Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California

Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California
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Wednesday, September 18, 2024

California Bill CA AB3068 Adaptive reuse: streamlining: incentives. Commercial Adaptive Reuse to Residential by Mary Cummins Real Estate Appraiser


UPDATE 09/27/2024 Governor Gavin Newsom vetoed the bill. Will they try again next legislative session or just give up? We really need a streamlined adaptive reuse process to build more housing without all these extra limiting requirements. And this is exactly why we have a housing crisis. Frustrating.

"While I strongly support efforts to address California's housing crisis by promoting adaptive reuse projects, this bill raises several concerns. The proposed compliance and enforcement mechanisms for labor standards, including the issuance of stop-work orders for any violations, represent a significant expansion beyond existing law, which limits this remedy to a narrow subset of violations, such as those posing immediate threats to health and safety. Moreover, the bill lacks clear procedures for contesting violations or addressing noncompliance, creating considerable uncertainty that could lead to delays, and increased costs, potentially making projects financially unviable - ultimately undermining the bill's goal of increasing housing production."  

I agree the bill as written would not have encouraged reuse because there were so many restrictions.

 https://www.gov.ca.gov/wp-content/uploads/2024/09/AB-3068-Veto-Message.pdf

ORIGINAL 09/18/2024 : AB 3068 would allegedly encourage and expedite the process of converting office space to mixed-use housing projects in city centers like downtown Los Angeles, California. This bill encourages counties and cities to have a plan to streamline the process under certain specific conditions with lots of caveats. In reality it appears to add more red tape making it ineffective and pointless.

This looks like "concepts of a plan" to me. In fact there are so many restrictions and requirements that I think the bill makes it financially unfeasible so it may not help at all. I also don't see a time table or enforcement procedures so this may be worthless. It may just improve the politician's image ala "we're solving the housing crisis!" 

These silly bills and all this red tape are the reason we have a housing crisis in California. Developers are hobbled by the restrictions. They'd lose millions if they built a building that complied with all the restrictions so it'll never happen. The notion of the bill starts out okay but by the time it reaches the Governor's desk you need to jump through a million impossible hoops, every planet in the universe must align and you must agree to lose millions of dollars for the next 100 years. 

From KRON4 “California’s downtowns are desperate for ways to inject vitality into their streetscape,” said Haney, who serves as chair of the Select Committee on Downtown Recovery. “While the demand for living downtown is at an all-time high, many urban centers simply lack the available housing. If we are serious about jump-starting the economic engine of our cities, we need to remove the red tape that makes office to housing conversions nearly impossible.” 

From the actual bill  My summary: Building must be less than 50 years old, must use Union labor, must preserve street facing facades, cannot be subject to a Conditional Use Permit CUP, must have low and mid income housing...

"The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a housing element. That law allows a development proponent to submit an application for a development that is subject to a specified streamlined, ministerial approval process not subject to a conditional use permit, if the development satisfies certain objective planning standards, including that the development is a multifamily housing development that contains two or more residential units.

This bill would deem an adaptive reuse project a use by right in all zones, regardless of the zoning of the site, and subject to a streamlined, ministerial review process if the project meets specified requirements. requirements, subject to specified exceptions. In this regard, an adaptive reuse project, in order to qualify for the streamlined, ministerial review process, would be required to be proposed for an existing building that is less than 50 years old or meets certain requirements regarding the preservation of historic resources, including the signing of an affidavit declaring that the project will comply with the United States Secretary of the Interior’s Standards for Rehabilitation for, among other things, the preservation of exterior facades of a building that face a street, or receive federal or state historic rehabilitation tax credits, as specified. The bill would require an adaptive reuse project to meet specified affordability criteria. In this regard, the bill would require an adaptive reuse project for rental housing to include either 8% of the unit for very low income households and 5% of the units for extremely low income households or 15% of the units for lower income households. For an adaptive reuse project for owner-occupied housing, the bill would require the development to offer either 30% of the units at an affordable housing cost to moderate-income households or 15% of the units at an affordable housing cost to lower income households. The bill would require at least one-half of the square footage of the adaptive reuse project to be dedicated to residential uses. The bill would provide, among other things relating to projects involving adaptive reuse, that parking is not required for the portion of a project consisting of a building subject to adaptive reuse that does not have existing onsite parking. The bill would authorize an adaptive reuse project subject to these provisions to include the development of new residential or mixed-use structures on undeveloped areas and parking areas located on the same parcel as the proposed repurposed building, or on the parcels adjacent to the proposed adaptive reuse project site if certain conditions are met."


Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.


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