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San Francisco Bay Area Draft Regional Housing Needs Allocation, 4th Revision I. Transfer requests must have at least two willing partners and the total number of units within the group requesting the transfer cannot be reduced. 2. Transfers must include units at all income levels in the same proportion as initially allocated. 3. All members of the transfer group must retain some allocation of very low and low income units. 4. The proposed transfer must include a specifically defined package of incentives and/or resources that will enable the jurisdiction(s) receiving an increased allocation to provide more housing choices than would otherwise occur absent the transfer and the accompanying incentives or resources. 5. If the transfer results in a greater concentration of very low or low income units in the receiving jurisdiction, the effect must be offset by findings by the members of the transfer group that address the RHNA objectives. For example, the findings might include (a) there is such an urgent need for more housing choices in those income categories that the opportunity to effect more housing choices in these categories offsets the impacts of over-concentration, or (b) the package of incentives and/or resources are for mixed income projects, or (c) the package of incentives and/or resources are for "transitional" housing for very low or low income households being relocated for rehabilitation of existing very low or low income units, or (d) the package of incentives and/or resources are for additional units that avoid displacement or "gentrification" of existing communities. 6. For the transfer of very low and low income units, there are restrictions that ensure the long-term affordability of the transferred units. 7. Transfers must comply with all other statutory constraints and be consistent with the RHNA objectives. In addition to guaranteeing that transfers meet the RHNA statutory objectives, these criteria promote regional policies to increase housing supply and provide more housing choices. The criteria state that the transfer must include the resources necessary to improve housing choices and, specifically, in a way that would not otherwise be possible without the transfer. The long-term affordability restrictions on very low and low income transferred units ensure that these units will contribute to a fundamental increase in affordable housing choices. The criteria also emphasize development of affordable units and are therefore consistent with the state RHNA objective that every jurisdiction does its "fair share" to provide affordable housing. The requirement that jurisdictions must retain some very low and low income units and the stipulation that transfers must maintain the same income distribution as is initially allocated ensure that a jurisdiction cannot abdicate its responsibility to provide affordable units. The criteria also ensure that the benefits created by the transfer outweigh any possible negative effects of an over-concentration of lower income households. 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. The subregion has designated the City/County Association of Governments (C/CAG) as the entity responsible for coordinating and implementing the subregional RHNA process. November 2006, Page 14