2005 California Government Code Sections 65580-65589.8 Article 10.6. Housing Elements

65580.  The Legislature finds and declares as follows:
   (a) The availability of housing is of vital statewide importance,
and the early attainment of decent housing and a suitable living
environment for every Californian, including farmworkers, is a
priority of the highest order.
   (b) The early attainment of this goal requires the cooperative
participation of government and the private sector in an effort to
expand housing opportunities and accommodate the housing needs of
Californians of all economic levels.
   (c) The provision of housing affordable to low- and
moderate-income households requires the cooperation of all levels of
government.
   (d) Local and state governments have a responsibility to use the
powers vested in them to facilitate the improvement and development
of housing to make adequate provision for the housing needs of all
economic segments of the community.
   (e) The Legislature recognizes that in carrying out this
responsibility, each local government also has the responsibility to
consider economic, environmental, and fiscal factors and community
goals set forth in the general plan and to cooperate with other local
governments and the state in addressing regional housing needs.
65581.  It is the intent of the Legislature in enacting this
article:
   (a) To assure that counties and cities recognize their
responsibilities in contributing to the attainment of the state
housing goal.
   (b) To assure that counties and cities will prepare and implement
housing elements which, along with federal and state programs, will
move toward attainment of the state housing goal.
   (c) To recognize that each locality is best capable of determining
what efforts are required by it to contribute to the attainment of
the state housing goal, provided such a determination is compatible
with the state housing goal and regional housing needs.
   (d) To ensure that each local government cooperates with other
local governments in order to address regional housing needs.
65582.  As used in this article:
   (a) "Community," "locality," "local government," or "jurisdiction"
means a city, city and county, or county.
   (b) "Council of governments" means a single or multicounty council
created by a joint powers agreement pursuant to Chapter 5
(commencing with Section 6500) of Division 1 of Title 1.
   (c) "Department" means the Department of Housing and Community
Development.
   (d) "Housing element" or "element" means the housing element of
the community's general plan, as required pursuant to this article
and subdivision (c) of Section 65302.
65583.  The housing element shall consist of an identification and
analysis of existing and projected housing needs and a statement of
goals, policies, quantified objectives, financial resources, and
scheduled programs for the preservation, improvement, and development
of housing. The housing element shall identify adequate sites for
housing, including rental housing, factory-built housing, and
mobilehomes, and shall make adequate provision for the existing and
projected needs of all economic segments of the community. The
element shall contain all of the following:
   (a) An assessment of housing needs and an inventory of resources
and constraints relevant to the meeting of these needs. The
assessment and inventory shall include all of the following:
   (1) An analysis of population and employment trends and
documentation of projections and a quantification of the locality's
existing and projected housing needs for all income levels. These
existing and projected needs shall include the locality's share of
the regional housing need in accordance with Section 65584.
   (2) An analysis and documentation of household characteristics,
including level of payment compared to ability to pay, housing
characteristics, including overcrowding, and housing stock condition.
   (3) An inventory of land suitable for residential development,
including vacant sites and sites having potential for redevelopment,
and an analysis of the relationship of zoning and public facilities
and services to these sites.
   (4) An analysis of potential and actual governmental constraints
upon the maintenance, improvement, or development of housing for all
income levels and for persons with disabilities as identified in the
analysis pursuant to paragraph (6), including land use controls,
building codes and their enforcement, site improvements, fees and
other exactions required of developers, and local processing and
permit procedures. The analysis shall also demonstrate local efforts
to remove governmental constraints that hinder the locality from
meeting its share of the regional housing need in accordance with
Section 65584 and from meeting the need for housing for persons with
disabilities identified pursuant to paragraph (6).
   (5) An analysis of potential and actual nongovernmental
constraints upon the maintenance, improvement, or development of
housing for all income levels, including the availability of
financing, the price of land, and the cost of construction.
   (6) An analysis of any special housing needs, such as those of the
elderly, persons with disabilities, large families, farmworkers,
families with female heads of households, and families and persons in
need of emergency shelter.
   (7) An analysis of opportunities for energy conservation with
respect to residential development.
   (8) An analysis of existing assisted housing developments that are
eligible to change from low-income housing uses during the next 10
years due to termination of subsidy contracts, mortgage prepayment,
or expiration of restrictions on use. "Assisted housing developments,"
for the purpose of this section, shall mean multifamily rental
housing that receives governmental assistance under federal programs
listed in subdivision (a) of Section 65863.10, state and local
multifamily revenue bond programs, local redevelopment programs, the
federal Community Development Block Grant Program, or local in-lieu
fees. "Assisted housing developments" shall also include multifamily
rental units that were developed pursuant to a local inclusionary
housing program or used to qualify for a density bonus pursuant to
Section 65916.
   (A) The analysis shall include a listing of each development by
project name and address, the type of governmental assistance
received, the earliest possible date of change from low-income use
and the total number of elderly and nonelderly units that could be
lost from the locality's low-income housing stock in each year during
the 10-year period. For purposes of state and federally funded
projects, the analysis required by this subparagraph need only
contain information available on a statewide basis.
   (B) The analysis shall estimate the total cost of producing new
rental housing that is comparable in size and rent levels, to replace
the units that could change from low-income use, and an estimated
cost of preserving the assisted housing developments. This cost
analysis for replacement housing may be done aggregately for each
five-year period and does not have to contain a project-by-project
cost estimate.
   (C) The analysis shall identify public and private nonprofit
corporations known to the local government which have legal and
managerial capacity to acquire and manage these housing developments.
   (D) The analysis shall identify and consider the use of all
federal, state, and local financing and subsidy programs which can be
used to preserve, for lower income households, the assisted housing
developments, identified in this paragraph, including, but not
limited to, federal Community Development Block Grant Program funds,
tax increment funds received by a redevelopment agency of the
community, and administrative fees received by a housing authority
operating within the community. In considering the use of these
financing and subsidy programs, the analysis shall identify the
amounts of funds under each available program which have not been
legally obligated for other purposes and which could be available for
use in preserving assisted housing developments.
   (b) (1) A statement of the community's goals, quantified
objectives, and policies relative to the maintenance, preservation,
improvement, and development of housing.
   (2) It is recognized that the total housing needs identified
pursuant to subdivision (a) may exceed available resources and the
community's ability to satisfy this need within the content of the
general plan requirements outlined in Article 5 (commencing with
Section 65300). Under these circumstances, the quantified objectives
need not be identical to the total housing needs. The quantified
objectives shall establish the maximum number of housing units by
income category that can be constructed, rehabilitated, and conserved
over a five-year time period.
   (c) A program which sets forth a five-year schedule of actions the
local government is undertaking or intends to undertake to implement
the policies and achieve the goals and objectives of the housing
element through the administration of land use and development
controls, provision of regulatory concessions and incentives, and the
utilization of appropriate federal and state financing and subsidy
programs when available and the utilization of moneys in a low- and
moderate-income housing fund of an agency if the locality has
established a redevelopment project area pursuant to the Community
Redevelopment Law (Division 24 (commencing with Section 33000) of the
Health and Safety Code). In order to make adequate provision for the
housing needs of all economic segments of the community, the program
shall do all of the following:
   (1) Identify actions that will be taken to make sites available
during the planning period of the general plan with appropriate
zoning and development standards and with services and facilities to
accommodate that portion of the city's or county's share of the
regional housing need for each income level that could not be
accommodated on sites identified in the inventory completed pursuant
to paragraph (3) of subdivision (a) without rezoning, and to comply
with the requirements of Section 65584.09. Sites shall be identified
as needed to facilitate and encourage the development of a variety of
types of housing for all income levels, including multifamily rental
housing, factory-built housing, mobilehomes, housing for
agricultural employees, emergency shelters, and transitional housing.
   (A) Where the inventory of sites, pursuant to paragraph (3) of
subdivision (a), does not identify adequate sites to accommodate the
need for groups of all household income levels pursuant to Section
65584, the program shall identify sites that can be developed for
housing within the planning period pursuant to subdivision (h) of
Section 65583.2.
   (B) Where the inventory of sites pursuant to paragraph (3) of
subdivision (a) does not identify adequate sites to accommodate the
need for farmworker housing, the program shall provide for sufficient
sites to meet the need with zoning that permits farmworker housing
use by right, including density and development standards that could
accommodate and facilitate the feasibility of the development of
farmworker housing for low- and very low income households.
   (2) Assist in the development of adequate housing to meet the
needs of low- and moderate-income households.
   (3) Address and, where appropriate and legally possible, remove
governmental constraints to the maintenance, improvement, and
development of housing, including housing for all income levels and
housing for persons with disabilities. The program shall remove
constraints to, or provide reasonable accommodations for housing
designed for, intended for occupancy by, or with supportive services
for, persons with disabilities.
   (4) Conserve and improve the condition of the existing affordable
housing stock, which may include addressing ways to mitigate the loss
of dwelling units demolished by public or private action.
   (5) Promote housing opportunities for all persons regardless of
race, religion, sex, marital status, ancestry, national origin,
color, familial status, or disability.
   (6) (A) Preserve for lower income households the assisted housing
developments identified pursuant to paragraph (8) of subdivision (a).
The program for preservation of the assisted housing developments
shall utilize, to the extent necessary, all available federal, state,
and local financing and subsidy programs identified in paragraph (8)
of subdivision (a), except where a community has other urgent needs
for which alternative funding sources are not available. The program
may include strategies that involve local regulation and technical
assistance.
   (B) The program shall include an identification of the agencies
and officials responsible for the implementation of the various
actions and the means by which consistency will be achieved with
other general plan elements and community goals. The local government
shall make a diligent effort to achieve public participation of all
economic segments of the community in the development of the housing
element, and the program shall describe this effort.
   (d) The analysis and program for preserving assisted housing
developments required by the amendments to this section enacted by
the Statutes of 1989 shall be adopted as an amendment to the housing
element by July 1, 1992.
   (e) Failure of the department to review and report its findings
pursuant to Section 65585 to the local government between July 1,
1992, and the next periodic review and revision required by Section
65588, concerning the housing element amendment required by the
amendments to this section by the Statutes of 1989, shall not be used
as a basis for allocation or denial of any housing assistance
administered pursuant to Part 2 (commencing with Section 50400) of
Division 31 of the Health and Safety Code.
65583.1.  (a) The Department of Housing and Community Development,
in evaluating a proposed or adopted housing element for substantial
compliance with this article, may allow a city or county to identify
adequate sites, as required pursuant to Section 65583, by a variety
of methods, including, but not limited to, redesignation of property
to a more intense land use category and increasing the density
allowed within one or more categories.  The department may also allow
a city or county to identify sites for second units based on the
number of second units developed in the prior housing element
planning period whether or not the units are permitted by right, the
need for these units in the community, the resources or incentives
available for their development, and any other relevant factors, as
determined by the department.  Nothing in this section reduces the
responsibility of a city or county to identify, by income category,
the total number of sites for residential development as required by
this article.
   (b) Sites that contain permanent housing units located on a
military base undergoing closure or conversion as a result of action
pursuant to the Defense Authorization Amendments and Base Closure and
Realignment Act (Public Law 100-526), the Defense Base Closure and
Realignment Act of 1990 (Public Law 101-510), or any subsequent act
requiring the closure or conversion of a military base may be
identified as an adequate site if the housing element demonstrates
that the housing units will be available for occupancy by households
within the planning period of the element.  No sites containing
housing units scheduled or planned for demolition or conversion to
nonresidential uses shall qualify as an adequate site.
   Any city, city and county, or county using this subdivision shall
address the progress in meeting this section in the reports provided
pursuant to paragraph (1) of subdivision (b) of Section 65400.
   (c) (1) The Department of Housing and Community Development may
allow a city or county to substitute the provision of units for up to
25 percent of the community's obligation to identify adequate sites
for any income category in its housing element pursuant to paragraph
(1) of subdivision (c) of Section 65583 where the community includes
in its housing element a program committing the local government to
provide units in that income category within the city or county that
will be made available through the provision of committed assistance
during the planning period covered by the element to low- and very
low income households at affordable housing costs or affordable
rents, as defined in Sections 50052.5 and 50053 of the Health and
Safety Code, and which meet the requirements of paragraph (2).
Except as otherwise provided in this subdivision, the community may
substitute one dwelling unit for one dwelling unit site in the
applicable income category.  The program shall do all of the
following:
   (A) Identify the specific, existing sources of committed
assistance and dedicate a specific portion of the funds from those
sources to the provision of housing pursuant to this subdivision.
