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Page 2 of 5 clear as possible in printed format, and a link to PDF (electronic) copies is available upon request and in the online version of the attachment that is part of the agenda report. In the past, HCD only required reporting on the number of housing unit permits issued each reporting year. HCD now requires reporting on the number of applications submitted, housing units entitled, housing unit permits issued, and housing permits finaled during the year, including the type of units (single-family, multifamily, etc.), and their affordability categories (very low-, low-, moderate- and above moderate-income). HCD additionally requires information about residential lot splits and housing development units created with the provisions of SB 9. Building Permits Issued and Progress Towards Meeting RHNA Table B of Attachment 1 (shown below as Table 1) is a summary that tracks building permits issued for each year of the 6th Cycle Housing Element’s Regional Housing Needs Allocation (RHNA) period (2023-2031). In 2023, building permits were issued for 18 new residential housing units (7 single-family homes and 11 ADUs). Note that the APR for this reporting period reflects a total of 54 units (44 single-family homes and 10 ADUs), because units permitted between June 30, 2022 and January 1, 2023 are also counted in this planning period, due to provisions in State law related to the timing of the Housing Element update. All of the building permits that were issued or finaled for single-family residences are for above moderate-income housing, whereas the ADU building permits that were issued and finaled are able to be reported at various affordability levels, pursuant to the assumptions of a regional ADU affordability survey conducted by ABAG/MTC. Per HCD, jurisdictions should utilize actual or anticipated affordability of ADUs. For example, utilizing information collected as part of the permit process; however, if this information is not available, HCD is allowing Bay Area juirstictions to utilize ADU affordability assumptions from ABAG’s (Association of Bay Area Government) ADU affordability methodology for the Annual Progress Reports covering calendar year 2023 and 2024. For Pleasanton, the ABAG methodology allows the City to assume non-deed-restricted ADUs are 30% very low income, 30% low income, 30% moderate income and 10% above moderate income. For subsequent APRs, these assumptions may be updated or changed. Based on the existing market demand and approvals/entitlements issued in the past year, staff expects the City will issue a greater number of permits in 2024 as compared to 2023. Projects expected to begin construction include the 305-unit Avalon Bay project and the 42-unit 2025 Santa Rita Road project. The 360-unit Stoneridge mall project may also begin construction in 2024, although it could be delayed past this date. In addition, the number of ADUs is anticipated to continue to increase over the next year, consistent with past years’ trends. Despite these general trends, ongoing relatively high interest rates and construction costs may continue to affect housing production, and it is difficult to predict whether the City will see a slow-down in new housing construction. Tables 1 and 2 summarize RHNA progress in the current cycle (2023-2031) and prior cycle (2014-2022) (Table B in the APR). The City has produced a total of 45 above-moderate units so far within the current eight-year cycle (2023-2031). Only units whose building permits have been issued by the City count towards RHNA progress. The City produced three non-deed restricted ADUs at each of the three affordability levels in 2023 and two non-deed restricted Page 32 of 228