California Housing Accountability Act

Housing Crisis Housing growth not keeping up with population growth Current shortage of 2,000,000 units increasing to 3,500,000 units by 2025 Strategies suggest building on vacant urban land, intensifying housing around transit, adding density to multifamily development, increasing supply of affordable housing through various methods

Housing Accountability Act The Housing Accountability Act, among other things, prohibits a local agency from disapproving, or conditioning approval in a manner that renders infeasible, a housing development project for very low, low, or moderate-income households or an emergency shelter Sets policy for all cities having a “fair share” of housing development obligations

2017 Housing Package Effective Jan. 1, 2018 State Declares Housing /crisis in part fault of local government, seeks to find ways to streamline housing approvals Regional Housing Needs Allocation (RHNA) Cities required to produce units at specific affordability levels ; ELI, VLI, LI, Moderate, Above Moderate during 8-year housing cycle; Creates new reporting and monitoring Establishes fines for non-compliance; withholding grants Creates persons/entities of new standing to enforce compliance Streamlines certain projects; reduces public input; ADU exemptions Introduces SB 35 - reduces public input – no CEQA required HCD given extended audit authority and ability to refer to Attorney General

City RHNA Accomplishments Current 5th Cycle (2015 - 2023) Summary with Pledged Affordable Units   Morgan Hill RHNA Units Permitted Units Pledged Remaining / (Surplus) % Complete VLI 273 72 86 115 26% LI 154 179 13 (38) 116% Mod 185 393 320 (528) 212% Above Mod 316 1250 TBD (934) 396% TOTAL 928 1894 419 (1385) 204%

What’s on the Horizon Further Legislation Further restraint of Cities’ land use authority Bigger Housing numbers - production goals in future – 2023 – 2031 More scrutiny SCC Grand Jury Report: “Affordable Housing Crisis Density is our Destiny” Frontrunning Gubernatorial candidate committed to production of 3.5 M new units; should “punish cities” which do not comply

New Compliance Pending SB 66 No net Loss zoning density – 180 days No net loss development unit accountability AB 1397 Site Inventory changes Replacement housing Identification of Governmental restraints, impact fees, process (HCD to study reasonableness of local fees AB 879) SB 828 Identification of 125% of RHNA need Carryover of underproduced units into new RHNA cycle

New Compliance Continued: AB 1771 Increase RHNA allocation to areas of high opportunity for lower income residents and allocate high % of housing to an income category of which a city has low existing share New housing units should be in urban areas and not agricultural or environmentally sensitive areas. New housing should respect Ag preservation SB 831New streamlining for ADU’s; no ability to charge sewer meter or impact fees. Ministerial approval, permitted on all residential lots, increase in permitted size to 800 s.f.; prohibits owner occupancy reqs. ; no FAR, lot coverage