Planning Commission to Hear Update on Affordable Housing Laws

In an information item, the city’s Planning Commission will receive an update on state law related to the preservation of affordable housing.

“The affordable housing crisis in California, and across the nation, has prompted municipalities and non-profit organizations alike to explore the preservation of ‘naturally occurring affordable housing” (NOAH), which is also described as “filtered” housing,” according to a city staff report.

NOAH is rental housing that is at least two decades old, short on amenities, and below market rate without subsidy.

NOAH properties are often in need of repairs and renovations.

But these housing properties oftentimes become market rate housing once repairs are done.

“Affordable housing preservation programs and policies aim to facilitate rehabilitation and preservation of housing units with minimal displacement, and provide tenants with updated residences while remaining affordable,” according to the staff report.

In 2018, California ranked 49th out of the 50 states in housing units per capita. Seven of the 10 most expensive real estate markets in the United States are in California.

The agenda item contains information on three laws, SB 8, SB 330 and AB 2222.

AB 2222, passed in 2014,  requires very low and low-income units that qualified an applicant for density bonus, be kept affordable for 55 years or longer.

The bill also prohibits an applicant from receiving a density bonus unless the proposed housing development would provide at least the same number of units of equivalent size or type, or both, to be made available for rent at affordable housing costs to, and occupied by, persons and families in the same or lower income category as those households in occupancy.

This restriction would only apply to units subject to certain affordability requirements that were occupied by qualifying persons on the date of application.

The bill also addresses applicants who wish to convert rental apartments into condominiums.

The bill prohibits an applicant from receiving a density bonus unless the proposed condominium project would replace the existing affordable units with at least the same number of affordable units of equivalent size or type, or both.

SB 330 aims to increase residential unit development, protect existing housing inventory, and expedite permit processing.

The bill, signed in 2019, accomplishes this by suspending certain restrictions on the development of new housing until January 21, 2025 by working with local governments to expedite the permitting of housing in regions suffering the worst housing shortages and highest rates of displacement.

This law makes modifications to existing legislation, such as the Permit Streamlining Act and the Housing Accountability Act.

Other provisions included in the bill aimed at addressing the housing crisis include:

• Preventing local governments from downzoning unless they upzone an equivalent amount elsewhere within their boundaries.

•  Suspending the enactment of local downzoning and housing construction moratoriums.

•   Requiring timely processing of housing permits that follow zoning rules.

•   Ensuring the demolition of housing does not result in a net loss of units.

•   Postponing requirements for voter approval of zoning, general plan changes.

•   Requiring resettlement benefits and first right of refusal in new units or compensation for rehousing for renters who may be displaced.

SB 8 extends the provisions in 330 to 2030.

The meeting begins at 6:30 p.m. on Wednesday and can be viewed at https://us02web.zoom.us/j/81551324337