multiply the fine determined pursuant to paragraph (1)
line 22 by a factor of three. In the event that the jurisdiction fails to pay
line 23 fines imposed by the court in full and on time, the court may
line 24 require the Controller to intercept any available state and local
line 25 funds and direct those funds to the Building Homes and Jobs Trust
line 26 Fund to correct the jurisdiction’s failure to pay. The intercept of
line 27 the funds by the Controller for this purpose shall not violate any
line 28 provision of the California Constitution.
line 29 (3) If the jurisdiction has not complied with the order or
line 30 judgment six months following the imposition of fees described
line 31 in paragraph (1), the court shall conduct a status conference. Upon
line 32 a determination that the jurisdiction failed to comply with the order
line 33 or judgment, the court may impose the following:
line 34 (A) If the court finds that the fees imposed pursuant to
line 35 paragraphs (1) and (2) are insufficient to bring the jurisdiction into
line 36 compliance with the order or judgment, the court may multiply
line 37 the fine determined pursuant to paragraph (1) by a factor of six.
line 38 In the event that the jurisdiction fails to pay fines imposed by the
line 39 court in full and on time, the court may require the Controller to
line 40 intercept any available state and local funds and direct those funds
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line 1 to the Building Homes and Jobs Trust Fund to correct the
line 2 jurisdiction’s failure to pay. The intercept of the funds by the
line 3 Controller for this purpose shall not violate any provision of the
line 4 California Constitution.
line 5 (B) The court may order remedies available pursuant to Section
line 6 564 of the Code of Civil Procedure, under which the agent of the
line 7 court may take all governmental actions necessary to bring the
line 8 jurisdiction’s housing element into substantial compliance pursuant
line 9 to this article in order to remedy identified deficiencies. The court
line 10 shall determine whether the housing element of the jurisdiction
line 11 substantially complies with this article and, once the court makes
line 12 that determination, it shall have the same force and effect, for all
line 13 purposes, as the department’s determination that the housing
line 14 element substantially complies with this article. An agent appointed
line 15 pursuant to this paragraph shall have expertise in planning in
line 16 California.
line 17 (4) This subdivision does not limit a court’s discretion to apply
line 18 any and all remedies in an action or special proceeding for a
line 19 violation of any law identified in subdivision (j).
line 20 (m) In determining the application of the remedies available
line 21 under subdivision (l), the court shall consider whether there are
line 22 any mitigating circumstances delaying the jurisdiction from coming
line 23 into compliance with state housing law. The court may consider
line 24 whether a city, county, or city and county is making a good faith
line 25 effort to come into substantial compliance or is facing substantial
line 26 undue hardships.
line 27 (n) Nothing in this section shall limit the authority of the office
line 28 of the Attorney General to bring a suit to enforce state law in an
line 29 independent capacity. The office of the Attorney General may seek
line 30 all remedies available under law including those set forth in this
line 31 section.
line 32 (o) Notwithstanding Sections 11040 and 11042, if the Attorney
line 33 General declines to represent the department in any action or
line 34 special proceeding brought pursuant to a notice or referral under
line 35 subdivision (j) the department may appoint or contract with other
line 36 counsel for purposes of representing the department in the action
line 37 or special proceeding.
line 38 (p) Notwithstanding any other provision of law, the statute of
line 39 limitations set forth in subdivision (a) of Section 338 of the Code
line 40 of Civil Procedure shall apply to any action or special proceeding
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line 1 brought by the office of the Attorney General or pursuant to a
line 2 notice or referral under subdivision (j), or by the department
line 3 pursuant to subdivision (o).
line 4 SEC. 2. Section 65852.21 of the Government Code is amended
line 5 to read:
line 6 65852.21. (a) A proposed housing development containing
line 7 no more than two residential units within a single-family residential
line 8 zone shall be considered ministerially, without discretionary review
line 9 or a hearing, if the proposed housing development meets all of the
line 10 following requirements:
line 11 (1) The parcel subject to the proposed housing development is
line 12 located within a city, the boundaries of which include some portion
line 13 of either an urbanized area or urban cluster, as designated by the
line 14 United States Census Bureau, or, for unincorporated areas, a legal
line 15 parcel wholly within the boundaries of an urbanized area or urban
line 16 cluster, as designated by the United States Census Bureau.
line 17 (2) The parcel satisfies the requirements specified in
line 18 subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision
line 19 (a) of Section 65913.4, as that section read on September 16, 2021.
line 20 (3) Notwithstanding any provision of this section or any local
line 21 law, the proposed housing development would not require
line 22 demolition or alteration of any of the following types of housing:
line 23 (A) Housing that is subject to a recorded covenant, ordinance,
line 24 or law that restricts rents to levels affordable to persons and
line 25 families of moderate, low, or very low income.
line 26 (B) Housing that is subject to any form of rent or price control
line 27 through a public entity’s valid exercise of its police power.
line 28 (C) Housing that has been occupied by a tenant in the last three
line 29 years.
line 30 (4) The parcel subject to the proposed housing development is
line 31 not a parcel on which an owner of residential real property has
line 32 exercised the owner’s rights under Chapter 12.75 (commencing
line 33 with Section 7060) of Division 7 of Title 1 to withdraw
line 34 accommodations from rent or lease within 15 years before the date
line 35 that the development proponent submits an application.
line 36 (5) The development is not located within a historic district or
line 37 property included on the State Historic Resources Inventory, as
line 38 defined in Section 5020.1 of the Public Resources Code, or within
line 39 a site that is designated or listed as a city or county landmark or
line 40 historic property or district pursuant to a city or county ordinance.
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line 1 (b) (1) Notwithstanding any local law and except as provided
line 2 in paragraphs (2) and (3), a local agency may impose objective
line 3 zoning standards, objective subdivision standards, and objective
line 4 design review standards that do not conflict with this section.
line 5 (2) (A) The local agency shall not impose objective zoning
line 6 standards, objective subdivision standards, and objective design
line 7 standards that would have the effect of physically precluding the
line 8 construction of up to two units or that would physically preclude
line 9 either of the two units from being at least 800 square feet in floor
line 10 area.
line 11 (B) (i) Notwithstanding subparagraph (A), no setback shall be
line 12 required for an existing structure or a structure constructed in the
line 13 same location and to the same dimensions as an existing structure.
line 14 (ii) Notwithstanding subparagraph (A), in all other circumstances
line 15 not described in clause (i), a local agency may require a setback
line 16 of up to four feet from the side and rear lot lines.
line 17 (3) A local agency shall not impose objective zoning standards,
line 18 objective subdivision standards, and objective design standards
line 19 that do not apply uniformly to development within the underlying
line 20 zone. This subdivision shall not prevent a local agency from
line 21 adopting or imposing objective zoning standards, objective
line 22 subdivision standards, and objective design standards on
line 23 development authorized by this section if those standards are more
line 24 permissive than applicable standards within the underlying zone.
line 25 (c) In addition to any conditions established in accordance with
line 26 subdivision (b), a local agency may require any of the following
line 27 conditions when considering an application for two residential
line 28 units as provided for in this section:
line 29 (1) Offstreet parking of up to one space per unit, except that a
line 30 local agency shall not impose parking requirements in either of
line 31 the following instances:
line 32 (A) The parcel is located within one-half mile walking distance
line 33 of either a high-quality transit corridor, as defined in subdivision
line 34 (b) of Section 21155 of the Public Resources Code, or a major
line 35 transit stop, as defined in Section 21064.3 of the Public Resources
line 36 Code.
line 37 (B) There is a car share vehicle located within one block of the
line 38 parcel.
line 39 (2) For residential units connected to an onsite wastewater
line 40 treatment system, a percolation test completed within the last 5
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line 1 years, or, if the percolation test has been recertified, within the last
line 2 10 years.
line 3 (d) Notwithstanding subdivision (a), a local agency may deny
line 4 a proposed housing development project if the building official
line 5 makes a written finding, based upon a preponderance of the
line 6 evidence, that the proposed housing development project would
line 7 have a specific, adverse impact, as defined and determined in
line 8 paragraph (2) of subdivision (d) of Section 65589.5, upon public
line 9 health and safety for which there is no feasible method to
line 10 satisfactorily mitigate or avoid the specific, adverse impact.
line 11 (e) A local agency shall require that a rental of any unit created
line 12 pursuant to this section be for a term longer than 30 days.
line 13 (f) Notwithstanding Section 65852.2 or 65852.22, a local agency
line 14 shall not be required to permit an accessory dwelling unit or a
line 15 junior accessory dwelling unit on parcels that use both the authority
line 16 contained within this section and the authority contained in Section
line 17 66411.7.
