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ATTACHMENT 2 ASSOCIATION OF BAY AREA GOVERNMENTS o Representing City and County Governments of the San Francisco Bay Area ABAG MEMO To: From: Date: Re: ABAG Executive Board ABAG Staff October 26, 2006, Revised November 17, 2006 Draft Regional Housing Needs Allocation Methodology Recommendation Staff recommends that the ABAG Executive Board adopt Resolution 13-06 authorizing release of the Housing Methodology Committee's recommendation for a proposed Regional Housing Needs Allocation Methodology (RHNA) for the 2007-2014 period. Upon release, a not less than 60-day public comment period on the methodology will begin. The comment period will close on January 18, 2007. On that date, staff will bring to the Executive Board recommendations for the final methodology. The final methodology shall include responses to all comments received on the draft RHNA methodology and reasons for any significant changes. Background As the region's Council of Governments, ABAG is responsible for allocating the state-determined regional housing need to all jurisdictions in the Bay Area. The HMC was established in May 2006 to assist staff in developing a recommended methodology for allocating the regional need for adoption by the ABAG Executive Board. The HMC was comprised of local elected officials, city and county staff, and stakeholder representatives. Regional Housing Needs Allocation Process The Regional Housing Needs (RHN) process is a state mandate regarding planning for housing in California. The state, regional and local governments each have a role to play. Local governments have autonomy in planning for exactly how and where housing will be developed in their individual communities. The amount of housing cities and counties must plan for, however, is determined through the interplay of state, regional and local housing policy. The State of California requires that all jurisdictions in the state update the Housing Elements of their General Plans. Housing Elements serve as the local plan for how a jurisdiction will meet its share of the region's housing need. The State of California, via the Housing and Community Development Department (HCD), determines each region's need for housing, primarily based on estimated population growth. COGs then allocate that need, for all income groups, amongst jurisdictions. Jurisdictions then plan for that need in their housing elements, which are state-certified by HCD. RHNA Methodology Recommendation The regional housing needs allocation methodology is the tool used to assign each jurisdiction in the Bay Area its share of the region's total housing need. The actual tool is a mathematical equation that consists of weighted factors. There are also a set of "rules" that dictate how units will be allocated by income, within spheres of influence, voluntary transfer of units, and subregions. The HMC's recommendation encompasses these distinct components of the methodology. In their recommendation, the HMC members considered local land use plans and policies, regional growth policies and the state's housing polices, as expressed in the state mandated RHNA objectives. Additional information on how these recommendations were derived is contained in the attached report.