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HomeMy WebLinkAbout04 SB 2 PLANNING GRANT FUNDING„:... Agenda Item 4 AGENDA REPORT Reviewed: City Manager Finance Director N/A MEETING DATE: OCTOBER 15, 2019 TO: MATTHEW S. WEST, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: SB 2 PLANNING GRANT FUNDING SUMMARY: The Community Development Department is proposing to submit a 2019 Planning Grants Program (PGP) project application to the State of California, Department of Housing and Community Development, for up to the maximum amount of non- competitive funding allowed to the City of Tustin ($310,000) for multiple eligible projects that support the State's program. The PGP is intended to provide funding to local governments for the preparation, adoption, and implementation of plans that streamline housing approvals and accelerate housing production. RECOMMENDATION: That the City Council: Adopt Resolution No. 19-42 (Attachment A) authorizing and directing the Community Development Director to apply for and submit to the State of California, Department of Housing and Community Development, the 2019 Planning Grants Program application in an amount up to $310,000; authorize the City Manager to enter into and execute an agreement with the State for said funds, and, authorize the Community Development Director to manage the grant. FISCAL IMPACT: The grant provides reimbursement payments for all grant -related expenses. The City must have adequate cash flow to pay all grant -related expenses prior to requesting reimbursement from the State. Therefore, there may be a temporary fiscal impact to the General Fund until reimbursement occurs. BACKGROUND: In 2017, SB 2, as described in Health and Safety Code Section 50470 et. seq. (Chapter 354, Statutes of 2017 (SB 2)), was made law. It is aimed at addressing the State's housing shortage and high housing costs by establishing a permanent funding source for affordable housing. Half of the funding generated in year one will be available to local governments through noncompetitive grants (the subject of this resolution request) for planning efforts (prepare, adopt and implement plans and process improvements) to ultimately achieve streamlining housing approvals and to accelerate housing production. SP 2 Planning Grand Funding October 15, 2019 Page 2 The year two (future) funding will allocate 70 percent of the funding towards local governments for affordable housing purposes (implementation funding). Planning projects that are pursued for use of the planning grant funding must meet State identified eligible activities. At present, it is anticipated that the City's application will focus on the following potential projects (see Attachment B): • Downtown Commercial Core Specific Plan (DCCSP) and Red Hill Avenue Specific Plan (RHASP) area streamlined applications and review systems, • Residential related mixed-use parking strategies for the DCCSP area; • Preparation of citywide accessory dwelling unit (ADU) design guidelines with accompanying examples; • Housing preservation, rehabilitation and intensification incentive plan for Tustin's southwest neighborhood; • Identification of sites suitable for housing development in conjunction with the sixth cycle for the Housing Element Update of the City's General Plan. The City's application will be submitted prior to the State's due date of November 30, 2019. The City should hear back from the State within four months and thereafter enter into an agreement following approval of the application. The time associated with projects under this Grant could commence as of this past March 28, 2019 and must be completed by June 30, 2022. Staff recommends that the City Council adopt Resolution No. 19-42 authorizing staff to submit the noted application and enter into said agreement. 4z), L y N. eag lanning Consultant Attachments: A. Resolution No. 19-42 B. Potential Project Information Elizabeth A. Binsack Director of Community Development ATTACHMENT A RESOLUTION NO. 19-42 RESOLUTION NO. 19-42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY Or TUSTIN, CALIFORNIA, 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 Tustin desires to submit a project application for the PGP program to accelerate the production of housing and will submit a 2019 PGP grant application as described in the Planning Grant's 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 Cities and Counties, as described in Health and Safety Code Section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)) related to the PGP Program. NOW THEREFORE BE IT RESOLVED, the City Council of the City of Tustin resolves as follows: Section 1. The City Council hereby authorizes and directs Staff to apply for and submit to the Department the 2019 Planning Grants Program application in the amount of up to $310,000. Section 2. In connection with the PGP grant, if the application is approved by the Department, the Community Development Director is authorized to enter into, execute, and deliver a State of California Agreement (Standard Agreement) for the amount of up to $310,000, 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"). Section 3. 