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CC SR 20201006 05 - RHNA Update CITY COUNCIL MEETING DATE: 10/06/2020 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consideration and possible action to receive a report on the status of the preparation of the Regional Housing Needs Assessment 6th Cycle Allocation Plan. RECOMMENDED COUNCIL ACTION: (1) Receive and file a report on the preparation of the Regional Housing Needs Assessment 6th Cycle Allocation Plan. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Octavio Silva, Deputy Director of Community Development REVIEWED BY: Ken Rukavina, PE, Director of Community Development APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Draft RHNA Allocation by Jurisdiction (page A-1) B. SCAG 6th Cycle RHNA Appeal Procedures (page B-1) C. RHNA Methodology Opposition Letters (page C-1) D. Housing Element Update RFP/RFQ (page D-1) BACKGROUND AND DISCUSSION: Regional Housing Needs Assessment (RHNA) RHNA is a representation of future housing needs for all income levels in a jurisdiction (city or unincorporated county) and is a requirement of the California State Housing Law Program. In 1969, the state mandated that all California cities, towns and counties must plan for the housing needs of our residents — regardless of income. Every jurisdiction must plan for its RHNA allocation in the Housing Element of its General Plan. The objectives of RHNA include: • Increasing housing supply and mix of housing types, tenure and affordability 1 • Promoting infill development and socioeconomic equity, protection of resources and encouraging efficient development patterns • Improving an intraregional relationship between jobs and housing • Allocating a lower proportion of housing need in income categories in areas that have a disproportionately high share in comparison to the county distribution • Affirmatively furthering fair housing The Southern California Association of Governments (SCAG) is the organization tasked with developing a RHNA allocation plan for the Southern California region. SCAG is the nation’s largest metropolitan planning organization, which represents six counties and 191 cities, including the City of Rancho Palos Verdes. A City’s RHNA represents a planning target and is not a building quota. However, a City must provide sufficient sites, which are realistic and probable for housing development within the prescribed timeframe, and a City cannot impose constraints to development. The City is in the 5th RHNA cycle, which covers the planning period between the years of 2013-2021. As part of the current cycle, the City’s RHNA allocation is a total of 31 needed housing units in various income levels. The City is required to provide annual RHNA progress reports to the California Department of Housing and Community Development (HCD). In 2019, the City reported the completion of 18 housing units with 13 remaining that need to be developed by the year 2021 to meet the 5th RHNA cycle allocation. Staff will continue to implement the programs as specified in the City’s Housing Element to allow development of the remaining units by 2021. 6th Cycle RHNA Allocation Plan SCAG is in the process of preparing a 6th Cycle RHNA allocation plan to cover the planning periods of 2021-2029 and that can accommodate for a regional housing need of 1,344,740 housing units among four income categories, which include very-low, low, moderate and above-moderate income levels. During much of 2019, SCAG conducted public hearings to receive comments and input from the public and local jurisdictions about the development of a RHNA methodology by which to distribute the housing need throughout the Southern California region. On March 5, 2020, SCAG’s Regional Council adopted a final RHNA methodology, which, in coordination with the final Connect SoCal plan adopted on September 3, 2020, results in draft RHNA allocations for all jurisdictions (Attachment A). Based on this information, the City’s draft 6th Cycle RHNA allocation is 638 needed units, consisting of: • Very-low income units: 253 • Low income units: 139 • Moderate-income Units: 125 • Above-moderate income units: 121 2 The City’s RHNA allocation is based on two components, which include a projected housing need of 24 housing units that were derived from the City’s direct input to SCAG and 614 units that were identified by SCAG as an existing housing need for the region. The Housing Element update process, further discussed below, will begin with the RHNA and allocation of needed units the City must plan to accommodate in the 2021- 2029 housing cycle. RHNA Appeal Pursuant to Government Code section 65584.05, any local jurisdiction within the SCAG region may file an appeal to modify its allocated share or another jurisdiction’s share of the regional housing need included as part of SCAG’s Draft RHNA Allocation Plan. The process for a local jurisdiction to appeal its draft allocation began September 11 and concludes on October 26. Appeal guidelines (Attachment B) provided by SCAG outline two bases for appeals, which include issues with the RHNA methodology and local planning factors/information affirmatively furthering fair housing. Staff, unless otherwise directed by the City Council, is in the process of preparing the appeal package, which will outline SCAG’s failure to fully consider information submitted by the City related to certain local factors. More specifically, the City submitted letters of opposition (Attachment C) regarding draft RHNA methodologies on three occasions, which highlighted the City’s unique challenges and physical constraints that include being located within a Very High Fire Hazard Severity Zone, the presence of geologic hazards and the preservation of restricted open space supporting sensitive wildlife and habitat through the City’s Natural Communities Conservation Plan/Habitat Conservation Plan (NCCP/HCP). Staff will also assess whether SCAG failed to accurately determine the City’s RHNA allocation based on final adopted methodologies. It is likely to be a struggle to win an appeal, and there are no options to trade or transfer RHNA allocations to other jurisdictions. Units that are successfully appealed will be reallocated back to the region. Staff contacted the neighboring Peninsula cities to discuss the opportunity to consider a Peninsula-wide approach to filing a RHNA appeal, as the cities on the Hill share many of the same physical constraints to land development. Staff was informed that the Rolling Hills Estates City Council recently voted to not appeal its draft RHNA allocation, finding that its draft RHNA allocation did not appear to indicate any issues with the already-adopted methodology and the data used to derive its allocation. Staff anticipates meeting with the other Peninsula cities over the next week to further discuss a Peninsula-wide appeal. SCAG will conduct public hearings on RHNA allocation appeals, which are expected to begin in December. Staff will provide additional RHNA updates to the City Council as more information about the appeal becomes available. 3 ADDITIONAL INFORMATION: Housing Element Update The Housing Element is one of the seven mandatory elements of a city’s General Plan, and it specifies ways in which the housing needs of existing and future residents can be met. In February 2014, the City’s current Housing Element was adopted by the City Council, which covers the planning period of 2013-2021.The City is required to update its Housing Element every eight years to coincide with SCAG’s next RHNA cycle. The next updated Housing Element will cover the planning period of 2021-2029 and will have to outline the City’s plan to accommodate its final 6th Cycle RHNA allocation. Essentially, the updated Housing Element will need to demonstrate the City has more than enough zoned capacity to accommodate the allocated number of needed housing units. This may include updating the zoning ordinance to accommodate the City’s portion of the region's housing need. Potential Accessory Dwelling Unit (ADU) development will be allowed to be used toward RHNA allocations; however, local governments will need to provide an analysis of anticipated affordability levels to assign ADUs to income categories. On September 28, 2020, Staff issued a request for proposals/request for qualifications (RFP/RFQ) (Attachment D) seeking professional contract services from qualified planning and housing firms for the completion of the City’s updated Housing Element. The City will be accepting proposals until October 22, with interviews tentatively scheduled for November 5 and the anticipated award of contract on November 17. Staff anticipates that the Housing Element update process will take 8-10 months to complete. The updated Housing Element is due to HCD by October 2021. SB2 Grant Status Update On April 10, HCD notified the City that it was being awarded a $160,000 SB 2 Planning Grant to develop a potential mixed-use overlay zone and development standards to encourage the development of housing in the City’s commercial districts , with a primary focus on the development of a mixed-use overlay zone along Western Avenue. Staff will be issuing an RFP/RFQ in the next couple of weeks to retain professional contract services to assist in the preparation of the proposed housing overlay and public outreach effort. The RFP/RFQ will also include the preparation of the related environment review and documentation. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Direct Staff not to file an appeal of the City’s 6th RHNA Cycle allocation. 4 SCAG 6TH CYCLE DRAFT RHNA ALLOCATION BASED ON FINAL RHNA METHODOLOGY & FINAL CONNECT SOCAL 9/3/20 ALLOCATION BY COUNTY Total Very-low income Low income Moderate income Above moderate income Imperial 15,956 4,659 2,352 2,194 6,751 Los Angeles 813,082 217,565 123,171 131,532 340,814 Orange 183,430 46,295 29,176 32,482 75,477 Riverside 167,177 41,943 26,450 29,146 69,638 San Bernardino 137,786 35,575 21,855 24,087 56,269 Ventura 24,396 5,759 3,803 4,516 10,318 TOTAL 1,341,827 351,796 206,807 223,957 559,267 ALLOCATION BY LOCAL JURISDICTION County Total Very-low income Low income Moderate income Above- moderate income Adelanto city San Bernardino 3756 394 565 650 2147 Agoura Hills city Los Angeles 318 127 72 55 64 Alhambra city Los Angeles 6808 1769 1033 1077 2929 Aliso Viejo city Orange 1193 389 214 205 385 Anaheim city Orange 17411 3757 2391 2939 8324 Apple Valley town San Bernardino 4280 1083 599 745 1853 Arcadia city Los Angeles 3206 1099 569 604 934 Artesia city Los Angeles 1067 311 168 128 460 Avalon city Los Angeles 27 8 5 3 11 Azusa city Los Angeles 2646 759 367 382 1138 Baldwin Park city Los Angeles 1996 574 275 262 885 Banning city Riverside 1668 316 192 279 881 SCAG, September 2020 Page 1 of 5A-1 SCAG 6TH CYCLE DRAFT RHNA ALLOCATION BASED ON RC-APPROVED FINAL RHNA METHODOLOGY ALLOCATION BY LOCAL JURISDICTION County Total Very-low income Low income Moderate income Above- moderate income Barstow city San Bernardino 1516 172 227 299 818 Beaumont city Riverside 4202 1226 720 722 1534 Bell city Los Angeles 228 43 23 29 133 Bell Gardens city Los Angeles 501 99 29 72 301 Bellflower city Los Angeles 3726 1012 487 552 1675 Beverly Hills city Los Angeles 3096 1005 678 601 812 Big Bear Lake city San Bernardino 212 50 33 37 92 Blythe city Riverside 493 82 71 96 244 Bradbury city Los Angeles 41 16 9 9 7 Brawley city Imperial 1423 398 210 202 613 Brea city Orange 2360 667 393 402 898 Buena Park city Orange 8899 2114 1340 1570 3875 Burbank city Los Angeles 8751 2546 1415 1406 3384 Calabasas city Los Angeles 353 131 71 70 81 Calexico city Imperial 4856 1276 653 612 2315 Calimesa city Riverside 2013 494 275 378 866 Calipatria city Imperial 151 36 21 16 78 Camarillo city Ventura 1373 352 244 270 507 Canyon Lake city Riverside 128 43 24 24 37 Carson city Los Angeles 5605 1766 911 873 2055 Cathedral City city Riverside 2542 538 352 456 1196 Cerritos city Los Angeles 1903 678 344 331 550 Chino city San Bernardino 6961 2107 1281 1201 2372 Chino Hills city San Bernardino 3720 1384 819 787 730 Claremont city Los Angeles 1707 554 309 297 547 Coachella city Riverside 7867 1030 997 1364 4476 Colton city San Bernardino 5420 1314 666 904 2536 Commerce city Los Angeles 246 55 22 38 131 Compton city Los Angeles 1001 235 121 130 515 Corona city Riverside 6075 1748 1038 1094 2195 Costa Mesa city Orange 11733 2912 1790 2084 4947 Covina city Los Angeles 1905 612 267 281 745 Cudahy city Los Angeles 392 80 36 53 223 Culver City city Los Angeles 3333 1105 603 559 1066 Cypress city Orange 3927 1147 656 622 1502 Dana Point city Orange 530 147 84 101 198 Desert Hot Springs city Riverside 3865 568 534 687 2076 Diamond Bar city Los Angeles 2516 842 433 436 805 Downey city Los Angeles 6510 2074 944 913 2579 Duarte city Los Angeles 886 268 144 137 337 Eastvale City Riverside 3022 1142 671 634 575 El Centro city Imperial 3433 998 489 461 1485 El Monte city Los Angeles 8481 1792 851 1230 4608 El Segundo city Los Angeles 491 189 88 83 131 Fillmore city Ventura 413 72 61 72 208 Fontana city San Bernardino 17477 5096 2943 3029 6409 Fountain Valley city Orange 4827 1304 784 832 1907 SCAG, September 2020 Page 2 of 5A-2 SCAG 6TH CYCLE DRAFT RHNA ALLOCATION BASED ON RC-APPROVED FINAL RHNA METHODOLOGY ALLOCATION BY LOCAL JURISDICTION County Total Very-low income Low income Moderate income Above- moderate income Fullerton city Orange 13180 3190 1985 2267 5738 Garden Grove city Orange 19122 4155 2795 3204 8968 Gardena city Los Angeles 5721 1481 759 892 2589 Glendale city Los Angeles 13393 3430 2158 2244 5561 Glendora city Los Angeles 2270 733 385 387 765 Grand Terrace city San Bernardino 628 188 92 106 242 Hawaiian Gardens city Los Angeles 331 61 44 46 180 Hawthorne city Los Angeles 1731 444 204 249 834 Hemet city Riverside 6450 810 730 1171 3739 Hermosa Beach city Los Angeles 556 231 127 105 93 Hesperia city San Bernardino 8135 1916 1228 1406 3585 Hidden Hills city Los Angeles 40 17 8 9 6 Highland city San Bernardino 2508 618 408 470 1012 Holtville city Imperial 171 41 33 26 71 Huntington Beach city Orange 13337 3652 2179 2303 5203 Huntington Park city Los Angeles 1601 263 196 242 900 Imperial city Imperial 1597 702 345 294 256 Indian Wells city Riverside 382 117 81 91 93 Indio city Riverside 7793 1788 1167 1312 3526 Industry city Los Angeles 17 6 4 2 5 Inglewood city Los Angeles 7422 1808 953 1110 3551 Irvine city Orange 23554 6379 4225 4299 8651 Irwindale city Los Angeles 118 36 11 16 55 Jurupa Valley City Riverside 4485 1204 747 729 1805 La Cañada Flintridge city Los Angeles 610 251 135 139 85 La Habra city Orange 803 192 116 130 365 La Habra Heights city Los Angeles 172 78 35 31 28 La Mirada city Los Angeles 1957 633 341 319 664 La Palma city Orange 800 223 140 137 300 La Puente city Los Angeles 1924 542 275 274 833 La Quinta city Riverside 1526 419 268 296 543 La Verne city Los Angeles 1343 413 238 223 469 Laguna Beach city Orange 393 117 80 79 117 Laguna Hills city Orange 1980 566 353 353 708 Laguna Niguel city Orange 1204 347 201 223 433 Laguna Woods city Orange 993 126 135 191 541 Lake Elsinore city Riverside 6666 1874 1097 1131 2564 Lake Forest city Orange 3228 954 541 558 1175 Lakewood city Los Angeles 3914 1293 636 652 1333 Lancaster city Los Angeles 9002 2218 1192 1325 4267 Lawndale city Los Angeles 2491 730 310 370 1081 Loma Linda city San Bernardino 2048 522 311 352 863 Lomita city Los Angeles 827 238 124 127 338 Long Beach city Los Angeles 26440 7123 4038 4149 11130 Los Alamitos city Orange 767 193 118 145 311 Los Angeles city Los Angeles 455577 115680 68593 74936 196368 Lynwood city Los Angeles 1555 376 139 235 805 SCAG, September 2020 Page 3 of 5A-3 SCAG 6TH CYCLE DRAFT RHNA ALLOCATION BASED ON RC-APPROVED FINAL RHNA METHODOLOGY ALLOCATION BY LOCAL JURISDICTION County Total Very-low income Low income Moderate income Above- moderate income Malibu city Los Angeles 78 27 19 17 15 Manhattan Beach city Los Angeles 773 322 164 155 132 Maywood city Los Angeles 363 54 47 55 207 Menifee city Riverside 6594 1756 1049 1104 2685 Mission Viejo city Orange 2211 672 400 396 743 Monrovia city Los Angeles 1665 518 261 253 633 Montclair city San Bernardino 2586 696 382 398 1110 Montebello city Los Angeles 5174 1311 705 775 2383 Monterey Park city Los Angeles 5245 1321 820 846 2258 Moorpark city Ventura 1288 377 233 245 433 Moreno Valley city Riverside 13596 3769 2047 2161 5619 Murrieta city Riverside 3034 1006 581 543 904 Needles city San Bernardino 87 10 11 16 50 Newport Beach city Orange 4834 1453 928 1048 1405 Norco city Riverside 454 145 85 82 142 Norwalk city Los Angeles 5022 1542 757 657 2066 Ojai city Ventura 53 13 9 10 21 Ontario city San Bernardino 20805 5625 3279 3322 8579 Orange city Orange 3927 1064 603 676 1584 Oxnard city Ventura 8528 1835 1068 1535 4090 Palm Desert city Riverside 2783 673 459 460 1191 Palm Springs city Riverside 2552 544 407 461 1140 Palmdale city Los Angeles 6625 1773 933 1002 2917 Palos Verdes Estates city Los Angeles 198 82 44 47 25 Paramount city Los Angeles 362 91 43 48 180 Pasadena city Los Angeles 9408 2740 1659 1562 3447 Perris city Riverside 7786 2025 1124 1271 3366 Pico Rivera city Los Angeles 3939 1149 562 572 1656 Placentia city Orange 4365 1228 679 769 1689 Pomona city Los Angeles 10534 2792 1336 1507 4899 Port Hueneme city Ventura 125 26 16 18 65 Rancho Cucamonga city San Bernardino 10501 3237 1916 2033 3315 Rancho Mirage city Riverside 1741 429 317 327 668 Rancho Palos Verdes city Los Angeles 638 253 139 125 121 Rancho Santa Margarita city Orange 680 209 120 125 226 Redlands city San Bernardino 3507 964 614 650 1279 Redondo Beach city Los Angeles 2483 933 507 489 554 Rialto city San Bernardino 8252 2212 1203 1368 3469 Riverside city Riverside 18415 4849 3057 3133 7376 Rolling Hills city Los Angeles 45 20 9 11 5 Rolling Hills Estates city Los Angeles 191 82 42 38 29 Rosemead city Los Angeles 4601 1151 636 685 2129 San Bernardino city San Bernardino 8104 1411 1095 1445 4153 San Buenaventura (Ventura) city Ventura 5300 1184 863 948 2305 San Clemente city Orange 978 281 163 187 347 San Dimas city Los Angeles 1245 383 219 206 437 San Fernando city Los Angeles 1791 460 273 283 775 SCAG, September 2020 Page 4 of 5A-4 SCAG 6TH CYCLE DRAFT RHNA ALLOCATION BASED ON RC-APPROVED FINAL RHNA METHODOLOGY ALLOCATION BY LOCAL JURISDICTION County Total Very-low income Low income Moderate income Above- moderate income San Gabriel city Los Angeles 3017 844 415 465 1293 San Jacinto city Riverside 3385 798 464 559 1564 San Juan Capistrano city Orange 1051 269 172 183 427 San Marino city Los Angeles 397 149 91 91 66 Santa Ana city Orange 3087 584 361 522 1620 Santa Clarita city Los Angeles 10008 3389 1730 1668 3221 Santa Fe Springs city Los Angeles 950 252 159 152 387 Santa Monica city Los Angeles 8873 2787 1668 1698 2720 Santa Paula city Ventura 656 102 99 121 334 Seal Beach city Orange 1239 257 201 238 543 Sierra Madre city Los Angeles 204 79 39 35 51 Signal Hill city Los Angeles 516 160 78 90 188 Simi Valley city Ventura 2786 747 492 517 1030 South El Monte city Los Angeles 576 131 64 70 311 South Gate city Los Angeles 8263 2131 991 1171 3970 South Pasadena city Los Angeles 2062 755 397 333 577 Stanton city Orange 1227 164 144 231 688 Temecula city Riverside 4183 1355 799 777 1252 Temple City city Los Angeles 2182 628 350 369 835 Thousand Oaks city Ventura 2615 733 493 531 858 Torrance city Los Angeles 4928 1617 845 851 1615 Tustin city Orange 6765 1720 1043 1129 2873 Twentynine Palms city San Bernardino 1044 230 127 184 503 Unincorporated Imperial Co.Imperial 4292 1200 595 579 1918 Unincorporated Los Angeles Co. Los Angeles 89842 25582 13661 14151 36448 Unincorporated Orange Co.Orange 10381 3131 1862 2035 3353 Unincorporated Riverside Co.Riverside 40768 10399 6648 7371 16350 Unincorporated San Bernardino Co. San Bernardino 8813 2174 1357 1520 3762 Unincorporated Ventura Co.Ventura 1259 318 225 249 467 Upland city San Bernardino 5673 1580 957 1011 2125 Vernon city Los Angeles 9 5 4 0 0 Victorville city San Bernardino 8146 1731 1134 1500 3781 Villa Park city Orange 296 93 60 61 82 Walnut city Los Angeles 1292 426 225 231 410 West Covina city Los Angeles 5334 1649 848 863 1974 West Hollywood city Los Angeles 3924 1063 687 681 1493 Westlake Village city Los Angeles 142 58 29 32 23 Westminster city Orange 9737 1876 1470 1781 4610 Westmorland city Imperial 33 8 6 4 15 Whittier city Los Angeles 3431 1022 536 555 1318 Wildomar city Riverside 2709 796 449 433 1031 Yorba Linda city Orange 2411 763 450 457 741 Yucaipa city San Bernardino 2859 706 492 509 1152 Yucca Valley town San Bernardino 748 155 116 145 332 SCAG, September 2020 Page 5 of 5A-5 1 6th RHNA Cycle Appeals Procedures Pursuant to Government Code section 65584.05,any local jurisdiction within the SCAG region may file an appeal to modify its allocated share or another jurisdiction’s share of the regional housing need included as part of SCAG’s Draft Regional Housing Needs Assessment (RHNA) Allocation Plan, hereinafter referred to as the “Draft RHNA Plan.” The California Department of Housing and Community Development, hereinafter referred to as “HCD”, may also file an appeal to one or more jurisdiction’s draft RHNA allocation. No appeal shall be allowed relating to post-appeal reallocation adjustments made by SCAG,as further described in Section II, below. I.APPEALS PROCESS A.DEADLINE TO FILE The period to file appeals shall commence on September 11, 20201, which shall be deemed as the date of receipt by jurisdictions and HCD of the draft RHNA Plan .In order to comply with Government Code §65584.05(b), a jurisdiction or HCD seeking to appeal a draft allocation of the regional housing need must file an appeal by 5:00 p.m.October 26, 2020.Late appeals shall not be accepted by SCAG. B.FORM OF APPEAL The local jurisdiction shall state the basis and specific reasons for its appeal on the RHNA Appeal Request Form prepared by SCAG, a copy of which is attached hereto as Exhibit “A”.Additional documents may be submitted by the local jurisdiction as attachments, and all such attachments should be properly labeled and numbered. C.BASES FOR APPEAL Local jurisdictions shall only file an appeal based upon the criteria listed below. In order to provide guidance to potential appellants,SCAG’s Final RHNA Methodology for the 6th Housing Element Cycle (2021-2029)(Final RHNA Methodology)approved by SCAG’s Regional Council on March 5, 2020,is attached hereto as Exhibit “B”.Appeals based on “change of circumstance”can only be filed by the jurisdiction or jurisdictions where the change in circumstance occurred. Pursuant to Government Code Section 65584.05, filed appeals must include a statement as to why the revision is necessary to further the intent of the objectives listed in Section 65584. Additionally,Government Code Section 65584.05(b)requires that all 1 The period to file appeals shall commence on the eighth day after the Regional Council adopts the Final Connect SoCal in its entirety, and all the subsequent dates in this Appeals Procedures shall be adjusted accordingly. B-1 2 filed appeals must be consistent with, and not to the detriment of, the deve lopment pattern in the sustainable communities strategy, or SCAG’s Connect SoCal Plan, pursuant to Government Code Section 65080(b)(2). 1.Methodology –That SCAG failed to determine the jurisdiction’s share of the regional housing need in accordance with the information described in the Final RHNA Methodology established and approved by SCAG, and in a manner that furthers, and does not undermine the five objectives listed in Government Code Section 65584(d). 2.Local Planning Factors and Information Affirmatively Furthering Fair Housing (AFFH)–That SCAG failed to consider information submitted by the local jurisdiction relating to certain local factors outlined in Govt. Code § 65584.04(e) and information submitted by the local jurisdiction relating to affirmatively furthering fair housing pursuant to Government Code § 65584.04(b)(2)and 65584(d)(5)including the following: a.Each jurisdiction’s existing and projected jobs and housing relationship. b.The opportunities and constraints to development of additional housing in each jurisdiction, including the following: (1)lack of capacity for sewer or water service due to federal or state laws, regulations or regulatory actions, or supply and distribution decisions made by a sewer or water service provider other than the local jurisdiction that preclude the jurisdiction from providing necessary infrastructure for additional development during the planning period; (2)the availability of land suitable for urban development or for conversion to residential use, the availability of underutilized land, and opportunities for infill development and increased residential densities; (3)Lands preserved or protected from urban development under existing federal or state programs, or both, designed to protect open space, farmland, environmental habitats, and natural resources on a long-term basis, including land zoned or designated for agricultural protection or B-2 3 preservation that is subject to a local ballot measure that was approved by the voters of that jurisdiction that prohibits or restricts conversion to non-agricultural uses. (4)County policies to preserve prime agricultural land, as defined pursuant to Government Code §56064, within an unincorporated area, and land within an unincorporated area zoned or designated for agricultural protection or preservation that is subject to a local ballot measure that was approved by the voters of that jurisdiction that prohibits or restricts its conversion to non-agricultural uses. c.The distribution of household growth assumed for purposes of a comparable period of regional transportation plans and opportunities to maximize the use of public transportation and existing transportation infrastructure. d.Agreements between a county and cities in a county to direct growth toward incorporated areas of the co unty or designated for agricultural protection or preservation that is subject to a local ballot measure that was approved by the voters of the jurisdiction that prohibits or restricts conversion to nonagricultural uses. e.The loss of units contained in assisted housing developments, as defined in Government Code § 65583(a)(9), that changed to non-low-income use through mortgage prepayment, subsidy contract expirations, or termination of use restrictions. f.The percentage of existing households at each of the income levels listed in subdivision (e) of Section 65584 that are paying more than 30 percent and more than 50 percent of their income in rent. g.The rate of overcrowding. h.The housing needs of farmworkers. i.The housing needs generated by the presence of a private university or a campus of the California State University or the University of California within any member jurisdiction. j.The loss of units during a state of emergency that was declared by the Governor pursuant to the California B-3 4 Emergency Services Act (Chapter 7(commencing with Section 8550) of Division 1 of Title 2), during the planning period immediately preceding the relevant revision pursuant to Section 65588 that have yet to be rebuilt or replaced at the time of the analysis. For purposes of these guidelines, this applies to loss of units during a state of emergency occurring since October 2013 and have not yet been rebuilt or replaced by the time of the development of the draft RHNA methodology, or November 7, 2019. k.The region’s greenhouse gas emissions targets provided by the State Air Resources Board pursuant to Section 65080, to be met by SCAG’s Connect SoCal Plan. l.Information based upon the issues, strategies, and actions that are included, as available in an Analysis of Impediments to Fair Housing Choice or an Assessment of Fair Housing completed by any city or county or the California Department of Housing and Community Development, and in housing elements 3.Changed Circumstances –That a significant and unforeseen change in circumstance has occurred in the jurisdiction after April 30, 2019 and merits a revision of the information previously submitted by the local jurisdiction.Appeals on this basis shall only be made by the jurisdiction or jurisdictions where the change in circumstances has occurred. D.LIMITS ON SCOPE OF APPEAL Existing law explicitly limits SCAG’s scope of review of appeals. Specifically,SCAG shall not grant any appeal based upon the following: B-4 5 1.Any other criteria other than the criteria in Section I.C above. 2.A local jurisdiction’s existing zoning ordinance and land use restrictions, including but not limited to, the contents of the local jurisdiction’s current general plan.Pursuant to Government Code Section 65584.04(e)(2)(B),SCAG may not limit its consideration of suitable housing sites or land suitable for urban development to existing zoning ordinances and land use restrictions of a locality, but shall consider the potential for increased residential development under alternative zoning ordinances and land use restrictions. 