Housing

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What is RHNA?

The Regional Housing Needs Assessment (RHNA) is mandated by State Housing Law as part of the periodic process of updating local housing elements of the General Plan. RHNA quantifies the need for housing within each jurisdiction during specified planning periods.

In March 2021, SCAG adopted its 6th cycle RHNA allocation plan, which covers the planning period October 2021 through October 2029. For the 6th cycle, SCAG received a need of 1,341,827 housing units, which was distributed to all 197 SCAG jurisdictions.

Communities use RHNA in land use planning, prioritizing local resource allocation, and in deciding how to address identified existing and future housing needs resulting from population, employment and household growth. RHNA does not necessarily encourage or promote growth, but rather allows communities to anticipate growth, so that collectively the region and subregion can grow in ways that enhance quality of life, improve access to jobs, promotes transportation mobility, and addresses social equity and fair share housing needs.

RHNA Reform

The 6th Cycle RHNA has led for requests for SCAG to pursue reform of the RHNA process. Several issues had been raised by stakeholders related to the regional determination methodology, the use of land planning factors in the SCAG RHNA methodology, and basis for RHNA appeals. As part of Assembly Bill 101, HCD is tasked with preparing a report on the RHNA reform and making recommendations to the State Legislature by December 31, 2023. To inform HCD’s recommendations for improving the RHNA process and methodology, HCD has been conducting a statewide engagement process. For information on HCD’s efforts, please visit HCD’s Regional Housing Needs Allocation (RHNA) page.  

In July and August of 2022, SCAG staff conducted a stakeholder engagement process to gather input and feedback on RHNA reform. Staff reviewed the input and comments submitted during this process (available here) and have prepared draft recommendations. These draft recommendations will be reviewed and approved by SCAG’s Community, Economic and Human Development Committee and Regional Council in late summer of 2023. Once the recommendations are approved, they will be used to inform a comment letter that SCAG will submit to the California Department of Housing and Community Development (HCD) in mid-September of 2023. 

Click here to review SCAG staff draft recommendations from the August 16, 2023 CEHD agenda packet. 

RHNA Reform Outreach Presentation

RHNA Audit

In October 2021, the California State Joint Legislative Audit Committee approved an emergency audit to examine HCD’s regional determination process. The request for an audit was based on an assertion that the public had limited information on the formula that HCD uses to calculate the RHNA regional determination numbers, and cited confusion and mistrust among regional planning bodies and jurisdictions, and the need for an independent and objective review of the process.   

Summary of Findings  

• HCD made several errors regarding data calculations and does not have sufficient management review process​ 
• HCD could not demonstrate consistency and work group recommendations regarding several factors​, including jobs housing balance​ and housing destroyed during state of emergency, and Inconsistent application of comparable regions, as required by statute. 

These errors and inaccuracies led HCD to understate regional determination for these 3 regions and possibly others​. The audit outlined a series of recommendations for HCD and the California Department of Finance to improve the regional determination process, including the implementation of these recommendations in the coming year.  

RHNA Audit Report

6th Cycle Final RHNA Allocation, Methodology, and Regional Housing Needs Determinations

6th Cycle Final RHNA Allocation Plan - Adopted by Regional Council on 3/4/21 and amended on 7/1/21.
Final RHNA Methodology (Updated 3/5/20)
Final RHNA Methodology Data Appendix (Updated 3/5/20)
HCD Final Regional Housing Need Determination

Resources & Links

California Department of Housing and Community Development

HCD is responsible for reviewing local housing element updates and providing comments in accordance with State housing law: California Department of Housing and Community Development.

U.S. Department of Housing and Urban Development

HUD’s​ mission is to create strong, sustainable, inclusive communities and quality affordable homes for all: U.S. Department of Housing and Urban Development.

Fair Housing Policy & Data

The FHEO administers and enforces federal laws and establishes policies that make sure all Americans have equal access to the housing of their choice: U.S. Office of Fair Housing and Equal Opportunity.

REGIONAL EARLY ACTION PLANNING

SCAG was awarded $47 million in Regional Early Action Planning (REAP) funding from Assembly Bill (AB) 101 to provide housing planning and process improvement services to cities and counties. 

• Public Information and Input Session on RHNA reform
• Breakout Room Discussion Slides
• RHNA Reform Powerpoint
• RHNA Reform Technical Working Group PowerPoint

SCAG was awarded $47 million in Regional Early Action Planning (REAP) funding from Assembly Bill (AB) 101 to provide housing planning and process improvement services to cities and counties. 

Subregional Partnership Program

SCAG set aside approximately $23 million, or 50 percent, of its REAP funding, for the Subregional Partnership Program, which is funding a call for projects from subregional partners. Subregional Projects are designed to augment and complement funds that were awarded to jurisdictions by the California Department of Housing and Community Development (HCD) pursuant to SB (Senate Bill) 2 Planning Grants and the Local Early Action Program (LEAP) and increase housing supply to meet the 6th Cycle RHNA.

