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SB 166 requires local jurisdictions to demonstrate similar findings for developments not only based on total numbers, but also if a project is approved for different income categories than shown in the adopted Housing Element site inventory. This would mainly impact high density sites. This means when a high density residential project on an inventory site is presented, and the applicant does not provide the number or percentage of affordable units in the income categories identified for that site in the Housing Element, a new replacement site (or sites) will have to be rezoned for high density residential within 180 days of the inventory site approval, to maintain the possibility of meeting the specified number of units at various income levels. As part of the next RHNA cycle, staff will consider and present options to Council on how to address this issue. 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. There is a low likelihood that any of the remaining high-density housing sites will be redeveloped in the near future. This pause in entitlement proposals allows the City time to consider how best to proceed when an application comes forward. If there is development interest in the remaining high density housing sites, the City will work with the State (HCD) to ensure the legislative requirements are being navigated 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 this bill is unlikely to have immediate impacts on current City processes 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; and therefore require additional sites to be identified. Other Housing Package Bills The remaining 13 bills, which are summarized in Attachment 2, do not appear to create significant policy or procedural issues for the City. They include bills related to funding for housing projects; additional (voluntary) opportunities to provide streamlined review for housing projects; standards for review for denial of housing projects; and a fix to address restrictions on designation of affordable rental housing units. Future Legislation As the State continues to navigate through the future housing challenges and opportunities, there will continue to be further discussion and pending legislation. Page 4 of 6