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DISCUSSION As part of the RHNA process and in addition to numerous comments made to the HMC, Mayor Hosterman forwarded a letter to ABAG detailing concerns with the methodology used to determine RHNA allocations. This letter and ABAG's Technical Report outlining the allocation methodology and allocation of units by income category, was forwarded to the Council previously. On November 2, 2007, ABAG acknowledged receipt of the Mayor's letter and on November 15, it adopted the Technical Report without substantively addressing the concerns raised by the Mayor. Adopting the Technical Report commenced a 60-day appeal period which ended January 17, 2008. In that ABAG made it clear that only items related to specific technical issues would be considered as part of the appeal process, and because the City's issues are policy-oriented rather than technical, an appeal did not seem warranted. The ABAG Executive Board is scheduled to act on any appeals at its March 20 meeting and will formally adopt the allocation methodology at a meeting later this spring. HCD will review the final RHNA and issue its approval by June 30, 2008. Because staff does not anticipate any significant changes to the RHNA allocations as a result of the ABAG appeal period or HCD's review, it is likely that the draft allocations identified in November 2007 will be final. The current target numbers are as follows: DRAFT REGIONAL HOUSING NEEDS ALLOCATION FOR PLEASANTON DRA FT RHNA ALLO CATIONS Household Income Categories Pleasanton Alameda Co. ABAG Re ion Ve Low Income 50%AMI 1,076 10,017 48,840 Low Income 80%AMI 728 7,616 35,102 Moderate Income 120% AMI 720 9,078 41,316 Above Moderate Income 753 18,226 89,242 TOTAL 3,277 44,937 214,500 As a comparison, the region's allocation for the current RHNA, which is addressed in our existing Housing Element, is 228,743 of which Pleasanton has a total of 5,059 units with 729 in the very low income category, 455 in the low income category, 1,239 in the moderate income category, and 2,636 at above moderate. As evidenced by comparing the two allocations, Pleasanton's total unit target has been reduced while its share of providing units in the lower income ranges has increased. It should also be noted that the new RHNA numbers are in addition to the numbers not currently accommodated in the current RHNA. Page 4 of 5