   (B) Indicate the number of units that will be provided to both
low- and very low income households and demonstrate that the amount
of dedicated funds is sufficient to develop the units at affordable
housing costs or affordable rents.
   (C) Demonstrate that the units meet the requirements of paragraph
(2).
   (2) Only units that comply with subparagraph (A), (B), or (C)
qualify for inclusion in the housing element program described in
paragraph (1), as follows:
   (A) Units that are to be substantially rehabilitated with
committed assistance from the city or county and constitute a net
increase in the community's stock of housing affordable to low- and
very low income households.  For purposes of this subparagraph, a
unit is not eligible to be "substantially rehabilitated" unless all
of the following requirements are met:
   (i) At the time the unit is identified for substantial
rehabilitation, (I) the local government has determined that the unit
is at imminent risk of loss to the housing stock, (II) the local
government has committed to provide relocation assistance pursuant to
Chapter 16 (commencing with Section 7260) of Division 7 of Title 1
to any occupants temporarily or permanently displaced by the
rehabilitation or code enforcement activity, or the relocation is
otherwise provided prior to displacement either as a condition of
receivership, or provided by the property owner or the local
government pursuant to Article 2.5 (commencing with Section 17975) of
Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code,
or as otherwise provided by local ordinance; provided the assistance
includes not less than the equivalent of four months' rent and moving
expenses and comparable replacement housing consistent with the
moving expenses and comparable replacement housing required pursuant
to Section 7260, (III) the local government requires that any
displaced occupants will have the right to reoccupy the rehabilitated
units, and (IV) the unit has been found by the local government or a
court to be unfit for human habitation due to the existence of at
least four violations of the conditions listed in subdivisions (a) to
(g), inclusive, of Section 17995.3 of the Health and Safety Code.
   (ii) The rehabilitated unit will have long-term affordability
covenants and restrictions that require the unit to be available to,
and occupied by, persons or families of low- or very low income at
affordable housing costs for at least 20 years or the time period
required by any applicable federal or state law or regulation.
   (iii) Prior to initial occupancy after rehabilitation, the local
code enforcement agency shall issue a certificate of occupancy
indicating compliance with all applicable state and local building
code and health and safety code requirements.
   (B) Units that are located in a multifamily rental housing complex
of four or more units, are converted with committed assistance from
the city or county from nonaffordable to affordable by acquisition of
the unit or the purchase of affordability covenants and restrictions
for the unit, are not acquired by eminent domain, and constitute a
net increase in the community's stock of housing affordable to low-
and very low income households.  For purposes of this subparagraph, a
unit is not converted by acquisition or the purchase of
affordability covenants unless all of the following occur:
   (i) The unit is made available at a cost affordable to low- or
very low income households.
   (ii) At the time the unit is identified for acquisition, the unit
is not available at an affordable housing cost to either of the
following:
   (I) Low-income households, if the unit will be made affordable to
low-income households.
   (II) Very low income households, if the unit will be made
affordable to very low income households.
   (iii) At the time the unit is identified for acquisition the unit
is not occupied by low- or very low income households or if the
acquired unit is occupied, the local government has committed to
provide relocation assistance prior to displacement, if any, pursuant
to Chapter 16 (commencing with Section 7260) of Division 7 of Title
1 to any occupants displaced by the conversion, or the relocation is
otherwise provided prior to displacement; provided the assistance
includes not less than the equivalent of four months rent and moving
expenses and comparable replacement housing consistent with the
moving expenses and comparable replacement housing required pursuant
to Section 7260.
   (iv) The unit is in decent, safe, and sanitary condition at the
time of occupancy.
   (v) The unit has long-term affordability covenants and
restrictions that require the unit to be affordable to persons of
low- or very low income for not less than 55 years.
   (C) Units that will be preserved at affordable housing costs to
persons or families of low- or very low incomes with committed
assistance from the city or county by acquisition of the unit or the
purchase of affordability covenants for the unit.  For purposes of
this subparagraph, a unit shall not be deemed preserved unless all of
the following occur:
   (i) The unit has long-term affordability covenants and
restrictions that require the unit to be affordable to and reserved
for occupancy by persons of the same or lower income group as the
current occupants for a period of at least 40 years.
   (ii) The unit is multifamily rental housing that receives
governmental assistance under any of the following state and federal
programs:  Section 221(d)(3) of the National Housing Act (12 U.S.C.
Sec. 1715l(d)(3) and (5)); Section 236 of the National Housing Act
(12 U.S.C. Sec. 1715z-1); Section 202 of the Housing Act of 1959 (12
U.S.C. Sec. 1701q); for rent supplement assistance under Section 101
of the Housing and Urban Development Act of 1965, as amended (12
U.S.C. Sec. 1701s); under Section 515 of the Housing Act of 1949, as
amended (42 U.S.C. Sec. 1485); and any new construction, substantial
rehabilitation, moderate rehabilitation, property disposition, and
loan management set-aside programs, or any other program providing
project-based assistance, under Section 8 of the United States
Housing Act of 1937, as amended (42 U.S.C. Sec. 1437f); any state and
local multifamily revenue bond programs; local redevelopment
programs; the federal Community Development Block Grant Program; and
other local housing assistance programs or units that were used to
qualify for a density bonus pursuant to Section 65916.
   (iii) The city or county finds, after a public hearing, that the
unit is eligible, and is reasonably expected, to change from housing
affordable to low- and very low income households to any other use
during the next five years due to termination of subsidy contracts,
mortgage prepayment, or expiration of restrictions on use.
   (iv) The unit is in decent, safe, and sanitary condition at the
time of occupancy.
   (v) At the time the unit is identified for preservation it is
available at affordable cost to persons or families of low- or very
low income.
   (3) This subdivision does not apply to any city or county that,
during the current or immediately prior planning period, as defined
by Section 65588, has not met any of its share of the regional need
for affordable housing, as defined in Section 65584, for low- and
very low income households.  A city or county shall document for any
such housing unit that a building permit has been issued and all
development and permit fees have been paid or the unit is eligible to
be lawfully occupied.
   (4) For purposes of this subdivision, "committed assistance" means
that the city or county enters into a legally enforceable agreement
during the first two years of the housing element planning period
that obligates sufficient available funds to provide the assistance
necessary to make the identified units affordable and that requires
that the units be made available for occupancy within two years of
the execution of the agreement.  "Committed assistance" does not
include tenant-based rental assistance.
   (5) For purposes of this subdivision, "net increase" includes only
housing units provided committed assistance pursuant to subparagraph
(A) or (B) of paragraph (2) in the current planning period, as
defined in Section 65588, that were not provided committed assistance
in the immediately prior planning period.
   (6) For purposes of this subdivision, "the time the unit is
identified" means the earliest time when any city or county agent,
acting on behalf of a public entity, has proposed in writing or has
proposed orally or in writing to the property owner, that the unit be
considered for substantial rehabilitation, acquisition, or
preservation.
   (7) On July 1 of the third year of the planning period, as defined
by Section 65588, in the report required pursuant to Section 65400,
each city or county that has included in its housing element a
program to provide units pursuant to subparagraph (A), (B), or (C) of
paragraph (2) shall report in writing to the legislative body, and
to the department within 30 days of making its report to the
legislative body, on its progress in providing units pursuant to this
subdivision.  The report shall identify the specific units for which
committed assistance has been provided or which have been made
available to low- and very low income households, and it shall
adequately document how each unit complies with this subdivision.
If, by July 1 of the third year of the planning period, the city or
county has not entered into an enforceable agreement of committed
assistance for all units specified in the programs adopted pursuant
to subparagraph (A), (B), or (C) of paragraph (2), the city or county
shall, not later than July 1 of the fourth year of the planning
period, adopt an amended housing element in accordance with Section
65585, identifying additional adequate sites pursuant to paragraph
(1) of subdivision (c) of Section 65583 sufficient to accommodate the
number of units for which committed assistance was not provided.  If
a city or county does not amend its housing element to identify
adequate sites to address any shortfall, or fails to complete the
rehabilitation, acquisition, purchase of affordability covenants, or
the preservation of any housing unit within two years after committed
assistance was provided to that unit, it shall be prohibited from
identifying units pursuant to subparagraph (A), (B), or (C) of
paragraph (2) in the housing element that it adopts for the next
planning period, as defined in Section 65588, above the number of
units actually provided or preserved due to committed assistance.
65583.2.  (a) A city's or county's inventory of land suitable for
residential development pursuant to paragraph (3) of subdivision (a)
of Section 65583 shall be used to identify sites that can be
developed for housing within the planning period and that are
sufficient to provide for the jurisdiction's share of the regional
housing need for all income levels pursuant to Section 65584.  As
used in this section, "land suitable for residential development"
includes all of the following:
   (1) Vacant sites zoned for residential use.
   (2) Vacant sites zoned for nonresidential use that allows
residential development.
   (3) Residentially zoned sites that are capable of being developed
at a higher density.
   (4) Sites zoned for nonresidential use that can be redeveloped
for, and as necessary, rezoned for, residential use.
   (b) The inventory of land shall include all of the following:
   (1) A listing of properties by parcel number or other unique
reference.
   (2) The size of each property listed pursuant to paragraph (1),
and the general plan designation and zoning of each property.
   (3) For nonvacant sites, a description of the existing use of each
property.
   (4) A general description of any environmental constraints to the
development of housing within the jurisdiction, the documentation for
which has been made available to the jurisdiction.  This information
need not be identified on a site-specific basis.
   (5) A general description of existing or planned water, sewer, and
other dry utilities supply, including the availability and access to
distribution facilities.  This information need not be identified on
a site-specific basis.
   (6) Sites identified as available for housing for above-moderate
income households in areas not served by public sewer systems.  This
information need not be identified on a site-specific basis.
   (7) A map that shows the location of the sites included in the
inventory, such as the land use map from the jurisdiction's general
plan for reference purposes only.
   (c) Based on the information provided in subdivision (b), a city
or county shall determine whether each site in the inventory can
accommodate some portion of its share of the regional housing need by
income level during the planning period, as determined pursuant to
Section 65584.  The analysis shall determine whether the inventory
can provide for a variety of types of housing, including multifamily
rental housing, factory-built housing, mobilehomes, housing for
agricultural employees, emergency shelters, and transitional housing.
  The city or county shall determine the number of housing units that
can be accommodated on each site as follows:
   (1) If local law or regulations require the development of a site
at a minimum density, the department shall accept the planning agency'
s calculation of the total housing unit capacity on that site based
on the established minimum density.  If the city or county does not
adopt a law or regulations requiring the development of a site at a
minimum density, then it shall demonstrate how the number of units
determined for that site pursuant to this subdivision will be
accommodated.
   (2) The number of units calculated pursuant to paragraph (1) shall
be adjusted as necessary, based on the land use controls and site
improvements requirement identified in paragraph (4) of subdivision
(a) of Section 65583.
   (3) For the number of units calculated to accommodate its share of
the regional housing need for lower income households pursuant to
paragraph (2), a city or county shall do either of the following:
   (A) Provide an analysis demonstrating how the adopted densities
accommodate this need.  The analysis shall include, but is not
limited to, factors such as market demand, financial feasibility, or
information based on development project experience within a zone or
zones that provide housing for lower income households.
   (B) The following densities shall be deemed appropriate to
accommodate housing for lower income households:
   (i) For incorporated cities within nonmetropolitan counties and
for nonmetropolitan counties that have micropolitan areas:  sites
allowing at least 15 units per acre.
   (ii) For unincorporated areas in all nonmetropolitan counties not
included in clause (i):  sites allowing at least 10 units per acre.
   (iii) For suburban jurisdictions:  sites allowing at least 20
units per acre.
   (iv) For jurisdictions in metropolitan counties:  sites allowing
at least 30 units per acre.
   (d) For purposes of this section, metropolitan counties,
nonmetropolitan counties, and nonmetropolitan counties with
micropolitan areas are as determined by the United States Census
Bureau.  Nonmetropolitan counties with micropolitan areas include the
following counties:  Del Norte, Humboldt, Lake Mendocino, Nevada,
Tehama, and Tuolumne and such other counties as may be determined by
the United States Census Bureau to be nonmetropolitan counties with
micropolitan areas in the future.
   (e) A jurisdiction is considered suburban if the jurisdiction does
not meet the requirements of clauses (i) and (ii) of subparagraph
(B) of paragraph (3) of subdivision (c) and is located in a
Metropolitan Statistical Area (MSA) of less than 2,000,000 in
population, unless that jurisdiction's population is greater than
100,000, in which case it is considered metropolitan.  Counties, not
including the City and County of San Francisco, will be considered
suburban unless they are in a MSA of 2,000,000 or greater in
population in which case they are considered metropolitan.
