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HomeMy WebLinkAboutItem 2b - Opposing Senate Bill 827, Transit Rich Housing Bonus Legislation DATE: March 6, 2018 TO: Honorable Mayor and City Council FROM: Dominic Lazzaretto, City Manager By: Michael Bruckner, Assistant to the City Manager SUBJECT: RESOLUTION NO. 7209 OPPOSING SENATE BILL 827, TRANSIT RICH HOUSING BONUS LEGISLATION Recommendation: Adopt SUMMARY At the February 20, 2018, City Council meeting, Mayor Amundson requested that the City Manager provide a discussion item at an upcoming City Council to oppose Senate Bill 827 - Transit Rich Housing Bonus Legislation (“SB 827”). This request was concurred by Council Members Verlato and Chandler. SB 827 exempts a development in a “transit-rich housing zone” from local ordinances that limit maximum residential density, maximum floor area ratio, and minimum parking spaces. If enacted, the bill would undermine local control of the City’s development authorities as it pertains to height limitations, density, parking requirements, and design review standards. Therefore, it is recommended that the City Council adopt Resolution No. 7209 (Attachment “A”) urging the City’s legislative delegation in Sacramento to vote NO on SB 827. BACKGROUND On January 3, 2018, State Senator Weiner introduced SB 827 (Attachment “B”). Subject to some limitations, SB 827 exempts a development in a “transit-rich housing zone”, as defined by the bill, from local ordinances that limit maximum residential density, maximum floor area ratio, and minimum parking spaces. In addition, if a City has adopted height maximums that are lower than 45 to 85 feet, depending on the transit access and urban design characteristics of the street, the developer would be allowed to build a project that exceeds height limits to accommodate additional housing units. To be clear, SB 827s application includes the following definitions: Adopt Resolution No. 7209 Opposing Senate Bill 827 - Transit Rich Housing Bonus Legislation March 6, 2018 Page 2 of 3 • High-Quality Transit Corridor – a corridor with fixed route bus service that has service intervals of no more than 15 minutes during peak commute hours. • Transit Rich Parcels – are those within ½ mile of a major transit stop of ¼ mile from a high quality transit corridor. • Statewide Concern – the provisions address a matter of statewide concern and that if enacted its provisions would apply equally to all cities and counties in this state, including charter cities. DISCUSSION If approved by the legislature and signed by Governor Brown, SB 827 would exempt development in a transit-rich housing zone from local ordinances. This would allow for by-right development without approval of the City of Arcadia, undermining local control of the City’s development authorities as it pertains to height limitations, density, parking requirements, and design review standards. The intent, according to the legislation’s author, is that in many communities, restrictive zoning – such as mandating single-family homes in areas with high quality transit – limits the number of Californians who can live near public transportation. According to the author, these zoning controls are socially exclusive, anti-urban, and in opposition to the state’s adopted climate goals. Specifically, SB 827 would undermine the City’s adopted General Plan and Housing Element. The bill allows private for-profit housing developers and transit agencies to determine housing densities, parking requirements, and design review standards within one-half mile of a major transit stop, or along a high-quality transit corridor which could be miles away from a transit stop. Under existing law, cities are already required to zone for densities at levels necessary to meet their entire Regional Housing Needs Allocation (“RHNA”). Additionally, SB 827 would provide developers a means to generate additional profits without any requirement to ensure that the additional housing is affordable. The City of Arcadia has embraced the concept of transit oriented development in several areas throughout the City, including major thoroughfares and around the City’s Gold Line stop in Downtown Arcadia. The area around the light rail station allows for higher densities and height limits than any other portion of the City. Several projects are currently under construction in Arcadia to bring new residential units at higher densities to the area around the light rail station and major corridors. In fact, in addition to the existing zoning allowances, the City is currently working on a design plan for Downtown Arcadia to permit higher densities and heights in locations that can accommodate such changes. This is a project that the City is undertaking because it is the right thing to do to address the issue, and because it takes a careful and stepwise approach to evaluating capacity rather than