CITY COUNCIL REGULAR MEETING AGENDA PACKET

ORDINANCE NO. 2287 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PLEASANTON APPROVING AMENDMENTS TO CHAPTERS 17.40 (AFFORDABLE HOUSING FEE), 17.44 (INCLUSIONARY ZONING), AND 18.38 (HOUSING OPPORTUNITY ZONE DISTRICT) OF THE PLEASANTON MUNICIPAL CODE, AS FILED UNDER CASE P24-0334 WHEREAS, on November 6, 1990, the City Council adopted Ordinance 1488, to establish Chapter 17.40 Lower-Income Housing Fee of the Pleasanton Municipal Code, which chapter was retitled in 2019 to Chapter 17.40 Affordable Housing Fee; and WHEREAS, on November 7, 2000, the City Council of the City of Pleasanton adopted Ordinance 1818, adding Chapter 17.44 Inclusionary Zoning to the Pleasanton Municipal Code, in order to enhance the City’s ability to mitigate the effect of new market-rate development on the demand for affordable housing; and WHEREAS, in 2017, AB 1505 amended California Government Code Section 65850 and added Section 65850.1, to "reaffirm the authority of local jurisdictions to include within these inclusionary housing ordinances requirements related to the provision of rental units" and "does not modify or in any way change or affect the authority of local jurisdictions to require, as a condition of the development of residential units, that the development include a certain percentage of residential for-sale units affordable to, and occupied by, households with incomes that do not exceed the limits for moderate-income, lower- income, very-low income, or extremely-low income households;" and WHEREAS, on December 19, 2023, the City Council adopted Ordinance 2272 to create Chapter 18.38 Housing Opportunity Zone District of the Pleasanton Municipal Code, with this chapter reflecting similar standards to those in the Objective Design Standards for Housing Element Sites; and WHEREAS, California Government Code Section 65580(d) states that all cities have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community; and WHEREAS, Program 2.1 of the 2023-2031 6th Cycle Housing Element calls for the City to continue to implement the Inclusionary Zoning Ordinance, and actively pursue strategies to improve its effectiveness in producing affordable housing in conjunction with new development, including study of potential changes to the proportion of inclusionary units required in multi-family developments, identification of a target mix of affordable units and unit size standards, and monitoring the effectiveness of the ordinance in delivering affordable units, with modifications to be evaluated to better achieve that goal; and WHEREAS, since its adoption, the Inclusionary Zoning Ordinance has resulted in the production of hundreds of below-market-rate housing units in Pleasanton and contributed a valuable source of funding to support the production of affordable housing and programs that preserve access to and support affordable housing for Pleasanton households; and WHEREAS, in January 2024, the City retained professional services firm Economic and Planning Systems (EPS) to provide analysis and recommendations with respect to modification to the inclusionary rate and target affordability limits, and in particular to evaluate the feasibility of such changes with respect to the overall production of market-rate residential units; and Page 30 of 126