Housing development: incentives.

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 the objective planning standards to include, among other things, that the development be located in a jurisdiction for which the department determines that the number of units that have been issued building permits is less than the local agency's share of the regional housing needs, by income category, for the applicable reporting period. This bill would, until January 1, 2035, provide specified financial incentives that ensure financial feasibility to a development proponent of a residential housing development in the 9-county San Francisco Bay area region that dedicates at least 20% of the development's housing units to households making no more than 150% of the area median income. The incentives provided to those developments include an exemption from the California Environmental Quality Act, a density bonus of 35%, a waiver of local parking requirements, and a waiver of physical building requirements imposed on development by the local agency, such as green building standards. The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. This bill would require a development proponent to submit a request to the local agency on a project proforma that documents the necessity of the requested incentives to make the development financially feasible. The bill would require the Department of Housing and Community Development to develop a list of market conditions to be included in the project proforma and to be considered by the local agency and a methodology for the local agency to evaluate and determine whether the requested financial incentives are necessary to ensure that the development is financially feasible. The bill would require the department to develop a process for a local agency to contract with a qualified development expert to review a project proforma. The bill would require local agencies to report all housing units created pursuant to these provisions to the department, and would require the department to adopt guidelines for local agencies to increase the concessions and incentives as needed to assure the financial feasibility and accelerated production of housing units. This bill would require a development subject to these provisions to be subject to a 12-month discretionary review period that may consist of no more than 2 public hearings. The bill would require a local agency to notify the development proponent in writing if the local agency determines that the development conflicts with any of the requirements provided for these incentives. The bill would allow a local agency to impose conditions of approval on a development if specified conditions are met. This bill would apply only to a residential development project on a site that is zoned for residential development, located in an urban area, as defined, and not located within a historic district, coastal zone, very high fire hazard severity zone, or flood plain. The bill would not apply to developments that would require the demolition of specified types of affordable housing. The bill would require a development subject to these provisions to comply with specified prevailing wage and skilled and trained workforce requirements. This bill would include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities within the San Francisco Bay area, including charter cities. This bill would make legislative findings and declarations as to the necessity of a special statute for the San Francisco Bay Area. By requiring local agencies to provide specified financial incentives to eligible housing developments, 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.