​[[{“value”:”California Bill Could Require Apartment Developers to Fund Grocery Construction

California lawmakers are considering legislation that would more closely link new rental housing development with access to grocery stores in areas identified as food deserts or at risk of becoming one. The proposal, reported by the California Apartment Association, would place new review obligations on local governments and potential mitigation requirements on apartment developers.

Assembly Bill 1674, introduced by Assemblymember Patrick Ahrens, D-Sunnyvale, has advanced in the state Legislature after the Assembly Agriculture Committee voted 5-0 in favor of the measure. The bill has now been referred to the Assembly Committee on Housing and Community Development for further consideration, keeping the proposal in the early stages of the legislative process.

Under AB 1674, local governments would be required to evaluate proposed housing developments located in areas defined as food deserts or at risk of becoming one. As part of that review, officials would need to determine whether the planned project would reduce the site’s capacity to accommodate a grocery store, either immediately or in the future.

If a housing proposal is found to diminish potential grocery store space, the bill would obligate the developer to mitigate the impact in one of two ways. The project sponsor could provide equivalent space and necessary infrastructure on the site to support a grocery store, or instead contribute to a fund intended to help develop a grocery store within half a mile of the housing community. These requirements would apply broadly across new residential rental formats, including apartments, townhomes, condominiums and mobile home parks.

The California Apartment Association and the California Building Industry Association have formally opposed the measure. The organizations argue that the bill could increase the risk that local jurisdictions deny housing approvals if developers are unable to show that grocery store capacity is preserved or cannot satisfy the mitigation standards outlined in the legislation. They contend this could add another layer of uncertainty to the entitlement process for new residential projects.

Industry groups have also raised concerns about the bill’s reference to areas that are “at risk” of becoming food deserts. They note that this term is not defined in the current language of the proposal, which they say could give local governments significant discretion in determining when and how the law applies. According to these opponents, such discretion may lead to uneven implementation between jurisdictions and create additional complexity for developers planning multifamily and other rental housing projects across the state.

The post California Bill Would Make Apartment Developers Help Fund Grocery Stores in Food Deserts appeared first on CRE Market Beat.

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