3.Any local ordinance, policy,voter-approved measure or standard limiting residential development.Pursuant to Government Code Section 65584.04(g)(1), any ordinance, policy,voter-approved measure,or standard of a city or county that directly or indirectly limits the number of residential building permits shall not be a justification for a determination or a reduction in a city’s or county’s share of regional housing need. 4.Prior underproduction of housing in a jurisdiction from the previous regional housing need allocation. Pursuant to Government Code Section 65584.04)(g)(2), prior underproduction of housing in a jurisdiction from the previous housing need allocation, as determined by each jurisdiction’s annual production report submitted to Government Code Section 65400(a)(2)(H) cannot be used as a justification for a determination or reduction in a jurisdiction’s share of the regional housing need. 5.Stable population numbers in a jurisdiction. Pursuant to Government Code Section 65584.04(g)(3), st able population growth from the previous regional housing needs cycle cannot be used as a justification for a determination or reduction in a jurisdiction’s share of the regional housing need. E.COMMENTS ON APPEALS At the close of the appeals period as set forth in I.A.,SCAG shall notify all jurisdictions within the region and HCD of all appeals and shall make all materials submitted in support of each appeal available on its website after the close of the appeals filing period. Local jurisdictions and HCD may comment on one or more appeals within the 45 days following the end of the appeals filing period . All comments must be filed by 5:00 p.m.December 10, 2020. No late comments shall be accepted by SCAG. B-5 6 F.HEARING BODY SCAG’s Regional Council has delegated the responsibility of considering appeals regarding draft allocations to the RHNA Subcommittee , also referred to as the RHNA Appeals Board. All provisions of the RHNA Subcommittee’s charter shall apply with respect to the membership and conduct of the appeal hearings.Per the RHNA Subcommittee charter, which was adopted on February 7, 2019 by the Regional Cou ncil, ex-officio members may participate as non-voting members of the RHNA Subcommittee and by extension the RHNA Appeals Board,and are not counted for purposes of a quorum.Also per the RHNA Subcommittee charter,all decisions made by the RHNA Appeals Board are considered final and will not be reviewed by the SCAG CEHD Committee or Regional Council. G.APPEAL HEARING SCAG shall conduct one public hearing to consider all appeals filed and comments received on the appeals no later than January 10, 2021.This public hearing may be continued (over several days if necessary) until all appeals are heard.Notice shall be provided to the appealing jurisdictions, commenting jurisdictions, and HCD at least 21 days in advance of the hearing.Per Government Code Section 65584.05(i), SCAG may extend the deadline to conduct the appeals hearing by up to thirty (30) day s. The appeal hearing may take place provided that each co unty is represented either by a member or alternate of the RHNA Appeals Board. Alternates are permitted to participate in the appeal hearing, provided however, that each county shall only be entitled to one vote when deciding on the appeal.Ex-officio members may participate as non-voting members of the RHNA Appeals Board and are not counted f or purposes of a quorum.In alignment with the adopted RHNA Subcommittee charter, in the event the hearing involves the member’s or alternate’s respective jurisdictio n, the member or alternate may elect not to participate in the discussion and vote by the RHNA Subcommittee regarding such appeal. Due to the public health situation that began in late Winter 2020, RHNA appeals hearings may be conducted via teleconference per State-adopted emergency amendments to the Brown Act. SCAG staff will continue to app rise the public on any updates to meeting procedures and will include all information in the public noticing of the appeal hearings. Appeal Hearing Procedures The hearing(s)shall be conducted to provide applicants and jurisdiction s that did not file appeals but are the subject of an appeal,with the opportunity to make their case regarding a change in their draft regional housing need allocation or another B-6 7 jurisdiction’s allocation, with the burden on the applicants to prove their case.The appeals hearings will be organized by the specific jurisdiction subject to an appeal or appeals and will adhere to the following procedures: 1.Initial Arguments Applicants who have filed an appeal for a particular jurisdiction will have an opportunity to present their request and reasons to grant the appeal. In the event of multiple appeals filed for a single jurisdiction, the subject jurisdiction will present their argument first if it has filed an appeal on its own draft RHNA allocation.Applicants may present their case either on their own, or in coordination with other applicants, but each applicant shall be allotted five (5) minutes each.If the subject jurisdiction did not file an appeal on its own draft RHNA allocation, it will be given an opportunity to present after all applicants have provided initial arguments on their filed appeals.Any presentation from the jurisdiction who did not appeal but is the subject of the appeal is limited to five (5) minutes unless it is responding to more than one appeal, in which c ase the jurisdiction is limited to eight (8) minutes. 2.Staff Response After initial arguments are presented, SCAG staff will present their recommendation to approve or deny the appeals filed for the subject jurisdiction. The staff response is limited to five (5) minutes . 3.Rebuttal Applicants and the jurisdiction who did not file an appeal but is the subject of the appeal may elect to provide a rebuttal but are limited to the arguments and evidence presented in the staff response.Each applicant and the subject jurisdiction that did not file an appeal on its own draft RHNA allocation will be allotted three (3) minutes each for a rebuttal. 4.Extension of Time Allotment The Chair of the Appeals Board may elect to grant additional time for any presentation, staff response, or rebuttal in the interest of due process and equity. 5.Appeal Board Discussion and Determination After arguments and rebuttals are presented, the RHNA Appe als Board may ask questions of applicants, the subject jurisdiction (if present), and SCAG staff. The Chair of the Appeals Board may request that questions B-7 8 from the Appeals Board be asked prior to a discussion among Appeals Board members. Any voting Board member may make a motion regarding the appeal(s) for the subject jurisdiction.The Appeals Board is encouraged to make a single determination on the subject jurisdiction after hearing all arguments and presentations on each subject jurisdiction. The RHNA Appeals Board need not adhere to formal evidentiary rules and procedures in conducting the hearing.An appealing jurisdiction may choose to have technical staff present its case at the hearing. At a minimum, technical staff should be available at the hearing to answer any questions of the RHNA Appeals Board. H.DETERMINATION OF APPEAL The RHNA Appeals Board shall issue a written final determination on all filed appeals after the conclusion of the public hearing(s).The written final determination shall consider all arguments and comments presented on revising the draft RHNA allocation of the subject jurisdiction and make a determination for each subject jurisdiction.The final determinations shall be based upon the information and methodology set forth in Government Code section 65584.04 and whether the revision is necessary to further the objectives listed in Government Code section 65584(d). The final determination shall include written findings as to how the determination is consistent with Governme nt Code section 65584.05.The decision of the RHNA Appeals Board shall be final, and local jurisdictions shall have no further right to appeal. In accordance with existing law,the final determination on an appeal by the RHNA Subcommittee may require the adjustment of allocation of a local jurisdiction that is not the subject of an appeal.Specific adjustments to jurisdictions not the subject of an appeal as a result of an appeal will be included as part of the Appeal Board’s determination. These specific adjustments may be excluded from the cumulative total adjustments required to be reallocated as described in Section II of these Appeals Guidelines if it is included as part of the appeals determination of the subject jurisdiction. I.ALTERNATIVE DATA REQUIREMENTS To the extent a local jurisdiction submits admissible alternative data or evidentiary documentation to SCAG in support of its appeal, such alternative data shall meet the following requirements: B-8 9 1.The alternative data shall be readily available for SCAG’s review and verification. Alternative data should not be constrained for use by proprietary conditions or other conditions rendering them difficult to obtain or process. 2.The alternative data shall be accurate, current, and reasonably free from defect. 3.The alternative data shall be relevant and germane to the local jurisdiction’s basis of appeal. 4.The alternative data shall be used to support a logical analysis relating to the local jurisdiction’s request for a change to its draft regional housing need allocation. II.POST-APPEAL REALLOCATION OF REGIONAL HOUSING NEED In accordance with existing law (see, Government Code Section 65584.05(g)), after the conclusion of the appeals process,SCAG shall total the successfully appealed housing need allocations, except for adjustments made to jurisdictions not the subject of an appeal as determined by the Appeals Board in Section I.H.If the adjustments total seven percent (7%)or less of the regional housing need, SCAG shall distribute the adjustments proportionally,to all local jurisdictions.For purposes of these procedures, proportional distribution shall be based on the share of regional need after the appeals are determined and prior to the required redistribution. If the adjustments total more than seven percent (7%)of the regional housing need, existing law requires that SCAG to develop a methodology to distribute the amount greater than seven percent to local governments. In this situation,SCAG will redistribute the amount greater than the seven perce nt based on the “residual”existing need calculation included in the adopted final RHNA methodology.To be consistent with the “residual” existing need calculation, successfully appealed units above the seven percent threshold will be redistributed to each county based on their proportion of total successful appeals. Fifty percent (50%) of each county’s amount above the regional seven percent will be redistributed within the county based on population within a High Quality Transit Area (HQTA) and fifty percent (50%) of the amount will be redistributed within the county based on share of regional jobs accessible. Communities designated as disadvantaged, defined in the Final RHNA Methodology as having more than fifty percent (50%) of their population in lower resource areas, will be exempt from redistribution of the amount greater than seven percent. For more information regarding the existing need distribution in the Final RHNA Methodology, please refer to Exhibit B SCAG’s adopted Final RHNA Methodology. B-9 10 III.FINAL RHNA PLAN After SCAG reallocates units to all local jurisdictions resulting from successful appeals, SCAG’s Regional Council shall review and consider adoption of the Final RHNA Plan for SCAG’s 6th cycle RHNA.This is scheduled to occur on February 4, 2021. B-10 11 List of Exhibits Exhibit A:RHNA Appeal Request Form Exhibit B:Final RHNA Methodology Exhibit C: Government Code Section 65580 Government Code Section 65584 Government Code Section 65584.04 Government Code Section 65584.05 Exhibit D:RHNA Subcommittee Charter B-11 Sixth Cycle Regional Housing Needs Assessment (RHNA) Appeal Request Form All appeal requests and supporting documentation must be received by SCAG October 26, 2020, 5 p.m. Appeals and supporting documentation should be submitted to housing@scag.ca.gov. Late submissions will not be accepted. FOR STAFF USE ONLY: Date Hearing Date:Planner: Date: Jurisdiction Subject to This Appeal Filing: (to file another appeal, please use another form) Filing Party (Jurisdiction or HCD) Filing Party Contact Name Filing Party Email: APPEAL AUTHORIZED BY: Name: PLEASE SELECT BELOW: Mayor Chief Administrative Office City Manager Chair of County Board of Supervisors Planning Director Other: BASES FOR APPEAL  Application of the adopted Final RHNA Methodology for the 6th Cycle RHNA (2021‐2029)  Local Planning Factors and/or Information Related to Affirmatively Furthering Fair Housing (See Government Code Section 65584.04 (b)(2) and (e))  Existing or projected jobs‐housing balance  Sewer or water infrastructure constraints for additional development  Availability of land suitable for urban development or for conversion to residential use  Lands protected from urban development under existing federal or state programs  County policies to preserve prime agricultural land  Distribution of household growth assumed for purposes of comparable Regional Transportation Plans  County‐city agreements to direct growth toward incorporated areas of County  Loss of units contained in assisted housing developments  High housing cost burdens  The rate of overcrowding  Housing needs of farmworkers  Housing needs generated by the presence of a university campus within a jurisdiction  Loss of units during a state of emergency  The region’s greenhouse gas emissions targets  Affirmatively furthering fair housing  Changed Circumstances (Per Government Code Section 65584.05(b), appeals based on change of circumstance can only be made by the jurisdiction or jurisdictions where the change in circumstance occurred) B-12 Sixth Cycle Regional Housing Needs Assessment (RHNA) Appeal Request Form All appeal requests and supporting documentation must be received by SCAG October 26, 2020, 5 p.m. Appeals and supporting documentation should be submitted to housing@scag.ca.gov. Late submissions will not be accepted. FOR STAFF USE ONLY: Date Hearing Date:Planner: Brief statement on why this revision is necessary to further the intent of the objectives listed in Government Code Section 65584 (please refer to Exhibit C of the Appeals Guidelines): Please include supporting documentation for evidence as needed, and attach additional pages if you need more room. Brief Description of Appeal Request and Desired Outcome: Number of units requested to be reduced or added to the jurisdiction’s draft RHNA allocation (circle one): Reduced Added List of Supporting Documentation, by Title and Number of Pages (Numbers may be continued to accommodate additional supporting documentation): 1. 2. 3. B-13 1 Final RHNA Methodology EXECUTIVE SUMMARY SCAG is required to develop a final RHNA methodology to distribute existing and projected housing need for the 6th cycle RHNA for each jurisdiction, which will cover the planning period October 2021 through October 2029.Following extensive feedback from stakeholders during the proposed methodology comment period and an extensive policy discussion, SCAG’s Regional Council voted to approve the Draft RHNA Methodology on November 7, 2019, as described below, and provide it to the State Department of Housing and Community Development (HCD) for th eir statutory review. On January 13, 2020, HCD completed its review of the draft methodology and found that it furthers the five statutory objectives of RHNA and on March 4, 2020, SCAG’s Regional Council voted to approve the Final RHNA Methodology.The overall framework for this methodology is included in the table below and further described in the rest of this document. Projected need Existing need Income categories Household growth 2020- 2030 Transit accessibility (HQTA population 2045) 150%social equity adjustment minimum Future vacancy need Job accessibility 0-30% additional adjustment for areas with lowest or highest resource concentration Replacement need Residual distribution within the county HOUSING CRISIS There is no question that there is an ongoing housing crisis throughout the State of California.A variety of measures indicate the extent of the crisis including overcrowding and cost-burdened households, but the underlying cause is due to insufficient housing supply despite continuing population growth over recent decades. As part of the RHNA process SCAG must develop a final RHNA methodology, which will determine each jurisdiction’s draft RHNA allocation as a share of the regional determination of existing and projected housing need provided by the California Department of Housing and Community Development (HCD). There are several requirements outlined by Government Code Section 65584.04, which will be covered in different sections of this packet: Allocation methodology,per Government Code 65584.04(a) How the allocation methodology furthers the objectives State housing law,per GC 65584.04(f) B-14 2 How local planning factors are incorporated into the RHNA methodology,per GC 65584.04(f) Furthering the objectives of affirmatively furthering fair housing (AFFH),per GC 65584.04(d) Public engagement,per GC 65584.04(d) Additionally, SCAG has developed a dynamic estimator tool and data appendix that contains a full set of various underlying data and assumptions to support the methodology. Due to the size of the appendix, a limited number of printed copies are available. SCAG has posted the dynamic estimator tool and full methodology appendix, on its RHNA webpage:www.scag.ca.gov/rhna. Per State housing law, the RHNA methodology must distribute existing and projected housing need to all jurisdictions. The following section provides the final methodology for distributing projected and existing need to jurisdictions from the RHNA regional determination provided by the California Department of Housing and Community Development (HCD) pursuant to Government Code Section 65584.01. Guiding Principles for RHNA Methodology In addition to furthering the five objectives pursuant to Government Code 65585(d), there are several guiding principles that SCAG staff has developed to use as the basis for developing the distribution mechanism for the RHNA methodology. These principles are based on the input and guidance provided by the RHNA Subcommittee during their discussions on RHNA methodology between February 2019 and June 2019. 1.The housing crisis is a result of housing building not keeping up with growth over the last several decades. The RHNA allocation for all jurisdictions is expected to be higher than the 5th RHNA cycle. 2.Each jurisdiction must receive a fair share of their regional housing need. This includes a fair share of planning for enough housing for all income levels, and consideration of factors that indicate areas that have high and low concentration of access to opportunity. 3.It is important to emphasize the linkage to other regional planning principle s to develop more efficient land use patterns, reduce greenhouse gas emissions, and improve overall quality of life. The jurisdictional boundaries used in the recommended RHNA methodology will be based on those as of August 31, 2016. Spheres of influence in unincorporated county areas are considered within unincorporated county boundaries for purposes of RHNA. Proposed RHNA Allocation Methodology The proposed RHNA methodology, which was released for public review on August 1, contained three (3) options to distribute HCD’s regional determination for existing and projected need for the B-15 3 SCAG region. HCD provided SCAG a final regional determination of 1,341,827 units for the 6th cycle RHNA on October 15, 2019.1 The three options were developed based on RHNA Subcommittee feedback on various factors at their meetings between February and June 2019 and feedback from stakeholders.SCAG solicited formal public comment on the three options and any other factors, modifications, or alternative options during the public comment period, which commenced on August 1 and concluded on September 13, 2019. Four public hearings were conducted to formally receive verbal and written comments on the proposed RHNA methodology, in addition to one public information session with a total participation of approximately 250 people.Almost 250 written comments were submitted to SCAG specifically on the proposed methodology and over 35 verbal comments were shared at four (4) public hearings held in August 2019. Draft and Final RHNA Allocation Methodology Based on comments received during the public comment period, staff recommended a combination of the three options in the proposed methodology further enhanced by factors specifically suggested by stakeholders. On November 7, 2019, SCAG’s Regional Council voted to approve the Draft RHNA Methodology. The approved draft methodology included modifications to the staff-recommended draft methodology for calculating existing housing need to more closely align the methodology with job and transit accessibility factors. On January 13, 2020, HCD completed their statutory review and found that SCAG’s Draft RHNA Methodology furthers the five statutory objectives of RHNA, which allows SCAG to finalize the RHNA methodology and issue draft RHNA allocations to each individual jurisdiction.HCD’s comment letter, which can be found at www.scag.ca.gov/rhna, notes: “HCD has completed its review of the methodology and finds that the draft SCAG RHNA methodology furthers the five statutory objectives of RHNA. HCD acknowledges the complex task of developing a methodology to allocate RHNA to 197 diverse jurisdictions while furthering the five statutory objectives of RHNA. This methodology generally distributes more RHNA, particularly lower income RHNA, near jobs, transit, and resources linked to long term improvements of life outcomes. In particular, HCD applauds the use of objective factors specifically linked the statutory objectives in the existing need methodology.” Following this finding,staff recommended the draft RHNA methodology as the final RHNA methodology.On March 5, 2020, SCAG’s Regional Council approved Resolution No. 20-619-2 1 On September 5, 2019, the SCAG Regional Council voted to object to HCD the regional determination of 1,344,740, per Government Code Section 65584.01, that was provided on August 15, 2019. After review of SCAG’s objection letter, HCD provided a final regional determination of 1,341,827 units on October 15, 2019. B-16 4 adopting the Final RHNA Methodology for the Sixth Housing Element Cycle. Follow ing the formal distribution of draft RHNA allocations based on the Final RHNA methodology and a separate appeals phase described in Government Code 65584.05 et seq., RHNA allocations will be finalized in approximately October 2020. The next section describes the final RHNA methodology mechanism to distribute the 1,341,827 housing units determined by HCD to all SCAG jurisdictions. Determining Existing Need and Projected Need SCAG’s final RHNA methodology starts with the total regional determination provided by HCD and separates existing need from projected need. Projected need is considered as household growth for jurisdictions between the RHNA projection period between July 1, 2021 and October 1, 2029, in addition to a calculated future vacancy need and replacement need. For projected household growth, SCAG’s Connect SoCal growth forecast for the years 2020-2030 is used as the basis for calculating projected housing unit need for the region. The anticipated growth in households over this period is multiplied by 0.825 to approximate growth during the 8.25-year RHNA projection period of July 1, 2021 to October 1, 2029. For several jurisdictions, SCAG’s growth forecast includes projected household growth on tribal land. For these jurisdictions, SCAG’s estimate of household growth on tribal land from July 1, 2021 to October 1, 2029 is subtracted from the jurisdictional projected household growth (see note in the accompanying dynamic estimator tool).A vacancy adjustment of 1.5% for owner-occupied units and 5% for renter-occupied units representing healthy-market vacancy will be applied to projected household growth to determine future vacancy need. Next a replacement need is added, which is an estimate of expected replacement need over the RHNA period.Based on these components, the regional projected need is 504,970 units. Existing need is considered the remainder of the regional determination after projected need is subtracted.Based on this consideration, the regional existing need is 836,857 units. Determining a Jurisdiction’s RHNA Allocation (Existing and Projected Need ) In determining the existing need and projected need for the region,the methodology applies a three-step process to determine a jurisdiction’s RHNA allocation by income category: 1.Determine a jurisdiction’s projected housing need a.Assign household growth to jurisdictions based on SCAG’s Connect SoCal Regional Transportation Plan/Sustainable Communities Strategy Growth Forecast between 2020 and 2030 b.Calculate a jurisdiction’s future vacancy need by applying a healthy market vacancy rate separately to the jurisdiction’s owner and renter households c.Assign a replacement need to jurisdictions based on each jurisdiction’s share of regional net replacement need based on information collected from the replacement need survey submitted by local jurisdictions B-17 5 2.Determine a jurisdiction’s existing housing need a.Assign 50 percent of regional existing need based on a jurisdiction’s share of region’s population within the high quality transit areas (HQTAs)based on future 2045 HQTAs b.Assign 50 percent of regional existing need based on a jurisdiction’s share of the region’s jobs that can be accessed within a 30-minute driving commute c.For extremely disadvantaged communities (hereafter “DACs,” see definition below), identify residual existing need, which is defined herein as total housing need in excess of household growth between 2020 and 20452. DACs are jurisdictions with more than half of the population living in high segregation and poverty or low resource areas as defined by the California Tax Credit Allocation Committee (TCAC)/HCD Opportunity Index Scores further described in the document. d.Reallocate residual existing need by county to non-DAC jurisdictions within the same county based on the formula in (a) and (b) above, i.e. 50% transit accessibility and 50% job accessibility. 