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help get your housing element adopted and certified. What actually gets constructed is also monitored. We have to submit an annual progress to show we are meeting our annual goals. Chair Indaco asked about the 20% buffer that has been added to our RHNA numbers. Mr. Barrall respond that state law requires the town to maintain capacity. If a site is planned for ten units, but a developer only builds three, the town has to make up the seven. That is why the 20% is built in. Chair Indaco expressed concern about the water resources and sewer systems. In terms of water units, new units are very efficient, and it could be end up not adding that much in the way of water requirements. We must increase efficiency or conservation. The water agencies will need to help the town make room for it. She asked if there are ways of creating room rentals with a bathroom and kitchenette.. Would that count? Mr. Barrall said there is potential do that and we would need to find evidence. It is not impossible, but there is also no guarantee as there is no specified methodology to do that. Commissioner Couperus asked about the Foothill College options and said he understood that educational institutions are different from the town. Would the RHNA numbers benefit the town if an endowment was created? Mr. Barrall said if it is in the town, the units could be counted. The college does not have a RHNA obligation, but the town does, and if they are in the town limits, the town would get credit. Commissioner Patel asked how one categorizes low income and median income. Is it dependent on the rent charged for the unit? Density per acre depending on the price of the land? How does that translate into very low-income units? What if a developer proposes building a low-income project and then rents it for higher? What can the town do to remedy the situation? Mr. Barrall responded that categories for income are contingent on the rental payment. The rent on that unit would be capped so that a very low-income household could afford such a unit or 30% of gross household income on housing expenses. The density per acre is set in state law and it needs to be at least 20 units an acre. This will be challenging in Los Altos Hills. Commissioner Waschura asked about requirements (20% overage on the RHNA numbers). Is that a hard requirement written into law? Or a guideline for us to follow? Or are we simply trying to write an element that gets through the first time? 3 City Council/Planning Commission Joint Special Meeting Minutes March 24, 2022