the “one size fits all” approach provided in SB 827. Even Adopt Resolution No. 7209 Opposing Senate Bill 827 - Transit Rich Housing Bonus Legislation March 6, 2018 Page 3 of 3 if the proposed measure perfectly fit Arcadia’s needs, it should nevertheless be opposed on the simple basis that it wholly undermines local control of land use decisions – a primary power of local government, especially charter cities such as Arcadia. If SB 827 is adopted, the City would have no control over the development pattern in its transit corridors and the Downtown area, which could significantly change the character of the City. SB 827 would provide a blanket, simplistic approach to a complicated and localized question that the City of Arcadia is already addressing. Attached to this staff report as Attachment “C” is the draft opposition letter to be signed by the Mayor. FISCAL IMPACT The financial impacts to the City, if any, are unknown at this time. While additional development may result in increased property taxes, it is not known if those increases would be offset by additional service costs or other impacts to the community from an increased density that is not fully studied prior to approval. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 7209 opposing Senate Bill 827, Transit Rich Housing Bonus Legislation; and authorize the Mayor to send a letter to the City’s legislative delegation in Sacramento to vote in opposition of said legislation. Attachments: A – Resolution No. 7209 B – Senate Bill 827 Text C – Draft Opposition Letter SENATE BILL No. 827 Introduced by Senator Wiener (Principal coauthor: Senator Skinner) (Principal coauthor: Assembly Member Ting) January 3, 2018 An act to add Section 65917.7 to the Government Code, relating to land use. legislative counsel’s digest SB 827, as introduced, Wiener. Planning and zoning: transit-rich housing bonus. The Planning and Zoning Law requires, when an applicant proposes a housing development within the jurisdiction of a local government, that the city, county, or city and county provide the developer with a density bonus and other incentives or concessions for the production of lower income housing units or for the donation of land within the development if the developer, among other things, agrees to construct a specified percentage of units for very low, low-, or moderate-income households or qualifying residents. This bill would authorize a transit-rich housing project to receive a transit-rich housing bonus. The bill would define a transit-rich housing project as a residential development project the parcels of which are all within a 1⁄2 mile radius of a major transit stop or a 1⁄4 mile radius of a high-quality transit corridor, as those terms are further defined. The bill would exempt a project awarded a housing opportunity bonus from various requirements, including maximum controls on residential density or floor area ratio, minimum automobile parking requirements, design standards that restrict the applicant’s ability to construct the maximum number of units consistent with any applicable building code, and maximum height limitations, as provided. 99 The bill would declare that its provisions address a matter of statewide concern and apply equally to all cities and counties in this state, including a charter city. By adding to the duties of local planning officials, this 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. The Legislature finds and declares that this act line 2 addresses a matter of statewide concern and shall apply equally to line 3 all cities and counties in this state, including charter cities. line 4 SEC. 2. Section 65917.7 is added to the Government Code, to line 5 read: line 6 65917.7. (a)  As used in this section, the following definitions line 7 shall apply: line 8 (1)  “Block” has the same meaning as defined in subdivision (a) line 9 of Section 5870 of the Streets and Highways Code. line 10 (2)  “High-quality transit corridor” means a corridor with fixed line 11 route bus service that has service intervals of no more than 15 line 12 minutes during peak commute hours. line 13 (3)  “Transit-rich housing project” means a residential line 14 development project the parcels of which are all within a one-half line 15 mile radius of a major transit stop or a one-quarter mile radius of line 16 a high-quality transit corridor. A project shall be deemed to be line 17 within a one-half mile radius of a major transit stop or a one-quarter line 18 mile radius of a high-quality transit corridor if both of the following line 19 apply: line 20 (A)  All parcels within the project have no more than 25 percent line 21 of their area outside of a one-half mile radius of a major transit line 22 stop or a one-quarter mile radius of a high-quality transit corridor. line 23 (B)  No more than 10 percent of the residential units or 100 units, line 24 whichever is