The RHNA process refers to the first two steps (Determination and Allocation) of a multi-step process that California governments utilize to plan for housing needs in each region of the state.
Since 1969, California has required that all local governments (cities and counties) adequately plan to meet the housing needs of everyone in the community. This process starts with the state determining how much housing at a variety of affordability levels is needed for each region in the state, and then regional governments develop a methodology to allocate that housing need to local governments. California’s local governments then adopt housing plans (called housing elements) as part of their “general plan” (also required by the state) to show how the jurisdiction will meet local housing needs.
Determination: Calculating the Housing Need in Each Region
HCD is responsible for determining the regional housing need for each region’s planning body known as a “council of governments” (COG), with input from the Department of Finance (DOF). HCD and the COG consult and compare data related to demographic trends and housing conditions in the region. After this consultation, HCD issues the final regional housing need number for the region, which is broken out by income categories. The final housing need determination must be issued at least two years before the next Housing Element due date.
The determination is required to account for both the existing and projected housing need in each region. Accordingly, in addition to considering DOF data on future population and household growth, HCD also assesses whether additional housing is needed to serve the existing population. For instance, HCD considers data on overcrowding, cost burden, vacancy rates, and jobs-housing imbalances when determining the regional housing need. HCD is also required to consider whether units have recently been lost due to a state of emergency declared by the Governor.
Allocation: Distributing the Need to Cities and Counties
Once HCD has issued the region’s housing need determination figure (the amount of housing that must be planned for), the COG is responsible for allocating the housing need amongst all of the jurisdictions (cities/counties) within that region. The COG must develop a methodology for allocating the regional housing need and submit the methodology to HCD for review. After the methodology is adopted by the COG, they must develop a Regional Housing Need Allocation Plan (RHNA Plan). The RHNA Plan must be adopted by the COG at least one year before the next Housing Element due date. Learn more: Building Blocks: A Comprehensive Housing-Element Guide.
Statute requires that the COG develop a RHNA allocation methodology that furthers five statutory objectives (Gov. Code Section 65584(d)). Overall, the statutory objectives encourage the development of a RHNA allocation plan that promotes more economically and racially integrated communities by allocating housing to high-resource, job-rich areas, while also meeting the state’s greenhouse gas reduction goals by encouraging infill development and the protection of environmental resources. Statute also lays out 13 factors that COGs are allowed to consider when creating the allocation methodology, as well as three criteria that cannot be considered. HCD is charged with developing the RHNA Plan for 20 predominantly rural counties across the state that do not have a COG.
California’s Housing Future 2040: The Next Regional Housing Needs Allocation
AB 101 (2019) directs HCD, in collaboration with OPR and after engaging in stakeholder participation, to develop recommendations related to the RHNA process and methodology. Upon completion of this California's Housing Future 2040 stakeholder engagement initiative, HCD will compile its findings and recommendations, and will submit a report to the Legislature by December 31, 2023.
HCD plans to conduct this stakeholder engagement initiative in the Spring of 2023, which will consist of several opportunities for stakeholder input. HCD is undertaking the CA’s Housing Future 2040 initiative centering the following guiding principles:
- Ensure RHNA is a fair, transparent, objective, and streamlined process for identifying housing need.
- Fair in terms of advancing equity, racial justice and inclusion, and environmental justice in a manner that ensures all jurisdictions plan for their fair share of the region’s housing need.
- Transparent in terms of open and accessible public participation, proactive engagement, and making materials available online.
- Objective in terms of maintaining a data-driven process.
- Streamlined in terms of ensuring a logical flow of steps with the most efficient process available to accomplish meaningful outcomes.
- Strategically plan for the needs of households of all income levels while promoting infill development, the protection of natural resources, and efficient development patterns.
- Account for future climate risk with the goal of ensuring communities and vulnerable populations are not unduly exposed to climate risks, including but not limited to drought, flooding, sea level rise, and wildfire.
- Encourage increased development to substantially address California’s housing shortage and affordability issues.
- Improve compliance and outcomes through incentives and enforcement.
- Enhance and protect RHNA’s role in Affirmatively Furthering Fair Housing so that all cities plan for their fair share of growth and future planning does not further entrench segregated living patterns.
Below you will find information on upcoming stakeholder engagement events and materials created during this CA’s Housing Future 2040: The Next RHNA initiative. This webpage will be updated as more information becomes available.