HomeMy WebLinkAbout1979-12-18; City Council; 6106; Implementation of Local Housing ElementsCITY OF CARLSBAD
IN !TI Al
{.p ID~ Dept. Hd. !--,J"-f-+--_.:::::....i...:===--=--------------AGENDA BILL NO.
DATE: -~De:,:c~e::!:m~b:.:e:,;.r_.:;18~, ..:.1:..:9~7~9 __ , __________ Cty.
DEPARTMCNT:
SUBJECT:
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IMPACT OF AB 1092 UPON ARTICLE 34 OF THE STATE CONSTITUTION
AND IMPLEMENTATION OF LOCAL HOUSI~G ELEMENTS
STATEMENT OF THE MATTER
\
At its meeting of November 28, 1979, Council requested a report on the
impact of AB 1092 upon Article 34 of the State Constitution.
The attached report prepared by the• nvu:.:ng and Redevelopment Director,
outlines the prQvisions of the bill ,md pro·. des examples of types
of assistance to· low income hou~i11g which Wc.'!"e previously thought
to be within the purview of A~cicle 34. Thi~ item has significant
impact upon the City's abilicy to implement the pruvisions of the
emerging housing element.
EXHIBIT
Report from Housing & Redevelopment Direttor.
RECOMMENDATION
Accept report.
Council Action:
12-18-79 Council accepted the report and dire:ted that it be filed.
Date:
To:
From:
Subject:
-
December 3, 1979
Wayne Dernetz, City Manager
Jack Henthorn, Housing & Redevelopment
Response to Council inquiry:
re: AB 1092
Directo~
The impact of AB 1092, (attached) on Carlsbad, is essentially
the same as that occurring to all local agencies, In essence, the
bill is the legislature's attempt to clarify the circumstances under
which Article 34 of the state Constitution should be applied to
local involvement in a housing development: In the past, attorneys
have generally interpreted Article 34 as precluding public involvement
in all forms of direct local assistance to housing. This has
severely restricted local government's ability to determine its
committment to meet the housing needs of its constituencs, However,
recent court cases have indicated a more liberal interpretation than
provided in attorney's opinions of the past. This legislation
appears to have evolved from these recent court actions.
GENERAL PROVISIONS
AB 1092 specifically exempts the following types of housing
development from Article 34:
a.
b,
c.
d.
development intended for ownership rather than rental
(condominiums and cooperatives)
n~Nly constructed, privately owned, one to four
family units not located on adjoining sites.
development consisting of units leased from a
private owner
developme~~ consisting of rehabiiitation reconstructtion,
improvement or addition to, or replacement of units
of a previously existing low-rent project.
In addition, the bill adds specificity to the definition of lower
income householder by tying it to Section 50079.5 of the Health
and Safety Code (SB23), This clearly delineates very low income
families as those whose income does not exceed 50% of the area median
income adjusted by family size, Lower income families are those
whose income does not exceed 80% of the area median income adjusted
by family size. The bill further defines families of low or moderate
income as those whose income does not exceed 120% of the area median
adjusted by family size, Additionally, the bi.11 makes provisions for
adjustment by the State in areas where housing/income disparity is
inordinately large,
Finally the bill clarifies the Article 34 phra.se "develop,
construct or acquire" toward the end of clarifying
ambiguities relating to the scope of Article 34.
IMPACTS, OPPORTUNITIES AND LIMITATIONS
The bill insures that projects which do not adversely impact
ad valorem property tax revenues and do not permit more than 49%
occ.iupancy by persons of low income shall not be subject to
Article 34 provisions. This provision protects the tax payer
while at the same time opening avenues to insure an economic
mix in tenancies.
The provision of the bill which excludes projects opened for
low income ownership provides opportunity for participation in
"turn-key" projects which previously required Article 34
authorization.
The bill exempts projects not exempt from ad valorem taxes by
virtue of public ownership so long as there is no long-term
financing from a public body. This could permit short term
notes, or construction financing by public agencies without
Article 34 authorization.
The primary limiting factors in the bill are that a publically
assisted project a) not be exempt from ad valorem taxes and b)
not contain more than 49% low income tenancies.
Article 34 i~ not applied when financing is provided to a
private development and sec~red by a deed of trust or other
security devise. Further, the bill authorizes a public
body to foreclose so long as its intent is to return the
development to private ownership.
Land writedown, (i.e., the selling of land at less than the cost
of acquisition in return for a pledge of a number of low income
units) is now ex~llJ.Pt from Article 34. In addition, improved
land also enjoys the same "writedown" provir;ion as that
affecting unimproved areas, This exemption is again subject
to continued payment of ad valorem taxes, either by direct
payment, reimbursement or in-lieu payu1ents.
