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(a) A city or county may transfer a percentage
of its share of the regional housing needs to another city or county, if all
of the following requirements are met:
(1) Both the receiving
city or county and the transferring city or county comply with all of the
conditions specified in subdivision (b).
(2) The council of
governments or the department reviews the findings made pursuant to paragraph
(2) of subdivision (c).
(3) The transfer does not
occur more than once in a five-year housing element interval pursuant to
subdivision (b) of Section 65588.
(4) The procedures
specified in subdivision (c) are
met.
(b) (1) Except as provided
in paragraph (5) of subdivision
(c) of Section 65584, a
city or county transferring a share of its regional housing needs shall first
have met, in the current or previous housing element cycle, at least 15
percent of its existing share of the region’s affordable housing needs,
as defined in Section 65584, in the very low and lower income category of
income groups defined in Section 50052.5 of the Health and Safety Code if it
proposes to transfer not more than 15 percent.
In no event, however,
shall the city or county transfer more than 500 dwelling units in a housing
element cycle.
(2) A city or county shall
transfer its regional housing needs in the same proportion by income group as
the jurisdiction has met its regional housing needs.
(3) The transfer shall be
only between jurisdictions that are contiguously situated or between a
receiving city or county that is within 10 miles of the territory of the
community of the donor city or county. If both the donor community and
receiving community are counties, the donor county shall be adjacent to, in
the same council of governments region as, and in the same housing market as,
the receiving county. The sites on which any transferred housing units will
be constructed shall be in the receiving city or county, and within the same
housing market area as the jurisdiction of the donor city or county.
(4) The transferring and
receiving city or county shall have adopted, and shall be implementing, a
housing element in substantial compliance with Section 65583.
(5) The transferring city
or county and the receiving city or county shall have completed, and provided
to the department, the annual report required by subdivision (b) of Section
65400.
(c) (1) The donor city or
county and the receiving city or county shall, at least 45 days prior to the
transfer, hold a public hearing, after providing notice pursuant to Section
6062, to solicit public comments on the draft contract, including its terms,
conditions, and determinations.
(2) The transferring and
the receiving city or county shall do all of the following:
(A) Adopt a finding, based
on substantial evidence on the record, that the transfer of the regional
housing need pursuant to the terms of the agreement will not cause or
exacerbate racial, ethnic, or economic segregation and will not create a
detrimental financial impact upon the receiving city or county.
(B) Adopt a finding, based
on substantial evidence on the record, that the transfer of the regional
housing need will result in the construction of a greater number of similar
type dwelling units than if the transfer does not occur.
(3) (A) The transferring
city or county and the receiving city or county shall enter into an agreement
to transfer units eligible under subdivision (b). A copy of this agreement
shall be sent to the council of governments and the department to be kept on
file for public examination.
(B) The agreement shall
include a plan and schedule for timely construction of dwelling units,
including, in addition to site identification, identification of and
timeframes for applying for sufficient subsidy or mortgage financing if the
units need a subsidy or mortgage financing, and a finding that sufficient
services and public facilities will be provided.
(4) At least 60 days prior
to the transfer, the receiving city or county planning agency and the
transferring city or county planning agency shall submit to the department a
draft amendment to reflect the identified transferred units. A transferring
agency may reduce its housing needs only to the extent that it had not
previously reduced its housing needs pursuant to paragraph (2) of subdivision
(b) of Section 65583. A county planning agency that has its share of the
regional housing need reduced pursuant to paragraph (5) of subdivision (c) of
Section 65584 shall comply with this section. A receiving city or county
shall, in addition to any other provisions of the article, identify in its
housing element sufficient sites to meet its initial low- and moderate-income
housing needs and sufficient sites to meet all transferred housing needs.
(5) The department shall review the
draft amendment and report its written findings to the planning agency within
45 days of its receipt.
(6) The department’s
review shall follow the same procedure, requirements, and responsibilities of
Sections 65583, 65585, 65587, and 65589.3. The court shall consider any
written findings submitted by the department.
(d) No transfer made
pursuant to this section shall affect the plans for a development that have
been submitted to a city or county for approval 45 days prior to the adoption
of the amendment to the housing element.
(e) No transfer made
pursuant to this section shall be counted toward any ordinance or policy of a
locality that specifically limits the number of units that may be
constructed.
