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HomeMy WebLinkAboutItem 11b - Local Early Action Planning (LEAP) Grant Program DATE: June 16, 2020 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director Lisa Flores, Planning & Community Development Administrator Prepared by: Christine Song, Associate Planner SUBJECT: RESOLUTION NO. 7313 AUTHORIZING APPLICATION FOR AND RECEIPT OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (“HCD”) LOCAL EARLY ACTION PLANNING (“LEAP”) GRANT PROGRAM FUNDS Recommendation: Adopt SUMMARY In the 2019-20 Budget Act, Governor Gavin Newsom allocated funds to be used for all local jurisdictions to prioritize the acceleration of housing production. In an effort to combat the ongoing statewide housing crisis, the California Department of Housing and Community Development (“HCD”) set aside approximately $119 million of these funds to establish the Local Early Action Planning (“LEAP”) Grant Program. Similar to the SB 2 Grant, which the City was awarded this year, the LEAP Grant Program provides one- time funding to all eligible cities and counties for the preparation and adoption of planning documents and the implementation of process improvements that will facilitate the acceleration of housing production. Each City has the opportunity to apply for the LEAP grant in a non-competitive environment. If awarded, the LEAP Grant funds may be utilized for a variety of housing- related planning activities, including preparations for the sixth cycle of the Regional Housing Needs Assessment (“RHNA”). Applications for the LEAP grant must be submitted by July 1, 2020. It is recommended that the City Council adopt Resolution No. 7313 authorizing application for, and receipt of, the LEAP Grant Program funds. BACKGROUND On January 27, 2020, the HCD released the Notice of Funding Availability for the LEAP Grant Program for approximately $119 million. The LEAP Grant Program provides funding and technical assistance to all eligible cities and counties who will prepare, adopt, and implement process improvements that serve one or both of the following purposes: Resolution No. 7313 - LEAP Grant June 16, 2020 Page 2 of 3 • Accelerate housing production, and/or • Facilitate compliance to implement the sixth cycle of the Regional Housing Needs Assessment (“RHNA”) The RHNA is mandated by State Housing Law, as part of the periodic process of updating the Housing Element of the General Plan. The RHNA quantifies the need for housing within each local jurisdiction during specific planning periods. The next planning period, which is the sixth cycle of the RHNA, is from October 2021 through October 2029. Cities use the RHNA in deciding how to address existing and future housing needs through land use planning and resource allocation. Under the LEAP Grant Program’s guidelines, the City of Arcadia’s population falls within the jurisdiction size of 20,000 to 59,000, and therefore is eligible to receive up to $150,000 in grant funding. The LEAP Grant is non-competitive and funds would be made available to eligible applicants on a reimbursement basis. In order to qualify for the grant, an application must be submitted which lists eligible activities (proposed programs and/or projects) that align with the goals stated above. Eligible activities must demonstrate a nexus to accelerating housing production within the jurisdiction and may include a variety of planning documents and processes. DISCUSSION Given the fact that funds are available to all local government agencies in the State on a non-competitive basis, the Development Services Department would like to take advantage of the funding. The LEAP Grant Program allows for a range of activities that can be implemented to accelerate housing production and streamline housing approvals. Although the exact scope of the work is not yet established, it is recommended to use the funding to complete the following tasks to help accelerate housing production: 1. Analyze the feasibility of creative methods to encourage the production of additional housing units in the City (including affordable housing) to meet the City’s Regional Housing Number Assessments (“RHNA”) in preparation of the Housing Element Update for the 6th cycle. 2. Identify a sites analysis to determine the location and feasibility of how the City can reasonably meet its RHNA requirements for affordable housing developments. 3. Preparation of the CEQA review that will analyze the environmental impacts and any future changes to zoning in the City to allow for increased residential density or uses. 4. Preparation and adoption of documents for the 2021-2029 Housing Element Update. The 2021-2029 Housing Element must include several State mandated requirements that increase the cost of the process. These requirements include a site analysis to Resolution No. 7313 - LEAP Grant June 16, 2020 Page 3 of 3 determine if the City can reasonably meet its RHNA requirements for affordable housing units, innovative strategies to put forward incentives for housing opportunities to address the housing shortage, and CEQA review that will analyze the environmental impacts. Funding awarded from the LEAP Grant will be allocated to these tasks as well as the preparation of the Housing Element Update itself. The application for the LEAP grant is due by July 1, 2020. The projects listed above will be proposed in the application and are all considered eligible activities under the program guidelines. Consultants will be utilized for much of this work, and as the projects are further refined, they will be brought back to the City Council for final approval and the expenditure of funds. ENVIRONMENTAL ANALYSIS The proposed application is not defined as a project under the California Environmental Quality Act (“CEQA”) and will not have a potential for resulting in physical change to the environment. Therefore, it is exempt per Section 15378 of the CEQA Guidelines. FISCAL IMPACT Based on preliminary estimates for the application, the City is requesting $150,000, which is the maximum limit for a City of this size. As mentioned, once the various projects have been refined in scope, they will be placed on a future City Council agenda for review and approval prior to the expenditure of any funds. LEAP grant funding will be distributed on a reimbursement basis. Applicants can submit invoices for reimbursement quarterly based on deliverables completed. Projects funded by the grant must be encumbered by June 30, 2021, and funds must be expended by December 31, 2023. All monies for the proposed projects will be from the grant and no City funds are necessary. RECOMMENDATION It is recommended that the City Council determine that this project is exempt under the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7313 authorizing application for, and receipt of, California Department of Housing and Community Development (“HCD”) Local Early Action Planning (“LEAP”) Grant Program Funds. Attachment: Resolution No. 7313