3.Determine a jurisdiction’s total housing need a.Add a jurisdiction’s projected housing need from (1)above to its existing housing need from (2)above to determine its total housing need. 4.Determine four RHNA income categories (very low, low, moderate, and above moderate) a.Use a minimum 150% social equity adjustment b.Add an additional percentage of social equity adjustment to jurisdictions that have a high concentration of very low or very high resource areas using the California Tax Credit Allocation Committee (TCAC)’s index scoring i.Add a 10% social equity adjustment to areas that are designated as 70-80% very high or very low resource area ii.Add a 20% social equity adjustment to areas that are designated as 81 -90% very high or very low resource area iii.Add a 30% social equity adjustment to areas that are designated as 91 -100% very high or very low resource area Methodology Component Assigned units Projected need: Household growth 466,958 Projected need: Future vacancy need 14,467 Projected need: Replacement need 23,545 Projected need subtotal 504,970 2 Since HCD’s regional determination of 1,341,827 exceeds SCAG’s 2020 -2045 household growth forecast of 1,297,000 by 3.46 percent, for the purposes of existing need allocation, exceeding “local inpu t” or more accurately, Connect SoCal Growth Forecast, household growth shall mean exceeding 1.0368 times household growth. B-18 6 Percentage of Existing Need Assigned units Existing need: Transit accessibility 50%418,429 Existing need: Job accessibility 50%418,428 Existing need subtotal 836,857 Total regional need 1,341,827 Step 1: Determine Projected Housing Need The first step of the RHNA methodology is to determine a jurisdiction’s projected need. From the regional determination, projected need is considered to be regional household growth, regional future vacancy need, and regional replacement need. To determine a jurisdiction’s projected need,the methodology uses a three-step process: a.Determine the jurisdiction’s regional projected household growth based on local input b.Determine future vacancy need based on a jurisdiction’s existing composition of owner a nd renter households and apply a vacancy rate on projected household growth based on the following: a.Apply a 1.5% vacancy need for owner households b.Apply a 5.0% vacancy need for renter households c.Determine a jurisdiction’s net replacement need based on rep lacement need survey results Step 1a: Projected Household Growth SCAG’s Connect SoCal regional growth forecast reflects recent and past trends, key demographic and economic assumptions, and local, regional, state, and national policy.SCAG’s regional growth forecasting process also emphasizes the participation of local jurisdictions and other stakeholders. The growth forecast process kicked off on May 30, 2017 with a panel of experts meeting wherein fifteen academic scholars and leading practitioners in demographics and economics were invited to review key input assumptions for the growth forecast including expected job growth, labor force B-19 7 participation, birth rates, immigration and household formation rates. SCAG staff then incorporated the recommendations of the panel of experts into a preliminary range of population, household, and employment growth figures for 2016, 2020, 2030, 2035, and 2045 for the region and six counties individually. SCAG further projects jurisdiction-level and sub-jurisdiction-level employment, population, and households using several major data sources, including: -California Department of Finance (DOF) population and household estimates; -California Employment Development Department (EDD) jobs report by industry; -2015 existing land use and General Plans from local jurisdictions; -2010 Census and the latest ACS data (2013-2017 5-year samples); -County assessor parcel databases; -2011 and 2015 Business Installment data from InfoGroup; and -SCAG’s 2016 RTP/SCS growth forecast. On October 31, 2017, the preliminary small area (i.e. jurisdiction and sub-jurisdiction) growth forecasts were released to local jurisdictions for their comments and input. This kicked off SCAG’s Bottom-Up Local Input and Envisioning Process which provided each local jurisdiction with their preliminary growth forecast information as well as several other data elements both produced by SCAG and other agencies which are related to the development of Connect SoCal. Data map books were generated and provided electronically and in hard copy format and included detailed parcel- level land use data, information on resource areas, farmland, transportation, geographical boundaries and the draft growth forecast. Complete information on the Data map books and the Bottom-Up Local Input and Envisioning Process can be found at http://scagrtpscs.net/Pages/DataMapBooks.aspx.Over the next eight months, SCAG staff conducted one-on-one meetings with all 197 local jurisdictions to explain methods and assumptions behind the jurisdiction and sub-jurisdiction growth forecast as well as to provide an opportunity to review, edit, and approve SCAG’s preliminary forecast for population, employment, and households for 2016, 2020, 2030, 2035, and 2045. Between October 2018 and February 2019, SCAG reviewed local input on the growth forecast and other data map book elements. The local input growth forecast was evaluated at the county and regional level for the base year of 2016 and the horizon year of 2045 and was found to be technically sound. Specifically, as it relates to SCAG’s local input household forecast: -The forecast generates a 2045 regional unemployment rate of 4.7 percent which is reasonable based on past trends and ensured that the forecast is balanced, i.e. there are not too many jobs for the number of anticipated workers -The forecast generates a 2045 population-to-household ratio of 2.9 which is consistent with the preliminary forecast and reflects expert-anticipated decreases in this ratio, ensuring that there are not too many people for the anticipated number of households region-wide -From 2020-2045, the forecast anticipates household growth of 21 percent and population growth of 15 percent,indicating an alleviation of the region’s current housing shortage over this future period. B-20 8 SCAG's growth forecast for the years 2020-2030 is used as the basis for calculating projected housing unit need. Because the 6th cycle RHNA projection period covers July 1, 2021 through October 15, 2029, it is necessary to adjust reported household growth between 2020 and 2030 and adjust it to an 8.25 year projection period. The anticipated growth in households over this period is multiplied by 0.825 to approximate growth during the 8.25-year RHNA projection period (July 1, 2021 to October 15, 2029). Step 1b: Future Vacancy Need The purpose of a future vacancy need is to ensure that there are enough vacant units to support a healthy housing market that can genuinely accommodate projected household growth. An undersupply of vacant units can prevent new households from forming or moving into a jurisdiction. Formulaically, future vacancy need is a percentage applied to the jurisdiction’s household growth by tenure type (owner and renter households).While individual jurisdictions may experience different vacancy rates at different points in time, future vacancy need is independent of existing conditions and instead is a minimum need to support household growth. To calculate a jurisdiction’s future vacancy need, its proportion of owner -occupied units and renter- occupied units are determined using American Community Survey (ACS) 2013-2017 data—the most recent available at the time of the draft methodology’s development. The percentages are applied to the jurisdiction’s projected household growth from the previous step, which results in the number of projected households that are predicted to be owners and those that are predicted to be renters. Next, two different vacancy rates are applied based on the regional determination provided by HCD. The recommended methodology uses 1.5 percent for owner-occupied units and a rate of 5 percent for renter-occupied units. The difference is due to the higher rates of turnover generally reported by renter units in comparison to owner-occupied units. The vacancy rates are applied to their respective tenure category to determine how many future vacant units are needed by tenure and then added together to get the total future vacancy need. Step 1c: Replacement Need Residential units are demolished for a variety of reasons including natural disasters, fire, or desire to construct entirely new residences. Each time a unit is demolished,a household is displaced and disrupts the jurisdiction’s pattern of projected household growth. The household may choose to live in a vacant unit or leave the jurisdiction, of which both scenarios result in negative household growth through the loss of a vacant unit for a new household or subtracting from the jurisdictions number of households. For these reasons, replacement need is a required component of the regional determination provided by HCD. The methodology’s replacement need will be calculated using a jurisdiction’s net replacement need based on data submitted for the replacement need survey, which was conducted between March and April 2019. Each jurisdiction’s data on historical demolitions between reporting years 2008 and 2018, which was collected from the California Department of Finance (DOF), was tabulated and provided to B-21 9 jurisdictions in the replacement need survey. Jurisdictions were asked to provide data on units that replaced the reported demolished units. A net replacement need was determined based on this information for each jurisdiction. After determining each of the projected housing need components, they are combined to determine a jurisdiction’s projected housing need. Step 2: Determine Existing Housing Need After determining a jurisdiction’s projected need, the next step is to determine a jurisdiction’s existing need.Following the above discussion and based on HCD’s determination of total regional housing need, existing need is defined as the total need minus the projected need—approximately 62 percent of the entire regional determination.SCAG’s Regional Council determined that the regional existing need be split into two parts: Fifty (50) percent on population near transit (HQTA), or 31 percent of total need Fifty (50) percent on job accessibility, or 31 percent of total need Step 2a: Share of Regional HQTA Population The next step involves the consideration of proximity to transit to distribute fifty (50)percent of the region’s existing housing need,in an effort to better align transportation and housing planning. For several years, SCAG has developed a measure called High Quality Transit Areas (HQTAs) which are areas within a half-mile of transit stations and corridors with at least a fifteen (15) m inute headway during peak hours for bus service. HQTAs are based on state statutory definitions of high- quality transit corridors (HQTCs) and major transit stops. For the development of Connect SoCal, freeway-running HQTCs have been excluded from HQTAs to better reflect the level of service they provide to nearby areas. Planned HQTCs and major transit stops for future years are improvements that are expected to be implemented by transit agencies by the Connect SoCal horizon year of 2045. SCAG updates its inventory with the quadrennial adoption of each RTP/SCS; however, planning and environmental B-22 10 impact studies may be completed by transit agencies more frequently. Therefore, HQTAs in future years reflect the best information currently available to SCAG regarding the location of future high - quality transit service accessibility.More detailed information on HQTA-related definitions is available in the data appendix. 50 percent of the regional existing housing need will be distributed based on a jurisdiction’s share of regional residential population within an HQTA, based on the HQTA boundaries used in the final Connect SoCal Plan anticipated to be adopted by SCAG in April 2020.Not all jurisdictions have an HQTA within their jurisdictional boundaries and thus may not receive existing need based on this factor. Step 2b:Job Accessibility The concept behind job accessibility is to further the statewide housing objective and SCAG’s Connect SoCal objective of improving the relationship between jobs and housing. While none of the three options presented in the proposed RHNA methodology included a factor directly based on job accessibility, an overwhelming number of public comments expressed support for the methodology to include this specific component. The methodology assigns fifty (50) percent of regional existing need based on job accessibility. Job accessibility is based on the share of the region’s jobs accessible by a thirty (30) minute commute by car in 2045. Importantly, the RHNA methodology’s job access factor is not based on the number of jobs within a jurisdiction from SCAG’s Connect SoCal Plan or any other data source. Rather, it is a measure based on of how many jobs can be accessed from that jurisdiction within a 30-minute commute, which includes jobs in other jurisdictions. Since over 80 percent of SCAG region workers live and work in different jurisdictions, genuinely improving the relationship between jo bs and housing necessitates an approach based on job access rather than the number of jobs in a jurisdiction. These job accessibility data are derived at the transportation analysis zone (TAZ) level from travel demand modelling output from SCAG’s final Connect SoCal Plan. SCAG realizes that in many jurisdictions, especially larger ones, job access many not be uniform in all parts of the city or county. However, since the RHNA process requires allocating housing need at the jurisdictional-level, staff reviewed several ways to measure the typical commuter’s experience in each jurisdiction. Ultimately, the share of the region’s jobs that could be accessed by a jurisdiction’s median TAZ was found to be the best available measure of job accessibility for that jurisdiction. Based on this measure, in central parts of the region, residents of some jurisdictions can access as much as 23 percent of the region’s jobs in a 30 minute car commute, while the average across all the region’s jurisdictions was 10.5 percent. This measure is multiplied by a jurisdiction’s share of total population in order to allocate housing unit need to jurisdictions. This important step ensures that the potential beneficiaries of greater accessibility (i.e.,the population in a jurisdiction with good job access) are captured in the methodology. Based on this approach, jurisdictions with limited accessibility to jobs will receive a smaller RHNA allocation based on this component. Step 2c:“Residual” Adjustment Factor for Existing Need B-23 11 In many jurisdictions defined as “disadvantaged communities (DACs)”, the calculated projected and existing need is higher than its household growth between 2020 and 2045, as determined by the SCAG Growth Forecast used in the final Connect SoCal regional plan.Those DAC jurisdictions that have a need as determined by the RHNA methodology as higher than its 2020 to 2045 household growth3 will be considered as generating “residual”existing need. Residual need will be subtracted from jurisdictional need in these cases so that the maximum a DAC jurisdiction will receive for existing need is equivalent to its 2020 to 2045 household growth.Not all DAC jurisdictions will have a residual existing need. A county total of residual existing need will be calculated and then redistributed with the same county to non-DAC jurisdictions. The redistribution will be assigned to jurisdictions based on transit accessibility (50%)and job accessibility (50%), and will exclude DAC jurisdictions which have over 50% of their populations in very low resource areas using California Tax Credit Allocation Committee (TCAC)/HCD Opportunity Indices. Very low resource areas are areas that have least access to opportunity as measured by indicators such as poverty levels, low wage job proximity, math and reading proficiency, and pollution levels . This mechanism will help to further AFFH objectives since residual existing RHNA need, which includes additional affordable units, will be assigned to areas that are not identified as those with the 3 Since HCD’s regional determination of 1,341,827 exceeds SCAG’s 2020 -2045 household growth forecast of 1,297,000 by 3.68 percent, for the purposes of existing need allocation, exceeding “local input” or “Connect SoCal” household growth shall mean exceeding 1.0368 times household growth. B-24 12 lowest resources, which will increase access to opportunity.A full discussion on the TCAC opportunity indicators is provided in the following section on social equity adjustment.Data relating to the TCAC opportunity indicator categories for each jurisdiction can be found in the RHNA methodology data appendix and in the accompanying RHNA allocation estimator tool on the RHNA webpage: www.scag.ca.gov/rhna. B-25 13 Step 3:Determining Total Housing Need After determining a jurisdiction’s projected housing need from step 1 and its existing housing need from step 2, the sum of the projected and existing need becomes a jurisdiction’s total housing need. Step 4:Determining Four Income Categories through Social Equity Adjustment After determining a jurisdiction’s total RHNA allocation, the next step is to assign the total into four RHNA income categories.The four RHNA income categories are: Very low (50 percent or less of the county median income); Low (50-80 percent); Moderate (80 to 120 percent); and Above moderate (120 percent and above) The fourth RHNA objective specifically requires that the RHNA methodology allocate a lower proportion of housing need in jurisdictions that already have a disproportionately high concentration of those households in comparison to the county distribution.Additionally, the fifth objective, affirmatively furthering fair housing (AFFH),requires that the RHNA methodology further the objectives of addressing significant disparities in housing nee ds and access to opportunity in order to overcome patterns of segregation. To further these two objectives, the RHNA methodology includes a minimum 150 percent social equity adjustment and an additional 10 to 30 percent added in areas with significant populations that are defined as very low or very high resource areas , referred to as an AFFH adjustment. This determines the distribution of four income categories for each jurisdiction. Jurisdiction’s projected housing need Jurisdiction’s existing housing need Jurisdiction’s Total Housing Need B-26 14 A social equity adjustment ensures that jurisdictions accommodate their fair share of each income category.First, the percentage of each jurisdiction’s distribution of four income categories is determined using the county median income as a benchmark. For example, in Los Angeles County, a household earning less than $30,552 annually, or 50 percent of the county median income,would be considered a very low income household.A household in Los Angeles County earning more than $73,218 annually, or 120 percent of the county median income, would be counted in the above moderate category. The number of households in each category is summed and then a percentage of each category is then calculated. For reference, below is the median household income by county. Imperial County: $44,779 Los Angeles County: $61,015 Orange County: $81,851 Riverside County: $60,807 San Bernardino County: $57,156 Ventura County: $81,972 SCAG region: $64,114 Source: American Community Survey (ACS) 2013-2017 5-year estimates Once a jurisdiction’s household income distribution by category is determined, the percentage is compared to the county’s percentage of existing household income distribution. For example, if a jurisdiction has an existing distribution of 30 percent of very low income households while the county is 25 percent, the jurisdiction is considered as having an overconcentration of very low income households compared to the county. A social equity adjustment ensures that the jurisdiction will be assigned a smaller percentage of very low income households for its RHNA allocation than both what it and the county currently experience. If the jurisdiction is assigned a social equity adjustment of 150 percent, the formula to calculate its very low income percentage is: Household Income Level Formula to Calculate City A Social Equity Adjustment of 150% Very Low Income 30%-[(30%-25%)x1.5] = 22.5% In this example,22.5 percent of the jurisdiction’s total RHNA allocation would be assigned to the very low income category. This adjustment is lower than both its existing household income distribution (30 percent) and the existing county distribution (25 percent). The inverse occurs in higher income categories. Assuming 20 percent of a jurisdiction’s households are above moderate income while 25 percent of the county’s households are above moderate income, the jurisdiction will be assigned a distribution of 27.5 percent for above moderate income need. Household Income Level Formula to Calculate City A Social Equity Adjustment of 150% Above moderate income 20%-[(20%-25%)x1.5] = 27.5% B-27 15 If the adjustment was 100 percent a jurisdiction’s distribution would be exactly the same as the County’s distribution. Conceptually a 150 percent adjustment means that the City meets the County distribution and goes beyond that threshold by 50 percent, resulting in a higher or lower distribution than the County depending on what existing conditions are in the City. The higher the adjustment, the more noticeable the difference between the jurisdiction’s existing household income distribution and its revised distribution. The RHNA methodology recommends a minimum of 150 percent social equity adjustment with an additional 10, 20, or 30 percent added depending on whether the jurisdiction is considered a very low or very high resource area based on its Opportunity Index score. In 2015 the U.S. Department of Housing and Urban Development (HUD) developed a set of “Opportunity Indices” to help states and localities identify factors that contribute to fair housing issues in their region and comply with the federal Fair Housing Act.In late 2017, a Task Force convened by HCD and the California Tax Credit Allocation Committee (TCAC) released an “Opportunity mapping” tool based on these HUD indices to identify areas in California that can “offer low-income children and adults the best chance at economic advancement, high educational attainment, and good physical and mental health.”4 The TCAC and HCD Opportunity mapping tool includes a total of eleven (11) census-tract level indices to measure exposure to opportunity in local communities.The indices are based on measures of economic, environmental, and educational opportunities within communities.Regional patterns of segregation are also identified based on this tool.Below is a summary table of the 11 indices sorted by type: Economic Environment Education Poverty CalEnviroScreen 3.0 indicators Ozone PM2.5 Diesel PM Drinking water contaminates Pesticides Toxic releases from facilities Traffic density Cleanup sites Groundwater threats Hazardous waste Impaired water bodies Solid waste sites Math proficiency Adult education Reading proficiency Employment High school graduation rates Low-wage job proximity Student poverty rate Median home value 4 California Fair Housing Taskforce Revised opportunity Mapping Technology, Updated November 27, 20 18: https://www.treasurer.ca.gov/ctcac/opportunity/final-opportunity-mapping-methodology.pdf B-28 16 Based on its respective access to opportunity, each census tract is given a score that designates it under one of the following categories: High segregation & poverty Low resource Moderate resource High resource Highest resource Tract-level indices were summed to the jurisdictional-level by SCAG using area-weighted interpolation. Using 2013-2017 American Community Survey population data, SCAG determined the share of each jurisdiction’s population in each of these five categories.For example: Lowest Resource Very High Resource Opportunity Indicator Category High segregation & poverty Low resource Moderate resource High resource Highest resource City A Percentage of population 10%10%30%30%20% City B Percentage of population 90%5%5%0%0% City C Percentage of population 0%0%10%15%75% The recommended methodology determines high resource concentration using the “very high” resource area score. The recommended methodology determines “lowest” resource areas by combining the two lowest measures.In the above table, City B would be considered to have a much higher concentration of lower resource areas than City A.City C would be considered to have a much higher concentration of highest resource areas.5 High segregation & Poverty + Low Resource = Lowest Resource Highest Resource Jurisdictions that are identified as having between 70 and 100 percent of the population within a lowest or very high resource area are assigned an additional 10 and 30 percent social equity adjustment: 5 As a cross-reference, if City B has both a high job and transit accessibility it would be exempt from the redistribution of residual existing need from the RHNA methodology’s Step 2d because more than 50 percent of its population is within a very low resource area.On the other hand City A and City C, if they have a high job and transit access, would not be exempt from receiving regional residual need because they have only 20 percent and 0 percent of their respective population within a very low resource area. B-29 17 Concentration of population within very low or very high resource area Additional social equity adjustment 70-80%+10% 80-90%+20% 90-100%+30% In the example table, City B would receive an additional social equity adjustment of 30% because 95% of its population is within a lowest resource area (sum of high segregation & poverty and low resource measures).City C would receive an additional social equity adjustment of 10% because 75% of its population is within a very high resource area.City A would not receive a further adjustment because it does not have a high enough concentration of population within either the lowest or very high resource categories. Assigning a higher social equity adjustment based on Opportunity Indices will result in a higher percentage of affordable housing units to areas that have higher resources. Concurrently, it will assign a lower percentage of affordable housing in areas where they is already an overconcentration. Because Opportunity Indices consider factors such as access to lower wage jobs, poverty rates, and school proficiency, the social equity adjustment in the RHNA methodology will result in factors beyond simply household income distribution.This additional adjustment will help to adjust the disparity in access to fair housing across the region, furthering the AFFH objective required in State housing law. Once the social equity adjustment is determined, it is used to assign need to the four income categories. Final Adjustments On a regional level the final RHNA allocation plan must be the same as the regional determination, by income category, provided by HCD. The final RHNA methodology will result in slight differences, among income categories, since income categories are requi red to use county distributions as benchmarks and the HCD determination does not include county-level benchmarks. For this reason, after the initial income categories are determined for jurisdictions, SCAG will apply a normalization adjustment to the draft fsRHNA allocation to ensure that the regional total by income category is maintained. B-30 18 Additionally,in the event that a jurisdiction receives an allocation of zero (0) units under the RHNA methodology a minimum RHNA allocation of eight (8) units would be assigned. Government Code Section 65584.04(m)(2) requires that the final RHNA allocation plan ensure that each jurisdiction receive an allocation of units for low-and very low income households. Under these circumstances, SCAG will assign those jurisdictions a minimum of four (4) units in the very low income category and four (4) units in the low income category for a draft RHNA allocation of eight (8) units. B-31 19 Meeting the Objectives of RHNA Government Code Section 65584.04(a) requires that the RHNA methodology furthers the five objectives of the Regional Housing Needs Assessment: (1)Increasing the housing supply and the mix of housing types, tenure, and affordability in all cities and counties within the region in an equitable manner, which shall result in each jurisdiction receiving an allocation of units for low-and very low income households. (2)Promoting infill development and socioeconomic equity, the protection of environmental and agricultural resources, the encouragement of efficient development patterns, and the achievement of the region’s greenhouse gas reductions targets provided by the State Air Resources Board pursuant to Section 65080. (3)Promoting an improved intraregional relationship between jobs and housing, including an improved balance between the number of low-wage jobs and the number of housing units affordable to low-wage workers in each jurisdiction. (4)Allocating a lower proportion of housing need to an income category when a jurisdiction already has a disproportionately high share of households in that income category, as compared to the countywide distribution of households in that category from the most recent American Community Survey. (5)Affirmatively furthering fair housing. (e)For purposes of this section, “affirmatively furthering fair housing” means taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws. On January 13, 2020, HCD completed its review of SCAG’s draft RHNA methodology and found that it furthers the five statutory objectives of RHNA. B-32 20 Local Planning Factors As part of the development of the proposed RHNA methodology, SCAG must conduct a survey of planning factors that identify local conditions and explain how each of the listed factors are incorporated into the RHNA methodology.This survey, also known as the “Local Planning Factor” survey, is a specific requirement for the RHNA methodology process and is separate from the local review process of the Growth Forecast used as the basis for determining future growth in the Connect SoCal plan. The survey was distributed to all SCAG jurisdictions in mid-March 2019 with a posted due date of May 30, 2019.One-hundred and nine (109)jurisdictions, or approximately 55%, submitted a response to the local planning factor survey.To facilitate the conversation about local planning factors,between October 2017 and October 2018 SCAG included these factors as part of the local input survey and surveyed a binary yes/no as to whether these factors impacted jurisdictions. The formal local planning factor survey was pre-populated with the pre-survey answers to help facilitate survey response.The full packet of local planning factor surveys can be downloaded at www.scag.ca.gov/rhna. SCAG staff reviewed each of the submitted surveys to analyze planning factors opportunities and constraints across the region. The collected information was used to ensure that the methodology will equitably distribute housing need and that underlying challenges as a region are collectively addressed. (1)Each member jurisdiction’s existing and projected jobs and housing relationship.This shall include an estimate, based on readily available data, of the number of low-wage jobs within the jurisdiction and how many housing units within the jurisdiction are affordable to low- wage workers as well as an estimate, based on readily available data, of projected job growth and projected household growth by income level within each member jurisdiction during the planning period. The RHNA methodology directly considers job accessibility and determines a portion of housing need for each jurisdiction based on this factor. Using transportation analysis zones as a basis, the percentage of jobs accessible within a 30 minute drive for a jurisdiction’s population is determined and then weighted based on the jurisdiction’s population size to determine individual shares of regional jobs accessible. Based on a review of other potential mechanisms to factor in jobs into the RHNA methodology, SCAG staff has determined that this mechanism most closely aligns with the goals of State housing law. A supplemental analysis of the impact of the draft RHNA methodology’s impact on jobs - housing relationships and low-wage jobs-housing relationships was provided to the Regional Council on February 5, 2020. B-33 21 (2)The opportunities and constraints to development of additional housing in each member jurisdiction, including all of the following: (A)Lack of capacity for sewer or water service due to federal or state laws, regulations or regulatory actions, or supply and distribution decisions made by a sewer or water service provider other than the local jurisdiction that preclude the jurisdiction from providing necessary infrastructure for additional development during the planning period. (B)The availability of land suitable for urban development or for conversion to residential use, the availability of underutilized land, and opportunities for infill development and increased residential densities. The council of governments may not limit its consideration of suitable housing sites or land suitable for urban development to existing zoning ordinances