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PUBLIC COMMENTS AND CONCERNS The City of Pleasanton hosted two community workshops and two stakeholder meetings to obtain community feedback and assistance in reviewing existing sites for housing and to obtain ideas and suggestions for the Housing Element Update. The first community workshop and two stakeholder meetings were conducted in March /April with the second community workshop held in July. The Community and Stakeholder Workshop Summary Reports are included within Exhibit G for further reference. Additional input was provided by the Housing Commission and Planning Commission during study sessions in April and then later in June. Throughout the update process Staff has received feedback regarding the current status of the Housing Element and concerns regarding housing development and growth in the future. Below is a summarized response to the key concerns raised during the update process: Inclusionary Zoning Ordinance (IZO) The City's IZO was adopted to establish a clear and attainable plan for using the limited remaining developable land in a manner that is consistent with City housing policies. To that end, the IZO requires that 15% of all units in a new residential multi - family rental development and that 20% of all units in a new residential ownership development be priced at affordable levels. Concerns have been raised regarding the IZO and potential restrictions on the City's ability to ensure that rental units remain affordable. The court in Palmer /Sixth Street Properties v. City of Los Angeles (175 Cal. App. 4th 1396 (2009)) held that local inclusionary requirements requiring rent restricted units violate the Costa - Hawkins Act, which allows landlords to establish the initial rent for new units and adjust rents to market levels whenever a unit is vacated. The Palmer /Sixth Street Properties v. City of Los Angeles case resulted in the inability to enforce certain aspects of the IZO with regard to rental housing projects, although developers may still choose to voluntarily comply. The City applies the IZO consistent with state statutory and common law and continues to strive to voluntarily negotiate affordable housing agreements meeting the goals of the IZO consistent with state statutory and common law. The City has attempted to maintain 15 percent of the total number of units of all new multiple - family residential projects containing 15 or more units be affordable to very low- and low- income households. However, due to the concern regarding the status of the IZO, Staff has included Program 17.1 to review and amend the ordinance by January 2016: Program 17.1: Review the City's Inclusionary Zoning Ordinance and amend it: - for consistency with the Housing Element and other City affordable housing programs; -to identify incentives for non - profit housing developers and other housing developers to construct projects, including three bedroom units for large households; - to determine if it is appropriate to increase the percentage of affordability to support housing affordable to low- and very low- income households; - to be consistent with recent court decisions regarding rental housing and State law Case No. P14 -0440, City of Pleasanton Planning Commission Page 7 of 12