This subregional partnership approach creates a means for local efforts to align with SCAG’s regional plans and implement the broader goals of the Connect SoCal Plan.

View the Subregional Partnership Program Fact Sheet

Contact

Ma’Ayn Johnson
johnson@scag.ca.gov
(213) 236-1975

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The Regional Early Action Planning Grants (REAP) 2.0 program is a flexible program that seeks to accelerate progress toward state housing goals and climate commitments through a strengthened partnership between the state, its regions, and local entities. REAP 2.0 seeks to accelerate infill housing development, reduce vehicle miles traveled (VMT), increase housing supply at all affordability levels, affirmatively further fair housing, and implement adopted regional and local plans to achieve these goals.

The program was established as part of the 2021 California Comeback Plan under Assembly Bill 140 and builds on the success of  REAP 2019 but expands the program focus by integrating housing and climate goals and allowing for broader planning and implementation investments, including infrastructure investments that support infill development that facilitates housing supply, choice, and affordability. 

Through the REAP 2.0 program, approximately $560 million will be made available statewide to the following objectives in ways that lead to transformative policy outcomes and accelerate the implementation of regional and local plans that achieve the state’s priority planning goals.

The REAP 2.0 program objectives are as follows:

• Accelerate infill development that facilitates housing supply, choice, and affordability.
• Affirmatively further fair housing.
• Reduce VMT.

Read the REAP 2.0 guidance for mapping project areas to meet the infill definition.

The Southern California region is set to receive approximately $231.5 million in grant funds through REAP 2.0, which SCAG will administer with suballocations made available to eligible entities through three programmatic funding areas.  

SCAG’s framework document includes a set of core objectives that align with the REAP 2021 priorities, the Connect SoCal Implementation Strategy and the SCAG Executive/Administration Committee Strategic Work Plan. SCAG’s Regional Council approved the Framework in July. There have been six Calls for Applications for funding opportunities approved by SCAG’s Regional Council.

Governor’s Budget Update 

The California State Legislature and Governor Gavin Newsom have approved the Budget Act of 2024, which restores $560 million for the Regional Early Action Planning Grants (REAP 2.0) program, with $480 million specifically for metropolitan planning organizations. SCAG has received a final award allocation from the California Department of Housing and Community Development of $231.5 million, a total reduction of $14.5 million from SCAG’s original allocation. Despite this reduction, SCAG is pleased to share that we anticipate fully funding all competitive and formula-based grant awards as approved by the Regional Council.  

SCAG thanks the many partners in a collective advocacy effort to reinstate these funds after proposed cuts, and the state legislature for recognizing the importance of supporting regional efforts to address the housing affordability crisis. SCAG will continue to advocate for a deadline extension.

The Sustainable Communities Program (SCP) – Housing and Sustainable Development (HSD) 

The Sustainable Communities Program (SCP) – Housing and Sustainable Development (HSD) will provide resources and direct technical assistance to approximately 25 jurisdictions to complete local planning efforts that both accelerate housing production as well as enable implementation of the Sustainable Communities Strategy of Connect SoCal. For this cycle, the HSD program is funded by Regional Early Action Planning (REAP) grant funds.

Eligible categories for this program include implementing ADU programs, Housing Sustainability Districts, Workforce Housing Opportunity Zones, and Housing Supportive Tax Increment Financing Districts, and Streamlining housing permitting, parking reduction strategies, housing-related specific plans and other pro-housing policies. 

More details about each project type, program area goals, and the SCP overall can be found in the Sustainable Communities Program Housing and Sustainable Development Guidelines.

The SCP – HSD Call for Applications was released in November 2020 and applications were due January 29, 2021, with awards and procurement estimated April 2021, projects underway fall 2021, and implementation occurring through June 2023. 

Read more about the Sustainable Communities Program. 

Housing Production Study 

In order to assist cities in the SCAG region in meeting state transportation, Regional Housing Needs Allocation  (RHNA), housing, and climate goals, as well as implementing Senate Bill 375 (SB 375) through Connect SoCal, this study will identify potential strategies and tools to expedite the production of housing by investigating opportunities and barriers.

SCAG initiated the Regional Housing Production study to support regional priorities to support infill development, housing production goals, and aligned regional policies (e.g., Priority Growth Areas, High Quality Transit Areas, Livable Corridors, etc.). As part of the overall study, SCAG is organizing virtual roundtable discussions of a wide range of stakeholders to share best practices, provide input on upcoming funding opportunities, and help inform the region’s legislative priorities for a just recovery. The study will look at innovative housing production strategies to produce units of all types for households of all ages, sizes, and income levels. The project will include preparation of a housing strategy “white paper,” and an opportunities and barriers checklist. The final study is scheduled to be completed in Summer 2021.  

