2021 Housing Element Update Frequently Asked Questions
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2021 Housing Element Update
Frequently Asked Questions
1. What is a Housing Element?
State law1 requires each city to adopt a comprehensive, long-term General Plan for its
physical development, and the Housing Element has been a mandatory component of
the General Plan since 1969. For cities in Southern California, Housing Element updates
must be prepared every 8 years. The current Housing Element planning period extending
from 2013 to 2021 is called the “5th Housing Element cycle” in reference to the five
required updates that have occurred since the comprehensive revisions to State Housing
Element law in 1980. The next Housing Element update for the 6th cycle must be
prepared by October 2021.
The current Villa Park General Plan2 was comprehensively updated in 2010 and has been
amended several times since then to reflect changing circumstances. The General Plan
includes the following chapters, or “elements”:
• Land Use
• Circulation
• Housing
• Open Space & Conservation
• Safety
• Noise
• Growth Management
State law3 establishes specific, detailed requirements for Housing Elements. The
overarching requirement set forth in State Housing Element law provides:
The housing element shall consist of an identification and analysis of existing and
projected housing needs and a statement of goals, policies, quantified objectives,
financial resources, and scheduled programs for the preservation, improvement, and
development of housing. The housing element shall identify adequate sites for
housing, including rental housing, factory-built housing, mobile homes, and
emergency shelters, and shall make adequate provision for the existing and
projected needs of all economic segments of the community. 4
1 California Government Code Sec. 65300 et seq.
2 http://villapark.org/Departments/Planning/General-Plan?folderId=181&view=gridview&pageSize=10
3 California Government Code Sec. 65580 et seq.
4 California Government Code Sec. 65583
July 2020 Page 12021 Housing Element FAQ
2. What is “certification” of the Housing Element, and why is
it important?
The State Legislature has delegated to the California Department of Housing and
Community Development (“HCD”) the authority to review Housing Elements and issue
findings regarding the elements’ compliance with the law.5 When HCD issues a letter
finding that the Housing Element is in compliance it is referred to as “certification” of the
Housing Element. Certification is important for several reasons:
• Local control of land use. The General Plan and its various elements provide the
legal foundation for the City’s land use plans and zoning regulations. If the City
were challenged in court on a planning or zoning matter and the General Plan
were found by the court to be invalid, the court could order changes to City land
use plans or regulations and assume control over City land use decisions. HCD
certification establishes a “rebuttable presumption of validity”6 that the Housing
Element complies with State law, which would support the City’s legal defense. In
2019, for the first time in State history, the California Attorney General filed a
lawsuit against a city alleging that its Housing Element did not comply with State
law.7 Recent laws also allow for courts to impose fines if a jurisdiction fails to adopt
a compliant Housing Element.8
• RHNA carryover. State law9 provides that if a city does not demonstrate the
availability of sufficient sites to accommodate its Regional Housing Needs
Assessment (RHNA) allocation, the shortfall is carried over and added to the
RHNA for the next planning period. (see also the discussion of RHNA in #6 below)
• More frequent Housing Element updates. When a city does not adopt a Housing
Element within the established timeframe, subsequent updates must be
completed on a 4-year schedule rather than an 8-year schedule until two
consecutive updates have been prepared on time.10
• Eligibility for grant funds. Some State grant funds are either contingent upon
Housing Element certification or give priority to those jurisdictions with a certified
Housing Element.
3. What is the current status of Villa Park’s Housing Element?
Villa Park’s current Housing Element was adopted by the City Council and certified by
HCD as fully compliant with State law in 2017.
5 California Government Code Sec. 65585
6 California Government Code Sec. 65589.3.
7 Governing magazine, 3/19/2019 (https://www.governing.com/topics/urban/gov-california-governor-newsom-
housing.html)
8 AB 101 of 2019
9 California Government Code Sec. 65584.09.
10 California Government Code Sec. 65588(e)(4).
July 2020 Page 22021 Housing Element FAQ
4. What are the most important issues that must be
addressed in the 2021 Housing Element update?
The major issues that must be addressed in the Housing Element are: 1) how City policies,
plans and regulations address regional housing needs for households of all income levels;
and 2) how City land use regulations accommodate the special housing needs of
persons with disabilities or other difficulties.
• Accommodating Housing Needs. Under State law11 all cities are required to plan
for additional housing to accommodate population growth and existing housing
problems such as overpayment12 and overcrowding.13 State law recognizes that
cities generally do not build housing, since that is typically the role of private and
non-profit developers and builders. However, cities are required to adopt policies,
development regulations and standards that encourage a variety of housing
types suitable for persons of all income levels, including multi-family rental housing
and accessory dwelling units (“ADUs”). The RHNA is the method by which each
jurisdiction’s share of new housing needs is determined (see #6 below).
