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<ns0:Description>
<ns0:Id>20250SB__077296AMD</ns0:Id>
<ns0:VersionNum>96</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-21</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-04-22</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-07-08</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-07-17</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>772</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Cabaldon</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthor: Assembly Member Caloza)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Cabaldon</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Caloza</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to amend Sections 53559 and 53559.1 of the Health and Safety Code, relating to housing. </ns0:Title>
<ns0:RelatingClause>housing</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Infill Infrastructure Grant Program of 2019: applications: eligibility.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law establishes the Infill Infrastructure Grant Program of 2019 (program), which requires the Department of Housing and Community Development, upon appropriation of funds by the Legislature, to establish and administer a grant program to allocate those funds to eligible applicants to fund capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area. Existing law requires the department to administer a specified competitive application process for capital improvement projects for large jurisdictions, as defined. For these purposes, existing law defines a qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins
parcels that are developed with urban uses.</html:p>
<html:p> This bill would expand the definition of qualifying infill project to include a
residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously developed with urban uses.</html:p>
<html:p>Existing law requires the department, in its review of applications, to rank affected qualifying infill areas and catalytic
qualifying infill areas based on specified criteria, including the qualifying infill area’s or catalytic qualifying infill area’s inclusion of, or proximity to, a train station or major transit stop and the proximity of housing to existing or planned parks, employment or retail centers, schools, or social services.</html:p>
<html:p>This bill would revise these provisions to require the department to rank applications, as described above, based on the qualifying infill area’s or catalytic qualifying infill area’s inclusion of, or proximity or accessibility to, a transit station or major transit stop or walkability to essential services or businesses. The bill would additionally revise these provisions to require the department’s ranking to be based on the proximity of housing to services, rather than social services.</html:p>
<html:p>Existing law requires a qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant can be awarded under the program to meet specified conditions, including, among others, being located in an area designated for mixed-use or residential development, as specified.</html:p>
<html:p>This bill would additionally allow the project to be located in an area that allows for mixed-use or residential development pursuant to a housing development that is in compliance with certain provisions deeming a housing development an allowable use or subject to streamlined, ministerial
approval.</html:p>
<html:p>Existing law defines various terms for the purposes of the program, including, “capital improvement project,” “catalytic qualifying infill area,” “eligible applicant,” “urbanized area,” and “urban uses.”</html:p>
<html:p>This bill would revise these definitions. The bill would additionally define the terms “major transit stop” and “walkability.”</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
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<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_A545BBE8-8830-4223-B195-E7470137E881">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 53559 of the
<ns0:DocName>Health and Safety Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_F89ADF0B-3424-4679-8AEC-4B2CCBDA8537">
<ns0:Num>53559.</ns0:Num>
<ns0:LawSectionVersion id="id_2C52D6BF-EACE-4C46-A7E8-6DD06C2808A5">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Infill Infrastructure Grant Program of 2019 is hereby established to be administered by the department.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Upon appropriation by the Legislature of funds for purposes of this part, the department shall establish and administer a grant program to allocate those funds to selected capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area pursuant to the requirements of this section. The department shall determine amounts, if any, to be made available for qualifying infill projects, qualifying infill areas, or catalytic qualifying infill areas.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Except for funds appropriated or set aside for small jurisdictions for grants pursuant to subdivision (e), the department shall administer a competitive application process for capital improvement projects for large jurisdictions pursuant to this subdivision.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Except for grants for qualifying infill areas or catalytic qualifying infill areas, the department shall do all of the following for grants made pursuant to this subdivision:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Make program funds available at the same time it makes funds, if any, available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Rate and rank
applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this part in addition to those used in the Multifamily Housing Program.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Administer funds in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
For purposes of awarding grants pursuant to the competitive application process required by this subdivision, “qualifying infill project” means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site
where at least 75 percent of the perimeter of the site adjoins parcels that are developed or have been previously developed with urban uses.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In its review and ranking of applications for the award of capital improvement project grants, the department shall rank the affected qualifying infill areas based on the following priorities:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Project readiness, which shall include all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
A demonstration that the area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
A demonstration
that the eligible applicant can secure sufficient funding commitments derived from sources other than this part for the timely development of a qualifying infill area.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The depth and duration of the affordability of the housing proposed for a qualifying infill area.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The extent to which the average residential densities on the parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The qualifying infill area’s inclusion of, or proximity or accessibility to, a transit station or major transit stop or walkability to essential services or businesses.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
