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78 The adopted methodology included an opportunity for the cities and the County toPage 2 negotiate additional adjustments in allocations between willing partners. A letter was sent to all agencies suggesting that during July and August, members of the Sub-region that wish, could discuss and negotiate trades to the Draft Allocation to be incorporated in the Proposed Final Allocation (8/30/07). Redwood City, San Mateo and San Mateo County agreed with C/CAG to take a leadership role by negotiating certain adjustments with other San Mateo County jurisdictions resulting in a somewhat higher allocation for these jurisdictions that would likely result in greater housing production countywide. Redwood City is also currently in discussion with Atherton to consider a reallocation of some of Atherton's units to Redwood City in "exchange" for Atherton to provide or contribute financially to significant storm drainage improvements which would lessen Atherton's drainage impacts on the Bayfront Canal facility, which is maintained by Redwood City. It is possible that Redwood City and Woodside could also facilitate a trade. To date no additional trades have been identified. Discussion Consistent with the guidelines, methodology, and schedule established by the State and ABAG, the San Mateo County Sub-region adopted the "Proposed Final Allocation" of Housing Shares for the jurisdictions in the San Mateo County Sub-region. The Proposed Final Allocation was reviewed by the RHNA TAC on August 23,2007 and by the RHNA PAC on August 30, 2007. Both committees unanimously approved the proposal. This was submitted to ABAG on August 31, 2007. See Attachment 2 for the Proposed Final Allocation. The Sub-region has opened an appeal period, pursuant to CGC 65584.05(d), that runs through October 30, 2007. during which time any member jurisdiction of the Sub-region may appeal the proposed Final Allocation. In November the Sub-region will adopt the Final Allocation, including a provision that the Sub-region consents a priori to any subsequent zero-sum trades between consenting jurisdictions. The Sub-region has requested that the option for trades between any agencies be allowed up to March 31 f 2008 when ABAG formally adopts the Sub-regional Allocation for San Mateo County. Redwood City's proposed final housing allocation is 1,832 units that would accommodate 418 very low (23%),300 low (16%),354 moderate (19%) and 760 above moderate (42%) income households 1. Almost 40% of the units need to be designated for low and very low income. This is much higher than the 15% requirement within the Redevelopment Area. Thus, staff is concerned about the City's ability to meet the RHNA goals absent more specific housing policy. Staff will be coming back to Council in early 2008 with additional housing policy tools for review and consideration for the purpose of identifying more housing sites and strategies. ALTERNATIVES Do not approve the Resolution acknowledging participation in the San Mateo County Sub-region for Regional Housing Needs Allocation (RHNA) Process and do not accept Redwood City's assigned housing share. This alternative could likely result in a higher RHNA assignment to Redwood City. 1 For the 2007-14 RHNA planning period, all Bay Area jurisdictions, including San Mateo County, agreed to receive the same "equal share" proportion of housing units in each atfordabillty category: very-low 23%; low 16%; moderate 19%; and above-moderate 42%.