Transit Oriented Development Work Program 

LA Metro Partnership: SCAG and Metro will enter into a Transit Oriented Development/Transit Oriented Communities (TOD/TOC) partnership via a MOU to fund a variety of programs and studies that promote housing production near transit stations. 

SCRRA (Metrolink): SCAG and SCRRA will enter into a partnership through a Memorandum of Understanding (MOU) to identify and encourage transit-oriented housing production opportunities throughout Metrolink’s network and around its stations. Particular emphasis will be made to support and add value to the Metrolink Southern California Optimized Rail Expansion (SCORE) capital improvement and service enhancement program. Local cities and CTCs will also be included as needed to maximize coordination on issues such as alignment of land development policies and regulations, land ownership and site control opportunities of transit station areas and supporting facilities. 

Priority Growth Area (PGA) Analysis and Data Tools   

Partnerships

SCAG will pursue partnerships to further next steps on housing supportive land use analysis and strategy development in PGAs. All programs and studies will include deliverables that provide inventories/counts of potential for housing production at sites that are under study.  

Planning and Policy Research

SCAG will partner with academic institutions as well as other stakeholder groups and industry associations to identify best practices to either unlock new housing development potential, remove barriers to housing development, reduce the cost of development and decrease development timelines. These efforts will focus on various community typologies and housing types, consistent with the SCS and will also build on SCAG’s CEQA streamlining efforts. 

Changes in state law in recent years have increased the potential for Accessory Dwelling Units (ADUs) to support increased housing supply.  New laws have addressed barriers to their implementation at scale, for example: setting development criteria for ADUs, streamlined processing, and limiting impact fees. Implementation of state law requires updating local ordinances, estimating ADU capacity when used to address regional housing need allocations (RHNA) in housing element updates, and a housing element program to incentivize and promote ADUs that can be offered at affordable rents. 

SCAG is funding a variety of ADU support activities as described below, including several with REAP funds for subregions, local governments and housing stakeholder partnerships. It is anticipated that adoption of common practices and tools, particularly within subregions, will accelerate ADU development, have potential to contribute significantly to addressing RHNAs, generate new housing at more affordable levels, foster streamlined permit processing, and offer homeowners a source of income. 

REAP Subregional Partnership Program ADU Projects

SCAG Regional Accessory Dwelling Unit Affordability Analysis 

As cities prepare site inventory analyses for the 6th Housing Element Planning Cycle, the last step in the process allows cities to determine whether the housing element demonstrates sufficient land suitable and available for residential development to meet the jurisdiction’s Regional Housing Needs Allocation (RHNA) for each designated income level or if further program actions are required to accommodate a shortfall. Government Code section 65583.1 details how jurisdictions may consider alternative means of meeting RHNA beyond vacancy and underutilized sites. The potential for accessory dwelling units (ADUs) or junior accessory dwelling units (JADUs) is one of these available alternative means. A jurisdiction must include an analysis of the anticipated affordability of ADUs in order to determine which RHNA income categories they should be counted toward.    

SCAG conducted this analysis in order to provide local governments in the region with assumptions for ADU affordability that can be used to assign ADUs to income categories for the purpose of Sixth Cycle Housing Elements. Affordability can be determined in a number of ways. This analysis examines current market rents for reasonably comparable rental properties, using platforms such as Craigslist, Zillow, and Westside Rentals and key words to identify units that appear to be ADUs1. The analysis relies on a survey of rents of 150 existing ADUs conducted between April and June 2020. Efforts were made to reflect the geographic distribution, size, and other characteristics of ADUs across the following counties/subregions2. For example, LA County is separated into two categories in order to better account for the disparities in housing costs between coastal and inland jurisdictions. 

SCAG Regional Accessory Dwelling Unit Affordability Analysis 
6th Cycle Housing Element Update Technical Assistance – ADU Affordability Analysis 

Housing Element Parcel (HELPR) Tool  

The Housing Element Parcel (HELPR) Tool, released in December 2020, allows rudimentary site analysis for ADUs. This tool will be updated in Spring 2021 (version 2.0) with an ADU Potential Dataset being developed in collaboration with the Urban and Regional Planning Department at Cal Poly Pomona (CPP). The dataset is based on parcel-level land-use relevant sources.  Similar to other pre-selected filters in HELPR, users will have the capability to reconfigure values and dynamically combine it with other filters (e.g., environmentally sensitive areas, opportunity areas, environmental justice areas, etc.). 

 Trending: Accessory Dwelling Units within the SCAG Region 

WATCH THE VIDEO

Other Resources 

• Supporting Development of Accessory Dwelling Units (ADUs)
• SCAG ADU Ordinance Compliance
• HCD ADU Handbook  
• Casita ADU Finance Guide for Homeowners 
• ADU California Best Practices