21 SUPPLEMENTAL - Laserfiche WebLink

December 20, 2022 Page 5 for such cities. HCD indicates that these programs include Caltrans' SB 1 Sustainable Communities grants, the Affordable Housing and Sustainable Communities Program, and SB 2 Housing funding. In some cases regional agencies such as [Agency] similarly require or provide priority to communities with adequate housing elements or those found adequate by HCD. Consequences of Failure to Obtain Housing Element Approval from HCD A determination by HCD that the City's housing element is not substantially consistent with State law does not,by itself,have the effect of a finding by a court that the Element is inconsistent. State law provides that the City may adopt its own findings explaining why its housing element is consistent with State law despite HCD's findings.13 However,HCD may refer its findings to the Attorney General,who may file suit, and a finding of inconsistency is likely to attract litigation by third parties. Even if the City is ultimately successful in defending its housing element, such litigation is likely to be lengthy and expensive. In addition, the statute of limitations for a challenge will extend for over three years after adoption of the housing element.14 Finally, the City may have less priority for, or be ineligible for, certain funding sources. Conclusion Adoption of a Housing Element meeting state law to the best of the City's ability and obtaining HCD approval would allow the City to comply with Housing Element law by means that are most consistent with the City's planning goals and community desires. Housing Element law does provide a variety of ways by which local communities can satisfy their regional housing needs. Failure to adopt a Housing Element consistent with state law risks a result that is much less acceptable to the City's residents. The City can ensure that it retains the most local control by preparing and adopting a housing element in conformance with State law. ^ 13§65585(f). 14§65009(d). 990052\01\3078344 1