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DISCUSSION The City utilizes a comprehensive development review process, consistent with its General Plan that incorporates considerable community and commission review to assure that proposed development meets community and City Council expectations. Since 1978, one step of the process includes implementing the Growth Management Ordinance that provides the guidelines for pacing the rate of construction for approved residential developments. The current GMO includes seven major components that establish the following: • Sets 350 as the maximum number of building permits that may be issued annually for new residential development units except when necessary to meets the City's Regional Housing Needs Allocation (RHNA) numbers. . That the 350 annual unit allocation is divided into the following three categories/ suballocations: • Affordable Housing Project (50 units) — this suballocation is generally defined as development projects that are low and moderate income. • Major Project (200 units) — this suballocation generally includes development of more than 100 units or developments that want the certainty of multi-year growth management allocations • First-Come, First-Served Project (100 units) — this suballocation includes all projects that are neither and Affordable or Major project. • A separate growth management approval process customized for all three suballocations. . Process for use, loss, modifying and transferring growth management approvals. . Listing of exemptions including second units, mobile homes or quarters on school sites, public and institutional properties, and commercial/industrial properties used for security purposes or ancillary use and a condominium conversion or replacement of an existing unit demolished or destroyed. . Administration of the growth management program detailing the specifics of a Growth Management Report and administrative matters. . Application of the GMO to prior approved projects. . Fees and exactions. After review all of the above components, the subcommittee determined that at this time it is appropriate to modify four of the seven components: the 350 unit limit, the suballocations, the reallocation of units from one year to the next, and the process for prior approved projects. Page 2 of 5