line 18 (g) Notwithstanding subparagraph (B) of paragraph (2) of
line 19 subdivision (b), an application shall not be rejected solely because
line 20 it proposes adjacent or connected structures provided that the
line 21 structures meet building code safety standards and are sufficient
line 22 to allow separate conveyance.
line 23 (h) (1) An application for a proposed housing development
line 24 pursuant to this section shall be considered and approved or denied
line 25 within 60 days from the date the local agency receives a completed
line 26 application. If the local agency has not approved or denied the
line 27 completed application within 60 days, the application shall be
line 28 deemed approved.
line 29 (2) If a permitting agency denies an application for a proposed
line 30 housing development pursuant to paragraph (1), the permitting
line 31 agency shall, within the time period described in paragraph (1),
line 32 return in writing a full set of comments to the applicant with a list
line 33 of items that are defective or deficient and a description of how
line 34 the application can be remedied by the applicant.
line 35 (i) Local agencies shall include units constructed pursuant to
line 36 this section in the annual housing element report as required by
line 37 subparagraph (I) of paragraph (2) of subdivision (a) of Section
line 38 65400.
line 39 (j) For purposes of this section, all of the following apply:
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line 1 (1) A housing development contains two residential units if the
line 2 development proposes no more than two new units or if it proposes
line 3 to add one new unit to one existing unit.
line 4 (2) The terms “objective zoning standards,” “objective
line 5 subdivision standards,” and “objective design review standards”
line 6 mean standards that involve no personal or subjective judgment
line 7 by a public official and are uniformly verifiable by reference to
line 8 an external and uniform benchmark or criterion available and
line 9 knowable by both the development applicant or proponent and the
line 10 public official prior to submittal. These standards may be embodied
line 11 in alternative objective land use specifications adopted by a local
line 12 agency, and may include, but are not limited to, housing overlay
line 13 zones, specific plans, inclusionary zoning ordinances, and density
line 14 bonus ordinances.
line 15 (3) “Local agency” means a city, county, or city and county,
line 16 whether general law or chartered.
line 17 (k) A local agency may adopt an ordinance to implement the
line 18 provisions of this section. An ordinance adopted to implement this
line 19 section shall not be considered a project under Division 13
line 20 (commencing with Section 21000) of the Public Resources Code.
line 21 (l) Nothing in this section shall be construed to supersede or in
line 22 any way alter or lessen the effect or application of the California
line 23 Coastal Act of 1976 (Division 20 (commencing with Section
line 24 30000) of the Public Resources Code), except that the local agency
line 25 shall not be required to hold public hearings for coastal
line 26 development permit applications for a housing development
line 27 pursuant to this section.
line 28 SECTION 1. Section 65852.21 of the Government Code is
line 29 amended to read:
line 30 65852.21. (a) A proposed housing development containing
line 31 no more than two residential units within a single-family residential
line 32 zone shall be considered ministerially, without discretionary review
line 33 or a hearing, if the proposed housing development meets all of the
line 34 following requirements:
line 35 (1) The parcel subject to the proposed housing development is
line 36 located within a city, the boundaries of which include some portion
line 37 of either an urbanized area or urban cluster, as designated by the
line 38 United States Census Bureau, or, for unincorporated areas, a legal
line 39 parcel wholly within the boundaries of an urbanized area or urban
line 40 cluster, as designated by the United States Census Bureau.
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line 1 (2) The parcel satisfies the requirements specified in
line 2 subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision
line 3 (a) of Section 65913.4. 65913.4, as that section read on September
line 4 16, 2021.
line 5 (3) Notwithstanding any provision of this section or any local
line 6 law, the proposed housing development would not require
line 7 demolition or alteration of any of the following types of housing:
line 8 (A) Housing that is subject to a recorded covenant, ordinance,
line 9 or law that restricts rents to levels affordable to persons and
line 10 families of moderate, low, or very low income.
line 11 (B) Housing that is subject to any form of rent or price control
line 12 through a public entity’s valid exercise of its police power.
line 13 (C) Housing that has been occupied by a tenant in the last three
line 14 years.
line 15 (4) The parcel subject to the proposed housing development is
line 16 not a parcel on which an owner of residential real property has
line 17 exercised the owner’s rights under Chapter 12.75 (commencing
line 18 with Section 7060) of Division 7 of Title 1 to withdraw
line 19 accommodations from rent or lease within 15 years before the date
line 20 that the development proponent submits an application.
line 21 (5) The proposed housing development does not allow the
line 22 demolition of more than 25 percent of the existing exterior
line 23 structural walls, unless the housing development meets at least
line 24 one of the following conditions:
line 25 (A) If a local ordinance so allows.
line 26 (B) The site has not been occupied by a tenant in the last three
line 27 years.
line 28 (6)
line 29 (5) The development is not located within a historic district or
line 30 property included on the State Historic Resources Inventory, as
line 31 defined in Section 5020.1 of the Public Resources Code, or within
line 32 a site that is designated or listed as a city or county landmark or
line 33 historic property or district pursuant to a city or county ordinance.
line 34 (b) (1) Notwithstanding any local law and except as provided
line 35 in paragraph (2), paragraphs (2) and (3), a local agency may
line 36 impose objective zoning standards, objective subdivision standards,
line 37 and objective design review standards that do not conflict with
line 38 this section.
line 39 (2) (A) The local agency shall not impose objective zoning
line 40 standards, objective subdivision standards, and objective design
96
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line 1 standards that would have the effect of physically precluding the
line 2 construction of up to two units or that would physically preclude
line 3 either of the two units from being at least 800 square feet in floor
line 4 area.
line 5 (B) (i) Notwithstanding subparagraph (A), no setback shall be
line 6 required for an existing structure or a structure constructed in the
line 7 same location and to the same dimensions as an existing structure.
line 8 (ii) Notwithstanding subparagraph (A), in all other circumstances
line 9 not described in clause (i), a local agency may require a setback
line 10 of up to four feet from the side and rear lot lines.
line 11 (3) A local agency shall not impose objective zoning standards,
line 12 objective subdivision standards, and objective design standards
line 13 that do not apply uniformly to development within the underlying
line 14 zone. This subdivision shall not prevent a local agency from
line 15 adopting or imposing objective zoning standards, objective
line 16 subdivision standards, and objective design standards on
line 17 development authorized by this section if those standards are more
line 18 permissive than applicable standards within the underlying zone.
line 19 (c) In addition to any conditions established in accordance with
line 20 subdivision (b), a local agency may require any of the following
line 21 conditions when considering an application for two residential
line 22 units as provided for in this section:
line 23 (1) Off-street Offstreet parking of up to one space per unit,
line 24 except that a local agency shall not impose parking requirements
line 25 in either of the following instances:
line 26 (A) The parcel is located within one-half mile walking distance
line 27 of either a high-quality transit corridor, as defined in subdivision
line 28 (b) of Section 21155 of the Public Resources Code, or a major
line 29 transit stop, as defined in Section 21064.3 of the Public Resources
line 30 Code.
line 31 (B) There is a car share vehicle located within one block of the
line 32 parcel.
line 33 (2) For residential units connected to an onsite wastewater
line 34 treatment system, a percolation test completed within the last 5
line 35 years, or, if the percolation test has been recertified, within the last
line 36 10 years.
line 37 (d) Notwithstanding subdivision (a), a local agency may deny
line 38 a proposed housing development project if the building official
line 39 makes a written finding, based upon a preponderance of the
line 40 evidence, that the proposed housing development project would
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line 1 have a specific, adverse impact, as defined and determined in
line 2 paragraph (2) of subdivision (d) of Section 65589.5, upon public
line 3 health and safety or the physical environment and for which there
line 4 is no feasible method to satisfactorily mitigate or avoid the specific,
line 5 adverse impact.
line 6 (e) A local agency shall require that a rental of any unit created
line 7 pursuant to this section be for a term longer than 30 days.
line 8 (f) Notwithstanding Article 2 (commencing with Section 66314)
line 9 or Article 3 (commencing with Section 6633) 66333) of Chapter
line 10 13. 13, a local agency shall not be required to permit an accessory
line 11 dwelling unit or a junior accessory dwelling unit on parcels that
line 12 use both the authority contained within this section and the
line 13 authority contained in Section 66411.7.
line 14 (g) Notwithstanding subparagraph (B) of paragraph (2) of
line 15 subdivision (b), an application shall not be rejected solely because
line 16 it proposes adjacent or connected structures provided that the
line 17 structures meet building code safety standards and are sufficient
line 18 to allow separate conveyance.
line 19 (h) (1) An application for a proposed housing development
line 20 pursuant to this section shall be considered and approved or denied
line 21 within 60 days from the date the local agency receives a completed
line 22 application. If the local agency has not approved or denied the
line 23 completed application within 60 days, the application shall be
line 24 deemed approved.
line 25 (2) If a permitting agency denies an application for a proposed
line 26 housing development pursuant to paragraph (1), the permitting
line 27 agency shall, within the time period described in paragraph (1),
line 28 return in writing a full set of comments to the applicant with a list
line 29 of items that are defective or deficient and a description of how
line 30 the application can be remedied by the applicant.
line 31 (h)
line 32 (i) Local agencies shall include units constructed pursuant to
line 33 this section in the annual housing element report as required by
line 34 subparagraph (I) of paragraph (2) of subdivision (a) of Section
line 35 65400.
line 36 (i)
line 37 (j) For purposes of this section, all of the following apply:
line 38 (1) A housing development contains two residential units if the
line 39 development proposes no more than two new units or if it proposes
line 40 to add one new unit to one existing unit.