   (f) A jurisdiction is considered metropolitan if the jurisdiction
does not meet the requirements for "suburban area" above and is
located in a MSA of 2,000,000 or greater in population, unless that
jurisdiction's population is less than 25,000 in which case it is
considered suburban.
   (g) For sites described in paragraph (3) of subdivision (b) the
city or county shall specify the additional development potential for
each site within the planning period and shall provide an
explanation of the methodology used to determine the development
potential.  The methodology shall consider factors including the
extent to which existing uses may constitute an impediment to
additional residential development, development trends, market
conditions, and regulatory or other incentives or standards to
encourage additional residential development on these sites.
   (h) The program required by subparagraph (A) of paragraph (1) of
subdivision (c) of Section 65583 shall accommodate 100 percent of the
need for housing for very low and low-income households allocated
pursuant to Section 65584 for which site capacity has not been
identified in the inventory of sites pursuant to paragraph (3) of
subdivision (a) on sites that shall be zoned to permit owner-occupied
and rental multifamily residential use by right during the planning
period.  These sites shall be zoned with minimum density and
development standards that permit at least 16 units per site at a
density of at least 16 units per acre in jurisdictions described in
clause (i) of subparagraph (B) of paragraph (3) of subdivision (c)
and at least 20 units per acre in jurisdictions described in clauses
(iii) and (iv) of subparagraph (B) of paragraph (3) of subdivision
(c).  At least 50 percent of the very low and low-income housing need
shall be accommodated on sites designated for residential use and
for which nonresidential uses or mixed-uses are not permitted.
   (i) For purposes of this section and Section 65583, the phrase
"use by right" shall mean that the local government's review of the
owner-occupied or multifamily residential use may not require a
conditional use permit, planned unit development permit, or other
discretionary local government review or approval that would
constitute a "project" for purposes of Division 13 (commencing with
Section 21100) of the Public Resources Code.  Any subdivision of the
sites shall be subject to all laws, including, but not limited to,
the local government ordinance implementing the Subdivision Map Act.
A local ordinance may provide that "use by right" does not exempt
the use from design review.  However, that design review shall not
constitute a "project" for purposes of Division 13 (commencing with
Section 21100) of the Public Resources Code.  Use by right for all
rental multifamily residential housing shall be provided in
accordance with subdivision (f) of Section 65589.5.
65584.  (a) (1) For the fourth and subsequent revisions of the
housing element pursuant to Section 65588, the department shall
determine the existing and projected need for housing for each region
pursuant to this article.  For purposes of subdivision (a) of
Section 65583, the share of a city or county of the regional housing
need shall include that share of the housing need of persons at all
income levels within the area significantly affected by the general
plan of the city or county.
   (2) While it is the intent of the Legislature that cities,
counties, and cities and counties should undertake all necessary
actions to encourage, promote, and facilitate the development of
housing to accommodate the entire regional housing need, it is
recognized, however, that future housing production may not equal the
regional housing need established for planning purposes.
   (b) The department, in consultation with each council of
governments, shall determine each region's existing and projected
housing need pursuant to Section 65584.01 at least two years prior to
the scheduled revision required pursuant to Section 65588.  The
appropriate council of governments, or for cities and counties
without a council of governments, the department, shall adopt a final
regional housing need plan that allocates a share of the regional
housing need to each city, county, or city and county at least one
year prior to the scheduled revision for the region required by
Section 65588.  The allocation plan prepared by a council of
governments shall be prepared pursuant to Sections 65584.04 and
65584.05 with the advice of the department.
   (c) Notwithstanding any other provision of law, the due dates for
the determinations of the department or for the councils of
governments, respectively, regarding the regional housing need may be
extended by the department by not more than 60 days if the extension
will enable access to more recent critical population or housing
data from a pending or recent release of the United States Census
Bureau or the Department of Finance.  If the due date for the
determination of the department or the council of governments is
extended for this reason, the department shall extend the
corresponding housing element revision deadline pursuant to Section
65588 by not more than 60 days.
   (d) The regional housing needs allocation plan shall be consistent
with all of the following objectives:
   (1) Increasing the housing supply and the mix of housing types,
tenure, and affordability in all cities and counties within the
region in an equitable manner, which shall result in each
jurisdiction receiving an allocation of units for low and very low
income households.
   (2) Promoting infill development and socioeconomic equity, the
protection of environmental and agricultural resources, and the
encouragement of efficient development patterns.
   (3) Promoting an improved intraregional relationship between jobs
and housing.
   (4) Allocating a lower proportion of housing need to an income
category when a jurisdiction already has a disproportionately high
share of households in that income category, as compared to the
countywide distribution of households in that category from the most
recent decennial United States census.
   (e) For purposes of this section, "household income levels" are as
determined by the department as of the most recent decennial census
pursuant to the following code sections:
   (1) Very low incomes as defined by Section 50105 of the Health and
Safety Code.
   (2) Lower incomes, as defined by Section 50079.5 of the Health and
Safety Code.
   (3) Moderate incomes, as defined by Section 50093 of the Health
and Safety Code.
   (4) Above moderate incomes are those exceeding the moderate income
level of Section 50093 of the Health and Safety Code.
   (f) Notwithstanding any other provision of law, determinations
made by the department, a council of governments, or a city or county
pursuant to this section or Section 65584.01, 65584.02, 65584.03,
65584.04, 65584.05, 65584.06, or 65584.07 are exempt from the
California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code).
65584.01.  (a) For the fourth and subsequent revision of the housing
element pursuant to Section 65588, the department, in consultation
with each council of governments, where applicable, shall determine
the existing and projected need for housing for each region in the
following manner:
   (b) The department's determination shall be based upon population
projections produced by the Department of Finance and regional
population forecasts used in preparing regional transportation plans,
in consultation with each council of governments.  If the total
regional population forecast for the planning period, developed by
the council of governments and used for the preparation of the
regional transportation plan, is within a range of 3 percent of the
total regional population forecast for the planning period over the
same time period by the Department of Finance, then the population
forecast developed by the council of governments shall be the basis
from which the department determines the existing and projected need
for housing in the region.  If the difference between the total
population growth projected by the council of governments and the
total population growth projected for the region by the Department of
Finance is greater than 3 percent, then the department and the
council of governments shall meet to discuss variances in methodology
used for population projections and seek agreement on a population
projection for the region to be used as a basis for determining the
existing and projected housing need for the region.  If no agreement
is reached, then the population projection for the region shall be
the population projection for the region prepared by the Department
of Finance as may be modified by the department as a result of
discussions with the council of governments.
   (c) (1) At least 26 months prior to the scheduled revision
pursuant to Section 65588 and prior to developing the existing and
projected housing need for a region, the department shall meet and
consult with the council of governments regarding the assumptions and
methodology to be used by the department to determine the region's
housing needs.  The council of governments shall provide data
assumptions from the council's projections, including, if available,
the following data for the region:
   (A) Anticipated household growth associated with projected
population increases.
   (B) Household size data and trends in household size.
   (C) The rate of household formation, or headship rates, based on
age, gender, ethnicity, or other established demographic measures.
   (D) The vacancy rates in existing housing stock, and the vacancy
rates for healthy housing market functioning and regional mobility,
as well as housing replacement needs.
   (E) Other characteristics of the composition of the projected
population.
   (2) The department may accept or reject the information provided
by the council of governments or modify its own assumptions or
methodology based on this information.  After consultation with the
council of governments, the department shall make determinations in
writing on the assumptions for each of the factors listed in
subparagraphs (A) to (E), inclusive, of paragraph (1) and the
methodology it shall use and shall provide these determinations to
the council of governments.
   (d) (1) After consultation with the council of governments, the
department shall make a determination of the region's existing and
projected housing need based upon the assumptions and methodology
determined pursuant to subdivision (c).  Within 30 days following
notice of the determination from the department, the council of
governments may file an objection to the department's determination
of the region's existing and projected housing need with the
department.
   (2) The objection shall be based on and substantiate either of the
following:
   (A) The department failed to base its determination on the
population projection for the region established pursuant to
subdivision (b), and shall identify the population projection which
the council of governments believes should instead be used for the
determination and explain the basis for its rationale.
   (B) The regional housing need determined by the department is not
a reasonable application of the methodology and assumptions
determined pursuant to subdivision (c).  The objection shall include
a proposed alternative determination of its regional housing need
based upon the determinations made in subdivision (c), including
analysis of why the proposed alternative would be a more reasonable
application of the methodology and assumptions determined pursuant to
subdivision (c).
   (3) If a council of governments files an objection pursuant to
this subdivision and includes with the objection a proposed
alternative determination of its regional housing need, it shall also
include documentation of its basis for the alternative
determination.  Within 45 days of receiving an objection filed
pursuant to this section, the department shall consider the objection
and make a final written determination of the region's existing and
projected housing need that includes an explanation of the
information upon which the determination was made.
65584.02.  (a) For the fourth and subsequent revisions of the
housing element pursuant to Section 65588, the existing and projected
need for housing may be determined for each region by the department
as follows, as an alternative to the process pursuant to Section
65584.01:
   (1) In a region in which at least one subregion has accepted
delegated authority pursuant to Section 65584.03, the region's
housing need shall be determined at least 26 months prior to the
housing element update deadline pursuant to Section 65588.  In a
region in which no subregion has accepted delegation pursuant to
Section 65584.03, the region's housing need shall be determined at
least 24 months prior to the housing element deadline.
   (2) At least six months prior to the department's determination of
regional housing need pursuant to paragraph (1), a council of
governments may request the use of population and household forecast
assumptions used in the regional transportation plan.  For a housing
element update due date pursuant to Section 65588 that is prior to
January 2007, the department may approve a request that is submitted
prior to December 31, 2004, notwithstanding the deadline in this
paragraph.  This request shall include all of the following:
   (A) Proposed data and assumptions for factors contributing to
housing need beyond household growth identified in the forecast.
These factors shall include allowance for vacant or replacement
units, and may include other adjustment factors.
   (B) A proposed planning period that is not longer than the period
of time covered by the regional transportation improvement plan or
plans of the region pursuant to Section 14527, but a period not less
than five years, and not longer than six years.
   (C) A comparison between the population and household assumptions
used for the Regional Transportation Plan with population and
household estimates and projections of the Department of Finance.
   The council of governments may include a request to extend the
housing element deadline pursuant to Section 65588 to a date not to
exceed two years, for the purpose of coordination with the scheduled
update of a regional transportation plan pursuant to federal law.
   (b) The department shall consult with the council of governments
regarding requests submitted pursuant to paragraph (2) of subdivision
(a).  The department may seek advice and consult with the
Demographic Research Unit of the Department of Finance, the State
Department of Transportation, a representative of a contiguous
council of governments, and any other party as deemed necessary.  The
department may request that the council of governments revise data,
assumptions, or methodology to be used for the determination of
regional housing need, or may reject the request submitted pursuant
to paragraph (2) of subdivision (a).  Subsequent to consultation with
the council of governments, the department will respond in writing
to requests submitted pursuant to paragraph (1) of subdivision (a).
   (c) If the council of governments does not submit a request
pursuant to subdivision (a), or if the department rejects the request
of the council of governments, the determination for the region
shall be made pursuant to Sections 65584 and 65584.01.
65584.03.  (a) At least 28 months prior to the scheduled housing
element update required by Section 65588, at least two or more cities
and a county, or counties, may form a subregional entity for the
purpose of allocation of the subregion's existing and projected need
for housing among its members in accordance with the allocation
methodology established pursuant to Section 65584.04.  The purpose of
establishing a subregion shall be to recognize the community of
interest and mutual challenges and opportunities for providing
housing within a subregion.  A subregion formed pursuant to this
section may include a single county and each of the cities in that
county or any other combination of geographically contiguous local
governments and shall be approved by the adoption of a resolution by
each of the local governments in the subregion as well as by the
council of governments.  All decisions of the subregion shall be
approved by vote as provided for in rules adopted by the local
governments comprising the subregion or shall be approved by vote of
the county or counties, if any, and the majority of the cities with
the majority of population within a county or counties.
