Office conversion projects.

The Planning and Zoning Law requires the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city that includes, among other mandatory elements, a housing element. Under that law, supportive housing, as defined, is a use by right in zones where multifamily and mixed uses are permitted if the developer provides the planning agency with a plan for providing supportive services and the proposed housing development meets specified criteria. 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 does not apply to the approval of ministerial projects. This bill would make an office conversion project, as defined, that meets certain requirements a use by right in all areas regardless of zoning. The bill would define "office conversion project" to mean the conversion of a building used for office purposes or a vacant office building into residential dwelling units. The bill would define "use by right" to mean that the city or county's review of the office conversion may not require a conditional use permit, planned unit development permit, or other discretionary city or county review or approval that would constitute a "project" for purposes of CEQA, as specified. By requiring the approval of housing crisis projects as a use by right, the bill would expand the exemption for approval of ministerial projects under CEQA. This bill would exempt an office conversion project from impact fees, as defined, that are not directly related to the conversion of an office building into residential dwelling units. The bill would allow the proponent of an office conversion project to pay applicable impact fees over a 10-year period, subject to specified requirements. This bill would authorize a local government to adopt an ordinance to implement these provisions and specify the process and requirements applicable to office conversion projects, provided that the ordinance is consistent with, and does not inhibit the objectives of the bill. By imposing new duties on local governments in reviewing and approving office conversion projects, the bill would impose a state-mandated local program. This bill would, upon appropriation of the Legislature, require the Department of Housing and Community Development to establish a program that awards funding to office conversion projects that are eligible as a use by right, as described above. The bill would establish the Office to Housing Conversion Fund, and provide that the moneys in the fund are to be made available to the department for purposes of the program. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.