Public agencies are now authorized to lease existing units
directly from private entities s0 long as it does not result
in a direct reduction in property tax revenues generated from
the leased units. This clearly permits lease-back types
of development agreements which heretofore had been
considered experimental.
Locally implemented rental assistance payment programs are now
specifically permitted. In the past, direct local funding
of these types of projects was considered in violation c[
Article 34.
AB 1092 specifically permits public agencies to provide
assistance to low rent projects. In addition, compliance
monitoring to ihsu=e th~c conditions of development are met
is now specifically permitted. This latter provision enables
zoning types of conditions/restrictions to be applied and
enforced when backed by local revenues.
CONCLUSION
It is clear.that the legislature desires to provide local
jurisdictions with the ability to address their housing needs.
However, validating court actions will be necessary to delineate
the specific parameters within which AB 1092 will apply.
The passage of AB 1092 provides the Council with new
opportunity to implement the goals and objectives of the emerging
Housing Element. However, before any program is recommended
for implementation, analysis in light of recent expenditure
limitation measures must occur,
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'CHAeTER 692 ·766
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;CHAETER .692
,(Assembly Bill.No. 1092)
An-act to amend Sections 37000 and 37001· of, ·and'to· add.Sections ·37001
37001.5 to, the Health and Safety Code, relating to housing:., ,•, . ,t; tJ , .: 31 ·'
;;,,
[Approved by Governor September U,,19J9.-Fil¢ wi\h Sccrc~ry (!f State September. 16,,1,9,1~ ,··· '
L~GIS~.A'I:IYE,~OUNSl;L'S ,DIGES'.f -~¾
AB 1092, M09re. I:,ow-rent housing.projects~. ~ '.',W , ) :-, ~, '•"i · ~ll't
, (1) Existing law. with. respect. t<?., the.implem.enta,tio11:of .Article XX):'l.~(
California Const~tution prescribes, am!mg O!h~r,, ~hings, that a, low•rfllJl;:•h,o. _
project,· as defined in such ~icle,.9,0!:,S 11ot apply ,t!}&..nY !levelopmc_n,t cqm _,,.
urban or rural dwellings, apartments, or other living accommodations w~
develoement !s privately ,.owned housing .. and. is, not exempt from ~d1 ~~
taxatio~. ~f _reaso~.of_,~!}Y ~~~lfc_ q_w.r._e~hip _and ·fJ?!)~.;fi~~~£~ .. ~.t~. ~l,~cefbJ
term _le~~mg. ,; .. , ., . .,. ,, •. _.. , r:,r;•: 1-;.;•,:, -i_, n.' 11 10 ••
This bill would revise for such purposes the cond1t1on that the developmen
be financed with direct long-term lending, to provide, instead, "that it noti
financed with long-term financing from a•.state ·public body:"'The "biUi·would. •
addition prescribe that a low-rent housing project, for purpos(;S of Article X
does no\ include (I) a development •. intended for :.owner-occupancy, iinclU:
cooperative or condominium ,OV(nership, pt~er thap for rental occupp.~cy~·(2
development 'consisting.of newly constructed; privat~ly O,Vfi:ied, .one-to-fou(-
dwe!Hngs not located·on adjoining s\tcs; and (3) a clevelopmef!t copsisting of,f'iis
dwelling units leased by the state public body, 'as defined, from the' private ~-.
,.and (4) a development consisting of _rehabilitatioq,preconstruction,J!llProyem>)}
a1d~tion to; or .replacc;mcnt,,of:d~elling 1pnits of,~-~ pre','.io.usly cxisting:lo.~:
)1ousing P,,oject •. 11 .. • .. '• .'·1• 1•.~,.,.~-c ,,. ,". • •. fo !,,-d i:.. '. .? ·t ~-~,iri'
. ,,(2) Under S.ection 1 of Article-XXXIV·of.the California. Constitution,:!/
of \ow income''. is _defined to· mean. pcrsons-,or families, who lack,the amoµff
income .which is necessary (as determined· by the,·state,•public1body :devefo,
_constructing, or acquiring the-housing.project) $0••.enable them~,without.1fin,
assistance to live ln dccent,.safe, al\d,sanitary dwellings:without·o.vercrowding;
Thi~ bill would make·such· term inapplicable to persons or familics'whosc·in .,
exceeds the maximum income of lower income households, as defined.in a prolv~.
proposed by SB 23. The bill would' indicate that such 'change is' \nter(ded \o·~r~
ambiguities relating to thc'scope of Article XXXIV of the California' Constitutio
I • '" 1 -"f \' l "''° •'r,~ hf!T7 (3) The bill' would· require tliat the words "develop, construct; or., acqillfl:-
Section I of Article XXXIV of the California Constitution be interprctedC..
sp·ecified manner, 'and would also ·indicate that such change i\'•intended·fo'iG,
ambiguities relating to th'e scope of Article XXXIV. '· ,•►., • '•·· !-,
1!~$-,'r . '"~,...., ,.,
The people of t.'1e State of California do enact as follows: t.. ., ,>1<jt
I.
