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THE CITY OF 13 CITY COUNCIL AGENDA REPORT pL£ASANTONo October 20, 2009 Community Development Department/ Law Department TITLE: PROPOSED AMENDMENT TO THE GROWTH MANAGEMENT ORDINANCE TO ALLOW THE CITY COUNCIL TO OVERRIDE THE ANNUAL HOUSING ALLOCATION IN ORDER MEET THE CITY'S TOTAL REGIONAL HOUSING NEEDS, ESPECIALLY FOR EXCEPTIONAL AFFORDABLE HOUSING PROJECTS SUMMARY The Growth Management Ordinance currently allows for 350 building permits to be issued annually although that number can be exceeded for affordable housing projects if there are unused allocations from past years or available allocations in future years. Program 34.5 of the Housing Element provides that the Growth Management Ordinance should be amended to allow the City Council to override the annual housing allocation in order to approve projects to meet the City's total regional housing needs, especially for exceptional affordable housing projects. Although the City has never denied any project because of the current limitations of the Growth Management Ordinance, in the pending litigation that the Urban Habitat Program has filed against the City, it has alleged that the City's failure to amend the Growth Management Ordinance as set forth in Program 34.5 of the Housing Element has had a chilling and adverse impact on opportunities for affordable housing projects. The attached ordinance amends the Growth Management Ordinance consistent with Program 34.5 and should eliminate this claim in the litigation. The attached also reflects that there are 400 units available from past years for affordable housing projects and makes minor revisions to the Ordinance to comply with changes made in the General Plan update. RECOMMENDATION Introduce the attached ordinance amending the Growth Management Ordinance as described in the summary. FINANCIAL STATEMENT There is no financial impact by this action.