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Mr. Dolan then presented the portion of the staff report on the Regional Housing Needs Allocation (RHNA). He stated that what has really attracted the most attention in this Housing Element update has been the numbers, which is not really a big surprise because the numbers translate into zoning and housing sites. He pointed out that while most people understand that there are certain things the City needs to do to meet State law and the City's own housing needs, they tend to have pretty strong opinions about where our housing sites should be located with respect to their own neighborhoods. He then displayed the Estimated Current RHNA Capacity table below which summarizes where the City currently is with respect to its housing inventory and describes all the numbers related to the various income categories that the City is required to address within the Housing Element. He clarified that for the purposes of the Housing Element, those income categories really translate primarily in terms of the zoning into density requirements. He explained that the Very- Low- Income and the Low- Income categories with 30+ units per acre are where the City needs to provide sites to meet those numbers, and added that staff has determined that the City can meet the Moderate - Income category with zoning at 23 units per acre, and the zoning on the Above - Moderate - Income does not really matter. Mr. Dolan continued that staff has calculated on this table what the City already has in its inventory relative to its RHNA requirements. He noted that one of the things that everybody has been well aware of is that because of the large number of rezonings the City had done in the last cycle, combined with RHNA's reduced assignment to the City this cycle, the City ended up with what has been referred to as a surplus. He explained that when the numbers on the bottom line of the table are added up and what is available is taken into account, the total surplus number that has been quoted by several people is 1,292 units, which represents what the City has zoning for, above what RHNA indicates the City has to have. He pointed out, however, that that number really is kind of an imaginary number that does not have a lot of value in a real -world discussion of what the City is confronted with, because the bulk of the surplus comes in the Moderate - Income category, which only exist because the City has projects that has been zoned for in the last Housing Element cycle and for which projects have been proposed but have not yet been built, which then get to be counted in the inventory. He cautioned that there is not all this extra capacity, and as soon as those projects are built, that surplus goes to zero. He noted that, in effect, the only real number that should be talked about in terms of a surplus is the 375 in the column to the left, in the higher- density housing category, the category people are more concerned about in general. Mr. Dolan stated that the City has to submit an inventory to the State documenting that the City has met its need. He indicated that at the last cycle, the City had to rezone 70 acres to get to the RHNA number, with a little cushion of about 240 units in the event the State did not feel it could support the City's inventory as presented, based on certain questions about sites. He then displayed the RHNA Low- and Very- Low - Income Capacity table, which shows the different sites and numbers for the low- and very-low- income categories. He noted that these are the numbers the Planning Commission and the City Council should look at if they want to reduce the surplus to get closer to the PLANNING COMMISSION MINUTES, August 13, 2014 Page 13 of 32