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HomeMy WebLinkAboutAgenda Report - April 5, 2017 C-13TM CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: MEETING DATE: PREPARED BY: AGENDA ITEM C13 Receive Report Regarding Communication Pertaining to Senate Bill 540 (Roth) — Workforce Housing Opportunity Zone April 5, 2017 City Clerk RECOMMENDED ACTION: BACKGROUND INFORMATION: Receive report regarding communication pertaining to Senate Bill 540 (Roth) — Workforce Housing Opportunity Zone. The City received a request for communication from the League of California Cities regarding SB 540 (Roth). There was a need to send a letter of support immediately in light of a pending hearing. SB 540 would streamline the housing approval process by having cities identify Workforce Housing Opportunity Zones and complete up -front planning focused on workforce and affordable housing in areas close to jobs and transit and that conform to California's greenhouse gas reduction laws. The City of Lodi acknowledges that a growing number of Californians are experiencing the trouble of finding an affordable place to live. Many cities are grappling with this reality; however, in the current landscape, many affordable housing projects do not "pencil -out" and the authority of cities to enforce inclusionary housing policies has been weakened by the courts. Contributing to the housing affordability and supply challenge is the lag in private market housing construction and the elimination of State affordable -housing funding. Of course, there are also costly and time -intensive, yet critical, project reviews that can hinder some project developments and reduce affordability. Where appropriate, these processes should be streamlined. SB 540 meets this urgent need for affordable housing by requiring 30 percent of units to be available to moderate -income, 15 percent available to low-income, and 5 percent to very -low-income households. SB 540 also acknowledges the realities facing local governments and the development community by appropriately streamlining the permit approval process, by requiring up -front planning and environmental reviews, and clearly identifying all project -specific mitigation measures. After planning completion, a local government cannot deny projects consistent with the adopted plan and mitigation measures. SB 540 preserves local control and public input while setting the stage for streamlined housing approvals. The attached letter, signed by the Mayor, was sent out on March 20, 2017. The request for support and text of the bill are also attached. This report is provided for informational purposes only, pursuant to policy FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. 111-klivlaicr&d J,i ifer M. F aiolo City Clerk APPROVED: t-waba Manager NAAdministration SB 540.doc CITY COUNCIL DOUG KUEHNE, Mayor ALAN NAKANISHI, Mayor Pro Tempore MARK CHANDLER BOB JOHNSON JOANNE MOUNCE CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6702 / FAX (209) 333-6807 www.lodi.gov cityclerk@lodi.gov March 20, 2017 The Honorable Richard D. Roth California State Senate State Capitol, Room 4034 Sacramento, CA 95814 VIA FAX: 916-651-4931 STEPHEN SCHWABAUER City Manager JENNIFER M. FERRAIOLO City Clerk JANICE D. MAGDICH City Attorney RE: Senate Bill 540 (Roth) — Workforce Housing Opportunity Zone (WHOZ) — SUPPORT The City of Lodi is pleased to support your SB 540 (Roth), which would streamline the housing approval process by having cities identify Workforce Housing Opportunity Zones and complete up -front planning focused on workforce and affordable housing in areas close to jobs and transit, and that conform to California's greenhouse gas reduction laws. The City of Lodi acknowledges that a growing number of Californians are experiencing the trouble of finding an affordable place to live. Many cities are grappling with this reality; however, in the current landscape, many affordable housing projects do not "pencil -out" and the authority of cities to enforce inclusionary housing policies has been weakened by the courts. Contributing to the housing affordability and supply challenge is the lag in private market housing construction and the elimination of State affordable - housing funding. Of course, there are also costly and time -intensive, yet critical, project reviews that can hinder some project developments and reduce affordability. Where appropriate, these processes should be streamlined. SB 540 meets this urgent need for affordable housing by requiring 30 percent of units to be available to moderate -income, 15 percent available to low-income, and 5 percent to very -low-income households. SB 540 also acknowledges the realities facing local governments and the development community by appropriately streamlining the permit approval process, by requiring up -front planning and environmental