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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 2015-2023 planning period was adopted by the City Council on January 6, 2015. This annual report will be the second submitted for the newly adopted Housing Element. The Housing Commission, at its April 20, 2017 meeting, reviewed the Housing Element Annual Progress Report and recommended the report be forwarded to the City Council for approval. DISCUSSION The Housing Element Annual Progress Report - 2016 is attached for Housing Commission review (Attachment 1). HCD has specific reporting requirements for housing elements which consist of a report containing tables in five spreadsheets. Preceding the tables are brief introductions and highlights of the City's implementation activities over the past year. 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 of Attachment 1, tracks building permits issued for each year of the Regional Housing Needs Allocation (RHNA) period of 2015-2023. In 2016, building permits were issued for 387 units, one hundred and forty (140) senior living units are part of the Stoneridge Creek by Continuing Life Communities (CLC), forty six (46) townhome units are part of Andares by Summerhill Homes within Hacienda Business Park, and one hundred and thirty one (131) units within phase 1 of Kottinger Gardens. In addition, sixty five (65) permits were issued for various single-family homes through-out the City. After the initial increase of housing development due to the rezoning requirements associated with the Settlement Agreement, the number of permits issued in 2016 (387) has greatly decreased from the number issued in 2015 (891). Housing permits are expected to continue to decline in 2017 with the majority of the vacant/underutilized high density residential sites already under construction. Housing production, however, as regulated by the City's Growth Management Ordinance, is expected to continue as a result of an improved economic climate, recent development activity, and the City's efforts to encourage housing through implementation of the policies and programs found in the adopted Housing Element. Table C of Attachment 1 tracks implementation of Housing Element policies and corresponding action programs. Highlights within the last year include processing applications for Irby Ranch (PUD-110), including an Affordable Housing Agreement that includes the dedication 1.65 acres of land, from the developer to the City, to be used for affordable housing in partnership with Sunflower Hill. The City has also committed $2.25 Page 2 of 3