Regional Housing Needs Determination

(RHND)

Regional Housing Needs Allocation

(RHNA)

Appeals Process

Final Allocation

HCD delivers final RHND

HCD review

COG develops assessment

COG develops allocation methodology

Housing Elements Completed

HCD is responsible for determining the regional housing needs assessment (segmented by income levels) for each region’s planning body known as a “council of governments” (COG). HCD starts with demographic population information from the California Department of Finance and uses a formula to calculate a figure for each region/COG. Each COG uses its own demographic figures to calculate what it believes the regional housing need is. Each COG then coordinates with HCD — taking into account factors not captured in the calculations — to arrive at a final figure. HCD has the authority to issue the final determination.

Once HCD and the COG have agreed to the region’s assessment figure (the amount of housing that must be planned for), the COG takes over and is responsible for divvying up (allocating) the housing need amongst all of the jurisdictions (cities/counties) within that region.

- 2 years

-1.5 years

-1 year

Jurisdictions can appeal their RHNA to the COG. State Housing Element law allows three bases for appeals: 1. Local planning factors and information on affirmatively furthering fair housing (AFFH). 2. Application of final methodology 3. Change in circumstance

Once the appeals process is finalized, jurisdictions receive their final RHNA allocation for purposes of updating their housing elements.

Housing elements are a part of general plans, which serve as the local government’s "blueprint" for how the city and/or county will grow and develop and include seven elements: land use, transportation, conservation, noise, open space, safety, and housing. California’s housing-element law acknowledges that, in order for the private market to adequately address the housing needs and demand of Californians, local governments must adopt plans and regulatory systems that provide opportunities for (and do not unduly constrain), housing development. As a result, housing policy in California rests largely upon the effective implementation of local general plans and, in particular, local housing elements.

Beginning of RHNA cycle

Update of previous housing element

Submission of draft to HCD

Revisions and adoption

Submission of adopted housing element to HCD

Appeals are filed

Appeals hearings at COG

The Regional Housing Needs Determination (RHND) is required to incorporate the following factors:

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(A) Anticipated household growth associated with projected population increases.

(B) Household size data and trends in household size.

(C) The percentage of households that are overcrowded and the overcrowding rate for a comparable housing market.

(D) The rate of household formation, or headship rates, based on age, gender, ethnicity, or other established demographic measures.

(E) The vacancy rates in existing housing stock, and the vacancy rates for healthy housing market functioning and regional mobility, as well as housing replacement needs. For purposes of this subparagraph, the vacancy rate for a healthy rental housing market shall be considered no less than 5 percent.

(F) Other characteristics of the composition of the projected population.

(G) The relationship between jobs and housing, including any imbalance between jobs and housing.

(H) The percentage of households that are cost burdened and the rate of housing cost burden for a healthy housing market.

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The Regional Housing Needs Allocation (RHNA) plan is required to further the following objectives:

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(1) Increasing the housing supply and the mix of housing types, tenure, and affordability in all cities and counties within the region in an equitable manner, which shall result in each jurisdiction receiving an allocation of units for low- and very low income households.

(2) Promoting infill development and socioeconomic equity, the protection of environmental and agricultural resources, the encouragement of efficient development patterns, and the achievement of the region’s greenhouse gas reductions targets provided by the Air Resources Board pursuant to Section 65080.

(3) Promoting an improved intraregional relationship between jobs and housing, including an improved balance between the number of low-wage jobs and the number of housing units affordable to low-wage workers in each jurisdiction.

(4) Allocating a lower proportion of housing need to an income category when a jurisdiction already has a disproportionately high share of households in that income category, as compared to the countywide distribution of households in that category from the most recent American Community Survey.

(5) Affirmatively furthering fair housing.

Concentrating housing near jobs, transit, and high-cost coastal areas promotes environmental goals for the following reasons:

Reduced car commutes, car dependence, and fewer GHG emissions

Less development in fire-prone areas

Climate adaptation with a higher population living in cooler areas

Less destruction of natural habitats through urban sprawl

Denser development, which is more energy and resource efficient