   (b) Upon formation of the subregional entity, the entity shall
notify the council of governments of this formation.  If the council
of governments has not received notification from an eligible
subregional entity at least 28 months prior to the scheduled housing
element update required by Section 65588, the council of governments
shall implement the provisions of Sections 65584 and 65584.04.  The
delegate subregion and the council of governments shall enter into an
agreement that sets forth the process, timing, and other terms and
conditions of the delegation of responsibility by the council of
governments to the subregion.
   (c) At least 25 months prior to the scheduled revision, the
council of governments shall determine the share of regional housing
need assigned to each delegate subregion.  The share or shares
allocated to the delegate subregion or subregions by a council of
governments shall be in a proportion consistent with the distribution
of households assumed for the comparable time period of the
applicable regional transportation plan.  Prior to allocating the
regional housing needs to any delegate subregion or subregions, the
council of governments shall hold at least one public hearing, and
may consider requests for revision of the proposed allocation to a
subregion.  If a proposed revision is rejected, the council of
governments shall respond with a written explanation of why the
proposed revised share has not been accepted.
   (d) Each delegate subregion shall fully allocate its share of the
regional housing need to local governments within its subregion.  If
a delegate subregion fails to complete the regional housing need
allocation process among its member jurisdictions in a manner
consistent with this article and with the delegation agreement
between the subregion and the council of governments, the allocations
to member jurisdictions shall be made by the council of governments.
65584.04.  (a) At least two years prior to a scheduled revision
required by Section 65588, each council of governments, or delegate
subregion as applicable, shall develop a proposed methodology for
distributing the existing and projected regional housing need to
cities, counties, and cities and counties within the region or within
the subregion, where applicable pursuant to this section.  The
methodology shall be consistent with the objectives listed in
subdivision (d) of Section 65584.
   (b) (1) No more than six months prior to the development of a
proposed methodology for distributing the existing and projected
housing need, each council of governments shall survey each of its
member jurisdictions to request, at a minimum, information regarding
the factors listed in subdivision (d) that will allow the development
of a methodology based upon the factors established in subdivision
(d).
   (2) The council of governments shall seek to obtain the
information in a manner and format that is comparable throughout the
region and utilize readily available data to the extent possible.
   (3) The information provided by a local government pursuant to
this section shall be used, to the extent possible, by the council of
governments, or delegate subregion as applicable, as source
information for the methodology developed pursuant to this section.
The survey shall state that none of the information received may be
used as a basis for reducing the total housing need established for
the region pursuant to Section 65584.01.
   (4) If the council of governments fails to conduct a survey
pursuant to this subdivision, a city, county, or city and county may
submit information related to the items listed in subdivision (d)
prior to the public comment period provided for in subdivision (c).
   (c) Public participation and access shall be required in the
development of the methodology and in the process of drafting and
adoption of the allocation of the regional housing needs.
Participation by organizations other than local jurisdictions and
councils of governments shall be solicited in a diligent effort to
achieve public participation of all economic segments of the
community. The proposed methodology, along with any relevant
underlying data and assumptions, and an explanation of how
information about local government conditions gathered pursuant to
subdivision (b) has been used to develop the proposed methodology,
and how each of the factors listed in subdivision (d) is incorporated
into the methodology, shall be distributed to all cities, counties,
any subregions, and members of the public who have made a written
request for the proposed methodology.  The council of governments, or
delegate subregion, as applicable, shall conduct at least one public
hearing to receive oral and written comments on the proposed
methodology.
   (d) To the extent that sufficient data is available from local
governments pursuant to subdivision (b) or other sources, each
council of governments, or delegate subregion as applicable, shall
include the following factors to develop the methodology that
allocates regional housing needs:
   (1) Each member jurisdiction's existing and projected jobs and
housing relationship.
   (2) The opportunities and constraints to development of additional
housing in each member jurisdiction, including all of the following:
   (A) Lack of capacity for sewer or water service due to federal or
state laws, regulations or regulatory actions, or supply and
distribution decisions made by a sewer or water service provider
other than the local jurisdiction that preclude the jurisdiction from
providing necessary infrastructure for additional development during
the planning period.
   (B) The availability of land suitable for urban development or for
conversion to residential use, the availability of underutilized
land, and opportunities for infill development and increased
residential densities. The council of governments may not limit its
consideration of suitable housing sites or land suitable for urban
development to existing zoning ordinances and land use restrictions
of a locality, but shall consider the potential for increased
residential development under alternative zoning ordinances and land
use restrictions.
   (C) Lands preserved or protected from urban development under
existing federal or state programs, or both, designed to protect open
space, farmland, environmental habitats, and natural resources on a
long-term basis.
   (D) County policies to preserve prime agricultural land, as
defined pursuant to Section 56064, within an unincorporated area.
   (3) The distribution of household growth assumed for purposes of a
comparable period of regional transportation plans and opportunities
to maximize the use of public transportation and existing
transportation infrastructure.
   (4) The market demand for housing.
   (5) Agreements between a county and cities in a county to direct
growth toward incorporated areas of the county.
   (6) The loss of units contained in assisted housing developments,
as defined in paragraph (8) of subdivision (a) of Section 65583, that
changed to non-low-income use through mortgage prepayment, subsidy
contract expirations, or termination of use restrictions.
   (7) High housing costs burdens.
   (8) The housing needs of farmworkers.
   (9) Any other factors adopted by the council of governments.
   (e) The council of governments, or delegate subregion, as
applicable, shall explain in writing how each of the factors
described in subdivision (d) was incorporated into the methodology
and how the methodology is consistent with subdivision (d) of Section
65584.  The methodology may include numerical weighting.
   (f) Any ordinance, policy, voter-approved measure, or standard of
a city or county that directly or indirectly limits the number of
residential building permits issued by a city or county shall not be
a justification for a determination or a reduction in the share of a
city or county of the regional housing need.
   (g) In addition to the factors identified pursuant to subdivision
(d), the council of governments, or delegate subregion, as
applicable, shall identify any existing local, regional, or state
incentives, such as a priority for funding or other incentives
available to those local governments that are willing to accept a
higher share than proposed in the draft allocation to those local
governments by the council of governments or delegate subregion
pursuant to Section 65584.05.
   (h) Following the conclusion of the 60-day public comment period
described in subdivision (c) on the proposed allocation methodology,
and after making any revisions deemed appropriate by the council of
governments, or delegate subregion, as applicable, as a result of
comments received during the public comment period, each council of
governments, or delegate subregion, as applicable, shall adopt a
final regional, or subregional, housing need allocation methodology
and provide notice of the adoption of the methodology to the
jurisdictions within the region, or delegate subregion as applicable,
and to the department.
65584.05.  (a) At least one and one-half years prior to the
scheduled revision required by Section 65588, each council of
governments and delegate subregion, as applicable, shall distribute a
draft allocation of regional housing needs to each local government
in the region or subregion, where applicable, based on the
methodology adopted pursuant to Section 65584.04.  The draft
allocation shall include the underlying data and methodology on which
the allocation is based.  It is the intent of the Legislature that
the draft allocation should be distributed prior to the completion of
the update of the applicable regional transportation plan.  The
draft allocation shall distribute to localities and subregions, if
any, within the region the entire regional housing need determined
pursuant to Section 65584.01 or within subregions, as applicable, the
subregion's entire share of the regional housing need determined
pursuant to Section 65584.03.
   (b) Within 60 days following receipt of the draft allocation, a
local government may request from the council of governments or the
delegate subregion, as applicable, a revision of its share of the
regional housing need in accordance with the factors described in
paragraphs (1) to (9), inclusive, of subdivision (d) of Section
65584.04, including any information submitted by the local government
to the council of governments pursuant to subdivision (b) of that
section.  The request for a revised share shall be based upon
comparable data available for all affected jurisdictions and accepted
planning methodology, and supported by adequate documentation.
   (c) Within 60 days after the request submitted pursuant to
subdivision (b), the council of governments or delegate subregion, as
applicable, shall accept the proposed revision, modify its earlier
determination, or indicate, based upon the information and
methodology described in Section 65584.04, why the proposed revision
is inconsistent with the regional housing need.
   (d) If the council of governments or delegate subregion, as
applicable, does not accept the proposed revised share or modify the
revised share to the satisfaction of the requesting party, the local
government, may appeal its draft allocation based upon either or both
of the following criteria:
   (1) The council of governments or delegate subregion, as
applicable, failed to adequately consider the information submitted
pursuant to subdivision (b) of Section 65584.04, or a significant and
unforeseen change in circumstances has occurred in the local
jurisdiction that merits a revision of the information submitted
pursuant to that subdivision.
   (2) The council of governments or delegate subregion, as
applicable, failed to determine its share of the regional housing
need in accordance with the information described in, and the
methodology established pursuant to Section 65584.04.
   (e) The council of governments or delegate subregion, as
applicable, shall conduct public hearings to hear all appeals within
60 days of the date established to file appeals.  The local
government shall be notified within 10 days by certified mail, return
receipt requested, of at least one public hearing on its appeal.
The date of the hearing shall be at least 30 days and not more than
35 days from the date of the notification.  Before taking action on
an appeal, the council of governments or delegate subregion, as
applicable, shall consider all comments, recommendations, and
available data based on accepted planning methodologies submitted by
the appellant.  The final action of the council of governments or
delegate subregion, as applicable, on an appeal shall be in writing
and shall include information and other evidence explaining how its
action is consistent with this article.  The final action on an
appeal may require the council of governments or delegate subregion,
as applicable, to adjust the allocation of a local government that is
not the subject of an appeal.
   (f) The council of governments or delegate subregion, as
applicable, shall issue a proposed final allocation within 45 days of
the completion of the 60-day period for hearing appeals.  The
proposed final allocation plan shall include responses to all
comments received on the proposed draft allocation and reasons for
any significant revisions included in the final allocation.
   (g) In the proposed final allocation plan, the council of
governments or delegate subregion, as applicable, shall adjust
allocations to local governments based upon the results of the
appeals process specified in this section.  If the adjustments total
7 percent or less of the regional housing need determined pursuant to
Section 65584.01, or, as applicable, total 7 percent or less of the
subregion's share of the regional housing need as determined pursuant
to Section 65584.03, then the council of governments or delegate
subregion, as applicable, shall distribute the adjustments
proportionally to all local governments.  If the adjustments total
more than 7 percent of the regional housing need, then the council of
governments or delegate subregion, as applicable, shall develop a
methodology to distribute the amount greater than the 7 percent to
local governments.  In no event shall the total distribution of
housing need equal less than the regional housing need, as determined
pursuant to Section 65584.01, nor shall the subregional distribution
of housing need equal less than its share of the regional housing
need as determined pursuant to Section 65584.03.  Two or more local
governments may agree to an alternate distribution of appealed
housing allocations between the affected local governments.  If two
or more local governments agree to an alternative distribution of
appealed housing allocations that maintains the total housing need
originally assigned to these communities, then the council of
governments shall include the alternative distribution in the final
allocation plan.
   (h) Within 45 days of the issuance of the proposed final
allocation plan by the council of governments and each delegate
subregion, as applicable, the council of governments shall hold a
public hearing to adopt a final allocation plan.  To the extent that
the final allocation plan fully allocates the regional share of
statewide housing need, as determined pursuant to Section 65584.01,
the council of governments shall have final authority to determine
the distribution of the region's existing and projected housing need
as determined pursuant to Section 65584.01.  Within 60 days of
adoption by the council of governments, the department shall
determine whether or not the final allocation plan is consistent with
the existing and projected housing need for the region, as
determined pursuant to Section 65584.01.  The department may revise
the determination of the council of governments if necessary to
obtain this consistency.
   (i) Any authority of the council of governments to review and
revise the share of a city or county of the regional housing need
under this section shall not constitute authority to revise, approve,
or disapprove the manner in which the share of the city or county of
the regional housing need is implemented through its housing
program.
65584.06.  (a) For cities and counties without a council of
governments, the department shall determine and distribute the
existing and projected housing need, in accordance with Section 65584
and this section.  If the department determines that a county or
counties, supported by a resolution adopted by the board or boards of
supervisors, and a majority of cities within the county or counties
representing a majority of the population of the county or counties,
possess the capability and resources and has agreed to accept the
responsibility, with respect to its jurisdiction, for the
distribution of the regional housing need, the department shall
delegate this responsibility to the cities and county or counties.