and land use restrictions of a locality, but shall consider the potential for increased residential development under alternative zoning ordinances and land use restrictions. The determination of available land suitable for urban development may exclude lands where the Federal Emergency Management Agency (FEMA) or the Department of Water Resources has determined that the flood management infrastructure designed to protect that land is not adequate to avoid the risk of flooding. (C)Lands preserved or protected from urban development under existing federal or state programs, or both, designed to protect open space, farmland, environmental habitats, and natural resources on a long-term basis, including land zoned or designated for agricultural protection or preservation that is subject to a local ballot measure that was approved by the voters of that jurisdiction that prohibits or restricts conversion to non- agricultural uses. (D)County policies to preserve prime agricultural land, as defined pursuant to Section 56064, within an unincorporated and land within an unincorporated area zoned or designated for agricultural protection or preservation that is subject to a local ballot measure that was approved by the voters of that jurisdiction that prohibits or restricts its conversion to non-agricultural uses. Consideration of the above planning factors have been incorporated into the Growth Forecast process and results by way of analysis of aerial land use data, general plan, parcel level property data, open space, agricultural land and resource areas, and forecast surveys distributed to local jurisdictions. The bottom-up Local Input and Envisioning Process, which is used as the basis for both RHNA and SCAG’s Connect SoCal (Regional Transportation Plan/Sustainable Communities Strategy) started with an extensive outreach effort involving all local jurisdictions regarding their land use and development constraints. All l ocal jurisdictions were invited to provide SCAG their respective growth perspective and input. The RHNA methodology directly incorporates local input on projected household growth, which should be a direct reflection of local planning factors such as lack of water or sewer capacity, FEMA-designated flood sites, and open space and agricultural land protection. Prior RHNA cycles did not promote direct linkage to transit proximity and the methodology encourages more efficient land use patterns by utilizing existing as well as future planned transportation infrastructure and preserves areas designated as open space and agricultural B-34 22 lands.In particular the inclusion of transit proximity places an increased emphasis on infill opportunities and areas that are more likely to support higher residential densities. (3)The distribution of household growth assumed for purposes of a comparable period of regional transportation plans and opportunities to maximize the use of public transportation and existing transportation infrastructure. As indicated above, the Growth Forecast used as the basis for the Connect SoCal Plan is also used as the basis for projected household growth in the RHNA methodology.The weighting of a jurisdiction’s population share within an HQTA directly maximizes the use of public transportation and existing transportation infrastructure. (4)Agreements between a county and cities in a county to direct growth toward incorporated areas of the county, and land within an unincorporated area zoned or designated for agricultural protection or preservation that is subject to a local ballot measure that was approved by the voters of the jurisdiction that prohibits or restricts conversion to nonagricultural uses. This planning factor has been identified through the local input process and local planning factor survey collection as affecting growth within Ventura County. The urban growth boundary, known as Save Our Agricultural Resources (SOAR), is an agreement between the County of Ventura and its incorporated cities to direct growth toward incorporated areas, and was recently extended to 2050. Based on the input collected, SCAG staff has concluded that this factor is already reflected in the RHNA methodology since it was considered and incorporated into the local input submitted by jurisdictions. (5)The loss of units contained in assisted housing developments, as defined in paragraph (9) of subdivision (a) of Section 65583 that changed to non-low-income use through mortgage prepayment, subsidy contract expirations, or termination of use restrictions. The conversion of low income units into non-low income units is not explicitly addressed through the distribution of existing and projected housing need. Staff has provided statistics in the RHNA methodology appendix on the potential loss of units in assisted housing developments. The loss of such units affects the proportion of affordable housing needed within a community and the region as a whole. Local planning factor survey responses indicate that the impact of this factor is not regionally uniform. Many jurisdictions that replied some units are at-risk for losing their affordability status in the near future have indicated that they are currently reviewing and developing local resources to address the potential loss. Based on this, SCAG staff has determined that at-risk units are best addressed through providing data on these units as part of the RHNA methodology and giving local jurisdictions the discretion to address this factor and adequately plan for any at-risk unit loss in preparing their housing elements. B-35 23 (6)The percentage of existing households at each of the income levels listed in subdivision (e) of Section 65584 that are paying more than 30 percent and more than 50 percent of their income in rent. An evaluation of survey responses reveals that cost-burdened households, or those who pay at least 30 percent of their household income on housing costs, is a prevalent problem throughout the region. The RHNA methodology also includes in its appendix data from the ACS 2013-2017 on cost-burdened statistics for households who pay more than 30 percent of their income on housing by owner and renter, and for renter households who pay 50 percent or more of their income on housing. The general trend is seen in both high and low income communities, suggesting that in most of the SCAG region high housing costs are a problem for all income levels. Nonetheless a large number of jurisdictions indicated in the survey that overpaying for housing costs disproportionately impacts lower income households in comparison to higher income households.This issue is exacerbated in areas where there is not enough affordable housing available, particularly in higher income areas.For this reason, the RHNA methodology incorporates not only a 150 percent social equity adjustment, but also uses the TCAC Opportunity Indices to distribute the RHNA allocation into the four income categories in areas identified as being the highest resource areas of the region. The Opportunity Indices include a proximity to jobs indicator, particularly for low -wage jobs, which identifies areas with a high geographical mismatch between low wage jobs and affordable housing. Increasing affordable housing supply in these areas can help alleviate cost-burden experienced by local lower income households because more affordable options will be available. The reason for using social equity adjustment and opportunity indices to address cost- burden households rather than assigning total need is because it is impossible to determine through the methodology how and why the cost-burden is occurring in a particular jurisdiction. Cost-burden is a symptom of housing need and not its cause. A jurisdiction might permit a high number of units but still experiences cost-burden because other jurisdictions restrict residential permitting. Or, a jurisdiction might have a large number of owner-occupied housing units that command premium pricing, causing cost-burden for high income households and especially on lower income households due to high rents from high land costs. An analysis of existing need indicators by jurisdiction, which is part of the RHNA methodology data appendix,does not reveal a single strong trend to base a distribution methodology for cost-burden and thus the RHNA methodology distributes this existing need indicator regionally using social equity adjustment and Opportunity Indices rather than to where the indicators exist. (7)The rate of overcrowding. An evaluation of survey responses indicates that there is a variety of trends in overcrowding throughout the region. Overcrowding is defined as more than 1.01 persons per room (not bedroom) in a housing unit. Some jurisdictions have responded that overcrowding is a severe issue, particularly for lower income and/or renter households, while others have B-36 24 responded that overcrowding is not an issue at all. At the regional determination level HCD applied an overcrowding component, which is a new requirement for the 6th RHNA cycle. Because Similar to cost-burden,overcrowding is caused by an accumulated housing supply deficit and is considered an indicator of existing housing need. The reason for not assigning need directly based on this indicator is because it is impossible to determine through the methodology how and why the overcrowding is occurring in a particular jurisdiction. A jurisdiction that has an overcrowding rate higher than the regional average might be issuing more residential permits than the regional average while the surrounding jurisdictions might not have overcrowding issues but issue fewer permits than the regional average. An analysis of existing need indicators by jurisdiction, which is part of the RHNA methodology data appendix, does not reveal a single strong trend to base a distribution methodology for overcrowding and thus the methodology distributes this existing need indicator regionally rather than to where the indicators exist. While not specifically surveyed, several jurisdictions have indicated that density has affected their jurisdictions and have requested that the methodology should consider this as a factor. While density is not directly addressed as a factor, the social equity adjustment indirectly addresses density particularly for lower income jurisdictions. In housing elements, jurisdictions most demonstrate that a site is affordable for lower income households by applying a “default density”, defined in State housing law as either 20 or 30 dwelling units per acre depending on geography and population. In other words, a site that is zoned at 30 dwelling units per acre is automatically considered as meeting the zoning need for a low income household. However there is not a corresponding default density for above moderate income zoning. Assigning a lower percentage of lower income households than existing conditions indirectly reduces future density since the jurisdiction can zone at lower densities if it so chooses. While this result does not apply to higher income jurisdictions, directing growth toward less dense areas for the explicit purpose of reducing density is in direct contradiction to the objectives of state housing law, especially for promoting infill development and socioeconomic equity, the protection of environmental and agricultural resources, the encouragement of efficient development pattern. (8)The housing needs of farmworkers. The RHNA methodology appendix provides data on agricultural jobs by jurisdiction as well as workers by place of residence.The survey responses indicate that most jurisdictions do not have agricultural land or only have small agricultural operations that do not necessarily require designated farmworker housing. For the geographically concentrated areas that do have farmworker housing, responses indicate that many jurisdictions already permit or are working to allow farmworker housing by-right in the same manner as other agricultural uses are allowed.Jurisdictions that are affected by the housing needs of farmworkers can be assumed to have considered this local factor when submitting feedback on SCAG’s Growth B-37 25 Forecast. A number of jurisdictions reiterated their approach in the local planning factor survey response. Similar to at-risk units, the RHNA methodology does not include a distribution mechanism to distribute farmworker housing. However, SCAG has provided data in its RHNA methodology appendix related to this factor and encourages local jurisdictions to adequately plan for this need in their housing elements. (9)The housing needs generated by the presence of a private university or a campus of the California State University or the University of California within any member jurisdiction. SCAG staff has prepared a map outlining the location of four-year private and public universities in the SCAG region along with enrollment numbers from the California School Campus Database (2018). Based on an evaluation of survey responses that indicated a presence of a university within their boundaries, SCAG staff concludes that most housing needs related to university enrollment are addressed and met by dormitories provided by the institution both on-and off-campus. No jurisdiction expressed concern in the surveys about student housing needs due to the presence of a university within their jurisdiction. However, some jurisdictions have indicated outside of the survey that off-campus student housing is an important issue within their jurisdictions and are in dialogue with HCD to determine how this type of housing can be integrated into their local housing elements. Because this circumstance applies to only a handful of jurisdictions, it is recommended that housing needs generated by a public or private university be addressed in the jurisdiction’s housing element if it is applicable. (10)The loss of units during a state of emergency that was declared by the Governor pursuant to the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2), during the planning period immediately preceding the relevant revision pursuant to Section 65588 that have yet to be rebuilt or replaced at the time of the analysis. Replacement need, defined as units that have been demolished but not yet replaced, are included as a component of projected housing need in the RHNA methodology. To determine this number, HCD reviewed historical demolition permit data between 2008 and 2017 (reporting years 2009 and 2018)as reported by the California Department of Finance (DOF), and assigned SCAG a regional replacement need of 0.5% of projected and existing need, or 34,010 units. There have been several states of emergency declared for fires in the SCAG region that have destroyed residential units, as indicated by several jurisdictions in their local planning factor survey responses.Survey responses indicate that a total of 1,785 units have been lost regionally from fires occurring after January 1, 2018.Units lost from fires that occurred prior to January 1, 2018, have already been counted in the replacement need for the 6th RHNA cycle. B-38 26 In spring 2019, SCAG conducted a replacement need survey with jurisdictions to determine units that have been replaced on the site of demolished units reported.Region wide 23,545 of the region’s demolished units still needed to be replaced based on survey results.The sum of the number of units needing to be replaced based on the replacement need survey and the number of units reported as lost due to recent states of emergency, or 25,330,is lower than HCD’s regional determination of replacement need of 34,010. One can reasonably conclude that units lost based on this planning factor are already included in the regional total and distributed, and thus an extra mechanism to distribute RHNA based on this factor is not necessary to meet the loss of units. (11)The region’s greenhouse gas emissions targets provided by the State Air Resources Board pursuant to Section 65080. An assessment of survey responses indicate that a number of jurisdictions in the SCAG region are developing efforts for more efficient land use patterns and zoning that would result in greenhouse gas emissions. These include a mix of high-density housing types, neighborhood based mixed-use zoning, climate action plans, and other local efforts to reduce greenhouse gas emissions at the regional level. The RHNA methodology includes a distribution of 50 percent of regional existing need based on a jurisdiction’s share of regional population within an HQTA. The linkage between housing planning and transportation planning will allow for a better alignment between the RHNA allocation plan and the Connect SoCal RTP/SCS. It will promote more efficient development land use patterns, encourage transit use, and importantly reduce greenhouse gas emissions. This will in turn support local efforts already underway to support the reduction of regional greenhouse gas emissions. Moreover the RHNA methodology includes the Growth Forecast reviewed with local input as a distribution component, particularly for projected housing need. Local input is a basis for SCAG’s Connect SoCal Plan, which addresses greenhouse gas emissions at the regional level since it is used to reach the State Air Resources Board regional targets.An analysis of the consistency between the RHNA and Connect SoCal Plan is included as an attachment to this document. (12)Any other factors adopted by the council of governments that further the objectives listed in subdivision (d) of Section 65584, provided that the council of governments specifies which of the objectives each additional factor is necessary to further. The council of governments may include additional factors unrelated to furthering the objectives listed in subdivision (d) of Section 65584 so long as the additional factors do not undermine the objectives listed in subdivision (d) of Section 65584 and are applied equally across all household income levels as described in subdivision (f) of Section 65584 and the council of governments makes a finding that the factor is necessary to address significant health and safety conditions. No other planning factors were adopted by SCAG to review as a specific local planning factor. B-39 27 Affirmatively Furthering Fair Housing (AFFH) Among a number of changes due to recent RHNA legislation is the inclusion of affirmatively furthering fair housing (AFFH) as both an addition to the listed State housing objectives of Government Section 65588 and to the requirements of RHNA methodology as listed in Government Code Section 65584.04(b)and (c), which includes surveying jurisdictions on AFFH issues and strategies and developing a regional analysis of findings from the survey. AFFH Survey The AFFH survey accompanied the required local planning factor survey and was sent to all SCAG jurisdictions in mid-March 2019 with a posted due date of May 30, 2019.Ninety (90)of SCAG’s 197 jurisdictions completed the AFFH survey, though some jurisdictions indicated that they would not be submitting the AFFH survey due to various reasons.The full packet of surveys submitted prior to the development of the proposed methodology packet can be downloaded at www.scag.ca.gov/rhna. Jurisdictions were asked various questions regarding fair housing issues, strategies and actions. These questions included: Describe demographic trends and patterns in your jurisdiction over the past ten yea rs. Do any groups experience disproportionate housing needs? To what extent do the following factors impact your jurisdiction by contributing to segregated housing patterns or racially or ethnically‐concentrated areas of poverty? To what extent do the following acts as determinants for fair housing and compliance issues in your jurisdiction? What are your public outreach strategies to reach disadvantaged communities? What steps has your jurisdiction undertaken to overcome historical patterns of segregation or remove barriers to equal housing opportunity? The survey questions were based on the U.S. Department of Housing and Urban Development (HUD) Analysis of Impediments to Fair Housing Choice survey that each jurisdiction, or their designated local Housing Authority,must submit to HUD to receive Community Development Block Grant (CDBG) funds. For the AFFH survey, jurisdictions were encouraged to review their HUD-submitted surveys to obtain data and information that would be useful for submitting the AFFH survey. Pursuant to Government Code Section 65584.04(c),the following is an analysis of the survey results. Themes Several demographic themes emerged throughout the SCAG region based on submitted AFFH surveys. A high number of jurisdictions indicated that their senior populations are increasing and many indicated that the fixed income typically associated with senior populations might have an effect on housing affordability. Other jurisdictions have experienced an increase in minority populations, especially among Latino and Asian groups. There is also a trend of the loss of young adults (typically younger than 30) and a decrease in the number of families with children in more suburban locations due to the rise in housing costs. B-40 28 Barriers There was a wide variety of barriers reported in the AFFH survey, though a number of jurisdictions indicated they did not have any reportable barriers to fair access to housing. Throughout the SCAG region, communities of all types reported that community opposition to all types of housing was an impediment to housing development. Sometimes the opposition occurred in existing low income and minority areas. Some jurisdictions indicated that high opportunity resource areas currently do not have a lot of affordable housing or Section 8 voucher units while at the same time, these areas have a fundamental misunderstanding of who affordable housing serves and what affordable housing buildings actually look like. Based on these responses, it appears that community opposition to housing, especially affordable housing and the associated stigma with affordable housing,is a prevalent barrier throughout the SCAG region. Other barriers to access to fair housing are caused by high land and development costs since they contribute to very few affordable housing projects being proposed in higher opportunity areas. The high cost of housing also limits access to fair housing and is a significant contributing factor to disparities in access to opportunity. Increasing property values were reported across the region and some jurisdictions indicated that they are occurring in existing affordable neighborhoods a nd can contribute to gentrification and displacement. Additionally, during the economic downturn a large number of Black and Latino homeowners were disproportionately impacted by predatory lending practices and therefore entered foreclosure in higher numbers than other populations. Other barriers reported in the AFFH survey include the lack of funding available to develop housing after the dissolution of redevelopment agencies in 2012. Moreover, some jurisdictions indicated that the lack of regional cooperation contributes to segregation. Strategies to Overcome Barriers All submitted AFFH surveys indicated that their respective jurisdictions employed at least a few strategies to overcome barriers to access fair housing. These strategies ranged from loca l planning and zoning tools to funding assistance to innovative outreach strategies. In regard to planning and zoning tools, a number of jurisdictions indicated they have adopted inclusionary zoning ordinances or an in-lieu fee to increase the number of affordable units within their jurisdictions. Others have adopted an accessory dwelling unit (ADU) ordinance with accommodating standards to allow for higher densities in existing single-family zone neighborhoods. A few jurisdictions indicated that they have adopted an unpermitted dwelling unit (UDU) ordinance, which legalizes unpermitted units instead of removing them provided that the units meet health and safety codes. In addition to ADU and UDU ordinances, some jurisdictions have also adopted density bonuses, which allow a project to exceed existing density standards if it meets certain affordability requirements. Some responses in the survey indicate that the establishment of some of these tools and standards have reduced community opposition to projects.In addition, some jurisdictions responded that they have reduced review times for residential permit approvals and reduced or waived fees associated with affordable housing development. To combat gentrification and displacement, some jurisdictions have established rent-stabilization ordinances while others have established a rent registry so that the jurisdiction can monitor rents B-41 29 and landlord practices. Some jurisdictions have adopted relocation plans and others are actively seeking to extend affordability covenants for those that are expiring. In regard to funding, SCAG jurisdictions provide a wide variety of support to increase the supply of affordable housing and increase access to fair housing. A number of jurisdictions provide citywide rental assistance programs for low income households and some indicated that their programs include favorable home purchasing options. Some of these programs also encourage developers to utilize the local first-time homebuyer assistance program to specifically qualify lower income applicants. Other jurisdictions indicate that they manage housing improvement programs to ensure that their existing affordable housing stock is well maintained. Some AFFH surveys describe local multiple rental assistance programs, including Section 8 Housing Choice vouchers and fina ncial support of tenant/landlord arbitration or mediation services. Some jurisdictions indicated that they have focused on mobile homes as a way to increase access to fair housing. There are programs described that assist households that live in dilapidated and unsafe mobile homes in unpermitted mobile home parks by allowing the household to trade in their mobile home in exchange for a new one in a permitted mobile park. Other programs include rental assistance specifically for households who live in mobile homes. In regard to community outreach, a large number of jurisdictions in the SCAG region have established or are seeking to establish innovative partnerships to increase access to fair housing and reduce existing barriers.Many jurisdictions work with fair housing advocacy groups such as the Housing Rights Center, which provide community workshops, counseling, and tenant-landlord mediation services. Other jurisdictions have established landlord-tenant commissions to resolve housing disputes and provide services to individuals with limited resources. Some jurisdictions have partnered with advocacy groups, such as the League of United Latin American Citizens (LULAC), to hold community-based workshops featuring simultaneous multi-lingual translations. Other innovative partnerships created by jurisdictions include those with local schools and school districts and public health institutions to engage disadvantaged groups and provide services to areas with limited resources. A large number of jurisdictions have also indicated that they have increased their social media presence to reach more communities. Others have also increased their multi-lingual outreach efforts to ensure that limited-English proficiency populations have the opportunity to engage in local fair housing efforts. Based on the AFFH surveys submitted by jurisdictions, while there is a wide range of barriers to fair housing opportunities in the SCAG region there is also a wide range of strategies to help overcome these barriers at the local level. B-42 30 Meeting AFFH Objectives on a Regional Basis To work towards the objective of AFFH, several benchmarks were reviewed as potential indicators of increasing access to fair housing and removing barriers that led to historical segregation patterns. Opportunity Indices The objectives of affirmatively furthering fair housing are to not only overcome patterns of segregation, but to also increase access to opportunity for historically marginalized groups, particularly in racially and ethnically concentrated areas of poverty. In 2015 the U.S. Department of Housing and Urban Development (HUD) developed a set of indices, known as “Opportunity Indices” to help states and jurisdictions identify factors that contribute to fair housing issues in their region and comply with the federal Fair Housing Act. In 2015 the U.S. Department of Housing and Urban Development (HUD) developed a set of indices, known as “Opportunity Indices” to help states and jurisdictions identify factors that contribute to fair housing issues in their region and comply with the federal Fair Housing Act. In late 2017, a Task Force convened by HCD and the California Tax Credit Allocation Committee (TCAC) released an “Opportunity mapping” tool based on these HUD indices to identify areas in California that can “offer low-income children and adults the best chance at economic advancement, high educational attainment, and good physical and mental health.” The TCAC and HCD Opportunity mapping tool includes a total of eleven (11) census-tract level indices to measure exposure to opportunity in local communities.Regional patterns of segregation can be identified based on this tool.The indices are based on indicators such as poverty levels, low wage job proximity, pollution, math and reading proficiency.Below is a summary table of the 11 indices sorted by type: Economic Environment Education Poverty CalEnviroScreen 3.0 indicators Ozone PM2.5 Diesel PM Drinking water contaminates Pesticides Toxic releases from facilities Traffic density Cleanup sites Groundwater threats Hazardous waste Impaired