City Council Meeting: April 24, 2007

Agenda Item: 1-J  

To:                   Mayor and City Council 

From:              Kathryn Vernez

Subject:          Legislative Position to Work with Author on Alternatives to SB 2

 

Recommended Action

Staff recommends a “work with author” position on SB 2 (Cedillo) to develop incentives rather than mandates on fair share homeless housing and shelters, thereby preserving local control over land use issues, as well as avoiding a gubernatorial veto.

 

Executive Summary

Last year the City supported SB1322 a previous version of Senator Cedillo’s fair share zoning /homeless housing bill that was ultimately vetoed by the Governor on home rule grounds. SB 2 mirrors last year’s planning mandate measure. Since then, the City has been working with the League of California Cities to develop incentive-based legislative proposals to encourage actual siting of projects. Alternatives might include using RHNA incentives for rehabilitation of buildings with a suggested crediting of  2 for 1 in meeting a city’s RHNA goal; increasing the low income redevelopment set aside to 25%; and/or creating a housing voucher set aside at the State level as a supplement to County general relief grants.

Discussion

Last year the City Council adopted a support with amendment position on Senator Cedillo’s SB 1322 Fair Share Zoning/Housing Use by Right Bill.

 

SB 1322 would have required that a city or county identify sites in the housing element of their general plan where emergency homeless shelters and special needs facilities are allowed to locate without the ability of the local governing body to change the plan once it is adopted. Localities were afforded the ability to meet this requirement on a subregional basis.

 

Fair share laws attempt to provide fair distribution of the burdens and benefits when siting facilities or services that serve a regional need or alleviate a regional problem. Land use patterns and zoning policies typically are the purview only of local government and a hallmark of local control. Most criticism of fair share policies center on the lack of “teeth” or enforcement of these laws; that siting is a political matter not easily addressable by State imposed rules and procedures. However because of the gravity of achieving equitable distribution of the care and housing for homeless people, the City supported the bill as a means to get other communities in the region to participate at some level in the solution to end homelessness. In order to ensure that there is not excessive concentration of facilities and services in some areas or jurisdictions, the City requested that the legislation be amended to provide credit to localities that have such zoning by right and already provide services and facilities, stating that cities like Santa Monica which do both should receive an exemption from the fair share requirement.  Since our zoning ordinance permits emergency shelter and transitional housing by right in specific zones, the author thought that we had already fulfilled the planning mandate of the legislation making a credit/exemption unnecessary. The bill was ultimately vetoed by the Governor on the grounds that the measure usurps local government discretion and control and that another bill, AB2634 (Lieber), achieved similar results relative to inclusion of emergency shelters in housing plans. Specifically, AB 2634 provides that the Housing and Zoning Law’s required analysis of population and employment trends and quantification of the locality’s existing and projected housing needs for all income levels, in the general plan’s housing element, shall now include extremely low income households.

 

In addition to issues of enforcement, there is a bigger policy concern that the section of law amended by the bill while meritorious for homeless shelters and special needs housing could be a concern for the City in terms of other areas. For example, the City regulation of land use and zoning for other types of uses could eventually be compromised.

 

In December, 2006 SB 2 was introduced as an identical sequel to SB 1322. The City proactively began to work with the League of California Cities to develop options that would create incentives to actually achieve siting. A new subcommittee of the League met on March 1 to develop guiding principles so that the League might better respond to legislative and regulatory proposals as they arise. Related policy resources are being developed to increase capacity for local agencies; provide a compendium of zoning tools, development incentives and best practices for siting, and prioritize the allocation of available resources. Housing element reforms are also underway to better ensure compliance. The overarching goal is to form consensus on the issue of fair-share homeless housing through incentives rather than mandates.

 

The City presented three proposals that might create meaningful incentives for cities to encourage desirable results.  Since cities often struggle to meet RHNA allocations and rehabilitation is excluded as eligible construction, staff offered that cities providing rehab for homeless shelter and special needs housing should be counted towards the RHNA goal and in fact given a 2 for 1 credit. In addition, the low income housing set aside of redevelopment funds might also be increased to 25% as a funding source for these projects. Lastly, since housing the homeless is the most important objective of all these approaches, a pilot project providing a housing voucher add on the County General Relief grants might hold promise for reducing the number of the destitute living on the street. In Los angles County for example, GR grants provide $225 per month, hardly enough to cover shelter costs. We also recommend that Prop 63 funding provide the wrap around services to the homeless individuals that will make being housed successful.

 

Summary

Alternatives to State mandated fair share zoning carry greater promise in actually siting homeless housing projects than does a State imposed planning requirement that erodes local land use control.

 

Budget/Financial Impact

There is no financial burden imposed upon the city in taking this “work with author” position.

 

Prepared by:

Kathryn Vernez, Assistant to the City Manager for Community & Government Relations

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

Kathryn Vernez

Assistant to the City Manager for Community & Government Relations

 

P. Lamont Ewell

City Manager