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line 1 (2) The terms “objective zoning standards,” “objective
line 2 subdivision standards,” and “objective design review standards”
line 3 mean standards that involve no personal or subjective judgment
line 4 by a public official and are uniformly verifiable by reference to
line 5 an external and uniform benchmark or criterion available and
line 6 knowable by both the development applicant or proponent and the
line 7 public official prior to submittal. These standards may be embodied
line 8 in alternative objective land use specifications adopted by a local
line 9 agency, and may include, but are not limited to, housing overlay
line 10 zones, specific plans, inclusionary zoning ordinances, and density
line 11 bonus ordinances.
line 12 (3) “Local agency” means a city, county, or city and county,
line 13 whether general law or chartered.
line 14 (j)
line 15 (k) A local agency may adopt an ordinance to implement the
line 16 provisions of this section. An ordinance adopted to implement this
line 17 section shall not be considered a project under Division 13
line 18 (commencing with Section 21000) of the Public Resources Code.
line 19 (k)
line 20 (l) Nothing in this section shall be construed to supersede or in
line 21 any way alter or lessen the effect or application of the California
line 22 Coastal Act of 1976 (Division 20 (commencing with Section
line 23 30000) of the Public Resources Code), except that the local agency
line 24 shall not be required to hold public hearings for coastal
line 25 development permit applications for a housing development
line 26 pursuant to this section.
line 27 SEC. 3. Section 66411.7 of the Government Code is amended
line 28 to read:
line 29 66411.7. (a) Notwithstanding any other provision of this
line 30 division and any local law, a local agency shall ministerially
line 31 approve, as set forth in this section, a parcel map for an urban lot
line 32 split only if the local agency determines that the parcel map for
line 33 the urban lot split meets all the following requirements:
line 34 (1) The parcel map subdivides an existing parcel to create no
line 35 more than two new parcels of approximately equal lot area
line 36 provided that one parcel shall not be smaller than 40 percent of
line 37 the lot area of the original parcel proposed for subdivision.
line 38 (2) (A) Except as provided in subparagraph (B), both newly
line 39 created parcels are no smaller than 1,200 square feet.
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line 1 (B) A local agency may by ordinance adopt a smaller minimum
line 2 lot size subject to ministerial approval under this subdivision.
line 3 (3) The parcel being subdivided meets all the following
line 4 requirements:
line 5 (A) The parcel is located within a single-family residential zone.
line 6 (B) The parcel subject to the proposed urban lot split is located
line 7 within a city, the boundaries of which include some portion of
line 8 either an urbanized area or urban cluster, as designated by the
line 9 United States Census Bureau, or, for unincorporated areas, a legal
line 10 parcel wholly within the boundaries of an urbanized area or urban
line 11 cluster, as designated by the United States Census Bureau.
line 12 (C) The parcel satisfies the requirements specified in
line 13 subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision
line 14 (a) of Section 65913.4, as that section read on September 16, 2021.
line 15 (D) The proposed urban lot split would not require demolition
line 16 or alteration of any of the following types of housing:
line 17 (i) Housing that is subject to a recorded covenant, ordinance,
line 18 or law that restricts rents to levels affordable to persons and
line 19 families of moderate, low, or very low income.
line 20 (ii) Housing that is subject to any form of rent or price control
line 21 through a public entity’s valid exercise of its police power.
line 22 (iii) A parcel or parcels on which an owner of residential real
line 23 property has exercised the owner’s rights under Chapter 12.75
line 24 (commencing with Section 7060) of Division 7 of Title 1 to
line 25 withdraw accommodations from rent or lease within 15 years
line 26 before the date that the development proponent submits an
line 27 application.
line 28 (iv) Housing that has been occupied by a tenant in the last three
line 29 years.
line 30 (E) The parcel is not located within a historic district or property
line 31 included on the State Historic Resources Inventory, as defined in
line 32 Section 5020.1 of the Public Resources Code, or within a site that
line 33 is designated or listed as a city or county landmark or historic
line 34 property or district pursuant to a city or county ordinance.
line 35 (F) The parcel has not been established through prior exercise
line 36 of an urban lot split as provided for in this section.
line 37 (G) Neither the owner of the parcel being subdivided nor any
line 38 person acting in concert with the owner has previously subdivided
line 39 an adjacent parcel using an urban lot split as provided for in this
line 40 section.
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line 1 (b) An application for a parcel map for an urban lot split shall
line 2 be approved in accordance with the following requirements:
line 3 (1) (A) A local agency shall approve or deny an application for
line 4 a parcel map for an urban lot split ministerially without
line 5 discretionary review.
line 6 (B) An application for an urban lot split shall be considered and
line 7 approved or denied within 60 days from the date the local agency
line 8 receives a completed application. If the local agency has not
line 9 approved or denied the completed application within 60 days, the
line 10 application shall be deemed approved.
line 11 (C) If a permitting agency denies an application for an urban
line 12 lot split pursuant to subparagraph (B), the permitting agency shall,
line 13 within the time period described in paragraph (1), return in writing
line 14 a full set of comments to the applicant with a list of items that are
line 15 defective or deficient and a description of how the application can
line 16 be remedied by the applicant.
line 17 (2) A local agency shall approve an urban lot split only if it
line 18 conforms to all applicable objective requirements of the
line 19 Subdivision Map Act (Division 2 (commencing with Section
line 20 66410)), except as otherwise expressly provided in this section.
line 21 (3) Notwithstanding Section 66411.1, a local agency shall not
line 22 impose regulations that require dedications of rights-of-way or the
line 23 construction of offsite improvements for the parcels being created
line 24 as a condition of issuing a parcel map for an urban lot split pursuant
line 25 to this section.
line 26 (c) (1) Except as provided in paragraph (2), notwithstanding
line 27 any local law, a local agency may impose objective zoning
line 28 standards, objective subdivision standards, and objective design
line 29 review standards that are related to the design or to improvements
line 30 of a parcel, consistent with paragraph (3) of subdivision (b) and
line 31 with subdivision (e), and are applicable to a parcel created by an
line 32 urban lot split that do not conflict with this section.
line 33 (2) A local agency shall not impose objective zoning standards,
line 34 objective subdivision standards, and objective design review
line 35 standards that would have the effect of physically precluding the
line 36 construction of two units on either of the resulting parcels or that
line 37 would result in a unit size of less than 800 square feet.
line 38 (3) (A) Notwithstanding paragraph (2), no setback shall be
line 39 required for an existing structure or a structure constructed in the
line 40 same location and to the same dimensions as an existing structure.
96
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line 1 (B) Notwithstanding paragraph (2), in all other circumstances
line 2 not described in subparagraph (A), a local agency may require a
line 3 setback of up to four feet from the side and rear lot lines.
line 4 (d) Notwithstanding subdivision (a), a local agency may deny
line 5 an urban lot split if the building official makes a written finding,
line 6 based upon a preponderance of the evidence, that the proposed
line 7 housing development project would have a specific, adverse
line 8 impact, as defined and determined in paragraph (2) of subdivision
line 9 (d) of Section 65589.5, upon public health and safety and for which
line 10 there is no feasible method to satisfactorily mitigate or avoid the
line 11 specific, adverse impact.
line 12 (e) In addition to any conditions established in accordance with
line 13 this section, a local agency may require any of the following
line 14 conditions when considering an application for a parcel map for
line 15 an urban lot split:
line 16 (1) Easements required for the provision of public services and
line 17 facilities.
line 18 (2) A requirement that the parcels have access to, provide access
line 19 to, or adjoin the public right-of-way.
line 20 (3) Offstreet parking of up to one space per unit, except that a
line 21 local agency shall not impose parking requirements in either of
line 22 the following instances:
line 23 (A) The parcel is located within one-half mile walking distance
line 24 of either a high-quality transit corridor as defined in subdivision
line 25 (b) of Section 21155 of the Public Resources Code, or a major
line 26 transit stop as defined in Section 21064.3 of the Public Resources
line 27 Code.
