Housing development: streamlining.

(1) The Planning and Zoning Law, until January 1, 2026, authorizes a development proponent to submit an application for a multifamily housing development that is subject to a streamlined, ministerial approval process, as provided, and not subject to a conditional use permit, if the development satisfies specified objective planning standards. Existing law requires, among other objective planning standards, that the development be subject to a requirement mandating a minimum percentage of below market rate housing based on one of 3 specified conditions. Existing law requires, among those conditions, a development to dedicate a minimum of 10% of the total number of units to housing affordable to households making below 80% of the area median income, if the project contains more than 10 units of housing and the locality did not timely submit its latest production report to the Department of Housing and Community Development, or that production report reflects that there were fewer units of above moderate-income housing issued building permits than were required for the regional housing needs assessment cycle for that reporting period. Existing law also requires a development proponent to commit to record a land use restriction or covenant providing that any lower income housing units required pursuant to these provisions will remain affordable, as provided. This bill would modify that condition to authorize a development that is located within the San Francisco Bay area, as defined, to instead dedicate 20% of the total number of units to housing affordable to households making at or below 120% of the area median income with the average income of the units at or below 100% of the area median income, except as provided. The bill would prohibit the rent or sale price charged for those units that are dedicated to housing affordable to households between 80% and 120% of area median income from exceeding 30% of the gross income of the household. The bill would make a conforming change by expanding the above-described requirement to commit to record a land use restriction or covenant to also require such a land use restriction or covenant for moderate income housing units, as defined. The bill would provide that a development proponent may use a unit of affordable housing to satisfy the affordability requirements provided by these provisions and any other state or local affordability requirement, as provided. (2) Existing law requires that at least 23 of the square footage of a development receiving approval pursuant to these provisions must be designated for residential use. This bill would provide that "square footage," for these purposes, does not include underground space, such as basements or underground parking garages. (3) Existing law requires a local government to provide a development proponent written documentation if a development conflicts with the objective planning standards described above within specified time frames, which must include a description and explanation of the conflicts. This bill would provide that a development is consistent with objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the standards. (4) Existing law provides that approval of a development pursuant to these provisions does not expire if (A) the project includes public investment in housing affordability, beyond tax credits, and (B) 50% of the units are affordable to households making below 80% of the area median income. Existing law provides that approval of other projects pursuant to these provisions automatically expires after 3 years, except as specified. This bill would provide that the approval of projects that do not meet the criteria above remains valid for 3 years from the date of the final action establishing that approval, or from the date of a final judgment upholding that approval, except as specified. (5) Existing law prohibits a local government from adopting any requirement on the basis that the project is eligible to receive ministerial or streamlined approval pursuant to these provisions. The bill would require a local government to issue a subsequent permit, as defined, if the application substantially complies with the development as it was approved. The bill would prohibit a local government from imposing any procedure or requirement on subsequent permits that is not imposed on developments that are not approved pursuant to these provisions. (6) Existing law provides that the California Environmental Quality Act (CEQA) does not apply to an action taken by a state agency or local government to lease, convey, or encumber land owned by the local government or to provide financial assistance to a project that was approved pursuant to these provisions to be used for housing for persons and families of very low, low, or moderate income. This bill would additionally provide that CEQA does not apply to an action taken by the San Francisco Bay Area Rapid Transit District to lease, convey, or encumber land owned by the San Francisco Bay Area Rapid Transit District, or for the lease, including any decisions associated with that lease, of certain land owned by the San Francisco Bay Area Rapid Transit District, that is related to a development that was approved for streamlined approval pursuant to these provisions that is to be used for housing for persons and families of very low, low, or moderate income. The bill would additionally provide that CEQA does not apply to an action taken by a state agency, local government, or the San Francisco Bay Area Rapid Transit District to approve improvements located on land owned by the local government or the San Francisco Bay Area Rapid Transit District that are necessary to implement a project that receives approval pursuant to these provisions to be used for housing for persons and families of very low, low, or moderate income. (7) Existing law requires the objective planning standards to include a requirement that a development certify to the locality that a skilled and trained workforce will be used to complete the development, if the development meets certain standards, including that the development consists of a specified number of units that are not 100% subsidized affordable housing. Existing law defines "subsidized" to mean units that are price or rent restricted such that the units are permanently affordable to very low and lower income households. This bill would modify the definition of "subsidized" to no longer require the units to be made permanently affordable to very low and lower income households. (8) This bill would incorporate additional changes to Section 65913.4 of the Government Code proposed by SB 235 and by SB 592 to be operative only if this bill and SB 235 or SB 592, or both, are enacted and this bill is enacted last. (9) 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.