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Page 1 of 4 <br />Item #7 <br /> CITY COUNCIL AGENDA REPORT <br /> <br />November 19, 2024 <br />Community Development <br /> <br />TITLE: INTRODUCE AN ORDINANCE APPROVING AMENDMENTS TO PLEASANTON <br />MUNICIPAL CODE CHAPTERS 17.44 (INCLUSIONARY ZONING), 17.40 <br />(AFFORDABLE HOUSING FEE) AND 18.38 (HOUSING OPPORTUNITY ZONE <br />DISTRICT); AND ADOPT A RESOLUTION APPROVING AMENDMENTS TO THE <br />OBJECTIVE STANDARDS FOR HOUSING ELEMENT SITES (CASE NO. P24- <br />0505) <br /> <br />SUMMARY <br />Since early 2024, the City has undertaken a comprehensive update of the Inclusionary Zoning <br />Ordinance (IZO), Chapter 17.44 of the Pleasanton Municipal Code (PMC). In addition to <br />updating the IZO with respect to the inclusionary rate and target affordability levels, the <br />amendments provide much greater specificity and increased objectivity related to design and <br />development standards for inclusionary units, and also clarify and improve the procedures, <br />findings and requirements for projects seeking approval of alternative means to comply with <br />the IZO. Following three City Council workshops to discuss aspects of the IZO, including <br />review of a redline draft ordinance on October 15, 2024, and a recommendation by the <br />Planning Commission on September 11, 2024, the amended IZO is presented to the City <br />Council for adoption. With the IZO amendments, several related chapters of the Pleasanton <br />Municipal Code (PMC 17.40, 18.48), and the Objective Design Standards for Housing Element <br />Sites, are also proposed to be amended to update and align them to the amended IZO. <br /> <br />RECOMMENDATION <br />Introduce an Ordinance approving amendments to Pleasanton Municipal Code Chapters 17.44 <br />(Inclusionary Zoning), 17.40 (Affordable Housing Fee) and 18.38 (Housing Opportunity Zone <br />District); and adopt a resolution approving amendments to the Objective Standards for <br />Housing Element Sites (Case No. P24-0505). <br /> <br />BACKGROUND <br />Since early 2024, City staff and a professional services team led by Economic & Planning <br />Systems (EPS) have undertaken work to update the City’s Development Impact Fees and <br />Affordable Housing Fees, and to update the existing Inclusionary Zoning Ordinance. <br /> <br />The process to update the City's Affordable Housing fee has to date been conducted in <br />tandem with discussion of potential changes to the IZO. In particular, these discussions have <br />focused on the inclusionary rate reflected in the IZO (i.e., the proportion of affordable units <br />required as part of market-rate projects), and the required minimum affordability levels for <br />inclusionary units, since those factors influence the recommended affordable housing fee <br />amount. Amendments are also proposed to PMC Chapter 17.40 (Affordable Housing Fee), <br />Chapter 18.38 (Housing Opportunity Zone District), and the Objective Design Standards for <br />Housing Element Sites, to align with the amendments to the IZO and make other clarifying <br />changes. <br />Page 43 of 658