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challenges in the early 2010s, this authority was reaffirmed by the same 2015 State Supreme Court decision noted in discussion of the LIHF, above, and a 2017 Assembly Bill, AB 1505. The adoption of the IZO provided a much more robust means of achieving the actual production of units affordable to households of various income levels and has been responsible for a significant proportion of the new affordable housing built in Pleasanton since 2000. The City's IZO requires: - New multifamily residential projects of 15 units or more to provide at least 15 percent of the dwellings as affordable to very low- and/or low-income households - New single-family residential projects of 15 units or more to provide at least 20 percent of the project's units as affordable to very low-, low-, and/or moderate - income households. - Commercial, office and industrial development to either pay the LIHF or provide affordable housing as part of the project. The specific mix of the units within the three affordability categories is subject to approval by the City Council; inclusionary units are required to remain affordable in perpetuity through recordation of an affordable housing agreement for the project. When constructed as part of a project the inclusionary units are required to be dispersed throughout the project and made to look identical to the market rate units, with the same exterior materials and architectural design. However, the inclusionary units may be of smaller size and have fewer interior amenities, subject to standards identified in the affordable housing agreement for the project. Although the IZO specifies inclusion of units, provisions of the Ordinance allow discretion for the City to approve payment of fees in -lieu of actually constructing units on-site. Generally, the City has preferred to require rental housing units be provided by multi- family rental housing developers (the City has over 1,000 below-market rental units) and has allowed single-family developers to pay in -lieu fees more often (the City has approximately 100 below-market rate ownership units). On an implementation basis, the IZO requires approval of an Affordable Housing Agreement in conjunction with projects not automatically exempt from building inclusionary units. These agreements, which receive input and a recommendation from the Housing Commission, are typically used to negotiate the specific affordability levels, mix of units (bedroom counts), payment of in -lieu fees, and other project requirements. Density Bonus Ordinance To implement Program 9.6 of the Housing Element adopted in 2012, City Council adopted a density bonus ordinance in 2013, codified as Chapter 17.38. As outlined further below, state law prescribes an extensive housing density bonus (HDB) program (Government Code Section 65915 et. seq.) In large part, adoption of the local ordinance was to address a requirement of State law for local jurisdictions to adopt a local ordinance that implements Section 65915. Housing Element Update, P21-0751 Planning Commission 6 of 13