   (b) The distribution of regional housing need shall, based upon
available data and in consultation with the cities and counties, take
into consideration market demand for housing, the distribution of
household growth within the county assumed in the regional
transportation plan where applicable, employment opportunities and
commuting patterns, the availability of suitable sites and public
facilities, agreements between a county and cities in a county to
direct growth toward incorporated areas of the county, or other
considerations as may be requested by the affected cities or counties
and agreed to by the department.  As part of the allocation of the
regional housing need, the department shall provide each city and
county with data describing the assumptions and methodology used in
calculating its share of the regional housing need.  Consideration of
suitable housing sites or land suitable for urban development is not
limited to existing zoning ordinances and land use restrictions of a
locality, but shall include consideration of the potential for
increased residential development under alternative zoning ordinances
and land use restrictions.
   (c) Within 90 days following the department's determination of a
draft distribution of the regional housing need to the cities and the
county, a city or county may propose to revise the determination of
its share of the regional housing need in accordance with criteria
set forth in the draft distribution. The proposed revised share shall
be based upon comparable data available for all affected
jurisdictions, and accepted planning methodology, and shall be
supported by adequate documentation.
   (d) (1) Within 60 days after the end of the 90-day time period for
the revision by the cities or county, the department shall accept
the proposed revision, modify its earlier determination, or indicate
why the proposed revision is inconsistent with the regional housing
need.
   (2) If the department does not accept the proposed revision, then,
within 30 days, the city or county may request a public hearing to
review the determination.
   (3) The city or county shall be notified within 30 days by
certified mail, return receipt requested, of at least one public
hearing regarding the determination.
   (4) The date of the hearing shall be at least 10 but not more than
15 days from the date of the notification.
   (5) Before making its final determination, the department shall
consider all comments received and shall include a written response
to each request for revision received from a city or county.
   (e) If the department accepts the proposed revision or modifies
its earlier determination, the city or county shall use that share.
If the department grants a revised allocation pursuant to subdivision
(d), the department shall ensure that the total regional housing
need is maintained.  The department's final determination shall be in
writing and shall include information explaining how its action is
consistent with this section.  If the department indicates that the
proposed revision is inconsistent with the regional housing need, the
city or county shall use the share that was originally determined by
the department.  The department, within its final determination, may
adjust the allocation of a city or county that was not the subject
of a request for revision of the draft distribution.
   (f) The department shall issue a final regional housing need
allocation for all cities and counties within 45 days of the
completion of the local review period.
65584.07.  (a) During the period between adoption of a final
regional housing needs allocation until the due date of the housing
element update pursuant to Section 65588, the council of governments,
or the department, whichever assigned the county's share, shall
reduce the share of regional housing needs of a county if all of the
following conditions are met:
   (1) One or more cities within the county agree to increase its
share or their shares in an amount equivalent to the reduction.
   (2) The transfer of shares shall only occur between a county and
cities within that county.
   (3) The county's share of low-income and very low income housing
shall be reduced only in proportion to the amount by which the county'
s share of moderate- and above moderate-income housing is reduced.
   (4) The council of governments or the department, whichever
assigned the county's share, shall approve the proposed reduction, if
it determines that the conditions set forth in paragraphs (1), (2),
and (3) above have been satisfied.  The county and city or cities
proposing the transfer shall submit an analysis of the factors and
circumstances, with all supporting data, justifying the revision to
the council of governments or the department.  The council of
governments shall submit a copy of its decision regarding the
proposed reduction to the department.
   (b) The county and cities which have executed transfers of
regional housing need pursuant to this section shall amend their
housing elements and submit them to the department for review
pursuant to Section 65585.
   All materials and data used to justify any revision shall be made
available upon request to any interested party within seven days upon
payment of reasonable costs of reproduction unless the costs are
waived due to economic hardship.  A fee may be charged to interested
parties for any additional costs caused by the amendments made to
former subdivision (c) of Section 65584 that reduced from 45 to 7
days the time within which materials and data were required to be
made available to interested parties.
   (c) In the event an incorporation of a new city occurs after the
council of governments, or the department for areas with no council
of governments, has made its final allocation under this section, the
city and county may reach a mutually acceptable agreement on a
revised determination and report the revision to the council of
governments and the department, or to the department for areas with
no council of governments.  If the affected parties cannot reach a
mutually acceptable agreement, then either party may request the
council of governments, or the department for areas with no council
of governments, to consider the facts, data, and methodology
presented by both parties and make the revised determination.
   The revised determination shall be made within one year of the
incorporation of the new city based upon the methodology described in
subdivision (a) and shall reallocate a portion of the affected
county's share of regional housing needs to the new city.  The
revised determination shall neither reduce the total regional housing
needs nor change the previous allocation of the regional housing
needs assigned by the council of governments or the department, where
there is no council of governments, to other cities within the
affected county.
65584.09.  (a) For housing elements due pursuant to Section 65588 on
or after January 1, 2006, if a city or county in the prior planning
period failed to identify or make available adequate sites to
accommodate that portion of the regional housing need allocated
pursuant to Section 65584, then the city or county shall, within the
first year of the planning period of the new housing element, zone or
rezone adequate sites to accommodate the unaccommodated portion of
the regional housing need allocation from the prior planning period.
   (b) The requirements under subdivision (a) shall be in addition to
any zoning or rezoning required to accommodate the jurisdiction's
share of the regional housing need pursuant to Section 65584 for the
new planning period.
   (c) Nothing in this section shall be construed to diminish the
requirement of a city or county to accommodate its share of the
regional housing need for each income level during the planning
period set forth in Section 65588, including the obligations to (1)
implement programs included pursuant to Section 65583 to achieve the
goals and objectives, including programs to zone or rezone land, and
(2) timely adopt a housing element with an inventory described in
paragraph (3) of subdivision (a) of Section 65583 and a program to
make sites available pursuant to paragraph (1) of subdivision (c) of
Section 65583, which can accommodate the jurisdiction's share of the
regional housing need.
65584.1.  Councils of government may charge a fee to local
governments to cover the projected reasonable, actual costs of the
council in distributing regional housing needs pursuant to this
article. Any fee shall not exceed the estimated amount required to
implement its obligations pursuant to Sections 65584, 65584.01,
65584.02, 65584.03, 65584.04, 65584.05, and 65584.07. A city, county,
or city and county may charge a fee, not to exceed the amount
charged in the aggregate to the city, county, or city and county by
the council of governments, to reimburse it for the cost of the fee
charged by the council of government to cover the council's actual
costs in distributing regional housing needs. The legislative body of
the city, county, or city and county shall impose the fee pursuant
to Section 66016, except that if the fee creates revenue in excess of
actual costs, those revenues shall be refunded to the payers of the
fee.
65584.2.  A local government may, but is not required to, conduct a
review or appeal regarding allocation data provided by the department
or the council of governments pertaining the locality's share of the
regional housing need or the submittal of data or information for a
proposed allocation, as permitted by this article.
65584.3.  (a) A city that is incorporated to promote commerce and
industry, that is located in the County of Los Angeles, and that has
no residentially zoned land within its boundaries on January 1, 1992,
may elect to adopt a housing element that makes no provision for new
housing or the share of regional housing needs as determined
pursuant to Section 65584 for the current and subsequent revisions of
the housing element pursuant to Section 65588, for the period of
time that 20 percent of all tax increment revenue accruing from all
redevelopment projects, and required to be set aside for low- and
moderate-income housing pursuant to Section 33334.2 of the Health and
Safety Code, is annually transferred to the Housing Authority of the
County of Los Angeles.
   (b) (1) The amount of tax increment to be transferred each year
pursuant to subdivision (a) shall be determined at the end of each
fiscal year, commencing with the 1992-93 fiscal year.  This amount
shall be transferred within 30 days of the agency receiving each
installment of its allocation of tax increment moneys, commencing in
1993.
   (2) On or before December 31, 1992, the agency shall make an
additional payment to the Housing Authority of the County of Los
Angeles that eliminates any indebtedness to the low- and
moderate-income housing fund pursuant to Section 33334.3.  This
amount shall be reduced by any amount actually expended by the
redevelopment agency for principal or interest payments on agency
bonds issued prior to the effective date of the act that adds this
section, when that portion of the agency's tax increment revenue
representing the low- and moderate-income housing set-aside funds was
lawfully pledged as security for the bonds, and only to the extent
that other tax increment revenue in excess of the 20-percent low- and
moderate-income set-aside funds is insufficient in that fiscal year
to meet in full the principal and interest payments.
   (c) The Department of Housing and Community Development shall
annually review the calculation and determination of the amount
transferred pursuant to subdivisions (a) and (b).  The department may
conduct an audit of these funds if and when the Director of Housing
and Community Development deems an audit appropriate.
   (d) The amount transferred pursuant to subdivisions (a) and (b)
shall fulfill the obligation of that city's redevelopment agency to
provide for housing for low- and moderate-income families and
individuals pursuant to Sections 33334.2 to 33334.16, inclusive, of
the Health and Safety Code.  The use of these funds for low- and
moderate-income families in the region of the Southern California
Association of Governments within which the city is located shall be
deemed to be of benefit to the city's redevelopment project areas.
   (e) (1) The amount transferred pursuant to subdivisions (a) and
(b) to the Housing Authority of the County of Los Angeles shall be
expended to provide housing and assistance, including, but not
limited to, that specified in subdivision (e) of Section 33334.2 of
the Health and Safety Code for low-and moderate-income families and
individuals, in the region of the Southern California Association of
Governments within which the city is located.
   (2) Funds expended pursuant to this subdivision shall be expended
in accordance with all of the following:
   (A) The funds shall be expended for the construction of low- and
moderate-income housing located no further than 15 miles from the
nearest boundary line of the City of Industry.
   (B) The low- and moderate-income housing constructed pursuant to
this subdivision shall be in addition to any other housing required
by the housing element of the general plan of the jurisdiction in
which the low- and moderate-income housing is constructed.
   (C) Funds may be encumbered by the Housing Authority of the County
of Los Angeles for the purposes of this subdivision only after the
authority has prepared a written plan for the expenditure of funds to
be transferred to the authority pursuant to this subdivision and has
filed a copy of this expenditure plan with the Department of Housing
and Community Development.
   (f) A city that meets the conditions specified in subdivision (d)
shall continue to have responsibility for preparing a housing element
pursuant to Section 65583 only to the extent to which the assessment
of housing needs, statement of goals and objectives, and the
five-year schedule of actions relate to the city's plan to maintain,
preserve, and improve the housing that exists in the city on the
effective date of the act which adds this section.
   (g) This section shall not become operative unless and until a
parcel of land, to be dedicated for the construction of a high
school, is transferred pursuant to a written agreement between the
City of Industry and the Pomona Unified School District, and a copy
of this agreement is filed with the County Clerk of the County of Los
Angeles.
65584.5.  (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.
65584.6.  (a) The County of Napa may, during its current housing
element planning period, identified in Section 65588, meet up to 15
percent of its existing share of the regional housing need for lower
income households, as defined in Section 65584, by committing funds
for the purpose of constructing affordable housing units, and
constructing those units in one or more cities within the county,
only after all of the following conditions are met:
   (1) An agreement has been executed between the county and the
receiving city or cities, following a public hearing held by the
county and the receiving city or cities to solicit public comments on
the draft agreement.  The agreement shall contain information
sufficient to demonstrate that the county and city or cities have
complied with the requirements of this section and shall also include
the following:
   (A) A plan and schedule for timely construction of dwelling units.
   (B) Site identification by street address for the units to be
developed.
   (C) A statement either that the sites upon which the units will be
developed were identified in the receiving city's housing element as
potential sites for the development of housing for lower-income
households, or that the units will be developed on previously
unidentified sites.
   (D) The number and percentage of the county's lower-income housing
needs previously transferred, for the appropriate planning period,
pursuant to this section.
   (2) The council of governments that assigned the county's share
receives and approves each proposed agreement to meet a portion of
the county's fair share housing allocation within one or more of the
cities within the county after taking into consideration the criteria
of subdivision (a) of Section 65584.  If the council of governments
fails to take action to approve or disapprove an agreement between
the county and the receiving city or cities within 45 days following
the receipt of the agreement, the agreement shall be deemed approved.
   (3) The city or cities in which the units are developed agree not
to count the units towards their share of the region's affordable
housing need.
   (4) The county and the receiving city or cities, based on
substantial evidence on the record, make the following findings:
   (A) Adequate sites with appropriate zoning exist in the receiving
city or cities to accommodate the units to be developed pursuant to
this section.  The agreement shall demonstrate that the city or
cities have identified sufficient vacant or underutilized or vacant
and underutilized sites in their housing elements to meet their
existing share of regional housing need, as allocated by the council
of governments pursuant to subdivision (a) of Section 65584, in
addition to the sites needed to construct the units pursuant to this
section.