reviews, and clearly identifying all project -specific mitigation measures. After planning completion, a local government cannot deny projects consistent with the adopted plan and mitigation measures. SB 540 preserves local control and public input while setting the stage for streamlined housing approvals. For these reasons, the City of Lodi supports your SB 540. Sincerely, /4/ Do«9 Riceitwe Doug Kuehne Mayor, City of Lodi cc: Senator Cathleen Galgiani, Fax: (916) 651-4905 Assemblymember Jim Cooper, Fax: (916) 319-2109 Stephen Qualls, squalls@cacities.org Meg Desmond, League of California Cities ACTION ALERT!! SUPPORT SB 540 (Roth) Workforce Housing Opportunity Zone OPPOSE SB 35 (Wiener) By Right Housing Approvals The League is supporting a number of important housing measures, including SB 540 (Roth) which would streamline the housing approval process by conducting all needed environmental reviews and public engagement on the front end to reduce delays and uncertainty when proposed projects are consistent with those plans. Ensuring local planning requirements and environmental mitigation measures are identified early would streamline the approval process to facilitate more housing construction. The League opposes SB 35 (Wiener) which would pre-empt local discretionary land use authority, eliminate opportunities for public review, exclude project -level environmental review, and remove local parking requirements. SUPPORT SB 540 (Roth) is supported by the League and aims to streamline housing approvals and construction. One challenge local developers face is complying with the California Environmental Quality Act (CEQA), which can be a lengthy process that creates delays and uncertainty. Under SB 540, cities and counties could identify priority housing areas within a community where enhanced planning, necessary environmental reviews and public engagement would occur at the front end. By focusing on workforce and affordable housing in areas close to jobs and transit, the additional streamlined process would encourage developers to propose projects that address affordable housing needs and climate protection goals. Funding to support the up -front planning would come from a revolving state loan fund available to local governments. Loans would be repaid when development occurs. Local elected leaders are acutely aware of the severity of California's housing affordability crisis and our role in fashioning solutions. While numerous factors are contributing to the problem, it is agreed that more needs to be done to create a path for and incentivize new housing construction. The League strongly supports SB 540 and believes that it strikes the right balance between streamlining the housing approval process and protecting environmental review and public participation in local land use decisions. OPPOSE SB 35 (Wiener) pre-empts local discretionary land use approvals of multifamily housing developments and accessory dwelling units by having all such approvals be considered "ministerial." Under SB 35, a ministerial permit approval eliminates opportunities for public review, excludes project -level environmental review, and removes local parking requirements. Eliminating opportunities for public review of these major development projects goes against the principles of local democracy and public engagement. While it may be frustrating for some developers to hear concerns about traffic, parking and other development impacts, those affected by such projects have a right to be heard. Not having such outlets will increase public distrust in government. ACTION #1: SB 540 (Roth) will likely receive its first hearing in the Senate Transportation & Housing Committee on March 21, 2017. SB 540 will also go to Governance & Finance and Environmental Quality Committees in the coming weeks. If you have a Senator on any of these committees, please send in your CITY LETTERS of SUPPORT and urge their AYE vote on SB 540. Please send your letter via fax (sample letter attached) or may be sent through the League's Action Center. F SENATE TRANSPORTATION AND HOUSING Member District Party Room Phone Pm Fax 111 Allen, Ben 26 D 5072 916 651 4026 916 651 4926 Atkins, Toni 39 D 4072 916 651 4039 916 651 4939 Bates, Patricia 36 R 4048 916 651 4036 916 651 4936 Beall, Jim (Chair) 15 D 2082 916 651 4015 916 651 4915 Cannella, Anthony (Vice -Chair) 12 R 5082 916 651 4012 916 651 4912 Gaines, Ted 1 R 3076 916 651 4001 916 651 4901 McGuire, Mike 2 D 5061 916 651 4002 916 651 4902 Mendoza, Tony 32 D 5100 916 651 4032 916 651 4932 Morrell, Mike 23 R 3056 916 651 4023 916 651 4923 Roth, Richard 31 D 4034 916 651 4031 916 651 4931 Skinner, Nancy 9 D 2059 916 651 4009 916 651 4909 Wieckowski, Bob 10 D 4085 916 651 4010 916 651 4910 (Wiener, Scott I 11 I D I 4070 I 916 651 4011 916 651 4911 SENATE GOVERNANCE AND FINANCE ir -• Member I District I