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Director Beaudin reported single-family units outpaced multi-family unit production since 1991 due to market conditions, key policy decisions, and legal decisions reflect in the charts provided as part of the agenda report. He noted a drop in unit production after the 1996 voter initiative around the housing cap and a spike during a recession in which Hacienda was allowed to add multi- family units to the business park. Director Beaudin reported that while housing has been measured and consistent, State law changes will limit local control and local processes will be eroded. He referenced the General Plan and noted that it is the guiding policy document for decision making. It points to the vision of the future for the local community. The housing element is one part of the General Plan and it very specifically states the policy approach to addressing the housing needs in the community. He noted a certified housing element is required by the State and there are legal consequences, such as withholding of funds, if the City is not compliant. Director Beaudin presented the Regional Housing Need Allocation (RHNA) and noted it comes in the form of total number of units and is broken down by income category. The 1999-2006 RHNA cycle was developed when the economy was strong. The 2017-2014 RHNA number was down to 3,277 housing units and the 2014-2022 RHNA housing units were down to 2,067. The housing element does not require the City to build the units but does require it put the zoning into place. Director Beaudin reported the community spent much of the 1990s and the 2000s creating legal policies and fighting legal battles to avoid too much new housing being built. However, 1,300 multi-family housing units has been built in the last three or four years based on the identified opportunity sites in the housing element and the market coming to those sites. The City does very well at producing above moderate income housing units, however, there is a feasibility gap when it comes to very low and low and moderate income housing units. Community Development Director Beaudin presented the current (2014 to 2022) and upcoming (2023 and 2031) RHNA. He anticipates the next allocation will be available mid-to-late 2021 which will give the City time to work with City Council, the community, the school district and other service providers. He anticipates a healthy allocation given the economy and the attention from Sacramento associated with the housing crisis. Mayor Thorne briefly paused the presentation to allow the City Council to ask questions before entering into the legislation portion of the presentation. Councilmember Pentin requested to see a final count of housing units finalized during each RHNA cycle moving forward. Director Beaudin reported the RHNA process and the Housing Element update is the City's opportunity to exercise control on how housing looks based on the legislation that is currently in place. He expects additional housing legislation to come forward in the future. The agenda report includes a summary of actions from 2016 through 2018 which included housing and land use bills that are associated with the overall focus in Sacramento. The themes are related to creating and preserving affordable housing, streamlining the local approval process, and increasing local accountability which results in giving the California Department Housing and Community Development (HCD) greater enforcement authority over reporting and the City's progress towards meeting housing goals. Director Beaudin stated that that in 2018, much of the legislative work was clean-up and clarifications to the 2017 Housing Package which included AB 2923, giving BART land use authority for the land it owns adjacent to BART stations. Pleasanton had already identified the BART property as a housing element opportunity site and staff is uncertain if BART will exercise City Council Minutes Page 5 of 9 February 19, 2019