The proximity of housing to parks, employment or retail centers,
schools, or services.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
The qualifying infill area location’s consistency with an adopted sustainable communities strategy pursuant to Section 65080 of the Government Code, alternative planning strategy pursuant to Section 65450 of the Government Code, or other adopted regional growth plan intended to foster efficient land use.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
For qualifying infill areas, in awarding funds under the program, the department shall provide additional points or preference to projects located in jurisdictions that are designated prohousing pursuant to subdivision (c) of Section 65589.9 of the Government Code, in the manner determined by the department pursuant to subdivision (d) of Section 65589.9 of the Government Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In
allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable geographic distribution of funds.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For purposes of awarding grants pursuant to the competitive application process required by this subdivision or subparagraph (B) of paragraph (2) of subdivision (c), “qualifying infill area” means a contiguous area located within an urbanized area (i) that has been previously developed, or where at least 75 percent of the perimeter of the area adjoins parcels that are developed with urban uses, and (ii) in which at least one development application has been approved or is pending approval for a residential or mixed-use residential project that meets the definition and criteria in this section for a qualifying infill project.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The department shall administer an over-the-counter application process for grants funded by the allocation specified in the appropriation or paragraph (2) of subdivision (a) of Section 53559.2 for capital improvement projects for small jurisdictions, pursuant to this subdivision.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Eligible applicants shall submit the following information in the application request for funding:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A complete description of the qualifying infill project or qualifying infill area and documentation of how the infill project or infill area meets the requirements of this section.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A complete description of the capital improvement project and requested grant funding for the project, how the project is necessary
to support the development of housing, and how it meets the criteria of this section.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Documentation that specifies how the application meets all of the requirements of subdivision (g).
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
Except as provided in clause (ii), a financial document
that shows the gap financing needed for the project.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
For a qualifying infill project located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in clause (i) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
Except as provided by clause (ii), documentation of all necessary entitlement and
permits, and a certification from the applicant that the project is shovel-ready.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
For a qualifying infill project located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in clause (i) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The department may establish a per-unit formula to determine the amount of funds awarded pursuant to this subdivision.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
For purposes of awarding grants pursuant to the over-the-counter application process required by this subdivision:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
“Qualifying infill area” means a contiguous area located within an urbanized area that meets either of the following criteria:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The area contains sites included on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code, and at least 50 percent of the perimeter
of the area shall adjoin parcels that are developed with urban uses.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The capital improvement project for which funding is requested is necessary, as documented by an environmental review or some other adopted planning document, to make the area suitable and available for residential development, or to allow the area to accommodate housing for additional income levels, and the area otherwise meets the requirements for inclusion on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code. At least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
“Qualifying infill project” means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 50 percent of the perimeter of the site adjoins parcels that are developed with urban uses.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For catalytic qualifying infill areas, grants for small jurisdictions and large jurisdictions shall be provided using a selection process established by the department that meets all of the following requirements:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Applicants shall meet both of the following minimum threshold requirements:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Readiness, which includes both of the
following:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
A demonstration that the catalytic qualifying infill area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
A demonstration that the eligible applicant has a viable plan to secure sufficient funding, derived from sources other than this part for the timely development of housing within a catalytic qualifying infill area.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
A demonstration of the catalytic qualifying infill area location’s consistency with an adopted sustainable communities strategy or alternative planning strategy pursuant to Section 65080 of the Government Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The department shall, at a minimum, rank the affected catalytic qualifying infill areas applications for small jurisdictions and large jurisdictions based on the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The number of housing units, including affordable units as required in paragraph (2) of subdivision (g) to be developed within the catalytic qualifying infill area.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The depth and duration of the affordability of the housing proposed for within the catalytic qualifying infill area.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The extent to which the average residential densities on the parcel or parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The catalytic qualifying infill area’s inclusion of, or proximity or accessibility to, a transit station, major transit stop, or other areas yielding significant reductions in vehicle miles traveled, or walkability to essential services and businesses.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
The proximity of planned housing within the catalytic qualifying infill area used in the calculation of the eligible grant amount to existing or planned parks, employment or retail centers, schools, or services.
