title
APPLY FOR AND RECEIVE LOCAL EARLY ACTION PLANNING GRANTS PROGRAM FUNDS
recommended action
RECOMMENDATION
Adopt a Resolution authorizing the City Manager or designee to submit an application for funding to the California Department of Housing and Community Development for the Local Early Action Planning Grants Program in the amount of $750,000. The City Manager or designee will then accept and distribute LEAP grant funding for priority projects that address housing.
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Summary
Staff recommends applying for the California Department of Housing and Community Development’s Local Early Action Planning (LEAP) Grants Program, and if awarded, accepting receipt of such funds. LEAP provides a non-competitive one-time grant funding to cities and counties to update their planning documents and implement process improvements that will facilitate the acceleration of housing production and help local governments prepare for their 6th cycle Regional Housing Needs Allocation (RHNA) allocation. LEAP is a part of the funding package of the Building Homes and Jobs Act and is similar to the Senate Bill 2 (SB2) Grants Program. While the SB2 program is focused on efforts to streamline the development of housing, LEAP funding is intended to facilitate numerous components of housing production and must be applied toward actions completed by the City before 2023.
LEAP funds are proposed for use as part of an ongoing planning effort to implement housing goals and policies in furtherance of increasing housing capacity and production in the City of Stockton. Priority planning projects include: 1) zoning amendment efforts, 2) preparation of the 6th Cycle Housing Element, 3) performing analysis of mobility and Vehicle Miles Traveled (VMT), 4) preparation of an Affordable Housing Strategic Plan, 5) conducting Displacement and Housing Fund studies, and 6) performing an analysis of infrastructure deficiencies that are potential impediments to housing. As shown in Attachment A, the proposed projects match nine of the nineteen fundable activities listed in the LEAP application which should be favorable for the State’s consideration.
The City is eligible for up to $750,000 in non-competitive grant funds for planning actions that lead to increased housing production or capacity. Overall, these planning projects demonstrate a nexus with increased housing production by facilitating increased infrastructure capacity, increased entitlements, streamlining, and improved consistency. The Notice of Funding Availability was released on January 27, 2020 and grant applications (Attachment A) may be submitted by July 1, 2020. Staff recommends using these grant funds to hire consultant team(s) as support to City Staff in implementing the aforementioned proposed planning projects.
DISCUSSION
Background
California Department of Housing and Community Development (HCD) is currently accepting applications for the LEAP Grants Program. The LEAP Grants Program set aside approximately $119 million dollars to provide funding to local jurisdictions for the preparation and adoption of planning documents, process improvements that accelerate housing production, and facilitate compliance in implementing the 6th cycle of the Regional Housing Needs Assessment (RHNA). HCD has determined maximum award amounts for large, medium, and small localities. Based on population size, the City of Stockton qualifies for a $750,000 grant award. It should be noted that this is a non-competitive, over the counter, grant opportunity that does not require a local match to receive the funds. The final grant application filing due date is July 1, 2020.
Recognizing that “the availability of housing is of vital statewide importance and that decent housing and a suitable living environment is a priority of the highest order,” the state legislature adopted the Housing Element law to ensure that local governments recognize their responsibilities in attaining these housing goals. The legislature placed responsibility on local governments to facilitate the improvement and development of housing for all economic segments of the community. Each local government is required to work cooperatively with other local governments and the state in addressing regional housing needs. The Housing Element law allows a local government to maintain its flexibility in adopting planning and zoning policies and ordinances. However, those policies and ordinances must be compatible with state housing goals and regional housing needs.
In 2013, the San Joaquin Council of Governments (SJCOG) adopted the Regional Housing Needs Allocation (RHNA) for the 5th Cycle Housing Element Projection Period (2015-2023) mandating the City of Stockton provide sufficient zoned land for 11,824 residential units, consisting of 4,560 above moderate, 2,103 moderate, 2,004 low, 1,482 very low income, and 1,675 extremely low units. RHNA allocations are intended to be used by jurisdictions when updating their housing elements as the basis for assuring that adequate sites with appropriate zoning are available to accommodate, at a minimum, the number of units allocated. SJCOG is in the process of developing the 6th cycle RHNA allocation plan which will cover the planning period December 2023 through December 2031. However, because California is the midst of a housing crisis, RHNA numbers will likely increase substantially for every city. Therefore, if the City has not yet approved adequate housing for the 5th Cycle, that shortfall will roll forward and be added to the 6th Cycle RHNA allocation. Staff anticipates adoption of the updated Housing Element to occur by 2022.
