Council Approves Tentative Settlement for Housing Cap Dispute

After months of negotiations, city officials Tuesday night unanimously approved (4-0) a tentative settlement with housing cap opponents.

City officials said that the agreement will allow the city to comply with state laws for providing affordable housing and still maintain local control.

Pleasanton's voter-approved housing cap, which limits housing in the city to 29,000 units, was found to violate state law early this year. The council will formally approve the settlement on Aug. 17.

Mayor Jennifer Hosterman, who along with Councilmember Cindy McGovern, helped to negotiate the deal, said it allows the city to move forward.

"It was time to realistically look at what we have, do what we could, to try and maintain our lovely town and give us the ability to grow, but also come in compliance with state law," she said. "We've achieved that."

Housing advocates had sued the city in 2006, saying that the housing cap and a growth management law  prevents the city from providing its share of affordable housing in the region.

In reaching the deal with housing cap opponents, the city wanted to minimize legal costs, to reach agreements in other outstanding lawsuits and to restore the city's non-residential permitting powers.

A March ruling against the cap froze the city's ability to issue permits for non-residential construction or development. City Manager Nelson Fialho said this included the city's powers to approve commercial building permits such as removal of signage, electrical improvements and expansions of buildings. Once the settlement is executed, that ban will be lifted.

In negotiating the settlement, city officials said they wanted to maintain a process already in place for the Hacienda Business Park . A Hacienda Task Force has been working on planning and providing guidelines for a development project near the Dublin/Pleasanton BART station. 

The settlement agreement between the city, the non-profit organization Urban Habitat and California Attorney General Jerry Brown includes the following:

• Removing the housing cap from the General Plan. Instead, the city will consider other"growth management" strategies that are consistent with state laws.
• Rezoning of three sites in the Hacienda Business Park development project will have to incorporate state requirements. The agreement calls for, among other things, a set of development guidelines that sets a minimum density of 30 units per acre and allows for at least 15 percent of the housing units to be affordable housing.
• Updating the City Housing Element to include discussion, identification and inclusion of housing for all income levels.
• Adopting a resolution on non-discrimination housing policies and preparing a Climate Action Plan to address concerns on how the city analyzes environmental impacts of development projects.

Clifford Rechtschaffen,  special assistant attorney general, commended the council at last night's meeting and said residents should be proud of the agreement.

"The city could have chosen to continue litigation in this matter," he said. "Instead city leaders chose to roll up their sleeves ... [the city] can be a demonstration on how you can grow sustainably, meet the needs of the population and retain the feel of the local community."

For housing advocates, the plan addresses how the city can provide for affordable work force housing.

At last night's meeting, Councilmember Jerry Thorne pointed out that the lawsuit brings out a broader issue -- the conflict between state and local law when it comes to determining land-use and housing issues.

"I'm all for affordable housing and doing our share," he said. "But it really should be done by the community and not by the state."

Financial Matters

Under the agreement, the City will pay $1.99 million over two years to Urban Habitat for their legal fees.

According to an April staff report, the city already spent $500,000 in outside legal consultation. 

Background

A non-profit group called the Urban Habitat first challenged the city's housing cap in 2006, saying that it hindered affordable housing development, which the state mandates through its Housing Element Law.

California Attorney General Jerry Brown joined the suit in 2009. Brown said  that in addition to the housing cap, Pleasanton's growth management ordinance also limits the number of homes the City Council can approve. Therefore, the city is unable to meet regional housing goals.