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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 Pleasanton Housing Element for the 2007-2014 planning period was adopted by the City Council on February 13, 2012, amended on October 16, 2012, and certified by HCD on October 26, 2012. This annual report will be the last report for the previously adopted Housing Element. Future annual reports will be for the 2015-2023 Housing Element. DISCUSSION The Housing Element Annual Progress Report - 2014 is attached for City Council review (Attachment 1). HCD has specific reporting requirements for housing elements which consists of a report comprising tables in five 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 2014 building permits were issued for 323 units. Two hundred and fifty-one (251) units are part of the Hacienda 1 — Essex project, formerly owned by BRE at the southwest corner of Owens Drive and Willow Road. Nineteen (19) homes are part of Cameron Circle and fifteen (15) homes are part of the Ironwood Community, both by Ponderosa Homes. Fourteen (14) of the homes are part of Township Square (Commons at Gateway). The number of permits issued in 2014 is similar to the number issued in 2013 (312). Although Pleasanton did not meet its State mandated RHNA goals for the 2007-2014 Housing Element cycle, the City is optimistic that increased housing production will occur in the years ahead to meet the next RHNA cycle goals identified in the recently adopted Housing Element. Increased housing production, as regulated by the City's Growth Management Ordinance, is expected to result from an improved economic climate, recent development activity on and interest in sites rezoned for high density development, and the City's efforts to encourage housing through the implementation of the Housing Element's new policies and programs. 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. The remaining 19 programs are either complete or in progress. Highlights of work related to the Housing Element in 2014 are summarized as follows: • Building permits were issued for 323 dwelling units. • Planning approval was granted for the Summerhill Apartment 177-unit project. Approximately 10% or 18 of the total units will be affordable to very low- and low- Page 2 of 3