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SB 166 are a game-changer for this cycle and will require a much-focused policy discussion on how to handle sites not built out to their maximum density or their assigned affordability level. She further advised it will alter assumptions made about selected sites and the likelihood of them building out to 100%. In response to Councilmember Balch's inquiry, Mr. Bergman clarified a proposed site's viability is not a question of financial viability. He advised AB 1397 comes into play if there is a rezoning requirement because HCD would want some level of assurance a project could go forward on the site. He advised if parcels owned by different people were being combined into one site, HCD would want to see an indication the owners are willing to work together. He advised there is not a requirement to work at the finest level of detail due to the City exceeding the 5,000-unit threshold. In response to Councilmember Balch's inquiry, Director Clark confirmed staff and LWC must complete the governmental constraints to affordable housing study which speaks to the City's approval process, fees, and turnaround time before approval. She advised it is a challenge because the City cares so much about what projects look like and how they interface with neighborhoods but noted this process takes time. She explained in an ideal world there would be good and clear objective design standards like Councilmember Narum inquired about to help streamline projects and reduce the amount of uncertainty for developers about what will be acceptable. In response to Councilmember Testa's inquiry, Director Clark clarified the number of units per acre does not directly relate to the size of each unit because you could always have a larger building. She advised there are controls to regulate the size, height, and setbacks. In response to Councilmember Testa's inquiry, Director Clark clarified workforce housing has a relationship to the middle bracket of income housing ranging from 80-100% of AMI. She advised it is often called the "missing middle" because it is hard to build it. She noted it refers to housing for groups like nurses, teachers, and retail workers who provide important functions to the community and benefit from living close to work but have a challenge finding housing in communities like Pleasanton. Ms. Wise advised the AMI ranges come from the HUD. She explained workforce housing is typically not subsidized with low-income housing tax credits so it can be hard to accommodate because the market does not always fill the needs of those who need this range. In response to Councilmember Testa's inquiries, Director Clark confirmed Pleasanton has built 32.12% of its very-low-income allocation during the fifth cycle, it is still the top figure of any city in Alameda County. She confirmed Pleasanton has produced 300% of its above-market rate RHNA allotment in this cycle and noted this trend exists across the Bay Area. In response to Councilmember Arkin's inquiries, Director Clark clarified the ratio of density to the square footage of the units is a function of building size. She advised some cities made policy decisions to set minimum and maximum unit sizes and the City could consider one. She explained determining what sorts of units are built where and in what order stated is a combination of opportunity, partnership, and strategy. She noted this works best when the City is proactive about looking to do a particular thing and searches out partners for a specific purpose, leveraging the available funding but agreed it is a challenge. She clarified under "no net loss" in SB 166 with an underdeveloped site the City would have to either document it has the remaining capacity to build the unbuilt units or add additional capacity if it does not. She confirmed the City has not yet filed its appeal of the RHNA allocation and advised the ABAG board is meeting this week to layout the process and timing. She advised they will know more shortly about the appeal process and how the City would like to participate in it. She clarified Pleasanton's RHNA allocation is a function of the regional allocation and area income discrepancies. She advised part of it is also ABAG's methodology in allocating different income level portions of the regional allotment. Lastly, she confirmed the City can deny a project if it does not meet the zoning requirements. City Council Minutes Page 6 of 10 May 18,2021