This information report summarizes Sunnyvale’s Regional Housing Needs Determination (RHND) allocated by Association of Bay Area Governments (ABAG). The report also provides information on the determination methodology and review process. The RHND for Sunnyvale is a total of 3,713 new housing units from January1, 1999 to June 30, 2006 (Average of 495 units annually). Staff concurs with ABAG’s methodology and appropriation of Sunnyvale’s regional fair-share housing needs.

The Regional Housing Needs Determination (RHND) is a state-mandated process devised to address the need for and planning of housing across a range of affordability in communities throughout the State of California. The current RHND period is from January 1, 1999 through June 30, 2006 (a seven and a half year planning period). The Bay Area's regional housing need number is initially determined by the California State Department of Housing and Community Development (HCD), and finalized though negotiations with Association of Bay Area Governments (ABAG). After the regional number is set, ABAG determines the share of anticipated regional housing need for each jurisdiction in the Bay Area (101 cities in 9 counties).

As of December 1, 1999, each jurisdiction received information on their share of the RHND numbers. ABAG has extended the 90-day jurisdictional review period to end on April 30, 2000. This time period allows for the local jurisdictions to review and comment on their individual RHND responsibility. Each jurisdiction in the ABAG region is given one opportunity to appeal the decision by ABAGs Executive Board.

ABAG convened a methodology committee made up of staff and elected officials from throughout the Bay Area. A larger peer review group (staff and elected officials) reviewed the committee’s work. Sunnyvale was represented on the peer review group. A methodology was adopted by ABAG board and is based on the Projections 2000 that takes into account projected growth in terms of both households and jobs during the seven-and-a-half year period. This growth is weighted to 90% households and 10% jobs (Jobs/Housing Balance adjustment) to determine a regional allocation factor (the share of regional growth) to be applied to the regional allocation from HCD. The methodology is further used to distribute a share of housing to each jurisdiction by income category. This portion of the methodology distributes the share of each jurisdiction's need by moving each jurisdiction’s income percentages 50% toward the regional average. In essence, each allocation is based on what is the anticipated growth in a particular jurisdiction and what percentage of the expected regional growth this figure represents.

The following table shows Sunnyvale and the Santa Clara County’s RHND and associated income categories:

According to ABAG, Santa Clara County will be responsible for about 23% of the ABAG regional household growth, and 27.26% of the regional job growth. Using ABAG’s weighting system of 90% to households and 10% to jobs, this translates into 23.43% of the total regional housing needs. Based on the regional fair-share of this projected growth, ABAG has determined 3,713 housing units for Sunnyvale over a period of seven and half years (average of 495 units annually). This represents 6.86% of the RHND Santa Clara County. About thirty percent of the projected units for Sunnyvale are for Very-Low and Low Income levels.

Staff finds the methodology to be sound, given the goal set by the State and Sunnyvale’s RHND to be fair.

The current timeline allows local jurisdictions to comment on these proposed figures by April 30, 2000. Objections to the allocation should be accompanied by offsets for other communities. Following the jurisdictions review period, ABAG will have 60 days to review the comments and respond to individual jurisdictions. These responses must be completed by June 30, 2000. Following these review and comment periods, the ABAG Executive Board will adopt the final numbers for each jurisdiction, after which local jurisdictions will have an opportunity to formally appeal the determinations. Each jurisdiction in the AGAG region will be given opportunity to appeal the Executive Board.

Sunnyvale staff was a member of the peer review committee on Methodology and concurs with the method of fair-share appropriation. Challenging the RHND numbers requires a revision, which must be substantiated by "acceptable data". Staff believes that the data utilized for Sunnyvale’s allocation is reasonably accurate and current and challenging that data would be expensive in terms of time and effort spent for a potentially minor change. Staff notes that mounting a successful challenge to ABAG’s RHND for Sunnyvale is difficult given the methodology of fair-share appropriation.

Staff notes that the proposed housing allocation are goals that the community should strive to meet. The update to the Housing and Community Revitalization Sub-Element will address how the City plans to provide its share of housing.

No impact

This report will be presented to the Housing and Human Services Commission March 23, 2000 meeting and to the City Council on April 11, 2000. This report was included in the agenda for the above meetings, which are posted on City of Sunnyvale’s Website, and a copy of the report was provided at the Reference Section of the City of Sunnyvale’s Public Library.

Prepared by:

Shétal Divatia
Associate Planner

Reviewed by:

Trudi Ryan
Planning Officer

David S. Boesch, Jr.
Director, Community Development

Approved by:

Robert S. LaSala
City Manager