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ABAG Frequently Asked Questions about RHNA (July 2020) 5 <br />The four income categories included in the RHND are: <br />• Very Low Income: 0-50% of Area Median Income <br />• Low Income: 50-80% of Area Median Income <br />• Moderate Income: 80-120% of Area Median Income <br />• Above Moderate Income: 120% or more of Area Median Income <br /> <br />What will the actual RHND and RHNA numbers look like this cycle? <br />In a letter dated June 9, 2020, the California Department of Housing and Community Development (HCD) provided ABAG with the Regional Housing Needs Determination (RHND) for use in this cycle of RHNA in the Bay Area. Regional Housing Needs Determination from HCD: San Francisco Bay Area <br />Income Category Percent Housing Unit Need <br />Very Low 25.9% 114,442 <br />Low 14.9% 65,892 <br />Moderate 16.5% 72,712 <br />Above Moderate 42.6% 188,130 <br />Total 100% 441,176 <br /> <br />The methodology which will determine each local government’s share of the overall regional <br />housing needs is currently being developed and is slated for release in fall 2020. <br /> <br />How did HCD develop the RHND? <br />HCD is responsible for determining the number of housing units for which each region must plan, <br />known as the Regional Housing Needs Determination (RHND). The RHND is based on a <br />population forecast for the region from the California Department of Finance (DOF) and the <br />application of specific adjustments to determine the total amount of housing needs for the region. <br /> <br />The adjustments are a result of recent legislation that sought to incorporate an estimate of <br />existing housing need by applying factors related to: <br />• A target vacancy rate for a healthy housing market (defined as no less than 5 percent), <br />• The rate of overcrowding, which is defined as having more than one person per room in <br />each room in a dwelling. <br />• The share of cost burdened households, which is defined as households paying more <br />than 30% of household income on housing costs. <br />The RHNA process only considers the needs of the population in households who are housed in <br />the regular housing market, and excludes the population living in group quarters, which are <br />non-household dwellings, such as jails, nursing homes, dorms, and military barracks. HCD uses <br />the age cohorts of the forecasted population to understand the rates at which people are <br />expected to form households, which can vary for people at different stages of life. This results in <br />812