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In addition to the above, the Draft Methodology also includes an allocation of housing units based on household incomes at the same ratio as the regional average income distribution. While ABAG presented four allocation options, the HMC recommended the above approach because each jurisdiction would receive the same proportion of housing units in each income category (very-low, low, moderate, and above moderate). The regional average approved an allocation of housing units by income levels based on the regional income distribution included in Census 2000 or data from the U.S. Department of Housing and Urban Development that specifies household income by household size. A summary of this distribution level is as follows: DRAFT HOUSING METHODOLOGY BASED ON HOUSEHOLD INCOMES Income Level Area Median Income* (AMI) Percental!:e of Affordable Very Low Income Up to 50% AMI 23% Low Income 50% - 80% AMI 16% Moderate Income 80% - 120% AMI 19% Above Moderate Income Above 120% AMI 42% Total 100% 'In 2006, the Area Median Income for a famIly of four living in Alameda County is $86,300. During ABAG's Executive Board meeting to review the HMC's recommendations, several comments were received on the recommended methodology pertaining to the income allocation component of the methodology. Some local jurisdictions believe the proposed income allocation methodology does not do enough to alleviate existing concentrations of poverty. There is concern that, because the draft recommendation assigns an "equal share" to each jurisdiction and does not take a jurisdiction's existing income distribution into account, it unfairly burdens jurisdictions with existing high concentrations of poverty. As a result, the draft method is perceived to perpetuate regional social and economic inequities. As a result of this concern, the HMC met on January 4 and developed a new recommendation referred to as "Percent Adjustment Toward Regional Average." This methodology, which is detailed on Attachment 3 page 2, adds a multiplier to the regional income average in an attempt to change the income distribution in each jurisdiction to more closely match the regional distribution. As a result, those jurisdictions that have a relatively low proportion of a specific income category would receive a higher allocation of housing units in that category. The impact of this new recommendation is as follows: Page 4