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In the meantime, SB166 is applicable to changes made to sites previously identified within the adopted housing site inventory that obtain entitlements after January 1, 2018. The majority of the high density sites identified within the currently adopted Housing Element have already obtained entitlements and are completed or under construction. There is a low likelihood that any of the remaining high density sites will be redeveloped in the near future. This pause in entitlement proposals should allow staff time to consider how best to proceed when an application comes forward. If there is development interest on the remaining high density housing sites, staff will work with the State (HCD) to ensure the City is navigating these changes in a prudent manner. AB 1397 (Inventory of Land for Residential Development) AB 1397 specifies that housing elements can only identify "potential sites" to accommodate new housing if that land has a realistic capacity to accommodate new housing development, and takes a more stringent approach to what is considered "realistic" in terms of development potential. Staff believes AB 1397 is unlikely to have immediate impacts on the current City process and procedures. However, it may have a significant impact on the site inventory that will be prepared for the next housing element in 2023, particularly because the bill specifically prohibits use of housing sites in the new inventory if they have been included in the City's inventory for two cycles and have not been developed with housing. In Pleasanton, this would potentially eliminate several sites from inclusion in the next Housing Element opportunity site list, including the previously mentioned remaining high density housing sites. Other Housing Package Bills The remaining bills described below do not appear to create significant policy or procedural issues for the City. SB 167/AB 678 (Housing Accountability Act) SB 167 and the identical AB 678 increase the burden of proof required for a local government to reject or require downsizing of a housing project that includes affordable units. These bills also require written documentation to justify decisions to reject this type of housing project, and impose fines on jurisdictions that improperly reject or require downsizing of housing projects or fail to comply with required timelines for making approval decisions. The City has not rejected any multifamily housing projects in recent history, and the minimum and maximum density requirements on existing housing inventory sites have also prevented the reduction in density from being an issue. Staff does not anticipate the requirements of SB167/AB 678 will be an issue for the City, provided properties are approved at densities that are within the range(s) specified by the applicable zoning. AB 879 (Annual Reporting & Fees) This bill adds more technical requirements to provide additional data for required annual reports, which document the City's actual housing production each year, starting with the Annual Progress Report due April 1, 2019. It also directs HCD to evaluate the Page 6 of 9