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Mr. Dolan added that Northgate has submitted, but no one else has. Chair O'Connor asked staff, in response to one of the comments about over - building, if the current RHNA number through 2022 is 2,067 units. Ms. Wallis replied that was correct Chair O'Connor noted that 1,980 of those units have been permitted and approved; that leaves only 87 units. Ms. Wallis explained that it is not just the total number of units and total capacity that should be considered, but also how these units are divided in each of the individual income levels: only 291 of those units are in the extremely -low -, very-low -, and low- income category, and the City is required to have a capacity of 1,107 units. She continued that looking at the permitted unitsis short some 800 units in that area alone. Chair O'Connor asked whose problem is it that the low- or very-low- income unit categories have not been enforced to come up beyond the 291 units. Mr. Dolan replied that there is a difference between what the City is supposed to try and achieve and what the City absolutely must zone for, and the City has enough in the zoning. Chair O'Connor stated that the City has enough in the zoning, but when it is actually brought up for permitting, it is not materializing; the City is not getting the mix that it has been allocated. Mr. Dolan said that was correct. He stated that some of that has to do with what the courts have done with the IZO, basically making inclusionary zoning for rental property unenforceable so that the City is subject to a negotiation process with the applicant and is subject to what the market will bear in some instances. He indicated that these projects that the City has been approving are not economic homeruns for the developer, and his gut tells him that some of them will not go forward. He noted that construction costs are going up, and if they are not going to make enough money on these projects, they will just choose not to do it. He added that he believes that will happen to some of the projects. Chair O'Connor asked if this will then snowball for a city like Pleasanton, where if it continues to approve projects but no one is coming forth with the low- or very-low- income projects, the City will always be short in that one capacity, and the City will have to continually rezone more land so that it shows the possibility, but the possibility never materializes. Mr. Dolan said no. He indicated that the City just has to keep having the right amount of zoning to meet its RHNA requirements. PLANNING COMMISSION MINUTES, June 25, 2014 Page 11 of 29