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California Government Code Section 65584.6

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(a) The County of Napa may, during its current housing
element planning period, identified in Section 65588, meet up to 15
percent of its existing share of the regional housing need for lower
income households, as defined in Section 65584, by committing funds
for the purpose of constructing affordable housing units, and
constructing those units in one or more cities within the county,
only after all of the following conditions are met:
   (1) An agreement has been executed between the county and the
receiving city or cities, following a public hearing held by the
county and the receiving city or cities to solicit public comments on
the draft agreement.  The agreement shall contain information
sufficient to demonstrate that the county and city or cities have
complied with the requirements of this section and shall also include
the following:
   (A) A plan and schedule for timely construction of dwelling units.

   (B) Site identification by street address for the units to be
developed.
   (C) A statement either that the sites upon which the units will be
developed were identified in the receiving city's housing element as
potential sites for the development of housing for lower-income
households, or that the units will be developed on previously
unidentified sites.
   (D) The number and percentage of the county's lower-income housing
needs previously transferred, for the appropriate planning period,
pursuant to this section.
   (2) The council of governments that assigned the county's share
receives and approves each proposed agreement to meet a portion of
the county's fair share housing allocation within one or more of the
cities within the county after taking into consideration the criteria
of subdivision (a) of Section 65584.  If the council of governments
fails to take action to approve or disapprove an agreement between
the county and the receiving city or cities within 45 days following
the receipt of the agreement, the agreement shall be deemed approved.

   (3) The city or cities in which the units are developed agree not
to count the units towards their share of the region's affordable
housing need.
   (4) The county and the receiving city or cities, based on
substantial evidence on the record, make the following findings:
   (A) Adequate sites with appropriate zoning exist in the receiving
city or cities to accommodate the units to be developed pursuant to
this section.  The agreement shall demonstrate that the city or
cities have identified sufficient vacant or underutilized or vacant
and underutilized sites in their housing elements to meet their
existing share of regional housing need, as allocated by the council
of governments pursuant to subdivision (a) of Section 65584, in
addition to the sites needed to construct the units pursuant to this
section.
   (B) If needed, additional subsidy or financing for the
construction of the units is available.
   (C) The receiving city or cities have housing elements that have
been found by the Department of Housing and Community Development to
be in compliance with this article.
   (5) If the sites upon which units are to be developed pursuant to
this section were previously identified in the receiving city's
housing element as potential sites for the development of housing
sufficient to accommodate the receiving city's share of the lower
income household need identified in its housing element, then the
receiving city shall have amended its housing element to identify
replacement sites by street address for housing for lower-income
households.  Additionally, the Department of Housing and Community
Development shall have received and reviewed the amendment and found
that the city's housing element continues to comply with this
article.
   (6) The county and receiving city or cities shall have completed,
and provided to the department, the annual report required by
subdivision (b) of Section 65400.
   (7) For a period of five years after a transfer occurs, the report
required by subdivision (b) of Section 65400 shall include
information on the status of transferred units, implementation of the
terms and conditions of the transfer agreement, and information on
any dwelling units actually constructed, including the number, type,
location, and affordability requirements.
   (8) The receiving city demonstrates that it has met, in the
current or previous housing element cycle, at least 20 percent of its
share of the regional need for housing for very low-income
households allocated to the city pursuant to Section 65584.
   (b) The credit that the county receives pursuant to this section
shall not exceed 40 percent of the number of units that are
affordable to lower income households and constructed and occupied
during the same housing element cycle in unincorporated areas of the
county.  The county shall only receive the credit after the units
have been constructed and occupied.  Within 60 days of issuance of a
certificate of occupancy for the units, the county shall inform the
council of governments and the department in writing that a
certificate of occupancy has been issued.
   (c) Concurrent with the review by the council of governments
prescribed by this section, the Department of Housing and Community
Development shall evaluate the agreement to determine whether the
city or cities are in substantial compliance with this section.  The
department shall report the results of its evaluation to the county
and city or cities for inclusion in their record of compliance with
this section.
   (d) If at the end of the five-year period identified in
subdivision (c) of Section 65583, any percentage of the regional
share allocation has not been constructed as provided pursuant to
subdivision (a), or, after consultation with the department, the
council of governments determines that the requirements of paragraphs
(5) and (7) of subdivision (a) have not been substantially complied
with, the council of governments shall add the unbuilt units to Napa
County's regional share allocation for the planning period of the
next periodic update of the housing element.
   (e) Napa County shall not meet a percentage of its share of the
regional share pursuant to subdivision (a) on or after June 30, 2007,
unless a later enacted statute, that is enacted before June 30,
2007, deletes or extends that date.
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Last modified: January 12, 2009