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BACKGROUND On February 13, 2012, the City of Pleasanton adopted an updated Housing Element. As noted in the attached City Council agenda report, Urban Habitat, one of the Plaintiffs in the Urban Habitat et al, v. City of Pleasanton litigation, sent a letter dated February 15, 2012, requesting the parties meet and confer regarding the City's obligations under the Settlement Agreement approved by the City Council in August 2010. The parties have met over the last few months and have tentatively reached an agreement, the terms of which are outlined in the attachment to the May 1, 2012, City Council report (Attachment 2). The agreement involves the modification of Program 9.7 and Policy 37 of the recently adopted Housing Element. PROJECT DESCRIPTION The changes to the 2012 Housing Element being proposed are as follows: Program 9.7: Adopt Development Standards and Design Guidelines to facilitate the development of high quality multifamily housing and to create more certainty for residential development on Sites 25 through 33 in Appendix B Housing Sites Inventory. These standards are intended to be substantially similar to those developed for the Hacienda TOD (sites 22, 23 and 24) and would at a minimum include affordability consistent with the City's inclusionary Zoning Ordinance and the acceptance of Section 8 Rental Assistance Vouchers as set forth in the City's standard affordable housing agreement e - - - - e - - developers during the PUD proccso. Responsible Agency: Planning Division, Planning Commission, City Council Time Period: By end of September 2012 Funding Source: Planning Division, Housing Division budgets And: Policy 37: Council of the City of Pleasanton Approving Enhancements to e. _ •••• _ • — _ . _ • : _ • . For phased residential developments, ensure that the majority of units affordable to low- and very-low-income households are not postponed until the final stages of development. All other goals, policies and programs in the Housing Element adopted February 13, 2012 remain the same. The amendments above provide some additional detail as to the content of the future Development Standards and Design Guidelines for the housing sites (Program 9.7) and provide focus on ensuring affordable units are built with the market-rate units (Policy 37). Page 2 of 3