Since 1969, Housing Elements have been a mandatory chapter of local General Plans in California. A Housing Element is one of 9 State mandated elements of a General Plan and are required to be updated more frequently than a general plan. The mandated elements of a General Plan include Land Use, Open Space, Conservation, Housing, Environmental Justice, Circulation, Noise, Air Quality and Safety.

A Housing Element provides an analysis of a community’s housing needs for all income levels and strategies to provide for those housing needs. Just like with a General Plan, the Housing Element includes goals, policies, programs and objectives to guide future housing growth to meet the needs of residents of all income levels in Dixon. It also identifies projected housing needs by income category and requires certification by the State Department of Housing and Community Development (HCD) for compliance with state housing laws. 

An HCD certified Housing Element enables the City to be eligible for various state grants and funding sources. The State requires that Housing Elements be updated and certified regularly to reflect the most recent trends in demographics and employment that may affect existing and future housing demand and supply. The Housing Element is updated every eight years. The City currently has a certified Housing Element for 2015-2023. The next update has commenced, and the 2023-2031 Housing Element is the 6th Cycle Update, which is currently underway. 

Updating the Housing Element presents a real opportunity for communities to be forward thinking and strategic in their overall planning process. The benefits of updating the Housing Element include: 

• Providing timely access to State infrastructure bonds to construct needed capital improvement projects; 
• Implementing revitalization initiatives and smart growth principles to help shape the community's physical form; 
• Achieving a jobs-housing balance to reduce commute patterns, retaining a local employment base and providing the capacity for attracting new business; 
• Engaging the public and stakeholders in developing a common basis of understanding; 
• Devising land use strategies and achieving consensus on common goals; and 
• Directing growth in the community.

State Department of Housing and Community Development (HCD) is responsible for determining the regional housing needs assessment (RHNA) within each region’s planning body known as a “council of governments” (COG). RHNA quantifies the need for housing during specified planning periods. Each COG is then responsible for allocating the housing need amongst all the jurisdictions within that region during specified planning periods. 

The RHNA allocation to the entirely of Solano County for the 6^th Housing Element Cycle was 10,992 units. Through a subregion process, the County itself was able to create a subregion and determine how best to divide the total RHNA for Solano, amongst the seven cities and the unincorporated County.  The subregion process resulted in the City of Dixon being allocated 416 units to plan for during the 6^th cycle (2023-2031)

RHNA ALLOCATION FOR CITY OF DIXON
2023-2031

Housing Element law does not require the City construct the 416 housing units during this period, but rather to demonstrate that based on rules and regulations, that number of units can be allocated throughout the City. The Housing Element serves as a tool to address housing problems and aims to identify constraints, barriers, and provide realistic solutions where feasible. 

The major issues that must be addressed in the Housing Element are: 1) how City policies, plans and regulations help to meet the region’s housing needs for people at all income levels; and 2) how City land use regulations accommodate the special housing needs of persons with disabilities or other difficulties.

Every community is dependent on a variety of low- and moderate-income workers in jobs such as child and elder care, medical support, business and personal services, retail trade, and maintenance. While governmental programs provide funding assistance for affordable housing, city plans and regulations determine the type of housing that can be built. 

Therefore, a sufficient supply of affordable housing is dependent on both financial assistance and city development regulations. Under State law all cities are required to plan for additional housing to accommodate population growth and existing housing problems such as overcrowding and high housing cost. State law recognizes that most housing is built by private developers, not cities. However, cities are required to adopt policies, plans, and development regulations to encourage a variety of housing types that are affordable for persons at all income levels, including multi-family rental housing and accessory dwelling units (“ADUs”). 