less, of the project are outside of a one-half mile 99 — 2 —SB 827 line 1 radius of a major transit stop or a one-quarter mile radius of a line 2 high-quality transit corridor. line 3 (4)  “Major transit stop” has the same meaning as defined in line 4 Section 21064.3 of the Public Resources Code. line 5 (b)  Notwithstanding any local ordinance, general plan element, line 6 specific plan, charter, or other local law, policy, resolution, or line 7 regulation, a transit-rich housing project shall receive a transit-rich line 8 housing bonus which shall exempt the project from all of the line 9 following: line 10 (1)  Maximum controls on residential density or floor area ratio. line 11 (2)  Minimum automobile parking requirements. line 12 (3)  Any design standard that restricts the applicant’s ability to line 13 construct the maximum number of units consistent with any line 14 applicable building code. line 15 (4)  (A)  If the transit-rich housing project is within either a line 16 one-quarter mile radius of a high-quality transit corridor or within line 17 one block of a major transit stop, any maximum height limitation line 18 that is less than 85 feet, except in cases where a parcel facing a line 19 street that is less than 45 feet wide from curb to curb, in which line 20 case the maximum height shall not be less than 55 feet. If the line 21 project is exempted from the local maximum height limitation, the line 22 governing height limitation for a transit-rich housing project shall line 23 be 85 feet or 55 feet, as provided in this subparagraph. line 24 (B)  If the transit-rich housing project is within one-half mile of line 25 a major transit stop, but does not meet the criteria specified in line 26 subparagraph (A), any maximum height limitation that is less than line 27 55 feet, except in cases where a parcel facing a street that is less line 28 than 45 feet wide from curb to curb, in which case the maximum line 29 height shall not be less than 45 feet. If the project is exempted line 30 from the local maximum height limitation, the governing height line 31 limitation for a transit-rich housing project shall be 55 feet or 45 line 32 feet, as provided in this subparagraph. line 33 (C)  For purposes of this paragraph, if a parcel has street frontage line 34 on two or more different streets, the height maximum pursuant to line 35 this paragraph shall be based on the widest street. line 36 SEC. 3. No reimbursement is required by this act pursuant to line 37 Section 6 of Article XIIIB of the California Constitution because line 38 a local agency or school district has the authority to levy service line 39 charges, fees, or assessments sufficient to pay for the program or 99 SB 827— 3 — line 1 level of service mandated by this act, within the meaning of Section line 2 17556 of the Government Code. O 99 — 4 —SB 827 [Date] [Name] [Title] [Address] [Address] RE: Opposition Letter to SB 827 – Erosion of Local Control Dear [Name] The City of Arcadia opposes SB 827 (Wiener), which would exempt certain housing projects from locally developed and adopted height limitations, densities, parking requirements, and design review standards. Under California’s constitution, charter cities are granted exclusive authority over municipal affairs, which include zoning and housing regulations. Increasingly, the California Legislature is pre-empting our home rule by including provisions in laws that compel us to do the bidding of the state, or tie our hands completely under the guise that the matter is of statewide concern. This is nothing short of legislative overreach. Specifically, SB 827 would undermine locally adopted General Plans, Housing Elements. SB 827 allows private for-profit housing developers and transit agencies to determine housing densities, parking requirements, and design review standards within one-half mile of a “major transit stop,” or along a “high-quality transit corridor” which could be miles away from an actual bus stop. Under existing law, cities are already required to zone for densities at levels necessary to meet their entire Regional Housing Needs Allocation (RHNA). Additionally, SB 827 would provide developers a means to generate additional profits without any requirement to build affordable housing. Exempting large-scale developments from General Plans, Housing Elements, and zoning ordinances goes against the principles of local democracy and public engagement. Public hearings allow members of the community to inform their representative of their support or concerns when planning documents are developed. Public engagement also often leads to better projects. Disregarding such processes will increase public distrust in government and could lead to additional ballot measures dealing with growth management. For these reasons, the City of Arcadia opposes SB 827 and urges you to vote NO. Sincerely, Peter Amundson Mayor