[Updated text] The City of LB, via a Sept. 18 letter from City Manager Pat West, urged Governor Brown to veto SB 828 (after sending City Manager opposition letters to the measure during the legislative process, further below.) To view the City of LB letter urging a veto, click here. [end updated text.]

Among its complex provisions, SB 828 (text as enacted here) requires cities to inventory their land "suitable" for residential development and if that inventory doesn't show adequate sites to accommodate the "need" for housing at all income levels (in a number decided by a regional agency), the city must rezone sites to accommodate 100% of the regional agency-determined "housing need" for very low and low-income households to permit rental multifamily residential housing by right.

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Both bills affect the way the So. Cal. Ass'n of Governments (SCAG) determines, and the Sacramento Dept. of Housing & Community Development can effectively enforce, city decisions to enable development of the number and types of "needed" housing units in various income categories (that cities are supposed to "produce.") Since cities don't directly "produce" housing but allocate land for developers, the measure will eventually affect local city decisions on where, at what allowable density levels and for what income levels, to allow developers to build housing.

SCAG calculates the number of "needed" regional housing units, and assigns LB a share of it at all income levels, in SCAG's "Regional Housing Needs Assessment" (RHNA.) SCAG's RHNA is subject to approval by Sac'to's HCD.

Sponsor

Sponsor

SB 828 (by state Senator Scott Wiener, D, SF) requires SCAG's RHNA numbers to demonstrate efforts to reverse racial and wealth disparities by assigning additional weight to cities meeting Sacramento criteria in distributing the RHNA numbers among income categories. It also prohibits SCAG from letting cities (like LB) use a prior "underproduction" of housing in some income categories and stable population numbers to justify calculating or reducing the number of RHNA "needed" housing units in various income levels.

In addition, SB 828 requires SCAG to provide Sac'to with data on the "overcrowding rate" for a comparable housing market, and define the vacancy rate for a healthy housing market for those purposes as between 5% and 8% of both rental and ownership housing. And it requires SCAG to include data on the percentage of households deemed "cost burdened," the rate of housing cost for a healthy housing market, and data on the projected household income growth.

Sponsor

As described in a Senate floor Legislative Analysis, SB 828:

...Requires the housing element to contain an assessment of housing needs and an inventory of resources and constraints relevant to meeting those needs.

...Requires a locality’s inventory of land suitable for residential development to be used to identify sites that can be developed for housing within the planning period and that are sufficient to provide for the locality’s share of the regional housing need for all income levels.

...Requires, where the inventory of sites does not identify adequate sites to accommodate the need for groups of all household income levels, rezoning of those sites to be completed in a specified time period. Requires this rezoning to accommodate 100% of the need for housing for very low and low-income households for which site capacity has not been identified in the inventory of sites on sites that shall be zoned to permit rental multifamily residential housing by right during the planning period.

...Prohibits a local jurisdiction from reducing or permitting the reduction of the residential density, or from allowing development at a lower residential density for any parcel, unless the jurisdiction makes specified written findings.

Sponsor

Sponsor

[Updated text] In the City of Long Beach letter urging the Governor to veto SB 828, City Manager Pat West wrote in salient part:

...[T]he most egregious aspect of SB 828, and on which the City of Long Beach's opposition primarily lies, is with respect to the proposal to make RHNA a housing production mandate on cities, as opposed to a tool that can be used to plan for and maintain housing to meet a city's spectrum of housing needs...In so doing, SB 828 fails to recognize the reality that cities do not build housing, developers building [sic] housing; and the housing market is heavily influenced by regional economies.

While the City of Long Beach supports the development of affordable housing, as evidenced by the 1,778 new affordable units that have been built, 2093 existing units that have been preserved, and 367 units that have been rehabilitated in Long Beach over the past 10 years, the City strongly opposes SB 828 and requests your veto on this bill.

While LB city staff opposed SB 828, it was neutral on a similar bill, AB 1771 (by Assemblyman Richard Bloom (D, Santa Monica)) which applies a somewhat different methodology for SCAG's calculation of "housing need." LB Mayor Robert Garcia and the policy-setting City Council were publicly mum as both bills (backed by Sac'to's Dem leadership) advanced to passage.

On May 30, State Senator Ricardo Lara (D, LB-Huntington Park) switched his initially tallied "yes" vote to "no" on SB 828 moments before it was recorded. Senator Lara (who'd voted on May 25 to advance SB 828 to the Senate floor from the Senate Appropriations Committee he chairs) responded "aye" (yes") on the Senate floor roll call vote on SB 828 but (state Senate video shows) just prior to his "yes" vote becoming final, Sen. Lara switched his vote to "no" after it became clear the bill had sufficient votes to pass. Senator Janet Nguyen (R, SE LB-west OC) (who last year voted "yes" on SB 35) voted "no" on SB 828. On August 30 (final passage), Sen. Lara is recorded as "no vote recorded." Assemblyman Patrick O'Donnell voted "no" on SB 828.