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
Existing or planned ordinances and other zoning or building provisions that facilitate adaptive reuse, including, but not limited to, demonstration that, if the existing commercial, office, or retail structure intended for reuse as housing does not
occupy the entirety of the underlying parcel, the adaptive reuse project will be permitted to add to the existing building or structure provided that the addition is consistent with the existing or planned zoning of the parcel.
</html:p>
<html:p>
(vii)
<html:span class="EnSpace"/>
The extent to which local strategies or programs are in place to prevent the direct or indirect displacement of local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
</html:p>
<html:p>
(viii)
<html:span class="EnSpace"/>
The level of community outreach and engagement in project planning, including efforts to involve disadvantaged communities and low-income residents, particularly local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
</html:p>
<html:p>
(ix)
<html:span class="EnSpace"/>
Inclusion of any publicly owned lands within the designated catalytic qualifying infill area.
</html:p>
<html:p>
(x)
<html:span class="EnSpace"/>
Streamlining provisions related to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, establishment of streamlined, program-level California Environmental Quality Act analysis and certification of general plans, community plans, specific plans with accompanying environmental impact reports, and related documents and streamlining proposed projects, such as enabling a by-right approval process or by utilizing statutory and categorical exemptions as authorized by applicable law.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Eligible applicants shall submit the following information in the application request for
funding:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
A complete description of the catalytic qualifying infill area and documentation of how the catalytic qualifying infill area meets the requirements of this section.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
A complete description of the capital improvement project and requested grant funding, how the capital improvement project is necessary to support the development of housing, and how it meets the criteria of this section.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Documentation that specifies how the application meets all
of the requirements of subdivision (g).
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
(I)
<html:span class="EnSpace"/>
Except as provided in subclause (II), a financial document that shows the gap financing needed for the project.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in subclause (I) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
(I)
<html:span class="EnSpace"/>
Except as provided by subclause (II), documentation of all necessary entitlement and
permits, and a certification from the applicant that the capital improvement project is shovel-ready.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in subclause (I) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In allocating funds pursuant to this subdivision, the
department, to the maximum extent feasible, shall ensure a reasonable distribution of funds, including consideration of differing population sizes of localities and geographic location. Applications shall be considered and ranked against applications of localities of similar size and scope. For the purposes of this paragraph, the population of a county shall be the population in the unincorporated area.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The department shall report the following information in its annual report due in 2024, as required by Section 50408:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Specific uses of the funds for capital improvement projects.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Locations of awarded catalytic qualifying infill area grants, including both of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Number of awards by geography, including urban and rural.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The types of buildings adapted to residential use.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Total units to be created within the awarded qualifying infill areas, including anticipated affordability levels.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Data on catalytic qualifying infill area projects funded, such as project sizes, adaptive reuse ordinances adopted, and by-right sites.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
A qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant may be awarded pursuant to paragraph (2) of subdivision (c), subdivision (d), subdivision
(e), or subdivision (f) shall meet all of the following conditions:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A qualifying infill area or catalytic qualifying infill area shall be located in a city, county, or city and county in which the general plan of the city, county, or city and county has an adopted housing element that has been found by the department, pursuant to Section 65585 of the Government Code, to be in compliance with the requirements of Article 10.6 (commencing with Section
65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This paragraph does not apply to a qualifying infill project.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Include not less than 15 percent of affordable units, as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
For projects that contain both rental and ownership units, units of either or both product types may be included in the calculation of the affordability criteria.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
To the extent included in a project grant application, for the purpose of calculating the percentage of affordable units, the department may
consider the entire master development in which
the development seeking grant funding is included.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Where applicable, an applicant may include a replacement housing plan to ensure that dwelling units housing persons and families of low or moderate income are not removed from the low- and moderate-income housing market. Residential units to be replaced shall not be counted toward meeting the affordability threshold required for eligibility for funding under this section.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
For the purposes of this subdivision, “affordable unit” means a unit that is made available at an affordable rent, as defined in Section 50053, to a household earning no more than 60 percent of the area median income or at an affordable housing cost, as defined in Section 50052.5, to a household earning no more than 120 percent of the area median income. Rental units shall be subject to a recorded
covenant that ensures affordability for at least 55 years. Ownership units shall initially be sold to and occupied by a qualified household, and shall be subject to a recorded covenant that includes either a resale restriction for at least 30 years or equity sharing upon resale.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Include average
residential densities on the parcels to be developed that are equal to or greater than the densities described in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2 of the Government Code, except that a project located in a rural area as defined in Section 50199.21 shall include average residential densities on the parcels to be developed of at least 10 units per acre.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Be located in an area that allows for mixed-use or residential development pursuant to one of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A general plan adopted pursuant to Section 65300 of the Government Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A sustainable communities strategy adopted pursuant to Section 65080 of the Government Code.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A specific plan adopted pursuant to Section 65450 of the Government Code.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
A Workforce Housing Opportunity Zone established pursuant to Section 65620 of the Government Code.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
A housing sustainability district established pursuant to Section 66201 of the Government Code.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
A housing development that is in compliance with Section 65913.4 of the Government Code, or Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
Funds awarded pursuant to this section shall supplement, not supplant, other available funding.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The department shall adopt guidelines for the operation of the grant program. The guidelines shall include performance standards and authorize the reversion of grant awards if the awardee has not substantially met the performance standards.
