Category: Legislation

Legislative Updates June 23, 2022

6/23/2022

EBRHA is Tracking

AB 2053 - Establishes a massive new state agency, the California Housing Authority, for the purpose of developing mixed income “SOCIAL HOUSING” (emphasis added). This bill calls into question who should own and operate “affordable” rental housing in the state. EBRHA and CalRHA affiliates strongly oppose.
AB 2383 – Protects convicted felons by creating a new class of protected individuals that are not recognized as a protected class by any other civil rights legislation (other than Oakland and San Francisco). The safety and security of tenants will be compromised as the bill treats all felonies as if they are the same. EBRHA and CalRHA affiliates strongly oppose.
AB 2597 - Requires the state Building Standards Commission (BSC) to approve mandatory building standards for the safe indoor ambient air temperature in all rental housing. Despite significant amendments, EBRHA and CalRHA affiliates strongly oppose.

Bills That Did Not Pass

AB 2469 – Establishes a massive statewide registry. Died on the Assembly floor and authored by Ms. Wicks. EBRHA and CalRHA affiliates strongly oppose.
AB 2713 - The newly appointed Assembly Housing chair, Buffy Wicks (D.-Berkeley) sought not just once, twice but three times to author a bill (AB 2713) that would have substantially revised the provisions of AB 1482 (Statutes of 2019). EBRHA and CalRHA affiliates strongly oppose.
AB 2713 - Redefines "just cause" statute. Died on the Assembly floor. EBRHA and CalRHA affiliates strongly oppose.
SB 1335 - Prohibits the use of any form of a person’s credit history/report as part of applying for a residential rental unit if that applicant provides "alternatives of financial responsibility" (not defined). The committee accepted argument that credit reports are universally used by creditors. EBRHA and CalRHA affiliates strongly oppose.

Bill That Passed

AB 1738 - Mandates the installation of EV charging stations in the parking lots of every multifamily property. To comply, residential property owners would have collectively spent billions of dollars to comply with the proposed mandate. With amendments accepted, the bill will not impose that mandate unless owners pull a building permit (new construction) and undertake major remodeling of parking lots. Amended as requested.

MORE DETAILS

Electric charging vehicle station retrofit mandate bill is massively amended
AB 1738 was just amended at our request. Up until two days ago the bill mandated the installation of EV charging stations in the parking lots of every multifamily property. To comply, residential property owners would have collectively spent billions of dollars to comply with the proposed mandate. As amended, and per our request, the bill will not impose that mandate unless owners pull a building permit and undertake major remodeling of parking lots.

Protecting Convicted Felons
AB 2383 essentially creates a new class of protected individuals that are not recognized as a protected class by any other civil rights legislation (other than Oakland and San Francisco). Members of this new class, unlike other protected classes are not in the class because of immutable characteristics. The safety and security of tenants will be compromised. The bill treats all felonies as if they have the same consequences and allows applicants that have a felony to dispute owners decision not to rent. Available rental units would be kept off the market for up to three weeks during which time the applicant presents their arguments. All other qualified applicants would be forced to wait until the “felon” applicant exhausts all of their remedies to rent. The bill will be heard in the Senate next week.

Use of Credit Reports is Preserved
SB 1335 would have prohibit the use of any form of a person’s credit history as part of applying for a residential rental unit if that applicant provides "alternatives of financial responsibility" (not defined) in instances where there is any form of government rent subsidy. This past week the bill died in a committee of the Assembly. The committee accepted our argument that credit reports are universally used by creditors. Creditors review overall debt load and the performance of debt repayment. The bill would have supplanted the lawful and purposeful use of credit reports. The use of the term “alternatives of financial responsibility” did not assure the legal obligation to always pay rent in the event of default nor did it guarantee prompt payment. Unlawful detainers would have become far more complicated than ever. We are quite pleased that the bill died along with many other bill regarding the use of credit reports.

Mandatory Cooling Standards May Become Law
AB 2597 (Bloom) was recently approved by the lower house of the legislature, the Assembly. EBRHA continues to oppose the bill, despite significant amendments. At one time the bill would have declared all existing rental housing to be substandard if at the dwelling did not provide adequate cooling (not defined!). Now, the bill charges the state Housing and Community Development Department to develop, propose and recommend new building code requirements to the state Building Standards Commission for all new and existing housing to provide for adequate residential cooling. This ill defined standard will (not could) cost thousands of dollars per existing dwelling.

AB 2053 (Lee) creates the CA Housing Authority, but more important it establishes the CA Social Housing Act. The sole purpose of the bill is for the entity to “own housing which shall be provided at sub-market prices and allocated (to tenants) according to specific rules (price control) rather than according to market mechanisms (privately owned rental housing). The entity that would be created is charged with the responsibility to buy existing rental and develop new housing. It will openly compete with private ownership and benefit by not paying any taxes, thus driving market prices of all rental housing. The bill will soon be heard in the Senate.

OTHER AFFORDABLE HOUSING & HOMELESSNESS LEGISLATION:

AB 2011 - The Affordable Housing and High Road Jobs Act. This bill would pair new opportunities to build 100% affordable housing and mixed-income housing on underutilized commercial sites with requirements that developers meet a range of responsible wage and training standards. You can read more about AB 2011 here.
AB 2244 - Reduction of Parking Requirements for Religious Institutions. This bill would reduce parking requirements for newly built religious institutions to instead allow for construction of housing developments on that space.
AB 2334 - Double Density Bonus for Affordable Housing. This bill would promote the expansion of affordable housing by increasing the sites available for higher-density affordable housing developments to include areas with low vehicle travel.
AB 2021 - Building Affordable Housing on Tax-Defaulted Properties. This bill would require county tax collectors to compile and distribute a list of tax-defaulted properties to the City, County, and qualifying non-profit organizations and offer them "first dibs" on buying those properties to use for approved purposes like affordable housing or open space, for example.

Legislative Updates June 23, 2022

California Extends Eviction Moratorium Through June

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