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Government Code Section 65588 requires: “Each local government shall review its housing element as frequently as appropriate to evaluate all of the following: (1) The appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal. (2) The effectiveness of the housing element in attainment of the community's housing goals and objectives. (3) The progress of the city, county, or city and county in implementation of the housing element.”

The review and revise requirement is an important feature of the housing element update. A thorough review facilitates a comprehensive update and ensures the element can be effectively implemented in the next planning period.

Requisite Analysis

The review and revise requires analysis in three areas as follows:

1. Effectiveness of the element – A description of the actual results or outcomes of the prior element’s goals (i.e., what happened), objectives, policies, and programs. The results should be quantified where possible (e.g., number of units rehabilitated) and may be qualitative where necessary (e.g., mitigation of governmental constraints).
2. Progress in implementation – For each program, the analysis should compare significant differences between what was projected or planned in the earlier element and what was achieved. Analyze the differences to determine where the previous housing element met, exceeded, or fell short of what was anticipated.
3. Appropriateness of goals, objectives, policies and programs – A description of what has been learned based on the analysis of progress and effectiveness of the previous element. A description of how the goals, objectives, policies, and programs in the updated element are being changed or adjusted to incorporate what has been learned from the results of the previous element. (Section 65588(a)(1))

Data Sources

1. Annual General Plan progress reports, as required by Government Code Section 65400. Many communities cross reference and use the annual progress report (GC 65400(b)(1) as a useful source of information for review of the previous housing element.
2. Department of Finance, Demographic Research Unit
3. Annual LMI Housing Fund Redevelopment
4. Consolidated Plan Reports

Sample Tables

The following are sample tables to assist in organizing critical information pertaining to housing element requirements. The information provided in the tables should be tailored to the jurisdiction and followed by appropriate analysis. These sample tables are not intended to be a substitute for addressing the analytical requirements described in the statute.

Housing Element Law Implementation Requirement (GC 65584.09, Chapter 614, Statutes of 2005 [AB 1233])

(a)“For housing elements due on or after January 1, 2006, if a city or county in the prior planning period failed to identify or make available adequate sites to accommodate the regional housing need allocated, then the city or county shall, within the first year of the planning period of the new housing element, zone or rezone adequate sites to accommodate the unaccommodated portion of the regional housing need allocation from the prior planning period.

• (b) The requirements under subdivision (a) shall be in addition to any zoning or rezoning required to accommodate the jurisdiction’s share of the regional housing need pursuant to Section 65584 for the new planning period.
• (c) This section does not diminish the requirement of a city or county to accommodate its share of the regional housing need for each income level during the planning period including the obligations to (1) implement programs, (2) timely adopt a housing element with an inventory described and a program to make sites available which can accommodate the jurisdiction’s share of the regional housing need.

If the current element was found in compliance by HCD and the answer to either of the following questions is yes, Government Code Section 65584.09 generally will not apply:

Government Code Section 65584.09 does apply, however, if any response to the next set of questions is yes:

If the answer to any of the last four questions was yes, the jurisdiction must zone or rezone adequate sites to address the unaccommodated housing need within the first year of the new planning period. To demonstrate adequate sites for the new planning period, the updated housing element must identify the unaccommodated housing need by income level. To determine the unaccommodated need, jurisdictions could take the following steps:

• Subtract the number of units approved or constructed (by income) since the beginning of the previous planning period’s RHNA baseline data.
• Subtract the number of units that could be accommodated on any appropriately zoned sites specifically identified in the element adopted for the previous planning period (not counted above).
• Subtract the number of units accommodated on sites that have been rezoned for residential development pursuant to the site identification programs in the element adopted for the prior planning period.
• Subtract the number of units accommodated on sites rezoned for residential development independent of the sites rezoned in conjunction with the element’s site identification programs as described above.

Sample Table to Calculate Unaccommodated Housing Need:

Smart City had a RHNA of 1,000 housing units. While the element demonstrated it had sufficient sites to accommodate 850 units, it contained a rezone program to accommodate the 150 unit remaining need for lower income households. By the time of the next housing element update, the City had not completed the rezoning as described in the housing element program action. Over the previous 5 years, 1,025 units were constructed (including 175 units affordable to lower-income households). Although the rezoning program was not completed using sites described in the element, the City was able to rezone a smaller 2 acre parcel to high density residential, which could accommodate 40 lower-income units.

As a result, Smart City has an unaccommodated need of 110 units for lower-income households and must identify or rezone sufficient sites to address this need within the first year of the new planning period.

• Once a determination has been made that an unaccommodated housing need exists, cities and counties must identify sites that are appropriately zoned, or will be appropriately zoned within the first year of the new planning period, to meet the unaccommodated housing need.
• The sites “made available” as part of the rezone program must comply with the site suitability requirements set forth in Government Code Section 65583.2.
• Within the first year of the new planning period, cities and counties must adopt and complete program commitments to zone and/or rezone sites to address the unaccommodated housing need for the previous planning period for which sites were not identified. This requirement is in addition to the requirement to identify other specific sites to accommodate the RHNA for the new planning period. The jurisdiction may not count capacity on the same sites for both planning periods.

Helpful Hints

• Utilize past Annual Housing Element Report required pursuant to GC 65400 for information on program implementation.
• Contact stakeholders such as non-profit developers, advocates, community members, and service providers to assist in evaluating program effectiveness.