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FINANCIAL STATEMENT There is no financial impact anticipated as a result of this initial discussion. The majority of the cost of the update will be paid by approved grant funding (LEAP and REAP grant programs) with the remainder to be paid by the Lower Income Housing Fund, as approved in conjunction with the professional service agreements approved by the City Council on March 16, 2021. BACKGROUND 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 production 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 next Housing Element update (the 6th Cycle) must be adopted by January 2023, to address the planning period from 2023-2031. The Planning Commission and Housing Commission have had the opportunity to review and provide input on the draft Preliminary Report sections in September; comments from these two commissions, along with and public comment have been summarized in Attachment 2. The draft Housing Commission and Planning Commission minutes are included as Attachments 3 and 4 and public correspondence included in Attachment 6. Input from both bodies is discussed in more detail below. DISCUSSION: PRELIMINARY REPORT As noted in previous meetings, state law establishes a series of very specific requirements as to the scope, content, and process by which a housing element is updated and adopted, including review and approval (known as certification) by the California Department of Housing and Community Development (HCD). A significant part of the Housing Element is the Preliminary Report. The Preliminary Report, specific sections of which will be reviewed as part of this meeting will include all the following required sections once complete. Sections indicated in bold below are included for this meeting. • Introduction • Appendix A - Housing Needs Assessment: Examines demographic, employment and housing trends and conditions that affect the housing needs of the community. • Appendix B - Sites Inventory and Methodology: Identifies locations of available sites for housing development or redevelopment to ensure that there is adequate capacity to address the Regional Housing Needs Assessment (RHNA). (Forthcoming) Page 2 of 13