SECTION I. Section 37000 of the Health and Safety Code is amended to rca
§ 37000. The Legislature finds and declares that Article XXXIV of the :S,.,~
Constitution was approved by the voters for the purpose of providing a mcch ., .. -~
1979-1980 REG..S~.
I
I •
for exprcssing,·community .<
c.onstruction· of,I federallyi sul
dcvclopm~nts typically·,were J
mcnts-provided by the private
t11d locational•standards•as ,11
ments. were. ,QCi:upicd. entire!
subject to ad valorcm propcrt:
The Lcgislatu1·e, !µ}lb,• ·and
provide ~ho1,1Sing,; for, persons
supportive ,of; optii_num,com,r.
may allow. for' mixed .incom
competitiv~ with1similar,,mar:
Such mixed income:developm
in terms, qf,,l)l'Chitcc;turc, .. des
an:enitics.,p(OVidcd, and .may, I
Recognizing that: new, forn
housing ,persons ·or ,Jow incc
Sections 37001; 37001.3,.and
the applicability of Article :ii
Sectio~ .2 _of Artie.I~ XXXIV,.
of Artiste :>OQ{IYi ,Md is c:om
The terms ."state public bo
have the sa,n}!=, mt:).lling ?S in ,. . '
SEC 2. :, Section~37001 of 1
I iJ7001. T4e, teim "low-re1
XXXIV ,of the St~t(,Const~tu
urban or rural dwc-Jhngs, apa1
ll)Y one of the foll~1wing crite1
(a) (1) The devc:lopment i.
property tax exemption not fl,
than ·49 percent· of'the=·c1well'
such development may be occ
"(b) The:devctop'iiteiit is pn
taxation' by'rcason1of any pu
tenn financing from a public l,
(c) The developinent is i•
cooperative or con~minium c
(d) The development consi:
family dwcllings .no\)ocatcd o
(e) The development consi~
body from t.l:te·p'riviite owner c,
(1)1The develop1Irient consi:
Ot addition to, or r~placemer
housing project. I
' SEC. 3. Section 37001.3 is
§ 37001.3. The m~ximum i
the state. public body, devel
Purposes of Section i of Artie
the maximum income of !owe
l
SEC. 4. Section 37001.S is
I § 37001,5. The words "de\
767 CHAPTER 692
SEC.4
exprcssing,·~mmunity concern, regarding-·the development, ·acquis'ition,: or
truction· of.I federally subsidized conventional, public housing projects.:,Such
elopm~nts typically were different from· and inconsistent with housing develop-
ts. provided by the private sector .. Such dilfer~nces included architecture, design;
locational•standards as well as the· level of amenities, prQvided. Such develop-
ts were .~upicd entirely by :persons of. low .inco!)le, and usually-were •not
·cct to ad valetrcm property taxes. •·. :., ,: ,. • i! , , .1 .-, .' ·• ! , ,.,·.,,;
The Legislature finds and. declares that new. forms of .housing assistance ·can
vide :ho1,1Sing, for persons ,of· low income-in a--mann~ cc:isistcnt with .. and
rtive of-optimum commµnity impro',;ementa·Such fon11s or housing .assistance
y allow for· mixed income occupancy-in,·devclopments . representative. of-and
pctitiv~ with.similar market, rate developments provided. by the private sector;
h mixed income developments arc frcqucntly·comparable to market rate projects
tenns or. architecture, design, and.locational standards-as ;well.:wthe lcvel·of
'.'3f.. cnitics provided, and may.be subject to ad valorem property,taxes. . "l. ~,:-;·,.•:;
OCXI_'IC~' · Recognizing that new forms of housing assistance-provide ·new •approaches '.for
i•rel}t.~-~-• l11Sing persons of low-income, it is the-intent .. of"the Legislature in enacting
,t com -· ~ l:ctions 37001, 37001.3, and 3700!.S.to·clarify ambiguities.relating to'th~scopc of
ions 'Y~--:le applicability of Article XXXIV which now exist. Therefore, and pursuant' to
n ad, t iction _2 of Article XXXIV, this part is enacted.in .order to facilitate. the.operation
:h ~i~~~ i Article XXXIV1 and is consistent: with the. provisions of that article. , ,, : , -~,i ,11
,1 "r:!f The tcrms."state public body" and "persons.of low income" as.used in this part
velo~men'"''"' 2ve the same. meaning as in Article XXXlV.. •: ir:' • . ~-· :: •. _._ ~-.;,. • • , ('.
