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P23-0607 and P23-0608, 6th Cycle Housing Element Text Amendments and Rezonings Planning Commission 3 of 6 Housing Element with the non-substantive revisions made in response to HCD comments prior to the August 25, 2023, certification. The 2023-2031 Housing Element includes several programs and policies requiring subsequent actions by the City for full implementation. Specifically, Programs 1.1 and 1.4 require the City to maintain the existing zoning of and also rezone (i.e., apply additional zoning districts) to appropriate areas/sites (housing opportunity sites) to allow residential uses to accommodate Pleasanton’s share of the regional housing need for all income levels.1 Because the City’s Housing Element was not certified until August, 2023, state law requires the necessary re- zoning to be enacted no later than January 31, 2024. In addition to the re-zoning required generally for housing opportunity sites, more specific requirements must be met for the housing opportunity sites identified in the Housing Element as accommodating Pleasanton’s share of the lower-income Regional Housing Need Allocation RHNA). The zoning for such sites must: • Allow for a minimum density of at least 30 units per acre and have the capacity to accommodate at least 16 units (all sites meet this criteria). • Permit owner-occupied and rental multi-family uses by right (per Cal. Government Code §65583.2(h) and (i)) for developments in which 20 percent or more of the units are affordable to lower-income households. • Allow 100 percent residential use and shall require residential use to occupy at least 50 percent of the floor area for a new construction mixed-use project or occupy at least 50 percent of the new floor area proposed on a housing opportunity site with pre-existing commercial/office floor area to be preserved as part of the project. To rezone the housing opportunity sites described above and specific to those housing opportunity sites adopted by the City Council with the Housing Element 2, included in the requested actions described in this report, the City proposes to create the HOZ zoning district within the PMC. See Exhibit B which outlines the parameters of the proposed HOZ district. Development on all the 2023-2031 Housing Element housing opportunity sites is subject to the City’s recently adopted Objective Design Standards for Housing Sites (as adopted in January 2023 and amended in May 2023 by Res. No. 23-1386). Accordingly, another 2023-2031 Housing Element implementation task includes the establishment of a Housing Site Compliance review process to provide applicants and staff with specific guidance regarding the application of the ODS on the submittal/review of development projects on those housing opportunity sites. The codification of this review process within the PMC is included in the requested actions described in this report. See Exhibit D which outlines the parameters of the proposed Housing Site Compliance review process. Twenty-one housing opportunity sites (including 20 new sites included in the 2023 Housing Element, and one “carryover” 5th Cycle Housing Element) are subject to the proposed HOZ rezonings. All new and carryover sites listed in the ODS and Housing Element are also subject 1 Income levels include: moderate income = 80-120% area median income (AMI); low income = more than 50% to less than 80% AMI; and very-low income = not more than 50% AMI. 2 One housing project area/site (BART surface parking lot) carried over from the 5th Cycle Housing Element is also subject to the proposed HOZ and up-zoning to meet the requirements of AB2923, as seen in Table 1.