Party I Room I Phone ` Fax Beall, Jim 15 D 2082 916 651 4015 916 651 4915 Hernandez, Ed 22 D 2080 916 651 4022 916 651 4922 Hertzberg, Bob 18 D 4038 916 651 4018 916 651 4918 Lara, Ricardo 33 D 5050 916 651 4033 916 651 4933 McGuire, Mike (Chair) 2 D 5061 916 651 4002 916 651 4902 Moorlach, John 37 R 2048 916 651 4037 916 651 4937 I Nguyen, Janet (Vice -Chair) 34 I R 1 3048 916 651 4034 916 651 4934 SENATE ENVIRONMENTAL QUALITY 1 1 Member District Party Room Phone A L Fax A. Bates, Patricia 36 R 4048 916 651 4036 916 651 4936 Hill, Jerry 13 D 5035 916 651 4013 916 651 4913 Lara, Ricardo 33 D 5050 916 651 4033 916 651 4933 Skinner, Nancy 9 D 2059 916 651 4009 916 651 4909 Stern, Henry 27 D 3070 916 651 4027 916 651 4927 Stone, Jeff (Vice -Chair) 28 R 4062 916 651 4028 916 651 4928 IWieckowski, Bob (Chair) 1 10 1 D I 4085 1 916 651 4010 1 916 651 4910 ACTION #2: SB 35 (Wiener) has not been set for its second hearing as of 3/13/17. However, it is likely that it will be heard by March 22, 2017 in the Governance and Finance Committee. If you have a Senator on this committee, please send a letter indicating your city's opposition as soon as possible. Send your letters via fax (sample letter attached) or may be sent through the League's Action Center. Legislator addresses and fax numbers can be searched online by address. SUPPORT SB 540 Talking Points: • We support SB 540 by Senator Richard Roth to streamline the approval process to help kick-start workforce and affordable housing construction. • Under SB 540, cities and counties could identify priority housing areas within a community where enhanced planning, necessary environmental reviews and public engagement would occur at the front-end. • Housing developments within these planned areas can proceed in an expedited manner. Because the local government has fully conducted the necessary environmental reviews, no additional project -specific environmental reviews shall be needed. • Importantly, SB 540 helps streamline housing project approvals without compromising local control or the rights of citizens to participate in local land -use decisions. • The League is also supporting a long list of legislation that would increase funding for affordable housing, incentivize local governments to approve housing, and help fund the supporting infrastructure. • Many have been critical of local governments for the lack of construction in our communities. Some of these criticisms are fair, but many ignore the realities of the private housing market, the limited funding for affordable housing and the conditions that encourage or discourage new housing development. • There is much that we can do together this year to create a blueprint to new housing construction. Our city and the League of California Cities and its other member cities stand ready to be part of responsible solutions. OPPOSE SB 35 Talking Points: • We must oppose SB 35, which would pre-empt local discretionary land use approvals of multifamily housing developments and accessory dwelling units. • By having all such approvals "ministerial" actions, SB 35 would allow these housing projects to proceed despite inadequate criteria, no opportunity for public engagement, no project -level environmental review, and no ability for cities to impose local parking requirements. • Eliminating opportunities for public review of these major development projects goes against the principles of local democracy and public engagement. • It may be frustrating for some developers to hear concerns about traffic, parking and other development impacts, those affected by such projects have a right to be heard. Not having such outlets will increase public distrust in government. • SB 35 is based on RHNA goals yet RHNA is simply a housing planning goal — not a production mandate. • This proposal undermines basic democracy and the ability of local citizens to have a voice in the shape of development in our communities. • Mention recent projects your community has approved and how community input and design review may have made them better. • Explain how your community will react to being cut out of the public process on these developments. • Mention the status of your community's General Plan. Has it been recently updated, or does it contain sufficient detail to ensure that projects proposed in a by right format will meet community standards? SENATE BILL No. 540 Introduced by Senator Roth February 16, 2017 An act to add Article 10.10 (commencing with Section 65620) to Chapter 3 of Division 1 of Title 7 of the Government Code, relating to land use. LEGISLATIVE COUNSEL'S DIGEST SB 540, as introduced, Roth. Workforce Housing Opportunity Zone. The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. Existing law provides for various reforms and incentives intended to facilitate and expedite the construction of affordable housing. 