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SENATE BILL 435 (HOLLINGSWORTH – 2005)
CHAPTER 496, STATUTES OF 2005
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Senate Bill 435 was a single-section bill that amended Government Code section 65915 only. (See Exhibit #1f) Senator Hollingsworth introduced the bill on February 17, 2005 at the request of the California Association of Realtors and the California Rural Legal Assistance Foundation. (See Exhibits #1a and #3b, page 4)
Senate Bill 435 was assigned to the Senate Committee on Transportation and Housing, the Assembly Committee on Housing and Community Development and the Assembly Committee on Local Government where policy issues raised by the bill were considered. (See Exhibits #3, #6 and #8) The fiscal ramifications of the bill were considered by the Senate Committee on Appropriations and the Assembly Committee on Appropriations. (See Exhibits #2 and #10) Four amendments were made to Senate Bill 435. (See Exhibits #1b through #1e and #2) Subsequent to legislative approval, Governor Arnold Schwarzenegger signed Senate Bill 435 on October 4, 2005, and it was recorded by the Secretary of State on that day as Chapter 496 of the Statutes of 2005. (See Exhibits #1f and #2)
The Unfinished Business analysis prepared by the Office of Senate Floor Analyses provides the following summary of the bill as it was last amended on August 18, 2005:
This bill makes a number of changes to density bonus law. Specifically, the bill:
1. Clarifies that the percentage of affordability for purposes of determining the applicable density bonus is calculated by dividing the number of affordable units by the total number of units before any density bonus is applied.
2. Provides that the density bonus for senior developments applies to senior mobilehome parks as well.
3. Alters the density bonus for moderate-income units by expanding it to all common interest developments, as opposed to just condominium or planned developments, but also by requiring that the units be for sale as opposed to rented by the developer.
4. Clarifies that a project applicant can only receive one density bonus and requires the applicant to choose which density bonus he/she is seeking when the project meets the affordability thresholds for more then one income category.
5. Clarifies that upon resale of a moderate-income unit, the local government shall recapture both the initial subsidy and a proportionate share of appreciation, unless in conflict with another funding source or law.
6. Clarifies that a local government must grant incentives and concessions only to applicants for a traditional density bonus, not to applicants for a land donation density bonus.
7. Makes other technical changes.
(See Exhibit #12c, pages 3 and 4)