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Bill Number Topic Summary SB 478 Housing This bill prohibits a local agency from imposing a floor area (Wiener) Streamlining ratio standard that is less than 1.0 on a housing development project that consists of 3 to 7 units, or less than 1.25 on a housing development project that consists of 8 to 10 units. Analysis The following provides an initial analysis of some of the key housing -related bills outlined in Table 1. Staff notes that much of the legislation is complex, and will require additional review and analysis to determine the full extent of its local implications. AB 215 (Chiu) The key provision of this bill adds a new step into the Housing Element process, requiring a 30 -day public posting and 10 day response period for the Draft Housing Element before it is submitted to HCD for their initial review. The probable outcome of this requirement is either that the City will have to either accelerate its initial work to accommodate the public review period prior to submitting the Housing Element to HCD or extend the date for adoption of the Housing Element. Staff and the professional services team are evaluating the effect of this change on the overall project schedule and will revise it accordingly.' AB 602 (Grayson) This bill places additional requirements for development impact fee nexus studies, as required under the Mitigation Fee Act, AB 1600. Any such study prepared on or after January 1, 2022 would be provide additional justification and analysis for the fees proposed to support new community facilities, with respect to existing and proposed levels of service. For any nexus study adopted after July 1, 2022, the bill would also require cities not electing to use a per square foot -basis for calculating impact fees, to make findings as to why that would not be an appropriate metric to use. In the next development impact fee update, the City will need to consider use of square footage based calculation method for housing developments and show why an alternative (non -square footage -based) method is more appropriate if the City decides not to adopt square footage -based calculations. AB 787 (Gabriel) This bill would allow the City to include in its annual report to the State regarding housing production (Annual Planning Report or APR), units resulting from conversion of existing market -rate units to deed restricted moderate rate units, ' Although the Housing Element is due on January 31, 2023, State law provides for a 120 -day "grace period" after the due date, during which a jurisdiction would not be found to be non-compliant or subject to penalties for failing to adopt the updated Housing Element. A separate bill, AB 1398, also includes some revisions to the Housing Element process, to require both adoption of the Housing Element and a letter of substantial compliance to have been received from HCD within the grace period, effectively requiring adoption less than 120 days after the due date to allow time for the determination of compliance letter to be issued by HCD. Page 4 of 8