line 28 (B) There is a car share vehicle located within one block of the
line 29 parcel.
line 30 (f) A local agency shall require that the uses allowed on a lot
line 31 created by this section be limited to residential uses.
line 32 (g) (1) A local agency shall require an applicant for an urban
line 33 lot split to sign an affidavit stating that the applicant intends to
line 34 occupy one of the housing units as their principal residence for a
line 35 minimum of three years from the date of the approval of the urban
line 36 lot split.
line 37 (2) This subdivision shall not apply to an applicant that is a
line 38 “community land trust,” as defined in clause (ii) of subparagraph
line 39 (C) of paragraph (11) of subdivision (a) of Section 402.1 of the
line 40 Revenue and Taxation Code, or is a “qualified nonprofit
96
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line 1 corporation” as described in Section 214.15 of the Revenue and
line 2 Taxation Code.
line 3 (3) A local agency shall not impose additional owner occupancy
line 4 standards, other than provided for in this subdivision, on an urban
line 5 lot split pursuant to this section.
line 6 (h) A local agency shall require that a rental of any unit created
line 7 pursuant to this section be for a term longer than 30 days.
line 8 (i) A local agency shall not require, as a condition for ministerial
line 9 approval of a parcel map application for the creation of an urban
line 10 lot split, the correction of nonconforming zoning conditions.
line 11 (j) (1) Notwithstanding any provision of Section 65852.2,
line 12 65852.21, 65852.22, 65915, or this section, a local agency shall
line 13 not be required to permit more than two units on a parcel created
line 14 through the exercise of the authority contained within this section.
line 15 (2) For the purposes of this section, “unit” means any dwelling
line 16 unit, including, but not limited to, a unit or units created pursuant
line 17 to Section 65852.21, a primary dwelling, an accessory dwelling
line 18 unit as defined in Section 65852.2, or a junior accessory dwelling
line 19 unit as defined in Section 65852.22.
line 20 (k) Notwithstanding paragraph (3) of subdivision (c), an
line 21 application shall not be rejected solely because it proposes adjacent
line 22 or connected structures provided that the structures meet building
line 23 code safety standards and are sufficient to allow separate
line 24 conveyance.
line 25 (l) Local agencies shall include the number of applications for
line 26 parcel maps for urban lot splits pursuant to this section in the
line 27 annual housing element report as required by subparagraph (I) of
line 28 paragraph (2) of subdivision (a) of Section 65400.
line 29 (m) For purposes of this section, both of the following shall
line 30 apply:
line 31 (1) “Objective zoning standards,” “objective subdivision
line 32 standards,” and “objective design review standards” mean standards
line 33 that involve no personal or subjective judgment by a public official
line 34 and are uniformly verifiable by reference to an external and
line 35 uniform benchmark or criterion available and knowable by both
line 36 the development applicant or proponent and the public official
line 37 prior to submittal. These standards may be embodied in alternative
line 38 objective land use specifications adopted by a local agency, and
line 39 may include, but are not limited to, housing overlay zones, specific
96
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line 1 plans, inclusionary zoning ordinances, and density bonus
line 2 ordinances.
line 3 (2) “Local agency” means a city, county, or city and county,
line 4 whether general law or chartered.
line 5 (n) A local agency may adopt an ordinance to implement the
line 6 provisions of this section. An ordinance adopted to implement this
line 7 section shall not be considered a project under Division 13
line 8 (commencing with Section 21000) of the Public Resources Code.
line 9 (o) Nothing in this section shall be construed to supersede or in
line 10 any way alter or lessen the effect or application of the California
line 11 Coastal Act of 1976 (Division 20 (commencing with Section
line 12 30000) of the Public Resources Code), except that the local agency
line 13 shall not be required to hold public hearings for coastal
line 14 development permit applications for urban lot splits pursuant to
line 15 this section.
line 16 SEC. 2. Section 66411.7 of the Government Code is amended
line 17 to read:
line 18 66411.7. (a) Notwithstanding any other provision of this
line 19 division and any local law, a local agency shall ministerially
line 20 approve, as set forth in this section, a parcel map for an urban lot
line 21 split only if the local agency determines that the parcel map for
line 22 the urban lot split meets all the following requirements:
line 23 (1) The parcel map subdivides an existing parcel to create no
line 24 more than two new parcels of approximately equal lot area
line 25 provided that one parcel shall not be smaller than 40 percent of
line 26 the lot area of the original parcel proposed for subdivision.
line 27 (2) (A) Except as provided in subparagraph (B), both newly
line 28 created parcels are no smaller than 1,200 square feet.
line 29 (B) A local agency may by ordinance adopt a smaller minimum
line 30 lot size subject to ministerial approval under this subdivision.
line 31 (3) The parcel being subdivided meets all the following
line 32 requirements:
line 33 (A) The parcel is located within a single-family residential zone.
line 34 (B) The parcel subject to the proposed urban lot split is located
line 35 within a city, the boundaries of which include some portion of
line 36 either an urbanized area or urban cluster, as designated by the
line 37 United States Census Bureau, or, for unincorporated areas, a legal
line 38 parcel wholly within the boundaries of an urbanized area or urban
line 39 cluster, as designated by the United States Census Bureau.
96
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line 1 (C) The parcel satisfies the requirements specified in
line 2 subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision
line 3 (a) of Section 65913.4. 65913.4, as that section read on September
line 4 16, 2021.
line 5 (D) The proposed urban lot split would not require demolition
line 6 or alteration of any of the following types of housing:
line 7 (i) Housing that is subject to a recorded covenant, ordinance,
line 8 or law that restricts rents to levels affordable to persons and
line 9 families of moderate, low, or very low income.
line 10 (ii) Housing that is subject to any form of rent or price control
line 11 through a public entity’s valid exercise of its police power.
line 12 (iii) A parcel or parcels on which an owner of residential real
line 13 property has exercised the owner’s rights under Chapter 12.75
line 14 (commencing with Section 7060) of Division 7 of Title 1 to
line 15 withdraw accommodations from rent or lease within 15 years
line 16 before the date that the development proponent submits an
line 17 application.
line 18 (iv) Housing that has been occupied by a tenant in the last three
line 19 years.
line 20 (E) The parcel is not located within a historic district or property
line 21 included on the State Historic Resources Inventory, as defined in
line 22 Section 5020.1 of the Public Resources Code, or within a site that
line 23 is designated or listed as a city or county landmark or historic
line 24 property or district pursuant to a city or county ordinance.
line 25 (F) The parcel has not been established through prior exercise
line 26 of an urban lot split as provided for in this section.
line 27 (G) Neither the owner of the parcel being subdivided nor any
line 28 person acting in concert with the owner has previously subdivided
line 29 an adjacent parcel using an urban lot split as provided for in this
line 30 section.
line 31 (b) An application for a parcel map for an urban lot split shall
line 32 be approved in accordance with the following requirements:
line 33 (1) (A) A local agency shall approve or deny an application for
line 34 a parcel map for an urban lot split ministerially without
line 35 discretionary review.
line 36 (B) An application for an urban lot split shall be considered
line 37 and approved or denied within 60 days from the date the local
line 38 agency receives a completed application. If the local agency has
line 39 not approved or denied the completed application within 60 days,
line 40 the application shall be deemed approved.
96
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line 1 (C) If a permitting agency denies an application for an urban
line 2 lot split pursuant to subparagraph (B), the permitting agency shall,
line 3 within the time period described in subparagraph (B), return in
line 4 writing a full set of comments to the applicant with a list of items
line 5 that are defective or deficient and a description of how the
line 6 application can be remedied by the applicant.
line 7 (2) A local agency shall approve an urban lot split only if it
line 8 conforms to all applicable objective requirements of the
line 9 Subdivision Map Act (Division 2 (commencing with Section
line 10 66410)), except as otherwise expressly provided in this section.
line 11 (3) Notwithstanding Section 66411.1, a local agency shall not
line 12 impose regulations that require dedications of rights-of-way or the
line 13 construction of offsite improvements for the parcels being created
line 14 as a condition of issuing a parcel map for an urban lot split pursuant
line 15 to this section.
line 16 (c) (1) Except as provided in paragraph (2), notwithstanding
line 17 any local law, a local agency may impose objective zoning
line 18 standards, objective subdivision standards, and objective design
line 19 review standards that are related to the design or to improvements
line 20 of a parcel, consistent with paragraph (3) of subdivision (b) and
line 21 with subdivision (e), and are applicable to a parcel created by an
line 22 urban lot split that do not conflict with this section.
line 23 (2) A local agency shall not impose objective zoning standards,
line 24 objective subdivision standards, and objective design review
line 25 standards that would have the effect of physically precluding the
line 26 construction of two units on either of the resulting parcels or that
line 27 would result in a unit size of less than 800 square feet.
