Regional Housing
Needs Allocation (RHNA)
Grover Beach City Council
9/14/26
Government Code § 65584
The Regional Housing Needs Allocation Plan
State-mandated process to identify the share of the state’s housing need for which each jurisdiction must plan over an 8-year period.
RHNA is . . .
A projection of additional housing units needed to accommodate projected household growth of all income levels from the start until the end date of the projection period.
RHNA is not . . . – Prediction of building permit, construction, or housing activity – Limited due to existing land use capacity or growth control (rezoning often necessary to accommodate RHNA) Understanding RHNA
2 The RHNA Process
3 STATE
Housing & Community
Development Department (HCD)
sets broad policy, determines
need (RHNA) 7th Cycle RHNA
• 8 Years: 2028 – 2036.
• Entire region.
• Determination based on: Population,
growth, overcrowding, cost-burden,
income levels, and other factors.
• Input from SLOCOG/Cities and DOF
• HCD drafts/creates the Determination
• SLOCOG submitted objection letter.
(6th Cycle Determination: 10,810) 14,577
15,294
17,041
The RHNA Process
4 SLOCOG
Distributes RHNA between
county/cities; Creates RHNA
Plan
STATE
Housing & Community
Development Department (HCD)
sets broad policy, determines
need (RHNA)
Distribution of the 14,577 units:
• Work with all 8 jurisdictions
• Identify opportunities/constraints
• Develop distribution methodology
• HCD review/approve methodology
• Develop RHNA Plan.
• Adopt Plan and submit to HCD.
SLO Paso
Robles
Pismo
Beach
Morro
Bay
Grover
Beach
AtascaderoArroyo
Grande County
The RHNA Process
5 SLOCOG
Distributes RHNA between
county/cities; Creates RHNA
Plan
STATE
Housing & Community
Development Department (HCD)
sets broad policy, determines
need (RHNA)
COUNTY & CITIES
Control land use planning
and policies that direct
housing production;
Update Housing
Elements, and provide
HCD with annual reports
Update Housing Element:
• RHNA Allocation #
• Housing needs analysis
• Identify sites for RHNA
• Constraints analysis
• Develop Housing Policies and Programs
• Public Engagement
• Prepare Draft for public review
• HCD review for compliance
• Revise and Adopt as needed for HCD certification
The RHNA Process
6 SLOCOG
Distributes RHNA between
county/cities; Creates RHNA
Plan
STATE
Housing & Community
Development Department (HCD)
sets broad policy, determines
need (RHNA)
COUNTY & CITIES
Control land use planning
and policies that direct
housing production;
Update Housing
Elements, and provide
No Certified Housing Element? HCD with annual reports
• City is not in compliance with State Law
• City loses state funding eligibility
• Builder’s Remedy applies (Loss of local control)
• Noncompliance referred to Attorney General for litigation • Substantial financial penalties: Fines of $10k to $100k per month The RHNA Process
7 DEVELOPERS/
BUILDERS
Build units &
infrastructure to meet
community needs
SLOCOG
Distributes RHNA between
county/cities; Creates RHNA
Plan
STATE
Housing & Community
Development Department (HCD)
sets broad policy, determines
need (RHNA)
COUNTY & CITIES
Control land use planning
and policies that direct
housing production;
Update Housing
Elements, and provide
HCD with annual reports
AGENCIES PLAN &
PERMIT
Cities/County outline
standards + process, Decision
makers approve development
DEVELOP & DESIGN
Builders develop land, design
housing and assemble
financing structures
8 CYCLE 7 RHNA TIMELINE
2026
– SLOCOG received HCD Determination on 5/15/26
– SLOCOG filed an objection by 6/15/26
– HCD made final determination of 14,577 on 7/17/26
– COG working with Planning Directors to develop distribution methodology and identify constraints
– SLOCOG Board update in Dec.
– COG submits methodology, HCD has 60 days to review, and COG has 45 to revise methodology
2027
– SLOCOG Board adopts final methodology
– COG issues draft allocation plan by 6/2/27
– Final Plan by 12/15/2027
2028
– Housing Elements are due by 12/15/28
9