water bodies Solid waste sites Math proficiency Adult education Reading proficiency Employment High school graduation rates Low-wage job proximity Student poverty rate Median home value To further the objectives of AFFH, SCAG utilizes the Opportunity indices tool at multiple points in the RHNA methodology. Jurisdictions that have the highest concentration of population in low resource areas are exempted from receiving regional residual existing need, which will result in fewer units B-43 31 assigned to areas identified as having high rates of poverty and racial segregation. Additionally, jurisdictions with the highest concentration of population within highest resource areas will receive a higher social equity adjustment, which will result in more access to opportunity for lower income households. Public Engagement The development of a comprehensive RHNA methodology requires comprehensive public engagement. Government Code Section 65584.04(d) requires at least one public hearing to receive oral and written comments on the proposed methodology, and also requires SCAG to distribute the proposed methodology to all jurisdictions and requesting stakeholders, along with publishing the proposed methodology on the SCAG website.The official public comment period on the proposed RHNA methodology began on August 1, 2019 after Regional Council action and concluded on September 13, 2019. To maximize public engagement opportunities, SCAG staff hosted four public workshops to receive verbal and written comment on the proposed RHNA methodology and an additional public information session in August 2019: August 15,6-8 p.m.Public Workshop, Los Angeles (View-only webcasting available) August 20, 1-3 p.m. Public Workshop, Los Angeles (Videoconference at SCAG regional offices and View-only webcasting available) August 22, 1-3 p.m., Public Workshop, Irvine August 27, 6-8 p.m., Public Workshop, San Bernardino (View-only webcasting available) August 29, 1-3pm Public Information Session, Santa Clarita Approximately 250 people attended the workshops in-person, at videoconference locations, or via webcast. Over 35 individual verbal comments were shared over the four workshops. To increase participation from individuals and stakeholders that are unable to participate during regular working hours,two of the public workshops were be held in the evening hours. One of the workshops was held in the Inland Empire. SCAG will worked with its Environmental Justice Working Group (EJWG) and local stakeholder gro ups to reach out to their respective contacts in order to maximize outreach to groups representing low income, minority, and other traditionally disadvantaged populations. Almost 250 written comments were submitted by the comment deadline and included a wide range of stakeholders. Approximately 50 percent were from local jurisdictions and subregions, and the other 50 percent were submitted by advocacy organizations, industry groups, residents and resident groups, and the general public. All of the comments received, both verbal and written, were reviewed by SCAG staff, and were used as the basis for developing the RHNA methodology. The increased involvement by the number of jurisdictions and stakeholders beyond the municipal level compared to prior RHNA cycles indicate an increased level of interest by the public in the housing crisis and its solutions, and the efforts of SCAG to meet these interests. As part of its housing B-44 32 program initiatives, SCAG will continue to reach out to not only jurisdictions, but to advocacy groups and traditionally disadvantaged communities that have not historically participated in the RHNA process and regional housing planning. These efforts will be expanded beyond the RHNA program and will be encompassed into addressing the housing crisis at the regional level and ensuring that those at the local and community level can be part of solutions to the housing crisis. Additional RHNA Methodology Supporting Materials Please note that additional supporting materials for the RHNA Methodology have been posted on SCAG’s RHNA website at www.scag.ca.gov/rhna including Data Appendix, Local Planning Factor Survey Responses and Affirmatively Furthering Fair Housing Survey Responses. B-45 State of California GOVERNMENT CODE Section 65080 65080. (a) Each transportation planning agency designated under Section 29532 or 29532.1 shall prepare and adopt a regional transportation plan directed at achieving a coordinated and balanced regional transportation system, including, but not limited to, mass transportation, highway, railroad, maritime, bicycle, pedestrian, goods movement, and aviation facilities and services. The plan shall be action-oriented and pragmatic, considering both the short-term and long-term future, and shall present clear, concise policy guidance to local and state officials. The regional transportation plan shall consider factors specified in Section 134 of Title 23 of the United States Code. Each transportation planning agency shall consider and incorporate, as appropriate, the transportation plans of cities, counties, districts, private organizations, and state and federal agencies. (b) The regional transportation plan shall be an internally consistent document and shall include all of the following: (1) A policy element that describes the transportation issues in the region, identifies and quantifies regional needs, and describes the desired short-range and long-range transportation goals, and pragmatic objective and policy statements. The objective and policy statements shall be consistent with the funding estimates of the financial element. The policy element of transportation planning agencies with populations that exceed 200,000 persons may quantify a set of indicators including, but not limited to, all of the following: (A) Measures of mobility and traffic congestion, including, but not limited to, daily vehicle hours of delay per capita and vehicle miles traveled per capita. (B) Measures of road and bridge maintenance and rehabilitation needs, including, but not limited to, roadway pavement and bridge conditions. (C) Measures of means of travel, including, but not limited to, percentage share of all trips (work and nonwork) made by all of the following: (i) Single occupant vehicle. (ii) Multiple occupant vehicle or carpool. (iii) Public transit including commuter rail and intercity rail. (iv) Walking. (v) Bicycling. (D) Measures of safety and security, including, but not limited to, total injuries and fatalities assigned to each of the modes set forth in subparagraph (C). (E) Measures of equity and accessibility, including, but not limited to, percentage of the population served by frequent and reliable public transit, with a breakdown by B-46 income bracket, and percentage of all jobs accessible by frequent and reliable public transit service, with a breakdown by income bracket. (F) The requirements of this section may be met using existing sources of information. No additional traffic counts, household surveys, or other sources of data shall be required. (2) A sustainable communities strategy prepared by each metropolitan planning organization as follows: (A) No later than September 30, 2010, the State Air Resources Board shall provide each affected region with greenhouse gas emission reduction targets for the automobile and light truck sector for 2020 and 2035, respectively. (i) No later than January 31, 2009, the state board shall appoint a Regional Targets Advisory Committee to recommend factors to be considered and methodologies to be used for setting greenhouse gas emission reduction targets for the affected regions. The committee shall be composed of representatives of the metropolitan planning organizations, affected air districts, the League of California Cities, the California State Association of Counties, local transportation agencies, and members of the public, including homebuilders, environmental organizations, planning organizations, environmental justice organizations, affordable housing organizations, and others. The advisory committee shall transmit a report with its recommendations to the state board no later than September 30, 2009. In recommending factors to be considered and methodologies to be used, the advisory committee may consider any relevant issues, including, but not limited to, data needs, modeling techniques, growth forecasts, the impacts of regional jobs-housing balance on interregional travel and greenhouse gas emissions, economic and demographic trends, the magnitude of greenhouse gas reduction benefits from a variety of land use and transportation strategies, and appropriate methods to describe regional targets and to monitor performance in attaining those targets. The state board shall consider the report before setting the targets. (ii) Before setting the targets for a region, the state board shall exchange technical information with the metropolitan planning organization and the affected air district. The metropolitan planning organization may recommend a target for the region. The metropolitan planning organization shall hold at least one public workshop within the region after receipt of the report from the advisory committee. The state board shall release draft targets for each region no later than June 30, 2010. (iii) In establishing these targets, the state board shall take into account greenhouse gas emission reductions that will be achieved by improved vehicle emission standards, changes in fuel composition, and other measures it has approved that will reduce greenhouse gas emissions in the affected regions, and prospective measures the state board plans to adopt to reduce greenhouse gas emissions from other greenhouse gas emission sources as that term is defined in subdivision (i) of Section 38505 of the Health and Safety Code and consistent with the regulations promulgated pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code), including Section 38566 of the Health and Safety Code. B-47 (iv) The state board shall update the regional greenhouse gas emission reduction targets every eight years consistent with each metropolitan planning organization’s timeframe for updating its regional transportation plan under federal law until 2050. The state board may revise the targets every four years based on changes in the factors considered under clause (iii). The state board shall exchange technical information with the Department of Transportation, metropolitan planning organizations, local governments, and affected air districts and engage in a consultative process with public and private stakeholders, before updating these targets. (v) The greenhouse gas emission reduction targets may be expressed in gross tons, tons per capita, tons per household, or in any other metric deemed appropriate by the state board. (B) Each metropolitan planning organization shall prepare a sustainable communities strategy, subject to the requirements of Part 450 of Title 23 of, and Part 93 of Title 40 of, the Code of Federal Regulations, including the requirement to use the most recent planning assumptions considering local general plans and other factors. The sustainable communities strategy shall (i) identify the general location of uses, residential densities, and building intensities within the region, (ii) identify areas within the region sufficient to house all the population of the region, including all economic segments of the population, over the course of the planning period of the regional transportation plan taking into account net migration into the region, population growth, household formation and employment growth, (iii) identify areas within the region sufficient to house an eight-year projection of the regional housing need for the region pursuant to Section 65584, (iv) identify a transportation network to service the transportation needs of the region, (v) gather and consider the best practically available scientific information regarding resource areas and farmland in the region as defined in subdivisions (a) and (b) of Section 65080.01, (vi) consider the state housing goals specified in Sections 65580 and 65581, (vii) set forth a forecasted development pattern for the region, which, when integrated with the transportation network, and other transportation measures and policies, will reduce the greenhouse gas emissions from automobiles and light trucks to achieve, if there is a feasible way to do so, the greenhouse gas emission reduction targets approved by the state board, and (viii) allow the regional transportation plan to comply with Section 176 of the federal Clean Air Act (42 U.S.C. Sec. 7506). (C) (i) Within the jurisdiction of the Metropolitan Transportation Commission, as defined by Section 66502, the Association of Bay Area Governments shall be responsible for clauses (i), (ii), (iii), (v), and (vi) of subparagraph (B); the Metropolitan Transportation Commission shall be responsible for clauses (iv) and (viii) of subparagraph (B); and the Association of Bay Area Governments and the Metropolitan Transportation Commission shall jointly be responsible for clause (vii) of subparagraph (B). (ii) Within the jurisdiction of the Tahoe Regional Planning Agency, as defined in Sections 66800 and 66801, the Tahoe Metropolitan Planning Organization shall use the Regional Plan for the Lake Tahoe Region as the sustainable community strategy, provided that it complies with clauses (vii) and (viii) of subparagraph (B). B-48 (D) In the region served by the Southern California Association of Governments, a subregional council of governments and the county transportation commission may work together to propose the sustainable communities strategy and an alternative planning strategy, if one is prepared pursuant to subparagraph (I), for that subregional area. The metropolitan planning organization may adopt a framework for a subregional sustainable communities strategy or a subregional alternative planning strategy to address the intraregional land use, transportation, economic, air quality, and climate policy relationships. The metropolitan planning organization shall include the subregional sustainable communities strategy for that subregion in the regional sustainable communities strategy to the extent consistent with this section and federal law and approve the subregional alternative planning strategy, if one is prepared pursuant to subparagraph (I), for that subregional area to the extent consistent with this section. The metropolitan planning organization shall develop overall guidelines, create public participation plans pursuant to subparagraph (F), ensure coordination, resolve conflicts, make sure that the overall plan complies with applicable legal requirements, and adopt the plan for the region. (E) The metropolitan planning organization shall conduct at least two informational meetings in each county within the region for members of the board of supervisors and city councils on the sustainable communities strategy and alternative planning strategy, if any. The metropolitan planning organization may conduct only one informational meeting if it is attended by representatives of the county board of supervisors and city council members representing a majority of the cities representing a majority of the population in the incorporated areas of that county. Notice of the meeting or meetings shall be sent to the clerk of the board of supervisors and to each city clerk. The purpose of the meeting or meetings shall be to discuss the sustainable communities strategy and the alternative planning strategy, if any, including the key land use and planning assumptions to the members of the board of supervisors and the city council members in that county and to solicit and consider their input and recommendations. (F) Each metropolitan planning organization shall adopt a public participation plan, for development of the sustainable communities strategy and an alternative planning strategy, if any, that includes all of the following: (i) Outreach efforts to encourage the active participation of a broad range of stakeholder groups in the planning process, consistent with the agency’s adopted Federal Public Participation Plan, including, but not limited to, affordable housing advocates, transportation advocates, neighborhood and community groups, environmental advocates, home builder representatives, broad-based business organizations, landowners, commercial property interests, and homeowner associations. (ii) Consultation with congestion management agencies, transportation agencies, and transportation commissions. (iii) Workshops throughout the region to provide the public with the information and tools necessary to provide a clear understanding of the issues and policy choices. At least one workshop shall be held in each county in the region. For counties with a population greater than 500,000, at least three workshops shall be held. Each B-49 workshop, to the extent practicable, shall include urban simulation computer modeling to create visual representations of the sustainable communities strategy and the alternative planning strategy. (iv) Preparation and circulation of a draft sustainable communities strategy and an alternative planning strategy, if one is prepared, not less than 55 days before adoption of a final regional transportation plan. (v) At least three public hearings on the draft sustainable communities strategy in the regional transportation plan and alternative planning strategy, if one is prepared. If the metropolitan transportation organization consists of a single county, at least two public hearings shall be held. To the maximum extent feasible, the hearings shall be in different parts of the region to maximize the opportunity for participation by members of the public throughout the region. (vi) A process for enabling members of the public to provide a single request to receive notices, information, and updates. (G) In preparing a sustainable communities strategy, the metropolitan planning organization shall consider spheres of influence that have been adopted by the local agency formation commissions within its region. (H) Before adopting a sustainable communities strategy, the metropolitan planning organization shall quantify the reduction in greenhouse gas emissions projected to be achieved by the sustainable communities strategy and set forth the difference, if any, between the amount of that reduction and the target for the region established by the state board. (I) If the sustainable communities strategy, prepared in compliance with subparagraph (B) or (D), is unable to reduce greenhouse gas emissions to achieve the greenhouse gas emission reduction targets established by the state board, the metropolitan planning organization shall prepare an alternative planning strategy to the sustainable communities strategy showing how those greenhouse gas emission targets would be achieved through alternative development patterns, infrastructure, or additional transportation measures or policies. The alternative planning strategy shall be a separate document from the regional transportation plan, but it may be adopted concurrently with the regional transportation plan. In preparing the alternative planning strategy, the metropolitan planning organization: (i) Shall identify the principal impediments to achieving the targets within the sustainable communities strategy. (ii) May include an alternative development pattern for the region pursuant to subparagraphs (B) to (G), inclusive. (iii) Shall describe how the greenhouse gas emission reduction targets would be achieved by the alternative planning strategy, and why the development pattern, measures, and policies in the alternative planning strategy are the most practicable choices for achievement of the greenhouse gas emission reduction targets. (iv) An alternative development pattern set forth in the alternative planning strategy shall comply with Part 450 of Title 23 of, and Part 93 of Title 40 of, the Code of Federal Regulations, except to the extent that compliance will prevent achievement of the greenhouse gas emission reduction targets approved by the state board. B-50 (v) For purposes of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), an alternative planning strategy shall not constitute a land use plan, policy, or regulation, and the inconsistency of a project with an alternative planning strategy shall not be a consideration in determining whether a project may have an environmental effect. (J) (i) Before starting the public participation process adopted pursuant to subparagraph (F), the metropolitan planning organization shall submit a description to the state board of the technical methodology it intends to use to estimate the greenhouse gas emissions from its sustainable communities strategy and, if appropriate, its alternative planning strategy. The state board shall respond to the metropolitan planning organization in a timely manner with written comments about the technical methodology, including specifically describing any aspects of that methodology it concludes will not yield accurate estimates of greenhouse gas emissions, and suggested remedies. The metropolitan planning organization is encouraged to work with the state board until the state board concludes that the technical methodology operates accurately. (ii) After adoption, a metropolitan planning organization shall submit a sustainable communities strategy or an alternative planning strategy, if one has been adopted, to the state board for review, including the quantification of the greenhouse gas emission reductions the strategy would achieve and a description of the technical methodology used to obtain that result. Review by the state board shall be limited to acceptance or rejection of the metropolitan planning organization’s determination that the strategy submitted would, if implemented, achieve the greenhouse gas emission reduction targets established by the state board. The state board shall complete its review within 60 days. (iii) If the state board determines that the strategy submitted would not, if implemented, achieve the greenhouse gas emission reduction targets, the metropolitan planning organization shall revise its strategy or adopt an alternative planning strategy, if not previously adopted, and submit the strategy for review pursuant to clause (ii). At a minimum, the metropolitan planning organization must obtain state board acceptance that an alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets established for that region by the state board. (iv) On or before September 1, 2018, and every four years thereafter to align with target setting, notwithstanding Section 10231.5, the state board shall prepare a report that assesses progress made by each metropolitan planning organization in meeting the regional greenhouse gas emission reduction targets set by the state board. The report shall include changes to greenhouse gas emissions in each region and data-supported metrics for the strategies used to meet the targets. The report shall also include a discussion of best practices and the challenges faced by the metropolitan planning organizations in meeting the targets, including the effect of state policies and funding. The report shall be developed in consultation with the metropolitan planning organizations and affected stakeholders. The report shall be submitted to the Assembly Committee on Transportation and the Assembly Committee on Natural B-51 Resources, and to the Senate Committee on Transportation, the Senate Committee on Housing, and the Senate Committee on Environmental Quality. (K) Neither a sustainable communities strategy nor an alternative planning strategy regulates the use of land, nor, except as provided by subparagraph (J), shall either one be subject to any state approval. Nothing in a sustainable communities strategy shall be interpreted as superseding the exercise of the land use authority of cities and counties within the region. Nothing in this section shall be interpreted to limit the state board’s authority under any other law. Nothing in this section shall be interpreted to authorize the abrogation of any vested right whether created by statute or by common law. Nothing in this section shall require a city’s or county’s land use policies and regulations, including its general plan, to be consistent with the regional transportation plan or an alternative planning strategy. Nothing in this section requires a metropolitan planning organization to approve a sustainable communities strategy that would be inconsistent with Part 450 of Title 23 of, or Part 93 of Title 40 of, the Code of Federal Regulations and any administrative guidance under those regulations. Nothing in this section relieves a public or private entity or any person from compliance with any other local, state, or federal law. (L) Nothing in this section requires projects programmed for funding on or before December 31, 2011, to be subject to the provisions of this paragraph if they (i) are contained in the 2007 or 2009 Federal Statewide Transportation Improvement Program, (ii) are funded pursuant to the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Chapter 12.49 (commencing with Section 8879.20) of Division 1 of Title 2), or (iii) were specifically listed in a ballot measure before December 31, 2008, approving a sales tax increase for transportation projects. Nothing in this section shall require a transportation sales tax authority to change the funding allocations approved by the voters for categories of transportation projects in a sales tax measure adopted before December 31, 2010. For purposes of this subparagraph, a transportation sales tax authority is a district, as defined in Section 7252 of the Revenue and Taxation Code, that is authorized to impose a sales tax for transportation purposes. (M) A metropolitan planning organization, or a regional transportation planning agency not within a metropolitan planning organization, that is required to adopt a regional transportation plan not less than every five years, may elect to adopt the plan not less than every four years. This election shall be made by the board of directors of the metropolitan planning organization or regional transportation planning agency no later than June 1, 2009, or thereafter 54 months before the statutory deadline for the adoption of housing elements for the local jurisdictions within the region, after a public hearing at which comments are accepted from members of the public and representatives of cities and counties within the region covered by the metropolitan planning organization or regional transportation planning agency. Notice of the public hearing shall be given to the general public and by mail to cities and counties within the region no later than 30 days before the date of the public hearing. Notice of election shall be promptly given to the Department of Housing and Community Development. The metropolitan planning organization or the regional transportation planning agency B-52 shall complete its next regional transportation plan within three years of the notice of election. (N) Two or more of the metropolitan planning organizations for Fresno County, Kern County, Kings County, Madera County, Merced County, San Joaquin County, Stanislaus County, and Tulare County may work together to develop and adopt multiregional goals and policies that may address interregional land use, transportation, economic, air quality, and climate relationships. The participating metropolitan planning organizations may also develop a multiregional sustainable communities strategy, to the extent consistent with federal law, or an alternative planning strategy for adoption by the metropolitan planning organizations. Each participating metropolitan planning organization shall consider any adopted multiregional goals and policies in the development of a sustainable communities strategy and, if applicable, an alternative planning strategy for its region. (3) An action element that describes the programs and actions necessary to implement the plan and assigns implementation responsibilities. The action element may describe all transportation projects proposed for development during the 20-year or greater life of the plan. The action element shall consider congestion management programming activities carried out within the region. (4) (A) A financial element that summarizes the cost of plan implementation constrained by a realistic projection of available revenues. The financial element shall also contain recommendations for allocation of funds. A county transportation commission created pursuant to the County Transportation Commissions Act (Division 12 (commencing with Section 130000) of the Public Utilities Code) shall be responsible for recommending projects to be funded with regional improvement funds, if the project is consistent with the regional transportation plan. The first five years of the financial element shall be based on the five-year estimate of funds developed pursuant to Section 14524. The financial element may recommend the development of specified new sources of revenue, consistent with the policy element and action element. (B) The financial element of transportation planning agencies with populations that exceed 200,000 persons may include a project cost breakdown for all projects proposed for development during the 20-year life of the plan that includes total expenditures and related percentages of total expenditures for all of the following: (i) State highway expansion. (ii) State highway rehabilitation, maintenance, and operations. (iii) Local road and street expansion. (iv) Local road and street rehabilitation, maintenance, and operation. (v) Mass