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Depending on the final outcome of the litigation, or any negotiated settlement with the plaintiffs, the litigation will most likely lead to changes in the City's housing cap, recent Hacienda Business Park rezonings and the development approval process for those sites, the upcoming General Plan Housing Element process and the City's growth management policies. As a result, it is helpful for the public and City Council to have an understanding of the State Housing Law and the constraints and obligations it confers on the City when evaluating the options available to City Council at this stage in the litigation. The sections that follow, therefore, provide background regarding the housing cap, as well as an overview of the Regional Housing Needs Assessment (RHNA) and State Housing Law, and the City's growth management program. Following this background is a discussion of the litigation and the recent Court order, and the report concludes with an outline of the options available to the City, including opportunities for alternative growth management strategies. BACKGROUND 1996 Housing Cap The November 5, 1996 General Election ballot included two City Council sponsored initiatives: one regarding the Urban Growth Boundary, and the other a Residential Buildout Initiative which provided that the maximum number of residential units at buildout shall not exceed 29,000 units and cannot be changed except by a vote of the people. (Resolution 96 -89 is shown in Attachment 2). According to the Initiative Ordinance for the residential cap, the purpose of the measure was to: A. Achieve and maintain within the City of Pleasanton a complete, well rounded community of desirable neighborhoods, a strong employment base and a variety of community facilities. B. Develop the City of Pleasanton in an efficient, logical and orderly fashion. C. Reaffirm and readopt General Plan programs and policies establishing Pleasanton's maximum number of residential units. D. Provide a method for residents to participate in the review and amendments to the City's General Plan by requiring any change to the maximum number of residential units to be approved by a vote of the people. The 29,000 unit cap was based on the residential holding capacity of the 1996 General Plan. That buildout number was calculated by assuming General Plan policies and assuming that all remaining residentially- designated land on the General Plan map is developed at mid -point density or is developed consistent with an adopted Specific Plan where applicable. The 1996 General Plan was originally adopted on August 6, 1996. Language in the Land Use Element (Policy 15 and Programs 15.1 and 15.2) was then amended by the initiative that was passed on November 5, 1996. 2005 2025 General Plan: The Pleasanton General Plan adopted in July 2009 included the residential cap language from the 1996 General Plan (now Policy 24, Program 24.1 and Program 24.2), as it was amended by Measures PP and QQ in November 2008. These measures reaffirmed specific policies in the General Plan regarding hillside Page 3 of 11