Frequently Asked Questions

Housing Element Questions

Why does the housing element need to be updated?

California State law requires local governments update their housing element every eight years. These updates are required because housing needs change over time and housing is critical to ensure economic prosperity and quality of life. Without a certified Element, the County would be ineligible for some of the state and other public affordable housing grants and funds it currently receives or is eligible for. Other public funding opportunities, including those for streets, bike lanes, and other infrastructure could also be jeopardized. The jurisdiction would also be vulnerable to lawsuits for not working proactively to meet its housing needs. Typical remedies for such lawsuits include court orders to meet state certification requirements and, in some cases, court ordered moratoriums on development. These lawsuits are expensive and can have adverse fiscal and economic effects.

What is included in a housing element?

The housing element is a plan that identifies policies and programs a jurisdiction will implement to meet housing demand. housing element components are largely dictated by the State. The housing element must include:

A detailed analysis of a city or county’s demographic, economic, and housing characteristics
A comprehensive analysis of constraints to producing and preserving housing.
A review of progress in implementing current housing policies and programs.
Identification of goals, objectives, and policies, in addition to a full list of programs that will implement the vision of the plan.
A list of sites that could accommodate new housing, demonstrating the jurisdiction’s ability to meet the Regional Housing Needs Assessment (RHNA).

Because the housing element is updated frequently, a jurisdiction’s existing element provides a foundation for this update. This update gives the jurisdiction an opportunity to evaluate the previous element and determine which parts have been effective and which should be improved. Please read the 2015-2023 housing elements for more information on participating jurisdictions’ existing policies and programs

What does Housing Element Law require?

The participating cities must demonstrate that they can accommodate the housing units specified in their RHNA in compliance with a wide range of state rules. Relevant housing legislation addresses several overarching goals:

Accommodate projected housing demand, as mandated by the State,
Increase housing production to meet this demand,
Improve housing affordability,
Preserve existing affordable housing,
Improve the safety, quality, and condition of existing housing,
Facilitate the development of housing for all income levels and household types, including special needs populations,
Improve the livability and economic prosperity of all City residents, and
Promote fair housing choices for all[1].

[1] Fair housing is the right to choose housing free from unlawful discrimination. Federal, state, and local fair housing laws protect people from discrimination in housing transactions such as rentals, sales, lending, and insurance.

What does Housing Element Law require?

Accommodate projected housing demand, as mandated by the State,
Increase housing production to meet this demand,
Improve housing affordability,
Preserve existing affordable housing,
Improve the safety, quality, and condition of existing housing,
Facilitate the development of housing for all income levels and household types, including special needs populations,
Improve the livability and economic prosperity of all City residents, and
Promote fair housing choices for all[1].

Regional Housing Needs Assessment (RHNA) Questions

What is RHNA?

RHNA stands for “Regional Housing Needs Assessment.” The RHNA decides the number of residential units a jurisdiction must plan for in the housing element. The RHNA identifies the number of residential units required for each economic income segment, which includes very-low, low, moderate, and above-moderate incomes. The calculation of income levels is based on Area Median Income (AMI), which for Merced County is $80,300 per year for a household of four. The RHNA for Merced County is 22,620 housing units.

Must cities build the housing required by RHNA?

While cities do not generally build housing – that is the function of private developers – they do adopt plans, regulations, and programs that provide opportunities for how and where housing development occurs. Although the housing element identifies sites that are available in the cities to plan for future housing, it does not mean the property owner is required to build the housing within the next 8 years or any time in the future. Rather, the cities are required to identify sites that are suitable for development and may implement programs to support housing development.

What makes a house affordable to an income group?

The foundation of Housing Element Law is based on the premise that density is a proxy for affordability. More housing units on a site (density) typically translates to lower construction costs per unit, which reduces the rental/sale prices of those units (affordability). Based on this, HCD assigns minimum density figures to each income category.

How will housing locations be selected?

The updated housing plan must identify the locations where future housing can be built and the potential unit capacity of each site. The sites must meet certain criteria and have potential for development during the eight-year planning period. Some of the sites identified may already allow housing

The jurisdictions may establish criteria and eliminate sites based on the following:

Topography is not conducive to development
Sites are not safe because they are environmentally constrained (i.e. in a flood zone or high-fire area)
Sites are located in areas deemed off-limits because they are in an airport flight path

Criteria to support additional housing may include:

Vacant lots not designated as open space
Underutilized sites, such as lots with uses or structures that are no longer needed or need rehabilitation
Locations where existing housing could be redeveloped at higher densities
Locations near public transit and essential services like neighborhood-serving retail centers
Sites where infrastructure, such as water and sewer service, can support more housing

Additionally, per the HCD Site Inventory Guidebook, sites best suited to accommodate the RHNA for lower-income households have access to a variety of resources and opportunities like proximity to transit, access to good schools, and other factors.

The housing opportunity sites plan is also developed with input from residents during the housing element update process. The housing element will align with previous and ongoing planning efforts in the cities and the region.

What about other important topics, like homelessness or the high cost of housing? Are those addressed too?

A housing element discusses issues, trends, and solutions for additional topics relevant to housing, including homelessness and high housing costs.

Affordable Housing Questions

What is affordable or below market rate housing; and what are the definitions of very low, low, moderate and above moderate income?

Affordable, or below market rate housing, is housing that is offered at a price lower than the rate typically seen for housing in the local economy. This is usually possible because of government subsidies and other programs that help lower the price or rent of housing. Affordable housing is usually limited to individuals and families that fit into a specific income category (ranging anywhere from less than 30% of area median income to 120% of area median income).

Jurisdictions are required to facilitate the production of housing that is affordable to households across various income levels. These income categories are defined by the state and are based on varying percentages of the Area Media Income (AMI), in which earning 30% of AMI is considered extremely low income, 50% of AMI is considered very low income. 80% of AMI is considered low income and between 80-120% is considered moderate income. For each income category, housing is considered “affordable” if occupants pay no more than 30% of their income on housing costs.

Click here to view the 2022 income limits in Merced County as set by the State.

Will housing element sites be developed with low-income housing?

The RNHA process attempts to encourage the development of housing at all income levels, with a focus on affordable housing. There is a presumed correlation between density (i.e., the number of housing units per acre) and affordability (i.e., housing built to higher densities is affordable to a greater segment of the population). However, it should be noted that RHNA process does not establish rental rates or sales prices. Ultimately, the type of housing built on these sites will depend on the housing market and local economy.

Community Input Questions

What role does community input play in the housing element update?

A successful housing element is based on an inclusive process in which all residents and local organizations/businesses have the chance to participate. State planning law requires that communities make diligent efforts to engage public participation that includes all stakeholders and income groups. The public process for the housing element update will include various outreach events. Late in the process, there will be formal hearings to adopt the updated housing element. Written public comments regarding issues related to housing are always welcome. If you would like to be contacted regarding future meetings, please join our mailing list.

How can I get involved in the housing element update process?

Please sign up to our mailing list to be notified of the next meeting or opportunity for online input. The success of this update requires extensive community input and engagement. There will be multiple opportunities to participate throughout the update, both in person and online.