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BACKGROUND Housing Element Overview The Housing Element is part of the City's General Plan and 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. Periodic update of the Housing Element is required by state law; the element reflects the state's housing goal of"attaining decent housing and a suitable living environment for every California family," as well as incorporating the unique concerns of the community. The current Housing Element, which was adopted in 2015, covers the planning period from 2015 to 2022 (5th Cycle). The next Housing Element update (the 6th Cycle) must be adopted by January 2023, to address the planning period from 2023-2031. The City formally initiated the Housing Element update process in May 2021, and held kick-off meetings with the Housing Commission, Planning Commission and City Council in May, and a community-wide introductory workshop on July 24. An extensive outreach effort has also been launched to seek initial input on the Housing Element, including an online survey that to-date has received over 600 responses, meetings with key stakeholders (such as housing developers and community services providers), and creation of a project website and project- specific email distribution list. As was previously outlined in an introductory presentation to the Planning Commission on May 12, 2021, the City has been assigned a draft 6th Cycle RHNA of 5,965 housing units at various levels of affordability. As a key component of the updated Housing Element, the City must document, through a detailed, parcel-specific inventory, adequate land use capacity to accommodate the entirety of its RHNA. RHNA and Sites Inventory Process Overview City staff and consultant team are in the process of evaluating the City's residential land inventory (i.e. sites zoned for residential use "today" with capacity to accommodate additional development, and eligible sites from the prior housing element); as well as the "pipeline" of residential projects already entitled or expected to be entitled in the coming one- to two- year period. Together, all of these sites constitute a baseline of properties that can potentially accommodate at least a portion of the City's RHNA'. The difference between this number, and the RHNA in each category, represents the "gap" that will need to be addressed through sites that will need to be re-zoned to allow for residential uses. Although some work remains to finalize the baseline number of units, initial analysis indicates a minimum of approximately 1,500 lower-income units and 2,000 moderate and above- moderate income units (this number is subject to revision) for which additional sites will need to be identified. Identifying sites will involve a careful and public process of evaluation and vetting before the inventory is finalized by City Council, including the following steps: • Identifying the criteria and scoring system by which new prospective housing sites are to be evaluated. This step is the subject of this meeting and is discussed in greater detail below. ' The baseline inventory will also include or count a certain increment of projected residential units associated with construction of Accessory Dwelling Units (ADUs), following guidance provided by the State. Housing Element Update Planning Commission 2 of 8 . Clark stated it was not discussed at the most recent City Council or Planning Commission meetings but was discussed when the item was considered by the Chamber of Commerce and PDA. She stated other cities had allowed and some had excluded personal services. She summarized the discussion regarding massage businesses that arose during the Downtown Specific Plan (DSP) update, and concerns then about an overabundance of personal services. She Planning Commission Minutes Page 3 of 9 July 28, 2021