• Housing for Persons with Special Needs. Under State law14 cities must also ensure
that their plans and regulations encourage the provision of housing for persons
with special needs, such as:
✓ Reasonable accommodation for persons with disabilities
✓ Transitional housing
✓ Supportive housing
✓ Emergency shelters and other facilities to serve homeless persons
✓ Farmworker housing
5. What is “affordable” housing?
By definition, housing is considered “affordable” when housing cost, including utilities, is
no more than 30% of a family’s gross income. State law describes five income categories,
which are based on a percentage of county median income as shown in Table 1.
Table 1. Housing Element Income Categories
% of county
Income Category
median income
Extremely low 30% or less
Very low 31 to 50%
Low 51-80%
Moderate 81-120%
Above moderate Over 120%
Source: California Government Code Sec. 65584(f)
11 California Government Code Sec. 65583
12 Overpayment is defined as paying more than 30% of gross household income for housing
13 Overcrowding is defined as more than one person per room, excluding kitchens and bathrooms
14 California Government Code Sec. 65583(a)(5)
July 2020 Page 32021 Housing Element FAQ
Affordable rents and home prices in Orange County that correspond to these income
categories are shown in Table 2, below.
Table 2. Income Categories and Affordable Housing Costs – Orange County
Maximum Affordable Affordable Price
Income Category
Income Rent (est.)
Extremely Low $38,450 $961 (1)
Very Low $64,050 $1,601 (1)
Low $102,450 $2,562 (1)
Moderate $123,600 $3,090 $500,000
Above moderate Over $123,600 Over $3,090 Over $500,000
Assumptions:
-Based on a family of 4 and 2020 State income limits
-30% of gross income for rent or principal, interest, taxes & insurance
-5% down payment, 4.0% interest, 1.25% taxes & insurance, $350 HOA dues
Notes:
(1) For-sale affordable housing is typically at the moderate income level
Source: Cal. HCD; JHD Planning LLC
6. What is the RHNA and how does it affect cities?
Each California city is required to plan for additional housing to accommodate its share
of regional needs. The Regional Housing Needs Assessment (“RHNA”) is the process
established in State law15 by which housing needs are determined.
Prior to each Housing Element planning cycle the total housing need for each region of
California is determined by HCD based upon anticipated economic and demographic
trends, existing housing problems such as overcrowding and overpayment, and
additional housing needed to ensure reasonable vacancy rates and replace units lost
due to demolition or natural disasters. Orange County is part of the Southern California
Association of Governments (“SCAG”) region, which also includes Los Angeles, Riverside
San Bernardino, Imperial and Ventura counties. SCAG16 is a federally-designated
Metropolitan Planning Organization whose governing board is comprised of elected
officials from its member cities and counties. The total housing need for the SCAG region
is then distributed to cities and counties by SCAG based upon objectives established in
State law.17 SCAG is currently preparing the RHNA for the 6th planning cycle, which will
cover the 2021-2029 period.18
In 2019 HCD determined that the total housing need for the SCAG region in the 6 th
planning cycle is 1,341,834 units. Under State law, SCAG must develop a RHNA Plan that
distributes this regional need to the cities and counties within the SCAG region. SCAG has
issued preliminary draft RHNA allocations, which will be subject to review over the
coming months. The preliminary RHNA allocation for Villa Park is 295 additional housing
units. For the 5th planning cycle (2013-2021) SCAG’s total RHNA was about 412,000 units
and Villa Park’s allocation was 14 units.
