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For additional background information, please refer to the City Council and Planning Commission meeting minutes and staff reports dated April 11, 2002, May 2, 2002, and May 15, 2003. (Attachments 5 and 6) PROPOSED HOUSING ELEMENT REVISION Staff has incorporated changes into the goals, policies, and programs section of the Housing Element since the May 2003 version was reviewed by the City Council. The text that has been revised or added since the May 2003 version is shown in blue and the policies and programs that were new in May 2003 are shown underlined in the attached revised Housing Element. The changes were in response to HCD comments received on July 22, 2003 and include the following: ■ An expanded analysis of the Town's sewer capacity and its potential impact on construction of 2nd units and employee housing. (Program 7, p. 42-43) ■ An expanded analysis of development potential of land in the Spalding/Magdalena area. (Program 8, p. 43-44) ■ Clarifications on the following housing implementation programs: 1. Development standards for employee housing. (Program-9, p. 44) 2. Review process and monitoring program for rd units. (Program 20, p. 48 and Program 12, p. 45) 3. Public outreach efforts to promote affordable housing. (Program 14, p. 46 and Policy P, p. 49) NEXTSTEP The text amendment incorporates all revisions to the Housing Element as evaluated by HCD as meeting the requirements of the State's housing element law. Upon adoption by the City Council, the Housing Element will be forwarded to the Department of Housing and Community Development for their final review and certification. CEQA REVIEW/NEGATIVE DECLARATION The Housing Element update was subject to CEQA and an Initial Study and Negative Declaration was prepared for public review and comment in May 2002. Based on the fact that revisions to the 2002 Housing Element do not create any new significant adverse impacts, the proposed modifications to the Housing Element do not constitute significant new information that would require recirculation of the Negative Declaration pursuant to CEQA Guidelines §15073.5.