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This legislation provides an additional tool for cities to accommodate RHNA through strategic upzoning to allow for small scale multifamily projects. This may be of particular benefit to cities that are largely built out and may have limited sites available to meet RHNA. The bill maintains local control since it does not mandate or require such rezonings, and provides useful flexibility for cities who may otherwise struggle to find sites to meet their RHNA. AB 2345 (Gonzalez) Planning and zoning: density bonuses: annual report: affordable housing. This bill would make a number of changes to Housing Density Bonus Law, by extending the range of allowable density bonuses, and the number of incentives and concessions available to projects including certain proportions of affordable housing units. Under the law, projects could receive up to a 50% density bonus with specified proportions of affordable units, and up to six incentives (instead of four) for projects that are 100% affordable and within one half mile of transit. The bill would also require reporting to HCD of the number of density bonus applications received and approved, as part of the Annual Planning Report (APR). Recommended Position: Oppose The reasons to oppose this bill are similar to those noted for SB1085, which also proposes to extend allowable density bonuses. As described, State law provides generous density bonuses and opportunities for development concessions today — the bill would allow for substantially larger projects (up to 50% greater) than envisioned in local zoning, with potential waivers of controls on limitations such as height, setbacks, and lot coverage that help to ensure projects are consistent and compatible with neighborhood character. AB 725 (Wicks) General plans: housing element: moderate-income and above moderate-income housing: suburban and metropolitan jurisdictions Local housing elements are required to include an inventory of land suitable for residential development, that are sufficient to provide for the jurisdiction's share of RHNA. This bill would require that at least a quarter of the city's moderate-income and above moderate-income RHNA be allocated to sites zoned for multi-family housing. The intent of the bill is to encourage a greater share of moderate- and above-moderate units to be accommodated through multi-family, versus single family zoning, thereby increasing overall housing opportunities. Recommended Position: Oppose Existing housing element law provides extensive regulation on the types of sites and allowable zoning parameters that may be used to demonstrate sufficient RHNA capacity. These regulations have become increasingly stringent over time, and add significant challenges and complexity to the housing elements sites inventory process. Adding further limitations to which sites may be counted towards the moderate- and above-moderate RHNA will make this process even more complex and difficult, and reduce the ability of the local jurisdiction to plan for future housing needs in a way that is sensitive to local conditions, and reflective of local market demands and conditions. Page 5 of 11