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Chair O'Connor commented that Pleasanton is theoretically over -built with more units than are actually needed for RHNA, but it has not met its very-low- income number because no one ever builds the very-low- income units and the City cannot force it to happen. Mr. Dolan explained that the very-low- income number will be recalculated again next time. He stated that the low- and very-low income in those categories are not associated with the zoning requirements and do not affect the zoning; all that needs to be done is to zone the properties for 30 units per acre, and this great big huge assumption is made that the obligation has been met. He added that based on what happens in the marketplace after that, the State will then want to talk about the City's programs to help meet those targets. Chair O'Connor asked if this scenario would force the City to rezone even more to meet its RHNA numbers because after all of those units are built and none of them materialize as low- or very-low income, the City would fall short in that one category. He added that even though the City has enough units, it does not have enough low- or very-low- income units, and the City is then forced to rezone yet additional properties, assuming that it will meet low- and very-low -, and again it does not materialize. Ms. Wallis stated that the City will not have to rezone anything within the next eight years, and after eight years, the City will receive a w RHNA number. She continued that the City will then re- evaluate everything, and if some of these properties were currently entitled and decided to be infeasible, they will go back to the vacant and under - utilized sites, and those that have been constructed will fall off the inventory. She added that at that point, HCD will not revisit the numbers and will not penalize the City for having not met its actual constructed units; it will just look at if the City had the capacity at the beginning and not what it actually constructed at the end. Commissioner Balch stated that he understands the snowball example and staffs perspective that this is not such an issue to deal with; however, the City's goal is to provide affordable housing. He inquired how the City is to achieve this goal and if this policy is doing that. Ms. Wallis replied that the City's underlying goal right now in its IZO is to get 15 percent affordable units in every project, as restricted by legislation and by court cases. She indicated that people want to build in Pleasanton, and the City has been negotiating with the developers to meet that 15 percent, which is above and beyond what a lot of other cities within the region are meeting. Mr. Dolan added that Pleasanton has actually been fairly successful. He stated that the City sometimes does not get the deep affordability that it wants, or when it does get it, it is at a lower percentage because the City is subject to the negotiation. He indicated that one of the programs in the plan now is to revisit the IZO and try and create a framework that is legally defensible so that the City is out of the negotiation range. He continued that if the City is able to do that, then it can specify what levels of affordability PLANNING COMMISSION MINUTES, June 25, 2014 Page 12 of 29