Report to Mayor and City Council
Tuesday, January 14, 2020
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF RESOLUTION 20-010 AUTHORIZING APPLICATION, SUBMITTAL AND RECEIPT OF SB 2 PLANNING GRANTS PROGRAM FUNDS THROUGH THE STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
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I. SUMMARY
The purpose of this grant is to receive technical assistance planning grant funds under the State Department of Housing and Community Development (“HCD”) SB 2 Planning Grants Program (“PGP”). The PGP is intended for the preparation, adoption, and implementation of plans that streamline housing approvals and lead to the acceleration of housing production.
Funding Available
The PGP allocates funds based on population, and the City is eligible for $310,000 with no match requirement. The funds are currently available as part of a “Year 1” noncompetitive, over-the-counter (OTC) basis; however, applicants must meet several threshold requirements. Funding will be disbursed upon the completion of an application that includes an adopted Resolution by the City Council, authorizing application, submittal and receipt of the funds (Attachment A). Grant funds must be expended by June 30, 2022.
The City meets all of the threshold requirements in Accordance with Article II, Section 201 of the Guidelines:
• Housing Element Compliance with HCD;
• Annual Progress Report on the Housing Element to HCD;
• Demonstrate nexus to accelerating housing production; and
• Demonstrate that the City is consistent with State Planning or Other Planning Priorities.
Eligible Activities
• The purchase of the land management software for monitoring the permitting process is an eligible activity and the analysis of the City's current development permitting process is the primary project milestone that will enable the City to improve its development permitting process.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. ADOPT Resolution No. 20-010 authorizing application, submittal, and receipt of Senate Bill No. 2 (Atkins), Planning Grants Program funds through the Department of Housing and Community Development.
2. AUTHORIZE the Mayor to execute the Grant Agreement, following approval as to form by the City Attorney.
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III. ALTERNATIVES
TAKE any other action the City Council deems appropriate.
IV. BACKGROUND
In 2017, then-Governor Brown signed 15 housing bills to address the State’s housing shortage and high housing costs. The approval included the Building Homes and Jobs Act (SB 2), which established a $75 recording fee on real estate documents to increase the supply of affordable homes in California. Because the number of real estate transactions recorded in each county will vary from year to year, the revenues collected will fluctuate. The State is currently in Year 1 and there is approximately $123 million available to all local governments in California under Year 1 SB 2 planning grants.
The Year 1 funding is intended to provide funding and technical assistance to all local government in California to help cities and counties prepare, adopt, and implement plans and process improvements that streamline housing approvals and accelerate housing production.
V. FISCAL IMPACT
If awarded the full amount requested, $310,000, the City will have sufficient funds to procure a Land Management Software System to expedite permit processing that will dramatically reduce permit processing time and facilitate housing production.
VI. EXHIBITS
1. Resolution No. 20-010 (pgs.3-6)
2. SB 2 - Notice of Availability (pgs. 7-18)
Prepared by: Alvie Betancourt, Planning Manager