line 28 (3) (A) Notwithstanding paragraph (2), no setback shall be
line 29 required for an existing structure or a structure constructed in the
line 30 same location and to the same dimensions as an existing structure.
line 31 (B) Notwithstanding paragraph (2), in all other circumstances
line 32 not described in subparagraph (A), a local agency may require a
line 33 setback of up to four feet from the side and rear lot lines.
line 34 (d) Notwithstanding subdivision (a), a local agency may deny
line 35 an urban lot split if the building official makes a written finding,
line 36 based upon a preponderance of the evidence, that the proposed
line 37 housing development project would have a specific, adverse
line 38 impact, as defined and determined in paragraph (2) of subdivision
line 39 (d) of Section 65589.5, upon public health and safety or the
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line 1 physical environment and for which there is no feasible method
line 2 to satisfactorily mitigate or avoid the specific, adverse impact.
line 3 (e) In addition to any conditions established in accordance with
line 4 this section, a local agency may require any of the following
line 5 conditions when considering an application for a parcel map for
line 6 an urban lot split:
line 7 (1) Easements required for the provision of public services and
line 8 facilities.
line 9 (2) A requirement that the parcels have access to, provide access
line 10 to, or adjoin the public right-of-way.
line 11 (3) Off-street Offstreet parking of up to one space per unit,
line 12 except that a local agency shall not impose parking requirements
line 13 in either of the following instances:
line 14 (A) The parcel is located within one-half mile walking distance
line 15 of either a high-quality transit corridor as defined in subdivision
line 16 (b) of Section 21155 of the Public Resources Code, or a major
line 17 transit stop as defined in Section 21064.3 of the Public Resources
line 18 Code.
line 19 (B) There is a car share vehicle located within one block of the
line 20 parcel.
line 21 (f) A local agency shall require that the uses allowed on a lot
line 22 created by this section be limited to residential uses.
line 23 (g) (1) A local agency shall require an applicant for an urban
line 24 lot split to sign an affidavit stating that the applicant intends to
line 25 occupy one of the housing units as their principal residence for a
line 26 minimum of three years from the date of the approval of the urban
line 27 lot split.
line 28 (2) This subdivision shall not apply to an applicant that is a
line 29 “community land trust,” as defined in clause (ii) of subparagraph
line 30 (C) of paragraph (11) of subdivision (a) of Section 402.1 of the
line 31 Revenue and Taxation Code, or is a “qualified nonprofit
line 32 corporation” as described in Section 214.15 of the Revenue and
line 33 Taxation Code.
line 34 (3) A local agency shall not impose additional owner occupancy
line 35 standards, other than provided for in this subdivision, on an urban
line 36 lot split pursuant to this section.
line 37 (h) A local agency shall require that a rental of any unit created
line 38 pursuant to this section be for a term longer than 30 days.
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line 1 (i) A local agency shall not require, as a condition for ministerial
line 2 approval of a parcel map application for the creation of an urban
line 3 lot split, the correction of nonconforming zoning conditions.
line 4 (j) (1) Notwithstanding any provision of Section 65852.21,
line 5 65915, Article 2 (commencing with Section 66314) or Article 3
line 6 (commencing with Section 66333) of Chapter 13 of Division 1,
line 7 or this section, a local agency shall not be required to permit more
line 8 than two units on a parcel created through the exercise of the
line 9 authority contained within this section.
line 10 (2) For the purposes of this section, “unit” means any dwelling
line 11 unit, including, but not limited to, a unit or units created pursuant
line 12 to Section 65852.21, a primary dwelling, an accessory dwelling
line 13 unit as defined in subdivision (a) of Section 66313, or a junior
line 14 accessory dwelling unit as defined in subdivision (d) of Section
line 15 66313.
line 16 (k) Notwithstanding paragraph (3) of subdivision (c), an
line 17 application shall not be rejected solely because it proposes adjacent
line 18 or connected structures provided that the structures meet building
line 19 code safety standards and are sufficient to allow separate
line 20 conveyance.
line 21 (l) Local agencies shall include the number of applications for
line 22 parcel maps for urban lot splits pursuant to this section in the
line 23 annual housing element report as required by subparagraph (I) of
line 24 paragraph (2) of subdivision (a) of Section 65400.
line 25 (m) For purposes of this section, both of the following shall
line 26 apply:
line 27 (1) “Objective zoning standards,” “objective subdivision
line 28 standards,” and “objective design review standards” mean standards
line 29 that involve no personal or subjective judgment by a public official
line 30 and are uniformly verifiable by reference to an external and
line 31 uniform benchmark or criterion available and knowable by both
line 32 the development applicant or proponent and the public official
line 33 prior to submittal. These standards may be embodied in alternative
line 34 objective land use specifications adopted by a local agency, and
line 35 may include, but are not limited to, housing overlay zones, specific
line 36 plans, inclusionary zoning ordinances, and density bonus
line 37 ordinances.
line 38 (2) “Local agency” means a city, county, or city and county,
line 39 whether general law or chartered.
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line 1 (n) A local agency may adopt an ordinance to implement the
line 2 provisions of this section. An ordinance adopted to implement this
line 3 section shall not be considered a project under Division 13
line 4 (commencing with Section 21000) of the Public Resources Code.
line 5 (o) Nothing in this section shall be construed to supersede or in
line 6 any way alter or lessen the effect or application of the California
line 7 Coastal Act of 1976 (Division 20 (commencing with Section
line 8 30000) of the Public Resources Code), except that the local agency
line 9 shall not be required to hold public hearings for coastal
line 10 development permit applications for urban lot splits pursuant to
line 11 this section.
line 12 SEC. 3. Section 4 of Chapter 162 of the Statutes of 2021 is
line 13 amended to read:
line 14 SEC. 4. (a) The Legislature finds and declares that ensuring
line 15 access to affordable housing all of the following:
line 16 (1) The state faces a housing crisis of availability and
line 17 affordability, in large part due to a severe shortage of housing.
line 18 (2) Solving the housing crisis therefore requires a multifaceted,
line 19 statewide approach which will include, but is not limited to, any
line 20 or some of the following:
line 21 (A) Encouraging an increase in the overall supply of housing.
line 22 (B) Encouraging the development of housing that is affordable
line 23 to households at all income levels.
line 24 (C) Removing barriers to housing production.
line 25 (D) Expanding homeownership opportunities.
line 26 (E) Expanding the availability of rental housing.
line 27 (b) Therefore, addressing the housing crisis and the severe
line 28 shortage of housing is a matter of statewide concern and not a
line 29 municipal affair as that term is used in Section 5 of Article XI of
line 30 the California Constitution. Therefore, Sections 1 and 2 of this act
line 31 adding Sections 65852.21 and 66411.7 to the Government Code
line 32 and Section 3 of this act amending Section 66452.6 of the
line 33 Government Code apply to all cities, including charter cities.
line 34 SEC. 4. (a) The Legislature finds and declares that the state
line 35 faces a severe housing crisis, largely due to the lack of available
line 36 housing affordable to lower income and moderate-income families.
line 37 Ensuring access to affordable housing, particularly on infill sites
line 38 that promote fair housing in high-resource areas, all of the
line 39 following:
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line 1 (1) The state faces a housing crisis of availability and
line 2 affordability, in large part due to a severe shortage of housing.
line 3 (2) Solving the housing crisis therefore requires a multifaceted,
line 4 statewide approach which will include, but is not limited to, any
line 5 or some of the following:
line 6 (A) Encouraging an increase in the overall supply of housing.
line 7 (B) Encouraging the development of housing that is affordable
line 8 to households at all income levels.
line 9 (C) Removing barriers to housing production.
line 10 (D) Expanding homeownership opportunities.
line 11 (E) Expanding the availability of rental housing.
line 12 (b) Therefore, addressing the housing crisis and the severe
line 13 shortage of housing is a matter of statewide concern and is not a
line 14 municipal affair as that term is used in Section 5 of Article XI of
line 15 the California Constitution. Therefore, Sections 2 1 and 3 2 of this
line 16 act amending Sections 65852.21 and 66411.7 of the Government
line 17 Code apply to all cities, including charter cities.
line 18 SEC. 5. No reimbursement is required by this act pursuant to
line 19 Section 6 of Article XIIIB of the California Constitution because
line 20 a local agency or school district has the authority to levy service
line 21 charges, fees, or assessments sufficient to pay for the program or
line 22 level of service mandated by this act, within the meaning of Section
line 23 17556 of the Government Code.
