Housing Need Determination.pdf

The California Department of Housing and Community Development (HCD) has determined the Regional Housing Need (RHNA) for the Southern California Association of Governments (SCAG) region. The RHNA is 1,344,740 total units, distributed among four income categories:

Very-Low: 350,998 units (26.1% of total)
Low: 206,338 units (15.3% of total)
Moderate: 225,152 units (16.7% of total)
Above-Moderate: 562,252 units (41.8% of total)

The RHNA allocation methodology must further the following objectives:
1. Increase housing supply and mix of housing types, tenure, and affordability.
2. Promote infill development, socioeconomic equity, and environmental protection.
3. Improve the balance between jobs and housing, including affordable housing for low-wage workers.
4. Allocate a lower proportion of housing need to an income category when a jurisdiction already has a high share of households in that category.
5. Affirmatively further fair housing.

The methodology used to determine the RHNA includes:
1. Population projections from the Department of Finance (DOF).
2. Household formation rates based on Census trends.
3. Vacancy adjustment to provide healthy market vacancies.
4. Overcrowding adjustment to account for overcrowded housing units.
5. Replacement adjustment to account for units that need to be replaced.
6. Cost burden adjustment to account for households that are cost-burdened.

The RHNA determination is for the period from June 30, 2021, to October 15, 2029. SCAG is responsible for adopting a RHNA allocation methodology that meets the statutory objectives and includes the required factors. HCD will review and provide feedback on SCAG's draft allocation methodology.