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Staff Report to the Planning Commission Prezone of Eastbrook Magdalena February 2, 2006 Page 2 of 2 annexed in the future, it will add to the supply of available housing units in the Town and provide greater housing variety at higher densities than currently are allowed in the Town of Los Altos Hills. On May 15, 2003, the City Council unanimously adopted the recommendations of the subcommittee and forwarded the housing element to HCD for review. Subsequently, on November 26, 2003, the Town received notification from HCD that the 2002 Los Altos Hills housing element was in "full compliance" with the State's housing element law. Housing Element Implementation — By approving and adopting the 2002 Housing Element, the Town had committed to undertake a five-year schedule of actions to implement the housing programs outlined in the element. As part of the next housing element update, the Town will have to provide the State with a program by program review of implementation actions from the previous planning period. The State will then determine whether the goals, policies, and programs of the previous plan were adequately met. Penalties for Non -Compliance Qualifying for State Funds - While current state law does not provide penalties for non- compliance, certain State funds are linked to a local government's compliance with housing element law. For example, jurisdictions that have submitted annual progress reports and have housing elements in compliance are eligible for Workforce Housing Grant Program funds, a non competitive grant funded by Proposition 46 that rewards jurisdictions for issuing building permits for housing developments affordable to lower- income households. In addition, local governments will receive bonus grants if they are on target to meet their overall share of the regional housing need. Court Challenge - Enforcement of the housing element can also occur through private litigation. A City that has a noncompliant housing element allows citizen groups, private developers, and those with an interest in land use regulations the ability to sue. If a lawsuit is brought against a city or county, usually one of three areas is challenged: consistency with other planning documents, internal consistency and compliance with state laws governing general plans. A judge who finds a general plan invalid can strip a locality of its land use power, rendering a city or county powerless to enact zoning ordinances or approve new developments. SB910 — This bill introduced by Senator Joe Dunn in 2002 would have imposed substantial financial penalties on cities that failed to comply with housing element law. The bill did not pass but similar legislation could be reintroduced. ATTACHMENTS: 1. State Housing Element Law Overview, State of California Department of Housing and Community Development, August 31, 2005 2. Planning Commission Staff Report and Attachments dated December 8, 2005