   (B) If needed, additional subsidy or financing for the
construction of the units is available.
   (C) The receiving city or cities have housing elements that have
been found by the Department of Housing and Community Development to
be in compliance with this article.
   (5) If the sites upon which units are to be developed pursuant to
this section were previously identified in the receiving city's
housing element as potential sites for the development of housing
sufficient to accommodate the receiving city's share of the lower
income household need identified in its housing element, then the
receiving city shall have amended its housing element to identify
replacement sites by street address for housing for lower-income
households.  Additionally, the Department of Housing and Community
Development shall have received and reviewed the amendment and found
that the city's housing element continues to comply with this
article.
   (6) The county and receiving city or cities shall have completed,
and provided to the department, the annual report required by
subdivision (b) of Section 65400.
   (7) For a period of five years after a 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 agreement, and information on
any dwelling units actually constructed, including the number, type,
location, and affordability requirements.
   (8) The receiving city demonstrates that it has met, in the
current or previous housing element cycle, at least 20 percent of its
share of the regional need for housing for very low-income
households allocated to the city pursuant to Section 65584.
   (b) The credit that the county receives pursuant to this section
shall not exceed 40 percent of the number of units that are
affordable to lower income households and constructed and occupied
during the same housing element cycle in unincorporated areas of the
county.  The county shall only receive the credit after the units
have been constructed and occupied.  Within 60 days of issuance of a
certificate of occupancy for the units, the county shall inform the
council of governments and the department in writing that a
certificate of occupancy has been issued.
   (c) Concurrent with the review by the council of governments
prescribed by this section, the Department of Housing and Community
Development shall evaluate the agreement to determine whether the
city or cities are in substantial compliance with this section.  The
department shall report the results of its evaluation to the county
and city or cities for inclusion in their record of compliance with
this section.
   (d) If at the end of the five-year period identified in
subdivision (c) of Section 65583, any percentage of the regional
share allocation has not been constructed as provided pursuant to
subdivision (a), or, after consultation with the department, the
council of governments determines that the requirements of paragraphs
(5) and (7) of subdivision (a) have not been substantially complied
with, the council of governments shall add the unbuilt units to Napa
County's regional share allocation for the planning period of the
next periodic update of the housing element.
   (e) Napa County shall not meet a percentage of its share of the
regional share pursuant to subdivision (a) on or after June 30, 2007,
unless a later enacted statute, that is enacted before June 30,
2007, deletes or extends that date.
65585.  (a) In the preparation of its housing element, each city and
county shall consider the guidelines adopted by the department
pursuant to Section 50459 of the Health and Safety Code.  Those
guidelines shall be advisory to each city or county in the
preparation of its housing element.
   (b) At least 90 days prior to adoption of its housing element, or
at least 60 days prior to the adoption of an amendment to this
element, the planning agency shall submit a draft element or draft
amendment to the department.  The department shall review the draft
and report its written findings to the planning agency within 90 days
of its receipt of the draft in the case of an adoption or within 60
days of its receipt in the case of a draft amendment.
   (c) In the preparation of its findings, the department may consult
with any public agency, group, or person.  The department shall
receive and consider any written comments from any public agency,
group, or person regarding the draft or adopted element or amendment
under review.
   (d) In its written findings, the department shall determine
whether the draft element or draft amendment substantially complies
with the requirements of this article.
   (e) Prior to the adoption of its draft element or draft amendment,
the legislative body shall consider the findings made by the
department.  If the department's findings are not available within
the time limits set by this section, the legislative body may act
without them.
   (f) If the department finds that the draft element or draft
amendment does not substantially comply with the requirements of this
article, the legislative body shall take one of the following
actions:
   (1) Change the draft element or draft amendment to substantially
comply with the requirements of this article.
   (2) Adopt the draft element or draft amendment without changes.
The legislative body shall include in its resolution of adoption
written findings which explain the reasons the legislative body
believes that the draft element or draft amendment substantially
complies with the requirements of this article despite the findings
of the department.
   (g) Promptly following the adoption of its element or amendment,
the planning agency shall submit a copy to the department.
   (h) The department shall, within 90 days, review adopted housing
elements or amendments and report its findings to the planning
agency.
65585.1.  (a) The San Diego Association of Governments (SANDAG), if
it approves a resolution agreeing to participate in the
self-certification process, and in consultation with the cities and
county within its jurisdiction, its housing element advisory
committee, and the department, shall work with a qualified consultant
to determine the maximum number of housing units that can be
constructed, acquired, rehabilitated, and preserved as defined in
paragraph (11) of subdivision (e) of Section 33334.2 of the Health
and Safety Code, and the maximum number of units or households that
can be provided with rental or ownership assistance, by each
jurisdiction during the third and fourth housing element cycles to
meet the existing and future housing needs for low- and very low
income households as defined in Sections 50079.5, 50093, and 50105 of
the Health and Safety Code, and extremely low income households.
The methodology for determining the maximum number of housing units
that can be provided shall include a recognition of financial
resources and regulatory measures that local jurisdictions can use to
provide additional affordable lower income housing.  This process is
intended to identify the available resources that can be used to
determine the maximum number of housing units each jurisdiction can
provide.  The process acknowledges that the need to produce housing
for low-, very low, and extremely low income households may exceed
available resources.  The department and SANDAG, with input from its
housing element advisory committee, the consultant, and local
jurisdictions, shall agree upon definitions for extremely low income
households and their affordable housing costs, the methodology for
the determination of the maximum number of housing units and the
number each jurisdiction can produce at least one year before the due
date of each housing element revision, pursuant to paragraph (4) of
subdivision (e) of Section 65588.  If SANDAG fails to approve a
resolution agreeing to participate in this pilot program, or SANDAG
and the department fail to agree upon the methodology by which the
maximum number of housing units is determined, then local
jurisdictions may not self-certify pursuant to this section.
   (1) The "housing element advisory committee" should include
representatives of the local jurisdictions, nonprofit affordable
housing development corporations and affordable housing advocates,
and representatives of the for-profit building, real estate and
banking industries.
   (2) The determination of the "maximum number of housing units"
that the jurisdiction can provide assumes that the needs for low-,
very low, and extremely low income households, including those with
special housing needs, will be met in approximate proportion to their
representation in the region's population.
   (3) A "qualified consultant" for the purposes of this section
means an expert in the identification of financial resources and
regulatory measures for the provision of affordable housing for lower
income households.
   (b) A city or county within the jurisdiction of the San Diego
Association of Governments that elects not to self-certify, or is
ineligible to do so, shall submit its housing element or amendment to
the department, pursuant to Section 65585.
   (c) A city or county within the jurisdiction of the San Diego
Association of Governments that elects to self-certify shall submit a
self-certification of compliance to the department with its adopted
housing element or amendment.  In order to be eligible to
self-certify, the legislative body, after holding a public hearing,
shall make findings, based on substantial evidence, that it has met
the following criteria for self-certification:
   (1) The jurisdiction's adopted housing element or amendment
substantially complies with the provisions of this article, including
addressing the needs of all income levels.
   (2) For the third housing element revision, pursuant to Section
65588, the jurisdiction met its fair share of the regional housing
needs for the second housing element revision cycle, as determined by
the San Diego Association of Governments.
   In determining whether a jurisdiction has met its fair share, the
jurisdiction may count each additional lower income household
provided with affordable housing costs.  Affordable housing costs are
defined in Section 6918 for renters, and in Section 6925 for
purchasers, of Title 25 of the California Code of Regulations, and in
Sections 50052.5 and 50053 of the Health and Safety Code, or by the
applicable funding source or program.
   (3) For subsequent housing element revisions, pursuant to Section
65588, the jurisdiction has provided the maximum number of housing
units as determined pursuant to subdivision (a), within the previous
planning period.
   (A) The additional units provided at affordable housing costs as
defined in paragraph (2) in satisfaction of a jurisdiction's maximum
number of housing units shall be provided by one or more of the
following means:
   (i) New construction.
   (ii) Acquisition.
   (iii) Rehabilitation.
   (iv) Rental or ownership assistance.
   (v) Preservation of the availability to lower income households of
affordable housing units in developments which are assisted,
subsidized, or restricted by a public entity and which are threatened
with imminent conversion to market rate housing.
   (B) The additional affordable units shall be provided in
approximate proportion to the needs defined in paragraph (2) of
subdivision (a).
   (4) The city or county provides a statement regarding how its
adopted housing element or amendment addresses the dispersion of
lower income housing within its jurisdiction, documenting that
additional affordable housing opportunities will not be developed
only in areas where concentrations of lower income households already
exist, taking into account the availability of necessary public
facilities and infrastructure.
   (5) No local government actions or policies prevent the
development of the identified sites pursuant to Section 65583, or
accommodation of the jurisdiction's share of the total regional
housing need, pursuant to Section 65584.
   (d) When a city or county within the jurisdiction of the San Diego
Association of Governments duly adopts a self-certification of
compliance with its adopted housing element or amendment pursuant to
subdivision (c), all of the following shall apply:
   (1) Section 65585 shall not apply to the city or county.
   (2) In any challenge of a local jurisdiction's self-certification,
the court's review shall be limited to determining whether the
self-certification is accurate and complete as to the criteria for
self-certification.  Where there has not been a successful challenge
of the self-certification, there shall be a rebuttable presumption of
the validity of the housing element or amendment.
   (3) Within six months after the completion of the revision of all
housing elements in the region, the council of governments, with
input from the cities and county within its jurisdiction, the housing
element advisory committee, and qualified consultant shall report to
the Legislature on the use and results of the self-certification
process by local governments within its jurisdiction.  This report
shall contain data for the last planning period regarding the total
number of additional affordable housing units provided by income
category, the total number of additional newly constructed housing
units, and any other information deemed useful by SANDAG in the
evaluation of the pilot program.
   (e) This section shall become inoperative on June 30, 2010, and as
of January 1, 2011, is repealed, unless a later enacted statute that
is enacted before January 1, 2011, deletes or extends the dates on
which it becomes inoperative and is repealed.
65585.2.  Notwithstanding any other provision of law, any city or
county that has a housing element that has been self-certified
pursuant to the requirements of Section 65585.1 shall be considered
to be fully eligible to participate in any program created by, or
receiving funds through, the Housing and Emergency Shelter Trust Fund
Act of 2002 in an identical manner and to the same degree, as those
local jurisdictions deemed in substantial compliance with the
requirements of this article by the Department of Housing and
Community Development pursuant to Section 65585.
65587.  (a) Each city, county, or city and county shall bring its
housing element, as required by subdivision (c) of Section 65302,
into conformity with the requirements of this article on or before
October 1, 1981, and the deadlines set by Section 65588.  Except as
specifically provided in subdivision (b) of Section 65361, the
Director of Planning and Research shall not grant an extension of
time from these requirements.
   (b) Any action brought by any interested party to review the
conformity with the provisions of this article of any housing element
or portion thereof or revision thereto shall be brought pursuant to
Section 1085 of the Code of Civil Procedure; the court's review of
compliance with the provisions of this article shall extend to
whether the housing element or portion thereof or revision thereto
substantially complies with the requirements of this article.
   (c) If a court finds that an action of a city, county, or city and
county, which is required to be consistent with its general plan,
does not comply with its  housing element, the city, county, or city
and county shall bring its action into compliance within 60 days.
However, the court shall retain jurisdiction throughout the period
for compliance to enforce its decision.  Upon the court's
determination that the 60-day period for compliance would place an
undue hardship on the city, county, or city and county, the court may
extend the time period for compliance by an additional 60 days.
65588.  (a) Each local government shall review its housing element
as frequently as appropriate to evaluate all of the following:
   (1) The appropriateness of the housing goals, objectives, and
policies in contributing to the attainment of the state housing goal.
   (2) The effectiveness of the housing element in attainment of the
community's housing goals and objectives.
   (3) The progress of the city, county, or city and county in
implementation of the housing element.
   (b) The housing element shall be revised as appropriate, but not
less than every five years, to reflect the results of this periodic
review.
   (c) The review and revision of housing elements required by this
section shall take into account any low- or moderate-income housing
provided or required pursuant to Section 65590.
   (d) The review pursuant to subdivision (c) shall include, but need
not be limited to, the following:
   (1) The number of new housing units approved for construction
within the coastal zone after January 1, 1982.
   (2) The number of housing units for persons and families of low or
moderate income, as defined in Section 50093 of the Health and
Safety Code, required to be provided in new housing developments
either within the coastal zone or within three miles of the coastal
zone pursuant to Section 65590.