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 (EIR) 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 authorize a local government, as defined, to establish a Workforce Housing Opportunity Zone by preparing an EIR pursuant to CEQA and adopting a specific plan that is required to include text and a diagram or diagrams containing specified information. The bill would require a local government that proposes to adopt a Workforce 99 SB 540 — 2 — Housing Opportunity Zone to hold public hearings on the specific plan. The bill would authorize a local government, after a specific plan is adopted and the zone is formed, to impose a specific plan fee upon all persons seeking governmental approvals within the zone. The bill would require a local government to comply with certain requirements when amending the specific plan for the zone, including seeking a new EIR. The bill would require a local government to notify the county auditor within 60 days after establishing a zone, and to notify the county auditor of the number of housing units added to the zone, as provided. The bill would authorize a local government to apply for a no -interest loan from the Office of Planning and Research to support its efforts to develop a specific plan and accompanying EIR within the zone. The bill would require the Office of Planning and Research, by July 1, 2018, to develop a process whereby a local government may apply for a loan of that nature. The bill, upon appropriation by the Legislature, would authorize a transfer from the Controller to the Governor's Office of Planning and Research for purposes of establishing this loan program. The bill would prohibit a local government, for a period of 5 years after the plan is adopted, from denying any development that is proposed within the area of the zone if that development satisfies certain criteria, unless the local government makes certain findings. The bill would provide that, after the zone is adopted, a lead agency is not required to prepare an EIR or negative declaration for a housing development that occurs within the zone if specified criteria are met. The bill would require a local government to approve, or disapprove, a housing development located within the zone within 60 days after the application for that development is deemed complete. The Planning and Zoning Law requires a planning agency, after a legislative body has adopted all or part of a general plan, to provide an annual report to the legislative body, the Office of Planning and Research, and the Depai tuient of Housing and Community Development on the status of the general plan and progress in meeting the community's share of regional housing needs. This bill would require a local government that has formed a Workforce Housing Opportunity Zone to include within this report the number of housing units approved within a zone that complies with specified criteria. Vote: majority. Appropriation: no. Fiscal committee: yes. State -mandated local program: no. 99 — 3 — SB 540 The people of the State of California do enact as follows: 1 SECTION 1. The Legislature finds and declares all of the 2 following: 3 (a) Increasing the supply of affordable housing requires a 4 commitment by both the state and local government agencies. 5 Local government agencies can make this commitment by setting 6 the land use stage for development of workforce housing through 7 advanced planning and environmental review. The state can make 8 this commitment by contributing financial assistance for advanced 9 planning and matching local agencies' financial contributions to 10 promote and encourage affordable housing. 11 (b) Providing incentives for local agencies to create Workforce 12 Housing Opportunity Zones in areas that need additional housing 13 close to employment centers and available transit supports the 14 attainment of the state's housing and greenhouse gas reduction 15 goals. Limitations on the amount of property tax revenues produced 16 by housing, particularly affordable housing, mean there is often 17 an imbalance between the revenue produced and the cost of 18 infrastructure and services needed by the housing. 19 (c) Providing additional certainty in the housing development 20 approval process requires advanced planning, which, among other 21 elements, identifies standards and criteria by which development 22 will proceed and standards for the mitigation of the environmental 23 impacts of the housing development. The purpose of creating a 24 Workforce Housing Opportunity Zone is to conduct this type of 25 advanced planning, so that housing and other development within 26 the zone can proceed on the affected parcels in an expedited 27 manner. A state -administered revolving loan fund will support 28 these advanced planning efforts. 