(f) The Attorney General
or any other interested person shall have authority to enforce the terms of
the agreement and the provisions of this section.
(g) For a period of five
years after the transfer occurs, the report required by subdivision (b) of
Section 65400 shall include information on the status of transferred units,
implementation of the terms and conditions of the transfer contract, and
information on any dwelling units actually constructed, including the number,
type, location, and affordability requirements in place for these units.
(h) (1) At least 60 days
prior to the proposed transfer, the donor city or county shall submit the
proposed agreement to the council of governments, or to the department if
there is no council of governments that serves the city or county, for
review. The governing board of the council or the director shall determine
whether there is substantial evidence to support the terms, conditions, and
determinations of the agreement and whether the agreement complies with the
substantive and procedural requirements of this section. If the council or
the director finds that there is substantial
evidence to support the
terms, conditions, and determinations of the agreement, and that the
agreement complies with the substantive and procedural requirements of this
section, the participating jurisdictions may proceed with the agreement. If
the governing board or the director finds that there is not substantial
evidence to support the terms, conditions, and findings of the agreement, or
that the agreement does not comply with the substantive and procedural
requirements of this section, the board or the director may make
recommendations for revising or terminating the agreement. The participating
jurisdictions shall then include those revisions, if any, or terminate the
agreement.
(2) The council or the
director may convene a committee to advise the council or the director in
conducting this review. The donor city or county and the receiving community
shall pay the council’s or the department’s costs associated with
the committee.
Neither the donor city or
county, nor the receiving city or county, may expend moneys in its Low and
Moderate Income Housing Fund of its redevelopment agency for costs associated
with the committee.
(3) Membership of the
committee appointed pursuant to paragraph (2) shall include all of the
following:
(A) One representative
appointed by the director.
(B) One representative
appointed by the donor agency.
(C) One representative
appointed by the receiving community.
(D) Two low- and
moderate-income housing advocates, appointed by the director, who represent
those persons in that region.
(i) (1) The receiving city
or county shall construct the housing units within three years of the date
that the transfer contract is entered into pursuant to this section.
This requirement shall be
met by documenting that a building permit has been issued and all fees have
been paid.
(2) Any portion of a
regional share allocation that is transferred to another jurisdiction, and
that is not constructed within the three-year deadline set forth in paragraph
(1), shall be reallocated by the council of governments to the transferring
city or county, and the transferring city or county shall modify its zoning
ordinance, if necessary, and amend its housing element to reflect the
reallocated units.
(3) If, at the end of the
five-year housing element planning period, any portion of a regional share
allocation that is transferred to another jurisdiction is not yet
constructed, the council of governments shall add the
unbuilt units to the
normal regional fair share allocation and reallocate that amount to either of
the following:
(A) The receiving city, if
the three-year deadline for construction has not yet occurred; or
(B) The transferring city,
if the three-year deadline for construction has occurred.
(4) If the transferred
units are not constructed within three years, the nonperforming jurisdictions
participating in the transfer of regional share allocations shall be
precluded from transferring their regional shares, pursuant to this section,
for the planning period of the next periodic update of the housing element.
(j) On or after January 1,
2000, no transferring city or county shall enter into an agreement pursuant
to this section unless a later enacted statute, which is enacted before
January 1, 2000, deletes or extends that date.
(k) If Article XXXIV of
the California Constitution is applicable, the receiving city or county shall
certify that it has sufficient authority under Article XXXIV of the
California Constitution to allow development of units transferred pursuant to
this section.
(l) The receiving city or
county shall not, within three years of the date of the transfer agreement
entered into pursuant to this section, or until transferred units are
constructed, whichever is longer, enter into a contract to transfer units
outside the territorial jurisdiction of the agency pursuant to this section.
(m) Communities that have
transferred a portion of their share of the regional housing need to another
city or county pursuant to this section shall comply with all other
provisions of law for purposes of meeting the remaining regional housing need
not transferred, including compliance with the provisions of Section 65589.5.
(n) As used in this
section, “housing market area” means the area determined by a
council of governments or the department pursuant to Section 65584, and based
upon market demand for housing, employment opportunities, the availability of
suitable sites and public facilities, and commuting patterns.
(o) This section shall not
be construed to interfere with the right of counties to transfer shares of
regional housing needs pursuant to paragraph (5) of subdivision (c) of
Section 65584.
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