Since 1969, every city and county in California has been required to have a Housing Element as part of their General Plan. Unlike other mandatory General Plan elements, the Housing Element must be updated every eight years and is subject to review and approval by the California Department of Housing and Community Development (HCD). Major components of the Housing Element include a housing needs assessment, the identification of sites for housing at all income levels, a review of constraints to housing, and updated policies and programs to carry out the goals of the updated element.

The City’s current 2015-2023 Housing Element was adopted in 2015 and was part of the 5th Cycle of housing element updates in the State. This update for the 2023-2031 planning period is part of the 6th Cycle of housing element updates. Between the 5th and 6th Cycles, the State passed over a dozen of new housing laws, many of which aim to lower barriers to building affordable housing. These will all be addressed with this update.

Another major addition to the 6th Cycle Housing Element Update is the inclusion of an affirmatively furthering fair housing analysis. This analysis will examine housing practices in the city to identify any areas that may perpetuate housing inequities in the community. The Housing Element will then include policies and programs to help work towards more equitable housing practices.

The purpose of a Housing Element is to:

• Provide an assessment of current and future housing needs
• Identify opportunities and constraints on housing production
• Establish goals, policies, and programs to meet those needs
• Update City practices and regulations to reflect new State laws

A Housing Element identifies strategies and programs that focus on:

• Conserving and improving existing affordable housing
• Maximizing housing opportunities throughout the community
• Assisting in the provision of affordable housing
• Removing governmental and other constraints to housing investment
• Promoting fair and equal housing opportunities

In the process of updating the Housing Element, each jurisdiction is required to accommodate its fair share of the regional housing need. The Regional Housing Needs Allocation (RHNA) is the process used to determine housing allocations for each jurisdiction. As part of the RHNA, the California Department of Housing and Community Development (HCD) determines the total number of housing units needed across California over the next decade. This Statewide need is apportioned by HCD to each region in the state. The Santa Barbara County Association of Governments (SBCAG) is then tasked with developing a methodology to determine the number of housing units for which each jurisdiction is required to designate suitable sites. Under State law, the RHNA is assigned to the following four income categories:

• Very low household income
• Low household income
• Moderate household income
• Above moderate household income

The household income for each of these categories is based on a percentage of the Area Median Income (AMI). The breakdown of the RHNA based on these categories is shown below.

The inventory and analysis of adequate sites is a labor-intensive component of the Housing Element Update process. Solvang will need to evaluate General Plan land uses and the zoning ordinance to determine whether there is enough land available to accommodate the assigned RHNA allocation for each income category. If unable to accommodate the RHNA, Solvang will need to plan to rezone enough land to meet the RHNA obligation.