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RECOMMENDATION Staff recommends the City Council: 1. Adopt a resolution certifying the Environmental Impact Report (EIR) (State Clearinghouse No. 2022040091) for the 6th Cycle Housing Element, adopting a statement of overriding considerations, making findings of fact, and adopting a mitigation monitoring and reporting program (MMRP); 2. Adopt a resolution approving a General Plan amendment to update the Housing Element for the 6th Cycle including findings of compliance with State law; and 3. Adopt a resolution approving General Plan amendments consistent with the 6th Cycle Housing Element, Stoneridge Mall Framework and Objective Design Standards. FINANCIAL STATEMENT There is no fiscal impact resulting from the direction City Council provides at this meeting. Implementation of policies and programs in the future may require allocation of funds. 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 provision of housing to meet those needs at all income levels. Periodic updates of the Housing Element are required by State law. The City's current Housing Element, which was adopted in 2015, covers the 5th Cycle planning period from 2015 to 2022. The Draft Housing Element currently under review covers the 6th Cycle planning period from 2023-2031. RHNA Process A key component of the Housing Element is the RHNA (Regional Housing Needs Allocation), which is a planning target representing the City's "fair share" of the regional housing need, as determined by HCD and the regional Council of Government (in the Bay Area, ABAG). The City's RHNA is established at 5,965 units —this number was assigned to the City based on a methodology developed by ABAG in consultation with various stakeholders, through a multi-month process in 2020 and 2021. Certification by the State HCD reviews each housing element prepared by individual jurisdictions across the state and determines its compliance with State law. If HCD issues a finding that the Housing Element is in substantial compliance with State law, it is referred to as "certification" of the Housing Element. At the direction of the City Council, the City submitted its draft Housing Element for review by HCD on August 16, 2022. HCD completed its review and provided a comment letter to the City on November 14, 2022. Additionally, staff met twice with HCD staff to discuss comments in more detail and gain clarity. Staff prepared a response HCD's comments and proposes a series of changes to the Draft Housing Element in response. An updated Housing Element responding to HCD's comments will be resubmitted to HCD upon adoption of the document by the City Council for its ultimate certification. However, the City's resolution for adoption will make all the Page 2 of 14