Housing Element Compliance with Regional Housing Needs Allocation

The Monterey County Housing Element for the unincorporated portions of the County was completed in 2003 and covers the period from 2002 through 2008 (due to one year extension for AMBAG region). On page 43 of the certified Housing Element, it shows the Regional Housing Needs Allocation (RHNA) for the unincorporated portion of the County as 2,804 units serving very low to moderate incomes, and 1,121 units serving above-moderate income households, for a total RHNA of 3,928. Elsewhere in the document, these numbers are adjusted to show the net allocation after accounting for several affordable housing projects which had been completed or were in the pipeline by 2003.

For purposes of this report, the 3,928 units of housing need per the RHNA, including the 2,804 units for very low/low/moderate income housings, is assumed to represent an estimate of each five-year’s cycle of RHNA that will be covered by the 20 year planning horizon of GPU #4 or the Initiative. It should be noted that the actual RHNA numbers will vary for each Housing Element cycle, but future RHNA numbers are not known at this time. In any case, using the most recent RHNA as a rough guide, the next 20 years would result in a total of over 11,000 units needed to serve very low/low/moderate income households throughout the County. If market rate housing prices continue to rise rapidly, depending on formulas used in future Regional Housing Needs Determination planning cycles, these goals could rise even further to meet housing needs.

As shown in Table 4 in the previous section, GPU #4 would produce 3,380 units of very low/low/moderate income housing during the 20 year period of the General Plan, while the Initiative would produce a smaller number of 2,795 units for these same income categories. These total production estimates are for a theoretical 20 year planning horizon, which may at the same time require over 11,000 affordable housing units as a result of each five year RHNA. Thus, neither inclusionary program alone 31 will meet the likely goals of affordable housing provision in Monterey County to 2025.

It is critical to understand that legal requirements regarding inclusionary housing is just one of many tools used in Monterey County and elsewhere to create affordable housing and meet RHNA goals. The Monterey County Housing Element, for example, lists multiple other programs and policies regarding down payment assistance, redevelopment agency “set-aside” financing, second units, and a host of programs all designed to produce a range of affordable housing in the 2002 to 2008 time period covered by the Housing Element. Many of these programs involve financing and other actions to support full or primarily affordable housing projects, typically developed by non-profit housing organizations. Some of the same tools can be used to convert existing units to affordable housing supply. The key link to inclusionary housing and these other housing production activities is the collection of the in-lieu housing fee, which in turn is contributed to the County’s Affordable Housing Fund and then dedicated to support other affordable projects and programs. Thus, comparing new unit production from GPU #4 or the Initiative’s respective inclusionary requirements only depicts part of the future potential for provision of affordable housing units in Monterey County.   [Underline in original.]