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In response to Mayor Brown's inquiry, Assistant City Manager Dolan clarified the State has always allowed cities to estimate Accessory Dwelling Units (ADU) into RHNA projections but would have to have a track record. He advised Pleasanton's track record is increasing due to recent laws. He assumes if SB 9 passes dividing single-family lots there would be a RHNA assumption to be made there as well. In response to Mayor Brown's inquiries, Director Clark clarified the City must demonstrate housing construction constraints do or do not exist for any site. She advised this includes a significant environmental constraint, fault zone, flood zone, or within the airport protection area. She advised the applicability of concerns over water shortages and drought concerns are questions that would have to be asked at the regional or state level. In response to Mayor Brown's inquiries, Mr. Bergman reported there is a process between HCD and the Department of Finance to come up with an eight-year forecast for population growth and dwelling needs. He advised this number is then given proportionally to regional government councils which is ABAG in Pleasanton's case. He advised each jurisdiction across the State had to create a Housing Element to show the State it has enough capacity to accommodate its fair share and noted every region can choose how it assigns its share to its cities and counties. He cited as an example the Southern California Association of Governments (SCAG) used air quality and transportation as the driving factors, along with job location concentrations, in assigning RHNA shares. He advised ABAG's methodology goal was to look for housing in high opportunity areas as defined by the State Tax Credit Map and assign the allocations proportionately, therefore it varies from region to region, and it is not done on a per capita basis. In response to Mayor Brown's inquiry, Mr. Bergman explained a high opportunity area is defined by a State index considering employment, household incomes, and educational outcomes. He advised the map is created by the California Tax Credit Allocation Committee (TCAC) and Director Clark would be familiar with it. In response to Mayor Brown's inquiries, Director Clark clarified HCD is looking for progress towards the entire RHNA allocation regardless of income classifications, but there is a special emphasis on how cities are doing towards the very-low-income and low-income. She advised there are extra expectations in showing the sites will work for those two classifications because they are the most challenging to produce. She confirmed the 3,000-plus square foot units at The Club at Ruby Hill would fall into the above-moderate income category, but the units could also be more expensive rental apartments or condominiums. She advised most of Pleasanton's housing stock falls into the above-moderate category. Assistant City Manager Dolan advised they do not need to be as expensive as Ruby Hill to meet the category and confirmed these units could be either rental or purchase. In response to Mayor Brown's inquiry, Assistant City Manager Dolan confirmed the State mandates are unfunded and cities must assist non-profits or other groups looking to create 100% affordable developments like Sunflower Hill. In response to Mayor Brown's inquiries, Director Clark clarified under AB 1397 the definitions of a vacant site versus a non-vacant site have become much more exacting and noted non-vacant sites can now include parking lots. She clarified there is also a much more detailed timeline than the one included in the presentation which includes City Council check-in points and offered to have them posted on the City's website. Mayor Brown opened public comment. Monith Ilavarasan urged the City to help make affordable housing in Pleasanton a reality. He advised Pleasanton's median house sale price is $1.2 million and the rent for a two-bedroom apartment averages $2.500. placing the City out of reach for many everyday working people and the City's City Council Minutes Page 7 of 10 May 18, 2021