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Growth Management The City adopted its first Growth Management Ordinance (GMO) in 1978, designed to regulate the location and rate of new residential growth in a period of sewage treatment constraints and air quality concerns'. The GMO is contained in Chapter 17.36 of the City's Municipal Code. The following are exempt from the GMO: • ADUs and JADUs approved in accordance with City zoning regulations. • Mobile homes and/or living quarters located on school sites, public and institutional properties, and commercial/industrial properties used for security purposes or other purposes ancillary to the primary use, the use of which has been approved in accordance with City zoning regulations, when such residential units do not exceed one dwelling per site. • A condominium conversion or replacement unit of an existing unit demolished and/or destroyed. In 2010, the City amended its GMO so it would not prevent the City from approving residential development that furthered the City's process towards RHNA. The City completed further revisions in 2012 and 2013 to streamline the growth management process and address requirements and conditions resulting from the Urban Habitat Settlement Agreement concerning the City's housing cap and RHNA. In 2015, the City made additional amendments to ensure that the GMO does not include constraints that would prevent the City from meeting its share of the regional housing need for all income levels during the Housing Element planning period per 5th Cycle Housing Element Program 30.2. The 2015 amendment included a provision that if growth management unit allocations are unavailable during a particular year and the City has approved a project containing affordable units that is subject to an Affordable Housing Agreement, growth management unit allocations from previous and/or future years shall be approved in the number required to accommodate the affordable housing units. Accommodating such units may require borrowing from the next regional housing needs allocation period. The current annual housing unit allocation commencing July 1, 2014, though July 30, 2022, is 235 units per year, and is consistent with the 5th Cycle RHNA allocation requirements. Since 2016, the Growth Management Ordinance has not been a limiting factor on housing production or cost, as affordable and high-density projects associated with the previous Housing Element update rezoning's were exempt from Growth Management approval and the number of issued residential building permits has been, on a yearly basis, lower than the annual GMO unit allocation. ' The 1978 growth management ordinance, Ordinance 849, was also known as the Residential Allocation Program (RAP). Over time, the RAP became known as the Growth Management Ordinance (GMO). Housing Constraints City of Pleasanton i C-23