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Regional Housing Needs Allocation (RHNA) and Affordable Housing The subject property is not included in the 2015-2023 Housing Element Housing Sites Inventory, which identifies sites available for future residential development and the adequacy of these sites to address Pleasanton's obligation for the current RHNA cycle. The Housing Site Inventory only includes sites that are already zoned to accommodate residential development. Although the project site was not included within the inventory, any housing units constructed during this RHNA cycle would still be counted towards the City's progress in meeting its RHNA goals. Although rezoning additional land within the City for housing is not necessary to meet current RHNA requirements, the proposed housing would assist in easing the area's housing shortage and would count towards meeting housing unit production goals (in the "above moderate" income category). The City's Inclusionary Zoning Ordinance (IZO) requires new single-family residential projects of fifteen units or more to provide at least 20% of the dwelling units at prices affordable to very low, low, and/or moderate income households, or to satisfy the requirement through alternative means. The alternative means may include the dedication of land for the purposes of affordable housing development, so long as the property is appropriately zoned, is large enough to accommodate the number of inclusionary units required, and is improved with infrastructure and adjacent utilities. Another alternative is paying the current Lower Income Housing Fee (LIHF) in addition to making an affordable housing fee contribution to the City. Staff met with the applicant and discussed various alternatives outlined in the IZO as a means of obtaining affordable units, focusing on offsite acquisition; however, current rental market conditions and property values presented significant barriers to acquisition of land for affordable housing development. In recognition of the significant need for resources to advance the City's affordable housing goals in the future, the applicant proposed to pay the current LIHF and make an affordable housing contribution to the City that, when combined with the LIHF, would be equal to the maximum lower income housing fee, adjusted by unit size, which was recommended in the Nexus Based Affordable Housing Fee Analysis report prepared for the City by Economic Planning System in 2013. The 2013 nexus report recommended that developers of single-family homes pay fees on a sliding scale based on a home's square-footage. Housing Commission Recommendation On November 11, 2016, the Housing Commission passed a motion recommending the City Council approve an alternative fee proposal for affordable housing which would require the applicant to pay $948,013 in affordable housing fees at the time of building permit issuance. The Commission strongly conveyed its opinion that all money contributed by the applicant in accordance with the Affordable Housing Agreement be used for affordable housing and not for other purposes. Please see the attached Housing Commission staff reports and meeting minutes in Exhibit H for additional details and discussion. Development Plan A PUD development plan allows flexibility in applying Municipal Code standards in order to achieve a superior and innovative overall plan for the site and the area. The applicant developed the current site plan with input from the Planning Commission during the Work Session and numerous discussions with staff and the Valley Trails neighbors prior to and after formally submitting the PUD application. P16-1386, P17-0155, PUD-113, & TRACT 8259; 6900 Valley Trails Drive Planning Commission 19 of 32