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BACKGROUND Section 65400 of the California Government Code requires the City to file an annual report addressing the status of the General Plan Housing Element and progress made toward implementing its goals and policies. The report must be submitted to the Department of Housing and Community Development and the Governor's Office of Planning and Research. The Pleasanton Housing Element for the 2007-2014 period was adopted by the City Council on February 13, 2012, and certified by HCD on October 26, 2012. This annual report will be the first for the currently adopted Housing Element. DISCUSSION The Housing Element Annual Progress Report - 2012 is attached for City Council review. HCD has specific reporting requirements for housing elements which consists of a report format comprised of tables in six Excel spreadsheets. Preceding the tables are a brief introduction and highlights of the year's implementation activities. HCD requires reporting on the number of housing unit permits issued during the year including the type of units (single family, multifamily, etc.), and the affordability categories (very low-, low-, moderate- and above moderate-income). Table B tracks building permits issued for each year of the Regional Housing Needs Allocation (RHNA) period of 2007-2014. In 2012 building permits were issued for 467 units, 90% of which are the first phase of senior housing construction for the Continuing Life Community project at Staples Ranch. This reflects a large increase in housing construction over previous years. In fact, dwelling units permitted for 2012 exceeds the total of all units permitted in the preceding 5 years by 2% times. Although Pleasanton has not met its RHNA goals, particularly in the affordable housing categories, increasing housing production is anticipated in the years ahead. This may be attributable to an improved economic climate, and recent development activity and interest in sites rezoned for high density development, combined with City efforts to encourage housing through the implementation of the Housing Element's policies and programs. During 2012, planning approvals were granted for two high density housing/mixed use projects, each with 38 units for very low-income households (BRE projects in Hacienda). By the end of the year proposals for multifamily housing projects on four of the nine sites rezoned for high density housing were under consideration. If constructed, these four projects will result in an additional 1,534 housing units, including units that will help the City meet its RHNA targets. Table C tracks implementation of Housing Element policies and corresponding action programs. Of the 83 programs listed for implementation 64 are being addressed on an on-going or an as-needed basis. Sixteen programs are either complete or in progress, and the remaining three action programs are expected to start in 2013. Highlights of work on the Housing Element in 2012 are summarized as follows: Page 2 of 4