5_Exhibit B_Resolution_Attachment 2

Housing Constraints City of Pleasanton | C-25 development to meet its inclusionary requirement. At the discretion of the City, alternatives include:  Construction of units off-site at a location within the city other than the project site  Land dedication  Credit transfers if a project exceeds the total number of inclusionary units required  Alternate methods of compliance as approved by the City Council  Payment of a lower income housing fee The use of any of these alternative methods of compliance is subject to City review and approval memorialized in an Affordable Housing Agreement. The Agreement is negotiated by City staff and the applicant. It is then brought to the Housing Commission for recommendation and ultimately to the City Council for final approval. Agreements include a contribution of lower income housing funds towards the project to help offset the cost of including affordable units. The process is run simultaneously with the development application review and does not extend the development review process. No project has ever been denied due to the failure to negotiate an Affordable Housing Agreement that has been acceptable to both the City and the applicant. Commercial, office, and industrial development are also required either to construct affordable units or pay an in-lieu fee. Residential projects of fewer than 15 units are required to pay an in- lieu affordable housing fee. In 2018, the City prepared nexus studies to help determine appropriate amounts to charge for the lower income housing (in-lieu) fee. The analysis evaluated the maximum fee for residential (for-sale and for-rent development) and non-residential development and assisted the City with the establishment of updated in-lieu fees (see Permit and Development Fees for a discussion of City fees). Pleasanton’s inclusionary requirements help to achieve the City’s affordable housing goals by increasing the production of residential units affordable to households of very low, low, and moderate income either through construction of units or by providing funds for affordable housing. Another purpose of the requirement is to ensure that the remaining developable land in Pleasanton is utilized in a manner consistent with the City’s housing policies and community’s needs. Inclusionary Housing Analysis The City’s IZO has been in effect for over 20 years. During this time, housing costs in Pleasanton have increased, consistent with trends in Alameda County (see Housing Needs Assessment Figures A-40 and A-43). However, the cost of housing is higher in Pleasanton compared to Alameda County overall. The difference in housing cost is affected by many factors including scarcity of developable land, high scoring schools, abundant services and recreational opportunities, high quality infrastructure, easy accessibility to major employment centers, and desirable location and setting, which have likely been primary factors driving housing prices in Pleasanton.