Housing development: density bonuses: affordability of for-sale units.

Plain English Breakdown

The official source does not provide specific details on funding or implementation challenges.

Housing Development: Density Bonuses and Affordable For-Sale Units

AB-939 allows developers to meet affordability requirements by selling homes to nonprofits that help low-income families with below-market interest rate loans.

What This Bill Does

• Allows developers to comply with affordability requirements by ensuring for-sale units are initially sold to extremely low, very low, or lower income families participating in a below-market interest rate loan program.
• Requires cities or counties to work with developers to ensure that for-sale units are initially sold to income-qualified individuals if they qualify for a density bonus.
• If an affordable unit is not bought within 180 days after issuance of the certificate of occupancy, it must be purchased by a qualified nonprofit housing corporation.

Who It Names or Affects

• Developers who want to build more homes in cities or counties
• Low-income families looking to buy affordable homes
• Local government agencies responsible for housing development

Terms To Know

Density Bonus Law

A law that allows developers to build more units if they agree to include affordable housing.

Nonprofit Housing Corporation

An organization that helps provide homes for people who cannot afford market-rate prices.

Limits and Unknowns

• The bill does not specify how much the state will fund these programs.
• It is unclear if all local agencies will be able to implement this without additional resources.
• There are no details on how many homes will become available through this program.

Official Summary Text

AB 939, as amended, Schultz.
Housing development: density bonuses: affordability of for-sale units.
Existing law, commonly referred to as the Density Bonus Law, requires a city or county to provide a developer that proposes a housing development, as defined, within the city or county with a density bonus, other incentives or concessions, and waivers or reductions of development standards, as specified, if the developer agrees to construct specified units and meets other requirements. Existing law, among other things, requires compliance with certain affordability requirements, including requiring that the applicant agree to ensure, and that the city, county, or city and county ensure, that a for-sale unit that qualified the applicant for the award of the density bonus is either (1) initially sold to and occupied by a person or family of very low, low, or moderate income, as specified, or (2) if the unit is not purchased by an income-qualified person or family within 180 days after the
issuance of the certificate of occupancy, the unit is purchased by a qualified nonprofit housing corporation, as provided.
This bill would additionally allow the applicant and the city, county, or city and county to comply with the above-described affordability requirements with respect to a for-sale unit by ensuring that the unit is purchased by a nonprofit corporation, as specified, for properties to be sold to
low-income
and occupied by extremely low, very low, or lower income
families who participate in a below-market interest rate loan
program.
program, as described.
By adding to the
duties of local agencies to implement the Density Bonus Law, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Download Bill PDF