hat 1t not! , • · · -· •., • ,. •, .. • '" ..i~ .. • '·bm··woil~ . SEC. 2. •· Sectiof 37001 of the Health ana·Safety Code is amen~e?'to,5ead: ,.: · ,.
rticle XXXl!,i' §37001. The te1m "low-rent housing project" as defined in Section 1..P~·Article
1cy, .inc;h~r,• V of the Stat~ .Constitution, does not apply to a.'ly developmcn~ comp9s!!d of
:upa1,1cr.,i_~~ mn or ru:al dwc-lli~gs, ap~mcnts, or other living accommodations, which m~e~
i!o•fou~,,J~,.. • ;yoneofthefollc,wmgcntena: --: ,,_; •:•.-,,, -~,r, ~.l· , ,., ,,,,.r·r:.'.) \•'
•.'"~ of,f , (a) (1) The dcvi:Iopment is privately own¢ housing, receiving nc ,ad .v:itorem
pnvate ~.... ;roperty tax exemption not fully reimb~~ed to all taxing entities; and (2) not more
•1~roye01 _ ~ 49 percent of· th: dwellings; apartments;1or other H-.:ing, acc~inmoda\icns. o.f
~tmg :J ~ development may be occupied by persons of low income. · .. · ··• · · ... · ·
· ~,:r'" (b) The:devcloP,ment is privately o~cd )iou·sing: .i~ no't ex~rq·p~ fro~:ii,d .v&,tore111
1tion l.Ution by·rcason1of any public ownership, and'is not financed·}vitl! djrj:c~;Jong•
Ute wi financing fro:,1 a public body. · · • ~i: • ·•-~•-' ' ·• '•
ly :d (c) The development is intended for o~nc~-occupancy, . ~hi~\l may. ,include
:hou l:llperative or condominium ownership, rather than for rental-occupancy.
iOWd ~M!llml I . h _ 'ci3ml . (d) The development consists of newly constructed, privately·owned, one-to-four
r~ os~m • .,,.-~ llnily dwellings not located on adjoining sites. • · -~· • ·' J • • • : i:
;te; f:%~· (e) The developnient consists of existin~ dwell_ing units le!15e4 _by ~.he ;state pub~ic
.. t''tu't'i'"' · i:dy from the pnvate owner of such dwelhng umls. , · ,.. , · :; .ons I (" Th d ' I I . f, h h b'I' . . .. . ~ . '' .• iliV \; •1 e eve opment consists o t e re a 1 1tallon, reconstruction, improvement
~r · ~71ed, ur. • .. ~ addition to, or replacement of, dwelling units of a previously existing low-rent
erprc ., ~~ ~•ing project. I
lded to c:,"iiiiJf'
· JJ.'.:'.r.~~ SEC. 3. Section 3';'001.3 is added to the Health and Safety Code, to read:
,11,I=®~\; I .,'}. "" §37001.3. The maximum income of "persons of low income," as determined by
' ' ~Y.<{St ,i:', ~ state public body, developing, constructing, or acquinng the property, for
l .··f.. '· ~cs of Section 1 of Article XXXIV of the State C,mstitution, shall not exceed
nded to•'i"',· fl ~ maximum income of lower income households, as deiined in Section 50079.S. •t\~~-i
[ of the 'S~.:, SEC. 4. Section 37001.S is added to the Health and Safety Code, to read:
; a mec~,~l'! §37001.S. The words "develop, construct, or 'lcquire," as use~ in Section I of
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CHAPTER·69l
SEC.4
768
,.
