Report 2020-108 Recommendation Responses
Report 2020-108: California's Housing Agencies: The State Must Overhaul Its Approach to Affordable Housing Development to Help Relieve Millions of Californians' Burdensome Housing Costs (Release Date: November 2020)
Recommendation for Legislative Action
To facilitate timely and needed affordable housing development in local jurisdictions that are not approving it, the Legislature should amend state law and consider the constitutionality of establishing an effective appeals process for developers of affordable housing projects. For example, it could consider doing the following:
- Create an appeals board within HCD to resolve disputes over affordable housing projects in a timely and fair manner. The Legislature should specify that the appeals board include at least one representative from local jurisdictions.
- Allow a developer of an affordable housing project to appeal to the appeals board if the local jurisdiction in which the developer has proposed the project is not on track to provide its needed lower-income units, if the project would contribute significantly to the local jurisdiction meeting that need, and if the local jurisdiction has unreasonably denied or delayed the project.
- Require the appeals board to render decisions on appeals in a timely manner and to approve an appeal for a project if it meets the criteria above and is consistent with state and local standards.
- Specify parameters for any subsequent litigation that challenges or enforces the state appeals board's decisions so that these decisions are enforceable and developers of affordable projects meeting reasonable standards can build as soon as is feasible.
Description of Legislative Action
AB 989 (Gabriel, 2021) would, until January 31, 2029, establish an Office of Housing Appeals (office) within HCD to review housing development projects that are alleged to have been denied or subject to conditions in violation of the Housing Accountability Act (Housing Act). The bill would establish housing appeals panels, consisting of administrative law judges with specified qualifications, within the office. The bill would authorize an applicant who proposes a housing development project that consists of five or more units pursuant to the Housing Act, to appeal a local agency's decision on the project application to a housing appeals panel. The bill would prohibit an applicant from bringing an action in court alleging a violation of the Housing Act for any housing development project prior to the final decision of the office, except as specified. The bill would provide that the statute of limitations for a claim alleging a violation of the Housing Act or any other claim relating to an action of the local agency on the housing development project at issue does not commence until the date of the final decision of the office. Finally, the bill would prescribe the appeal process and responsibilities of the applicant, the office and local agencies regarding the appeal process. This bill is pending in the Senate.
- Legislative Action Current As-of: November 2021
California State Auditor's Assessment of 1-Year Status: Legislation Introduced
Description of Legislative Action
AB 989 (Gabriel) would establish a Housing Accountability Committee to review appeals of affordable housing projects denied by a local government and to approve those projects if the denial violates the Housing Accountability Act. The bill would prescribe the qualifications of proposed housing developments that would be eligible for appeals and timelines within which applicants, the committee, and local agencies would be required to act. The bill would require, among other things, the local agency to transmit a copy of its decision and reasoning to the committee, and require the committee to vacate a local decision if it finds that the local agency disapproved the housing development or conditioned the approval of the housing development in violation of the Housing Accountability Act.
- Legislative Action Current As-of: May 2021
California State Auditor's Assessment of 6-Month Status: Legislation Introduced
Description of Legislative Action
AB 68 (Salas) states legislative intent to implement the recommendations in the audit.
- Legislative Action Current As-of: January 2021