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Draft RHNA Allocation Methodology 10/26/06 Page 3 direct factor in the methodology would give transit a greater degree of policy weight. Those jurisdictions with transit, existing and planned, would receive a relatively higher proportion of the housing needs allocation than those jurisdictions without existing or planned transit. The inclusion of "planned" transit in the methodology could potentially give a relatively higher allocation to an area where the planned transit does not materialize. However, if housing is built at appropriate densities before transit is put in place, the transit investment may become more financially feasible, for projected ridership would be higher. 2. Regional Income Allocations Each local jurisdiction should plan for income-based housing in the same ratio as the regional average income distribution. A methodology that assigns each jurisdiction's regional housing need based on the regional average income distribution would be an "equal share" approach because it applies the same income distribution to each jurisdiction. Although considered an equitable approach, it does not consider existing concentrations of poverty. 3. Spheres of Influence Each local jurisdiction with the land-use permitting authority in a "Sphere of Influence" should plan for the housing needed to accommodate housing growth, existing employment and employment growth in such "Sphere of Influence" areas. Except for Marin County, where a 75 city and 25 county distribution is recommended, a 100 percent allocation of the housing need to the jurisdiction that has land use control over the area would ensure that the jurisdiction that plans for accommodating the housing units also receives credit for any built units during the RHNA period. 4. Transfer of Units After the initial allocation of the regional housing need, a local jurisdiction may request approval to transfer units with willing partner(s), in a way that maintains total need allocation amongst all transfer parties, maintains income distribution of both retained and transferred units, and includes package of incentives to facilitate production of housing units. This transfer rule would allow the transfer of allocated housing need between willing jurisdictions in conjunction with financial resources, while maintaining the integrity of the state's RHNA objectives by preventing any jurisdiction from abdicating its responsibility to plan for housing across all income categories. Transfers done in this manner may facilitate increased housing production in the region. 5. Subregions The County of San Mateo, in partnership with all twenty cities in the county, has formed a subregion, as allowed by state statute. ABAG will assign a share of the regional need to the subregion "in a proportion consistent with the distribution of households" in Projections 2007. The subregion is then responsible for completing its own RHNA process that is parallel to, but separate from, the regional RHNA process. The subregion will create its own methodology, issue draft allocations, handle the revision and appeal processes, and then issue final allocations to the members of the subregion. The rules on how to handle the subregion allocation in the event the subregion fails are contained in the attached RHNA technical document.