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Ms. Stern said that when the Housing Element was written, staff added all the potential residential development available and found the figure was short by 800-900 units from the original housing needs figure given by ABAG. Therefore, Program 98.1 was in recognition that the City was short of its supposed need as presented by ABAG and some sites would be redesignated to meet that need. That was a condition of approval for the Housing Element. Ms. McGovern felt that there are approved projects that may not be built and she felt the 800-900 units could be included in the 27,315 figure. Ms. Stern said about 5,000 units are needed for the ABAG requirement. If staff added the 800 units to 27,315, it would be considered as double counting. Mr. Iserson clarified that the number of units to be achieved by rezoning was not based on the existing General Plan. When staff added potential units, existing units and approved but not built units, it was still less than required by ^B^G. So it was necessary to find more acreage to get additional units. Michael Roush believed that it is possible some of the units in the 27,315 figure may never be built. The City may rezone property to accommodate the other 815 units, but that does not mean those units will be built either. In order to meet the certification requirements of HCD, the City had to identify the areas where the units could be built. The units may never be built, but it is necessary to show there is land available to satisfy the requirement. There is no guarantee or requirement that the units be built, it is simply that the City has designated that the land is available to meet the fair needs allocation. Mayor Hosterman asked if there were any chance the HCD might reconsider recertification in the near future? Mr. Roush responded that staff is assembling information for HCD which would give them assurances the City is moving ahead with all due speed to rezone additional property to accommodate the 800 units and to get the Housing Element recertified. Mayor Hosterman said it would be good to be in compliance, but asked what happens if that does not occur? Mr. Roush said there is no penalty at this point. It is possible some State grants may not be available to the City. When there is a certified Housing Element, there is a presumption that the Housing Element is in compliance with the law. If it were not certified, then if someone were to bring some legal challenge, the City would have to present evidence that it meets statutory requirements and is legal. Mayor Hosterman said from her legal reading, there have been incidents when cities have been out of compliance and were challenged in court, and the courts found in favor of the cities. Joint Workshop City Council and Planning Commission 2 05/24/05