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RHNA Process Basics <br /> In California, each City is required to update the Housing Element of its General Plan <br /> with each new eight year RHNA Cycle. Fn 3. The process starts with a Regional <br /> Housing Needs Allocation (RHNA), by which each city is assigned a specified number <br /> of housing units at various levels of housing affordability. The city is then required to <br /> amend its General Plan and zoning to provide specific locations for those housing units. <br /> State Housing and Community Development Dept. (HCD) gets to review the draft <br /> Housing Element, and decide whether to "certify" that that Housing Element meets <br /> State requirements. <br /> For example, for the Pleasanton 2023-2031 RHNA Cycle, here is the regional housing <br /> needs allocation: <br /> Income Pleasanton Percentage of Rent affordable to <br /> Category RHNA Total Households at or <br /> Allocation Below: <br /> Very Low 1,750 units 29.3% 50% AMI* <br /> Low 1,008 units 16.9% 80% AMI* <br /> Moderate 894 units 15.0% 110% AMI* <br /> Above-Moderate 2,313 units 38.8% <br /> Total 5,965 units 100.0% <br /> *Area Median Income. Rent plus utilities cannot exceed 30% of income for families making a specified <br /> percentage[50%, 80%, or 110%] of the Area Median Income (AMI). "Area"for Pleasanton is"Alameda <br /> County". <br /> Thus, 61.2% of Pleasanton's new units are prescribed to be price controlled. The <br /> subsidy required to maintain the specified rent controls for those 61.2% units would cost <br /> about $51,087,552 for the first year, and every year thereafter! (Exhibit C at Bates p. <br /> 12). That represents over One Billion Dollars in lost property value. That is not going to <br /> happen. <br /> When the city fills out its annual housing report to HCD reporting on how many units <br /> have been constructed in each price category, the Official Form requires that the unit be <br /> identified as "deed restricted" (rent controlled) or "non-deed restricted" (Exhibit F at <br /> Bates p. 56; Pleasanton's Annual Progress Report to State HCD for 2021). With <br /> California construction costs and market rent levels, and given HCD's focus on price <br /> (rather than unit size), there are virtually no new "non-deed restricted" units that meet <br /> HCD's price control standards. <br /> 3 <br />