Section 65913.12 is added to the Government Code, immediately following Section 65913.11, to read:
(a) For purposes of this section, the following terms have the following meanings:
(1) “Dedicated to industrial use” means any of the following:
(A) The square footage is currently being used as an industrial use.
(B) The most recently permitted use of the square footage is an industrial use.
(C) The site was designated for industrial use in the latest version of a local government’s general plan adopted before January 1, 2022.
(2) “Development proponent” means a developer who submits a housing development project application to a local agency pursuant to this section.
(3) “Extremely affordable adaptive reuse project” means a housing development project that meets the following criteria:
(A) The development is a multifamily housing development project.
(B) The development involves the retrofitting and repurposing of a residential building or commercial building that currently allows temporary dwelling or occupancy, to create new residential units.
(C) The development will be entirely within the envelope of the existing building.
(D) The development meets all of the following affordability criteria:
(i) One hundred percent of the units within the development project, excluding managers’ units, shall be dedicated to lower income households at an affordable housing cost, as defined by Section 50052.5 of the Health and Safety Code, or an affordable rent set in an amount consistent with the rent limits established by the California Tax Credit Allocation Committee.
(ii) At least 50 percent of the units within the development project shall be dedicated to very low income households at an affordable housing cost, as defined by Section 50052.5 of the Health and Safety Code, or an affordable rent set in an amount consistent with the rent limits established by the California Tax Credit Allocation Committee.
(iii) The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.
(4) “Housing development project” has the same meaning as defined in Section 65589.5.
(5) “Industrial use” means utilities, manufacturing, transportation storage and maintenance facilities, and warehousing uses. “Industrial use” does not include power substations or utility conveyances such as power lines, broadband wires, and pipes.
(6) “Infill parcel” means a parcel that is either of the following:
(A) At least 75 percent of the perimeter of the site of the development adjoins parcels that are developed with urban uses. For purposes of this paragraph, parcels that are separated by a street or highway shall be considered adjoined.
(B) The parcel is within one-half mile of public transit.
(7) “Local agency” means a city, including a charter city, a county, including a charter county, or a city and county, including a charter city and county.
(8) “Lower income households” has the same meaning as defined in Section 50079.5 of the Health and Safety Code.
(9) “Public transit” means a major transit stop as defined in Section 21064.3 of the Public Resources Code.
(10) “Very low income households” has the same meaning as defined in Section 50105 of the Health and Safety Code.
(b) (1) Notwithstanding any inconsistent provision of a local agency’s general plan, specific plan, zoning ordinance, or regulation, a housing development project submitted pursuant to this section shall be an allowable use if it meets the following objective planning standards:
(A) The development is an extremely affordable adaptive reuse project.
(B) The development is proposed to be located on a site that is an infill parcel.
(C) The development is not proposed to be located on a site or adjoined to any site where more than one-third of the square footage on the site is dedicated to industrial use. For purposes of this paragraph, parcels only separated by a street or highway shall be considered adjoined.
(D) The development does not eliminate any existing open space on the parcel.
(E) For developments of 50 units or more, the development shall provide onsite management services.
(2) Except as specified in paragraph (3), a local agency may impose objective design review standards for a housing development project submitted pursuant to this section.
(3) A local agency shall not impose or require the curing of any preexisting deficit of or conflict with any of the following standards on a project submitted for review pursuant to this section:
(A) Any maximum density requirements.
(B) Any maximum floor area ratio requirements.
(C) Any requirement to add additional parking.
(D) Any requirement to add additional open space.
(4) A local agency may deny a project specified in paragraph (1) that is proposed to be located on a site or adjoined to any site where any of the square footage on the site is dedicated to industrial use if the local agency makes written findings that approving the development would have an adverse effect on public health and safety.
(c) (1) For purposes of the Housing Accountability Act (Section 65589.5), a proposed housing development that is consistent with the provisions of subdivision (b) shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision.
(2) If a local agency determines that a development submitted pursuant to this section is in conflict with any of the objective planning standards specified in or an objective design review standard imposed pursuant to subdivision (b), it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(A) Within 60 days of submittal of the completed proposal for the development project to the local agency if the development contains 150 or fewer housing units.
(B) Within 90 days of submittal of the completed proposal for the development project to the local agency if the development contains more than 150 housing units.
(3) If a local agency does not make a timely determination within the timeframes described in paragraph (2), the application shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision.
Section 65960.1 is added to the Government Code, to read:
(a) Any local source of funding that can be used for the development of affordable housing shall include adaptive reuse as an eligible project. No agency with control of a local source of funding shall prohibit or exclude a project proposal that uses an adaptive reuse model for an affordable housing project development solely on the basis that the proposal is for an adaptive reuse project.
(b) For purposes of this section “adaptive reuse” means the retrofitting and repurposing of an existing building to create new residential units.
The Legislature finds and declares that developing affordable housing in a timely and cost-effective manner through the adaptive reuse of existing properties is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Sections 1 and 2 of this act adding Sections 65913.12 and 65960.1 to the Government Code apply to all cities, including charter cities.
SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
Bill text is the chaptered version from LegiScan (California Legislature); spacing is normalized. Code section text in a bill is the text that bill chaptered, not necessarily the law in effect today. Not legal advice.