· Article XXXIV of the State Constitution, shall not be interpreted· to appl
activities, of a state public body when such b<xly does any of the following: ·•n
. {a) Provides financing, secured by a deed of trust or other security instrum$
a·private owner of existing housing;·or acquitcs a development, for which fi111~,
previou.uy has been provided, as .a temporary measure to protect its securitf!U
with an intention to change the ownership so that it will not continue 'to
owner of a low-rent housing project. • . , · · · ·, ·, J •
(b) Acquires or. makes. improvements-.to ).and which is anticipated to ·,
ground leased, or otherwise transferred to a private owner prior to its dcvel -
as a low-rent ho•.sing project, provided (1) the land and improvements the •
not subjt.et to an exemption from property taxation by rCMOn of,p'ublic owii"
for more than five years following acquisition or improvement by the state:_•
body, or (2) such an exemption from' property taxation persists beyond' the 11"'.~
period and no alternative use i3 designated for the land or improvements, bu
property t.ax revenues lost by affected taxing agencies on account of the ex~
of land;:-; improvemen~ from·property taxes by reason of public ownersbiprc
prope.~·. or any interest in, the property after the five-year period, .
r~bursed by payments in lieu of tax~ foJlowing the expiration of th: fv~
penod, . . ' •• ' ·•· . .. •
, :(c) Leases existing dwelling units from the i.•rivate owner of such units, 'pro
the lease or a subtenancy thereunder does not result in a decrease of pro '
revenues with respec~ to the:dwdling units leased. · ' . ~~
(d) Provides assistance to the private owner or occupant of existing •'!io
which enables an occupant to live in decent,.safe, and sanitary housing at a ,..
or she can afford to pay. · · . , :·,
, (e) Provides assistance to a low-rent· housing project and monitors.canst
or rehabilitation of such project and compliance with conditions ~f suc~.~is
to the extent of: · ' · :•
(1) Carrying ou,t routine governmental functions; . .
1
(i
"(2)· Perfom1ing conventional activities of a lender; c,r , . . . ,
1
,
. (3) Imposing constitutionally mandated or statutorily authorized conditi ' • . • • . • ., )1 cepted by a grantee of assistance. , ~-.. .. • . . , , . · ·•~
• (f) Provides assistance t_o a development prior to its becoming a low•r~~•h§
project \Vithout intending or expecting that the development will' become ,.10
housing project, as dcfuied. • : ,• ,; ·.:• · 1 • • ':;
I \o ... f HISTORY:•A,B. 1092, approved and ftlcd Scplffllber 16, 1979. '•, •
}, ". ''f ,.
{! EXPLANATORY NOTES: ', • • · , , 1 • J , •
• H A: S C § 37000. SubstituUd (I) ''Sectio1u 37001, 37001.3, and 37001.s'' for ''Section 37001:
, third parJgraph; an~ (2) "thb"'for "lhe" bcfo,rc "part" In lhe last paragraph. • r ~1
· H &. SC§ 37001. (I) Substituted "any one" for "cilhct'' in the inln,ductory clause; (2) ,u , ·
• period for ": or" at the t'lld of subd (a)(I); (3) substituted "financing from a public:•. 1 · · "public lending" at the end ,,rsubci (b): and (4) added subd.1 (c}-{f). , ' 1~1 • .. : ~ • .:a: .. i,~ .... ~;
"·
An act to add~and ,repeal iS
;:Liting to Medi-Cal.l-.:-ri?c",~,
(Approved by Oovomor Seplcmbe1
· ' \ · r~1 t; ~ t •J• ~ !:, , .,,
• LEGISL . ., .. )'' ,
S6 891, Presley.' Mcdl-ea1;
C11dards. ,\'
E.,isting law· includes. medi~a
i:t the California· Medical. Assi
ichicles are net subject to licens
This bill would-prohibit ·anJ
1 ;monnel-standards for furnishil
:5gible Medi-Cal ·ber.:ftciarics. ,
:,cnt and personnc:( standards
xrviccs,but would nor prevent
:,;,nemcrgency, medical , transpo
.lde.(• a sole franchise ,vhc'n 'de
:i.:h services.
1:his act shall not: ~ome•op<
;u1pment and·personnel standa1
This act \vould-iemairi :n efrec
• 'f .. J.4 .• {"'t,,,,. .. 1•,:i,· '"'t •
~ people of tfie.,~'fte,p(.<:;:all[o
• " ~~ ",.. l ):'•; :.;:."i ;,_:u!•
SECTION·.J:~ -Section 14136 ~=
~ 14136. No city or county sh ~ furnishing of nonemergency
Ci! beneficiaries which are in cc
~bursement established. by-th ~ section shall lie construed lo
tense or regulate nonemergenc
ljulation is not in .:onflict· with ;
' Nothing in this section shall
illwing bOth emergency and
~c within its j!lrisdiction um
-rmined necessary to assure th
This section shnll not becom
'l:Jbli.shed equjpment and persor
);nahon services must satisfy to
The provisions 9f this-section
• 1:1! on that date are :epenlr:d. , •
~RY: S.D. 891, approved and filed~