The Regional Housing Needs Assessment (“RHNA”) is the process by which each jurisdiction’s share of new housing needs is determined. Additionally, under State law, cities must ensure that their plans and regulations encourage the provision of housing for persons with special needs including providing for:

• Reasonable accommodation for persons with disabilities; 
• Transitional and supportive housing; 
• Residential care facilities; and 
• Emergency shelters and “navigation centers

By definition, housing is considered “affordable” when total housing cost, including utilities, is no more than 30% of a household’s gross income. State law describes five income categories, which are based on the county’s median income. These categories, and their current maximum income classification for a household of four are shown in table below along with the Maximum Affordable Rents for Solano County in 2020:

Each California City is required to plan for new housing to accommodate a share of regional needs. The Regional Housing Needs Assessment (“RHNA”) is the process established in State law by which each city’s housing needs are determined. Prior to each Housing Element planning cycle the region’s total housing need is determined by the California Department of Housing and Community Development (“HCD”) based upon economic and demographic trends, existing housing problems such as overcrowding and overpayment, and additional housing needed to ensure reasonable vacancy rates and replace units lost due to demolition or natural disasters. 

The total housing need for the region is then distributed to cities and counties by region. In 2021 HCD determined that the total new housing need for the entire Association of Bay Area Governments (ABAG)  region in the 6th Housing Element cycle is 441,176 units. ABAG then prepared a RHNA plan that allocates a share of the RHNA to each jurisdiction in the region. 

Solano County is a bit different that other jurisdictions within ABAG. Solano County and it’s seven cities and the county, formed a sub region as a means to allocate the RHNA allocation within the county, rather than have ABAG make those allocations . See sub region information below.

State housing law allows the formation of a subregion for purposes of RHNA, as an alternative to the standard RHNA process. Formation of a subregion, allows more local control and coordination among the County and each of its cities in the allocation process, rather than being assigned units through methodology established by ABAG for the entire region.  

During the last Housing Element cycle (5^th cycle), Solano County formed its own sub region, which resulted in RHNA numbers for the 2015-2023 Housing Element. Solano was one of three counties in the Bay Area that elected to become a subregion. The others were Napa County and San Mateo County. The differences between the regular RHNA process and the establishment of a subregion is as follows: 

• The typical RHNA process would have the State HCD assign total housing needs to each region through its COG such as ABAG, Sac Council of Governments, etc.  Then, each COG would establish methodology for the allocation of that housing needs and based on the established methodology, would assign specific housing needs to each city within the region. Each city would maintain the right to appeal the allocation from the  COG. The final housing allocation assigned to a city or county, would be the number of units each City/County would need to use to plan for in their Housing Element.
• The subregion process does not alter the State’s assignment the total number of housing needs, except that the State would assign a total number of housing units to just the entirely of Solano County. The subregion, would then be develop their own methodology to allocate the housing needs within the county. Any such methodology requires consistency with State law and State housing objectives and is subject to the review and approval of HCD.

For this Housing Element cycle (6^th cycle 2023-2031), Solano County has once again decided to form its own sub region. This cycle, the Solano County subregion is the only subregion formed in the State. 

In late 2019/early 2020, each of the seven cities Solano County and the county itself, adopted Resolutions to become members of the Solano County Subregion and authorized the Solano City County Coordinating Council (4C’s) to act as the sub-regional entity for purpose of allocation the housing needs amongst its member jurisdictions.  The (4C’s), is comprised of the Solano County Board of Supervisors and the mayors of Solano County's seven incorporated cities.   The Dixon City Council took this action on February 4, 2020, through the adoption of Resolution No. 20-020. 

At the October 2019 4C’s meeting, the Solano Transportation Authority (STA) and the Planning Directors recommended that the planning firm, Placeworks, be hired as the subregion's consultant to help assist with the development of its methodology and navigate the technical requirements that a subregion must adhere to. Placeworks was the consulting firm that assisted with the previous (5^th cycle) Solano subregional RHNA process.

The next required Housing Element Planning Cycle (6^th Cycle for 2023-2031) is now underway. HCD has allocated the RHNA numbers to cities and counties throughout the state. For Solano county as a whole, the RHNA allocation assigned to our subregion is 10,992 units. 

