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CM2019-046 RHNA Proposed Allocation Methodology CM2019-046 CI* 6t/(a'zagui i`i City of '11111\ MEMORANDUM Chino Hills DATE: AUGUST 8, 2019 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: BENJAMIN MONTGOMERY, CITY MANAGER RE: REGIONAL HOUSING NEEDS ASSESSMENT — PROPOSED ALLOCATION METHODOLOGY Southern California Association of Governments (SCAG) is developing the 6th cycle Regional Housing Needs Assessment (RHNA) allocation plan, which covers the eight-year planning period of October 2021 through October 2029. There are several major milestones in the RHNA process, including: (1) development of the RHNA methodology; (2) distribution of the draft RHNA allocation; (3) appeals process; and (4) adoption of the final RHNA allocation. The first milestone has now been reached. SCAG distributed, for public review, three options for developing a RHNA methodology. Each of the options provides a different method for calculating regional housing needs and distributing the housing units to each city. Two of the options assign more density to cities that have high quality transit areas, defined as areas within one-half mile of a fixed guideway transit stop or a bus transit corridor. All three options apply a Social Equity adjustment, which means that cities that have a greater proportion of low density houses will be assigned a greater proportion of high density housing, and vice versa. The amount of units allocated to Chino Hills and other cities will depend on the final regional share of new housing units that the State Housing and Community Development Department (HCD) allocates to the SCAG region. The current estimate is 750,000 new units for the region over the eight year planning period. However, HCD could increase this number substantially. Preliminarily, based on the current regional estimate of 750,000 new units, Chino Hills' allocation would be between 2,000 and 3,000 new units with up to 80 percent of those units being required to be high density. Of the three options, Option 1 is expected to allocate the least amount of units to Chino Hills, and Option 3 the most units. The public is being asked to review the three options and provide comments to SCAG by September 3, 2019. During the next few weeks, SCAG will be holding public hearings at August 8, 2019 Page 2 CM2O19-046 locations in Los Angeles, San Bernardino and Irvine. Information about the three options and public hearings is available at: https://www.scaa.ca.aov/programs/Daces/housina.aspx. We encourage the community to review the options and provide questions or comments to Community Development Director Joann Lombardo (iombardo@chinohills.ora) or to SCAG at housing@scaa.ca.aov.