15 California Government Code Sec. 65584 et seq.
16 More information regarding SCAG can be found at www.scag.ca.gov
17 California Government Code Sec. 65584(d)
18 http://www.scag.ca.gov/programs/pages/housing.aspx
July 2020 Page 42021 Housing Element FAQ 7. Why is the 6th RHNA so high? SCAG’s total RHNA allocation for the 6th cycle is 1,341,827 units compared to 412,137 units in the 5th cycle. There are two main reasons why the region-wide 6th RHNA allocation is so much higher than the 5th cycle. First, the 5th RHNA allocation was established in 2012 while the severe economic effects of the “Great Recession” were still adversely affecting growth. As a result, the 5 th RHNA was uncharacteristically low. For comparison, SCAG’s 4 th cycle (2006-2013) RHNA allocation was approximately 700,000 units. Second, for the 6th cycle the State made a major modification to the process for determining RHNA allocations. In prior RHNA cycles, total housing need was based only on projected population growth. However, for the 6th RHNA cycle the State added existing need to the total RHNA calculation. Existing need includes households that are currently overcrowded (defined as more than one person per room) or are overpaying for housing (defined as more than 30% of gross income). The total 6th cycle RHNA allocation for the SCAG region is comprised of the sum of existing need and projected need, as follows: Existing need: 577,422 units Projected need: 764,405 units Total need: 1,341,827 units As seen from this breakdown, if existing need were not included (as was the case in prior RHNA cycles) the total need would be similar to the 4th cycle RHNA. With regard to jurisdictional RHNA allocations, the methodology established by SCAG for the 6th cycle places greater emphasis on the proximity of jobs and public transit rather than vacant developable land. As a result, the job-rich coastal areas of Los Angeles and Orange counties are assigned a much higher share of the region’s housing need as compared to prior cycles even though they generally have much less vacant land than inland areas. 8. Can RHNA allocations be reduced? HCD issued a draft 6th cycle RHNA allocation to the SCAG region in August 2019. Subsequently, SCAG filed a formal “objection” to the draft RHNA in September 2019. In October 2019, HCD issued the final RHNA allocation to the SCAG region and no further revisions are possible except through litigation. After SCAG publishes official draft RHNA allocations, expected to occur in September 2020, an appeals process must be conducted. Each city and county then may file an appeal of any other jurisdiction’s RHNA allocation. In prior cycles, very few RHNA allocations were modified through the appeal process. Also, the RHNA is a “zero sum game” in which any reduction to the RHNA in a jurisdiction must be offset by an equivalent increase in the RHNA of other jurisdictions. Because SCAG conducted extensive deliberations regarding the RHNA and the final methodology was approved by an overwhelming margin, it appears unlikely that major changes to RHNA allocations will be made through the appeals process. July 2020 Page 5
2021 Housing Element FAQ 9. How will the RHNA affect Villa Park? The Housing Element must demonstrate that the City could accommodate its RHNA allocation for additional housing through appropriate land use plans and zoning standards. State housing policy is based on the premise that all cities, even those without a significant amount of commercial, office or industrial development, generate a need for affordable housing for workers who serve residents of the community such as teachers, police and fire personnel, retail clerks, medical office support staff, home and landscape construction and maintenance workers, public utilities maintenance personnel, etc. If opportunities for lower-cost housing generated by a city’s residents are not provided within that city, the housing needs of those workers are shifted to other jurisdictions. It is important to recognize that the RHNA is a planning target, not a development mandate. There is no requirement that cities achieve their RHNA allocations, although in some cases cities may be required to modify their development review procedures if housing production falls short of RHNA goals.19 State law recognizes that the cost of land and construction vary depending on location, and that large subsidies are often necessary to build housing that is affordable to families in the lower economic tiers. Under RHNA law, cities are held responsible only for the things they have control over, such as land use plans, zoning and development standards, including allowable land uses, lot size and density, building height, parking requirements, yard setbacks and permit review procedures. While State law acknowledges the obstacles to affordable housing development, the law does not allow an exception to Housing Element requirements for high-cost areas or cities with difficult building constraints such as topography.20 State law also explicitly prohibits a reduction in RHNA allocations based upon existing zoning.21 As part of the Housing Element, cities are required to prepare a parcel-specific inventory of sites where additional housing could realistically be built, and demonstrate that sufficient sites are available with appropriate development standards to accommodate new housing commensurate with the RHNA allocation. The focus of this analysis is on sites that could accommodate housing affordable to households in the very-low and low income categories. In most small cities, sites identified as suitable for lower-income housing must allow multi-family rental housing at a density of at least 20 units per acre.22 If sufficient sites are not currently available to accommodate the RHNA allocation in all income categories, zoning must be amended to increase the capacity for housing development commensurate with the RHNA. 19 See, for example, Senate Bill 35 of 2017 http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB35 20 California Government Code Sec. 65583(b)(2) 21 California Government Code Sec. 65584.04(e)(2)(B) 22 California Government Code Sec. 65583.2 (c)(3) July 2020 Page 6
2021 Housing Element FAQ
The RHNA distributes total housing need among the income categories shown previously
in Tables 1 and 2. SCAG’s preliminary 6th cycle RHNA allocation for Villa Park by income
category is shown in Table 3.
Table 3. Preliminary 6th RHNA by Income Category – Villa Park
Extremely Low Above
Low Moderate Total
+ Very Low Moderate
92 59 61 83 295
Source: SCAG, 3/5/2020
As part of the previous Housing Element update, the City’s zoning regulations were
amended to allow multi-family housing on two parcels currently occupied by City Hall,
the library and the office building in the northeast portion of the Town Center. The
amended zoning for these parcels allows multi-family housing at a density of 20 to 24
units per acre. These two parcels total 1.4 acres and could accommodate
approximately 28 to 33 multi-family units at a density of 20 units per acre.
Allowing multi-family housing in other areas of the Town Center could provide additional
potential RHNA capacity. RHNA requirements can also be partially satisfied by potential
accessory dwelling units (ADUs). Recent changes to State law create additional
opportunities and incentives for ADU construction, and HCD has indicated a willingness
to allow higher “RHNA credit” for potential ADUs in 6th Housing Element cycle.
As part of the Housing Element update process, these and other options for satisfying
RHNA requirements will be explored in detail.
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