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Draft RHNA Allocation Methodology 10/26/06 Page 2 l. Weighted Factors Factors in the allocation methodology are the mathematical variables that allocate shares of the regional housing need (RHN). The factors reflect: I) state mandated RHNA objectives; 2) RHNA statutory requirements; 3) local policy and 4) regional policy. In the methodology, each factor is given priority relative to the others. Priority is established through "weighting" in the formula. For example, if one of the factors, household growth, is determined to be more important than another factor, e.g., transit, the methodology can give household growth a higher weight than transit in the formula. The methodology may also equally weight the factors, therefore ensuring that all the factors are of equal priority. A. Household Growth, 40 Percent Each local jurisdiction should plan for housing according to regionally projected household growth within its boundaries during the RHNA planning period (2007 - 2014). Household growth should be weighted 40 percent in the allocation. Household growth is used as a factor, as opposed to existing households or total households, to ensure that additional housing is not allocated where there are existing concentrations of homes in the region, but rather where growth is anticipated to occur. In this way household growth as a factor in the methodology ensures that the allocation is consistent with both local plans for growth and with regional growth policies, as those areas that are planning for household growth would receive a higher allocation than those areas not planning for growth. Household growth in ABAG's Projections is most influenced by local land use plans and policies, including planned and protected agricultural lands, open space and parks, city-centered growth policies, urban growth boundaries, and any physical or geological constraints. Regional policies have been incorporated into Projections since 2002, are assumed to go into effect by 2010, and therefore have some effect on regional housing growth estimates in the 2007-2014 RHNA period. Regional policies assume that there will be increased housing growth in existing urbanized areas, near transit stations and along major public transportation corridors. These regional policies are consistent with state housing policies to promote infill development, environmental and agricultural protection and efficient development patterns. B. Existing Employment, 20 Percent; Employment Growth, 20 Percent Each local jurisdiction should plan for housing to accommodate existing employment (2007) and regionally projected employment growth within its boundaries during the RHNA planning period (2007 - 2014). This would ensure that the need allocation gives jurisdictions with both existing concentrations of jobs and planned job growth a share of the regional housing need. This would direct housing to existing job centers and to areas with anticipated employment growth. These jobs allocation factors may address regional jobs-housing imbalance and facilitate access by proximity, for housing would be directed to communities with jobs and planned jobs, which may reduce vehicle miles traveled due to reduced inter- and intra-regional commuting. C. Household Growth near Transit, 10 Percent; Employment Growth near Transit, 10 Percent Each local jurisdiction with an existing or planned transit station should plan for more housing near such stations. Current regional policy places incrementally more growth along major transportation corridors and at transit stations. Therefore, a housing need allocation that uses regional housing growth and employment as factors would be inclusive of "transit" as a policy issue. Using transit as a