29 SEC. 2. Article 10.10 (commencing with Section 65620) is 30 added to Chapter 3 of Division 1 of Title 7 of the Government 31 Code, to read: 32 33 Article 10.10. Workforce Housing Opportunity Zone 34 35 65620. For purposes of this article, the following terms shall 36 have the following meanings: 37 (a) "Housing development" or "development" means new or 38 substantially rehabilitated residential dwelling units constructed 99 SB 540 — 4 — 1 within a Workforce Housing Opportunity Zone. A residential 2 project may include commercial development limited to the first 3 floor of the structure and occupying not more than 50 percent of 4 the square foot area of the structure in which it is located. 5 (b) "Local government" means city, county, or city and county. 6 (c) "Workforce Housing Opportunity Zone" or "zone" means 7 an area of contiguous or noncontiguous parcels identified on a city 8 or county's inventory of land suitable for residential development 9 pursuant to paragraph (3) of subdivision (a) of Section 65583 10 established pursuant to Section 65621. Development within a zone 11 must be consistent with the general use designation, density, 12 building intensity, and applicable policies specified for the area in 13 either a sustainable communities strategy or an alternative planning 14 strategy, for which the State Air Resources Board, pursuant to 15 subparagraph (H) of paragraph (2) of subdivision (b) of Section 16 65080, has accepted a metropolitan planning organization's 17 determination that the sustainable communities strategy or the 18 alternative planning strategy would, if implemented, achieve the 19 greenhouse gas emission reduction targets. 20 65621. (a) A local government may establish a Workforce 21 Housing Opportunity Zone by preparing an environmental impact 22 report pursuant to Division 13 (commencing with Section 21155) 23 of the Public Resources Code to identify and mitigate, to the extent 24 feasible, environmental impacts resulting from the establishment 25 of that zone, and by adopting a specific plan that shall include text 26 and a diagram or diagrams that specify all of the following in 27 detail: 28 (1) The distribution and location of a minimum of 100 units to 29 a maximum of 1,500 residential dwelling units. If a local 30 government whose regional housing needs allocation is less than 31 one hundred units chooses to establish a Workforce Housing 32 Opportunity Zone, then it shall include its entire allocation in the 33 zone. 34 (2) The proposed distribution, location, and extent and intensity 35 of major components of public and private transportation, sewage, 36 water, drainage, solid waste, disposal, energy, and other essential 37 facilities needed to support the construction of the residential 38 dwelling units. Essential facilities may include improvements 39 needed to K-12 schools that serve areas within the zone. 99 — 5 — SB 540 1 (3) The following mitigation measures that will apply to all 2 development constructed within the zone in addition to any and 3 all mitigation measures identified in the environmental impact 4 report prepared for the specific plan: 5 (A) Traffic mitigation measures. 6 (B) Water quality and other public utility mitigation measures, 7 including sewage, drainage, solid waste disposal, and energy. 8 (C) Natural resource protection mitigation measures. 9 (4) Density ranges for multifamily housing for which the 10 minimum densities shall not be less than those deemed appropriate 11 to accommodate housing for lower income households as set forth 12 in subparagraph (B) of paragraph (3) of subdivision (c) of Section 13 65583.2, and a density range for single-family attached or detached 14 housing for which minimum densities shall not be less than 10 15 units to the acre. A density range shall provide the minimum 16 dwelling units per acre and the maximum dwelling units per acre. 17 (5) Uniformly applied development policies or standards that 18 will apply to all development constructed within the zone, including 19 parking ordinances, public access requirements, grading ordinances, 20 hillside development ordinances, flood plain ordinances, habitat 21 or conservation ordinances, view protection ordinances, and 22 requirements for reducing greenhouse gas emissions. 23 (6) The manner in which funding will be provided for the 24 infrastructure and services necessary for the development within 25 the zone, which may include an Enhanced Infrastructure Financing 26 District or a Community Revitalization and Investment Authority. 27 (7) Design review standards. 28 (b) Before beginning the formal environmental evaluation of 29 the specific plan, the planning commission and the legislative body 30 of the local government shall each hold a public hearing to hear 31 oral, and receive written, comments about a draft of the specific 32 plan. There shall be a minimum of 30 days between the public 33 hearings. The planning commission may recommend modifications 34 of the draft to the legislative body. At the conclusion of the public 35 hearing, the legislative body of the local government shall direct 36 that formal environmental evaluation of the specific plan proceed 37 in accordance with the modified draft. 