O
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City of Rancho Palos Verdes
John Cruikshank, Mayor
Eric Alegria, Mayor Pro Tem
David L. Bradley, Councilmember
Barbara Ferraro, Councilmember
Paul Seo, Councilmember
30940 HAWTHORNE BLVD. / RANCHO PALOS VERDES, CA 90275-5391 / (310) 544-5207 / FAX (310) 544-5291 / WWW.RPVCA.GOV
August 29, 2024
The Honorable Gavin Newsom
California Governor
1021 O Street, Suite 9000
Sacramento, CA 95814
RE: SENATE BILL 937 (WIENER) – REQUEST FOR VETO
Dear Governor Newsom,
On behalf of the City of Rancho Palos Verdes, I am writing to respectfully request your
veto on Senate Bill (SB) 937, which would prohibit a local government from requiring
payment of fees or charges for public improvements or facilities on a designated
residential development project before the development receives a certificate of
occupancy.
Development related fees pay for the costs to install infrastructure necessary to build new
homes and other developments in livable, equitable, and thriving communities. These
fees pay for critical services such as water, sewer, fire protection, parks and open space,
flood protection, libraries, and other essential needs. These fees and the infrastructure
they fund make new housing and economic development possible.
SB 937 would, among other things, for certain developments, defer development impact
fees until the certificate of occupancy or its equivalent, locks in those fees at prior to the
issuance of a building permit, and prohibit the charging on interest on those deferred fees.
The bill would also restrict local agencies from charging interest on any deferred fees.
The bill would therefore create significant fiscal challenges to local agencies and their
efforts to provide essential services and infrastructure.
The City of Rancho Palos Verdes already gives several concessions to incentivize
developers to invest in our community. Prohibiting cities from requiring impact fees until
C-1
SB 937 (Wiener)
Request for Veto
August 29, 2024
late in the development process, from charging interest on deferred fees, and transferring
risk should a project fail will further limit our ability to serve the needs of our community.
For these reasons, we respectfully request your veto on SB 937. Should you have any
questions, please contact our legislative advocate Sharon Gonsalves with Renne Public
Policy Group at 916-974-9270.
Sincerely,
John Cruikshank
Mayor
310-544-5202
John.Cruikshank@rpvca.gov
CC: The Honorable Ben Allen, Senate District 24
The Honorable Al Muratsuchi, Assembly District 66
Myles White, Deputy Legislative Secretary, Office of Governor Gavin Newsom
Rancho Palos Verdes City Council
Ara Mihranian, City Manager
Catherine Jun, Rancho Palos Verdes Deputy City Manager
C-2
AMENDED IN ASSEMBLY AUGUST 22, 2024
AMENDED IN ASSEMBLY JUNE 27, 2024
AMENDED IN ASSEMBLY JUNE 17, 2024
AMENDED IN SENATE APRIL 8, 2024
AMENDED IN SENATE APRIL 1, 2024
SENATE BILL No. 937
Introduced by Senator Wiener
(Coauthor: Assembly Member Grayson)
January 17, 2024
An act to amend Section 66007 of, and to add Section 65914.6 to, of
the Government Code, relating to land use.
legislative counsel’s digest
SB 937, as amended, Wiener. Development projects: permits and
other entitlements: fees and charges.
The Planning and Zoning Law requires each county and each city to
adopt a comprehensive, long-term general plan for its physical
development, and the development of specified land outside its
boundaries, that includes, among other mandatory elements, a housing
element. Existing law, the Permit Streamlining Act, among other things,
requires a public agency that is the lead agency for a development
project to approve or disapprove that project within specified time
periods. Existing law extended by 18 months the period for the
expiration, effectuation, or utilization of a housing entitlement, as
defined, that was issued before, and was in effect on, March 4, 2020,
and that would expire before December 31, 2021, except as specified.
Existing law provides that if the state or a local agency extended the
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otherwise applicable time for the expiration, effectuation, or utilization
of a housing entitlement for not less than 18 months, as specified, that
housing entitlement would not be extended an additional 18 months
pursuant to these provisions.
This bill would extend by 24 months the period for the expiration,
effectuation, or utilization of a housing entitlement for a designated
residential development project, as those terms are defined, that was
issued before January 1, 2024, and that will expire before December
31, 2025, except as specified. The bill would toll this 24-month
extension during any time that the housing entitlement is the subject of
a legal challenge. By adding to the duties of local officials with respect
to housing entitlements, this bill would impose a state-mandated local
program. 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 Mitigation Fee Act regulates fees for development projects, fees
for specific purposes, including water and sewer connection fees, and
fees for solar energy systems, among others. The act, among other
things, requires local agencies to comply with various conditions when
imposing fees, extractions, or charges as a condition of approval of a
proposed development or development project.
The act prohibits a local agency that imposes fees or charges on a
residential development for the construction of public improvements
or facilities from requiring the payment of those fees or charges until
the date of the final inspection or the date the certificate of occupancy
is issued, whichever occurs first, except for utility service fees, which
the local agency is authorized to collect at the time an application for
utility service is received. The act exempts specified units in a residential
development proposed by a nonprofit housing developer if the housing
development meets certain conditions.
This bill would limit the utility service fees exception described above
to utility service fees related to connections, and cap those fees at the
costs incurred by the utility provider resulting from the connection
activities. The bill would extend the above-described exemption for
those units in a residential development that meets those conditions to
any housing developer.
The act authorizes a local agency to require the payment sooner than
the date of the final inspection or the date the certificate of occupancy
is issued, whichever occurs first, if specified conditions are met,
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including if the fees or charges are to reimburse the local agency for
expenditures previously made.
This bill would, for designated residential development projects, as
defined, prohibit a local agency from requiring payment of fees or
charges on the residential development for the construction of public
improvements or facilities until the date the first certificate of occupancy
or first temporary certificate of occupancy is issued, as specified. The
bill would authorize the local agency to require the payment of those
fees or charges at an earlier time if certain conditions are met, except
as specified. For specified units, the bill would authorize a developer
to guarantee payment of certain fees or charges by posting a
performance bond or a letter of credit from a federally insured,
recognized depository institution. If the developer does not post a
performance bond or a letter of credit, the bill would authorize the city,
county, or city and county to collect certain fees or charges in
accordance with a specified procedure.
If any fee or charge described above is not fully paid prior to issuance
of a building permit, the act authorizes the local agency issuing the
building permit to require the property owner to execute a contract to
pay the fee or charge as a condition of issuance of the building permit,
as specified.
This bill would authorize the governing body of a local agency to
authorize an officer or employee of the local agency to approve and
execute contracts described above, and would require the local agency
to post a model form of contract on its internet website, if it maintains
an internet website, before requiring execution of a contract under the
provisions described above.
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 no.
State-mandated local program: yes no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 65914.6 is added to the Government
line 2 Code, to read:
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line 1 65914.6. (a) Except as provided in subdivision (b),
line 2 notwithstanding any law, including any inconsistent provision of
line 3 a local agency’s general plan, ordinances, or regulations, the
line 4 otherwise applicable time for the expiration, effectuation, or
line 5 utilization of a housing entitlement for a designated residential
line 6 development project that is within the scope of the timeframes
line 7 specified in paragraphs (1) and (2) is extended by 24 months. For
line 8 the purposes of this section, housing entitlements that are extended
line 9 are entitlements where both of the following apply:
line 10 (1) It was issued prior to and was in effect on January 1, 2024.
line 11 (2) It will expire prior to December 31, 2025.
line 12 The otherwise applicable time for the utilization of a housing
line 13 entitlement provided by this section includes any requirement to
line 14 request the issuance of a building permit within a specified period
line 15 of time.
line 16 (b) If the state or a local agency extends, on or after January 1,
line 17 2024, but before the effective date of the act adding this section,
line 18 the otherwise applicable time for the expiration, effectuation, or
line 19 utilization of a housing entitlement for not less than 24 months
line 20 and pursuant to the same conditions provided in subdivision (a),
line 21 that housing entitlement shall not be extended for an additional 24
line 22 months by operation of subdivision (a).
line 23 (c) For purposes of this section, the following definitions apply:
line 24 (1) “Designated residential development project” means a
line 25 residential development project that meets any of the following
line 26 conditions:
line 27 (A) The project dedicates 100 percent of units, exclusive of a
line 28 manager’s unit or units, to lower income households, as defined
line 29 by Section 50079.5 of the Health and Safety Code.
line 30 (B) The project meets the requirements described in Section
line 31 65662.
line 32 (C) The project is approved by a local government pursuant to
line 33 Article 2 (commencing with Section 65912.110) or Article 3
line 34 (commencing with Section 65912.120) of Chapter 4.1.
line 35 (D) The project meets the requirements described in subdivision
line 36 (a) of Section 65913.4.
line 37 (E) The project meets the criteria described in subdivision (c)
line 38 of Section 65913.16.
line 39 (F) The project is entitled to a density bonus pursuant to
line 40 subdivision (b) of Section 65915.
