CITY COUNCIL REGULAR MEETING AGENDA PACKET 3-17-26 (3)

6th Cycle Program 2.1: Continue to implement the Inclusionary Zoning Ordinance and actively pursue strategies to improve its effectiveness in producing affordable housing units in conjunction with new development. The following actions will be undertaken by the City: 1. Study the following amendments to the Inclusionary Zoning Ordinance and adopt such amendments provided they are not found to be an undue constraint on the production of housing: An increase to the proportion of inclusionary units required in multi-family projects to be up to 20 percent, rather than the current 15 percent requirement. Identification of a target mix of affordable units (including proportions of verylow, low- and moderate-income units), with the potential for an alternative mix of affordability to be proposed and approved if it would better meet other housing policy objectives to do so. For example, if the project provided deeper affordability, and/or resulted in the production of units suitable for special needs groups such as seniors or persons with mental or physical disabilities. Target affordability mix and unit size standards, including a required proportion of larger (3 or more bedroom) lower-income units, may be implemented through Objective Design Standards (Program 4.2) or the amended Inclusionary Zoning Ordinance. [... for further text see Housing Element Document] Amend the Inclusionary Zoning Ordinance and achieve higher proportions (i.e., greater than 15 percent) and lower affordability levels of inclusionary units from projects approved consistent with the amended Ordinance, provided an inclusionary rate of greater than 15 percent is demonstrated to not constrain housing production consistent with state law; achieve 80 below market rate units over the planning period. Study the Inclusionary Zoning Ordinance (September 2025); amend the Inclusionary Zoning Ordinance based on study (March 2026); evaluate Inclusionary Zoning Ordinance (and modify, if needed) (April 2027) 6th Cycle Continuous Inclusionary Zoning Ordinance updated adopted by City Council on December 3, 2024. https://weblink.cityofpleasantonca.gov/weblink/0/doc/3 09692/Page1.aspx Monitoring of the ordinance is ongoing. Units City is actively monitoring the number deed restricted lower affordability levels of inclusionary units. https://weblink.cityofpleasantonca.gov/we blink/0/doc/309692/Page1.aspx 6th Cycle Program 2.2: Require new commercial development to pay the Lower-Income Housing Fee established by City Ordinance and adopted by the City, or to otherwise mitigate demand for new employee housing as allowed by the Pleasanton Municipal Code (e.g., through construction of units or dedication of land). Regularly evaluate the amount of these fees to ensure that they: (1) remain commensurate with the needs generated by the development; (2) are established at a level proportionate with the actual cost to provide new housing; and (3) are in conformance with state law while ensuring that Pleasanton remains locally and regionally competitive in attracting new commercial investment. Mitigate demand for new employee housing as allowed by the Pleasanton Municipal Code to ensure that is commensurate with the needs generated by the development and proportionate with the actual cost to providing new housing. Evaluate fee and adopt new fee as appropriate (December 2025) 6th Cycle Completed City Council adopted an updated Affordable Housing Fee schedule for residential and commercial development in December 3, 2024. Other The Affordable Housing Fee schedule has been updated. https://pleasantonca.portal.civicclerk.com/ event/260/files/report/779 6th Cycle Program 2.3: Regularly review the Lower-Income Housing Fee for market-rate residential development, including consideration of adjustments to the fee within the amounts supportable by the existing Nexus Study to ensure the fee reflects the cost to mitigate demand for new affordable housing created by new development, and while ensuring that fee levels remain such that they do not present an undue constraint to housing production. As part of the review of existing fees, evaluate and change the basis of the residential fee to be structured on a per square foot basis, so as to incentivize the production of smaller units. Mitigate demand for new affordable housing created by new development, and while ensuring that fee levels remain such that they do not present an undue constraint to housing production. Review and consider updates to fees based on existing Nexus Study (January 2025); commence comprehensive Nexus Study update (January 2026); adopted amended fees based on comprehensive Nexus Study update, including fees on a per square foot basis (March 2026) 6th Cycle Completed The City initiated work on a comprehensive update of the commercial linkage fee, affordable housing in-lieu fee, and development impact fees in December 2023. The study included feasibility analysis and analysis to consider assessing fees on a per square foot basis. The updated fees based on the Study, structured to include per square foot fee rates were adopted in December 17, 2024. Other The fee schedule has been updated. https://pleasantonca.portal.civicclerk.com/ event/305/files/report/781 6th Cycle Program 2.4: Continue to make available funding from sources such as the City’s Lower Income Housing Fund, and the City’s Federal HOME and CDBG funds to assist local non-profit agencies and housing developers. The City will also provide technical support to agencies to seek other sources of funding and to plan and develop affordable and special needs housing. Assist in the development of 100 low- income units over the planning period Ongoing; seek funding biannually (first quarter 2024, 2026, 2028, and 2030) 6th Cycle Continuous Ongoing. City could evaluate allocating federal HOME funds to the 102-unit Kiewit affordable rental housing project when the developer begins to explore financing for the project. Units Still ongoing. In 2024, the City provided LIHF and HOME funds to non-profit agency Tri- Valley REACH to construct a 2- bedroom/2-bath Accessory Dwellling Unit (ADU) for 2 clients with intellectual/developmental disabilities. City Council agenda report for the City loan to Tri-Valley REACH for the ADU construction can be found at: https://laserfiche.cityofpleasantonca.gov/las erfiche/DocView.aspx?db=CityofPleasanton& docid=306647 6th Cycle Program 2.5: Continue to offer waivers or reductions of City fees for affordable housing units, including the following: 1. Exempt all housing units affordable to very low- and low-income households and Accessory Dwelling Units from payment of the Lower- Income Housing Fee. 2. Allow for the approval of fee waivers and/or reductions for inclusionary units and the housing developments of which they are a part, for projects that meet the requirements of the Inclusionary Zoning Ordinance in terms of the proportion of proposed affordable units to be provided. When considering such discretionary fee waivers or reductions, greater consideration will be given to their approval when a housing development’s proposed proportion of lower-income units exceeds the minimum required by the Inclusionary Zoning Ordinance (i.e., not all market rate units in projects that comply with minimum inclusionary requirements will necessarily receive fee waivers or reductions). Increase the number of ADUs and deed restricted affordable housing units. Ongoing as projects applications are processed 6th Cycle Continuous The City continues to exempt all housing units affordable to very low- and low-income households and Accessory Dwelling Units from payment of the Lower-Income Housing Fee. Other The City continues to exempt all housing units affordable to very low- and low-income households and Accessory Dwelling Units from payment of the Lower-Income Housing Fee. Contact Steve Hernandez, Housing Manager shernandez@cityofpleasantonca.gov Page 28 of 242