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ADOPT A RESOLUTION AUTHORIZING AN APPLICATION TO THE SAN JOAQUIN COUNCIL OF GOVERNMENTS FOR REGIONAL EARLY ACTION PLANNING 2.0 GRANT PROGRAM (REAP 2.0) FUNDS IN THE AMOUNT OF $855,200.96
recommended action
RECOMMENDATION
It is recommended that the City Council:
1. Adopt a Resolution authorizing the City Manager, or designee, to apply to the San Joaquin Council of Governments (SJCOG) for Regional Early Action Planning 2.0 Grant Program (REAP 2.0) funds in the amount of $855,200.96; and
2. If awarded, authorize the City Manager, or designee, to execute a new or amended agreement with SJCOG to accept, appropriate, and take whatever actions are necessary and appropriate to carry out the purpose and intent of the resolution.
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Summary
Regional Early Action Planning (REAP 2.0) is a State of California program intended to accelerate infill housing development, reduce Vehicle Miles Traveled (VMT), increase housing supply at all affordability levels, affirmatively further fair housing, and facilitate the implementation of adopted regional and local plans to achieve these goals.
In 2023, the State published an allocation of approximately $10.6 million in one-time REAP 2.0 funds to SJCOG for regional and local housing planning activities to accelerate housing production and facilitate compliance in implementing the sixth cycle of the Regional Housing Needs Allocation (RHNA). In 2024, SJCOG released these funds to member agencies by means of a self-scoring pass-through grant application process, originally projecting a reduced allocation for the City of Stockton in the amount of $969,000 due to recent State budget cuts.
In April 2024, City Council authorized an application to SJCOG in the amount of $969,000 (Attachment A - Resolution 2024-04-16-1205). In late 2024, SJCOG staff informed the City that an additional $855,200.96 in REAP 2.0 funding was available for allocation, thereby requiring City Council action to approve a new request for the funding.
Staff recommends Council approval of an application to SJCOG for $855,200.96 from the REAP 2.0 Grant Program for eligible REAP 2.0 activities, and if awarded, authorization for the City Manager to execute a new or amended agreement with SJCOG.
DISCUSSION
Background
In 2021, the City was awarded $621,150 in funding under the 2019 Regional Early Action Program (REAP 1.0). In addition to Permit Center software upgrades, this funding was allocated to planning activities supporting the acceleration of housing production in three Neighborhood Areas: South Airport Corridor, Little Manila/Gleason Park, and Cabral/East Cabral.
Building upon REAP 1.0’s efforts to accelerate housing production, REAP 2.0 was introduced to expand the program focus by integrating housing and climate goals and allowing for broader planning and implementation investments, including infrastructure. REAP 2.0 seeks to accelerate infill housing development, reduce Vehicle Miles Traveled (VMT), increase housing supply at all affordability levels, affirmatively further fair housing, and facilitate the implementation of adopted regional and local plans to achieve these goals.
Present Situation
Initially, REAP 2.0 was funded statewide in the amount of $600 million from the State General Fund. While it was originally anticipated that Stockton’s share of the REAP 2.0 allocation was approximately $1.93 million, the allocation was reduced to $969,000, due to concern for state funding reductions. Now that the total available award for the City of Stockton has been increased to $1,824,200.96, a new application is required for the City to receive the additional $855,200.96 REAP 2.0 funding.
The application for the remaining REAP 2.0 funding needs to be submitted to SJCOG by mid-May 2025. To submit a new or revised REAP 2.0 application to SJCOG, staff recommends authorizing the City Manager, or his designee, to apply for REAP 2.0 funding to augment the Downtown Master Plan & Visioning process, depending on the cost of proposals received. An additional scope that would be incorporated into the REAP 2.0 application is to pursue a partnership opportunity for the acquisition of the surplus State-owned property located at 31 Channel Street. Acquisition for the purpose of facilitating long-term affordable housing for lower and moderate-income households is an eligible activity under REAP 2.0.
FINANCIAL SUMMARY
There is no financial impact to the City’s General Fund or any other unrestricted fund as a result of this action.
There are no local match requirements for the REAP 2.0 funding. If awarded, the City’s Special Grant Fund’s budget will be amended in the amount of $855,200.96 for reimbursable expenditures related to eligible REAP 2.0 projects. Funding will be appropriated in the Special Grant Fund, Economic Development Division.
Attachment A - Resolution 2024-04-16-1205