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Key Changes in Housing Element Law In recent years, the State has adopted significant new housing-related legislation, which will influence and shape the upcoming Housing Element Update. These include but are not limited to: • Housing Crisis Act (SB 330) - Makes changes to land use and zoning law to encourage housing production, by limiting the scope of local review of housing projects to objective standards only, limiting the number of public hearings for projects, and shortening review timeframes. • Adequate Housing Element Sites (AB 1397) - Strengthens local governments' obligation to identify a supply of adequate sites available to meet their share of regional housing needs at all income levels. • No Net Loss (SB 166) - Requires jurisdictions to maintain adequate sites to always accommodate its remaining regional housing needs allocation throughout the housing element planning period. • Affirmatively Furthering Fair Housing (AB 686) - Requires housing elements to demonstrate the local jurisdiction is affirmatively furthering fair housing. The new legislation has reinforced local governments' obligation to identify a supply of adequate sites available to meet their RHNA share at all income levels. Further, it requires jurisdictions to maintain adequate sites to continuously accommodate its remaining RHNA throughout the Housing Element planning period instead of only at adoption. Therefore, a site that is zoned for a certain number of units must provide that number of units at the allocated affordability level; if a development project is approved for a fewer number of units the remaining number of units must be allocated to a different site, resulting in no net loss of units. Changes to the sites inventory analysis and "no net loss" provisions are further discussed in this report in the Discussion section, as they relate to the upcoming sites inventory process. In addition, the State laws require additional analysis of fair housing and segregation, placing a greater emphasis on the City to demonstrate that the City is affirmatively furthering fair housing. DISCUSSION Housing Element Process and Schedule The Housing Element update will be an 18-month project that will reflect a robust process with significant engagement with the public, key stakeholders, City Council and City commissions throughout, to ensure a community-wide conversation about housing policy, future housing sites, and strategies and actions to meet the City's assigned RHNA. The public outreach process and framework is discussed in more detail further in the report. A proposed outline schedule is shown in Table 2 below and illustrated in Attachment 4. Initial steps in the process, beginning this month and proceeding through the fall include a review of existing housing conditions, policies, and programs for inclusion in the housing element. Critical to the process will be the sites inventory, whereby sites to accommodate the City's RHNA allocation will be vetted and selected. This will incorporate two steps — first to develop criteria for selection, and then, based on those criteria, to develop a draft Page 4 of 10