HomeMy WebLinkAbout06 - CC-6 - SB 2 Planning Grant Application - 11/5/20191
CITY COUNCIL AGENDA REPORT
MEETING DATE: NOVEMBER 5, 2019 ITEM NUMBER: CC-6
SUBJECT: SB 2 PLANNING GRANT APPLICATION
DATE: OCTOBER 18, 2019
FROM: PLANNING DIVISION/DEVELOPMENT SERVICES DEPARTMENT
PRESENTATION
BY:
MINOO ASHABI, PRINCIPAL PLANNER
FOR FURTHER INFORMATION
CONTACT:
MINOO ASHABI (714)754-5610
Minoo.ashabi@costamesaca.gov
RECOMMENDATION:
Staff recommends that the City Council adopt a resolution authorizing the City Manager
(including his or her designee) to apply for the California Department of Housing and
Community Development (HCD)’s SB 2 Planning Grants Program (PGP) in the amount
of $310,000 and, if awarded, authorize the City Manager to execute the standard
agreement.
BACKGROUND / ANALYSIS:
The 2017 Legislative Housing Package included 15 bills initiating new regulations and
providing new financial resources aimed at addressing the statewide housing shortage.
The Housing Package provided statewide initiatives and regulations to streamline the
approval process for housing development, including the creation of funding for
housing. Included in the Housing Package, Senate Bill 2 imposed a $75 fee on the
recordation of real estate documents to provide funding to support affordable housing.
The funds from the first year of the fees will be allocated to local governments via
planning grants intended to help jurisdictions accelerate and facilitate housing
production.
HCD released a Notice of Funding Availability (NOFA) on March 28, 2019, identifying
that $123 million would be available to local governments under the SB 2 Planning
Grants Program. Funding for each locality is based on population estimates published
by the Department of Finance. The City of Costa Mesa is defined as a medium size
city, with a population between 60,000 and 200,000 people, thus the maximum award
the City can receive is $310,000.
Staff proposes to request the full $310,000 to fund up to three projects as follows:
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1) Zoning Code Amendment to update the City’s Accessory Dwelling Unit (ADU)
ordinance as required by the latest state legislation which will become effective
on January 1, 2020.
2) Purchase and update to software and hardware equipment to expedite electronic
plan check and planning review.
3) 6th Cycle Housing Element Update (2021-2029 planning period) which will
require contracting with an expert consultant to update the City’s Housing
Element to meet the City’s Regional Housing Needs Assessment. The 6th Cycle
Housing Element is required to be complete by October 2021.
The grant monies can be used to fund a portion or all of these projects at the discretion
of the City as long as they result in the encouragement of housing production; no
matching fund is required. If received, the funds must be expended by the end of the
grant term period which will run from March 28, 2019 to June 30, 2022. If the above
criteria is not met, for instance should a project be denied or no action taken prior to the
deadline, the project would not be eligible for reimbursement. For this reason, staff
recommends projects that are required to be completed, such as the Housing Element
Update and the Accessory Dwelling Unit ordinance.
The State distributes grant funds through a noncompetitive application process, to help
jurisdictions finance the preparation, adoption or implementation of plans that
streamline housing approvals or accelerate housing production. Additional information
on the SB 2 PGP program can be found on the program webpage:
http://hcd.ca.gov/grants-funding/active-funding/planninggrants.shtml.
To be eligible for a planning grant, the City’s proposed projects must demonstrate a
nexus to housing production acceleration or meet the State’s proposed Priority Policy
Area (PPA) categories. Applications proposing a project that falls into one of the PPA
categories are looked upon favorably. As defined by HCD, PPAs feature one of the
following zoning, design, and policy characteristics:
Rezone to permit housing by-right
Objective design and development standards
Specific plans or form-based codes coupled with CEQA streamlining
Accessory dwelling units (ADU) or other low-cost building strategies
Expedited processing
Housing related infrastructure financing and fee reduction strategies.
The first two of the selected projects fall under the PPA category which are more
streamlined; whereas, the Housing Element Update requires additional information that
has been included in the grant application. To be eligible for reimbursement, the
selected projects must be approved by City Council and completed prior to June 30,
2022.
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As part of the grant application process, HCD requires that the City Council adopt a
resolution authorizing application for, and receipt of, PGP funds. The three selected
projects noted above and described in more detail in the Grant Application (included as
Attachment 2) would require approval from the City Council in order for the City to
receive the grant funds.
PUBLIC NOTICE:
There is no public notice requirement for adoption of the resolution.
ENVIRONMENTAL DETERMINATION:
The actions recommended in this report are exempt from review under the California
Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section
15061(b)(3). Any proposed changes to the Zoning Code and Housing Element of the
General Plan resulting from the projects selected for grant funding purposes may be
subject to review under CEQA.
ALTERNATIVES CONSIDERED:
The deadline to submit the grant application is November 30, 2019. The City Council
could adopt, modify or not adopt the recommended resolution to apply for the grant
funds.
FISCAL REVIEW:
There is no fiscal impact associated with the grant application. If the City is awarded the
grant funds, staff will return to the City Council for acceptance of the funds as well as
approval of a budget adjustment recognizing and appropriating the grant revenue for the
specified purposes.
LEGAL REVIEW:
The City Attorney’s Office has reviewed this agenda report and the attached resolution
and approves them as to form.
CITY COUNCIL GOALS & PRIORITIES:
The actions recommended in this report are consistent with City Council Goal No. 4
(Housing). If awarded, PGP grant funds would provide funding to anticipate and plan for
the City’s Regional Housing Needs Assessment (RHNA) allocations.
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CONCLUSION:
With availability of SB 2 funds, staff recommends that the City Council adopt a
resolution authorizing the City Manager to apply for the California Department of
Housing and Community Development (HCD)’s SB 2 Planning Grants Program (PGP)
in the amount of $310,000 and, if awarded, authorize the City Manager to execute the
standard agreement.
Attachments: 1. Draft City Council Resolution
2. Draft SB 2 application
MINOO ASHABI BARRY CURTIS, AICP
Principal Planner Director of Economic and Development
Services
KELLY TELFORD, CPA KIMBERLY HALL BARLOW
Finance Director City Attorney