38 (c) (1) If the local government has a planning commission 39 authorized by local ordinance or resolution to review and 40 recommend action on a proposed general plan, the commission 99 SB 540 — 6 — 1 shall hold at least one public hearing before approving a 2 recommendation on the adoption of a specific plan pursuant to this 3 subdivision. The local government shall provide the notice of the 4 hearing pursuant to Section 65090 and paragraphs (1) and (3) of 5 subdivision (a) of Section 65091. 6 (2) The legislative body of the local government shall hold at 7 least two public hearings to consider the planning commission's 8 recommendation and any and all public testimony. There shall be 9 a minimum of 30 days between the public hearings to allow 10 sufficient time to modify the plan in response to the public 11 testimony as directed by the legislative body. The local government 12 shall provide the notice of the hearing pursuant to Section 65090 13 and paragraphs (1) and (3) of subdivision (a) of Section 65091. 14 (d) The local government shall provide notice of the public 15 hearings required by subdivisions (b) and (c) pursuant to Section 16 65091, including notice to owners of real property within the zone 17 and each owner of real property within 300 feet of the real property 18 within the zone. 19 (e) The legislative body of the local government, after adopting 20 the plan, may impose a specific plan fee upon persons seeking 21 government approvals within a zone. The fees shall be established 22 to defray the cost of preparation, adoption, and administration of 23 the plan, including costs incurred pursuant to Division 13 24 (commencing with Section 21000) of the Public Resources Code. 25 As nearly as can be estimated, the fee charged shall be a prorated 26 amount in accordance with the applicant's relative benefit derived 27 from the plan. The local government shall use the fees to offset its 28 costs and to reimburse funds borrowed from the Office of Planning 29 and Research pursuant to Section 65624. 30 65622. (a) (1) Before a date that is no later than five years 31 from the date the specific plan is adopted pursuant to subdivision 32 (b) or when the specific plan is amended pursuant to this 33 subdivision, a local government shall complete the analysis 34 required by Section 15162 of Chapter 3 of Division 6 of Title 14 35 of the California Code of Regulations and shall consider whether 36 any amendments are required to the specific plan for the zone. The 37 local government shall amend the specific plan to take into account 38 new information about a physical condition on a parcel within the 39 zone that affects the development capacity of the parcel pursuant 40 to the specific plan. 99 — 7 — SB 540 1 (2) The local government shall hold a public hearing noticed in 2 accordance with the requirements of Section 65091 to consider 3 amendments and readoption of the specific plan. The amendment 4 or readoption of the specific plan shall begin a new five-year period 5 for purposes of Section 65623. 6 (b) (1) Within 60 days of adopting a plan pursuant to Section 7 65621, a local government shall notify the county auditor that it 8 has established a Workforce Housing Opportunity Zone. 9 (2) Beginning on April 1, 2018, and thereafter on August 1 and 10 April 1 of each fiscal year, the local government shall notify the 11 county auditor of the number of housing units approved within the 12 zone that comply with the criteria in subdivision (b) of Section 13 65623. 14 65623. (a) For a period of five years from the adoption of the 15 specific plan pursuant to Section 65621, a local government may 16 not deny a development that satisfies all of the criteria listed in 17 paragraphs (3) to (6), inclusive, of subdivision (a) of Section 65621 18 in effect at the time the application for the development is deemed 19 complete, unless the local government finds, based upon substantial 20 evidence in the record of the public hearing on the project, that a 21 physical condition on the site of the development that was not 22 known and could not have been known with reasonable 23 investigation at the time the specific plan was prepared would have 24 a specific, adverse impact upon the public health or safety, and 25 there is no feasible method to satisfactorily mitigate or avoid the 26 specific adverse impact without rendering the development 27 unaffordable to low-, moderate-, and middle-income households. 