Criteria for HCD Review of Subregion Methodology 

The state has established criteria for this 6^th Housing Element cycle. Formation of a sub region requires review and approval of State HCD and a subregion needs to develop their methodology consistent with the State HCD’s RHNA Objectives, including:

• Increased Supply and Affordability—Increase housing supply and mix of housing types,   tenure, and affordability in all cities and counties in an equitable manner.
• Environmental Justice—Promote infill development and socioeconomic equity, protect environmental and agricultural resources, encourage efficient development patterns, and achieve GHG reduction targets 
• Jobs-Housing Balance—Promote improved intraregional jobs-housing relationship, including balance between low-wage jobs and affordable housing 
• Affordability Balance—Balance disproportionate household income distributions (more high-income RHNA to lower-income areas and vice-versa) 
• Affirmatively Further Fair Housing— Promote fair housing choice and foster inclusive communities that are free from discrimination

In addition, any methodology needs to incorporate a series of the following factors established by the State. The underlined items are new factors for this 6^th RHNA cycle:

• Existing and projected jobs and housing relationship, particularly low-wage jobs and affordable housing
• Lack of capacity for sewer/water service due to decisions outside jurisdiction’s control 
• Availability of land suitable for urban development 
• Lands protected from urban development under existing federal or state programs 
• County policies to preserve prime agricultural land 
• Distribution of household growth in Plan Bay Area and opportunities to maximize use of transit and existing transportation infrastructure 
• Agreements to direct growth toward incorporated areas 
• Loss of deed-restricted affordable units 
• Households paying more than 30 percent and more than 50 percent of their income in rent
• The rate of overcrowding
• Housing needs of farmworkers 
• Housing needs generated by a university within the jurisdiction 
• Units lost during a state of emergency that have yet to be replaced 
• The region’s GHG targets

The RHNA allocation identifies the amount of additional housing a jurisdiction would require in order to have enough housing at all price levels to fully meet the needs of its existing population plus its expected population growth over the next 8 years while avoiding problems like overcrowding and overpayment.  The number of housing units needed are established by the State, and assigned by the State, the different regions throughout the State. 

The RHNA is a planning requirement that identifies housing need, not a construction quota or mandate. Jurisdictions are not required to build housing or issue permits to achieve their RHNA allocations, but State law does establish specific requirements when housing production falls short of RHNA allocations. 

One such requirement is streamlined review of housing development applications that meet specific standards. There is also more discussion by some State legislators to tie more requirements or penalties to local jurisdiction that do not produce the housing identified by RHNA, but at this point, it is still only required to plan for the housing. 

The Housing Element must analyze the city’s potential capacity for additional housing based on an evaluation of land use patterns, development regulations, development constraints, and real estate market factors. The analysis must be prepared to identify properties where additional housing could be built consistent with current regulations. This evaluation is referred to as the “sites inventory.” 

State law requires the inventory to demonstrate that the city has adequate capacity to fully accommodate its RHNA allocation for each income category. If the sites inventory does not demonstrate that adequate capacity exists to fully accommodate the RHNA, the Housing Element must describe what steps will be taken to increase capacity commensurate with the RHNA – typically through amendments to land use and zoning regulations that could facilitate additional housing development. Under State law, areas that are zoned to allow residential or mixed-use development at a density of at least 20 units/acre in small cities like Dixon are considered appropriate for affordable housing in the very-low and low- income categories. Accessory dwelling units (“ADUs”) can also accommodate future housing need in all income categories. 

California law requires each city and county to plan for their “fair share” of the State’s housing growth needs. Based on economic and demographic forecasts, the State has determined that the Assocation of Bay Area Governments (ABAG) region needs to accommodate is 441,176 units. housing units between 2023 and 2031 to meet housing demand. ABAG is the agency responsible for distributing the fair share allocation among its 9 counties (Solano, Napa, Sonoma, Marin, San Francisco, San Mateo, Santa Clara, Alameda and Contra Costa) and 101 cities in the ABAG region. 

