9.15.22 Merced County Sixth Cycle
Multi-Jurisdictional Housing Element
California housing element law requires every jurisdiction to prepare and adopt a housing element as part of their required general plans. Historically each jurisdiction has prepared its own separate general plan and housing element. However, with the onset of the new Affirmatively Furthering Fair Housing requirements for the sixth cycle housing elements, some jurisdictions in other regions are deciding to pursue a multi-jurisdictional housing element to address the added complexity and cost. This is a unique but increasingly popular approach to ensuring all local jurisdictions within the county are compliant with housing element law. Timely compliance is important as many grants and funding opportunities require a current housing element.
Challenges of 6th Cycle Housing Elements
• New legislation has increased the level of analysis and community engagement, added new requirements for suitable sites inventory, and robust requirements related to fair housing • The complexity of the new requirements equate to a substantial commitment in cost and staff time • The added components require more time – we need to start ASAP (due Feb 2024, and this typically takes 18-24 months to prepare)
• The housing element update will trigger other required general plan updates: safety element (SB 379) and environmental justice element (SB 1000)
Opportunities with a Multi-jurisdictional Effort
• Economies of scale: the required background report, standardized policies and programs, CEQA compliance, and a combined community engagement effort will save jurisdictions time and money • Compliance with housing element law for jurisdictions that may not have the staff or funding to pursue an individual housing element
• A cohesive approach to addressing new requirements and coordination with HCD, the state agency in charge of certifying the housing element
• Requires only one consultant procurement at a time when housing consultants are in high demand Target Timeline for Next Steps
Sept. 2, 2022 Dec. 1, 2022 January 2023 February 2024
MCAG released
RFP for consultant
(Due Sept. 30)
Deadline for jurisdictions to
adopt resolution confirming
participation.
Dec. 15: Consultant contract to
MCAG Gov. Board for approval
Dec. 30: Deposit to MCAG due
Project Kick-Off MJHE must be
adopted by each
jurisdiction and
certified by HCD
(120-day grace period)
Additional Details
• The total consultant contract is unknown until proposals are received but is estimated at $1 million.
This cost can be offset with REAP 1 funds but will otherwise be the responsibility of the jurisdictions. • The jurisdictions will work with MCAG to develop a cost sharing arrangement. • MCAG will serve as fiscal agent and contract manager.
Questions? Please contact either Stacie Guzman, Executive Director, at [email protected] or Meg Prince, Senior Planner, at [email protected]
9.15.22 HOUSING ELEMENT COMPLIANCE MAKES YOU ELIGIBLE FOR MORE FUNDING!
Various state grant and loan programs require an HCD-certified housing element. Examples of active state funding sources that require housing element compliance for eligibility include:
• Permanent Local Housing Allocation (PLHA)
• Affordable Housing and Sustainable
Communities (AHSC)
• SB 1 Planning Grants
• CalHOME Program
• Infill Infrastructure Grants (IIG)
• Prohousing Designation Program
• Local Housing Trust Fund Program (LHTF)
THERE ARE CONSEQUENCES FOR NOT HAVING AN UPDATED HOUSING ELEMENT In April 2021, California’s Housing and Community Development (HCD) department issued guidance to cities and counties about the consequences of falling short in adopting or otherwise complying with previously adopted housing elements. There are serious penalties for not complying.
HCD is authorized to review any action or failure to act by a local government that it determines is inconsistent with an adopted housing element or housing element law. This includes failure to implement program actions included in the housing element. HCD may revoke housing element compliance if the local government’s actions do not comply with state law. Examples of penalties and consequences of housing element noncompliance:
Law Suits and Attorney Fees
Local governments with noncompliant housing elements are vulnerable to litigation from housing rights’ organizations, developers, and HCD. If a jurisdiction faces a court action stemming from its lack of compliance and either loses or settles the case, it often must pay substantial attorney fees to the plaintiff’s attorneys in addition to the fees paid by its own attorneys. Potential consequences of lawsuits include mandatory compliance within 120 days, suspension of local control on building matters, and court approval of housing developments.
Loss of Permitting Authority
Courts have authority to take local government residential and nonresidential permit authority to bring the jurisdiction’s General Plan and housing element into substantial compliance with State law. The court may suspend the locality’s authority to issue building permits or grant zoning changes, variances, or subdivision map approvals – giving local governments a strong incentive to bring its housing element into compliance.
Financial Penalties
Court-issued judgements directing the jurisdictions to bring its housing element in substantial compliance with state housing element law. If a jurisdiction’s housing element continues to be found out of compliance, courts can multiply financial penalties by a factor of six.
Court Receivership
Courts may appoint an agent with all powers necessary to remedy identified housing element deficiencies and bring the jurisdiction’s housing element into substantial compliance with housing element law.
Source: California Department of Housing and Community Development (April 2021). Housing Element Noncompliance Consequences. https://hcdcagov.app.box.com/s/kaz1lly4bfxhsr3ty2lvaz6l5s8k0i54