Senate Bill No. 1087 …

                            Senate Bill No. 1087

                               CHAPTER 727

  An act to amend Section 65589.7 of the Government Code, and to add
Section 10631.1 to the Water Code, relating to housing.

                [Approved by Governor October 7, 2005. Filed with
                       Secretary of State October 7, 2005.]

                        legislative counsel's digest
   SB 1087, Florez. Housing elements: services.
   (1)  The Planning and Zoning Law requires each city, county, or city
and county to prepare and adopt a general plan for its jurisdiction that
contains certain mandatory elements, including a housing element. One
part of the housing element is an assessment of housing needs and an
inventory of resources and constraints relevant to meeting those needs.
That law also requires that the housing element adopted by the legislative
body of the city, county, or city and county and any amendments made to
that element be delivered to all public agencies or private entities that
provide water services at retail or sewer services within the territory of the
legislative body.
   The Planning and Zoning Law also requires each public agency or
private entity providing these services to grant a priority for the provision
of available and future resources or services to proposed housing
developments that help meet the legislative body's share of the regional
housing need for lower income households as identified in the housing
element and any amendments to the housing element.
   This bill would require that the adopted housing element and any
amendments be delivered immediately to all public agencies or private
entities that provide water or sewer services, as specified, would apply
these provisions to proposed developments that include housing units
affordable to lower income households, and would require, on or before
July 1, 2006, that these public agencies or private entities adopt written
policies and procedures, and at least once every 5 years thereafter, with
specific objective standards for provision of these services in conformance
with these provisions. The bill would also require the Public Utilities
Commission to adopt written policies and procedures for use by private
water and sewer companies regulated by the commission in a manner
consistent with these provisions. By increasing the duties of local public
officials, the bill would impose a state-mandated local program.
   This bill would also provide that a provider of water or sewer services
may not deny or condition the approval of an application for services, or
reduce the amount of the services applied for, if the proposed development
includes housing affordable to lower income households, except upon
making specified findings.

 
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   The bill would make these provisions applicable to charter cities.
   (2)  The Urban Water Management Planning Act requires urban water
suppliers to prepare and adopt urban water management plans for
submission to the Department of Water Resources, which identify and
quantify the existing and planned sources of water available to the water
supplier's service area based on specified factors.
   This bill would also require that the water use projections required by
these provisions include the projected water use for single-family and
multifamily residential housing for lower income households as identified
in the housing element of any city, county, or city and county in the
service area of the supplier.
   (3)  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 with regard to certain mandates no
reimbursement is required by this act for a specified reason.
   With regard to any other mandates, this bill would provide that, if the
Commission on State Mandates determines that the bill contains costs so
mandated by the state, reimbursement for those costs shall be made
pursuant to the statutory provisions noted above.

 The people of the State of California do enact as follows:

   SECTION 1.  Section 65589.7 of the Government Code is amended to
read:
   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



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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"


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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.
   SEC. 2.  Section 10631.1 is added to the Water Code, to read:
   10631.1.  (a)  The water use projections required by Section 10631
shall include projected water use for single-family and multifamily
residential housing needed for lower income households, as defined in
Section 50079.5 of the Health and Safety Code, as identified in the
housing element of any city, county, or city and county in the service area
of the supplier.
   (b)  It is the intent of the Legislature that the identification of projected
water use for single-family and multifamily residential housing for lower
income households will assist a supplier in complying with the
requirement under Section 65589.7 of the Government Code to grant a
priority for the provision of service to housing units affordable to lower
income households.
   SEC. 3.  The Legislature finds and declares that Sections 65104 and
66014 of the Government Code provide local agencies with authority to
levy fees sufficient to pay for the program or level of service mandated by
this act.
   SEC. 4.  No reimbursement is required by this act pursuant to Section
6 of Article XIII B of the California Constitution because a local agency or
school district has the authority to levy service charges, fees, or
assessments sufficient to pay for the program or level of service mandated
by this act, within the meaning of Section 17556 of the Government Code.
   However, if the Commission on State Mandates determines that this act
contains other costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant to Part
7 (commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.


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