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ADMINISTRATIVE REVIEW DRAFT <br />the preservation and improvement of the City's residential neighborhoods. It recognizes the benefits of a <br />diverse, well -maintained housing stock. <br />While the focus of the General Plan is on the City of San Leandro, it is important to view the Plan in the <br />larger context of the San Francisco Bay Area. The shortage of affordable housing is widely recognized as <br />one of the greatest challenges facing the Bay Area today. The region's housing costs are the highest in <br />the nation, potentially threatening its future economic vitality, environment and quality of life. The <br />population is expected to grow by another million residents by 2015, with housing supply continuing to <br />lag behind demand. <br />The housing crisis has sparked a regionwide campaign to make more efficient use of land in established <br />communities and create a land use pattern that supports higher density housing and transit use. San <br />Leandro's new General Plan is at the forefront of this campaign. New infill housing, along with the <br />services to sustain that housing, are important parts of the vision for the City's future. <br />San Leandro needs new housing to survive as a healthy City. It needs housing for its workforce, which is <br />expected to grow by the thousands during the next decade as older industrial and commercial sites are <br />redeveloped. It needs housing for its seniors and others with limited mobility and fixed incomes. It needs <br />housing for its teachers, its police and fire personnel, its nurses and child care workers, and the retail and <br />service workers that are the lifeblood of the local economy. It needs housing for families in crisis and <br />others who cannot find adequate shelter in the local marketplace. <br />While the City has witnessed tremendous residential construction during the past five years, most of the <br />new homes have been affordable to just a small fraction of the City's population. Fewer than one -quarter <br />of San Leandro's households can afford the median priced home in the City today. The Housing Element <br />provides a strategy for supplementing "market rate" housing with housing that is affordable to a larger <br />segment of the population. This includes opportunities for first-time homebuyers, new rental housing, <br />and housing that is especially designed for people with special needs, such as the elderly and disabled. <br />The "Fair Share" Process <br />State law has established a process for assigning the responsibility for housing production in California to <br />individual cities and counties. This process is known as the Regional Housing Needs Determination, or <br />the "fair share" allocation process. <br />The fair share process began in the late 1990s, as the State Department of Housing and Community <br />Development (HCD) determined that the nine -county Bay Area needed to produce 310,761 new housing <br />units between 1999 and 2006 to satisfy regional demand. The Association of Bay Area Governments <br />(ABAG) negotiated with HCD to reduce this figure to 230,743 units, based on projected economic and <br />population growth in the region. <br />During 1999, ABAG developed a formula to allocate the 230,743 housing units to the cities and counties <br />of the Bay Area. The formula took a number of factors into consideration, including projected job <br />growth, population growth, land supply, and local policies. In addition to identifying the total number of <br />units assigned to each community, the formula determined how many of these units needed to be <br />HOUSING ELEMENT 1-2 SAN LEANDRO GENERAL PLAN <br />:-,�!Rd <br />