1 LAFCo and the RHNA Presented by Adam Lindgren CALAFCO September 6, 2006

2 Overview Cortese-Knox-Hertzberg and housing Cortese-Knox-Hertzberg and housing Housing Element and the Regional Housing Needs Assessment Housing Element and the Regional Housing Needs Assessment Introduction to the tensions btwn CKH and RHNA and opportunities to coordinate the CKH and RHNA mandates Introduction to the tensions btwn CKH and RHNA and opportunities to coordinate the CKH and RHNA mandates

3 Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, Gov't C et seq.

4 Purpose of CKH Gov’t Code Sections 56001, 56300, 56301, Gov’t Code Sections 56001, 56300, 56301, Efficient delivery of services Efficient delivery of services Promote orderly growth and development Promote orderly growth and development Discourage sprawl – tension Govt C Discourage sprawl – tension Govt C Consider local conditions and circumstances Consider local conditions and circumstances Preserve open space & agriculture Preserve open space & agriculture Provide housing for all incomes Provide housing for all incomes

5 Features of LAFCo Mission Balance competing interests and policies Balance competing interests and policies Bring order to regional land use patterns Bring order to regional land use patterns LAFCo has considerable discretion in carrying out its mandate LAFCo has considerable discretion in carrying out its mandate CKH states a preference to accommodate additional growth within or through the expansion of the boundaries of those local agencies which can best accommodate and provide necessary governmental services and housing for persons and families of all incomes in the most efficient manner feasible CKH states a preference to accommodate additional growth within or through the expansion of the boundaries of those local agencies which can best accommodate and provide necessary governmental services and housing for persons and families of all incomes in the most efficient manner feasible

6 RHNA Law Housing Element Law, Gov't C et seq.

7 The Housing Element & RHNA Narrower focus – making housing available for all Californians Narrower focus – making housing available for all Californians State policy – implementation is intergovernmental, but it flows from the top down State policy – implementation is intergovernmental, but it flows from the top down Requires every local gov’t to plan for a certain allocated amount of the State’s housing goal – the RHNA Requires every local gov’t to plan for a certain allocated amount of the State’s housing goal – the RHNA

8 The Housing Element & RHNA How is the RHNA mandate imposed? How is the RHNA mandate imposed? Housing Element is a mandatory part of City and County General Plans Housing Element is a mandatory part of City and County General Plans Housing Element update req’d every 5 years; must accommodate the allocated RHNA Housing Element update req’d every 5 years; must accommodate the allocated RHNA Each Housing Element must plan for its assigned RHNA numbers Each Housing Element must plan for its assigned RHNA numbers Gov’t C recognizes that future housing production may not meet RHNA numbers Gov’t C recognizes that future housing production may not meet RHNA numbers Housing Element to be approved by HCD Housing Element to be approved by HCD

9 The RHNA Process Every local Government gets RHNA numbers Every local Government gets RHNA numbers Housing Element must plan to accommodate the allocated RHNA, otherwise not certified Housing Element must plan to accommodate the allocated RHNA, otherwise not certified Failure to have a certified Housing Element leaves a local gov’t more vulnerable to suits Failure to have a certified Housing Element leaves a local gov’t more vulnerable to suits 25% of local gov’ts do not have an approved Housing Element 25% of local gov’ts do not have an approved Housing Element

10 The RHNA Process State Housing & Community Dev. Dept. determines the existing and projected need for housing for each region, in consultation with each Council of Governments (Gov’t C ) State Housing & Community Dev. Dept. determines the existing and projected need for housing for each region, in consultation with each Council of Governments (Gov’t C ) COGs develop a methodology and distribute the regional housing need, with input from local governments and the public (Gov’t C ) COGs develop a methodology and distribute the regional housing need, with input from local governments and the public (Gov’t C )

11 CKH factors for a change of organization or reorganization (Gov’t C 56668) compared to RHNA factors to allocate housing needs (Gov’t C ) Affect on achieving RHNA Land area and land use Likelihood of growth Orderly development Adequacy of governmental services Effect on ag lands Consistency with general and specific plans Effect on local governmental structure in the county Demand for housing Available land for development Jobs and housing relationship Capacity of sewer and water service County policies to preserve ag land Agreements to direct growth toward cities Not growth control

12 The RHNA Changes Since 2004 (AB 2158), regional housing need calculated by HCD in consultation with COGs Since 2004 (AB 2158), regional housing need calculated by HCD in consultation with COGs During the Housing Element update, local gov’ts may transfer up to 500 RHNA units if they meet certain qualifications During the Housing Element update, local gov’ts may transfer up to 500 RHNA units if they meet certain qualifications Solano County is assigned 2000 units, at best can transfer ¼ of its allocation to cities Solano County is assigned 2000 units, at best can transfer ¼ of its allocation to cities

13 RHNA Issues Local Gov’ts have raised issues with RHNA in prior Housing Element update cycles: Local Gov’ts have raised issues with RHNA in prior Housing Element update cycles: Unrealistic regional housing need and/or allocation Unrealistic regional housing need and/or allocation Sprawl producing Sprawl producing Failure to consider ag & open space Failure to consider ag & open space Failure to consider citizen growth initiatives Failure to consider citizen growth initiatives Difficulty with intra-county RHNA transfers Difficulty with intra-county RHNA transfers

14 Concerns with Tension Between RHNA and LAFCo Mandates Local gov’ts attempting to meet RHNA numbers by annexations and SOI expansions Local gov’ts attempting to meet RHNA numbers by annexations and SOI expansions LAFCo must consider Ag & Open Space, whether desired changes result in orderly growth LAFCo must consider Ag & Open Space, whether desired changes result in orderly growth In some instances, LAFCo may have difficulty reconciling the factors so as to approve application In some instances, LAFCo may have difficulty reconciling the factors so as to approve application Result local gov’ts not able to achieve RHNA numbers or led to annexations and SOI expansions in conflict with CKH purposes and requirements Result local gov’ts not able to achieve RHNA numbers or led to annexations and SOI expansions in conflict with CKH purposes and requirements Tension tends to get worse as open space diminishes and housing costs increase Tension tends to get worse as open space diminishes and housing costs increase

15 Potential Bright Spots: Opportunities to Coordinate CKH and RHNA Mandates Several changes were made to Housing Element Law in 2004 that allow COG’s a larger role in RHNA forecasting, and RHNA’s being allocated to facilitate smart growth, blueprint Several changes were made to Housing Element Law in 2004 that allow COG’s a larger role in RHNA forecasting, and RHNA’s being allocated to facilitate smart growth, blueprint Many local officials are optimistic about the effect of these changes Many local officials are optimistic about the effect of these changes

16 Potential Bright Spots: Opportunities to Coordinate CKH and RHNA Mandates 2006 AB 2158, enrolled 2006 AB 2158, enrolled Adds adopted SOI’s to list of factors COGs consider in allocating projected housing needs Adds adopted SOI’s to list of factors COGs consider in allocating projected housing needs AB 3042, back to Committee AB 3042, back to Committee To allow intra-county transfers within a COG To allow intra-county transfers within a COG Solano County Solano County Directing growth into cities; agreements to give County revenue with adding sales tax generators Directing growth into cities; agreements to give County revenue with adding sales tax generators Fresno Fresno Coordination to annex lands with logical boundaries Coordination to annex lands with logical boundaries