HomeMy WebLinkAboutStaff Report 3.K 08/07/2017Agenda Item #3.K
DATE: August 7, 2017
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Sue Castellucci, Housing Administrator
SUBJECT: Resolution Opposing Senate Bill 35
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Opposing Senate Bill 35
(Wiener), and sign the attached letter.
BACKGROUND
The Governor's May 2016 Budget Revise included a trailer bill proposing changes to state law
aimed at streamlining certain local housing proposals. The trailer bill did not pass. SB 35, titled
the Housing Accountability and Affordability Act and introduced by Senator Wiener, is similar
to the trailer bill legislation. SB 35 would force cities that haven't met all their state - mandated
Regional Housing Need Allocations to give by -right approval to infill market -rate housing
projects with as little as 10% of affordable housing. To be eligible for by -right approval, a
proposed housing development would need to:
• Conform to existing General Plan policies and zoning rules.
• Be multifamily housing.
• Be infill housing and zoned for residential use or residential mixed -use development.
• Meet affordability requirements
o Provide minimum of 10% of housing units at prices affordable to households
malting 80% of the area medium income, including at least 5% of the total
number of units affordable to households making below 50% of the area median
income.
• Avoid sites designated as prime farm land, wetlands, or a hazardous waste site nor within
a very high fire hazard area, an earthquake fault zone, or a flood plain.
• Pay prevailing wage be paid to workers.
DISCUSSION
SB 35 pre -empts local discretionary land use approvals of proposed projects eligible for by -right
approval, by malting the approvals for such projects "ministerial" actions. This means
eliminating opportunities for public review, project -level environmental review and restricting
design review.
With respect to Petaluma's State - mandated Regional Housing Needs Allocation (RHNA) for
2015 -2023, the City has done a good job of meeting targets, but has not fulfilled our RHNA
numbers in all income categories, particularly in the Very Low and Low income (0 -80% of
Average Median Income). As such, Petaluma would be subjected to the process proscribed by
SB 35, for projects that meet the criteria.
Petaluma has implemented its inclusionary housing program through flexibility and developing
partnerships with developers and nonprofits to leverage opportunities for affordable housing.
This collaborative approach has resulted in 34 affordable housing developments totaling 1,526
units (18.5% of all units built since 1985). In all instances, project review by staff, design review
and environmental review by appointed bodies, and active community engagement improved on
projects as originally proposed, and resulted in successful projects. Petaluma is currently
working with three separate development proposals which are incorporating affordable housing
on -site which will result in 75 additional affordable units.
A draft letter of opposition is attached for the City Council's consideration and signatures.
FINANCIAL IMPACTS
None associated with the recommended action.
ATTACHMENTS
1. Resolution
2. Draft Letter
2
ATTACHMENT I
RESOLUTION OPPOSING SENATE BILL 35
WHEREAS, Senate Bill 35 (Wiener) proposes to change state law to streamline certain
local housing proposals; and
WHEREAS, the proposal requires only by -right approval for housing projects that meet
certain conditions; and
WHEREAS, cities and counties would not be allowed to require any type of
discretionary approval process for qualifying housing projects; and
WHEREAS, SB 35 pre -empts local discretionary land use approvals of specified
housing developments by having all such approvals be considered "ministerial' actions, meaning
eliminating opportunities for public review, project -level environmental review (CEQA) and
restricting design review; and
WHEREAS, Petaluma has implemented its inclusionary housing program through
flexibility and developing partnerships with developers and nonprofits to leverage opportunities
for affordable housing; and
WHEREAS, this collaborative approach has resulted in 34 affordable housing
developments totaling 1,526 units (18.5% of all units built since 1985); and
WHEREAS, in all instances, project review by staff, design review and environmental
review by appointed bodies, and active community engagement improved and resulted in
successful projects.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma opposes Senate Bill 35.
ATTACHMENT 2
August 8, 2017
The Honorable Kevin de Le6n
President Pro Tempore
California State Senate
State Capitol Building, Room 205
Sacramento, CA 95814
VIA FAX: 916- 651 -4924
The Honorable Anthony Rendon
Speaker, California State Assembly
State Capitol Building, Room 219
Sacramento, CA 95814
VIA FAX: 916 - 319 -2163
RE: SB 35 (Wiener) Affordable Housing: Streamlined Approval Process
Notice of Opposition (as amended 7114117)
Dear Honorable Chairs de Le6n and Rendon:
The City Council of the City of Petaluma opposes Senate Bill 35(Wiener). The bill, as currently
drafted, would pre -empt local discretionary land use approvals for eligible housing development
proposals by making the approvals for such projects "ministerial" actions. This means eliminating
opportunities for public review, project -level environmental review and restricting design review.
SB 35 has been characterized as a measure targeting "bad actor" jurisdictions that fail to approve
enough housing to meet their Regional Housing Needs Allocation (RHNA) in all four income
categories. However, SB 35 ignores that state and federal affordable housing funding have slowed
to a trickle. More than $1 billion annually in affordable housing money was lost when
redevelopment agencies were dissolved in 2011. Funds from the 2006 state housing bond are
exhausted and federal dollars have been declining for decades. This massive withdraw of
resources has contributed to the current challenges, yet no significant source of ongoing affordable
housing funding is on the horizon.
Petaluma has implemented its inclusionary housing program through flexibility and developing
partnerships with developers and nonprofits to leverage opportunities for affordable housing. This
collaborative approach has resulted in 34 affordable housing developments totaling 1,526 units
(18.5% of all units built since 1985). In all instances, project review by staff, design review and
environmental review by appointed bodies, and active community engagement improved on
projects as originally proposed, and resulted in successful projects.
Petaluma's General Plan was adopted in 2008 and its Housing Element was updated and certified
by the Department of Housing and Community Development in 2015. As is the case with most
General Plans/Housing Elements, they are policy documents designed to guide the future
N
development.of the community. They are not however, detailed documents that ensure projects
proposed in a by right format will meet community standards and expectations.
Forcing communities with a population over 2,500 to "streamline" housing approvals by
eliminating opportunities for environmental and public review of major multifamily developments
goes against the principles of local democracy and public engagement. While the housing these
projects provide is undeniably necessary, they raise neighborhood concerns about traffic, parking
and other impacts, and those directly affected by such projects have a right to be heard.
At a minimum, SB 35 should be amended to provide a "Safe Harbor" for "Good Actor/Pro-
Housing" jurisdictions that:
• Have not violated the State's housing laws in the last five years;
• Approved all submitted housing projects that have been submitted on sites identified in its
Housing Element inventory:
• Have not reduced density of housing projects below density as submitted by developer on
initial application:
• Have implemented the programs in its Housing Element in accordance with schedule in the
Housing Element;
• Have completed any rezonings required by Housing Element within 2 years of adoption of
Housing Element; and
• Can demonstrate that it did not receive applications for housing units that would have
allowed it to issue building permits equal to the City's share of RHNA by income category
for that reporting period.
For the foregoing reasons, the City Council of the City of Petaluma respectfully opposes this
legislation.
Sincerely,
David Glass Teresa Barrett Chris Albertson
Mayor Vice Mayor Councilmember
Mike Healy
Councilmember
Gabe Kearney Dave King Kathy Miller
Councilmember Councilmember Councilmember
cc: Senator Bill Dodd, (via e -mail: senator.dodd @senate.ca.gov)
State Assembly Member Marc Levine (via e-mail: marc.levine @asm.ca.gov)
Nancy, Bennett, Regional Public Affairs Manager, League of California Cities, (via e -mail: nbennett @cacities.org)
Meg Desmond, League of California Cities, mdesmond @cacities.org