28 As used in this subdivision, "specific, adverse impact" means a 29 significant, quantifiable, direct, and unavoidable impact, based on 30 objective, identified written public health or safety standards, 31 policies, or conditions as they existed on the date the application 32 was deemed complete. 33 (b) After the adoption of the zone pursuant to Section 65621, a 34 lead agency is not required to prepare an environmental impact 35 report or negative environmental declaration for a housing 36 development that satisfies all of the following criteria: 37 (1) The development is located on land within a Workforce 38 Housing Opportunity Zone. 39 (2) The development is consistent with the plan adopted pursuant 40 to subdivision (a) of Section 65621, including the density ranges 99 SB 540 — 8 — 1 established pursuant to paragraph (4) of subdivision (a) of Section 2 65621. If a development is not consistent with the elements and 3 standards in the plan, then the provisions of this section shall not 4 apply and the city or county shall consider the application as it 5 would an application for development that is not within the zone, 6 including the preparation of an environmental impact report or a 7 negative declaration for the housing development. 8 (3) At least 30 percent of the total units constructed or 9 substantially rehabilitated in the zone will be sold or rented to 10 persons and families of moderate income, as defined by Section 11 50093 of the Health and Safety Code, or persons and families of 12 middle income, as defined in Section 65008; at least 15 percent 13 of the total units constructed or substantially rehabilitated in the 14 zone will be sold or rented to lower income households, as defined 15 by Section 50079.5 of the Health and Safety Code; and at least 5 16 percent of the total units constructed or substantially rehabilitated 17 in the zone will be restricted for a term of 55 years for very low 18 income households, as defined by Section 50105 of the Health and 19 Safety Code. 20 The developer shall provide sufficient legal commitments to 21 ensure continued availability of units for very low, low-income, 22 moderate-, or middle-income households in accordance with the 23 provisions of this subdivision for 55 years for rental units and 45 24 years for owner -occupied units. 25 (4) The development has incorporated each of the mitigation 26 measures adopted pursuant to paragraph (3) of subdivision (a) of 27 Section 65621 and deemed applicable by the city, county, or city 28 and county. 29 (5) The development has incorporated each of the uniformly 30 applied development standards adopted pursuant to paragraph (5) 31 of subdivision (a) of Section 65621 and deemed applicable by the 32 city, county, or city and county. 33 (6) The development complies with the design review standards 34 adopted pursuant to paragraph (7) of subdivision (a) of Section 35 65621 and deemed applicable by the city, county, or city and 36 county. 37 (7) The development has incorporated each of the mitigation 38 measures adopted as part of the environmental impact report for 39 the specific plan and deemed applicable by the city, county or city 40 and county. 99 — 9 — SB 540 1 (c) A local government shall approve or disapprove a housing 2 development proposed within the zone that is consistent with the 3 plan within 90 days of the date the application is deemed complete 4 pursuant to the Permit Streamlining Act (Chapter 4.5 (commencing 5 with Section 65920)). 6 65624. (a) On or before July 1, 2018, the Office of Planning 7 and Research shall establish a process pursuant to which a city, 8 county, or city and county may submit an application to receive a 9 no -interest loan to support its efforts to develop a specific plan 10 and accompanying environmental impact report within a Workforce 11 Housing Opportunity Zone established pursuant to this article. 12 (b) A local government shall explain as part of its application, 13 to the satisfaction of the Office of Planning and Research, the 14 source of funding that will be used to repay the loan. A local 15 government may include as one source of funding a fee imposed 16 on a developer within the zone as provided in subdivision (e) of 17 Section 65621. 18 65625. A local government shall include within its annual 19 report provided pursuant to Section 65400 the number of housing 20 units approved within a zone that comply with the criteria in 21 subdivision (b) of Section 65623 during the previous fiscal year. 22 SEC. 3. Upon appropriation by the Legislature, moneys shall 23 be disbursed from the Controller to the Governor's Office of 24 Planning and Research to be used to issue loans to support the 25 development of specific plans and environmental analyses for 26 housing development within a Workforce Housing Opportunity 27 Zone pursuant to Article 10.10 (commencing with Section 65621) 28 of Chapter 3 of Division 1 of Title 7 of the Government Code. 0 99