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San Francisco Bay Area <br />Draft Regional Housing Needs Allocation, 4'h Revision <br />A jurisdiction's share of the Regional Housing need is assigned according to its percentage <br />share of regional household growth, employment growth, existing employment, and <br />household and employment growth near transit: <br />(Household Growth x .45) + (Employment Growth x .225) + (Existing Employment x <br />.225) + (Household Growth near Transit x .OS) + (Employment Growth near Transit x <br />.OS) <br />Growth is during the RHNA planning period (2007 - 2014). The transit factors refer to <br />growth that occurs within % mile of existing fixed transit stations in the jurisdiction. <br />2. Regional Allocations of Housing Units based on Affordability <br />There are two primary goals of the RHNA process: 1) increase the supply of housing and <br />2) ensure that local governments consider the housing needs of persons at all income levels. <br />The allocation method requires that each local jurisdiction plan for income-based housing <br />relative to the regional average. The income allocation scenarios give each jurisdiction 175 <br />percent of the difference between their 2000 household income distribution and the 2000 <br />regional household income distribution. The regional average distribution of household <br />incomes is as follows: <br />• Very Low, 23 Percent <br />Households with income up to 50 percent of the county's area median income (AMl7 <br />• Low, 16 Percent <br />Households with income between 50 and 80 percent of the county's AMI <br />• Moderate, l9 Percent <br />Households with income between 80 and 120 percent of the county's AMI <br />• Above-Moderate, 42 Percent <br />Households with income above 120 percent of the county's AMI <br />The first step in the income allocation process is to determine the difference between the <br />regional proportion of households in an income category and the jurisdiction's proportion for <br />that category. This difference is then multiplied by 175 percent to determine an "adjustment <br />factor." Finally, this adjustment factor is added to the jurisdiction's initial proportion of <br />households in the income category, which results in the total share of the jurisdiction's <br />housing unit allocation that will be in that income category. <br />Using the 175 percent factor and the City of Oakland's very low income category as an <br />example, 36 percent of households in Oakland were in this category, while the regional total <br />was 23 percent. <br />City Jurisdiction Regional Adjustment Total <br />Proportion Proportion Difference Multiplier Factor Share <br />Oakland 36 23 -13 175% -23 13 <br />The diference between 23 and 36 is -13. This is multiplied by 175 percent for a result of - <br />22.75 (rounded to 23). This is then added to the city's original distribution of 36 percent, for a <br />_lugust 2UU,, P:-ge 11 <br />