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Commissioner Nagler: ... that's being built? Commissioner Allen: That's being built right now. That's just maybe a couple blocks away from this and that's about 350 units, and because that was being built, they said we don't also need one almost next door, so it got a higher priority. I do have one just general question before we go into traffic that I wanted to clarify for my understanding. It has to do with the discussion you had with RHNA. So what I understand from the report and from what you said is that we've already met our RHNA requirements through 2022 and if we were to rezone this and it got built prior to 2022, it wouldn't help us meet any more numbers. Also my understanding is that if though we waited —just an if —if we were to wait and build this in 2022, rezone and let's say in 2022 we had the same kind of RHNA requirements we're getting now for 1,000 more units, would it count then most likely? Would it count then toward lower income and moderate assuming that we were required to have a certain amount of units if we waited? Hagen: So when we do the Housing Element Update, what we are required to do is provide a site inventory of properties that are currently designated for residential uses. So, right now this currently would not qualify because it is not currently zoned residential, but to be eligible it had to have been zoned for residential to allow for residential development. Based on different formulas, based on the density we can calculate that if every single one of those properties within the inventory were to be developed with affordable housing at, you know, "x° rate, and then we could meet our RHNA numbers. We are not required to actually develop those properties. We just have to show that we have the capacity for it. Right now since we do currently have the capacity, this would not benefit that capacity. Ultimately, HCD is going to look at the city at the end of our RHNA cycle and look at how many units we actually did develop and they are going to take that into consideration and look to see if there was anything that hindered properties that were already zoned residential from becoming affordable housing and so forth. If we can show there is nothing that we did to stand in the way, that it was just economics and the marketability, we would be fine. For this to count for the next affordable housing cycle or the next RHNA cycle, it would have to be rezoned to allow for residential. It could be entitled "prior" but it could not be under construction until after we get our next RHNA numbers. If that were the case, then it would count towards our next cycle. Commissioner O'Connor: So if it was built today, we wouldn't get any credit for the affordable inventory that we have that's already been built and occupied? Hagen: It would be part of our annual progress report that we present to the state so it would be reported as new affordable units, but in our overall capacity, we don't get any bonus for increasing our capacity. But, you know, we will get credit for those affordable units in our yearly report that we report to the state saying that we did provide "x" amount of units each year. So as our end goal, it would look better but ultimately the State just looks at the fact we had the capacity and not that they are all constructed. Commissioner Nagler: Let me just ask this follow -up question, Jennifer. What you're describing is for this current RHNA cycle, but I think what Commissioner Allen is asking is, how might it impact the next cycle and in looking at the next cycle, isn't it the case that the PLANNING COMMISSION MINUTES, April 27, 2016 Page 17 of 43