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Home My WebLink About012621-03.1 LEGISLATIVE COMMITTEE MEMORANDUM 3.1 TO: Mayor and Town Council January 26, 2021 SUBJECT: January Legislative Report BACKGROUND Both individually and as part of the Tri-Valley Cities coalition, Danville officials are adapting to the social and economic changes and the 2021 state legislative priorities. The immediate focus on our advocacy work has been to support legislative efforts that help the Town recover from the COVID-19 pandemic and limit new legislation that impacts local control and adds stress to the Town’s already depleted resources. In 2021 the State Legislature is expected to continue to intensify their efforts to encourage housing development and affordability by imposing new requirements on local governments. The Legislature historically introduces over 2,000 bills each year covering a broad range of issues. While the business of the Legislative session is the same, the Covid-19 pandemic continues to impact the state and will have broad implications on shaping policy in the new session. The Legislative Committee’s work is essential to ensure the town is well positioned for advocacy work during the 2021 Legislative Session. DISCUSSION As anticipated, at the beginning of the 2021 Legislative Session, California Senate Pro Tem Toni Atkins introduced several key pieces of legislation including the reintroduction of bills from the Senate Housing Package. The new “Building Opportunities for All” housing package includes six bills designed to offer housing opportunities and solutions to Californians. Building Opportunities for All Housing Package SB 5: Senate Housing Bond (Atkins, Skinner, Weiner) Senate Bill 5, establishes the initial framework that would state the intent of the Legislature to enact legislation that would authorize the issuance of bonds and would require the proceeds from the sale of those bonds to be used to finance housing-related programs that serve the homeless and extremely low income and very low-income Californians. SB 6: (Caballero) The Neighborhood Homes Act Senate Bill 6, the Neighborhood Homes Act, authorizes residential development on January Legislative Update 2 January 26, 2021 existing lots currently zoned for commercial office and retail space, such as strip malls or large “big box” retail spaces, that are not adjacent to industrial use zones. The bill would require the density for a housing development under these provisions to meet or exceed the density deemed appropriate to accommodate housing for lower income households according to the type of local jurisdiction, including a density of at least 20 units per acre for a suburban jurisdiction. Senate Bill 7: (Atkins) The Housing + Jobs Expansion and Extension Act Senate Bill 7, eliminates the California Environmental Quality Act (CEQA) process by extending and expanding provisions of AB 900, which streamlined paperwork and expedited legal challenges to large, multi-benefit housing, energy, and manufacturing projects. SB 7 would extend the 2021 ‘sunset’ of AB 900, through 2025. Senate Bill 8: (Skinner) Density Bonus Law Senate Bill 8, would change the Density Bonus Law and incentivize the construction of housing developments that will contain a specified percentage of units for low and moderate-income households. This bill is currently listed as a spot bill. Senate Bill 9: (Atkins) California Housing Opportunity & More Efficiency (HOME) Act Senate Bill 9, promotes small-scale neighborhood residential development by streamlining the process for a homeowner to create a duplex or subdivide an existing lot in residential areas. SB 9 is identical to SB 1120, a bill that essentially eliminates single family zoning. SB 9 language, at a minimum allows for 4 full size houses where one sits now. Senate Bill 10 (Wiener) SB 10, allows cities to upzone areas close to job centers, transit, and existing urbanized areas to allow up to ten units without having to go through the lengthy CEQA process. Housing Legislation ACA 1: (Aguiar-Curry) This measure would create an additional exception to the 1% limit that would authorize a city, county, city and county, or special district to levy an ad valorem tax to service bonded indebtedness incurred to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, or permanent supportive housing, or the acquisition or lease of real property for those purposes, if the proposition proposing that tax is approved by 55% of the voters of the city, county, or city and county, as applicable, and the proposition includes specified accountability requirements. SCA 2: (Allan, Weiner) SCA 2, would repeal Article 34 of the California Constitution, which requires voter approval for publicly financed affordable housing developments. If approved by the Legislature, this constitutional amendment would then go to voters at a statewide January Legislative Update 3 January 26, 2021 election. AB 15: (Chiu) AB 15, would extend and modify key provisions of the author’s AB 3088, the COVID-19 Tenant Relief Act of 2020 from the last session. Among other provisions, the bill would extend the moratorium on evictions for nonpayment of rent from January 31, 2021 to December 31, 2021, as long as tenants pay at least 25% of the rent due. SB 15: (Portantino) SB 15, would provide incentive grants to local governments that rezone idle big-box retail or shopping center sites to allow the development of housing instead. AB 49 (Cottie Petrie-Norris) AB 49, is an intent bill to eliminate the California Debt Limit Allocation Committee which, among other projects, finances affordable housing. The bill would move the committee’s duties and authority to the California Tax Credit Allocation Committee, also in the State Treasurer’s Office. A recent State Auditor’s Report found that the California Debt Limit Allocation Committee had left $2.7 billion in bond authority on the table that could have been used for affordable housing when pollution control projects that had been allocated bonds fell through. AB 71: (Rivas, Chiu) AB 71, would create a comprehensive, statewide homelessness solutions program with ongoing funding, to be paid for by increasing taxes and closing loopholes on higher income individuals and corporations. Federal The Biden Administration was sworn into office on January 20. The first item on the agenda is to curb the spread of COVID-19. President Biden unveiled a $1.9 trillion emergency relief plan designed to deliver direct aid to families, businesses, and communities, as well as focus on coronavirus testing and vaccine production and delivery. Key components of the package include $350 billion to state and local governments, $15 billion for small business grant programs, $160 billion for schools, $25 billion in rental assistance for low and moderate-income households who have lost jobs during the pandemic, a $15-dollar minimum wage, $20 billion for vaccines and $50 billion for testing. Tri-Valley Cities Coalition During the month of January, the Tri-Valley Cities Mayors’, Managers’, and Liaisons’ meetings reconvened. Townsend Public Affairs presented a Legislative briefing. The next meeting is February 2, where each City/Town will be presenting their legislative priorities to the coalition along with recommendations for changes to the Tri-Valley Cities Legislative Framework. January Legislative Update 4 January 26, 2021 Grants Program At the beginning of the calendar year there are 4 grant applications pending totaling $3.65 million. During the month of January staff submitted a Letter of Intent for REAP grant funding and a CalRecycle Grant application for refillable water stations. Prepared by: Diane Friedmann Assistant to the Town Manager Reviewed by: Joseph Calabrigo Town Manager