ABAG staff has developed this tool to support the Housing Methodology Committee (HMC) as they decide on an initial recommendation for a Regional Housing Needs Allocation (RHNA) methodology. ABAG intends for this tool to help the HMC and members of the public explore the impact and geography of the different methodology factors and income allocation approaches discussed in previous HMC meetings. Below is more information on two approaches for the RHNA methodology currently being considered by the HMC.
In this approach, the total number of units allocated to a jurisdiction is identified first using a weighted factor-based methodology, where weights determine the share of the Regional Housing Needs Determination (RHND) to be distributed according to each factor, and the “income shift” is then used to distribute a jurisdiction’s units among the four RHNA income categories. The Income Shift methodology compares a jurisdiction’s distribution of households by income to the distribution for the region. A jurisdiction that has a higher percentage of existing households in a given income category compared to the region receives a smaller share of units in that income category, and vice versa.
In contrast to the Income Shift, the Bottom-Up income allocation approach does not start with a total allocation assigned with a factor-based methodology. Instead, this approach builds up the total allocation by using factors to determine allocations for the four income categories separately. Factors are selected for the lower two income categories, and then for the upper two income categories, and a jurisdiction’s allocation within each income category is determined based on how the jurisdiction scores relative to the rest of the region on the selected factors. The jurisdiction’s total allocation is calculated by summing the results for each income category.