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HomeMy WebLinkAboutMINUTES - 03122002 - C18 TO: ~ BOARD OF SUPERVISORS0411 E .— CONTRA FROM: Jahn Sweeten, County Administrator .'va COSTA DATE: March 12, 20022. r . COUNTY SUBJECT: SS 1495 (Torlakson) - Sponsor SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RMC II ENDAT'IONLSl SPONSOR SB 1495 (Torlakson), which would amend the grantcriteria for the Jobs-Housing Balance Improvement Program to take into account incorporations and annexations as well as the impact of smart growth policies and general plan amendments. BACKGROUNC31R A CtN'S FOR RECO11�END T1QN S . The 2002 County Legislative islative Program includes the following platform position: Sponsor legislation or pursue a regulatory amendment to ensure Contra Costa eligibility for Job&Housing Balance Improvement Program incentive payments. The Jobs-Housing Balance Improvement Program is designed to reward jurisdictions whose current housing permits are at least 12% higher than the average number issued by the jurisdiction between 1997-2000. Centra Costa County cannot hope ;to achieve this level of housing production for several reasons: 1) the benchmark three--year period was an unusually active housing growth cycle in the unincorporated areas of the County; 2) a number of developable tracts have recently been annexed by`cities, thereby reducing the amount of developable property residing in unincorporated territory over which the County has building permit authority, and 3) the County, a leader in planning for smart growth, has adopted a general plan with defined urban growth boundaries, which has also limited the available space for new development. CONTINUED ON ATTACHMENT: _>0-YES SIGNATURE: _ RECOMMENDATION Of COUNTY ADMINISTRATOR' RECOMMENDATION F MMITTE'E APPROVE OTHER SIGNATURE{S): ACTION OP SO " maren I z, APPROVED AS RECOMMENDED 2L OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS(ASSENT Nave ) TRUE AND CORRECT COPY OF AN AYES: NOESACTION TAKEN AND ENTERED ASSENT: ABSTAIN; ON MINUTES Of THE BOARD Of SUPERVISORS ON THE DATE SHOWN. Contact: Saga Hoffman,335.1090 ATTESTED_.March;,12- 2()Q2 JOHN SWEETEN,CLERIC OF Cc; CAO THE BOARD OF SUPERVISORS � DCO ItSSTATOR' Dermis Barry,Community Oovampment J�tY�j aaa BY', DEPuIY BACKGRC) NQ/REASON FOR RECOMMEND TKA dant' SB 1495 (Tortakson) rectifies this inequity by adjusting the calculations for increased building permits to take into account incorporations and annexations. In addition, it amends the funding criteria to include the impact of locally adopted smart growth policies and general plan amendments that provide for multifamily housing. At this time, the Jobs-Housing Balance Improvement Program is not funded by the state. There will be no immediate financial benefit to the County. However, if and when, the program is funded, the County will be able to compete equitably with other jurisdictions for available resources. SENATE BILL No. 1495 Introduced by Senator Tortakson February 19,2002 An act to amend Section 50544 of the Health and Safety Code, relating to the Jabs-Housing Balance Improvement Program. LEGISLATIVE cOUNSEUS DIGEST SB 1495,as introduced;Torlakson. Balancing jobs and growth. (1) The Jobs-Housing Balance Improvement Program requires the Department of Housingand Community Development to award incentive grants to cities,counties,and city and counties to be used for any project,''service,or other local meed determined by the city,county, or city and county to be in the community's best interest from specified` funds transferred and appropriated pursuant to the Budget Act of 2000 and the Budget Act'of2001,as well as fiords appropriated thereafter for these purposes.To be eligible for,a grant,a local government is required to have a demonstrable and significant increase in the issuance of residential building permits issued between January 1 and December 31 of a prescribed allocation reporting year over the average number of building permits issued annually for the most recent 36-month period' that can be calculated prier to the allocation reporting year. This bill would require,with respect to a county,the calculation for the 36-month period prior to the allocation reporting year to be adjusted for incorporations and annexations. (2) The program requires the department to establish a benchmark level to be achieved in order to establish eligibility for funding based: on criteria including a surrey of economic forecasts to be conducted by the Department of Finance. SB 1435 —2— This -2—This bill would require the department also to base the benchmark level upon the impact of locally adopted smart-growth policies and general plan amendments that provide for multifamily housing. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:no. Thepeople of the State of California do enact as, ollows. I SECTION 1. The Legislature finds:and declares all of the 2 following: 3 (a) 12000;the State of California enacted the Jobs-Housing 4 Balance Improvement Program, designed to stimulate housing 5 production consistent with sustaining long-term economic 6 prosperity and environmental quality 7 (b) The incentives to local jurisdictions to provide that housing 8 should reflectthe opportunities of the,jurisdiction as well as 9 constraints. 10 (c) For counties,the land available for housing can be reduced 11 substantially by annexations and incorporations. 12 (d) Implementation of smart-growth policies that are reflected 13 in a jurisdiction's general plan also should be recognized as 14 f rthhering the purposes' of the Jobs-Housing°' Balance 15 Improvement Program,to ensure that housing is located close to 16 available jobs,existing services,and infrastructure. 