What is a Housing Element?

All Cities must adopt a General Plan to serve as a blueprint to guide future development in the community. The Housing Element is one chapter of the General Plan. A Housing Element provides an analysis of a community’s housing needs for all income levels, and strategies to respond to those housing needs. State Law requires that each city accommodate its fair share of housing for all income levels, and the State goes to proscribe how many housing units must be accommodated for each income category. State Housing Element law also mandates that in order to facilitate the construction of housing, local governments must adopt land-use plans and implementing regulations that provide opportunities for, and do not unduly constrain, housing development.

According to State law, the Housing Element must:

• Identify and analyze existing and projected housing needs for all economic segments of the community.
• Provide goals, policies, quantified objectives and scheduled programs to preserve, improve and develop housing.
• Identify adequate sites to meet the city’s fair share of regional housing needs at all income levels within the 8 year housing cycle.
• Be certified (approved) by the State Department of Housing and Community Development (HCD) as complying with state law.

Key content that Novato's Housing Element must contain, include:

• A summary of the population and housing characteristics that contribute to the present and future housing need in Novato.
• A description of constraints on the development of housing in Novato.
• An evaluation of the existing Housing Element.
• An inventory of sites to accommodate Novato's identified housing need.
• Programs to promote housing opportunities for all Novato residents.

Why is the City updating its Housing Element?

Since 1969, Housing Elements have been mandatory portions of local general plans in California because the state legislature found that providing housing for all Californians is of vital statewide importance. To further the goal of providing housing the Housing Element must be updated every eight years. These eight-year periods are referred to as cycles. The City of Novato's 2023-2031 Housing Element Update is being drafted as part of the 6th Cycle Housing Element Update process ongoing throughout the state. It is essential that the Housing Element be updated every eight years so that the analysis and strategies provided are consistent with current trends and best practices. 

 

I've heard the term RHNA, what does that mean?

RHNA is an acronym for Regional Housing Needs Allocation and it is the number of housing units that each jurisdiction must accommodate. The number is derived through a process initiated by the State of California. The State develops projections of how many housing units will be needed statewide. Those housing needs are allocated to regional planning agencies (ABAG), which in turn allocate the required amount of housing to all local cities and counties including Novato.

How are Regional Housing Needs Allocation numbers determined?
This is a complex process that begins with the State of California. The State prepares projections about expected population growth in the state and then allocates a portion of the total state population growth to each region. Regional planning organizations in turn distribute the regional allocation among local jurisdictions. For the Bay Area, the regional planning agency is the Association of Bay Area Governments (ABAG). ABAG established a committee, comprised of elected officials and staff, to develop this cycle's allocation methodology. A full description of ABAG's approved methodology and the region's total allocation numbers can be found here.

Are all of the City of Novato’s assigned housing units (Regional Housing Needs Allocation) for lower income households?
No.  Of the City’s remaining Regional Housing Needs Allocation, 2090 units, over half (1192) are allocated for moderate and above moderate income households.  The remaining 898 are allocated for lower income households.  The following is a breakdown of the City’s Housing Needs Allocation by income level:

Above Moderate (above $179,501)	860
Moderate (up to $179,500)	332
Low (up to $146,350)	338
Very Low (up to $91,350)	570
TOTAL	2090

 

Is Novato being asked to accept more than its fair share of housing?

The objectives of the allocation process influence how housing units are distributed. These objectives may change with every cycle and are established and approved by an ABAG committee comprised of local elected leaders and staff representatives of all local cities and counties. Both the unincorporated areas of Marin and the City of San Rafael received higher allocations than the City of Novato. All areas of the State received much higher numbers than in most recent past cycles. The State has determined the large numbers are necessary to meet a housing deficit.  Though the absolute numbers for smaller communities in Marin are smaller than ours, their relative increases over past cycles are much larger than Novato's.

What is the penalty for not complying with the state Housing Laws, and not having a certified Housing Element?

A Housing Element is considered out of compliance with State law if one of the following applies:

• It has not been revised and updated by the statutory deadline, or
• Its contents do not substantially comply with the statutory requirements. If a Housing Element is certified, there is a presumption that it is adequate, and a plaintiff must present an argument showing that it is in fact inadequate.

Repercussions include:

1. Limited access to State Funding. Jurisdictions that fail to provide a certified Housing Element are ineligible to receive funding through a number of state grant programs — including those programs that fund affordable housing and transportation improvements. Additionally, the jurisdictions that do not implement a certified Housing Element Update risk facing legal challenges to future land use requirements and decisions — which would in turn impact how the city's resources are utilized. For a more detailed look into the penalties for not having a certified Housing Element, see HUD's list of "Consequences for Non-Compliance". Both the California Infrastructure and Economic Development Bank (CIEDB) and the Bay Area's Metropolitan Transportation Commission (MTC) award funds based on competitions that take into consideration the approval status of a community's Housing Element.
   
   
2. Lawsuits. Developers and advocates may sue jurisdictions if their Housing Element is not compliant with State Law.  Recent Bay Area cities that were successfully sued in the past cycle include Corte Madera, Pittsburg, Pleasanton, Alameda, Benicia, Fremont, Rohnert Park, Berkeley, Napa County, and Santa Rosa.

What is Affordable Housing?  

The generally accepted measure for housing affordability is spending less than 33% of one’s gross household income on housing. There are four income categories that the State requires cities and counties to plan for. Those are: Very Low Income, Low Income, Moderate Income, and Above Moderate Income. Based on the income levels specified for each category, the amount an individual in each group can send on housing is calculated and the rent or purchase price of housing is determined.

What are the income levels assigned to the (four) household income categories?  