However, as noted elsewhere, Solano County formed it’s own sub region and therefore, is able to distribute the RHNA allocation for the entirety of Solano County (10,992 units), amongst the jurisdictions using the methodology established by the County, and cities (and approved by the State). 

As part of the update process, all California localities are required to submit draft and adopted elements to the California Department of Housing and Community Development ("HCD") for review. Although communities are obligated to consider HCD comments, they are not required to modify their Elements to incorporate changes requested by HCD. 

The ultimate determination of whether a Housing Element complies with applicable law is reserved for the courts to decide. Although HCD is not the final authority on determining Housing Element compliance, there are three primary consequences for not obtaining HCD approval: 

• If a Cities Housing Element is litigated, there is a rebuttable presumption of validity of the element if HCD has found that the element or amendment substantially complies with the requirements of Housing Law. 
• Various grant and loan programs offered through the State of California are only available to those communities which either have HCD-certified Housing Elements or do not otherwise have impediments to the production of affordable housing. 
• Unfilled regional housing needs from the previous Housing Element cycle resulting from the failure to provide adequate sites must be addressed in the first year of the next planning period in addition to all new housing needs that are assigned to that particular jurisdiction.

Communities with little or no remaining vacant land are still subject to RHNA  and they must still update their Housing Element to accommodate the RHNA.  In these cases, the Housing Element may evaluate existing developed properties as “underutilized sites”. 

Such properties may be available for intensification, or they may be non-residential sites with potential for re-designation and redevelopment for housing or mixed-use development. Examples of land with potential for recycling may include fragmented sites suitable for assembly, publicly owned surplus land, areas with mixed use potential, properties facing substantial functional obsolescence, and blighted areas with abandoned or vacant buildings. 

Second units (aka “accessory dwelling units”) also provide a means of accommodating additional housing in built-out communities. Under limited circumstances, a portion of the City’s RHNA may be met through conversion of existing market rate apartments to affordable levels; preservation of affordable units at-risk of conversion to market rate; and substantial rehabilitation of substandard apartment units combined with long term affordability covenants.

Community input is a very important part of the Housing Element Update. State planning law requires that communities make diligent efforts to engage public participation that includes all stakeholders and income groups. The public process for the Housing Element will include educational workshops on housing issues, policy formation and program development. Late in the process, the Planning Commission and City Council will conduct formal hearings to adopt the updated Housing Element. Written public comment regarding issues related to housing are always welcome.

The State Legislature has delegated authority to the California Department of Housing and Community Development (“HCD”) to review Housing Elements and issue findings regarding the elements’ compliance with the law. If HCD issues a finding that the Housing Element is in substantial compliance with State law it is referred to as “certification” of the Housing Element. Achieving certification of the Housing Element is important for two main reasons: 

1)   Maintaining Local control. The General Plan establishes the foundation for the City’s land use plans and regulations, and the Housing Element is part of the General Plan. If the City were challenged in court on a planning or zoning matter and the Housing Element were found by the court to be out of compliance, the court could order changes to City land use plans or regulations and assume control over some City land use decisions. HCD certification establishes a “rebuttable presumption of validity” that the Housing Element complies with State law, which would support the City’s legal defense. Recent laws also allow for courts to impose fines if a jurisdiction fails to adopt a compliant Housing Element. 

2)   Eligibility for grant funds. Some State grant funds are contingent upon Housing Element certification. 

A webpage has been established on the City’s website for the Housing Element update at: https://www.cityofdixonca.gov/housingelementupdate 

This webpage will be updated periodically with meeting notices, documents and other materials regarding the Housing Element update. You can also sign up to receive notices of upcoming meetings. 

If you have questions not addressed on the website, you can contact Raffi Boloyan, Community Development Director, at rboloyan@cityofdixon.us.