SB 6 - The Neighborhood Homes Act (AKA Dead Malls to Housing) - Part 2

If you’re still reading about SB 6, bless you. Part One is here if you missed it.

PREVAILING WAGE, SKILLED AND TRAINED WORKERS

For a housing development project to be considered an allowable use on a “neighborhood lot,” SB 6 would require that a developer certify (1) the development is a public work, or that all construction workers will be paid prevailing wages, and (2) that a skilled and trained workforce will be used to perform all construction work on the development. (See Public Contract Code section 2601). Generally, this means that at least one third of the workers who can build housing on “neighborhood lots” must be graduates of apprenticeship programs. Many see this as requiring union labor, because unions run most of the state’s apprenticeships.

According to CalMatters: “Affordable housing developers hoping to get units into abandoned Sears and Toys ’R’ Us stores across the state say the provision will make projects impractical in areas with low union membership, namely outside of the Bay Area and Los Angeles.”

Any contractor or subcontractor that fails to use a skilled and trained workforce on an SB 6 project is subject to a civil penalty of $200 per day for each worker employed in contravention of the skilled and trained workforce requirement. Penalties may be assessed by the Labor Commissioner within 18 months of completion of the development using the same procedures for issuance of civil wage and penalty assessments pursuant to Section 1741 of the Labor Code, and may be reviewed pursuant to the same procedures in Section 1742 of the Labor Code. (Proposed Gov. Code 65852.23(b)(6)(B)(ii)(III)).

NO SHORT TERM VACATION RENTALS, NO HOTEL/MOTEL/HOLIDAY INN

The Housing Accountability Act prohibits local agencies from disapproving or requiring density reductions in certain types of residential projects.

A local agency cannot disapprove, or condition approval in a manner that renders infeasible, a housing development for very low, low-, or moderate-income households or an emergency shelter unless the local agency makes specified written findings based on a preponderance of the evidence. A local agency can require a housing development project to comply with objective, quantifiable, written development standards, conditions, and policies consistent with meeting the jurisdiction’s share of the regional housing need, with some exceptions.

SB6 would provide that for purposes of the Housing Accountability Act, a proposed housing development project is consistent, compliant, and in conformity with an applicable requirement if the housing development project is consistent with the standards applied to the parcel pursuant to the Neighborhood Homes Act and if none of the square footage in the project is designated for hotel, motel, bed and breakfast inn, or other transient lodging use, except for a residential hotel. Put simply, the Housing Accountability Act will prohibit a local jurisdiction from disapproving or requiring density reductions in a Neighborhood Homes Act-compliant project.

Further, under SB 6, local agencies must require that rental of any unit created pursuant to the bill’s provisions be for a term longer than 30 days.

“NEIGHBORHOOD LOT” PROJECTS CAN BE STREAMLINED

Existing law provides a streamlined, ministerial process for approving housing developments that comply with applicable objective local planning standards—including the general plan, zoning ordinances, and objective design review standards— and meet certain affordability and labor requirements. (See more here, here and here).

The Planning and Zoning Law also authorizes a development proponent to submit an application for a multifamily housing development that is subject to a streamlined, ministerial approval process, and not subject to a conditional use permit, if the development satisfies specified objective planning standards, including a requirement that the site on which the development is proposed is zoned for residential use or residential mixed-use development, or has a general plan designation that allows residential use or a mix of residential and nonresidential uses, with at least 2/3 of the square footage of the development designated for residential use. The proposed development is also required to be consistent with objective zoning standards, objective subdivision standards, and objective design review standards in effect at the time the development is submitted to the local government.

SB 6 adds qualifying '“neighborhood lots” to the types of projects entitled to streamlining under California law.

Stay tuned for Part 3.