The Housing Element is one of seven mandatory elements that must be included in a city’s General Plan. The Housing Element outlines goals, polices, implementation programs, and quantified objectives that will help the City plan for the housing needs for all segments of the City’s population. State law mandates that local governments adequately plan to meet the existing and projected housing needs of all economic segments of the community. Unlike other mandatory general plan elements, the Housing Element is required to be updated every eight years and must be reviewed and certified by the California Department of Housing and Community Development (HCD).

Visit HCD's website for more information about Housing Element requirements.

The Housing Element includes the following major components:

• Housing Needs Assessment: Provides demographic and housing need information for the City.
• Constraints Analysis: Analyzes existing and potential constraints to the development of housing and how those will be addressed.
• Evaluation of Past Performance: Assesses the City’s progress in implementing the policies and programs set forth in the prior Housing Element.
• Housing Sites Inventory and Analysis: Identifies sites available for development or redevelopment and that are appropriately zoned to support housing development in order to accommodate the City’s Regional Housing Needs Allocation (RHNA).
• Housing Resources: Identifies financial and other resources available to support housing development, especially affordable housing.
• Policies and Programs: Establishes new policies and programs designed to address the housing needs identified in the City.

The RHNA is part of a statewide statutory mandate for every city and county in California to address a portion of the projected statewide housing needs. Every region in the state is given a Regional Housing Needs Determination (RHND) from HCD, which is the number of housing units the region must plan for. The total allocation is broken down into four income categories: above moderate-, moderate-, low-, and very low-income. The lower two income categories (“Low Income” and “Very Low Income”) must be accommodated on sites zoned for higher density residential development. In the City of Folsom, sites must allow 30 units per acre to be considered appropriate for lower-income housing.

State law mandates that the Sacramento Area Council of Governments (SACOG) develop and approve a Regional Housing Needs Plan (RHNP) that contains a RHNA methodology for allocating these units by income category to each city and county in the region. The RHNA methodology requires that the following five objectives be considered;

1. Increase housing supply and housing mix;
2. promote infill, equity, and the environment;
3. ensure jobs housing balance and fit;
4. promote regional income parity; and
5. affirmatively further fair housing.

The SACOG board adopted the sixth cycle 2021-2029 RHNA Methodology in November 2019.

Visit the SACOG website for more information on the SACOG RHNA process.

The RHNA allocates the City’s “fair share” of the region’s projected housing needs. As shown in the table below, SACOG allocated the City of Folsom a total of 6,363 housing units for the eight-year RHNA cycle. The allocation is equivalent to approximately 795 housing units annually for the eight-year planning period. Of the 6,363 housing units, 3,567 units are to be affordable to very low-income and low-income households (collectively referred to as the “lower-income” RHNA). This represents a 72 percent increase in the lower-income RHNA of the previous Housing Element (2,072 units).

Folsom's 2021-2029 Regional Housing Needs Unit Allocation by Income

*Based on 8-year planning period

The following table compares the City’s 2013-2021 RHNA with the 2021-2029 RHNA. Overall, the 2021-2029 RHNA increased by 37 percent, and the number of very-low and low-income units (3,567 units) increased by 72 percent.

The RHNA, especially among the lower income categories, is higher for a number of reasons. HCD is no longer limited to only considering projected future household growth, but now must also consider the potential for overcrowding of existing households and the cost burden of existing households when developing the Regional Housing Needs Determination. New factors and objectives must also be considered by SACOG in the RHNA methodology, which resulted in an increased lower-income RHNA for Folsom. These include incorporating growth patterns to reduce greenhouse gas emissions, creating a balance between low-wage jobs and affordable housing, and affirmatively furthering fair housing.

Visit the SACOG website for more information on the SACOG RHNA process.

• Limited access to State Funding. Several state department/agencies that award funds limit their approvals based on the status of a jurisdiction’s Housing Element. This includes some transportation funds.
• Lawsuits. Cities could also be vulnerable to lawsuits for not working proactively to meet its housing needed. Without a certified housing element, developers and advocates have the right to sue jurisdictions if their Housing Element is not compliant with State Law.
• Carryover of unfilled RHNA. We would be required to carry over to the next housing element planning period any unmet RHNA if we fail to identify or make available adequate sites to accommodate its RHNA assignment. Therefore, in addition to identifying sites for the new period’s RHNA, we would also be required within the first year of the new planning period to zone adequate sites to accommodate the RHNA from the prior planning period that was not provided.