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meetings and outreach events which included an in-person booth at the Farmers Market, community workshops, commission meetings, and City Council meetings. Staff has engaged with various stakeholder groups and representatives from community-based organizations, as well as the development community, to seek input on opportunities, constraints, and challenges around housing in Pleasanton. The City Council last reviewed the draft Housing Element on July 19, 2022. The Housing Element update process is reaching its conclusion and the City aims to adopt the updated Housing Element by January 31, 2023. This timeline was adjusted as described to the City Council on November 15, 2022. DISCUSSION Modifications to Draft Housinq Element On November 14, 2022, the City received a letter from HCD with the results of its review. While the draft Housing Element meets many of the statutory requirements, HCD identified several revisions, including requests for additional information and analysis deemed necessary before the agency will certify the Housing Element (Attachment 1). Additionally, prior to receipt of the formal comment letter, staff held two calls with HCD to discuss the agency's preliminary comments in greater detail and gain additional specificity and clarity. Staff suggests a series of modifications including bolstering details and data included in the Draft Housing Element in certain background sections of the report, adding several programs and policies to address specific concerns raised by HCD, and clarifying discrete timing for programs. Several of HCD's comments related to the adequacy of the sites inventory, including requesting additional justification as to how several of the non -vacant sites would in fact be likely to develop with housing in the 8 -year housing element period. Attachment 2 provides a matrix that summarizes the recommended changes in response to HCD comments, and Attachment 3 incudes redlines to the policies and programs. While many of the changes are to provide additional analysis or detail to background sections of the Housing Element, there are some more substantive revisions reflected in programs that relate to the City's existing development review process and residential development standards. These items are outlined below. Planned Unit Development Process In both HCD's formal letter to staff, as well as in the two calls with staff, HCD provided feedback related to and queried the Planned Unit Development (PUD) process: as a process they are concerned it may constrain housing production by introducing extra time, cost, or uncertainty into the review process for residential projects. One of the requirements of the Housing Element is to analyze potential governmental constraints to housing production and reduce them wherever possible. HCD's comments question the use of the PUD process generally, as well as the means by which development standards are created and how various development standards imposed by the City may affect housing cost, supply approval and project certainty. Page 3 of 21