Local Government Authority Promote Affordable Housing Units

The act clarifies that the existing authority of cities and counties to plan for and regulate the use of land includes the authority to regulate development or redevelopment in order to promote the construction of new affordable housing units. The provisions of the state's rent control statute do not apply to any land use regulation that restricts rents on newly constructed or redeveloped housing units as long as the regulation provides a choice of options to the property owner or land developer and creates one or more alternatives to the construction of new affordable housing units on the building site. The act also states that it should not be construed to authorize a local government to adopt or enforce any ordinance or regulation that would have the effect of controlling rent on any existing private residential housing unit in violation of the existing statutory prohibition on rent control.

The act prohibits a local government from exercising this new regulatory authority unless the local government demonstrates, at the time it enacts a land use regulation for the purpose of exercising such authority, it has taken one or more among a list of specified actions to increase the overall number and density of housing units within its jurisdictional boundaries or to promote or create incentives to the construction of affordable housing units.

The act requires the department of local affairs to offer guidance to assist local governments in connection with its implementation.

(Note: This summary applies to this bill as enacted.)