transit, commuter rail, and intercity rail expansion. (vi) Mass transit, commuter rail, and intercity rail rehabilitation, maintenance, and operations. (vii) Pedestrian and bicycle facilities. (viii) Environmental enhancements and mitigation. (ix) Research and planning. (x) Other categories. B-53 (C) The metropolitan planning organization or county transportation agency, whichever entity is appropriate, shall consider financial incentives for cities and counties that have resource areas or farmland, as defined in Section 65080.01, for the purposes of, for example, transportation investments for the preservation and safety of the city street or county road system and farm-to-market and interconnectivity transportation needs. The metropolitan planning organization or county transportation agency, whichever entity is appropriate, shall also consider financial assistance for counties to address countywide service responsibilities in counties that contribute toward the greenhouse gas emission reduction targets by implementing policies for growth to occur within their cities. (c) Each transportation planning agency may also include other factors of local significance as an element of the regional transportation plan, including, but not limited to, issues of mobility for specific sectors of the community, including, but not limited to, senior citizens. (d) (1) Except as otherwise provided in this subdivision, each transportation planning agency shall adopt and submit, every four years, an updated regional transportation plan to the California Transportation Commission and the Department of Transportation. A transportation planning agency located in a federally designated air quality attainment area or that does not contain an urbanized area may at its option adopt and submit a regional transportation plan every five years. When applicable, the plan shall be consistent with federal planning and programming requirements and shall conform to the regional transportation plan guidelines adopted by the California Transportation Commission. Before adoption of the regional transportation plan, a public hearing shall be held after the giving of notice of the hearing by publication in the affected county or counties pursuant to Section 6061. (2) (A) Notwithstanding subdivisions (b) and (c), and paragraph (1), inclusive, the regional transportation plan, sustainable communities strategy, and environmental impact report adopted by the San Diego Association of Governments on October 9, 2015, shall remain in effect for all purposes, including for purposes of consistency determinations and funding eligibility for the San Diego Association of Governments and all other agencies relying on those documents, until the San Diego Association of Governments adopts its next update to its regional transportation plan. (B) The San Diego Association of Governments shall adopt and submit its update to the 2015 regional transportation plan on or before December 31, 2021. (C) After the update described in subparagraph (B), the time period for San Diego Association of Governments’ updates to its regional transportation plan shall be reset and shall be adopted and submitted every four years. (D) Notwithstanding clause (iv) of subparagraph (A) of paragraph (2) of subdivision (b), the State Air Resources Board shall not update the greenhouse gas emission reduction targets for the region within the jurisdiction of the San Diego Association of Governments before the adoption of the update to the regional transportation plan pursuant to subparagraph (B). (E) The update to the regional transportation plan adopted by the San Diego Association of Governments on October 9, 2015, which will be prepared and submitted B-54 to federal agencies for purposes of compliance with federal laws applicable to regional transportation plans and air quality conformity and which is due in October 2019, shall not be considered a regional transportation plan pursuant to this section and shall not constitute a project for purposes of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (F) In addition to meeting the other requirements to nominate a project for funding through the Solutions for Congested Corridors Program (Chapter 8.5 (commencing with Section 2390) of Division 3 of the Streets and Highways Code), the San Diego Association of Governments, until December 31, 2021, shall only nominate projects for funding through the Solutions for Congested Corridors Program that are consistent with the eligibility requirements for projects under any of the following programs: (i) The Transit and Intercity Rail Capital Program (Part 2 (commencing with Section 75220) of Division 44 of the Public Resources Code). (ii) The Low Carbon Transit Operations Program (Part 3 (commencing with Section 75230) of Division 44 of the Public Resources Code). (iii) The Active Transportation Program (Chapter 8 (commencing with Section 2380) of Division 3 of the Streets and Highways Code). (G) Commencing January 1, 2020, and every two years thereafter, the San Diego Association of Governments shall begin developing an implementation report that tracks the implementation of its most recently adopted sustainable communities strategy. The report shall discuss the status of the implementation of the strategy at the regional and local level, and any successes and barriers that have occurred since the last report. The San Diego Association of Governments shall submit the implementation report to the state board by including it in its sustainable communities strategy implementation review pursuant to clause (ii) of subparagraph (J) of paragraph (2) of subdivision (b). (Amended by Stats. 2019, Ch. 634, Sec. 2. (AB 1730) Effective January 1, 2020.) B-55 State of California GOVERNMENT CODE Section 65584 65584. (a) (1) For the fourth and subsequent revisions of the housing element pursuant to Section 65588, the department shall determine the existing and projected need for housing for each region pursuant to this article. For purposes of subdivision (a) of Section 65583, the share of a city or county of the regional housing need shall include that share of the housing need of persons at all income levels within the area significantly affected by the general plan of the city or county. (2) It is the intent of the Legislature that cities, counties, and cities and counties should undertake all necessary actions to encourage, promote, and facilitate the development of housing to accommodate the entire regional housing need, and reasonable actions should be taken by local and regional governments to ensure that future housing production meets, at a minimum, the regional housing need established for planning purposes. These actions shall include applicable reforms and incentives in Section 65582.1. (3) The Legislature finds and declares that insufficient housing in job centers hinders the state’s environmental quality and runs counter to the state’s environmental goals. In particular, when Californians seeking affordable housing are forced to drive longer distances to work, an increased amount of greenhouse gases and other pollutants is released and puts in jeopardy the achievement of the state’s climate goals, as established pursuant to Section 38566 of the Health and Safety Code, and clean air goals. (b) The department, in consultation with each council of governments, shall determine each region’s existing and projected housing need pursuant to Section 65584.01 at least two years prior to the scheduled revision required pursuant to Section 65588. The appropriate council of governments, or for cities and counties without a council of governments, the department, shall adopt a final regional housing need plan that allocates a share of the regional housing need to each city, county, or city and county at least one year prior to the scheduled revision for the region required by Section 65588. The allocation plan prepared by a council of governments shall be prepared pursuant to Sections 65584.04 and 65584.05. (c) Notwithstanding any other provision of law, the due dates for the determinations of the department or for the council of governments, respectively, regarding the regional housing need may be extended by the department by not more than 60 days if the extension will enable access to more recent critical population or housing data from a pending or recent release of the United States Census Bureau or the Department of Finance. If the due date for the determination of the department or the council of governments is extended for this reason, the department shall extend the corresponding B-56 housing element revision deadline pursuant to Section 65588 by not more than 60 days. (d) The regional housing needs allocation plan shall further all of the following objectives: (1) Increasing the housing supply and the mix of housing types, tenure, and affordability in all cities and counties within the region in an equitable manner, which shall result in each jurisdiction receiving an allocation of units for low- and very low income households. (2) Promoting infill development and socioeconomic equity, the protection of environmental and agricultural resources, the encouragement of efficient development patterns, and the achievement of the region’s greenhouse gas reductions targets provided by the State Air Resources Board pursuant to Section 65080. (3) Promoting an improved intraregional relationship between jobs and housing, including an improved balance between the number of low-wage jobs and the number of housing units affordable to low-wage workers in each jurisdiction. (4) Allocating a lower proportion of housing need to an income category when a jurisdiction already has a disproportionately high share of households in that income category, as compared to the countywide distribution of households in that category from the most recent American Community Survey. (5) Affirmatively furthering fair housing. (e) For purposes of this section, “affirmatively furthering fair housing” means taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws. (f) For purposes of this section, “household income levels” are as determined by the department as of the most recent American Community Survey pursuant to the following code sections: (1) Very low incomes as defined by Section 50105 of the Health and Safety Code. (2) Lower incomes, as defined by Section 50079.5 of the Health and Safety Code. (3) Moderate incomes, as defined by Section 50093 of the Health and Safety Code. (4) Above moderate incomes are those exceeding the moderate-income level of Section 50093 of the Health and Safety Code. (g) Notwithstanding any other provision of law, determinations made by the department, a council of governments, or a city or county pursuant to this section or Section 65584.01, 65584.02, 65584.03, 65584.04, 65584.05, 65584.06, 65584.07, or B-57 65584.08 are exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (Amended by Stats. 2018, Ch. 989, Sec. 1.5. (AB 1771) Effective January 1, 2019.) B-58 State of California GOVERNMENT CODE Section 65584.04 65584.04. (a) At least two years before a scheduled revision required by Section 65588, each council of governments, or delegate subregion as applicable, shall develop, in consultation with the department, a proposed methodology for distributing the existing and projected regional housing need to cities, counties, and cities and counties within the region or within the subregion, where applicable pursuant to this section. The methodology shall further the objectives listed in subdivision (d) of Section 65584. (b) (1) No more than six months before the development of a proposed methodology for distributing the existing and projected housing need, each council of governments shall survey each of its member jurisdictions to request, at a minimum, information regarding the factors listed in subdivision (e) that will allow the development of a methodology based upon the factors established in subdivision (e). (2) With respect to the objective in paragraph (5) of subdivision (d) of Section 65584, the survey shall review and compile information that will allow the development of a methodology based upon the issues, strategies, and actions that are included, as available, in an Analysis of Impediments to Fair Housing Choice or an Assessment of Fair Housing completed by any city or county or the department that covers communities within the area served by the council of governments, and in housing elements adopted pursuant to this article by cities and counties within the area served by the council of governments. (3) The council of governments shall seek to obtain the information in a manner and format that is comparable throughout the region and utilize readily available data to the extent possible. (4) The information provided by a local government pursuant to this section shall be used, to the extent possible, by the council of governments, or delegate subregion as applicable, as source information for the methodology developed pursuant to this section. The survey shall state that none of the information received may be used as a basis for reducing the total housing need established for the region pursuant to Section 65584.01. (5) If the council of governments fails to conduct a survey pursuant to this subdivision, a city, county, or city and county may submit information related to the items listed in subdivision (e) before the public comment period provided for in subdivision (d). (c) The council of governments shall electronically report the results of the survey of fair housing issues, strategies, and actions compiled pursuant to paragraph (2) of subdivision (b). The report shall describe common themes and effective strategies B-59 employed by cities and counties within the area served by the council of governments, including common themes and effective strategies around avoiding the displacement of lower income households. The council of governments shall also identify significant barriers to affirmatively furthering fair housing at the regional level and may recommend strategies or actions to overcome those barriers. A council of governments or metropolitan planning organization, as appropriate, may use this information for any other purpose, including publication within a regional transportation plan adopted pursuant to Section 65080 or to inform the land use assumptions that are applied in the development of a regional transportation plan. (d) Public participation and access shall be required in the development of the methodology and in the process of drafting and adoption of the allocation of the regional housing needs. Participation by organizations other than local jurisdictions and councils of governments shall be solicited in a diligent effort to achieve public participation of all economic segments of the community as well as members of protected classes under Section 12955. The proposed methodology, along with any relevant underlying data and assumptions, an explanation of how information about local government conditions gathered pursuant to subdivision (b) has been used to develop the proposed methodology, how each of the factors listed in subdivision (e) is incorporated into the methodology, and how the proposed methodology furthers the objectives listed in subdivision (e) of Section 65584, shall be distributed to all cities, counties, any subregions, and members of the public who have made a written or electronic request for the proposed methodology and published on the council of governments’, or delegate subregion’s, internet website. The council of governments, or delegate subregion, as applicable, shall conduct at least one public hearing to receive oral and written comments on the proposed methodology. (e) To the extent that sufficient data is available from local governments pursuant to subdivision (b) or other sources, each council of governments, or delegate subregion as applicable, shall include the following factors to develop the methodology that allocates regional housing needs: (1) Each member jurisdiction’s existing and projected jobs and housing relationship. This shall include an estimate based on readily available data on the number of low-wage jobs within the jurisdiction and how many housing units within the jurisdiction are affordable to low-wage workers as well as an estimate based on readily available data, of projected job growth and projected household growth by income level within each member jurisdiction during the planning period. (2) The opportunities and constraints to development of additional housing in each member jurisdiction, including all of the following: (A) Lack of capacity for sewer or water service due to federal or state laws, regulations or regulatory actions, or supply and distribution decisions made by a sewer or water service provider other than the local jurisdiction that preclude the jurisdiction from providing necessary infrastructure for additional development during the planning period. (B) The availability of land suitable for urban development or for conversion to residential use, the availability of underutilized land, and opportunities for infill B-60 development and increased residential densities. The council of governments may not limit its consideration of suitable housing sites or land suitable for urban development to existing zoning ordinances and land use restrictions of a locality, but shall consider the potential for increased residential development under alternative zoning ordinances and land use restrictions. The determination of available land suitable for urban development may exclude lands where the Federal Emergency Management Agency (FEMA) or the Department of Water Resources has determined that the flood management infrastructure designed to protect that land is not adequate to avoid the risk of flooding. (C) Lands preserved or protected from urban development under existing federal or state programs, or both, designed to protect open space, farmland, environmental habitats, and natural resources on a long-term basis, including land zoned or designated for agricultural protection or preservation that is subject to a local ballot measure that was approved by the voters of that jurisdiction that prohibits or restricts conversion to nonagricultural uses. (D) County policies to preserve prime agricultural land, as defined pursuant to Section 56064, within an unincorporated area and land within an unincorporated area zoned or designated for agricultural protection or preservation that is subject to a local ballot measure that was approved by the voters of that jurisdiction that prohibits or restricts its conversion to nonagricultural uses. (3) The distribution of household growth assumed for purposes of a comparable period of regional transportation plans and opportunities to maximize the use of public transportation and existing transportation infrastructure. (4) Agreements between a county and cities in a county to direct growth toward incorporated areas of the county and land within an unincorporated area zoned or designated for agricultural protection or preservation that is subject to a local ballot measure that was approved by the voters of the jurisdiction that prohibits or restricts conversion to nonagricultural uses. (5) The loss of units contained in assisted housing developments, as defined in paragraph (9) of subdivision (a) of Section 65583, that changed to non-low-income use through mortgage prepayment, subsidy contract expirations, or termination of use restrictions. (6) The percentage of existing households at each of the income levels listed in subdivision (e) of Section 65584 that are paying more than 30 percent and more than 50 percent of their income in rent. (7) The rate of overcrowding. (8) The housing needs of farmworkers. (9) The housing needs generated by the presence of a private university or a campus of the California State University or the University of California within any member jurisdiction. (10) The housing needs of individuals and families experiencing homelessness. If a council of governments has surveyed each of its member jurisdictions pursuant to subdivision (b) on or before January 1, 2020, this paragraph shall apply only to the B-61 development of methodologies for the seventh and subsequent revisions of the housing element. (11) The loss of units during a state of emergency that was declared by the Governor pursuant to the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2), during the planning period immediately preceding the relevant revision pursuant to Section 65588 that have yet to be rebuilt or replaced at the time of the analysis. (12) The region’s greenhouse gas emissions targets provided by the State Air Resources Board pursuant to Section 65080. (13) Any other factors adopted by the council of governments, that further the objectives listed in subdivision (d) of Section 65584, provided that the council of governments specifies which of the objectives each additional factor is necessary to further. The council of governments may include additional factors unrelated to furthering the objectives listed in subdivision (d) of Section 65584 so long as the additional factors do not undermine the objectives listed in subdivision (d) of Section 65584 and are applied equally across all household income levels as described in subdivision (f) of Section 65584 and the council of governments makes a finding that the factor is necessary to address significant health and safety conditions. (f) The council of governments, or delegate subregion, as applicable, shall explain in writing how each of the factors described in subdivision (e) was incorporated into the methodology and how the methodology furthers the objectives listed in subdivision (d) of Section 65584. The methodology may include numerical weighting. This information, and any other supporting materials used in determining the methodology, shall be posted on the council of governments’, or delegate subregion’s, internet website. (g) The following criteria shall not be a justification for a determination or a reduction in a jurisdiction’s share of the regional housing need: (1) Any ordinance, policy, voter-approved measure, or standard of a city or county that directly or indirectly limits the number of residential building permits issued by a city or county. (2) Prior underproduction of housing in a city or county from the previous regional housing need allocation, as determined by each jurisdiction’s annual production report submitted pursuant to subparagraph (H) of paragraph (2) of subdivision (a) of Section 65400. (3) Stable population numbers in a city or county from the previous regional housing needs cycle. (h) Following the conclusion of the public comment period described in subdivision (d) on the proposed allocation methodology, and after making any revisions deemed appropriate by the council of governments, or delegate subregion, as applicable, as a result of comments received during the public comment period, and as a result of consultation with the department, each council of governments, or delegate subregion, as applicable, shall publish a draft allocation methodology on its internet website and submit the draft allocation methodology, along with the information required pursuant to subdivision (e), to the department. B-62 (i) Within 60 days, the department shall review the draft allocation methodology and report its written findings to the council of governments, or delegate subregion, as applicable. In its written findings the department shall determine whether the methodology furthers the objectives listed in subdivision (d) of Section 65584. If the department determines that the methodology is not consistent with subdivision (d) of Section 65584, the council of governments, or delegate subregion, as applicable, shall take one of the following actions: (1) Revise the methodology to further the objectives listed in subdivision (d) of Section 65584 and adopt a final regional, or subregional, housing need allocation methodology. (2) Adopt the regional, or subregional, housing need allocation methodology without revisions and include within its resolution of adoption findings, supported by substantial evidence, as to why the council of governments, or delegate subregion, believes that the methodology furthers the objectives listed in subdivision (d) of Section 65584 despite the findings of the department. (j) If the department’s findings are not available within the time limits set by subdivision (i), the council of governments, or delegate subregion, may act without them. (k) Upon either action pursuant to subdivision (i), the council of governments, or delegate subregion, shall provide notice of the adoption of the methodology to the jurisdictions within the region, or delegate subregion, as applicable, and to the department, and shall publish the adopted allocation methodology, along with its resolution and any adopted written findings, on its internet website. (l) The department may, within 90 days, review the adopted methodology and report its findings to the council of governments, or delegate subregion. (m) (1) It is the intent of the Legislature that housing planning be coordinated and integrated with the regional transportation plan. To achieve this goal, the allocation plan shall allocate housing units within the region consistent with the development pattern included in the sustainable communities strategy. (2) The final allocation plan shall ensure that the total regional housing need, by income category, as determined under Section 65584, is maintained, and that each jurisdiction in the region receive an allocation of units for low- and very low income households. (3) The resolution approving the final housing need allocation plan shall demonstrate that the plan is consistent with the sustainable communities strategy in the regional transportation plan and furthers the objectives listed in subdivision (d) of Section 65584. (Amended (as amended by Stats. 2018, Ch. 990, Sec. 3.7) by Stats. 