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Attachment 1 page 5 of 5 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 §6202 ) Jurisdiction CITY OF SAN LEANDRO Reporting Period 1/1/2007 • 12/31/2010 General Comments: Between 2007 and 2010, the City of San Leandro met 13% of its overall total RHNA goal. With regard to income levels, the City's strongest performance is in the production of "very low' income housing units, meeting 33% of its target goal to date. All of the actual production of units in the 'very low' income category can be attributed to two multifamily housing rental developments: Casa Verde (68 units), a formerblighted motel, and Estabrook Place (51 units), a new senior housing complex. Production was less robust in the low -, moderate- and above moderate - income categories. Although the marketplace primarily contributes to the production of above moderate - income units, the City has only met 10% of its RHNA goal to date. These housing production numbers are a reflection of the current economic recession, the State's downturn in the housing market and steep decline in residential permits issued since 2006. The pace of California's housing construction has slowed considerably, with the number of permits issued in 2009 at less than 20% of peak levels and only one -third of the annual volume experienced through the 1990s (Maya Brennan and Keith Wardrip, 2010, July. Data from the California Building Industry Association. Building California's Future: An Economic and Fiscal Analysis of Housing Construction in the Golden State, Center for Housing Policy). Despite the economic downturn, new housing construction (including lower -cost housing development) still has positive economic and fiscal effects on the State and local jurisdictions. Developing lower -cost housing is not only an important strategy for attracting and retaining an essential workforce but also a sound financial move for local government (Ibid.) See attached Staff Report, dated May 16, 2011, for narrative report on key Housing Element accomplishments.