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HomeMy WebLinkAboutE-10 Staff Report - SB 2 Grant ApplicationCONSENT ITEM E-10 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MATT MARQUEZ, ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR DATE: NOVEMBER 18, 2019 SUBJECT: REQUEST TO APPROVE A RESOLUTION AUTHORIZING APPLICATION FOR, AND RECEIPT OF, SB 2 PLANNING GRANTS PROGRAM FUNDS BACKGROUND: In 2017, former Governor Brown signed a 15-bill housing package aimed at addressing the state’s housing shortage and high housing costs. Specifically, it included the Building Homes and Jobs Act (SB 2, 2017), which will increase the supply of affordable housing. As a result, the state of California set up funding and technical assistance to all local governments in California to help cities and counties prepare, adopt, and implement plans and process improvements that streamline housing approvals and accelerate housing production. Funding will help cities and counties: •Accelerate housing production, •Streamline the approval of housing development affordable to owner and renter households at all income levels, •Facilitate housing affordability, particularly for lower- and moderate-income households, •Promote development consistent with the State Planning Priorities (Government Code Section 65041.1), and •Ensure geographic equity in the distribution and expenditure of the funds On March 28, 2019, the State Department of Housing and Community Development (HCD) announced the release of Notice of Funding Availability (NOFA) for approximately $123 million under the Senate Bill 2 (SB 2, 2017) Planning Grants Program (PGP). The PGP is intended for the preparation, adoption, and implementation of plans that streamline housing approvals and accelerate housing production. Any local government within the State is eligible to apply and receive grant funds so long as they meet certain requirements and if the funds are used for certain eligible activities which are discussed below. The deadline to submit an SB 2 Grant application to the State is November 30, 2019. Prior to submission of the application the City Council is required to adopt a resolution authorizing said submittal. APPROVED CITY COUNCIL 11/18/2019 SB 2 Grant Application November 18, 2019 Page 2 of 4 RECOMMENDATION: Staff recommends that the City Council take the following actions: 1) Approve a Resolution No. 2019-C59 authorizing application for, and receipt of, SB 2 Planning Grants Program funds; and 2) Authorize Staff to submit a completed SB 2 Grant application to the California Housing and Community Development Department (HCD), on behalf of the City. ANALYSIS: Funding Availability HCD determined maximum award amounts for large, medium, and small localities, based on population estimates from the Department of Finance (DOF). The table below shows the minimum and maximum awards available: The City of Azusa is defined as a Small Locality which means the City qualifies for a maximum award amount of $160,000. Eligibility Requirements In order to apply for SB 2 Grant funding, all applicants (local governments) must meet the following threshold requirements: 1. Housing Element compliance: The applicant must have a housing element that has been adopted by the jurisdiction’s governing body by the date the applicant submits the application package, and is subsequently determined to be in substantial compliance with state housing element law pursuant to Gov. Code Section 65585 by the time of award. The City of Azusa is in substantial compliance with this requirement because the City adopted the Housing Element (2014-2021) in 2013. 2. Annual Progress Report (APR) on the Housing Element: The applicant must submit the APR to the Department, as required by Gov. Code section 65400, for the current or prior year by the date the applicant submits the application package. The City of Azusa is in substantial compliance with this requirement because the City submitted their APR for fiscal year 2018 in March 2019. SB 2 Grant Application November 18, 2019 Page 3 of 4 3. Nexus to accelerate housing production: The applicant must propose and document plans or processes that accelerate housing production. The application must demonstrate a significant positive effect on accelerating housing production through timing, cost, approval certainty, entitlement streamlining, feasibility, infrastructure capacity, or impact on housing supply and affordability. The applicant can meet this requirement by utilizing a Priority Policy Area (PPA). The following are the PPAs that a local government can utilize to receive SB 2 Grant funding: a. Rezone to Permit By-right: Rezoning for significant additional housing capacity without, or lesser, discretionary review, or establishing zoning to permit residential development by-right, particularly multifamily, without discretionary action pursuant to Government Code Section 65583.2(h) and (i). b. Objective Design and Development Standards: Developing objective design standards or pre-approved site and architectural plans that facilitate non-discretionary permitting. c. Specific Plans of Form based Codes Coupled with CEQA Streamlining: Designating and rezoning for additional housing capacity or preparing specific plans or form codes that include zoning and development standards and plan-level environmental analysis that can be used to streamline future housing projects and facilitate affordability. d. Accessory Dwelling Unit (ADU) or other low-cost building strategies: Encouraging ADUs and other low-cost building types through actions above state law such as, outreach, fee waivers, pre-approved plans, website zoning clearance assistance, and other homeowner tools or finance tools. e. Expedited Processing: Speeding up approvals and permit processing, including instituting programs that streamline or consolidate the review process or create a separate process for expedited review of housing projects. f. Housing Related Infrastructure Financing and Fee Reduction Strategies: Develop and implement approaches to local, regional or sub-regional housing related infrastructure financing. Create plans and programs to finance and increase infrastructure with accompanying enhanced housing capacity, such as enhanced infrastructure financing districts. Fee reduction and rationalization approaches, such as reassessing fees to adhere to best practices in reducing costs, deferrals, sliding scales or proportionate impacts fees, etc. The PPA that the City will utilize in the SB 2 Grant application is Expedited Processing wherein the grant funds will be used to update the public counter to transform it into an all- in-one permit center and to obtain a Land Management System to provide the Economic and Community Development Department and associated Departments/Divisions like Engineering Division, Parks Division, Electric Division, Water Division, and Police Department with updated software to enable efficient project tracking and expedite approvals. This software will also provide another layer of government transparency by providing current project information in an efficient and easy to way to access. 