COUNTY OF SAN MATEO

Inter-Departmental Correspondence

ENVIRONMENTAL SERVICES AGENCY

DATE:

July 31, 2006

BOARD MEETING DATE:

August 15, 2006

SPECIAL NOTICE/HEARING:

No

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Marcia Raines, Director of Environmental Services Agency

SUBJECT:

Consideration of a resolution authorizing San Mateo County to become a member of a Countywide “Sub-region,” an entity that would locally administer ABAG’s Regional Housing Needs Allocation Process (RHNA).

RECOMMENDATION

Adopt a resolution authorizing San Mateo County to become a member of countywide “sub-region” to administer ABAG’s Regional Housing Needs Allocation Process (RHNA) on a local level.

VISION ALIGNMENT

Commitment: Offer a full range of housing choices.

Goal 9: Housing exists for people at all income levels and for all generations of families.

Commitment: Responsive effective and collaborative government.

Goal 22: County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County.

Commitment: Leaders work together across boundaries to preserve and enhance our quality of life.

Goal 23: Leaders throughout the County provide the impetus for broader regional solutions in land use, housing, childcare, education, health, and transportation.

BACKGROUND

New State Law

State law (Section 65584.03 of the California Government Code) now allows the County and cities within the County to join together to form a “sub-region,” a consortium that would administer the State mandated Regional Housing Needs Allocation (RHNA) program at the local level. Each member jurisdiction of a “sub-region” must submit a resolution to the Association of Bay Area Governments (ABAG) and the City/County Association of Governments (C/CAG) requesting authority to locally administer the program by August 31, 2006. ABAG would then adopt a resolution approving the formation of the “sub-region.”

The process would locally allocate housing capacity targets through the year 2014 to all jurisdictions in the County who joined the “sub-region”. These allocations would be included in the Housing Element update process in 2009.

Composition of a “Sub-Region”

A “sub-region” may be comprised of two or more contiguous cities in a county. C/CAG is coordinating the creation of a countywide “sub-region.” All cities and the County in San Mateo County have been asked by C/CAG to adopt resolutions authorizing them to become a participating member of a “sub-region”. C/CAG and County Department of Housing will cooperate to provide facilitation and support as necessary for administering this process.

Timeline

The “sub-region” comprised of all participating cities and the County, must adopt a methodology, including rules and guidelines, for distributing allocations to participating members of the “sub-region” by March of 2007. The “sub-region” would receive a housing allocation from ABAG on May 1, 2007. By June 30, 2007, the member jurisdictions of the “sub-region” would distribute draft housing allocations among themselves. Local jurisdictions may request revisions to their draft housing allocations. Local jurisdictions have 60 days to file an appeal to the “sub-region.” The “sub-region” must hold a public hearing to hear the appeal. Between February and April of 2008, the “sub-region” must issue the final housing allocations. C/CAG and Department of Housing will cooperate to provide facilitation and support for administering the process.

Procedures

“Sub-regions” must follow the same substantive and procedural rules and guidelines that ABAG follows when distributing housing allocations. By March of 2007, the “sub-region” must also enter into an agreement with ABAG, known as “the allocation methodology”, that specifies the process, timing, and other terms and conditions for administering the local housing needs determination process.

DISCUSSION

Increased Local Control

Creating a “sub-region” in San Mateo County to administer the allocation process significantly increases local control. Members of the “sub-region” will have the flexibility to negotiate with other members adjustments to their allocations. Jurisdictions that want fewer units might offer incentives to other jurisdictions that might accept additional units. Incentives could include cash payments to help subsidize the cost of providing services for new development or the costs of roadway and transportation improvements. Or, perhaps, jurisdictions that want fewer units would agree to make cash payments to the Housing Endowment and Regional Trust of San Mateo County to help build more housing in the County. At present, the various techniques for negotiating allocations within the “sub-region” are unspecified. Between September and December of 2006, the “sub-region”, if formed, would develop these techniques as part of the development of the methodology.

FISCAL IMPACT

The cost of participating in the “sub-region” for each jurisdiction is difficult at this time to specify. Some cost would be associated with County staff participation. Any additional County costs would be born by the Department of Housing out of existing funds budgeted for facilitating countywide collaboration to stimulate housing production.

It is anticipated that Community Development and Housing Directors from all participating jurisdictions would be asked to serve in some way in the development of the process. Planning and Housing staff from each jurisdiction would also be asked to serve. The specific amount of time and the specific role that all staff members would play is unspecified at this time.