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Housing Element Annual Progress Report 2 May 16, 2011 The purpose of the APR is to track and monitor the status of and progress in addressing the City's housing needs and goals. The primary HE goals and objectives include: 1. New housing opportunities 2. Affordable housing development 3. Administration of housing programs 4. Home ownership 5. Affordable housing conservation 6. Green and sustainable neighborhoods 7. Special needs populations S. Elimination of housing constraints 9. Fair housing The State also uses the APR to monitor progress on the Regional Housing Needs Allocation (RHNA). State law requires that each city and county ensure that its "fair share" of regional housing accommodate community needs at all income levels. Therefore, the Association of Bay Area Governments (ABAG) allocated to San Leandro its RHNA assignment of 1,630 total housing units for the 2007 -2014 period at various income levels as shown in the following table. Also shown in the table below is the City's total production of housing units by the end of 2010: INCOME LEVELS RHNA PRODUCTION OF OF UNITS ALLOCATION HOUSING UNITS Very low- income 368 120 Low - income 228 4 Moderate - income 277 19 Above Moderate- 757 75 income TOTALS 1,630 218 Between 2007 and 2010, the City met 13% of its overall total RHNA goal (218 of 1,630 units). With regard to income levels, the City's strongest performance has been 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 former blighted motel completed in 2008, and Estabrook Place (51 units), a senior housing complex completed in 2010. However, 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 downturn in the regional 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,