BILL NUMBER: SB 511	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 28, 2015
	AMENDED IN SENATE  APRIL 13, 2015

INTRODUCED BY   Senator Nguyen

                        FEBRUARY 26, 2015

   An act to amend  and repeal  Section 65584.6 of the
Government Code, relating to land use.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 511, as amended, Nguyen. Housing element: affordable housing:
County of Orange.
   The Planning and Zoning Law requires each city, county, or city
and county to prepare and adopt a general plan for its jurisdiction
that contains certain mandatory elements, including a housing
element. That law requires the housing element to, among other
things, identify the existing and projected housing needs of all
economic segments of the community and to include an assessment of
housing needs and an inventory of resources and constraints relevant
to the meeting of those needs.
   Existing law authorizes the County of Napa to, until June 30,
2007, meet up to 15% of its existing share of the regional housing
need for lower income households, as defined, by committing funds for
the purpose of constructing affordable housing units in one or more
cities within the county, if specified conditions are met.
   This bill would recast these provisions and instead authorize the
County of Orange to meet up to 15% of its existing share of the
regional housing need for lower income households, as defined, by
committing funds for the purpose of constructing affordable housing
units in one or more cities within the county, if specified
conditions are met.  The bill would repeal these provisions as of
October 31, 2021. 
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the County of Orange.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 65584.6 of the Government Code is amended to
read:
   65584.6.  (a) The County of Orange may, during its current and
subsequent housing element planning periods, identified in Section
65588, meet up to 15 percent of its existing share of the regional
housing need for lower income households, as defined in subdivision
(e) of Section 65584, by committing funds for the purpose of
constructing affordable lower income housing units, and constructing
those units in one or more cities within the county, only after all
of the following conditions are met:
   (1) An agreement has been executed between the county and the
receiving city or cities, following a public hearing held by the
county and the receiving city or cities to solicit public comments on
the draft agreement. The agreement shall contain information
sufficient to demonstrate that the county and city or cities have
complied with the requirements of this section and shall also include
the following:
   (A) A plan and schedule for timely construction of dwelling units.

   (B) Site identification by street address for the units to be
developed.
   (C) A statement either that the sites upon which the units will be
developed were identified in the receiving city's housing element as
potential sites for the development of housing for lower income
households, or that the units will be developed on previously
unidentified sites.
   (D) The number and percentage of the county's lower income housing
needs previously transferred to the receiving city or cities, for
the appropriate planning period, pursuant to this section.
   (E) The number and percentage of the county's lower income housing
needs that will be transferred to the receiving city or cities, for
the appropriate planning period, pursuant to this section. The number
and percentage of the county's lower income housing needs that will
be transferred to the receiving city or cities shall be equal to the
percentage of a project's total development costs that are financed
with county funds.
   (2) The council of governments that assigned the county's share
receives and approves each proposed agreement to meet a portion of
the county's fair share housing allocation within one or more of the
cities within the county after taking into consideration the criteria
of subdivision (a) of Section 65584. If the council of governments
fails to take action to approve the agreement between the county and
the receiving city or cities within 45 days following the receipt of
the agreement, the agreement shall be deemed approved.
   (3) The city or cities in which the units are developed agree not
to count the units towards their share of the region's affordable
housing need.
   (4) The county and the receiving city or cities, based on
substantial evidence on the record, make the following findings:
   (A) Adequate sites with appropriate zoning exist in the receiving
city or cities to accommodate the units to be developed pursuant to
this section. The agreement shall demonstrate that the city or cities
have identified sufficient vacant or underutilized or vacant and
underutilized sites in their housing elements to meet their existing
share of regional housing need, as allocated by the council of
governments pursuant to subdivision (b) of Section  65584.
  65584, in addition to the sites needed to construct
the units pursuant to this section. 
   (B) If needed, additional subsidy or financing for the
construction of the units is available.
   (C) The receiving city or cities have housing elements that have
been found by the Department of Housing and Community Development to
be in compliance with this article. 
   (5) If the sites upon which units are to be developed pursuant to
this section were previously identified in the receiving city's
housing element as potential sites for the development of housing
sufficient to accommodate the receiving city's share of the lower
income household need identified in its housing element, then the
receiving city shall have amended its housing element to identify
replacement sites by street address for housing for lower income
households. Additionally, the Department of Housing and Community
Development shall have received and reviewed the amendment and found
that the city's housing element continues to comply with this
article.  
   (5) 
    (6)  The county and receiving city or cities shall have
completed, and provided to the department, the annual report required
by paragraph (2) of subdivision (a) of Section 65400. 
   (6) 
    (7)  For a period of five years after a transfer occurs,
the report required by paragraph (2) of subdivision (a) of Section
65400 shall include information on the status of transferred units,
implementation of the terms and conditions of the transfer agreement,
and information on any dwelling units actually constructed,
including the number, type, location, and affordability requirements.

   (8) The receiving city demonstrates that it has met, in the
current or previous housing element cycle, at least 20 percent of its
share of the regional need for housing for very low income
households allocated to the city pursuant to Section 65584. 
   (b)  The credit that the county receives pursuant to this
section shall not exceed 40 percent of the number of units that are
affordable to lower income households and constructed and occupied
during the same housing element cycle in unincorporated areas of the
county.  The county shall only receive the credit after the
units have been constructed and occupied. Within 60 days of issuance
of a certificate of occupancy for the units, the county shall inform
the council of governments and the department in writing that a
certificate of occupancy has been issued.
   (c) Concurrent with the review by the council of governments
prescribed by this section, the Department of Housing and Community
Development shall evaluate the agreement to determine whether the
city or cities are in substantial compliance with this section. The
department shall report the results of its evaluation to the county
and city or cities for inclusion in their record of compliance with
this section.
   (d) If at the end of the five-year period identified in
subdivision (c) of Section 65583, any percentage of the regional
share allocation has not been constructed as provided pursuant to
subdivision (a), or, after consultation with the department, the
council of governments determines that the requirements of 
paragraph (6)   paragraphs (5) and (7)  of
subdivision (a) have not been substantially complied with, the
council of governments shall add the unbuilt units to the county's
regional share allocation for the planning period of the next
periodic update of the housing element. 
   (e) This section shall remain in effect only until October 31,
2021, and as of that date is repealed. 
  SEC. 2.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the unique circumstances that exist with respect to the
County of Orange that justify the enactment of this act, as
recognized in existing law permitting the transfer of housing funds
to cities by the County of Orange in Section 33334.2a of the Health
and Safety Code. The County of Orange has a policy, consistent with
state law, of encouraging annexation and incorporation of already
developed areas so as to minimize the role of the county as a
provider of municipal services. This policy has resulted in a
shrinking unincorporated area within the County of Orange that is
available and suitable for development of lower income housing. In
addition, the county's housing funds have decreased by 80 percent
since the elimination of redevelopment and large decreases in federal
affordable housing funds. This act is necessary to support the
continuation of the County of Orange's function as a regional lender
while also leveraging limited resources in cities and the county to
maximize the number of low-income housing units built in the County
of Orange.