   (3) The number of existing residential dwelling units occupied by
persons and families of low or moderate income, as defined in Section
50093 of the Health and Safety Code, that have been authorized to be
demolished or converted since January 1, 1982, in the coastal zone.
   (4) The number of residential dwelling units for persons and
families of low or moderate income, as defined in Section 50093 of
the Health and Safety Code, that have been required for replacement
or authorized to be converted or demolished as identified in
paragraph (3).  The location of the replacement units, either onsite,
elsewhere within the locality's jurisdiction within the coastal
zone, or within three miles of the coastal zone within the locality's
jurisdiction, shall be designated in the review.
   (e) Notwithstanding subdivision (b) or the date of adoption of the
housing elements previously in existence, the dates of revisions for
the housing element shall be modified as follows:
   (1) Local governments within the regional jurisdiction of the
Southern California Association of Governments:  December 31, 2000,
for the third revision, and June 30, 2006, for the fourth revision.
   (2) Local governments within the regional jurisdiction of the
Association of Bay Area Governments:  December 31, 2001, for the
third revision, and June 30, 2007, for the fourth revision.
   (3) Local governments within the regional jurisdiction of the
Council of Fresno County Governments, the Kern County Council of
Governments, and the Sacramento Area Council of Governments:  June
30, 2002, for the third revision, and June 30, 2008, for the fourth
revision.
   (4) Local governments within the regional jurisdiction of the
Association of Monterey Bay Area Governments:  December 31, 2002, for
the third revision, and June 30, 2008, for the fourth revision.
   (5) Local governments within the regional jurisdiction of the San
Diego Association of Governments:  December 31, 1999, for the third
revision cycle ending June 30, 1999, and June 30, 2005, for the
fourth revision.
   (6) All other local governments:  December 31, 2003, for the third
revision, and June 30, 2009, for the fourth revision.
   (7) Subsequent revisions shall be completed not less often than at
five-year intervals following the fourth revision.
65589.  (a) Nothing in this article shall require a city, county, or
city and county to do any of the following:
   (1) Expend local revenues for the construction of housing, housing
subsidies,  or land acquisition.
   (2) Disapprove any residential development which is consistent
with the general plan.
   (b) Nothing in this article shall be construed to be a grant of
authority or a repeal of any authority which may exist of a local
government to impose rent controls or restrictions on the sale of
real property.
   (c) Nothing in this article shall be construed to be a grant of
authority or a repeal of any authority which may exist of a local
government with respect to measures that may be undertaken or
required by a local government to be undertaken to implement the
housing element of the local general plan.
   (d) The provisions of this article shall be construed consistent
with, and in   promotion of, the statewide goal of a sufficient
supply of decent housing to meet the needs of all Californians.
65589.3.  In any action filed on or after January 1, 1991, taken to
challenge the validity of a housing element, there shall be a
rebuttable presumption of the validity of the element or amendment
if, pursuant to Section 65585, the department has found that the
element or amendment substantially complies with the requirements of
this article.
65589.4.  (a) An attached housing development shall be a permitted
use not subject to a conditional use permit on any parcel zoned for
an attached housing development if local law so provides or if it
satisfies the requirements of subdivision (b) and either of the
following:
   (1) The attached housing development satisfies the criteria of
Section 21159.22, 21159.23, or 21159.24 of the Public Resources Code.
   (2) The attached housing development meets all of the following
criteria:
   (A) The attached housing development is subject to a discretionary
decision other than a conditional use permit and a negative
declaration or mitigated negative declaration has been adopted for
the attached housing development under the California Environmental
Quality Act (Division 13 (commencing with Section 21000) of the
Public Resources Code). If no public hearing is held with respect to
the discretionary decision, then the negative declaration or
mitigated negative declaration for the attached housing development
may be adopted only after a public hearing to receive comments on the
negative declaration or mitigated negative declaration.
   (B) The attached housing development is consistent with both the
jurisdiction's zoning ordinance and general plan as it existed on the
date the application was deemed complete, except that an attached
housing development shall not be deemed to be inconsistent with the
zoning designation for the site if that zoning designation is
inconsistent with the general plan only because the attached housing
development site has not been rezoned to conform with the most recent
adopted general plan.
   (C) The attached housing development is located in an area that is
covered by one of the following documents that has been adopted by
the jurisdiction within five years of the date the application for
the attached housing development was deemed complete:
   (i) A general plan.
   (ii) A revision or update to the general plan that includes at
least the land use and circulation elements.
   (iii) An applicable community plan.
   (iv) An applicable specific plan.
   (D) The attached housing development consists of not more than 100
residential units with a minimum density of not less than 12 units
per acre or a minimum density of not less than eight units per acre
if the attached housing development consists of four or fewer units.
   (E) The attached housing development is located in an urbanized
area as defined in Section 21071 of the Public Resources Code or
within a census-defined place with a population density of at least
5,000 persons per square mile or, if the attached housing development
consists of 50 or fewer units, within an incorporated city with a
population density of at least 2,500 persons per square mile and a
total population of at least 25,000 persons.
   (F) The attached housing development is located on an infill site
as defined in Section 21061.0.5 of the Public Resources Code.
   (b) At least 10 percent of the units of the attached housing
development shall be available at affordable housing cost to very low
income households, as defined in Section 50105 of the Health and
Safety Code, or at least 20 percent of the units of the attached
housing development shall be available at affordable housing cost to
lower income households, as defined in Section 50079.5 of the Health
and Safety Code, or at least 50 percent of the units of the attached
housing development available at affordable housing cost to
moderate-income households, consistent with Section 50052.5 of the
Health and Safety Code. The developer of the attached housing
development shall provide sufficient legal commitments to the local
agency to ensure the continued availability and use of the housing
units for very low, low-, or moderate-income households for a period
of at least 30 years.
   (c) Nothing in this section shall prohibit a local agency from
applying design and site review standards in existence on the date
the application was deemed complete.
   (d) The provisions of this section are independent of any
obligation of a jurisdiction pursuant to subdivision (c) of Section
65583 to identify multifamily sites developable by right.
   (e) This section does not apply to the issuance of coastal
development permits pursuant to the California Coastal Act (Division
20 (commencing with Section 30000) of the Public Resources Code).
   (f) This section does not relieve a public agency from complying
with the California Environmental Quality Act (Division 13
(commencing with Section 21000) of the Public Resources Code) or
relieve an applicant or public agency from complying with the
Subdivision Map Act (Division 2 (commencing with Section 66473)).
   (g) This section is applicable to all cities and counties,
including charter cities, because the Legislature finds that the lack
of affordable housing is of vital statewide importance, and thus a
matter of statewide concern.
   (h) For purposes of this section, "attached housing development"
means a newly constructed or substantially rehabilitated structure
containing two or more dwelling units and consisting only of
residential units, but does not include a second unit, as defined by
paragraph (4) of subdivision (h) of Section 65852.2, or the
conversion of an existing structure to condominiums.
65589.5.  (a) The Legislature finds and declares all of the
following:
   (1) The lack of housing is a critical problem that threatens the
economic, environmental, and social quality of life in California.
   (2) California housing has become the most expensive in the
nation. The excessive cost of the state's housing supply is partially
caused by activities and policies of many local governments that
limit the approval of housing, increase the cost of land for housing,
and require that high fees and exactions be paid by producers of
housing.
   (3) Among the consequences of those actions are discrimination
against low-income and minority households, lack of housing to
support employment growth, imbalance in jobs and housing, reduced
mobility, urban sprawl, excessive commuting, and air quality
deterioration.
   (4) Many local governments do not give adequate attention to the
economic, environmental, and social costs of decisions that result in
disapproval of housing projects, reduction in density of housing
projects, and excessive standards for housing projects.
   (b) It is the policy of the state that a local government not
reject or make infeasible housing developments that contribute to
meeting the housing need determined pursuant to this article without
a thorough analysis of the economic, social, and environmental
effects of the action and without complying with subdivision (d).
   (c) The Legislature also recognizes that premature and unnecessary
development of agricultural lands for urban uses continues to have
adverse effects on the availability of those lands for food and fiber
production and on the economy of the state. Furthermore, it is the
policy of the state that development should be guided away from prime
agricultural lands; therefore, in implementing this section, local
jurisdictions should encourage, to the maximum extent practicable, in
filling existing urban areas.
   (d) A local agency shall not disapprove a housing development
project, including farmworker housing as defined in subdivision (d)
of Section 50199.50 of the Health and Safety Code, for very low,
low-, or moderate-income households or condition approval, including
through the use of design review standards, in a manner that renders
the project infeasible for development for the use of very low, low-,
or moderate-income households unless it makes written findings,
based upon substantial evidence in the record, as to one of the
following:
   (1) The jurisdiction has adopted a housing element pursuant to
this article that has been revised in accordance with Section 65588,
is in substantial compliance with this article, and the jurisdiction
has met or exceeded its share of the regional housing need allocation
pursuant to Section 65584 for the planning period for the income
category proposed for the housing development project, provided that
any disapproval or conditional approval shall not be based on any of
the reasons prohibited by Section 65008. If the housing development
project includes a mix of income categories, and the jurisdiction has
not met or exceeded its share of the regional housing need for one
or more of those categories, then this paragraph shall not be used to
disapprove or conditionally approve the project. The share of the
regional housing need met by the jurisdiction shall be calculated
consistently with the forms and definitions that may be adopted by
the Department of Housing and Community Development pursuant to
Section 65400. Any disapproval or conditional approval pursuant to
this paragraph shall be in accordance with applicable law, rule, or
standards.
   (2) The development project as proposed would have a specific,
adverse impact upon the public health or safety, and there is no
feasible method to satisfactorily mitigate or avoid the specific
adverse impact without rendering the development unaffordable to low-
and moderate-income households. As used in this paragraph, a
"specific, adverse impact" means a significant, quantifiable, direct,
and unavoidable impact, based on objective, identified written
public health or safety standards, policies, or conditions as they
existed on the date the application was deemed complete.
Inconsistency with the zoning ordinance or general plan land use
designation shall not constitute a specific, adverse impact upon the
public health or safety.
   (3) The denial of the project or imposition of conditions is
required in order to comply with specific state or federal law, and
there is no feasible method to comply without rendering the
development unaffordable to low- and moderate-income households.
   (4) The development project is proposed on land zoned for
agriculture or resource preservation that is surrounded on at least
two sides by land being used for agricultural or resource
preservation purposes, or which does not have adequate water or
wastewater facilities to serve the project.
   (5) The development project is inconsistent with both the
jurisdiction's zoning ordinance and general plan land use designation
as specified in any element of the general plan as it existed on the
date the application was deemed complete, and the jurisdiction has
adopted a revised housing element in accordance with Section 65588
that is in substantial compliance with this article.
   (A) This paragraph cannot be utilized to disapprove or
conditionally approve a housing development project if the
development project is proposed on a site that is identified as
suitable or available for very low, low-, or moderate-income
households in the jurisdiction's housing element, and consistent with
the density specified in the housing element, even though it is
inconsistent with both the jurisdiction's zoning ordinance and
general plan land use designation.
   (B) If the local agency has failed, in accordance with Section
65583.2, to identify in the inventory of land in its housing element
sites that can be developed for housing within the planning period
and that are sufficient to provide for the jurisdiction's share of
the regional housing need for all income levels pursuant to Section
65584, then this paragraph shall not be utilized to disapprove or
conditionally approve a housing development project proposed for a
site designated in any element of the general plan for residential
uses or designated in any element of the general plan for commercial
uses if residential uses are permitted or conditionally permitted
within commercial designations.  In any action in court, the burden
of proof shall be on the local agency to show that its housing
element does identify adequate sites with appropriate zoning and
development standards and with services and facilities to accommodate
the local agency's share of the regional housing need for the very
low and low-income categories.
   (e) Nothing in this section shall be construed to relieve the
local agency from complying with the Congestion Management Program
required by Chapter 2.6 (commencing with Section 65088) of Division 1
of Title 7 or the California Coastal Act (Division 20 (commencing
with Section 30000) of the Public Resources Code). Neither shall
anything in this section be construed to relieve the local agency
from making one or more of the findings required pursuant to Section
21081 of the Public Resources Code or otherwise complying with the
California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code).
