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9.A. - Page 1 <br /> RE PO RT <br /> To the Honorable Mayor and City Council <br /> From the Cit Mana er <br /> October 7, 2013 <br /> SUBJECT <br /> Assembly Bill 1229 <br /> RECOMMENDATION <br /> Provide direction to the Mayor regarding AB 1229, and if appropriate, authorize the <br /> Mayor to sign the attached letter supporting AB 1229 <br /> BACKGROUND <br /> With the loss of Redevelopment authority, cities have generally lost the ability to impose <br /> affordability conditions on rental housing projects. Redevelopment Law required <br /> agencies to provide affordable housing within project areas and the usual device was to <br /> require housing developers set aside a portion of their units, or in some cities pay in lieu <br /> fees, to provide affordable housing. In 2009, a court case in Los Angeles (Palmer/Sixth <br /> Street Properties L.P. v. Citv of Los Anqe/es (2009) 175 Cal.App.4th 1396) invalidated <br /> the cities' inclusionary requirements as applied to rental housing where there was not <br /> an independent basis for the obligation (e.g., a negotiated development agreement, <br /> granting of a density bonus, etc.), and thus prevented cities from requiring developers to <br /> build affordable units in rental housing projects. <br /> ANALYSIS <br /> Assembly Bill 1229 proposes to amend Section 65850 of the Government Code, which <br /> deals with the authority of cities to regulate land use and zoning within their jurisdiction, <br /> to: <br /> "[e]stablish, as a condition of development, inclusionary housing <br /> requirements, which may require the provision of residential units <br /> affordable to, and occupied by, owners or tenants whose household <br /> incomes do not exceed the limits for lower income, very low income, or <br /> extremely low income households specified in Sections 50079.5, 50105, <br /> and 50106 of the Health and Safety Code" <br /> This bill was approved by the state legislature and is on the Governor's desk awaiting <br /> either his signature or a veto. Because cities are limited in their ability to provide or <br /> require affordable housing, the issue of providing new opportunities to meet this housing <br /> need is an important policy discussion. The legislation does not mandate that cities <br />