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San Francisco Bay Area Draft Regional Housing Needs Allocation, 4'h Revision 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 1tHNA 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 1tHNA 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 1tHNA process. As required by statute, ABAG has assigned a share of the regional need to the San Mateo subregion "in a proportion consistent with the distribution of households" in Projections 2007. The subregion is responsible for completing its own 1tHNA 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 members of the subregion. Although the subregion is working independently of the regional RHNA process, ABAG is ultimately responsible for ensuring that all of the region's housing need is allocated. Thus, if the subregion fails at any point in its attempt to develop a final RHNA allocation for the subregion, ABAG must complete the allocation process for the members of the subregion. In the event that the San Mateo subregion fails to complete the RHNA process, the methodology include the following guidelines for handling the allocation of units to jurisdictions within the subregion: 1. If the members of the subregion adopts a "default allocation," ABAG will allocate using the default allocation. A "default allocation" is the allocation which a member of the San Mateo 1tHNA subregion receives if it "opts out" of the subregion. _~ugust 2007, Page 14