(a) On or before October 1 of each year following the approval of a city‘s, county‘s, or city and county’s housing sustainability district by the department under Section 66202, the department shall issue a certificate of compliance if it finds that the city, county, or city and county has satisfied all of the following requirements:

(1) The city, county, or city and county has in effect a housing sustainability district ordinance adopted pursuant to Section 66201.

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(2) The housing sustainability district complies with the minimum requirements of subdivision (b) of Section 66201.

(3) The city, county, or city and county has only denied a permit for a residential development consistent with its housing sustainability district ordinance, the provisions of its housing element, or the requirements of this chapter.

(4) The design review standards, if any, adopted by the city, county, or city and county comply with the requirements of Section 66207.

(b) If the department finds that a city, county, or city and county does not satisfy all of the requirements of subdivision (a), the department may deny certification of the housing sustainability district. A denial pursuant to this subdivision shall not affect the validity of the housing sustainability district ordinance or the application of the ordinance to a development or proposed development within the housing sustainability district.

(c) The department may require a city, county, or city and county to provide any information it deems necessary to review that city’s, county’s, or city and county’s housing sustainability district as required by this section.

(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.)