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Performance standards shall include timelines for commencement of construction of a capital improvement project, completion of a capital improvement project, and commencement and completion of associated housing development on an identified infill site, as identified in the qualifying infill project, qualifying infill area, or catalytic qualifying infill area application.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Catalytic qualifying infill area awards may be conditioned upon the local jurisdiction completing any actions to expedite housing development rezoning to
accommodate density, completing environmental reviews to support ministerial approvals of housing, and granting fee waivers or other incentives to expedite housing development that were used in qualifying for an award.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
The department shall require recipients of funds to report on progress of capital improvement projects, including, but not limited to, substantiation of grant expenditures and housing outcomes, including levels of affordability as provided in the application.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
The guidelines may also provide for recapture of grants awarded, but for which development of the related housing units has not progressed in a reasonable period of time from the date of the grant award, as determined by the department. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
For each fiscal year within the duration of the grant program, the department shall include within the report to the Governor and the Legislature, required by Section 50408, information on its activities relating to the grant program activities related to qualifying infill projects and qualifying infill areas, including small jurisdiction funding activities. The report shall include, but is not limited to, the following information:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A summary of the projects that received grants under the program for each fiscal year that grants were awarded.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The description, location, and estimated date of completion for each project that
received a grant award under the program.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An update on the status of each project that received a grant award under the program, and the number of housing units created or facilitated by the program.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
Notwithstanding paragraph (3) of subdivision (g), a city with a population greater than 100,000 in a standard metropolitan statistical area or a population of less than 2,000,000 may petition the department for, and the department may grant, an exception to the jurisdiction’s classification pursuant to subdivisions (d) to (f), inclusive, of Section 65583.2 of the Government Code, if the city believes it is unable to meet the density requirements specified in paragraph (3) of subdivision (g). The city shall submit the petition with its application and shall include the reasons
why the city believes the exception is warranted. The city shall provide information supporting the need for the exception, including, but not limited to, any limitations that the city may encounter in meeting the density requirements specified in paragraph (3) of subdivision (g). Any exception shall be for the purposes of this section only. This subdivision shall become inoperative on January 1, 2026.
</html:p>
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<ns0:BillSection id="id_F657B745-B14F-4FB3-85D1-CCD454370027">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 53559.1 of the
<ns0:DocName>Health and Safety Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_1C9750D3-63AA-4CAA-88CA-B0BD16F18CDB">
<ns0:Num>53559.1.</ns0:Num>
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<ns0:Content>
<html:p>For the purposes of this part, the following definitions apply:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Adaptive reuse” means the repurposing of building structures for residential purposes, such as former office use, commercial use, or business parks. When referring to building structures, adaptive reuse means retrofitting and repurposing of existing buildings that create new residential rental units, and expressly excludes a project that involves rehabilitation of any construction affecting existing residential units that are, or have been, recently occupied.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Capital improvement project” means the construction, rehabilitation, demolition, relocation, preservation,
acquisition, or other physical improvement of a capital asset, as defined in
subdivision (a) of Section 16727 of the Government Code, that is an integral part of, or necessary to facilitate the development of, a qualifying infill project or qualifying infill area. Capital improvement projects that may be funded under the grant program established by this part include, but are not limited to, those related to the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The creation, development, or rehabilitation of parks or open space.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Water, sewer, or other utility service improvements.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Transit linkages or facilities, including, but not limited to, related access plazas or pathways, or bus or transit shelters.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Facilities that support pedestrian or
bicycle transit.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Traffic mitigation.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Sidewalk or streetscape improvements, including, but not limited to, the reconstruction or resurfacing of sidewalks and streets or the installation of lighting, signage, or other related amenities.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
Adaptive reuse.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
Site preparation or demolition related to the capital improvement project or planned housing development used in calculating
the eligible grant amount.
