(a) (1) A city, county, or city and county that has proposed an ordinance establishing a housing sustainability district in accordance with this chapter may apply to the department for preliminary approval of a housing sustainability district. The department shall make a preliminary determination as to the eligibility of the proposed housing sustainability district for approval.

(2) The department shall approve an application for preliminary approval for a zoning incentive payment if it determines both that the proposed housing sustainability district ordinance meets the requirements of this chapter and the city’s, county’s, or city and county’s housing element is in compliance with Article 10.6 (commencing with Section 65580) of Chapter 3. If the department denies the application, it shall inform the applicant city, county, or city and county of the deficiencies in its application. A city, county, or city and county may reapply upon correcting those deficiencies identified in the department’s denial.

(3) The department shall transmit its determination to the applicant city, county, or city and county.

(b) A city, county, or city and county that has proposed an ordinance establishing a housing sustainability district shall submit all of the following information with its application:

(1) A description of the boundaries of the proposed housing sustainability district.

(2) A description of the developable land within the proposed housing sustainability district.

(3) A description of other residential development opportunities within the city, county, or city and county, including infill development and reuse of existing buildings within already developed areas.

(4) A copy of the city’s, county’s, or city and county’s housing element, adopted in accordance with Article 10.6 (commencing with Section 65580) of Chapter 3.

(5) A copy of the housing sustainability district ordinance adopted pursuant to Section 66201.

(6) A copy of the environmental impact report prepared pursuant to Section 21155.10 of the Public Resources Code.

(7) A copy of the city’s, county’s, or city and county’s design review standards, if any, developed pursuant to Section 66207.

(8) Any other materials that establish the city’s, county’s, or city and county’s compliance with the requirements of Section 66201.

(c) Following preliminary approval of an application pursuant to subdivision (a) and upon receipt of acknowledgment that the housing sustainability district ordinance has taken effect, the department shall confirm approval within 45 days of receipt of the application.

(Added by Stats. 2017, Ch. 371, Sec. 2. (AB 73) Effective January 1, 2018. Conditionally inoperative as provided in Stats. 2017, Ch. 371, Sec. 4.)