State Housing Laws: AB 2011 - Housing Along Commercial Corridors

We hear a lot about “state housing laws”, but what are they and how do they actually affect Cupertino? We will be doing an on-going series of posts on state laws and actions that are relevant to housing and community development in Cupertino.


Assembly Bill 2011 - The Affordable Housing and High Road Jobs Act

Authored by Assemblymember Buffy Wicks


Summary:

Assembly Bill 2011 (AB 2011) provides a simplified approval process for specific types of housing projects built in areas primarily zoned for office, retail, or parking uses. Called the Affordable Housing and High Road Jobs Act, it creates more opportunities to address the affordable housing crisis, while simultaneously furthering labor standards and climate change mitigation measures.

Details:
AB 2011 allows projects to go through a simplified approval process with permit-processing time requirements, but have different, required characteristics depending on the percentage of affordable housing units in the project:

For mixed-income housing projects:

  • Primarily zoned for office, retail, or parking

  • Next to a “commercial corridor” and has a minimum of 50 feet of frontage along a commercial corridor

    • Commercial corridor = highway, 70-150 ft. right of way.

  • 20 acres or less

  • Doesn’t require demolition of certain types of housing, historical structures, or structures with prior residential use within the last 10 years

  • Not located in a site zoned for housing, unless it is multi-family housing

For 100% affordable housing projects:

  • Primarily zoned for office, retail, or parking

  • Additional site requirements

In addition, projects are also subject to further additional site requirements, regardless of the amount of affordable housing (see a full list in the technical document linked at the end of the post).

To simplify development and in recognition of the environmental benefits of denser housing along commercial corridors, all AB 2011 projects are CEQA exempt, meaning that they are not subject to lawsuits filed under the California Environmental Quality Act (CEQA). 

Finally, all AB 2011 projects must adhere to the following labor standards:

  • Prevailing wages required

  • For projects with 50 or more units, there are contracting apprenticeship, and healthcare contribution requirements

  • Standards must be in all contracts, and compliance with these requirements must be certified with the applicable local government and agencies responsible for enforcement


While AB 2011 may be specifically tailored, it is a good step forwards in creating more affordable housing opportunities.  Analysts find that while AB 2011 may only apply to 1.2% of parcels statewide, they also highlight significant, potential benefits: increased capacity for 1.6 to 2.4 million homes, increased property values, lower GHG emissions, and reduced housing costs.

In Cupertino, the parcel (#35908028) at 20690 Stevens Creek Blvd is one site that could support an AB 2011 project. It has an empty commercial building that used to be Pizza Hut, and a minimally used parking lot between Staples and the Party City store. Currently, the site has significant restrictions that might require conditional use permits from the planning commission. An AB 2011 project would replace this lengthy process with a simplified approval process and permitting timeline, provided the project meets all other site, unit-mix, and labor criteria.



Another area that could support an AB 2011 project is the South De Anza special area, specifically parcels south of Wildflower Way and west of S. De Anza Blvd. While current site occupancy might represent a hurdle for development, demolition of existing housing is not allowed, and while there are several small businesses in these parcels that have been active for decades, other parcels are less stable. Parcels at addresses 1451 (Jack in the Box) or 1505 (Kelly-Moore) on S De Anza Blvd could support potential projects. While business owners might need to be convinced to move, AB 2011’s streamlined permitting process will help make a more economically convincing case for proposed projects.


Ultimately AB 2011 directly addresses key challenges of our time: housing affordability, labor rights,  and climate change. The spaces along our main roads, like Stevens Creek and De Anza, are ideal areas for further development because of their proximity to transit (existing bus routes), educational facilities (De Anza College), as well as employment centers. AB 2011 projects would require specific labor standards, and provide opportunities for union work.

Finally, we know that denser, more walkable and transit-oriented urban development represents one of the most effective actions cities can take toward climate mitigation and adaptation (by reducing transportation emissions and reducing the need for further urban sprawl, among other effects). With its specific scope and measured approach, AB 2011 is a limited but important tool to use for smarter and impactful development in the right places.

Resources

ABAG Technical Document

CA YIMBY Overview

Legislature Factsheet

Urban Footprint Analysis

Notes

“Primarily Used” - is stated as “Principally permitted use", which means a use that may occupy more than one-third of the square footage of designated use on the site and does not require a conditional use permit. The same definition is used in both AB 2011 and SB 6.

“Abuts a commercial corridor…” - A “‘Commercial corridor’ means a highway, as defined in Vehicle Code Section 360, that is not a freeway, as defined in Vehicle Code Section 332, and that has a right-of-way, as defined in Vehicle Code Section 525, of at least 70 feet but not greater than 150 feet.” Abut, within the context of an area of land or a building, means to “be next to or have a common boundary with, ex: ‘gardens abutting Prescott Street’”

”Urbanized Area” - Defined by the US Census Bureau, this is any area with at least 2,000 housing units or 5,000 people. All of Cupertino, and the south bay, is within an “urbanized area”