A housing bill that local governments love and affordable housing advocates hate has passed the state Legislature.

Assembly Bill 2000 by Assemblyman Tony Mendoza (D-Norwalk) would permit a city or county in which newly constructed housing exceeds the jurisdiction's regional fair share to count the "excess" units during the next round of the regional housing needs allocation (RHNA). For example, if a city is told by its council of governments and the Department of Housing and Community Development to plan for 50 units of moderate-income housing during a planning period but builders provide 60 units, the city would have 10 units to count against its next allocation of moderate-income units. (A city could not produce extra moderate-income units and count them against future low- or very low-income allocations.)

Local governments say the bill provides an incentive for cities and counties to approve needed housing. On the other hand, affordable housing advocates argue the bill marks a dangerous shift because it treats the RHNA numbers as a ceiling, rather than as a floor. Plus, the advocates say, RHNA numbers are forward-looking; the allocations don't consider housing shortages that have accumulated over the years.

The City of Cerritos is sponsoring AB 2000. Through the development of several senior housing complexes, Cerritos exceeded its RHNA allocation of very low- and low-income units for the 1998-2005 planning period. Cerritos wants credit for this excess in the current RHNA cycle.

The Senate narrowed the bill a bit by requiring deed restrictions for units in the lowest income levels and by permitting HCD to establish criteria for determining the appropriate income level when providing credit for excess units. Still, housing advocates and HCD remain sharply opposed.

Somewhat surprisingly, the bill passed easily in both houses. The state Senate on Tuesday voted 28-3 for the bill, which now heads to the governor. (Procedurally, the Legislature is holding all bills for the time being because Gov. Schwarzenegger has vowed to veto any bill that reaches him before a budget is passed.) No matter when AB 2000 actually lands on the governor's desk, he may very well veto it. Not only is HCD opposed, but the building industry appears to have reservations as well.

What of the "big" land use bill — SB 375? Housing advocates this week very reluctantly signed on, and the deal is holding for now. The bill is pending on the Assembly floor.

– Paul Shigley