4. State Planning and Other Planning Priorities: Applicants must demonstrate that the locality is consistent with State Planning or Other Planning Priorities. CA HCD Notice of Funding Availability 7 SB 2 Planning Grants NOFA Year-1 Consistency may be demonstrated through activities (not necessarily proposed for SB 2 funding) that were completed within the last five years. With implementation of the Azusa TOD Specific Plan in 2015, the City of Azusa is in substantial compliance with the Encourage Efficient Development Patterns State Planning Priority as shown in Attachment 1 of the SB 2 Grant application. SB 2 Grant Application November 18, 2019 Page 4 of 4 FISCAL IMPACT: There is no fiscal impact associated with submitting an SB 2 Grant application to HCD. Prepared by: Reviewed by: Robert (Dean) Flores Manuel Muñoz Assistant Planner Planning Manager Reviewed by: Fiscal Reviewed by: Matt Marquez Talika M. Johnson Director of Economic and Community Development Director of Administrative Services Reviewed and Approved by: Sergio Gonzalez City Manager Attachments: 1) SB 2 Grant Application 2) Resolution No. 2019-C59 – SB 2 Planning Grants Program Funds Attachment 1 RESOLUTION NO. 2019-C59 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AUTHORIZING APPLICATION FOR, AND RECEIPT OF, SB 2 PLANNING GRANTS PROGRAM FUNDS WHEREAS, the State of California, Department of Housing and Community Development (Department) has issued a Notice of Funding Availability (NOFA) dated March 28, 2019, for its Planning Grants Program (PGP); and WHEREAS, the City Council of the City of Azusa desires to submit a project application for the PGP to accelerate the production of housing and will submit a 2019 PGP grant application as described in the Planning Grants Program NOFA and SB 2 Planning Grants Program Guidelines released by the Department for the PGP Program; and WHEREAS, the Department is authorized to provide up to $123 million under the SB 2 Planning Grants Program from the Building Homes and Jobs Trust Fund for assistance to Counties (as described in Health and Safety Code section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)) related to the PGP Program.; and WHEREAS, the City Council has reviewed all written evidence and oral testimony presented to date. NOW, THEREFORE, CITY COUNCIL FOR THE CITY OF AZUSA, DOES HEREBY RESOLVE AND FIND AS FOLLOWS: Section 1. Recitals. The recitals set forth above are true and correct and are incorporated into this Resolution by this reference. Section 2. CEQA Compliance. The submittal of an SB 2 Planning Grants Program application through this Resolution does not commit the City Council to any action that may have a significant effect on the environment. As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act. Section 3. The City Council of the City of Azusa is hereby authorized and directed to apply for and submit to the Department the 2019 Planning Grants Program application in the amount of $160,000. Section 4. In connection with the PGP grant, if the application is approved by the Department, the Economic and Community Development Director is authorized to enter into, execute, and deliver a State of California Agreement (Standard Agreement) for the amount of $160,000, and any and all other documents required or deemed necessary or appropriate to evidence and secure the PGP grant, the City’s obligations related thereto, and all amendments thereto (collectively, the “PGP Grant Documents”). Attachment 2 Resolution No. 2019-C59 to Authorize Application For, and Receipt of, SB 2 PGP Funds November 18, 2019 Page 2 of 3 Section 5. The City shall be subject to the terms and conditions as specified in the Standard Agreement, the SB 2 Planning Grants Program Guidelines, and any applicable PGP guidelines published by the Department. Funds are to be used for allowable expenditures as specifically identified in the Standard Agreement. The application in full is incorporated as part of the Standard Agreement. Any and all activities funded, information provided, and timelines represented in the application will be enforceable through the executed Standard Agreement. The City Council hereby agrees to use the funds for eligible uses in the manner presented in the application as approved by the Department and in accordance with the Planning Grants NOFA, the Planning Grants Program Guidelines, and 2019 Planning Grants Program Application. Section 6. The Economic and Community Development Director is authorized to execute the City of Azusa Planning Grants Program application, the PGP Grant Documents, and any amendments thereto, on behalf of the City as required by the Department for receipt of the PGP Grant.. Section 7. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. Section 8. Certification. The Secretary shall certify to the adoption of this resolution. ____________________________ Joseph R. Rocha Mayor ATTEST: Jeffrey Lawrence Cornejo, Jr. City Clerk Resolution No. 2019-C59 to Authorize Application For, and Receipt of, SB 2 PGP Funds November 18, 2019 Page 3 of 3 APPROVED AS TO FORM: Marco Martinez City Attorney Best Best & Krieger LLP I HEREBY CERTIFY that the foregoing Resolution No. 2019-C59 was duly adopted by the City Council of the City of Azusa at a regular meeting thereof on the 18th day of November, 2019: AYES: NOES: ABSTAIN: ABSENT: COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: Jeffrey Lawrence Cornejo, Jr. City Clerk