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