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. Any and all activities funded, information provided, and timelines represented in the application will be enforceable through the executed Standard Agreement. The City 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 4. The City Manager, and/or his designee, is authorized to execute the City of Tustin 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 5: The City Clerk shall certify to the adoption of this Resolution and shall file a copy of said application with the agenda packet of this City Council meeting. PASSED AND ADOPTED by the City Council of the City of Tustin at a regular meeting on the 15th day of October, 2019. CHARLES E. PUCKETT MAYOR ATTEST: ERICA N. YASUDA CITY CLERK ATTEST: APPROVED AS TO FORM: DAVID KENDIG CITY ATTORNEY STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) CERTIFICATION FOR RESOLUTION NO. 19-42 1, ERICA N. YASUDA, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 19-42 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 15th day of October, 2019, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA CITY CLERK ATTACHMENT B POTENTIAL PROJECT INFORMATION Potential Project Information 1. Downtown Commercial Core Specific Plan (DCCSP) and Red Hill Avenue Specific Plan (RHASP) area streamlined applications and review systems. • With the intention to help streamline the review process for these two newly approved mixed-use areas of the City, deliverables would include focused supplemental applications, applicant and staff resources, a planning staff workbook/checklist, tracking systems (particularly housing, parking, development activity) and output products. • The objectives of these products are to guide applicants to receive concise and complete submittal information, staff to deliver efficient, effective and expeditious reviews, providing a tool kit to staff for disseminating important information quickly and experience fast -tracked processing to the development community. • Project intended to be completed by staff with consultant assistance. • This project is a Department intended "step two" task associated with these two Specific Plan areas. 2. Residential related mixed-use parking strategies for the DCCSP area. • Evaluate and find opportunities for shared parking, additional parking and/or other mechanisms (possibly a parking improvement district) to support and incentivize mixed-use housing in the focused DCCSP area and set the stage to implement viable options. • Deliverables of this project include Plan with implementable strategies and incentives from a scoped workplan. • Project intended to be completed by staff with consultant assistance. • This project is a Department intended "step three" task associated with the DCCSP planning area. 3. Preparation of citywide accessory dwelling unit (ADU) design guidelines with accompanying examples. • Deliverables include ADU design guidelines document and appropriate output products. Currently we have only Code requirements (development standards). • An expected outcome is to provide a winning platform for City and the community helping to ensure the integrity of ADU development with surrounding areas and, to provide for clearer directives for those wanting to pursue ADUs. An intended by-product is the encouragement of ADU development, ultimately yielding the potential for additional housing supply. • Project intended to be completed by staff with consultant assistance. 4. Housing preservation, rehabilitation and intensification incentive plan for Tustin's southwest neighborhood. • Boundary of focused area is known as Tustin's southwest neighborhood which is generally south of the 1-5 Freeway, east of the 55 Freeway, west of Newport Avenue and north of the Santa Ana/Santa Fe Channel. • This area is known for Code Enforcement challenges including dilapidated housing, absentee land owners/landlords and, could be deemed potentially underutilized relative to zoning. • Deliverable would include an incentive program to preserve, rehabilitate and intensify housing in this focused area. • Efforts would include surveying/identifying the level of housing in this area and create a program for the City's Code Enforcement to work with property owners to bring their housing units up to acceptable building/living standards, where identified, or, the opportunity, through the incentive plan, to demolish and rebuild, with possible opportunity to intensify. • Project intended to be completed by staff with consultant assistance. 5. Identification of sites suitable for housing development in conjunction with the sixth cycle for the Housing Element Update. • Identify and evaluate potential sites suitable for housing or increased housing opportunities and prepare action steps to achieving appropriate measures. • As an outcome, the effort will reflect the results of the City's housing needs analysis, identification of available resources, and mitigation of identified constraints (both governmental and nongovernmental). Specific action steps the City can take to realize policies and achieve goals and objectives will be identified and shown how/when it can be implemented. • This project is a requirement associated with our Housing Element Update's 6th cycle. • Project intended to be completed by staff with consultant assistance.