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PAGE 2 <br />MAYOR AND TOWN COUNCIL <br />SUBJECT: 2007 to 2014 Housing Element <br />Octobei° 28, 2010 <br />demographics. Specifically, the Council questioned how much of this demographic cohort is <br />seniors who are owner-occupied homeowners. Other topics discussed at the study session. were <br />the Regional Housing Needs Allocation (RHNA), appropriateness of incorporating residential as <br />a use by right into the commercially-zoned Affordable Housing Overlay Zones (AIIOZ), and <br />ABAG housing and employment projections. <br />This report will sunnnarize information relative to all of the aforementioned, including the <br />additional demographic information requested on the extremely low; very low, and low income <br />categories. Since t11e October study session, staff 11as received approximately 15 requests for <br />additional clarification and comments from Council members. Responses to the comments and <br />requests for clarification will be summarized in a desk item that will be transmitted to the <br />Council prior to the November 1, 2010, Town Council meeting. Finally, also included in this <br />report is follow up information requested from the September 29, 2010, GPC meeting. <br />ANALYSIS: <br />A. Regional Housing Needs Allocation (RHNA) <br />Based on questions and discussion that occurred at the October 18, 2010, joint study <br />session, staff felt it was important to reiterate the purpose of the Regional Housing Needs <br />Allocation (RHNA) and how municipalities address the RHNA. The IZIINA is mandated <br />by State Housing Law as part. of the periodic process of updating local- housing elements <br />of the General Plan. Tl1e RHNA quantifies the need for housing within each jurisdiction <br />during. specified plamling periods. The current plaruzing period is 2007 to 2014. <br />Municipalities use the RPINA in land use plamiing, prioritizing local resource allocation, <br />and in deciding how to address identified existing and future housing needs resulting <br />from population, employment and household growth. The RHNA does not necessarily <br />encourage or promote growth, but rather allows municipalities to anticipate growth,. so <br />that collectively the region can grow in ways that enhance quality of life, improve access <br />to jobs, promotes transportation mobility, and addresses social equity, fair share housing <br />It is important to recognize that Housing Element law does not require each municipality <br />to guarantee construction of the number of units allocated through the RHNA. However, <br />municipalities are required to provide adequate opportunities for development on suitably <br />zoned sites through the local General Plan and zoning and to allow for development of <br />the number of housing units established by the RHNA. In the event a municipality is <br />unable to demonstrate that there is adequate capacity to meet the RHNA allocation, <br />special programs must be developed to address thaf shortfall within the Housing Element. <br />Construction of the residential units is generally a private sector enterprise. However, <br />municipalities with Redevelopment Agencies often partner wit11 private sector developers <br />