Regional housing need: methodology: distribution.

Senators Allen and Stern propose fundamental changes to California's regional housing needs allocation process through legislation that would redirect housing allocations away from high-fire-risk areas and adjust distribution based on urbanization patterns. The bill requires councils of governments to allocate housing needs resulting from units lost in declared emergencies to jurisdictions other than where the losses occurred, while considering the risk of emergency conditions recurring.

The legislation establishes new requirements for reducing housing allocations in very high fire risk zones. Jurisdictions would see their allocations decreased by a percentage equal to their share of developable land within these hazard areas. For unincorporated county areas, allocations would be further reduced based on the proportion of population living outside urban boundaries. The bill maintains that total regional housing needs must still be met through proportional redistribution to other jurisdictions, while ensuring no county receives allocations exceeding its urban population share.

The measure modifies the appeals process for draft allocations, allowing jurisdictions to challenge instances where councils of governments fail to make required fire risk and population-based adjustments. It preserves existing appeal rights related to methodology and changed circumstances while adding new grounds. The Department of Housing and Community Development retains oversight of the allocation process, including review of methodologies and final distributions to ensure consistency with regional needs, subject to the new adjustment requirements.

For jurisdictions without councils of governments, the department would apply parallel allocation reductions based on fire risk exposure and urban population patterns. The bill requires any revised allocations through the appeal process to align with these adjustment provisions while maintaining total regional housing needs. Local governments may receive reimbursement for costs associated with implementing these changes if the Commission on State Mandates determines the requirements constitute state-mandated expenses.