Adaptive reuse: streamlining: incentives.

Assembly Member Haney's adaptive reuse legislation establishes a streamlined approval process for converting existing buildings into residential and mixed-use developments, while creating new financial incentives for local governments to support such projects. The bill designates qualified adaptive reuse projects as uses by right across all zones, subject to ministerial review if they meet specific affordability requirements and development standards.

For rental housing projects, developers must dedicate either 8% of units to very low income households and 5% to extremely low income households, or reserve 15% for lower income households. Owner-occupied developments must offer either 30% of units at costs affordable to moderate-income households or 15% affordable to lower income households. Mixed-use projects must maintain at least half of their square footage for residential purposes.

The legislation creates an Adaptive Reuse Investment Incentive Program allowing cities and counties to use increased property tax revenue from approved projects to provide funding for up to 30 years. Projects are exempt from parking requirements if the existing building lacks onsite parking, and from impact fees unless directly related to the conversion from nonresidential to residential use. Buildings over 50 years old or designated as historic resources must comply with federal preservation standards or qualify for historic rehabilitation tax credits.

Local governments must process applications within 60 days for projects with 150 or fewer units and 90 days for larger developments. While municipalities may adopt ordinances specifying local requirements, they cannot prohibit developers from utilizing the state's streamlined process. The bill applies to all California cities, including charter cities, reflecting the legislature's determination that encouraging commercial-to-residential conversions addresses a matter of statewide concern.