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BACKGROUND The City's affordable housing policies are found in various City documents, which most notably include: . The Housing Element of the General Plan (Housing Element) • The Inclusionary Zoning Ordinance (Ordinance 1818/PMC 17.44) . City Guidelines regarding use of Inclusionary Zoning Units Credits (City Resolution - 4-073) • City Preference Criteria establishing a process for the allocation of affordable units (City Resolution 02-012) . Down Payment Assistance Guidelines • Community Development Block Grant guidelines . Lower Income Housing Fee (PMC 17.40) . City Resolution 10-390 which approved enhancement to existing non-discrimination policies . City housing Site Development Standards and Design Guidelines • Housing Commission actions Additionally, these policies are influenced by federal, state and regional policies which can have a significant impact on City Council policy decisions. As an example, Association of Bay Area Governments' (ABAG) Regional Housing Needs Allocation (RHNA) and the state's Housing and Community Development (HCD) actions clearly impact local policy. Legislative action, such as the Costa-Hawkins Act adopted in 1995 and which acts as the states rent control law, also shape the affordable housing framework. Finally, litigation, such as the Palmer/Sixth Street Properties L.P. v. City of Los Angeles ("Palmer') and Urban Habitat v. City of Pleasanton also impact the City's affordable housing actions. In general, all of the above policies are somewhat reflected in the City's recently updated Housing Element which provides the broadest overview of the City's current affordable housing goals, policies and programs. For example, Goal 5 states "Produce and retain a sufficient number of housing units affordable to extremely low, low and very low income households to address the City's responsibility for meeting the needs of Pleasanton's workforce, families, and residents, including those with special needs." To meet this goal, and others with similar emphasis, and to assure consistency with a wide range of influences including ABAG's RHNA, the Urban Habitat settlement agreement and housing policies by HCD, the Housing Element indicates the City's intent to review, and if necessary amend, its Growth Management Program, Inclusionary Zoning Ordinance and the Lower Income Housing Fee. The specific sections are as follows: . Program 9.1 - Anticipates a review of the Growth Management Program to assure consistency with State law and with the City's current and new infrastructure capacities. . Program 16.2— Requires a review and amendment of the IZO to assure consistency with the Housing Element, other City affordable housing programs, to be consistent with recent court decisions, to identify non-profit housing developers to construct Page 2 of 4