17 SEC. 2. Section 50544 of the Health and Safety Code is 18 amended to read: 19 50544. (a) One hundred million dollars ($100,000,000) of 20 the funds transferred for purposes of this chapter in Item 21 2240-114-0001 of the Budget Act of 2000,any fiends transferred 22 in Item 2240-114-0001 and appropriated pursuant to Item. 23 2240-114-3006 in the Budget ,Act of 20D], and any funds 24 appropriated thereafter for the purposes of this section shall be 25 used to award incentive grants to cities,r counties, and city and 26 counties to be used for any project, service, or other local need 27 determined by the city, county, or city and county to be in the 28 community's best interest. Grants shall be provided through a 29 grant agreement that requires the recipient to provide to the 30 department a report on the number of residential.building permits 31 issued during the reporting period,the number of certificates of 32 occupancy issued for those units,'and the services provided or 3 SB 11495 1 amenities purchased or built. The department may operate this 2 program through at least one annual allocation. In addition, 3 because housing production may be affected by economic factors 4 during the course of any allocation year,the department may,if it 5 deems necessary,reasonably adjust incentive criteria to meet the 6 intent of this section and allow funding to remain available for 7 subsequent annual funding cycles upon expenditure authorization 8 by the Legislature. 9 (b) To be eligible for a grant pursuant to this section, a local 10 government shall do both of the following: 11 (1) By the end of the calendar year in which unit production is 12 to be counted (hereafter referred to as "allocation reporting 13 year"),have an adopted housing element that the department has 14 determined pursuant to Section 65585 of the Government Code to 15 be in substantial compliance with the requirements of Article 10.6 16 (commencing with Section 65580)of Chapter 3 of Division 1 of 17 Title 7 of the Government Code, 18 (2) Have a demonstrable and significant increase in the 19 issuance of residential building permits issued between January'1 20 and December 31 of the allo€mtition reporting year over the average 21 number of building permits issued annually for the most recent 22 36-month period that can be calculated prior to the allocation 23 reporting year. With respect to a county, this calculation shall be 24 adjusted for incorporations and annexations. The department 25 shall establish a benchmark level to be achieved in order to 26 establish eligibility for funding based on criteria inehWing a that 27 includes both of'the following. 28 (A) A survey of economic forecasts to be conducted by the 29 Department of Finance no later than November 30 ofthe year prior 30 to the reporting year for any year in which the program is to be 31 operated. 32 (B) `2 he impact of locally adopted smart-growth policies and 33 general plan amendments that providefor multifamily housing. 34 (c) Grant amounts shall be determined as a per-unit incentive 35 weighted for high,medium, and low employment demand areas. 36 In addition,the department shall provide additional incentives for 37 units in projects within eligible communities that meet criteria 38 designed to encourage planning priorities such as affordability, 39 multifamily housing, and infill development.'The department 40 shall establish the definitions and measurement specifications for i SB 1495 —4- 1 41 the incentive criteria to be used to determine grant amounts that are 2 easily and objectively verifiable. 3 (d) Funding shall be provided as soon atter January I of the 4 year following the allocation reporting year, as is reasonably 5 passible,allowing time for receipt by the Department of Finance 6 of yearend production figures as well as other information 7 necessary to apply the established criteria. if all funds are not 8 expended after the end of the calendar year in which housing 9 production is counted, the department may continue the program 10 into the fallowing year if it determines there are adequate 11 appropriated funds to administer the program. if residential 12 production within eligible jurisdictions exceeds the department's 13 projections, per-unit incentives shall be prorated within the 14 appropriated funding amount. 15 ` (e) The department shall solicit and consider comments from 16 interested parties on the criteria that shall be used for determining 17 the amount of funds granted per unit.The department may deny 18 funding to any jurisdiction that it determines,based on reasonable 19 evidence, failed to issue residential building permits on a timely 20 basis between the effective date of this chapter and January 1, 21 2001, or, where the department;determines, upon reasonable 22 "evidence, that the jurisdiction inappropriately withheld the 23 issuance of building permits so that it could be counted in a 24 subsequent allocation reporting year. 25 (f) No later than December 31 2002,and on December 31 of 26 each subsequent year in which fiords are expended,the department 27 shall provide an interim report to the Legislature indicating the 28 'benchmark levels of production established,' the number of 29 jurisdictions accessing the program, the number of residential 30 units building permits issued above the established benchmark, 31 and the success of the additional incentives in achieving state 32 housing policies. When all funds have been expended, the 33 department shall provide a'-final report with updates to the data 34 contained in the previous reports, a description of ;the 35 achievements'and expenditures by local governments through the 36 program and information regarding the number of certificates of 37 occupancy issued in relation to tate residential building permits s� SB 1495 1 issued,The report shall be issued within twelve months following 2 the final allocation of funds. a