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Action Planning (REAP) Grant. The City has also applied for an additional $100,000 in competitive REAP grant funding, but this application has not yet been approved. Any remaining costs (up to $283,416, depending on the outcome of the competitive grant proposal) are proposed to be funded from the Lower Income Housing Fund, consistent with previous Housing Element updates. RECOMMENDATION 1) Receive update on the status of the 2023-2013 (6th Cycle) Housing Element process; 2) Approve and authorize the City Manager to execute a Professional Services Agreement with Lisa Wise Consulting for an amount not to exceed $302,001 for the preparation of City of Pleasanton's Housing Element for 2023-2031 (6th RHNA Cycle) and associated EIR; and 3) Approve and authorize the City Manager to execute a Professional Services Agreement with First Carbon Solutions for an amount not to exceed $343,170. FINANCIAL STATEMENT The majority of the cost of the two professional services agreements would be paid by approved LEAP and REAP grant funding with the remaining (up to) $283,416 to be paid by the Lower Income Housing Fund, as has been the case for the City's two prior housing element updates. Planning Division management and oversight of the Housing Element update, and environmental review will be conducted by staff and is part of the Community Development Department budget. BACKGROUND The Housing Element is part of the City's General Plan; it is a comprehensive statement by the community of its current and future housing needs and proposed actions to facilitate the provision of housing to meet those needs at all income levels. As part of the required update, HCD requires each jurisdiction in the State to demonstrate capacity to meet and accommodate their local "fair share" of the assigned Regional Housing Need Determination (RHND), including total housing units across a series of affordability categories. This local distribution is known as the Regional Housing Need Allocation (RHNA) and is determined and assigned through a process led by HCD and regional Councils of Governments (i.e. for the Bay Area, ABAG/MTC). The Housing Element must ultimately demonstrate that there is an adequate number of sites to accommodate the RHNA allocated to the City. Periodic updates of the Housing Element, including State certification, are required to ensure that City policies continue to reflect the changing community needs, challenges, and opportunities in compliance with State law. The current Housing Element, which was adopted in 2015, covers the period from 2015 to 2022. The next Housing Element update, the sixth cycle of such updates, is required by State law to address the period from 2022- 2030 and is required to be adopted by January 2023. Lack of a State-certified Housing Element could subject the City to penalties as a result of legal challenge, including reduction or loss of local control over land use decisions and building-related matters. Page 2 of 8