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• Compliance with RHNA -- Any growth control measure must be drafted to meet RHNA within the established Housing Element plan period. • Infrastructure Constraints -- The City is responsible for taking actions to eliminate constraints. As an example, if lack of sewer capacity is a constraint, the City would be required to address the constraint through a financing mechanism, capital upgrade and/or other solution. Regarding traffic impacts, they would have to be addressed through the development review process. • School Impacts -- State law establishes a statutory school impact fee to mitigate the impacts of development. However, nothing limits a school district from exploring other financing measures through cooperative agreements with developers such as gift fee agreements, school-site construction, and/or other solutions. • Residential and Commercial Constraints -- There is a link between constraining housing and commercial development. That is if residential growth is constrained, commercial growth would also need to be constrained. As part of the City's typical residential development review process, matters related to the above referenced constraints, such as water availability, sewer, traffic, etc., are evaluated and if necessary, conditions to offset the impacts of the development are included in the conditions of approval. Notwithstanding this process, an amended growth management program could require the City to assess these constraints in further detail to assist in determining the timing of construction. In conclusion, an amended growth management program would most likely continue to take place following the development review process. Notwithstanding this process, an amended growth management program could also consider constraints and impacts related to the rate of construction for approved residential development projects, provided the process does not conflict with RHNA and state law. SUGGESTED OBJECTIVES FOR AN AMENDED GROWTH MANAGEMENT PROGRAM Based on the above parameters, the following objectives should be incorporated into an amended growth management program: • Retain the current development review process and continue to incorporate public review and comment. • Use the growth management program to determine a process for regulating the pace of residential unit construction consistent with State law and regulation. One method would be to establish an annual allocation consistent with the RHNA planning period. As an example, assuming a RHNA of 3,200 units over the seven year RI-INA period, there would be a 457 annual unit allocation (3,200 RHNA units divided by 7 years °457). Another option would be to link the annual unit allocation to population growth such that the RHNA represent a percentage of the City's population. • Develop a comprehensive program that addresses infrastructure constraints in compliance with State law and regulations. This can be accomplished through the development of a comprehensive growth management report updated biannually. Page 4 of 5