Regional transit hub districts: downtown housing developments., the official text

An act to add Section 65913.13 to the Government Code, relating to land use.

LEGISLATIVE COUNSEL'S DIGEST

The Planning and Zoning Law generally regulates local government zoning and approval of certain types of housing development projects. The law authorizes a development proponent to submit an application for a development that is subject to a prescribed ministerial approval process if the development complies with certain procedural requirements and satisfies specified objective planning standards. The law also requires a housing development project within a specified distance of a transit-oriented development stop to be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with specified requirements, as applicable.
This bill would, by July 1, 2027, require major transit cities to designate one or more regional transit hub districts and prescribe requirements for those districts, including requiring that a district make a downtown housing development an allowable use, as specified. The bill would define “downtown housing development” as a housing development project within a regional hub district that meets certain conditions, including that it meets specified labor standards. The bill would prescribe requirements for the developments, including that the developments are eligible for streamlined ministerial approval, as specified. The bill would require the California Housing Finance Agency to conduct a housing construction loan and financing study that includes specified components and deliver that study to the Legislature and specified committees by December 1, 2027, as specified. By requiring certain cities to designate regional transit hub districts and requiring streamlined ministerial approval of certain housing developments, the bill would impose a state-mandated local 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 with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
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.

The people of the State of California do enact as follows:

SECTION 1.
Section 65913.13 is added to the Government Code, to read:
65913.13.
(a) For purposes of this section:
(1) “Downtown housing development” means a housing development project within a regional transit hub district that meets all of the following conditions:
(A) It meets the standards of paragraph (8) of subdivision (a) of Section 65913.4.
(B) It has a density of at least 60 dwelling units per acre.
(C) It includes housing affordable for lower income households at the levels specified in subdivision (i) of Section 65912.157.
(D) It meets the site eligibility requirements of subdivisions (g) and (h) of Section 65912.157.
(E) It does not demolish any individually landmarked property on a local, state, or federal historic register.
(F) It is consistent with the height, noise, and safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installations Compatible Use Zones developed pursuant to Section 21675 of the Public Utilities Code.
(G) The average total area of floor space for the proposed units in the project does not exceed 1,750 net habitable square feet.
(2) “Fund” means the Downtown Revitalization Loan Fund established pursuant to subdivision (e).
(3) “Housing development project” has the same meaning as defined in Section 65589.5.
(4) “Major transit city” means a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development stops.
(5) “Regional transit hub district” means a district designated pursuant to subdivision (b).
(6) “Transit-oriented development stop” has the same meaning as defined in Section 65912.156.
(b) (1) Subject to paragraph (1) of subdivision (c), by July 1, 2027, each major transit city shall comply with the applicable of the following:
(A) A major transit city with a population of at least 400,000 and less than 1,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least 0.5 square miles.
(B) A major transit city with a population of at least 1,000,000 and less than 2,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least one square mile.
(C) A major transit city with a population of at least 2,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least 1.5 square miles.
(2) If a major transit city has not complied with paragraph (1), then the equivalent area in a uniform radius around the city’s highest ridership transit-oriented development stop shall be deemed a regional transit hub district.
(3) Subject to subdivision (c), a city that is not a major transit city may designate a regional transit hub district.
(4) A major transit city may designate multiple regional transit hub districts so long as they cumulatively meet the applicable requirement of paragraph (1).
(5) The designation of a regional transit hub district pursuant to this subdivision shall not be considered a “project” for the purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(c) (1) Each transit hub district shall meet all of the following requirements:
(A) It shall be a contiguous area of land.
(B) It shall have a land area of at least 0.25 square miles.
(C) It shall contain at least one transit-oriented development stop.
(2) (A) A regional transit hub district shall make a downtown housing development an allowable use and subject to all of the following:
(i) The city shall not set a maximum height limit lower than 150 feet.
(ii) At least 25 percent of the total area of all regional transit hub districts in a city shall allow a maximum height limit of at least 450 feet.
(iii) The city shall not set a maximum floor area ratio lower than six.
(iv) At least 25 percent of the total area of all regional hub districts in a city shall allow a maximum floor area ratio of at least 12.
(v) The city shall not set a maximum density less than 200 dwelling units per acre.
(vi) At least 25 percent of the total area of all regional hub districts in a city shall not have a maximum density limit.
(B) The city may set other objective zoning standards, objective subdivision standards, and objective design review standards related to a downtown housing development within a transit hub district that are consistent with the requirements described in subparagraph (A).
(d) Both of the following apply to a downtown housing development:
(1) It may qualify for a density bonus, incentives or concessions, waivers or reductions of development standards, or parking ratios pursuant to Section 65915 or a local density bonus program, using the requirements of this section as the base density.
(2) (A) Subject to subparagraph (B), it shall be eligible for streamlined ministerial approval pursuant to Section 65913.4.
(B) If utilizing the streamlined ministerial approval pursuant to Section 65913.4, the project shall be exempt from subdivision (a) of that section, except as follows:
(i) It shall meet the standards of paragraph (6) of that subdivision.
(ii) It shall meet the standards of paragraph (8) of that subdivision.
(C) (i) The local government shall, as a condition of streamlined ministerial approval of the development, require the development proponent to complete a phase I environmental assessment.
(ii) If a recognized environmental condition is found, the development proponent shall complete a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.
(iii) If a release of a hazardous substance is found to exist on the site, the release shall be removed or any effects of the release shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(iv) If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(e) (1) The California Housing Finance Agency shall conduct a housing construction loan and financing study that includes, but is not limited to, all of the following:
(A) An analysis of existing construction loan programs and housing construction loan programs implemented in California.
(B) An analysis of existing construction loan programs and housing construction loan programs implemented outside of California and how or whether those programs could be replicated in California.
(C) Recommendations for how a state construction loan program could function and facilitate multifamily rental and for-sale housing developments, including, but not limited to, all of the following:
(i) Housing developments serving various income levels or serving a mix of incomes, including, but not limited to, lower, moderate, and above-moderate income earners.
(ii) Housing projects of varying sizes, including, but not limited to, missing middle housing projects and large, high-rise projects with the affordability and labor standards contemplated by this section.
(iii) Housing developments in various regions of the state, including, but not limited to, downtown areas served by this section.
(D) An analysis of state resources needed to establish construction loans serving different housing projects described in subparagraph (C).
(E) An analysis of the demand for housing construction loans for a state housing construction loan program serving the projects described in subparagraph (C), including, but not limited to, investor interest and demand, interest rates, market conditions that could drive demand, and any other financial considerations
(F) An analysis of, and recommendations for, protecting the state’s and taxpayers’ financial interests.
(G) Feedback and input from interested stakeholders, including, but not limited to, housing developers, labor groups, local governments, investors, insurers, and financial institutions.
(H) Recommendations for implementation of a state construction loan program, including, but not limited to, actions that do not require legislation.
(2) The California Housing Finance Agency shall submit the study described in paragraph (1) to the Legislature, including, but not limited to, the Assembly Housing and Community Development Committee, the Assembly Local Government Committee, the Senate Local Government Committee, and the Senate Housing Committee, by December 1, 2027, in compliance with Section 9795.
(3) Pursuant to Section 10231.5, the requirement for submitting a report pursuant to this subdivision shall become inoperative on January 1, 2028.
(f) This section does not limit the applicability of any local density bonus program, incentive-based zoning program, or other ministerial development standard.
(g) The Legislature finds and declares that the statewide housing crisis is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.

SEC. 2.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.