On May 31, Assemblyman Patrick O'Donnell (D, LB) voted "no" on AB 1771 (which passed 48-27 with 3 not voting.)

Long Beach city staff (city management) opposed SB 828, although Government Affairs Manager Diana Tang told LBREPORT.com in August that the City was pleased that it was amended to no longer require cities to meet a percentage of a SCAG's "Regional Housing Needs Assessment" (RHNA). Long Beach city staff took the position that it's important for local jurisdictions to have the ability to plan for housing according to their unique needs and characteristics, as well as to ensure that the assessment of regional housing needs is fairly allocated across the region. The City of LB was neutral on AB 1771, which differs in some respects from SB 828 and had the support of the cities of Santa Monica and West Hollywood.

The City of LB (via city staff) voiced opposition to SB 828 as it advanced through the legislative process in letters dated April 23 and June 18, also signed by City Manager Pat West. In both letters, City Manager West wrote that the City of LB "strongly opposes" SB 828, stating in part in April. However unlike some more high-visibility bills, Mayor Garcia didn't sign either of the City's legislative position letters on SB 828.

[City Manager Pat West letter text] Through responsible local land use management, Long Beach has been able to cultivate a unique and diverse urban fabric. This includes quality public parks, state of the art private developments, sustainable transportation infrastructure, affordable housing, market rate housing and other components to cities that are unique to each city across the great state of California.

The City has conscientiously worked with the private sector to facilitate housing. Over the past ten years, 1,778 new affordable units have been built, 2,093 existing units have been preserved, and 367 units have been rehabilitated. Long Beach has also supported 335 first-time home buyers with silent second mortgages. With that said, developers build housing -- cities facilitate housing developments through the provision of public service such as public infrastructure and public safety services.

Long Beach recognizes that California's housing market is financially challenging for many individuals and families in our State. However the problem will not be solved by simply mandating cities [to] accommodate housing developments..."

In early July, City of LB Gov't Affairs Manager Diana Tang told LBREPORT.com that the City of LB would continue to oppose SB 828 "as long as the bill proposes to use RHNA as a housing production mandate on cities."

An Aug. 30 State Senate legislative analysis listed SB 828's supporters/opponents below:

SUPPORT: (Verified 8/29/18)

Bay Area Council (co-source)
Silicon Valley Leadership Group (co-source)
Association of Bay Area Governments
Bridge Housing
California Alliance for Retired Americans
California Apartment Association
California Asian Pacific Islander Chamber of Commerce
California Association of Realtors
California Building Industry Association
California Business Properties Association
California Chamber of Commerce
California Community Builders
California Housing Partnership Corporation
California YIMBY
Circulate San Diego
City of Oakland
Facebook
Fiona Ma, Board of Equalization District 2
Half Moon Bay Brewing Company
Heller Manus Architects
HKS Architects
Inn at Mavericks
Mavericks Event Center
McKinsey & Company
Metropolitan Transportation Commission
Non Profit Housing Association of Northern California
North Bay Leadership Council
Pacific Standard
SB 828
Page 7
Postmates
San Francisco Bay Area Planning and Urban Research Association
San Francisco Housing Action Coalition
San Mateo County Economic Development Association
Sand Hill Property Company
Silicon Valley Community Foundation
Sustainable Silicon Valley
SV Angel
The Two Hundred
TMG Partners

OPPOSITION: (Verified 8/29/18)

American Planning Association, California Chapter
California Association of Councils of Governments
Citizen Marin
Cities of Long Beach, Mill Valley, Redondo Beach, San Bernardino, San Marcos,
and San Rafael
Coalition for San Francisco Neighborhoods
Coalition to Preserve L.A.
Coalition to Save Ocean Beach/Friends of Sutro Heights Park
Cow Hollow Association
Dolores Heights Improvement Club
Haight Ashbury Neighborhood Council
Livable California
Lone Mountain Civic Association
Marin County Council of Mayors and Councilmembers
Marina Community Association
Mission Economic Development Company
Preserve L.A.
SF Ocean Edge
Spaulding Square Neighborhood Ass'n Historic Preservation Overlay Zone
Stand Up for San Francisco
Sunset Residents for Sensible Planning
Sustainable Tamalmonte
Town of Corte Madera
United Neighborhoods for Los Angeles
36 individuals

Oct 2, 3:05 p.m.: Text added noting and linking to City Manager's Sept 18 letter urging Governor Brown to veto of SB 828.

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