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BACKGROUND In April 2003 the City Council adopted a Housing Element which provided (in Program 19.1) that the City would complete land use studies to identify sites that could be converted from non residential to high density residential uses, and following those studies to modify the General Plan Land Use Element and rezone land sufficient to accommodate 871 multifamily residential units, which was the unmet portion of the City's regional housing allocation at that time. In March, 2005, the State Department of Housing and Community Development (HCD) decertified the City's Housing Element because these rezonings had not been accomplished. Three years ago, a nonprofit organization, Urban Habitat Program, filed litigation against the City claiming that various City policies and ordinances prevent or hinder the development of affordable housing in Pleasanton. Its allegations include that the City has failed to fully implement Program 19.1 of the 2003 Housing Element. 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 On 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. This process will commence shortly and is likely to take approximately nine to twelve months. 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 Case No. PRZ -48., City of Pleasanton Planning Commission Page 2 of 10