Pursuant to the most recent income level data from the State Department of Housing and Community Development, dated December 31, 2021, the Median Family Income (MFI) in Marin County was 149,600.  For the four identified household income categories, household income levels (for four-person households) are defined as follows:

• Very Low Income: Households with incomes between $54,801 and $91,350.
• Low Income: Households with incomes between 51 percent and 80 percent of MFI $91,351 and $146,350.
• Moderate Income: Households with incomes between 81 percent and 120 percent of MFI ($146,351 and $179,500).
• Above Moderate Income: Households with incomes greater than 120 percent of MFI (over $179,501).

What are typical occupations, based on salary range, that fall within the four income categories based on a family of four?

Typical occupation by Income categories:

• Very Low: up to $91,350 Postal Service, Clerk
• Low: up to $146,350 Middle School Teacher
• Moderate: up to $179,500 Civil Engineer
• Above Mod.: over $179,501 Lawyer

What is the Housing Element Sites Inventory?

The sites inventory (also called the available land inventory or the opportunity sites map) is a crucial part of the Housing Element. In the sites inventory, a jurisdiction identifies where it has capacity to meet its RHNA allocation. The sites inventory is typically presented in the form of a map with a table listing features and characteristics of the properties. State law regulates which sites are eligible for inclusion on the sites inventory, including minimum and maximum size, potential displacement of existing occupants, feasibility of redevelopment on the site, etc.

Will the City be looking for sites for housing?

Probably. There are several housing projects currently in process which may count toward the new cycle requirements if they are not permitted prior to July 2022. City staff are currently doing an evaluation of current pipeline projects and yields anticipated from sites already identified in the current Element but not built.  Once the gap between those numbers and our RHNA is identified, new sites will be analyzed. The requirement from the State is that enough sites be identified to adequately accommodate the housing needs for the community. The City Council will have the final decision-making authority for identifying housing opportunity.

Where does affordable housing exist within the City of Novato?

The City has a list and map of existing affordable housing projects.
Please click on the links below to see the map and list of these sites in Novato.

Current Affordable Housing List

Current Affordable Housing Map

Can the City get Regional Housing Needs Allocation credit for rehabilitating existing run-down residential units?

Yes, provided the owner of the unit records a legally binding deed restriction (for sale) or rent/lease agreement that insures the units are affordable to lower income households.  To meet the City’s Housing Needs Allocation, there is a limit to the number of existing units that can be rehabilitated and restricted for lower income households.

Can the City get RHNA credit for the creation of second (accessory) dwelling units (ADUs)?

Yes. The State-recommended approach for crediting ADUs toward RHNA is to use the annual average of ADU building permits issued since 2019 and project that average over the 8-year planning period (2023-2031). The source of this guidance is found in a Memo issued by the State of California Department of Housing and Community Development (HCD) entitled "Housing Element Site Inventory Guidebook Government Code Section 65583.2" issues on June 10, 2020. Details on the recommended approach for forecasting ADU production into the future is found on page 31.

The Association of Bay Area Governments (ABAG) also provides additional guidance on how to utilize ADUs to satisfy the RHNA, including recommendations on how to project ADUs and estimate affordability levels. ABAG's technical guidance memo, "Using ADUs to Satisfy RHNA", is available on their website.

Can the allowed height or density of sites with existing multi-family projects be increased to allow additional affordable housing in those existing projects?

Conceptually, yes.  However, the City must provide information to the State to show that redevelopment of an existing site with increased density is truly feasible and practical.  There are many structural and financial reasons why such redevelopment may not be feasible in the State’s eyes, so staff does not believe this is a significant source of housing opportunities.

Can unincorporated land be annexed for housing?

Yes, with limitations.  The City has a voter initiated Urban Growth Boundary which is intended to limit urban sprawl by preventing development outside of the City boundaries and preventing the City boundaries from being expanded.  However, the City may annex up to ten acres of land outside the City per year for housing if certain conditions are met. Briefly summarized, these conditions are; the land is immediately adjacent to an existing comparably developed area and all services have adequate capacity; development will be primarily low and very low income; there is no residentially designated land in the city that can accommodate the project; it is not feasible to accommodate the development by redesignating land within the City; and, the proposed development is necessary to comply with State requirements.  In addition to the City Council making all of these findings and approving the annexation, annexation typically requires a willing land owner. Marin County may identify sites outside of the City limits in order to meet their regional share.  These sites would be developed under the County's ordinances and through their entitlement and permitting processes.

Will affordable housing overload services?

Until an analysis of the sites has been conducted, it is too soon to determine or understand what the impact to city services will be.

Who is going to build the affordable units?

The City of Novato has never built affordable housing. The City’s responsibility is to identify the sites where this kind of development could occur. It is expected that private market rate and non-profit housing developers would construct this housing. It could be that a partnership between a private and non-profit developer would occur to build housing. In the past, the City of Novato has contributed funds, however, due to the City’s financial constraints, the City may not be able to participate financially in projects.
 

What is "Fair Housing" and "Housing Equity"?

The Civil Rights Act of 1968 prohibited discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, sex, (and as amended) handicap and family status. As a result, the U.S. Department of Housing and Urban Development (HUD) and State of California Department of Housing and Community Development (CA HCD) set benchmarks for cities to meet to prove that local housing policy is fair and non-discriminatory. The City of Novato is committed to providing residents across all income groups, races, national origins, religions, genders, disabilities, or family status with housing that is safe and stable. 

How can the public provide input/be involved in future meetings?

Please subscribe to our e-notification service to stay informed. You may also periodically check the "Meetings and Milestones" page to stay informed of upcoming meetings and recent activities.

The City will be having workshops in the near future, and we hope that you can attend.

You can also submit questions or comments to staff directly at the following email:
housingelement@novato.gov.