The Housing Element is one part of the City’s General Plan and developments cannot legally be approved unless they are consistent with the plan. The proposed projects will not only begin implementation of the Envision Stockton 2040 General Plan, they will further streamline housing production in Stockton and create consistency between overarching planning efforts in line with the LEAP Grant Program. These projects have been identified as LEAP projects to demonstrate to the State that the City is continuing to undertake housing streamlining efforts as well as show capacity to utilize/spend all grant funds. All grant funds must be expended by December 2023, however, HCD suggests submitting all invoices before June 30, 2023 due to State General Fund cycles.
There is an insufficient supply of affordable housing in the City of Stockton and rents have risen at dramatic rates, making it increasingly difficult for residents to find housing. The completion of the planning projects will assist in reducing barriers to housing development, encourage infill, promote capacity for a mix of housing types, implement goals and policies consistent with the General Plan, and create supporting documentation to apply for future funding opportunities.
Present Situation
The City is committed to increasing the availability of housing for all income levels. The goal of implementing the planning projects is to: 1) improve the City’s progress in meeting its current and future Regional Housing Needs Allocation (RHNA) in all four income levels (1. Very Low, 2. Low, 3. Moderate and 4. Above Moderate), and 2) implement the Goals, Policies and Actions of the 2040 General Plan. To date, the City has met 12.5% of its lower income (Very Low and Low) and 20% of its Moderate and Above Moderate 2015-2023 RHNA.
Staff is recommending using the LEAP grant funds for the following proposed planning projects: 1) zoning map and code amendment efforts, 2) preparation of the 6th Cycle Housing Element, 3) an analysis and preparation of mobility and Vehicle Miles Traveled (VMT) guidelines, 4) Affordable Housing Strategic Plan, 5) Displacement and Housing Fund studies, and 6) analysis of infrastructure deficiencies that are potential impediments to housing.
The proposed planning projects strategically address State housing goals and objectives (i.e. Pro-housing Policies), General Plan consistency, and a thoughtful development approach that will reduce barriers to housing development, demonstrate a nexus with increased housing production by facilitating increased infrastructure capacity, increased entitlements, and streamlining of processes.
In addition to meeting LEAP objectives, the planning projects will address several General Plan and Housing Element goals, policies, and actions. The 2040 General Plan and 2015-2023 Housing Element contain goals and policies consistent with LEAP goals; please refer to Attachment B for said goals/policies as well as which Priority Planning Project applies.
Increasing housing production and affordability will assist in creating a sustainable Stockton and provide a platform for sustainable economic growth. Increasing growth in infill areas of the City, particularly downtown, near public transportation hubs which will reduce dependence on the use of private automobiles, reduce vehicle miles traveled (VMT) per household, reduce the use of fossil fuels, improve energy efficiency, reduce carbon dioxide emissions, and help meet air quality standards. Utilization of LEAP funds will assist the City in meeting these goals as well as the goals, policies, and actions listed in Attachment B.
As discussed, as part of a larger ongoing planning effort, the City is continuing to carry out several planning projects to increase housing production and capacity. LEAP-funded projects will further projects already in process under the SB 2 Planning Grant, including the comprehensive Development Code update, Public Facility Fee (PFF) update, and City-wide Rezone, which will integrate strategies to promote housing development as well as remove barriers to infill and alternative housing types; all consistent with the 2040 General Plan.
Environmental
The recommendation in this report is not a project under the California Environmental Quality Act (CEQA) because it does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Sections 15378(b)(2) and 15378(b)(4) and is, therefore, not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).
FINANCIAL SUMMARY
Positive, the City is eligible to receive up to $750,000. The LEAP Grants Program does not require a local fund match. To receive this noncompetitive grant, the City needs to submit an application which requires City Council authorization. Once approved, the Special Purpose Grants Fund (020) would be used to receive funding and disperse expenses associated with the Planning projects described above. There is no impact to the General Fund, or any other restricted fund, from this action.
Attachment A - LEAP Grant Application Form
Attachment B - General Plan and Housing Element Goals, Policies, and Actions