An overview of recent developments in land use, environmental and natural resources law and their impacts on you and doing business in California.

1. Real Estate Development Law Update
Presented by:
John Condas
Bill Devine
Allen Matkins Leck Gamble Mallory & Natsis LLP
February 26, 2014
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.

2. Overview
O
i
• RDAs
• Affordable Housing
• Subdivision Map Act
• Impact Fees and Exactions
• CEQA
• Noteworthy Updates
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.
2

3. RDAs
3
• ABs 26 and 1484: dissolution and winding down of
RDAs
• AB 1484 established clearer procedures for disposition
of unencumbered RDA assets
• SB 341 provides some clarity regarding operation of
p
y g
g p
Successor Agencies of Affordable Housing Functions
and Assets
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.

4. RDAs
4
• AB 471 (signed by Governor Brown on February 19,
2014): Somewhat Loosens the Requirements for Using
Infrastructure Financing Districts
o IFDs can divert property tax increment revenues for 30
years to finance infrastructure and public facilities
o Cit must develop an i f t t
City
td
l
infrastructure plan and send t all
l
d
d to ll
affected landowners and hold a public hearing
o Every local agency which would contribute its property
tax increment revenue must approve the IFD; Schools
cannot contribute its tax increment revenue
o Voters must approve, with 2/3 vote, formation of the IFD,
issuance of bonds and set the IFD’s appropriation limit
(via majority vote)
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.

5. RDAs
o AB 471 now allows RDA project areas to be included in
IFD areas, assuming the city
• has received a “finding of completion” from Dept. of
Finance
• has complied with all State Controller office RDA audit
findings
• Has no outstanding lawsuits pending against the state
regarding RDA wind-down
• RDA Property now is in play; transactions have been
occurring
• Still uncertainty regarding compliance with
Redevelopment Law affordable housing requirements
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.
5

6. Affordable Ho sing
Housing
6
• Governor Brown Vetoed AB 1129 which would have
1129,
overruled the Palmer case, and allowed local
governments to impose affordable housing
requirements on rental projects
• Latinos United case: The California Density Bonus Law
(Government Code section 65915) trumps local
ordinances which are contrary to the DBL
•Latinos U it d and L
L ti
United d Lagoon V ll ( hi h upheld
Valley (which h ld
density bonuses in excess of DBL) greatly facilitate
use of the DBL
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.

7. Subdivision
S bdi ision Map Act
• AB 116: another two year automatic mandatory
two-year
extension of valid tentative maps; this extension, like
all previous extensions, covers “related state permits”,
e.g. Section 1602 Streambed Alteration Agreements
• Vesting Map Protection: to insulate against
subsequently adopted moratoria, rezones, etc.
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.
7

8. School Fees
8
•Cresta Bella case clarifies that burden is on School
Districts to support imposition of impact fees
•Need for School Bond, or Tier 3 School Fees
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.

9. Exactions, Impact Fees, New Standards
E
ti
I
tF
N
St d d
•CBIA v San Jose
v.
o Inclusionary affordable housing program
o T i l court invalidates – l k of nexus
Trial
ti
lid t
lack f
o Appellate court upholds – Police Power
o Reasonable relationship standard does not apply
according to court
oN
Now b f
before state Supreme Court
t t S
C t
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.
9

10. Exactions, Impact Fees, New Standards
E
ti
I
tF
N
St d d
•Koontz v St Johns River
v. St.
o Background/Facts
oG
Government exaction of money governed by
t
ti
f
db
Nollan/Dolan
o “Essential nexus” and “rough proportionality”
Essential nexus
rough proportionality
o Ad hoc v. legislative application
oR
Reasonable relationship v. N ll /D l
bl
l ti
hi
Nollan/Dolan
o Uncertainty
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.
10

11. CEQA Update
U d t
•SB 743
oN
New E
Exemption
i
o Aesthetics and Parking impacts – not significant
o New approach to traffic analysis and impacts
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.
11

12. SB 743 – N
New E
Exemption Requirements
ti
R
i
t
•Residential,
•Residential employment center mixed use
center,
development within transit priority area
•What is transit priority area?
•Consistent with SP which has EIR
•Consistent with approved SCS or APS
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.
12

13. Other CEQA Streamlining
13
•SB 375
o Transit priority projects
o Consistent with SCS or APS
o Meet 8 environmental criteria
o Meet 7 land use criteria
g
p
o One other criteria – Affordable Housing or Open
Space
o Exemption o st ea
e pt o or streamlining
g
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.

14. Other CEQA Streamlining
•SB 226 – Streamlining
o Location
o Performance standards
o Consistent with approved SCS or APS
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.
14

15. CEQA Update
•Neighbors for Smart Growth
o Background
o Baseline traffic analysis
o Current conditions
o Future conditions
o Do both
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.
15

16. CEQA
16
• Concerned Dublin Citizens case: upholds use of
CEQA exemption when project
o Is a residential project (mixed use projects can qualify, as
long as project is “residential in character”)
o Is consistent with a Specific Plan
o Complies with Public Resources Code section 21166:
• There are not substantial changes in the project, requiring
major revisions t th EIR
j
i i
to the
• There are no changed circumstances which require major
revisions to the EIR
• There is no new information now available, which was not
available when the EIR was certified
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.

17. Noteworthy
Note orth Updates
•Prevailing Wages – SB 7 and South Gate Senior
Villas Case
•Mingo Logan Case
o EPA may terminate 404 permits post-issuance
•EPA/Corps Draft Rule – Jurisdictional Waters
•State Water Quality Control Policy
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.
17

18. Contact
C t t
18
John Condas
Bill Devine
(949) 851.5551
jcondas@allenmatkins.com
(949) 851.5412
wdevine@allenmatkins.com
Allen Matkins Leck Gamble Mallory & Natsis LLP
1900 Main Street, 5th Floor
Irvine, CA 92614
www.allenmatkins.com
02.2014 |
© Copyright, 2014 Allen Matkins Leck Gamble Mallory & Natsis LLP. All Rights Reserved. The information contained herein does not constitute
a legal opinion and should not be relied upon by the reader as legal advice or be regarded as a substitute for legal advice.