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BACKGROUND The Pleasanton Housing Element, adopted on February 13, 2012, includes Policy 9 and Program 9.6 as follows: Policy 9: Support the development and rehabilitation of housing affordable to extremely low -, low -, and very- low - income households and review infrastructure needs. Program 9.6: Adopt a density bonus ordinance consistent with State law. This proposed code amendment is the last of four amendments that, when adopted, will enable Pleasanton to request a streamlined housing element review for its next housing element. The streamlined review will simplify and shorten the update and review process significantly. The other three amendments, adopted early this year, were code amendments to facilitate the development of emergency shelters, to provide for supportive and transitional housing, and to establish procedures for reasonable accommodation for persons with disabilities. The proposed code amendment (Attachment 1) has been drafted to implement the housing element and to comply with State Density Bonus Law (Attachment 2). DISCUSSION State Density Bonus Law has been in effect and available to developers for over 25 years. In 2005 changes were made to the law, including a requirement that local governments adopt a density bonus ordinance. It states that all cities and counties shall adopt an ordinance that specifies how compliance with the law will be implemented, and failure to adopt such an ordinance shall not relieve a local jurisdiction from compliance. The law requires that the City provide for increases in residential density and give incentives or concessions for housing developments that provide a specified percentage of affordable or senior housing. It establishes a sliding scale for density bonuses up to a maximum of 35 percent, and one or more incentives or concessions, depending on the number of affordable units and the levels of affordability. In most communities density bonuses are rarely requested. Despite the law being in place for many years, City staff has no recollection of any housing proposal in Pleasanton requesting a density bonus. Nearby cities report that they get very few requests. There are a number of factors that hinder housing developers from taking advantage of the law. In many cases additional density beyond a city's established maximum is neither desired or profitable. Eligibility A developer of five or more dwelling units is eligible to request a density bonus, and one or more incentives or concessions, provided the developer agrees to construct affordable units or senior housing. Per State law, the developer must make a specific request to the City and, if the proposal is in conformance with the provision of the density bonus ordinance, the City must grant the bonus. Page 2 of 5