</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
Nature-based solutions that are proven to reduce the risk from climate change-driven natural disasters and risks like wildfire, flooding, heat, and sea level rise. For purposes of this paragraph, “nature-based solutions” means sustainable planning, design, environmental management, and engineering practices that weave natural features or processes into the built environment to promote adaptation and resilience.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Catalytic qualifying infill area” means a contiguous area or multiple noncontiguous parcels located within an urbanized area that meet all of the following requirements:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The contiguous area or noncontiguous parcels have been previously developed, or at least 75 percent of the
perimeter of each parcel or area adjoins parcels that are developed or have been previously developed with urban uses, provided that, for small jurisdiction applicants, the perimeter requirements in clause (i) of subparagraph (A) of paragraph (4) of subdivision (e) of Section 53559 shall apply. For purposes of this paragraph, perimeters of a parcel bordering navigable bodies of water shall not be included in the calculation determining if 75 percent of the perimeter adjoins parcels that are developed or have been previously developed with urban uses.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
No parcel within or adjoining the area is classified as agricultural or natural and working lands.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The area or areas constitute a large catalytic investment in land that will accommodate a mix of uses, including affordable
or
mixed-income housing.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
“Disadvantaged communities” means any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Concentrated areas of poverty.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Areas of high segregation and poverty and areas of low to moderate access to opportunity, as identified in opportunity area maps developed by the department and the California Tax Credit Allocation Committee.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Communities of concern, disadvantaged communities identified pursuant to Section 39711, and low-income communities as defined in subdivision (d) of Section 39713.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Areas of high housing cost burdens.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Areas with high vulnerability of displacement; areas related to tribal entities.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Any other areas experiencing disproportionate impacts of California’s housing and climate crisis.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Applicants may propose alternative definitions to disadvantaged communities in consultation with the department.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
“Eligible applicant” means any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A nonprofit or for-profit developer of a qualifying infill project.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A city, county, city and county, or public housing authority that has jurisdiction over a qualifying infill area or
catalytic qualifying infill area. A city, county, or city and county applying for funds for a qualifying infill area or a catalytic qualifying infill area shall not be required to have a developer coapplicant. A metropolitan planning organization may participate as a coapplicant.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The duly constituted governing body of an Indian reservation or rancheria that has jurisdiction over a qualifying infill area or a tribally designated housing entity as defined in Section 4103 of Title 25 of the United States Code and Section 50104.6.5 that is the developer of a qualifying infill project.
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A tribal entity may apply as a small jurisdiction or large jurisdiction, but may only apply as one or the other for any single qualifying infill project or qualifying infill area.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The department may modify or waive requirements of this paragraph consistent with the intent of paragraphs (1) and (2) of subdivision (p) of Section 50406 to allow tribal entities to access funding.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
“Locality” means a city, county, or city and county where a county means the unincorporated areas of that county.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
“Small jurisdiction” means a county with a population of less than 250,000 as of January 1, 2019, or any city within that county.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
“Large jurisdiction” means a county that is not a small jurisdiction, or any city within that county.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
“Major transit stop” has the same
meaning as defined in subdivision (b) of Section 21155 of the Public Resources Code.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
“Urbanized area” means an incorporated city or urbanized area as defined by the United States Census Bureau.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
“Urban uses” means any improved park, residential, commercial, industrial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
“Walkability” means the parcels or parcel where the development will occur is within one mile of six or more of any of the following amenities:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A supermarket or grocery store.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A public park.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A community center.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A pharmacy or drugstore.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
A medical clinic or hospital.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
A public library.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
A school that maintains a kindergarten or any of grades 1 to 12, inclusive.
</html:p>
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