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In communications with HCD and in court documents related to the Urban Habitat litigation, the City has stated its intention to complete the rezonings as soon as possible following the adoption of the updated General Plan. Although Program 19.1 has been satisfied in part with the approval (in October 2008) of the 350 -unit Windstar development at the new BART station, there remain 521 units to be accommodated under the 2003 Housing Element. In the meantime, the City has received its regional housing needs allocation for the next Housing Element which will require the City to plan for an additional 3,277 units, approximately 1,800 of which are to be affordable to very low- and low- income households. State housing law (Government Code, Section 65583.2(c)) requires that land counted towards the vacant lands inventory for housing for low and very-low income households be zoned for residential development at 30 units or more per acre. The transformation of Hacienda to a mixed use development integrated with the transit hub at the BART station was extensively discussed during the General Plan update process. In the General Plan adopted in July 2009, Hacienda is designated as Mixed Use /Business Park on the Land Use Map, and policies in the Land Use Element encourage the development of mixed use and residential densities that support affordable housing and transit. In August 2008, the City Council and the Planning Commission met in a Joint Workshop to discuss future planning options for the Hacienda area. At that meeting, the City Council directed the formation of a subcommittee to oversee a comprehensive PUD modification process, with extensive public input, that would identify a new vision for Hacienda, address park -wide planning objectives, and create modified development standards and design guidelines to be included in the individual site development proposals. As discussed at the Joint Workshop, the PUD modification process was deferred until the completion of the General Plan. The General Plan was adopted on July 21, 2009, and now it has been determined which property owners wish to participate and how they will jointly fund the necessary consultant services, the PUD modification process will commence shortly and is likely to take approximately nine to twelve months. Nevertheless, because of the pending litigation, staff believes immediate action should be taken to complete the rezonings on the three identified sites now that the General Plan has been adopted, and that these rezonings which do not involve any specific development proposals should proceed ahead of the comprehensive PUD modification process. If the City Council does not approve the proposed rezoning on at least Parcels 1 and 2 (sufficient to address the representation made by the City in Program 19.1 of the 2003 Housing Element), the claim that the City is in violation of the State Housing Element Law will continue to be litigated. If the Court were to find that the City is in violation of the Housing Element Law, it will direct the City to come into compliance, presumably by directing the City to rezone sufficient property in Pleasanton to accommodate the unmet housing need. The Court could, moreover, direct that no building permits be issued until the rezonings occurred. Page 3 of 12