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

Page 1 of 4 Item #3 CITY COUNCIL AGENDA REPORT March 17, 2026 Community and Economic Development TITLE: ADOPT A RESOLUTION AUTHORIZING THE MAYOR TO SIGN A LETTER AGREEING TO A TRANSFER OF 18 REGIONAL HOUSING NEEDS ALLOCATION (RHNA) UNITS FROM THE COUNTY OF ALAMEDA TO THE CITY OF PLEASANTON IN CONJUNCTION WITH THE APPROVED ANNEXATION OF THE MERRITT PROPERTY, SUBMITTED BY FOOTHILL BOULEVARD HOLDING COMPANY, LLC, FILED UNDER CASE NO. P22-1089 SUMMARY In July 2024, the City Council approved various entitlements for annexation and development of a 111-lot residential subdivision consisting of 92 age-qualified single-family detached units, 18 affordable duet-style homes, and the retention of one existing single-family residence on approximately 46 acres, known as the Merritt Property. Following the City Council’s action, an application for annexation was submitted to the Alameda County Local Agency Formation Commission (LAFCo) on July 16, 2024, which approved the annexation on February 4, 2026. Pursuant to State law, following annexation of property, there shall be a transfer of a respective share of the Regional Housing Need Allocation (RHNA) between a county and a city. As described in the draft RHNA transfer agreement letter attached to this Agenda Report, the County of Alameda and the City of Pleasanton have negotiated the transfer of 18 above- moderate-income units from the County to the City’s RHNA obligation; the City would obtain credit in its annual reporting for any units for which building permits are issued on the property. Staff requests that the City Council adopt a resolution authorizing the Mayor to sign the agreement letter prior to its submittal to the Association of Bay Area Governments (ABAG), which administers the RHNA transfer process, for approval. RECOMMENDATION Adopt a resolution authorizing the Mayor to sign the RHNA transfer agreement letter dated March 17, 2026 (Attachment 1). BACKGROUND Project Approvals, Annexation, and LAFCo Action In July 2024, the City Council approved a Planned Unit Development (PUD) development plan; a Vesting Tentative Map for a 111-lot residential subdivision (including a Density Bonus) consisting of an age-qualified community with 92 single-family detached homes, 18 affordable senior courtyard detached and duet homes (including an Affordable Housing Agreement), and the retention of one existing single-family residence; related on-and off-site improvements; and a Pre-annexation and Development Agreement on approximately 46 acres, known as the Merritt Property. Page 47 of 242