Why It Matters
Individuals and families are directly affected by each jurisdiction’s ability to plan for the housing needs of those who will live, work, and play in every community.
State funding programs for transportation, infrastructure, and housing often require or consider a local jurisdiction’s compliance with Housing Element Law. These competitive funds can be used for fixing roads, adding bike lanes, improving transit, or providing much needed affordable housing to communities. In some cases, funding from state/federal housing programs can only be accessed if the jurisdiction has a compliant housing element. In other cases, a compliant housing element is not a requirement in order to apply for funding; however, those applying for funding will receive extra points on their application if they do have a compliant housing element (thereby increasing their chances in the competitive application process).
State funding programs that require a local jurisdiction’s housing element compliance include:
State funding programs that incentivize greater coordination with housing planning, include:
- Local Partnership Program: Projects are evaluated on how they advance housing element goals.
- Transit and Intercity Rail Capital Program: Projects must document how transit ridership growth is supported by housing policies including evidence of compliance with state-required housing plans.
- Active Transportation Program: Infrastructure projects must address their potential to support existing and planned housing, and planning projects must be consistent with local housing policies.
- Solutions for Congested Corridors Program: Projects must address how they support infill development, which may include identifying housing element policies that streamline multifamily housing development.
- HOME Investment Partnerships Program: Applications receive points for housing element compliance.
In order to create a housing plan (aka housing element) showing it could meet the local housing needs, a jurisdiction must first know how much housing it must plan for (and estimate how much will be needed at a variety of affordability levels in order to match the needs of the people who will live there). This is determined by a process called the regional housing needs assessment.
Role of HCD
HCD plays the critical role of reviewing every local government’s housing element to determine whether it complies with state law and then submits written findings back to each local government. HCD’s approval is required before a local government can adopt its housing element as part of its overall General Plan.
Jurisdictions can opt to update their housing elements every five years or every eight years. The option to use an eight-year schedule was created to better align with the schedule local governments (or COGs/MPOs) have to meet to update their Regional Transportation Plans (which are updated every four years) now mandated to align with housing plans in Regional Sustainable Communities Strategies.
Housing Element Update Cycles
To date, there have been five previous housing element update “cycles.” California is now in its sixth “housing-element update cycle.”