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line 1 (G) The project includes 10 or fewer units.
line 2 (2) “Housing entitlement” means any of the following:
line 3 (A) A legislative, adjudicative, administrative, or any other kind
line 4 of approval, permit, or other entitlement necessary for, or pertaining
line 5 to, a housing development project issued by a state agency.
line 6 (B) An approval, permit, or other entitlement issued by a local
line 7 agency for a housing development project that is subject to Chapter
line 8 4.5 (commencing with Section 65920).
line 9 (C) A ministerial approval, permit, or entitlement by a local
line 10 agency required as a prerequisite to issuance of a building permit
line 11 for a housing development project.
line 12 (D) A requirement to submit an application for a building permit
line 13 within a specified period of time after the effective date of a
line 14 housing entitlement described in subparagraph (B) or (C).
line 15 (E) A vested right associated with an approval, permit, or other
line 16 entitlement described in subparagraphs (A) to (D), inclusive.
line 17 (3) For the purposes of this section, a housing entitlement does
line 18 not include any of the following:
line 19 (A) A development agreement issued pursuant to Article 2.5
line 20 (commencing with Section 65864).
line 21 (B) An approved or conditionally approved tentative map that
line 22 is extended for a minimum of 24 months pursuant to Section
line 23 66452.6 on or after January 1, 2024.
line 24 (C) A preliminary application as defined in Section 65941.1.
line 25 (4) “Housing development project” means a residential
line 26 development or mixed-use development in which at least two-thirds
line 27 of the square footage of the development is designated for
line 28 residential use. Both of the following apply for the purposes of
line 29 calculating the square footage usage of a development for purposes
line 30 of this section:
line 31 (A) The square footage of a development shall include any
line 32 additional density, floor area, and units, and any other concession,
line 33 incentive, or waiver of development standards pursuant to Section
line 34 65915.
line 35 (B) The square footage of a development shall not include any
line 36 underground space, including, but not limited to, a basement or
line 37 underground parking garage.
line 38 (5) “Local agency” means a county, city, whether general law
line 39 or chartered, city and county, school district, special district,
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SB 937 — 5 —
D-5
line 1 authority, agency, any other municipal public corporation or
line 2 district, or other political subdivision of the state.
line 3 (d) The extension granted pursuant to subdivision (a) shall be
line 4 tolled during any time that the housing entitlement is the subject
line 5 of a legal challenge.
line 6 (e) Nothing in this section is intended to preclude a local
line 7 government from exercising its existing authority to provide an
line 8 extension to an entitlement identified in this section.
line 9 (f) The Legislature finds and declares that ensuring planned
line 10 housing projects can continue without delays due to expiring
line 11 entitlements is a matter of statewide concern and is not a municipal
line 12 affair as that term is used in Section 5 of Article XI of the
line 13 California Constitution. Therefore, this section applies to all cities,
line 14 including charter cities.
line 15 SEC. 2.
line 16 SECTION 1. Section 66007 of the Government Code is
line 17 amended to read:
line 18 66007. (a) Except as otherwise provided in subdivisions (b)
line 19 and (h), any local agency that imposes any fees or charges on a
line 20 residential development for the construction of public
line 21 improvements or facilities shall not require the payment of those
line 22 fees or charges, notwithstanding any other provision of law, until
line 23 the date of the final inspection, or the date the certificate of
line 24 occupancy is issued, whichever occurs first. However, utility
line 25 service fees related to connections may be collected at the time an
line 26 application for service is received, provided that those fees do not
line 27 exceed the costs incurred by the utility provider resulting from the
line 28 connection activities. If the residential development contains more
line 29 than one dwelling, the local agency may determine whether the
line 30 fees or charges shall be paid on a pro rata basis for each dwelling
line 31 when it receives its final inspection or certificate of occupancy,
line 32 whichever occurs first; on a pro rata basis when a certain
line 33 percentage of the dwellings have received their final inspection or
line 34 certificate of occupancy, whichever occurs first; or on a lump-sum
line 35 basis when the first dwelling in the development receives its final
line 36 inspection or certificate of occupancy, whichever occurs first.
line 37 (b) (1) Notwithstanding subdivision (a), the local agency may
line 38 require the payment of those fees or charges at an earlier time if
line 39 (A) the local agency determines that the fees or charges will be
line 40 collected for public improvements or facilities for which an account
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line 1 has been established and funds appropriated and for which the
line 2 local agency has adopted a proposed construction schedule or plan
line 3 before final inspection or issuance of the certificate of occupancy
line 4 or (B) the fees or charges are to reimburse the local agency for
line 5 expenditures previously made. “Appropriated,” as used in this
line 6 subdivision, means authorization by the governing body of the
line 7 local agency for which the fee is collected to make expenditures
line 8 and incur obligations for specific purposes.
line 9 (2) (A) Paragraph (1) does not apply to units reserved for
line 10 occupancy by lower income households included in a residential
line 11 development proposed by a nonprofit housing developer in which
line 12 at least 49 percent of the total units are reserved for occupancy by
line 13 lower income households, as defined in Section 50079.5 of the
line 14 Health and Safety Code, at an affordable rent, as defined in Section
line 15 50053 of the Health and Safety Code. In addition to the contract
line 16 that may be required under subdivision (d), a city, county, or city
line 17 and county may require the posting of a performance bond or a
line 18 letter of credit from a federally insured, recognized depository
line 19 institution to guarantee payment of any fees or charges that are
line 20 subject to this paragraph. Fees and charges exempted from
line 21 paragraph (1) under this paragraph shall become immediately due
line 22 and payable when the residential development no longer meets
line 23 the requirements of this paragraph.
line 24 (B) The exception provided in subparagraph (A) does not apply
line 25 to fees and charges levied pursuant to Chapter 6 (commencing
line 26 with Section 17620) of Part 10.5 of Division 1 of Title 1 of the
line 27 Education Code.
line 28 (c) All of the following apply to designated residential
line 29 development projects:
line 30 (1) If a local agency imposes any fees or charges on the
line 31 residential development for the construction of public
line 32 improvements or facilities, then all of the following conditions
line 33 apply:
line 34 (A) (i) Notwithstanding any other law, the local agency shall
line 35 not require the payment of those fees or charges until the date the
line 36 first certificate of occupancy or first temporary certificate of
line 37 occupancy is issued, whichever occurs first.
line 38 (ii) Notwithstanding clause (i), utility service fees related to
line 39 connections may be collected at the time an application for service
line 40 is received, provided that those fees do not exceed the costs
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SB 937 — 7 —
D-7
line 1 incurred by the utility provider resulting from the connection
line 2 activities.
line 3 (iii) Clause (i) shall not apply if construction of the residential
line 4 development does not begin within five years of the date upon
line 5 which the building permit is issued.
line 6 (B) The amount of the fees and charges shall be the same amount
line 7 as would have been paid had the fees and charges been paid prior
line 8 to the issuance of building permits, and the local agency shall not
line 9 charge interest or other fees on any amount deferred pursuant to
line 10 this paragraph.
line 11 (C) If the development contains more than one dwelling, the
line 12 local agency may determine whether the fees or charges described
line 13 shall be paid on a pro rata basis for each dwelling when it receives
line 14 its certificate of occupancy, on a pro rata basis when a certain
line 15 percentage of the dwellings have received their certificate of
line 16 occupancy, or on a lump-sum basis when all the dwellings in the
line 17 development receive their certificate of occupancy.
line 18 (D) Notwithstanding any other law, the local agency may
line 19 withhold a certificate of occupancy or a temporary certificate of
line 20 occupancy until payment of those fees or charges is received.
line 21 (2) (A) Notwithstanding paragraph (1), the local agency may
line 22 require the payment of those fees or charges at an earlier time if
line 23 (i) the either of the following conditions is met:
line 24 (i) The fees or charges are to reimburse the local agency for
line 25 expenditures previously made to the extent those expenditures have
line 26 not been paid or reimbursed by another party.
line 27 (ii) The local agency determines that the fees or charges will be
line 28 collected for public improvements or facilities for which an account
line 29 has been established and funds appropriated and for which the
line 30 local agency has adopted a proposed construction schedule or plan
line 31 prior to final inspection or issuance of the certificate of occupancy
line 32 or (ii) the fees or charges are to reimburse the local agency for
line 33 expenditures previously made. “Appropriated,” both of the
line 34 following:
line 35 (I) The fees or charges will be collected for any of the following
line 36 public improvements or facilities:
line 37 (ia) Public improvements or facilities related to providing water
line 38 service to the residential development.
line 39 (ib) Public improvements or facilities related to providing sewer
line 40 or wastewater service to the residential development.
