Press Release: Following YIMBY’s Advocacy, HCD Commits to Assess Jobs-Housing Balance in the RHNA Process

Contact: Jessamyn Garner • jessamyn@yimbyaction.org • (760) 846-2525

SACRAMENTO, CA – The California Department of Housing and Community Development (HCD) has committed to ensuring that the jobs-housing balance as required under state law will be included in its RHND methodology process going forward. YIMBY Law and YIMBY Action have suspended their lawsuit regarding state housing goals due to this commitment.

In February 2021, YIMBY Law and YIMBY Action filed a lawsuit against HCD in Alameda County Superior Court. The suit claimed that state planners did not adequately consider the jobs-housing balance in the Bay Area’s housing goals. Researchers at UCLA have estimated that including the feasible jobs/housing balance could increase the number of homes assigned in the Bay Area by as many as 138,000.

A recent audit conducted by the California State Auditor backed up these claims, recommending that an assessment of a healthy jobs housing balance be included in future Regional Housing Needs Determinations (RHND). Across multiple jurisdictions, the audit found errors in housing allocations that resulted in lower numbers of housing production goals. In all examined regions, the audit found that HCD failed to include the jobs housing balance.

“We are excited that HCD has committed to addressing California’s jobs-housing balance. This commitment addresses the serious concerns we have expressed about the state overlooking this requirement,” according to Rafa Sonnenfeld, director of legal advocacy for YIMBY Law.  “We welcome HCD’s commitment to establishing a more accurate calculation of the number of homes needed throughout the state. We look forward to working with them to ensure full implementation.”

HCD has committed to conducting a public process around methodology and consider existing and/or projected relationships between jobs and housing in regions throughout California. Based on input from experts and available data, HCD will consider incorporating any jobs-housing balance methodology, jobs-housing targets, and necessary adjustments into future housing needs determinations.

The balance between the number of jobs compared to homes in each region, or the “jobs-housing balance” is an essential part of evaluating economic opportunity as it relates to the availability of homes in communities across the state. Without an accurate assessment of this relationship, job growth will continue to outpace the increase in housing supply, exacerbating the housing shortage.

According to Laura Foote, Executive Director of YIMBY Action, “Today’s announcement is a win for housing in California. In light of this commitment from HCD as well as the recent state audit, it is more important than ever to recognize that our Regional Housing Needs Allocations are a floor, not a ceiling, for housing production. RHNA goals underestimate the true need for more homes in our communities. Cites can and should build even more.”