To: MAYOR AND CITY COUNCIL
From: LUKE SMUDE, ASSISTANT TO THE CITY MANAGER
TITLE
title
DISCUSSION AND POSSIBLE ACTION REGARDING THE CITY COUNCIL’S POLICY POSITION ON CALIFORNIA ASSEMBLY BILL 2560 (ALVAREZ) WHICH PROPOSES TO ELIMINATE THE PROVISION IN EXISTING LAW THAT PREVENTS HOUSING DENSITY BONUS APPLICATION IN THE COASTAL ZONE
PROVIDE DIRECTION TO STAFF ON THE PREPARATION OF A LETTER OR RESOLUTION ARTICULATING THE CITY COUNCIL’S POSITION ON AB 2560
end
EXECUTIVE SUMMARY
California Assembly Bill 2560 (AB2560) was introduced on February 14, 2024 by Assembly Member David Alvarez, co-authored by State Senator Scott Wiener, and seeks to remove the existing Coastal Zone exemption from the State’s Density Bonus Law.
BACKGROUND
The Coastal Zone is a legislatively-defined geographic region that establishes the area regulated under the Coastal Act, and encompasses both land and water areas along the length of the California coastline. The California Coastal Act (Act) of 1976 regulates development in the Coastal Zone and requires that any new development must comply with the requirements of the Act as set forth by the California Coastal Commission which regulates proposed developments through coastal development permits and certification of Local Coastal Plans.
Density Bonus Law is a State statute created to support the development of affordable housing by providing incentives to developers. Under this law, which only applies in areas already zoned residential, developers who include a certain percentage of affordable housing units in their projects are eligible for various bonuses, such as increased density (i.e., the ability to build more units than typically allowed by local zoning regulations), reduced parking requirements, and other regulatory concessions. To qualify for these bonuses, developers must set aside a certain percentage of their units for low-income, moderate-income, or very low-income households, as defined by state law. The exact requirements and incentives vary depending on the local jurisdiction and the specifics of the development project. Currently, the Coastal Zone is exempted from Density Bonus Law.
AB 2560 would remove the exemption of Density Bonus Law within the Coastal Zone and allow developers of qualifying projects to apply for the density bonus or other incentives afforded under Density Bonus Law. The approval of AB 2560 would effectively undermine the City’s Local Coastal Plan, which regulates development within the Coastal Zone while ensuring the preservation of and access to the coast. This agenda item provides the City Council an opportunity to discuss AB 2560 and give direction on the preparation of a letter or Resolution that reflects the City’s position on the bill.
COORDINATION
This item was coordinated with the Waterfront and Economic Development Department.
FISCAL IMPACT
There is no fiscal impact associated with the item.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• California Assembly Bill 2560