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line 1 (ic) Public improvements or facilities related to providing fire,
line 2 public safety, and emergency services to the residential
line 3 development.
line 4 (id) Roads, sidewalks, or other public improvements or facilities
line 5 for the transportation of people that serve the development,
line 6 including the acquisition of all property, easements, and
line 7 rights-of-way that may be required to carry out the improvements
line 8 or facilities.
line 9 (ie) Construction and rehabilitation of school facilities, if a
line 10 school district has a five-year plan pursuant to subdivision (c) of
line 11 Section 17017.5 of Education Code.
line 12 (II) An account has been established and funds appropriated
line 13 for the public improvements or facilities described in subclause
line 14 (I). “Appropriated,” as used in this paragraph, subclause, means
line 15 authorization by the governing body of the local agency for which
line 16 the fee is collected to make expenditures and incur obligations for
line 17 specific purposes.
line 18 (B) (i) Subparagraph (A) does not apply to units reserved for
line 19 occupancy by lower income households included in a residential
line 20 development proposed by a nonprofit housing developer in which
line 21 at least 49 percent of the total units are reserved for occupancy by
line 22 lower income households, as defined in Section 50079.5 of the
line 23 Health and Safety Code, at an affordable rent, as defined in Section
line 24 50053 of the Health and Safety Code. In addition to the contract
line 25 that may be required under subdivision (d), a city, county, or city
line 26 and county may require the posting of a performance bond or a
line 27 letter of credit from a federally insured, recognized depository
line 28 institution to guarantee payment of any fees or charges that are
line 29 subject to this paragraph. Fees and charges exempted from
line 30 subparagraph (A) under this subparagraph shall become
line 31 immediately due and payable when the residential development
line 32 no longer meets the requirements of this subparagraph.
line 33 (ii) The exception provided in clause (i) does not apply to fees
line 34 and charges levied pursuant to Chapter 6 (commencing with
line 35 Section 17620) of Part 10.5 of Division 1 of Title 1 of the
line 36 Education Code.
line 37 (iii) (I) The developer may elect to post a performance bond
line 38 or a letter of credit from a federally insured, recognized depository
line 39 institution to guarantee payment of any fees or charges that are
line 40 subject to this subparagraph.
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line 1 (II) If the developer does not post a performance bond or letter
line 2 of credit pursuant to subclause (I), the city, county, or city and
line 3 county may collect any fees and charges subject to this
line 4 subparagraph that are not paid at the time the first certificate of
line 5 occupancy or first temporary certificate of occupancy is issued,
line 6 whichever occurs first, in accordance with the following procedure:
line 7 (ia) On or before August 10 of each year, the building official
line 8 of the local agency shall furnish in writing to the county auditor
line 9 a description of each parcel of land for which a performance bond
line 10 or letter of credit has not been posted within the local agency’s
line 11 jurisdiction upon which fees or charges are unpaid and the amount
line 12 of the unpaid fees or charges.
line 13 (ib) The amount of the unpaid fees or charges shall constitute
line 14 a lien upon the land for which the fees or charges are unpaid.
line 15 (ic) The unpaid fees or charges shall be collected in the same
line 16 manner and at the same time as county ad valorem taxes.
line 17 (id) The unpaid fees or charges shall be subject to the same
line 18 penalties, lien priority, and procedure and sale in case of
line 19 delinquency that apply to county ad valorem taxes.
line 20 (ie) All laws applicable to the levy, collection, and enforcement
line 21 of county ad valorem taxes shall be applicable to the unpaid fees
line 22 and charges.
line 23 (iv) Clause (iii) does not apply to projects that dedicate 100
line 24 percent of units, exclusive of a manager’s unit or units, to lower
line 25 income households, as defined by Section 50079.5 of the Health
line 26 and Safety Code, and have a recorded regulatory agreement with
line 27 the California Tax Credit Allocation Committee, the California
line 28 Debt Limit Allocation Committee, or the Department of Housing
line 29 and Community Development.
line 30 (3) If the local agency does not issue certificates of occupancy
line 31 for the type of residential developments described in this
line 32 subdivision, the final inspection shall serve as the certificate of
line 33 occupancy.
line 34 (4) For purposes of this subdivision, “designated residential
line 35 development project” means a residential development project that
line 36 meets any of the following conditions:
line 37 (A) The project dedicates 100 percent of units, exclusive of a
line 38 manager’s unit or units, to lower income households, as defined
line 39 by Section 50079.5 of the Health and Safety Code.
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line 1 (B) The project meets the requirements described in Section
line 2 65662.
line 3 (C) The project is approved by a local government pursuant to
line 4 Article 2 (commencing with Section 65912.110) or Article 3
line 5 (commencing with Section 65912.120) of Chapter 4.1.
line 6 (D) The project meets the requirements described in subdivision
line 7 (a) of Section 65913.4.
line 8 (E) The project meets the criteria described in subdivision (c)
line 9 of Section 65913.16.
line 10 (F) The project is entitled to a density bonus pursuant to
line 11 subdivision (b) of Section 65915.
line 12 (G) The project includes 10 or fewer units.
line 13 (d) (1) If any fee or charge specified in subdivision (a) or (c)
line 14 is not fully paid prior to issuance of a building permit for
line 15 construction of any portion of the residential development
line 16 encumbered thereby, the local agency issuing the building permit
line 17 may require the property owner, or lessee if the lessee’s interest
line 18 appears of record, as a condition of issuance of the building permit,
line 19 to execute a contract to pay the fee or charge, or applicable portion
line 20 thereof, within the time specified in subdivision (a) or (c). If the
line 21 fee or charge is prorated pursuant to subdivision (a) or (c), the
line 22 obligation under the contract shall be similarly prorated.
line 23 (2) The obligation to pay the fee or charge shall inure to the
line 24 benefit of, and be enforceable by, the local agency that imposed
line 25 the fee or charge, regardless of whether it is a party to the contract.
line 26 The contract shall contain a legal description of the property
line 27 affected, shall be recorded in the office of the county recorder of
line 28 the county and, from the date of recordation, shall constitute a lien
line 29 for the payment of the fee or charge, which shall be enforceable
line 30 against successors in interest to the property owner or lessee at the
line 31 time of issuance of the building permit. The contract shall be
line 32 recorded in the grantor-grantee index in the name of the public
line 33 agency issuing the building permit as grantee and in the name of
line 34 the property owner or lessee as grantor. The local agency shall
line 35 record a release of the obligation, containing a legal description
line 36 of the property, in the event the obligation is paid in full, or a partial
line 37 release in the event the fee or charge is prorated pursuant to
line 38 subdivision (a) or (c).
line 39 (3) The contract may require the property owner or lessee to
line 40 provide appropriate notification of the opening of any escrow for
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line 1 the sale of the property for which the building permit was issued
line 2 and to provide in the escrow instructions that the fee or charge be
line 3 paid to the local agency imposing the same from the sale proceeds
line 4 in escrow prior to disbursing proceeds to the seller.
line 5 (4) The governing body of a local agency may authorize an
line 6 officer or employee of the local agency to approve and execute
line 7 contracts under this subdivision on behalf of the local agency.
line 8 (5) Before requiring execution of a contract under this
line 9 subdivision, the local agency shall post a model form of contract
line 10 on its internet website, if it maintains an internet website.
line 11 (e) This section applies only to fees collected by a local agency
line 12 to fund the construction of public improvements or facilities. It
line 13 does not apply to fees collected to cover the cost of code
line 14 enforcement or inspection services, or to other fees collected to
line 15 pay for the cost of enforcement of local ordinances or state law.
line 16 (f) “Final inspection,” “temporary certificate of occupancy,” or
line 17 “certificate of occupancy,” as used in this section, has the same
line 18 meaning as described in Sections 305 and 307 of the Uniform
line 19 Building Code, International Conference of Building Officials,
line 20 1985 edition.
line 21 (g) Methods of complying with the requirement in subdivision
line 22 (b) that a proposed construction schedule or plan be adopted,
line 23 include, but are not limited to, (1) the adoption of the capital
line 24 improvement plan described in Section 66002, or (2) the submittal
line 25 of a five-year plan for construction and rehabilitation of school
line 26 facilities pursuant to subdivision (c) of Section 17017.5 of the
line 27 Education Code.
line 28 (h) A local agency may defer the collection of one or more fees
line 29 up to the close of escrow. This subdivision shall not apply to fees
line 30 and charges levied pursuant to Chapter 6 (commencing with
line 31 Section 17620) of Part 10.5 of Division 1 of Title 1 of the
line 32 Education Code.
line 33 SEC. 3. No reimbursement is required by this act pursuant to
line 34 Section 6 of Article XIII B of the California Constitution because
line 35 a local agency or school district has the authority to levy service
line 36 charges, fees, or assessments sufficient to pay for the program or
line 37 level of service mandated by this act, within the meaning of Section
line 38 17556 of the Government Code.
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