   (f) Nothing in this section shall be construed to prohibit a local
agency from requiring the development project to comply with
objective, quantifiable, written development standards, conditions,
and policies appropriate to, and consistent with, meeting the
jurisdiction's share of the regional housing need pursuant to Section
65584. However, the development standards, conditions, and policies
shall be applied to facilitate and accommodate development at the
density permitted on the site and proposed by the development
project. Nothing in this section shall be construed to prohibit a
local agency from imposing fees and other exactions otherwise
authorized by law that are essential to provide necessary public
services and facilities to the development project.
   (g) This section shall be applicable to charter cities because the
Legislature finds that the lack of housing is a critical statewide
problem.
   (h) The following definitions apply for the purposes of this
section:
   (1) "Feasible" means capable of being accomplished in a successful
manner within a reasonable period of time, taking into account
economic, environmental, social, and technological factors.
   (2) "Housing development project" means a use consisting of either
of the following:
   (A) Residential units only.
   (B) Mixed-use developments consisting of residential and
nonresidential uses in which nonresidential uses are limited to
neighborhood commercial uses and to the first floor of buildings that
are two or more stories. As used in this paragraph, "neighborhood
commercial" means small-scale general or specialty stores that
furnish goods and services primarily to residents of the
neighborhood.
   (3) "Housing for very low, low-, or moderate-income households"
means that either (A) at least 20 percent of the total units shall be
sold or rented to lower income households, as defined in Section
50079.5 of the Health and Safety Code, or (B) 100 percent of the
units shall be sold or rented to moderate-income households as
defined in Section 50093 of the Health and Safety Code, or
middle-income households, as defined in Section 65008 of this code.
Housing units targeted for lower income households shall be made
available at a monthly housing cost that does not exceed 30 percent
of 60 percent of area median income with adjustments for household
size made in accordance with the adjustment factors on which the
lower income eligibility limits are based. Housing units targeted for
persons and families of moderate income shall be made available at a
monthly housing cost that does not exceed 30 percent of 100 percent
of area median income with adjustments for household size made in
accordance with the adjustment factors on which the moderate income
eligibility limits are based.
   (4) "Area median income" means area median income as periodically
established by the Department of Housing and Community Development
pursuant to Section 50093 of the Health and Safety Code. The
developer shall provide sufficient legal commitments to ensure
continued availability of units for very low or low-income households
in accordance with the provisions of this subdivision for 30 years.
   (5) "Neighborhood" means a planning area commonly identified in a
community's planning documents, and identified as a neighborhood by
the individuals residing and working within the neighborhood.
Documentation demonstrating that the area meets the definition of
neighborhood may include a map prepared for planning purposes which
lists the name and boundaries of the neighborhood.
   (6) "Disapprove the development project" includes any instance in
which a local agency does either of the following:
   (A) Votes on a proposed housing development project application
and the application is disapproved.
   (B) Fails to comply with the time periods specified in
subparagraph (B) of paragraph (1) of subdivision (a) of Section
65950. An extension of time pursuant to Article 5 (commencing with
Section 65950) shall be deemed to be an extension of time pursuant to
this paragraph.
   (i) If any city, county, or city and county denies approval or
imposes restrictions, including design changes, a reduction of
allowable densities or the percentage of a lot that may be occupied
by a building or structure under the applicable planning and zoning
in force at the time the application is deemed complete pursuant to
Section 65943, that have a substantial adverse effect on the
viability or affordability of a housing development for very low,
low-, or moderate-income households, and the denial of the
development or the imposition of restrictions on the development is
the subject of a court action which challenges the denial, then the
burden of proof shall be on the local legislative body to show that
its decision is consistent with the findings as described in
subdivision (d) and that the findings are supported by substantial
evidence in the record.
   (j) When a proposed housing development project complies with
applicable, objective general plan and zoning standards and criteria,
including design review standards, in effect at the time that the
housing development project's application is determined to be
complete, but the local agency proposes to disapprove the project or
to approve it upon the condition that the project be developed at a
lower density, the local agency shall base its decision regarding the
proposed housing development project upon written findings supported
by substantial evidence on the record that both of the following
conditions exist:
   (1) The housing development project would have a specific, adverse
impact upon the public health or safety unless the project is
disapproved or approved upon the condition that the project be
developed at a lower density. As used in this paragraph, a "specific,
adverse impact" means a significant, quantifiable, direct, and
unavoidable impact, based on objective, identified written public
health or safety standards, policies, or conditions as they existed
on the date the application was deemed complete.
   (2) There is no feasible method to satisfactorily mitigate or
avoid the adverse impact identified pursuant to paragraph (1), other
than the disapproval of the housing development project or the
approval of the project upon the condition that it be developed at a
lower density.
   (k) The applicant or any person who would be eligible to apply for
residency in the development may bring an action to enforce this
section. If in any action brought to enforce the provisions of this
section, a court finds that the local agency disapproved a project or
conditioned its approval in a manner rendering it infeasible for the
development of housing for very low, low-, or moderate-income
households, including farmworker housing, without making the findings
required by this section or without making sufficient findings
supported by substantial evidence, the court shall issue an order or
judgment compelling compliance with this section within 60 days,
including, but not limited to, an order that the local agency take
action on the development project. The court shall retain
jurisdiction to ensure that its order or judgment is carried out and
shall award reasonable attorney's fees and costs of suit to the
plaintiff or petitioner who proposed the housing development, except
under extraordinary circumstances in which the court finds that
awarding fees would not further the purposes of this section. If the
court determines that its order or judgment has not been carried out
within 60 days, the court may issue further orders as provided by law
to ensure that the purposes and policies of this section are
fulfilled, including, but not limited to, an order to vacate the
decision of the local agency, in which case the application for the
project, as constituted at the time the local agency took the initial
action determined to be in violation of this section, along with any
standard conditions determined by the court to be generally imposed
by the local agency on similar projects, shall be deemed approved
unless the applicant consents to a different decision or action by
the local agency.
   (l) If the court finds that the local agency (1) acted in bad
faith when it disapproved or conditionally approved the housing
development in violation of this section and (2) failed to carry out
the court's order or judgment within 60 days as described in
paragraph (k), the court in addition to any other remedies provided
by this section, may impose fines upon the local agency that the
local agency shall be required to deposit into a housing trust fund.
Fines shall not be paid from funds that are already dedicated for
affordable housing, including, but not limited to, redevelopment or
low- and moderate-income housing funds and federal HOME and CDBG
funds. The local agency shall commit the money in the trust fund
within five years for the sole purpose of financing newly constructed
housing units affordable to extremely low, very low, or low-income
households. For purposes of this section, "bad faith" shall mean an
action that is frivolous or otherwise entirely without merit.
   (m) Any action brought to enforce the provisions of this section
shall be brought pursuant to Section 1094.5 of the Code of Civil
Procedure, and the local agency shall prepare and certify the record
of proceedings in accordance with subdivision (c) of Section 1094.6
of the Code of Civil Procedure no later than 30 days after the
petition is served, provided that the cost of preparation of the
record shall be borne by the local agency. Upon entry of the trial
court's order, a party shall, in order to obtain appellate review of
the order, file a petition within 20 days after service upon it of a
written notice of the entry of the order, or within such further time
not exceeding an additional 20 days as the trial court may for good
cause allow. If the local agency appeals the judgment of the trial
court, the local agency shall post a bond, in an amount to be
determined by the court, to the benefit of the plaintiff if the
plaintiff is the project applicant.
   (n) In any action, the record of the proceedings before the local
agency shall be filed as expeditiously as possible and,
notwithstanding Section 1094.6 of the Code of Civil Procedure or
subdivision (m) of this section, all or part of the record may be
prepared (1) by the petitioner with the petition or petitioner's
points and authorities, (2) by the respondent with respondent's
points and authorities, (3) after payment of costs by the petitioner,
or (4) as otherwise directed by the court. If the expense of
preparing the record has been borne by the petitioner and the
petitioner is the prevailing party, the expense shall be taxable as
costs.
65589.6.  In any action taken to challenge the validity of a
decision by a city, county, or city and county to disapprove a
project or approve a project upon the condition that it be developed
at a lower density pursuant to Section 65589.5, the city, county, or
city and county shall bear the burden of proof that its decision has
conformed to all of the conditions specified in Section 65589.5.
65589.7.  (a) The housing element adopted by the legislative body
and any amendments made to that element shall be immediately
delivered to all public agencies or private entities that provide
water or sewer services for municipal and industrial uses, including
residential, within the territory of the legislative body. Each
public agency or private entity providing water or sewer services
shall grant a priority for the provision of these services to
proposed developments that include housing units affordable to lower
income households.
   (b) A public agency or private entity providing water or sewer
services shall adopt written policies and procedures, not later than
July 1, 2006, and at least once every five years thereafter, with
specific objective standards for provision of services in conformance
with this section. For private water and sewer companies regulated
by the Public Utilities Commission, the commission shall adopt
written policies and procedures for use by those companies in a
manner consistent with this section. The policies and procedures
shall take into account all of the following:
   (1) Regulations and restrictions adopted pursuant to Chapter 3
(commencing with Section 350) of Division 1 of the Water Code,
relating to water shortage emergencies.
   (2) The availability of water supplies as determined by the public
agency or private entity pursuant to an urban water management plan
adopted pursuant to Part 2.6 (commencing with Section 10610) of
Division 6 of the Water Code.
   (3) Plans, documents, and information relied upon by the public
agency or private entity that is not an "urban water supplier," as
defined in Section 10617 of the Water Code, or that provides sewer
service, that provide a reasonable basis for making service
determinations.
   (c) A public agency or private entity that provides water or sewer
services shall not deny or condition the approval of an application
for services to, or reduce the amount of services applied for by, a
proposed development that includes housing units affordable to lower
income households unless the public agency or private entity makes
specific written findings that the denial, condition, or reduction is
necessary due to the existence of one or more of the following:
   (1) The public agency or private entity providing water service
does not have "sufficient water supply," as defined in paragraph (2)
of subdivision (a) of Section 66473.7, or is operating under a water
shortage emergency as defined in Section 350 of the Water Code, or
does not have sufficient water treatment or distribution capacity, to
serve the needs of the proposed development, as demonstrated by a
written engineering analysis and report.
   (2) The public agency or private entity providing water service is
subject to a compliance order issued by the State Department of
Health Services that prohibits new water connections.
   (3) The public agency or private entity providing sewer service
does not have sufficient treatment or collection capacity, as
demonstrated by a written engineering analysis and report on the
condition of the treatment or collection works, to serve the needs of
the proposed development.
   (4) The public agency or private entity providing sewer service is
under an order issued by a regional water quality control board that
prohibits new sewer connections.
   (5) The applicant has failed to agree to reasonable terms and
conditions relating to the provision of service generally applicable
to development projects seeking service from the public agency or
private entity, including, but not limited to, the requirements of
local, state, or federal laws and regulations or payment of a fee or
charge imposed pursuant to Section 66013.
   (d) The following definitions apply for purposes of this section:
   (1) "Proposed developments that include housing units affordable
to lower income households" means that dwelling units shall be sold
or rented to lower income households, as defined in Section 50079.5
of the Health and Safety Code, at an affordable housing cost, as
defined in Section 50052.5 of the Health and Safety Code, or an
affordable rent, as defined in Section 50053 of the Health and Safety
Code.
   (2) "Water or sewer services" means supplying service through a
pipe or other constructed conveyance for a residential purpose, and
does not include the sale of water for human consumption by a water
supplier to another water supplier for resale. As used in this
section, "water service" provided by a public agency or private
entity applies only to water supplied from public water systems
subject to Chapter 4 (commencing with Section 116275) of Part 12 of
Division 104 of the Health and Safety Code.
   (e) This section is intended to neither enlarge nor diminish the
existing authority of a city, county, or city and county in adopting
a housing element. Failure to deliver a housing element adopted by
the legislative body or amendments made to that element, to a public
agency or private entity providing water or sewer services shall
neither invalidate any action or approval of a development project
nor exempt a public agency or private entity from the obligations
under this section. The special districts which provide water or
sewer services related to development, as defined in subdivision (e)
of Section 56426, are included within this section.
   (f) The Legislature finds and declares that this section shall be
applicable to all cities and counties, including charter cities,
because the Legislature finds that the lack of affordable housing is
a matter of vital statewide importance.
65589.8.  A local government which adopts a requirement in its
housing element that a housing development contain a fixed percentage
of affordable housing units, shall permit a developer to satisfy all
or a portion of that requirement by constructing rental housing at
affordable monthly rents, as determined by the local government.
   Nothing in this section shall be construed to expand or contract
the authority of a local government to adopt an ordinance, charter
amendment, or policy requiring that any housing development contain a
fixed percentage of affordable housing units.