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-- environment, the activity is not subject to CEQA. In addition, CEQA does not apply to regional housing needs determinations made by the City pursuant to Government Code section 65584. Thus, the proposed Housing Element Update is exempt from CEQA both under Sections 15601(b)(3) and 15283 of the CEQA Guidelines. 3. Based on substantial evidence in the record, including but not limited to: documentation of planned and, realized densities -of recent and proposed developments, potential of affordable housing in coexistence with institutional uses, the, size of suitable development areas and pockets of land on nonvacant sites, large increases in residential and land values, and continued high market demand for residential units and desire to situate in the Los Altos Hills community, the existing uses on the nonvacant sites identified in the site inventory to accommodate the RHNA are likely to be discontinued during the planning period and therefore do not constitute, an impediment to planned residential development on the site during the planning period. 4. As required by Government Code Section 65585(e), the City Council has considered the findings made by the Department of Housing and Community Development (HCD) included in the Department's letter to the Town of Los Altos Hills dated January 25, 2023, and consistent with Government Code Section 65585(f), the City Council has revised the Housing Element in response to the findings of the Department to substantially comply with the requirements of State. Housing Element Law as interpreted by HCD. As a result of the edits made in response to HCD's letter, the Housing Element substantially complies with Housing Element Law, as provided in Government Code section 65580 et seq. and contains all provisions required by State Housing Element Law, as shown in the Findings of Substantial Compliance and Completeness Checklist, provided as Exhibits A and B to this resolution, respectively, incorporated herein by this reference. The City Council hereby finds that the Housing Element is in substantial compliance with State Housing Element Law. 5. The Town of Los Altos Hills 2015-2023 Housing Element. is hereby repealed in its entirety, and the Town of Los Altos Hills 2023-203.1 Housing Element, as shown in Exhibit C, is hereby adopted. 6. This Resolution shall become effective upon adoption by the City Council. 7. The Planning Director or their designee is hereby directed to file all necessary material with the HCD for the Department to find that the Housing Element is in conformance with State Housing Element Law and is further directed and authorized to make all non -substantive changes to the Housing Element to make it internally consistent or to address any non -substantive changes or amendments requested by the Department to achieve certification. 8. The Planning Director or their designee is hereby directed to distribute copies of the Housing Element in the manner provided in Government Code Sections 65357 and 65589.7 Resolution 09-23 Page 4