2019, Ch. 335, Sec. 4. (AB 139) Effective January 1, 2020.) B-63 State of California GOVERNMENT CODE Section 65584.05 65584.05. (a) At least one and one-half years before the scheduled revision required by Section 65588, each council of governments and delegate subregion, as applicable, shall distribute a draft allocation of regional housing needs to each local government in the region or subregion, where applicable, and the department, based on the methodology adopted pursuant to Section 65584.04 and shall publish the draft allocation on its internet website. The draft allocation shall include the underlying data and methodology on which the allocation is based, and a statement as to how it furthers the objectives listed in subdivision (d) of Section 65584. It is the intent of the Legislature that the draft allocation should be distributed before the completion of the update of the applicable regional transportation plan. The draft allocation shall distribute to localities and subregions, if any, within the region the entire regional housing need determined pursuant to Section 65584.01 or within subregions, as applicable, the subregion’s entire share of the regional housing need determined pursuant to Section 65584.03. (b) Within 45 days following receipt of the draft allocation, a local government within the region or the delegate subregion, as applicable, or the department may appeal to the council of governments or the delegate subregion for a revision of the share of the regional housing need proposed to be allocated to one or more local governments. Appeals shall be based upon comparable data available for all affected jurisdictions and accepted planning methodology, and supported by adequate documentation, and shall include a statement as to why the revision is necessary to further the intent of the objectives listed in subdivision (d) of Section 65584. An appeal pursuant to this subdivision shall be consistent with, and not to the detriment of, the development pattern in an applicable sustainable communities strategy developed pursuant to paragraph (2) of subdivision (b) of Section 65080. Appeals shall be limited to any of the following circumstances: (1) The council of governments or delegate subregion, as applicable, failed to adequately consider the information submitted pursuant to subdivision (b) of Section 65584.04. (2) The council of governments or delegate subregion, as applicable, failed to determine the share of the regional housing need in accordance with the information described in, and the methodology established pursuant to, Section 65584.04, and in a manner that furthers, and does not undermine, the intent of the objectives listed in subdivision (d) of Section 65584. (3) A significant and unforeseen change in circumstances has occurred in the local jurisdiction or jurisdictions that merits a revision of the information submitted pursuant B-64 to subdivision (b) of Section 65584.04. Appeals on this basis shall only be made by the jurisdiction or jurisdictions where the change in circumstances has occurred. (c) At the close of the period for filing appeals pursuant to subdivision (b), the council of governments or delegate subregion, as applicable, shall notify all other local governments within the region or delegate subregion and the department of all appeals and shall make all materials submitted in support of each appeal available on a publicly available internet website. Local governments and the department may, within 45 days, comment on one or more appeals. If no appeals are filed, the draft allocation shall be issued as the proposed final allocation plan pursuant to paragraph (2) of subdivision (e). (d) No later than 30 days after the close of the comment period, and after providing all local governments within the region or delegate subregion, as applicable, at least 21 days prior notice, the council of governments or delegate subregion shall conduct one public hearing to consider all appeals filed pursuant to subdivision (b) and all comments received pursuant to subdivision (c). (e) No later than 45 days after the public hearing pursuant to subdivision (d), the council of governments or delegate subregion, as applicable, shall do both of the following: (1) Make a final determination that either accepts, rejects, or modifies each appeal for a revised share filed pursuant to subdivision (b). Final determinations shall be based upon the information and methodology described in Section 65584.04 and whether the revision is necessary to further the objectives listed in subdivision (d) of Section 65584. The final determination shall be in writing and shall include written findings as to how the determination is consistent with this article. The final determination on an appeal may require the council of governments or delegate subregion, as applicable, to adjust the share of the regional housing need allocated to one or more local governments that are not the subject of an appeal. (2) Issue a proposed final allocation plan. (f) In the proposed final allocation plan, the council of governments or delegate subregion, as applicable, shall adjust allocations to local governments based upon the results of the appeals process. If the adjustments total 7 percent or less of the regional housing need determined pursuant to Section 65584.01, or, as applicable, total 7 percent or less of the subregion’s share of the regional housing need as determined pursuant to Section 65584.03, then the council of governments or delegate subregion, as applicable, shall distribute the adjustments proportionally to all local governments. If the adjustments total more than 7 percent of the regional housing need, then the council of governments or delegate subregion, as applicable, shall develop a methodology to distribute the amount greater than the 7 percent to local governments. The total distribution of housing need shall not equal less than the regional housing need, as determined pursuant to Section 65584.01, nor shall the subregional distribution of housing need equal less than its share of the regional housing need as determined pursuant to Section 65584.03. (g) Within 45 days after the issuance of the proposed final allocation plan by the council of governments and each delegate subregion, as applicable, the council of B-65 governments shall hold a public hearing to adopt a final allocation plan. To the extent that the final allocation plan fully allocates the regional share of statewide housing need, as determined pursuant to Section 65584.01 and has taken into account all appeals, the council of governments shall have final authority to determine the distribution of the region’s existing and projected housing need as determined pursuant to Section 65584.01. The council of governments shall submit its final allocation plan to the department within three days of adoption. Within 30 days after the department’s receipt of the final allocation plan adopted by the council of governments, the department shall determine if the final allocation plan is consistent with the existing and projected housing need for the region, as determined pursuant to Section 65584.01. The department may revise the determination of the council of governments if necessary to obtain this consistency. (h) Any authority of the council of governments to review and revise the share of a city or county of the regional housing need under this section shall not constitute authority to revise, approve, or disapprove the manner in which the share of the city or county of the regional housing need is implemented through its housing program. (i) Any time period in subdivision (d) or (e) may be extended by a council of governments or delegate subregion, as applicable, for up to 30 days. (j) The San Diego Association of Governments may follow the process in this section for the draft and final allocation plan for the sixth revision of the housing element notwithstanding such actions being carried out before the adoption of an updated regional transportation plan and sustainable communities strategy. (Amended by Stats. 2019, Ch. 634, Sec. 4. (AB 1730) Effective January 1, 2020.) B-66 Z,E^hKDD/dd,ZdZʹϲƚŚǇĐůĞ WĂŐĞϭŽĨϮ WƵƌƉŽƐĞŽĨƚŚĞ^ƵďĐŽŵŵŝƚƚĞĞ dŚĞƉƵƌƉŽƐĞŽĨƚŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞŝƐƚŽƌĞǀŝĞǁŝŶͲĚĞƉƚŚƚŚĞǀĂƌŝŽƵƐƉŽůŝĐǇĐŽŶƐŝĚĞƌĂƚŝŽŶƐ ŶĞĐĞƐƐĂƌǇƚŽƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨ^'͛ƐZĞŐŝŽŶĂů,ŽƵƐŝŶŐEĞĞĚƐƐƐĞƐƐŵĞŶƚ;Z,EͿ͕ĂŶĚƚŽŵĂŬĞ ĐƌŝƚŝĐĂůĚĞĐŝƐŝŽŶƐƚŚƌŽƵŐŚŽƵƚƚŚĞZ,EƉƌŽĐĞƐƐ͕ŝŶĐůƵĚŝŶŐďƵƚŶŽƚůŝŵŝƚĞĚƚŽƚŚĞĨŽůůŽǁŝŶŐ͗ƚŚĞZ,E ŵĞƚŚŽĚŽůŽŐǇ͕ƚŚĞĚƌĂĨƚĂŶĚĨŝŶĂůZ,EĂůůŽĐĂƚŝŽŶƐ͕ĂŶĚĂƉƉĞĂůƐƌĞůĂƚĞĚƚŽĚƌĂĨƚZ,EĂůůŽĐĂƚŝŽŶƐ͘ dŚĞĚĞĐŝƐŝŽŶƐŽĨƚŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞǁŝůůƐĞƌǀĞĂƐƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐƚŽ^'͛ƐŽŵŵƵŶŝƚǇ͕ ĐŽŶŽŵŝĐĂŶĚ,ƵŵĂŶĞǀĞůŽƉŵĞŶƚ;,ͿŽŵŵŝƚƚĞĞĂŶĚƚŚĞZĞŐŝŽŶĂůŽƵŶĐŝů͕ĞǆĐĞƉƚƚŚĂƚƚŚĞ Z,E^ƵďĐŽŵŵŝƚƚĞĞǁŝůůŵĂŬĞƚŚĞĨŝŶĂůĚĞĐŝƐŝŽŶƐƌĞŐĂƌĚŝŶŐĂůůĂƉƉĞĂůƐŽĨĚƌĂĨƚZ,EĂůůŽĐĂƚŝŽŶƐ͘ ƵƚŚŽƌŝƚǇ ƵƚŚŽƌŝǌĞĚďǇƚŚĞZĞŐŝŽŶĂůŽƵŶĐŝů͕ƚŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞƐĞƌǀĞƐĂƐĂƐƵďĐŽŵŵŝƚƚĞĞŽĨƚŚĞ, ŽŵŵŝƚƚĞĞ͕ĂŶĚǁŝůůďĞƌĞƉŽƌƚŝŶŐƚŽƚŚĞ,ŽŵŵŝƚƚĞĞ͘ůůĂĐƚŝŽŶƐďǇƚŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞ͕ ĞǆĐĞƉƚĨŽƌĂĐƚŝŽŶƐƉĞƌƚĂŝŶŝŶŐƚŽĂƉƉĞĂůƐŽĨĚƌĂĨƚZ,EĂůůŽĐĂƚŝŽŶƐ͕ĂƌĞƐƵďũĞĐƚƚŽƚŚĞƌĞǀŝĞǁĂŶĚ ĂƉƉƌŽǀĂůŽĨƚŚĞ,ŽŵŵŝƚƚĞĞĂŶĚƚŚĞZĞŐŝŽŶĂůŽƵŶĐŝů͘ZĞĐŽŐŶŝǌŝŶŐƚŚĞƐŝŐŶŝĨŝĐĂŶƚĂŵŽƵŶƚŽĨ ǁŽƌŬƵŶĚĞƌƚĂŬĞŶďǇƚŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞ͕ƚŚĞ,ŽŵŵŝƚƚĞĞĂŶĚƚŚĞZĞŐŝŽŶĂůŽƵŶĐŝůǁŝůů ƌĞůǇ ŽŶ ƚŚĞ ƉŽůŝĐǇ ũƵĚŐŵĞŶƚƐ ŽĨ ƚŚĞ Z,E ^ƵďĐŽŵŵŝƚƚĞĞ͘ dŚĞ Z,E ^ƵďĐŽŵŵŝƚƚĞĞ ƐŚĂůů ďĞ ĚŝƐƐŽůǀĞĚĂƐŽĨƚŚĞĚĂƚĞŝŶǁŚŝĐŚƚŚĞĨŝŶĂůZ,EĂůůŽĐĂƚŝŽŶŝƐĂĚŽƉƚĞĚďǇƚŚĞZĞŐŝŽŶĂůŽƵŶĐŝů͘ ŽŵƉŽƐŝƚŝŽŶ dŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞǁŝůůĐŽŶƐŝƐƚŽĨƚǁĞůǀĞ;ϭϮͿŵĞŵďĞƌƐŽĨƚŚĞZĞŐŝŽŶĂůŽƵŶĐŝůŽƌƚŚĞ, ŽŵŵŝƚƚĞĞƚŽƌĞƉƌĞƐĞŶƚƚŚĞƐŝǆ;ϲͿĐŽƵŶƚŝĞƐŽĨƚŚĞ^'ƌĞŐŝŽŶ͘ĂĐŚĐŽƵŶƚǇƐŚĂůůŚĂǀĞĂƉƌŝŵĂƌǇ ŵĞŵďĞƌĂŶĚĂŶĂůƚĞƌŶĂƚĞŵĞŵďĞƌƚŽƐĞƌǀĞŽŶƚŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞ͘dŚĞ^'WƌĞƐŝĚĞŶƚǁŝůů ĂƉƉŽŝŶƚƚŚĞŵĞŵďĞƌƐŽĨƚŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞĂŶĚǁŝůůƐĞůĞĐƚŽŶĞŽĨƚŚĞŵĞŵďĞƌƐƚŽƐĞƌǀĞĂƐ ƚŚĞŚĂŝƌŽĨƚŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞ͘DĞŵďĞƌƐŚŝƉŽĨƚŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞŵĂǇĂůƐŽŝŶĐůƵĚĞĂƐ ŶŽŶͲǀŽƚŝŶŐŵĞŵďĞƌƐƐĞƌǀŝŶŐĂƐƐƚĂŬĞŚŽůĚĞƌƌĞƉƌĞƐĞŶƚĂƚŝǀĞƐĂƉƉŽŝŶƚĞĚďǇƚŚĞ^'WƌĞƐŝĚĞŶƚ͘ DĞĞƚŝŶŐƐĂŶĚsŽƚŝŶŐ dŚĞŵĞĞƚŝŶŐƐŽĨƚŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞǁŝůůŽĐĐƵƌĚƵƌŝŶŐƚŚĞĂƉƉůŝĐĂďůĞƉĞƌŝŽĚǁŚĞŶ^'ŝƐ ĚĞǀĞůŽƉŝŶŐƚŚĞZ,E͘dŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞƐŚĂůůŚĂǀĞƚŚĞĂƵƚŚŽƌŝƚǇƚŽĐŽŶǀĞŶĞŵĞĞƚŝŶŐƐĂƐ ĐŝƌĐƵŵƐƚĂŶĐĞƐƌĞƋƵŝƌĞ͘ŵĞĞƚŝŶŐƋƵŽƌƵŵƐŚĂůůďĞĞƐƚĂďůŝƐŚĞĚǁŚĞŶƚŚĞƌĞŝƐĂƚƚĞŶĚĂŶĐĞďǇĂƚůĞĂƐƚ ŽŶĞƌĞƉƌĞƐĞŶƚĂƚŝǀĞ;ĞŝƚŚĞƌĂƉƌŝŵĂƌǇŵĞŵďĞƌŽƌĂŶĂůƚĞƌŶĂƚĞŵĞŵďĞƌͿĨƌŽŵĞĂĐŚŽĨƚŚĞƐŝǆ;ϲͿ ĐŽƵŶƚŝĞƐ͘^ƚĂŬĞŚŽůĚĞƌƌĞƉƌĞƐĞŶƚĂƚŝǀĞƐƐĞƌǀŝŶŐĂƐŶŽŶͲǀŽƚŝŶŐŵĞŵďĞƌƐŽĨƚŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞ ĂƌĞŶŽƚĐŽƵŶƚĞĚĨŽƌƉƵƌƉŽƐĞƐŽĨĞƐƚĂďůŝƐŚŝŶŐĂŵĞĞƚŝŶŐƋƵŽƌƵŵ͘ ůůZ,E^ƵďĐŽŵŵŝƚƚĞĞŵĞŵďĞƌƐĂƌĞĞǆƉĞĐƚĞĚƚŽĂƚƚĞŶĚĞĂĐŚŵĞĞƚŝŶŐ͕ƚŽƚŚĞĞǆƚĞŶƚĨĞĂƐŝďůĞ͘ Z,E^ƵďĐŽŵŵŝƚƚĞĞŵĞŵďĞƌƐŵĂǇĂƚƚĞŶĚŵĞĞƚŝŶŐƐďǇƚĞůĞĐŽŶĨĞƌĞŶĐĞŽƌǀŝĚĞŽͲĐŽŶĨĞƌĞŶĐĞ͘ůů ŵĞĞƚŝŶŐƐ ŽĨ ƚŚĞ Z,E ^ƵďĐŽŵŵŝƚƚĞĞ ĂƌĞ ƐƵďũĞĐƚ ƚŽ ƚŚĞ ƌŽǁŶ Đƚ͘dŚĞŚĂŝƌŽĨƚŚĞZ,E ^ƵďĐŽŵŵŝƚƚĞĞ ƐŚĂůů ƉƌĞƐŝĚĞ ŽǀĞƌ Ăůů ŵĞĞƚŝŶŐƐ ĂŶĚ ƚŚĞ ^ƵďĐŽŵŵŝƚƚĞĞŵĂǇƐĞůĞĐƚĂŶŽƚŚĞƌ Packet Pg. 36 Attachment: Final RHNA Charter_6th Cycle (Final RHNA Subcommittee Charter)B-67 Z,E^hKDD/dd,ZdZʹϲƚŚǇĐůĞ WĂŐĞϮŽĨϮ ^ƵďĐŽŵŵŝƚƚĞĞŵĞŵďĞƌƚŽƐĞƌǀĞĂƐƚŚĞsŝĐĞͲŚĂŝƌŝŶƚŚĞŚĂŝƌ͛ƐĂďƐĞŶĐĞ͘dŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞ ǁŝůůŝŶǀŝƚĞ^'ƐƚĂĨĨŽƌŽƚŚĞƌƐƚŽĂƚƚĞŶĚŵĞĞƚŝŶŐƐĂŶĚƉƌŽǀŝĚĞƉĞƌƚŝŶĞŶƚŝŶĨŽƌŵĂƚŝŽŶ͕ĂƐŶĞĐĞƐƐĂƌǇ͘ DĞĞƚŝŶŐ ĂŐĞŶĚĂƐ ǁŝůů ďĞ ƉƌĞƉĂƌĞĚ ĂŶĚ ƉƌŽǀŝĚĞĚ ŝŶ ĂĚǀĂŶĐĞ ƚŽ Z,E ^ƵďĐŽŵŵŝƚƚĞĞ ŵĞŵďĞƌƐ͕ ĂůŽŶŐǁŝƚŚĂƉƉƌŽƉƌŝĂƚĞďƌŝĞĨŝŶŐŵĂƚĞƌŝĂůƐĂŶĚƌĞƉŽƌƚƐ͕ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƌŽǁŶĐƚ͘DŝŶƵƚĞƐ ŽĨĞĂĐŚŵĞĞƚŝŶŐǁŝůůďĞƉƌĞƉĂƌĞĚ͘ &ŽƌƉƵƌƉŽƐĞƐŽĨǀŽƚŝŶŐ͕ĞĂĐŚĐŽƵŶƚǇƐŚĂůůďĞĞŶƚŝƚůĞĚƚŽŽŶĞ;ϭͿǀŽƚĞƚŽďĞĐĂƐƚďǇĞŝƚŚĞƌƚŚĞƉƌŝŵĂƌǇ ŵĞŵďĞƌŽƌĂůƚĞƌŶĂƚĞŵĞŵďĞƌƌĞƉƌĞƐĞŶƚŝŶŐƚŚĞƌĞƐƉĞĐƚŝǀĞĐŽƵŶƚǇ͘/ŶƚŚĞĞǀĞŶƚŽĨĂƚŝĞǀŽƚĞ͕ƚŚĞ ŚĂŝƌŽĨƚŚĞ^ƵďĐŽŵŵŝƚƚĞĞŵĂǇǀŽƚĞƚŽďƌĞĂŬƚŚĞƚŝĞĞǆĐĞƉƚŝĨƚŚĞŚĂŝƌŽĨƚŚĞ^ƵďĐŽŵŵŝƚƚĞĞŚĂƐ ĐĂƐƚĞĚĂǀŽƚĞĂƐĂ^ƵďĐŽŵŵŝƚƚĞĞŵĞŵďĞƌ͘/ŶƚŚĂƚĞǆĐĞƉƚŝŽŶ͕ƚŚĞsŝĐĞŚĂŝƌŽĨƚŚĞ^ƵďĐŽŵŵŝƚƚĞĞ ŵĂǇďƌĞĂŬƚŚĞƚŝĞǀŽƚĞ͘/ŶƚŚĞĐĂƐĞŽĨĂŶĂƉƉĞĂůƐƵďŵŝƚƚĞĚŽŶďĞŚĂůĨŽĨĂ^ƵďĐŽŵŵŝƚƚĞĞŵĞŵďĞƌ͛Ɛ ŝŶĚŝǀŝĚƵĂů ůŽĐĂů ũƵƌŝƐĚŝĐƚŝŽŶ͕ ƚŚĞ ^ƵďĐŽŵŵŝƚƚĞĞ ŵĞŵďĞƌ ŵĂǇ ĞůĞĐƚ ŶŽƚ ƚŽ ƉĂƌƚŝĐŝƉĂƚĞ ŝŶ ƚŚĞ ĚŝƐĐƵƐƐŝŽŶĂŶĚǀŽƚĞďǇƚŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞƌĞŐĂƌĚŝŶŐƐƵĐŚĂƉƉĞĂů͘ ZĞƐƉŽŶƐŝďŝůŝƚŝĞƐ dŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞǁŝůůĐĂƌƌǇŽƵƚƚŚĞĨŽůůŽǁŝŶŐƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐ͗ ZĞǀŝĞǁŝŶĨŽƌŵĂƚŝŽŶƵƐĞĨƵůƚŽƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨƚŚĞZ,EWůĂŶ͖ ZĞǀŝĞǁĂŶĚŵĂŬĞƉŽůŝĐǇĚĞĐŝƐŝŽŶƐƌĞůĂƚĞĚƚŽƚŚĞZ,EƉƌŽĐĞƐƐŝŶĐůƵĚŝŶŐƉŽůŝĐŝĞƐĨŽƌƚŚĞ Z,EŵĞƚŚŽĚŽůŽŐǇ͕ƚŚĞZ,EŵĞƚŚŽĚŽůŽŐǇ͕ĂŶĚƚŚĞĚƌĂĨƚĂŶĚĨŝŶĂůZ,EĂůůŽĐĂƚŝŽŶƐ͕ĂŶĚ ĨŽƌǁĂƌĚƐƵĐŚĚĞĐŝƐŝŽŶƐƚŽƚŚĞ,ŽŵŵŝƚƚĞĞĨŽƌƌĞǀŝĞǁĂŶĚĂƉƉƌŽǀĂů͘/ŶŵĂŬŝŶŐŝƚƐ ƉŽůŝĐǇĚĞĐŝƐŝŽŶƐ͕ƚŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞƐŚŽƵůĚĐŽŶƐŝĚĞƌƚŚĞŝŶƚĞŐƌĂƚŝŽŶŽĨƚŚĞZ,EǁŝƚŚ ƚŚĞZĞŐŝŽŶĂůdƌĂŶƐƉŽƌƚĂƚŝŽŶWůĂŶͬ^ƵƐƚĂŝŶĂďůĞŽŵŵƵŶŝƚŝĞƐ^ƚƌĂƚĞŐǇ͖ ZĞǀŝĞǁĂŶĚŵĂŬĞĚĞĐŝƐŝŽŶƐƌĞŐĂƌĚŝŶŐŐƵŝĚĞůŝŶĞƐĨŽƌƚŚĞZ,EƉƌŽĐĞƐƐŝŶĐůƵĚŝŶŐŐƵŝĚĞůŝŶĞƐ ƌĞůĂƚĞĚƚŽƐƵďƌĞŐŝŽŶĂůĚĞůĞŐĂƚŝŽŶ͕ĂŶĚĨŽƌǁĂƌĚƐƵĐŚĚĞĐŝƐŝŽŶƐƚŽƚŚĞ,ŽŵŵŝƚƚĞĞĨŽƌ ƌĞǀŝĞǁĂŶĚĂƉƉƌŽǀĂů͖ĂŶĚ ZĞǀŝĞǁĂŶĚŵĂŬĞƚŚĞĨŝŶĂůĚĞĐŝƐŝŽŶƐƌĞŐĂƌĚŝŶŐĂƉƉĞĂůƐƌĞůĂƚĞĚƚŽƚŚĞũƵƌŝƐĚŝĐƚŝŽŶ͛ƐĚƌĂĨƚ Z,EĂůůŽĐĂƚŝŽŶ͘/ŶƚŚŝƐĐĂƉĂĐŝƚǇ͕ƚŚĞZ,E^ƵďĐŽŵŵŝƚƚĞĞƐŚĂůůďĞŬŶŽǁŶĂƐƚŚĞ͞Z,E ƉƉĞĂůƐŽĂƌĚ͘͟dŚĞƐĞĨŝŶĂůĚĞĐŝƐŝŽŶƐďǇƚŚĞZ,EƉƉĞĂůƐŽĂƌĚƐŚĂůůŶŽƚƌĞǀŝĞǁĂďůĞďǇ ƚŚĞ,ŽŵŵŝƚƚĞĞŽƌďǇƚŚĞZĞŐŝŽŶĂůŽƵŶĐŝů͘ Packet Pg. 37 Attachment: Final RHNA Charter_6th Cycle (Final RHNA Subcommittee Charter)B-68 C-1CITY OF September 9, 2019 Honorable Peggy Huang, Chair Regional Housing Needs Assessment Subcommittee Southern California Association of Governments 900 Wilshire Blvd, Suite No. 1700 Los Angeles, CA 90017 RANCHO PALOS VERDES COMMUNITY DEVELOPMENT DEPARTMENT SUBMITTED ELECTRONICALLY SUBJECT: DRAFT REGIONAL HOUSING NEEDS ASSESSMENT (RHNA) PROPOSED METHODOLOGY Dear Chair Huang, On August 20, 2019, the City of Rancho Palos Verdes submitted a comment letter regarding the proposed 61h cycle RHNA methodology options currently being considered by the Southern California Association of Governments (SCAG). The City's comment letter highlighted the unique challenges and physical constraints that face the City, such as being designated a Very High Fire Hazard Severity Zone, the presence of geologic hazards, and the preservation of sensitive wildlife and habitat. The comment letter urged the RHNA Subcommittee to consider such factors in selecting a RHNA methodology. Since the issuance of the City's comment letter, the State's Housing and Community Development Department (HCD) issued a regional determination need of 1,344,740 total housing units for the SCAG region. Based on this figure and using SCAG's RHNA Methodologies Estimate Tool, the City of Rancho Palos Verdes would have a RHNA allocation of 1,852 housing units under Option 1, 2,390 housing units under Option 2, and 75 housing units under Option 3. Methodology Options 1 and 2 present a significantly higher RHNA allocation than what the City was assigned for the 51h RHNA cycle. These methodology options would pose an undue burden upon the City to accommodate for housing in the next Housing Element cycle without considering the unique physical challenges faced by the City. The City would also like to bring attention to the need for housing with access to high-quality transit in order to meet the State's objectives to reduce greenhouse gas emissions and vehicle miles traveled. The City of Rancho Palos Verdes, along with its neighboring Palos Verdes Peninsula cities, are located in a region with very limited access to high-quality transit. In fact, the City recently learned that, due to the recent reduction in ridership, the LA Metro is considering eliminating Route 344, which serves Hawthorne Blvd., a major arterial for the Peninsula. With limited access to high-quality transit, combined with the consideration to eliminate Route 344, any new high-density housing required to be built in the City by the State will inevitably require residents to rely primarily upon private vehicles for transportation. Based on Options 1 and 2--and perhaps Option 3--the State-mandated housing units will result in a significant increase in vehicle miles traveled and greenhouse gas emissions, which is fundamentally counterproductive with the State's and Governor's objectives. The City recommends that SCAG appeal HCD's regional determination need figure before deciding on a RHNA methodology option. The City also strongly urges SCAG to select RNHA Methodology Option 3, as 30940 111\WTIII li<I~E 131 l\ILEVAr\1) I I< ANI ~Hl J I 'AU l:-> VE:I\Ilb I .A 90215-5391 I 13101 544-5228 I FAX 1310l 544-5293 WWI'I' I<I'VCA GGV 0 PI<INTED ON RECYCLED PAPEI< C-2this option most appropriately utilizes local input amongst the three options, and provides the City with a RHNA allocation that the City can plan for in the upcoming Housing Element planning cycle. If you should have any questions, or would like further assistance, please feel free to contact me at (31 0) 544-5227 or by email at aram@rpvca.gov. ' ra in , ACIP Director of Community Development c: Jerry Duhovic, Mayor, Rancho Palos Verdes Rancho Palos Verdes City Council Hon. Dan Medina, RC District# 28, GCCOG Hon. James Gazeley, RC District# 39, SBCCOG Hon. Judy Mitchell, RC District #40, SBCCOG Jacki Bacharach, Executive Director of the SBCCOG Doug Wilmore, City Manager Kit Fox, Interim Deputy Director of Community Development Octavia Silva, Senior Planner C-3CITY OF August20, 2019 Honorable Peggy Huang, Chair Regional Housing Needs Assessment Subcommittee Southern California Association of Governments 900 Wilshire Blvd, Suite No. 1700 Los Angeles, CA 90017 RANCHO PALOS VERDES COMMUNITY DEVELOPMENT DEPARTMENT SUBMITTED ELECTRONICALLY SUBJECT: DRAFT REGIONAL HOUSING NEEDS ASSESSMENT (RHNA) PROPOSED METHODOLOGY Dear Chair Huang, The City of Rancho Palos Verdes appreciates the opportunity to provide the following comments on the proposed RHNA methodology for your consideration. Since the 2013 adoption of the Housing Element, the City has actively engaged in implementing the goals and policies of the Housing Element including the creation of housing units to meet designated RHNA allocations. More specifically, the City has provided for housing units in various income levels and anticipates that remaining units will be provided as identified in the City's Housing Element. The City joins other jurisdictions in expressing concerns as to the feasibility of meeting new RHNA allocations under the methodology options proposed by the Southern California Association of Governments (SCAG). While the City supports the development of housing units that improve the availability of affordable and safe housing throughout the region, the City also promotes housing that reflects the City's character and recognizes development constraints and hazards. The City requests that SCAG consider the following challenges that face the City, as it considers proposed methodology options for the upcoming 61h RHNA cycle: 1) Very High Fire Severity Zone Approximately 97% of the City of Rancho Palos Verdes is located within the Very High Fire Severity Zone, as classified through the California Department of Forestry and Fire Protection. Senate Bill 35 recognizes the hazards associated with such classifications by exempting mandatory density provisions for very high fire severity zone communities. The City requests that this designation weigh heavily on the methodology option selected for Rancho Palos Verdes. 2) Geologic Hazards The Portuguese Bend Landslide Complex (PBLC), which is the largest fastest moving landslide in North America, is located along the south central section of the Palos Verdes Peninsula entirely within the City of Rancho Palos Verdes. The terminus of the active landslide complex, and generally the southwest boundary of the PBLC is the Pacific Ocean. The PBLC is divided into two parts with the main landslide having an area of about 190 acres and the other segment having an 30940 IIAWTHI ll\liE fil ll II_EVAf~D I !\ANI ;11r l I 'Al_O~ VEI~DE~ I~A 90275-5391 I 13101 544-5228/ FAX 13101 544-5293 WW\11/ I~PVCA GOV 0 PRINl ED ON RECYCLED PAI"EI~ C-4area of about 70 acres. The PBLC moves at various rates and over the last several decades has resulted in significant infrastructure damage to homes, utilities, and roadways. The City has expended nearly 50 million dollars over the years repairing and maintaining the damage and addressing the overall technical and administrative issues associated with managing such a complex problem. As a result of geologic and geotechnical studies, the City prohibits the construction on vacant lots within the entire PBLC through with the establishment of a landslide moratorium area that has been codified since 1978. 3) Wildlife and Habitat Preservation The City of Rancho Palos Verdes includes area of lands that are protected from development as a result of Federal and State programs. More specifically, the City has adopted a Natural Community Preservation Plan and Habitat Conservation Plan (NCCP/HCP or Plan). The Plan was prepared to maximize the benefits to wildlife and vegetation communities while accommodating appropriate economic development within the City. The City's primary conservation strategy is to dedicate 1,402.4 acres of habitat protection for the NCCP/HCP Preserve assembly. The dedication includes Existing Public Lands that are currently owned by the City (1,123.0 acres) and the Palos Verdes Peninsula Land Conservancy (PVPLC) (20.7 acres). The remainder of the Preserve is comprised of 258.7 acres of City owned land or land that will eventually be owned by the City which has been previously dedicated for conservation as mitigation for certain private projects and will be added to the Preserve. The City also includes the Abalone Cove, which contains a State-designated Ecological Preserve with important natural marine resources at the bottom of the Portuguese Bend landslide area. The City's NCCP/HCP is unique to Los Angeles County, as it is the only such Plan in the County. It benefits the natural environment and protection of species, including listed endangered species, as well as passive recreational opportunities to the general public. The approximate 1 ,400 acres of undeveloped vacant open space that make up the Palos Verdes Nature Preserve is encumbered with conservation easements and deed restrictions that prohibit development in perpetuity which should be factored in the RHNA methodology applied to the City. In addition to the large areas of the City dedicated to wildlife and vegetation communities, the City also is home to three federal facilities. These include the Point Vicente Lighthouse and Coast Guard Station (29 acres}, the United States Air Force and Federal Aviation Administration Radar Station (11 acres) on San Pedro Hill, and a World War II bunker and Coast Guard antenna site (4 acres) at Point Vicente Park/Civic Center. The City would like to thank the Chair and Committee in advance for considering the unique challenges and physical constraints that face Rancho Palos Verdes, and asks that such factors weigh heavily in considering the methodology for the upcoming 61h RHNA cycle. If you should have any questions, or would like further assistance, please feel free to contact me at (31 0) 544-5227 or by email at aram@rpvca.gov. Ara Mihranian, ACIP Director of Community Development c: Jerry Duhovic, Mayor. Rancho Palos Verdes Rancho Palos Verdes City Council Doug Wilmore. City Manager Octavia Silva. Senior Planner C-5CITY OF October 29, 2019 Honorable Peggy Huang, Chair Regional Housing Needs Assessment Subcommittee Southern California Association of Governments 900 Wilshire Blvd, Suite No. 1700 Los Angeles, CA 90017 RANCHO PALOS VERDES COMMUNITY DEVELOPMENT DEPARTMENT SUBMITTED ELECTRONICALLY SUBJECT: DRAFT REGIONAL HOUSING NEEDS ASSESSMENT (RHNA) PROPOSED METHODOLOGY Dear Chair Huang, On August 20, 2019, and September 9, 2019, the City of Rancho Palos Verdes submitted comment letters regarding the proposed 61h cycle RHNA methodology options being considered by the Southern California Association of Governments (SCAG). The City's comment letters urged SCAG to develop a methodology that considers unique challenges and physical constraints that may face a city, such as being designated a Very High Fire Hazard Severity Zone, geologic hazards and wildlife/habitat preservation, as are present in the City of Rancho Palos Verdes. The City also urged SCAG to develop a RHNA methodology that promoted housing with access to high-quality transit in order to meet the State's objectives to reduce greenhouse gas emissions and vehicle miles traveled. On September 23, 2019, SCAG staff previewed a staff-recommended draft methodology, which has since been presented to SCAG's RHNA Sub-Committee and Community, Economic and Human Development (CEHD) Committee for consideration. Using the RHNA Methodologies Estimate Tool under the recommended draft RHNA methodology, the City of Rancho Palos Verdes would be required to provide 94 housing units at various income levels during the next planning period of 2021-2029. As SCAG proceeds toward a final RHNA methodology, the City of Rancho Palos Verdes continues to urge SCAG to finalize a RHNA methodology that considers the City's unique challenges and physical constraints, as such factors severely limit the availability of land throughout the City to accommodate new housing. City Staff is concerned that "top down" housing mandates combined with the lack of available housing sites, combined with the State legislature's willingness to punish cities that do not achieve their RHNA allocations, are setting up the City for an unachievable 61h Cycle RHNA allocation. While the City continues to express concerns regarding the proposed RHNA methodologies, the City appreciates the efforts of SCAG throughout the RHNA process and in further considering the comments provided in this letter. If you should have any questions, or would like further assistance, please feel free to contact me at (31 0) 544-5227 or by email at aram@rpvca.gov or Senior Planner, Octavia Silva at (31 0) 544-5234 or by email at octavios@rpvca.gov. 30940 I lAVVTHOI\NE 8( ll JLEVAf~l) I 1\ANlllC l f1AU J::; VEkDES t ;A 90275-5391 I 1310l 544-5228 I FAX 13101 544-5293 '1/1/V•iW RPVCA GOV 0 PI<INTED ON RECYCLED PAPER C-6c: Jerry Duhovic, Mayor, Rancho Palos Verdes Rancho Palos Verdes City Council Hon. Dan Medina, RC District# 28, GCCOG Hon. James Gazeley, RC District# 39, SBCCOG Hon. Judy Mitchell, RC District #40, SBCCOG Jacki Bacharach, Executive Director of the SBCCOG Doug Wilmore, City Manager Kit Fox, Interim Deputy Director of Community Development Octavia Silva, Senior Planner Request for Proposal and Qualifications Housing Element Update City of Rancho Palos Verdes Date: September 28, 2020 Response Due: October 22, 2020 D-1 City of Rancho Palos Verdes – Professional Services Consultant Request for Proposal and Qualifications Project Objective: To provide professional services for the mandated update of the City’s Housing Element. Submission Due Date: October 22, 2020 Submit to: Octavio Silva Deputy Director of Community Development City of Rancho Palos Verdes 30940 Hawthorne Boulevard Rancho Palos Verdes, CA 90275 Refer General Octavio Silva Questions to: via e-mail at octavios@rpvca.gov D-2 I. INTRODUCTION The City of Rancho Palos Verdes (the “City”) invites qualified Respondents to submit proposals to provide consulting services for the update of the Housing Element of the City’s General Plan. The City must update its Housing Element Update as mandated by State law for the 2021-2029 planning cycle, with completed certification by the State Department of Housing and Community Development (“HCD”) by no later than October 15, 2021. The City is seeking a consultant with prior experience working with HCD, equipped to develop creative solutions in furtherance of affordable housing within a built-out coastal community, and with a comprehensive understanding of current California housing laws and requirements. The following defines the proposed project objectives, scope of services, proposal requirements, selection process and other information required to prepare and submit a proposal including the City’s template for professional services agreements under “Exhibit A”. II. CITY PROFILE The City of Rancho Palos Verdes is located in Los Angeles County, generally in the southwest area of the greater Los Angeles Metropolitan Area on the southern edge of the Palos Verdes Peninsula. The City is an approximately 13.5 square-mile built-out hillside coastal community with unique environmental constraints and open-hazard areas that result in limited potential for redevelopment opportunities. More specifically, the City’s developable areas are generally influenced by steep hillside terrain and open space areas (many of which are protected), which pose topographical and geographical constraints for development. In addition, many of the City’s neighborhoods have streets that are narrow, steep and often dead end, which also poses development challenges for both new and infill development. The entire City has also been designated to be located within a High Fire Severity Zone, excluding portions of the City located east of Western Avenue (approximately 98 acres). The City’s 6th cycle Regional Housing Needs Assessment (RHNA) allocation is estimated to be: Income Category Number of Units Very Low 253 Low 139 Moderate 125 Above Moderate 121 Total 638 III. PROJECT OBJECTIVES The Housing Element update project shall be guided by the following objectives: D-3 1. Comply with all City and state legal and regulatory requirements; 2. Produce a comprehensive document that addresses current and projected housing conditions and needs in the City; 3. Ensure residents and stakeholders are engaged and participate in the update process to facilitate community buy-in; 4. Achieve milestones with sufficient time for City and state oversight and review; and 5. Effectively coordinate with other consultants and City staff IV. SCOPE OF WORK The scope of work for the proposed Housing Element Update shall include the following tasks:  Task 1: Project Schedule The consultant shall develop a timeline/ project schedule with milestones, deadlines, meetings, and work products for the certification of the Housing Element by HCD. The project schedule shall include a detailed explanation of all stages of the project, including, at a minimum: 1. Kick off meeting with City staff to refine the scope of services; 2. Public outreach, workshops and public hearings; 3. Delivery of analysis and findings during assessment and development of the Housing Element Update; 4. Response to HCD review and City staff review times; 5. Delivery of draft and final draft Housing Element; Recommended minimum deliverables: - refined scope of services, budget, and project schedule - agenda and meeting summary for kick-off meeting  Task 2: Assessment and Analysis The Consultant shall prepare an assessment and analysis of the existing housing supply and resources. The Consultant shall also prepare an implementation program to meet the requirements of State housing law. This shall include the following: Evaluation of 2014-2021 Housing Element. The Consultant shall review and evaluate the current Housing Element and associated programs to determine the revisions necessary to comply with current State law mandates and to ensure certification by HCD. Housing Assessment and Needs Analysis. In accordance with Government Code 65583, the consultant shall complete a housing assessment consisting of the identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate D-4 sites for housing, including rental housing, factory-built housing, mobile homes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community. Adequate Sites Analysis & Constraints. In accordance with Government Code Section 65583, the Consultant shall prepare an “adequate sites analysis and inventory” showing the relationship between the City’s Regional Housing Needs Assessment (RHNA) allocation at all income levels and “land suitable for residential development”, as outlined in Government Code Section 65583.2, including the dwelling unit capacity, availability of potential housing sites based on zoning, infrastructure, and General Plan policies, requirements, while considering unique constraints within the community. Housing Goals, Policies, and Quantified Objectives. The Consultant must formulate an eight-year implementation plan with appropriate and implementable housing policies and quantified objectives. This work will need to satisfy the applicable requirements of State law. Recommended minimum deliverables: - electronic copy of all reports in Microsoft Word and PDF formats - GIS layer and shape files for housing opportunity sites  Task 3: Public Engagement The Consultant shall facilitate and attend up to (2) community workshops. The Consultant shall prepare and implement a program for public engagement to encourage comprehensive public participation throughout the process, identifying different outreach phases with goals, objectives, programming, and a proposed budget. Public engagement approaches should seek to provide inclusive engagement (including vulnerable populations, such as seniors, disabled, and affordable housing advocates), clarify community values, collect meaningful data, and ultimately turn community input into community ownership of the process and plan. The program should consider COVID-19 health restrictions