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BACKGROUND <br /> Section 65400 of the California Government Code requires the City to file an annual <br /> report with the State Department of Housing and Community Development (HCD) <br /> addressing the status of the General Plan Housing Element and progress made toward <br /> implementing its goals and policies. The General Plan Housing Element for the 2015- <br /> 2023 planning period was adopted by the City Council on January 6, 2015. This annual <br /> report will be the fourth submitted for this Housing Element cycle. <br /> DISCUSSION <br /> The Housing Element Annual Progress Report — 2018 is attached for City Council <br /> review (Attachment 1). HCD has specific reporting requirements for the Annual <br /> Progress Report, including information contained in a series of standardized <br /> spreadsheet tables (completed tables are attached to this report). State housing <br /> legislation approved in 2017, requiring more detailed reporting and additional data to be <br /> submitted as part of the APR, is now in effect and reflected in this Housing Element <br /> Annual Progress Report. Some of the new standardized tables required by HCD, <br /> particularly Table A2, are difficult to reproduce in a viewer friendly manner. Staff has <br /> attempted to make the tables as clear as possible and a link to pdf copies is available <br /> upon request or on the City's website. <br /> In the past, HCD only required reporting on the number of housing unit permits issued <br /> each reporting year. HCD now requires reporting on the number of completed <br /> entitlements, housing unit permits issued, and housing permits finaled during the year, <br /> including the type of units (single-family, multifamily, etc.), and the affordability <br /> categories (very low-, low-, moderate- and above moderate-income). Table B of <br /> Attachment 1, shown below as Table 1 , is a summary that tracks building permits <br /> issued for each year of the Housing Element's Regional Housing Needs Allocation <br /> (RHNA) period (2015-2023). In 2018, entitlements were given for 34 new residential <br /> housing units, building permits were issued for 98 new residential housing units, and <br /> 421 residential units were finaled. <br /> The 98 building permits issued in 2018 is a slight decrease from the 114 permits issued <br /> in 2017 and a notable decrease from the 387 and 891 permits issued in 2016 and 2015. <br /> The number has been decreasing as the higher density Housing Element opportunity <br /> sites have been redeveloped. Based on the existing market demand and approvals in <br /> the past years, including Irby Ranch and Sunflower Hill, staff expects that the City will <br /> issue less than 100 permits again in 2019. <br /> In comparison to the last RHNA cycle 2007-2014, the City has produced a total of 304 <br /> affordable units in the first half of the eight-year cycle compared to a total of 207 <br /> affordable units in the entire eight-year cycle between 2007-2014. Table 2 shows the <br /> RHNA Allocation Progress as shown in the 2014 APR for the previous cycle. <br /> Page 2 of 4 <br />