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BACKGROUND Section 65400 of the California Government Code requires the City to file an annual report with the State Department of Housing and Community Development (HCD) addressing the status of the General Plan Housing Element and progress made toward implementing its goals and policies. The General Plan Housing Element for the 2015- 2023 planning period was adopted by the City Council on January 6, 2015. This annual report will be the fourth submitted for this Housing Element cycle. DISCUSSION The Housing Element Annual Progress Report — 2019 is attached for City Council review (Attachment 1). HCD has specific reporting requirements for the Annual Progress Report, including information contained in a series of standardized spreadsheet tables (completed tables are attached to this report). State housing legislation approved in 2017, requiring more detailed reporting and additional data to be submitted as part of the APR, is now in effect and reflected in this Housing Element APR. Some of the new standardized tables required by HCD, particularly Table A2, are difficult to reproduce in a viewer friendly manner. Staff has attempted to make the tables as clear as possible and a link to pdf copies is available upon request or on the City's website. In the past, HCD only required reporting on the number of housing unit permits issued each reporting year. HCD now requires reporting on the number of completed entitlements, housing unit permits issued, and housing permits finaled during the year, including the type of units (single-family, multifamily, etc.), and the affordability categories (very low-, low-, moderate- and above moderate-income). Table B of Attachment 1 , shown on the next page, is a summary that tracks building permits issued for each year of the Housing Element's Regional Housing Needs Allocation (RHNA) period (2015-2023). In 2019, entitlements were given for 20 new residential housing units (including 11 Accessory Dwelling Units), building permits were issued for 127 new residential housing units, and 139 residential units were finaled. The 127 building permits issued in 2019 is a slight increase from the 98 and 115 permits issued in 2018 and 2017, and a notable decrease from the 387 and 891 permits issued in 2016 and 2015. The number has been remaining relatively consistent in the past few years after substantially decreasing once the higher density Housing Element opportunity sites were redeveloped. Based on the existing market demand and approvals in the past years, staff expects the City will issue a similar number (100 - 125 permits) in 2020. Tables 1 and 2 summarize RHNA progress in the current and prior cycles (Table B in the APR). The City has produced a total of 344 affordable units in the first half of the current eight-year cycle (2015-2023) compared to a total of 207 affordable units in the entire eight-year cycle between 2007-2014. Page 2 of 4