and identify creative solutions to promote and encourage public participation during the pandemic. Recommended minimum deliverables: - public engagement program - web and social media based information sharing platform - materials for events and meetings including large-scale graphics - stakeholder interviews - two (2) community meetings - public engagement (visioning) summary report  Task 4 - Planning Commission and City Council Workshops D-5 In addition to the public engagement process, the Consultant shall facilitate two public hearings/workshops with the Planning Commission and two public hearings/workshops with the City Council. The purpose of the public hearings/workshops is to present constraints, programs, and policies to the Planning Commission and City Council, to allow feedback, and to obtain support. Recommended minimum deliverables: - attendance and material for one (1) Planning Commission workshop - attendance and material for one (1) City Council workshop  Task 5- Draft 2021–2029 Housing Element: The Consultant shall be required to prepare and submit an Administrative Draft Housing Element for staff review and comment. Once staff has reviewed and commented on the draft, the Consultant shall modify the Administrative Draft as directed. Upon approval of the Administrative Draft Housing Element, the Consultant shall then prepare a public draft Housing Element for the City to provide to HCD, the City Council, the Planning Commission and the general public for review and comment. Recommended minimum deliverables: - electronic copy of administrative draft 2021-2029 Housing Element in Microsoft Word format - electronic copy of public draft 2021-2029 Housing Element in Microsoft Word and PDF format  Task 6: General Plan Consistency & Environmental Review 6A. General Plan Amendment. The Consultant shall identify sections of the City’s General Plan Land Use Element that may need to be amended to be in compliance with State law, and consistent with the 2021-2029 Housing Element. Recommended minimum deliverables: - electronic copy of the report in Microsoft Word and PDF formats 6B. CEQA Compliance. The Consultant shall prepare, post, respond, and file the necessary associated environmental documents and technical studies (Categorical Exemption, Initial Study, Negative Declaration or Mitigated Negative Declaration, and responses to public comments), or Environmental Impact Report. Recommended minimum deliverables: - required noticing and filing, including those required for AB 52 (Chapter 532, Statutes of 2014) and SB 18 (Chapter 905, Statutes of 2004) compliance - scoping meeting materials - draft and final project description - administrative Draft, Public Draft and Final EIRs (if necessary) - technical Studies - response to comments D-6 - findings of fact and statement of overriding considerations (if necessary) - GIS data and maps created for the EIR (if necessary)  Task 7 - Public Hearings Staff anticipates that two public hearings will be required before the Planning Commission and two public hearings will be required before the City Council as noted above to adopt the Final Housing Element. Recommended minimum deliverables: - attendance and material for two (2) Planning Commission hearings - attendance and material for two (2) City Council hearings  Task 8 - Final Housing Element The Consultant shall prepare the final Housing Element, including any changes that occurred during the public hearings. Recommended minimum deliverables: - electronic copy of final Housing Element in Microsoft Word and PDF formats  Task 9 - State Certification The Consultant shall develop a project timeline leading to HCD certification of the Housing Element and must follow through with assisting the City in achieving State certification of the Housing Element after adoption by the City. The Consultant shall work closely with HCD and the City to ensure that City meets State requirements and will recommend modification to the adopted Housing Element, if required to obtain certification. V. PROPOSAL AND QUALIFICATIONS - FORMAT AND CONTENTS Consultants interested in being considered should submit a written proposal, including the firm’s qualifications. The proposal should demonstrate that the proposer has the appropriate background, experience, staff and technical capabilities to adequately provide services to achieve the Scope of Work described in the previous section. To insure the proposer is capable of providing this level of service, the following minimum qualifications must be met:  The proposer must possess and demonstrate extensive experience in providing the described Scope of Work to municipal governments;  The proposer must carry adequate professional liability insurance (see attached standard City contract services agreement); and,  The proposer must possess the ability and tools necessary to provide the described services. The proposal should include, at minimum, the following: D-7 1. Name, address and phone number of the interested consulting firm and contact person. 2. A statement of any possible conflict of interest the proposer may have in providing the requested services. 3. Detailed narrative statement including a description of the firm’s proposed approach to providing the above-described Scope of Work; describe the overall philosophy and management approach of the proposed team. general summary of the Scope of Work as the proposer perceives or envisions it. 4. Statement of Qualifications outlining the firm’s previous relevant project experience including samples, descriptions, and other pertinent details. 5. Detailed narrative describing exemplary customer service philosophy and practices; 6. An organizational chart showing the names and resumes of the primary consulting manager and key personnel who would provide the services to the City of Rancho Palos Verdes, along with their background, experience and qualifications; 7. Hourly billing rate of key personnel who would be providing the requested services; 8. Cost for providing the requested services; 9. A detailed scope of work and cost estimate by task and by person. Cost estimate must also include an estimate of reimbursable expenses. The estimate should be specific to minimize variable costs to the greatest degree possible. Also include the mark-up for reimbursable expenses. 10. The names, addresses, and telephone numbers for a minimum of three references from other governmental municipalities or entities where similar work has been performed. Any additional information that the consultant wishes to submit may be attached in the form of appendices to the proposal. All proposals shall state that the proposal shall remain valid for a period not less than ninety (90) days from the date of submittal. VI. REQUESTS FOR CLARIFICATION Requests for clarification of the information contained herein shall be submitted in writing prior to 5:30 p.m. on Monday, October 5, 2020. Requests for clarification shall be submitted only to the City employee whose contact information is listed in this proposal. Responses to any clarification questions will be provided to all vendors from whom proposals have been requested. Such requests for clarification should be kept to a minimum due to the short response time for proposals. VII. DELIVERY OF PROPOSAL Proposals may be electronically submitted via email to octavios@rpvca.gov no later than 5:30 pm on Thursday, October 22 2020. Alternatively, one (1) printed copy and one (1) electronic copy on USB flash drive shall be submitted no later than 5:30 pm on Thursday, October 22, 2020, to the Community Development Department, City of Rancho Palos Verdes, 30940 Hawthorne D-8 Boulevard, Rancho Palos Verdes, CA 90275, Attn: Octavio Silva, Deputy Director of Community Development. VIII. INTERVIEW The City tentatively anticipates interviewing the top contending firms on Thursday, November 5, 2020. A confirmation letter identifying the final interview date and time will be provided approximately one week prior to the scheduled interview. Contending proposers will be required to attend the scheduled interview, which may consists of a virtual interview. The selection process criteria will include, but not be limited to, quality of personnel and past work as demonstrated through references, clarity and completeness of the schedule, the ability to begin work immediately, the ability to demonstrate unconventional thinking and to problem solve, and perceived value in terms of fee and deliverables. IX. INSURANCE REQUIREMENTS The City will require the selected proposer to provide insurance, and proof thereof, as follows: Insurance Coverages. Without limiting Consultant’s indemnification of City, and prior to commencement of any services under this Agreement, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. 1. General liability insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 2. Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Services to be performed under this Agreement, including coverage for any owned, hired, non- owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. 3. Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement. D-9 4. Workers’ compensation insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). All required insurance shall name the City, its elected and appointed officers, employees and agents as additional insured, and shall be procured and maintained at the consultant’s sole expense. All required insurance must be in a form and content satisfactory to the City. X. SELECTION PROCESS Following the receipt of proposals from interested consultants, staff will review the proposals for the purpose of selecting one consultant for recommendation to the City Council. Staff has included, as “Exhibit A”, a draft copy of the proposed Service Agreement to facilitate a quicker process, as a consultant recommendation is scheduled to be presented to the City Council for approval on Tuesday, November 17, 2020. Please include in the proposal any objections to specific terms in the proposed draft contract. Selection criteria will include, but not be limited to, the following: 1. Demonstrated background and experience 2. Completion of Submittal Requirements 3. References 4. Depth of resources to perform work 5. Customer Service 6. Cost 7. Creativity XI. SELECTION SCHEDULE The Request for Proposal and Qualifications draft schedule is as follows:  September 28, 2020 RFP issued  October 5, 2020 Requests for Clarifications  October 22, 2020 Response to RFP due to City by 5:30 PM  November 5, 2020 Interview  November 6, 2020 Firm selected by staff  November 17, 2020 Recommendation to City Council The draft schedule described above is subject to change at the sole discretion of the City of Rancho Palos Verdes. D-10 XII. DISCRETION Nothing contained in this Request for Proposal shall create any contractual relationship between any proposer and the City. The City reserves the right, in its sole discretion, to accept or reject any or all proposals without prior notice and to waive any minor irregularities or defects in a proposal. The City shall not be liable for any expenses incurred by any individual or organization in connection with the preparation of a proposal. The City reserves the right to request and obtain, from one or more of the proposers, supplementary information as may be necessary for City staff to analyze the proposal pursuant to the selection criteria. The City may require prospective consultants to participate in additional rounds of more refined submittal before the ultimate selection of a consultant team is made. These rounds could encompass revisions of the submittal criteria in response to the nature and scope of the initial proposal. The Consultant, by submitting a response to this Request for Proposal (RFP), waives all right to protest or seek any legal remedies whatsoever regarding any aspect of this RFP. The City may choose to interview one or more of the firms/companies responding to this RFP. D-11 “EXHIBIT A” CITY OF RANCHO PALOS VERDES CONTRACT SERVICES AGREEMENT FOR ________________ THIS PROFESSIONAL SERVICES AGREEMENT (herein “Agreement”) is made and entered into this ____ day of _______, 2020, by and between the CITY OF RANCHO PALOS VERDES, a California municipal corporation (“City”) and ______________ (herein “Consultant”). NOW, THEREFORE, the parties hereto agree as follows: 1. SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all of the terms and conditions of this Agreement, the Consultant shall perform the work or services set forth in the “Scope of Services” attached hereto as Exhibit “A” and incorporated herein by reference. Consultant warrants that it has the experience and ability to perform all work and services required hereunder and that it shall diligently perform such work and services in a professional and satisfactory manner. 1.2 Compliance With Law. All work and services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency of competent jurisdiction. 1.3 California Labor Law. If the Scope of Services includes any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, Section 16000 et seq., and if the total compensation is $1,000 or more, Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws. 1.4 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the services required by the Agreement. 1.5 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern. 2. COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with the “Schedule of Compensation” attached D-12 hereto as Exhibit “C” and incorporated herein by this reference, but not exceeding the maximum contract amount of ______________________________ Dollars ($________) (“Contract Sum”). 2.2 Invoices. Each month Consultant shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance. By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of the Agreement. The invoice shall detail charges for all necessary and actual expenses by the following categories: labor (by sub- category), travel, materials, equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be detailed by such categories. Consultant shall not invoice City for any duplicate services performed by more than one person. City shall independently review each invoice submitted by the Consultant to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Consultant which are disputed by City, City will use its best efforts to cause Consultant to be paid within forty five (45) days of receipt of Consultant’s correct and undisputed invoice; however, Consultant acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by the City of any invoice provided by the Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law. 2.3 Additional Services. City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer to the Consultant, incorporating therein any adjustment in (i) the Contract Sum for the actual cost of the extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Consultant. Any increase in compensation of up to ten percent (10%) of the Contract Sum but not exceeding a total contract amount of Five Thousand Dollars ($5,000) or in the time to perform of up to ninety (90) days may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. No claim for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed. 3. PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. Consultant shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by the Consultant, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding thirty (30) days cumulatively. D-13 3.3 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of the Agreement pursuant to this Section. 3.4 Term. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) year from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”). 4. COORDINATION OF WORK 4.1 Representative of Consultant. ____________________________ is hereby designated as being the representative of Consultant authorized to act on its behalf with respect to the work and services specified herein and make all decisions in connection therewith. All personnel of Consultant and any authorized agents shall be under the exclusive direction of the representative of Consultant. Consultant shall utilize only competent personnel to perform services pursuant to this Agreement. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and subcontractors, and shall keep City informed of any changes. 4.2 Contract Officer. ______________________________ [or such person as may be designated by the City Manager] is hereby designated as being the representative the City authorized to act in its behalf with respect to the work and services specified herein and to make all decisions in connection therewith (“Contract Officer”). 4.3 Prohibition Against Subcontracting or Assignment. Consultant shall not contract with any entity to perform in whole or in part the work or services required hereunder without the express written approval of the City. Neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. Any such prohibited assignment or transfer shall be void. 4.4 Independent Consultant. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of City with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City, or that it is a member of a joint enterprise with City. D-14 5. INSURANCE AND INDEMNIFICATION 5.1 Insurance Coverages. Without limiting Consultant’s indemnification of City, and prior to commencement of any services under this Agreement, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. (a) General liability insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. (b) Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Services to be performed under this Agreement, including coverage for any owned, hired, non- owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. (c) Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement. (d) Workers’ compensation insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). (e) Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein. (f) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit “B”. 5.2 General Insurance Requirements. (a) Proof of insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. D-15 (b) Duration of coverage. Consultant shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, its agents, representatives, employees or subconsultants. (c) Primary/noncontributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non- contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured. (d) City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (e) Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or that is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved b y the City’s Risk Manager. (f) Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (g) Enforcement of contract provisions (non-estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (h) Requirements not limiting. Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. D-16 (i) Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. (j) Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. (k) Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (l) Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (m) Pass through clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review. (n) Agency’s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation. (o) Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. (p) Timely notice of claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. (q) Additional insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 5.3 Indemnification. To the full extent permitted by law, Consultant agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified D-17 Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, invitees, or any individual or entity for which Consultant is legally liable (“indemnitors”), or arising from Consultant’s or indemnitors’ reckless or willful misconduct, or arising from Consultant’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, except claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions. The indemnity obligation shall be binding on successors and assigns of Consultant and shall survive termination of this Agreement. 5.4 RECORDS, REPORTS, AND RELEASE OF INFORMATION 5.5 Records. Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (the “books and records”), as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services and shall keep such records for a period of three years following completion of the services hereunder. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. 5.6 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement or as the Contract Officer shall require. 5.7 Confidentiality and Release of Information. (a) All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than the City without prior written authorization from the Contract Officer. (b) Consultant shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant gives the City notice of such court order or subpoena. (c) If Consultant provides any information or work product in violation of this Agreement, then the City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct. D-18 (d) Consultant shall promptly notify the City should Consultant be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder. The City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with the City and to provide the City with the opportunity to review any response to discovery requests provided by Consultant. 5.8 Ownership of Documents. All studies, surveys, data, notes, computer files, reports, records, drawings, specifications, maps, designs, photographs, documents and other materials (the “documents and materials”) prepared by Consultant in the performance of this Agreement shall be the property of the City and shall be delivered to the City upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by the City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Moreover, Consultant with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City. 6. ENFORCEMENT OF AGREEMENT AND TERMINATION 6.1 California Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Los Angeles, State of California. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of Los Angeles, State of California. 6.2 Disputes; Default. In the event that Consultant is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, the City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, if circumstances warrant. During the period of time that Consultant is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. If Consultant does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. 6.3 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code Sections 905 et. seq. and 910 et. seq., in order to pursue any legal action under this Agreement. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or D-19 different times, of any other rights or remedies for the same default or any other default by the other party. 6.4 Termination Prior to Expiration of Term. This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Contract at any time, with or without cause, upon thirty (30) days’ written notice to Consultant, except that where termination is due to the fault of the Consultant, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, the Consultant reserves the right to terminate this Contract at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of the City, the period of notice may be such shorter time as the Consultant may determine. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Consultant has initiated termination, the Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer. In the event the Consultant has initiated termination, the Consultant shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder, but not exceeding the compensation provided therefore in the Schedule of Compensation Exhibit “C”. In the event of termination without cause pursuant to this Section, the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2. 6.5 Termination for Default of Consultant. If termination is due to the failure of the Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated. 7. MISCELLANEOUS 7.1 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class in the performance of this Agreement. Consultant shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class 7.2 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Consultant, or any successor in interest, in the event of any default or breach by the City or for any amount, which may become due to the Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. D-20 7.3 Notice. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of Rancho Palos Verdes, 30940 Hawthorne Blvd., California 90275 and in the case of the Consultant, to the person(s) at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section. 7.4 Integration; Amendment. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 7.5 Severability. In the event that part of this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 7.6 Waiver. No delay or omission in the exercise of any right or remedy by non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. A party’s consent to or approval of any act by the other party requiring the party’s consent or approval shall not be deemed to waive or render unnecessary the other party’s consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.7 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which any be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees, whether or not the matter proceeds to judgment. 7.8 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 7.9 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. D-21 7.10 Warranty & Representation of Non-Collusion. No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Consultant warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement. Consultant further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any agreement. Consultant is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect. Consultant’s Authorized Initials _______ 7.11 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties. [Signatures On The Following Page] D-22 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written. CITY: CITY OF RANCHO PALOS VERDES, a municipal corporation Doug Willmore, City Manager ATTEST: Emily Colborn, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP William W. Wynder, City Attorney CONSULTANT: By: Name: Title: By: Name: Title: Address: Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT’S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY. D-23 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF LOS ANGELES On __________, 2018 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_______________________________ ______________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) _____________________________________________ _____________________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that docum ent. D-24 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF LOS ANGELES On __________, 2018 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within in strument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_______________________________ ______________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) _____________________________________________ _____________________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. D-25 EXHIBIT “A” SCOPE OF SERVICES I. Consultant will perform the following services: A. B. C. II. As part of the Services, Consultant will prepare and deliver the following tangible work products to the City: A. B. C. III. In addition to the requirements of Section 6.2, during performance of the Services, Consultant will keep the City updated of the status of performance by delivering the following status reports: A. B. C. IV. All work product is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City. V. Consultant will utilize the following personnel to accomplish the Services: A. B. C. D-26 EXHIBIT “B” SPECIAL REQUIREMENTS (Superseding Contract Boilerplate) D-27 EXHIBIT “C” SCHEDULE OF COMPENSATION I. Consultant shall perform the following Services at the following rates: RATE TIME SUB-BUDGET A. Task A ___________ ___________ ___________ B. Task B ___________ ___________ ___________ C. Task C ___________ ___________ ___________ D. Task D ___________ ___________ ___________ E. Task E ___________ ___________ ___________ II. A retention of ten percent (10%) shall be held from each payment as a contract retention to be paid as a part of the final payment upon satisfactory completion of services. III. Within the budgeted amounts for each Task, and with the approval of the Contract Officer, funds may be shifted from one Task subbudget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Services are approved per Section 2.3. IV. The City will compensate Consultant for the Services performed upon submission of a valid invoice. Each invoice is to include: A. Line items for all the work performed, the number of hours worked, and the hourly rate. B. Line items for all materials and equipment properly charged to the Services. C. Line items for all other approved reimbursable expenses claimed, with supporting documentation. D. Line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services. V. The total compensation for the Services shall not exceed the Contract Sum as provided in Section 2.1 of this Agreement. VI. Consultant’s billing rates for all personnel are attached as Exhibit C-1. D-28 EXHIBIT “D” SCHEDULE OF PERFORMANCE I. Consultant shall perform all services timely in accordance with the following schedule: Days to Perform Deadline Date A. Task A ______________ ______________ B. Task B ______________ ______________ C. Task C ______________ ______________ II. Consultant shall deliver the following tangible work products to the City by the following dates. A. B. C. III. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2. D-29