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Home My WebLink About2019-08-20; City Council; ; Authorize application for, and receipt of, SB 2 Planning Grants Program Funds from the State of CaliforniaCA Review ~ (i) S~~f f R~port Meeting Date: To: From: Staff Contact: Subject: Project Name: August 20, 2019 Mayor and City Council Scott Chadwick, City Manager Melanie Saucier, Associate Planner melanie.saucier@carlsbadca.gov or 760-602-4605 Authorize application for, and receipt of, SB 2 Planning Grants Program Funds from the State of California SB 2 Planning Grants Program Funds Recommended Action Adopt a Resolution authorizing the city to apply for SB 2 Planning Grants Program Funds from the State of California, to accept any award, and authorizing the deputy city manager of administrative services to appropriate any funds received. Executive Summary The SB 2 Planning Grants Program provides one-time funding and technical assistance to all eligible local governments in California to adopt and implement plans and process improvements that streamline housing approvals and accelerate housing production. Eligible activities include updating a variety of planning documents and processes such as general plans and zoning ordinances, conducting environmental analyses, and process improvements that expedite local planning and permitting. The City of Carlsbad is proposing to utilize this grant funding to complete the following activities: examine rezoning of available parcels; create objective design standards for multi-family housing projects; develop applicable municipal code regulations and zone code amendments; and produce forms, administrative procedures, marketing brochures and other outreach tools for projects eligible for streamlined ministerial review. Discussion Chapter 354, Statutes of 2017 (SB 2, Atkins) was part of a housing package signed by Governor Brown that was aimed at addressing the state's housing shortage and high housing costs. Specifically, it establishes a permanent source of funding intended to increase the affordable housing stock in California. The revenue from SB 2 will vary from year to year, as revenue is dependent on real estate transactions with fluctuating activity. The legislation directs the California Department of Housing and Community Development (HCD) to use 50 percent of the revenue in the first year to establish a program that provides financial and technical assistance to local governments to update planning documents and zoning ordinances in order to streamline housing production, including, but not limited to, general plans; community plans; August 20, 2019 Item #3 Page 1 of 5 specific plans; implementation of sustainable communities strategies; and local coastal programs. HCD issued a Notice of Funding Availability dated March 28, 2019, for its Planning Grants Program. 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 related to the Planning Grants Program. The City of Carlsbad is eligible for up to $310,000 to accelerate and streamline the production of housing. There are no matching funds required and this is a noncompetitive grant process. The program utilizes an over-the-counter process with an eight-month application window ending on November 30, 2019. Projects funded by the grant must be encumbered by June 30, 2020 and funds must be expended by June 30, 2022. Project Description The proposed project activities described below represent an important and timely opportunity for the City of Carlsbad to expedite the processing of projects and accelerate housing production. Staff recommends conducting these activities to support the upcoming Housing Element update and facilitate streamlining of housing projects in accordance with state law. In 2017, the Governor signed multiple housing bills, including Senate Bill (SB) 35 Streamline Approval Process and Assembly Bill (AB) 678/SB 167 Strengthen the Housing Accountability Act. In response to this new legislation and to support the Housing Element update, staff proposes to seek this grant funding to do the following: 1. examine rezoning of available parcels; 2. create objective design standards for multi-family housing projects; 3. develop applicable municipal code regulations and zone code amendments; and 4. produce forms, procedures, marketing brochures and other outreach tools for projects eligible for streamlined ministerial review Below are summaries of each activity noted above, providing more detail on use of the grant funds by the City of Carlsbad. Activity 1 In the San Diego region, cities and counties are about to begin state-required updates to their Housing Elements. On July 26, 2019, SAN DAG Board of Directors released the draft Regional Housing Needs Assessment (RHNA) for public review. The proposed allocation for Carlsbad is 3,873 new housing units, 2,094 of which would need to accommodate lower income households. To meet the RHNA, land use density increases and rezoning may be required, which would require further study to determine appropriate sites for this action. The city will engage community input, determine landowner interest, and evaluate opportunities and constraints in identifying sites suitable for producing affordable housing. This project could also entail conducting a suitability analysis of city owned properties that could be turned into affordable housing opportunities. These activities will provide the city with valuable information to help support the Housing Element update. August 20, 2019 Item #3 Page 2 of 5 Activity 2 The City of Carlsbad currently relies on its discretionary review process to maintain the community's aesthetic standards for multi-unit residential development. Going forward, certain projects may be eligible for streamlined ministerial approval due to recent changes in state law. Consequently, the city will prepare objective multi-family residential design review standards citywide and for the Village and Barrio Master Plan area in consultation with stakeholders to comply with state law while continuing the city's objective of high quality, cohesive architectural design. Streamlining the development review process by applying objective design standards can guide and help produce higher density development that more effectively integrates into areas that are intended to be more walkable, more accessible, and more sustainable. Activity 3 The objective design standards would then be integrated into the city's zoning ordinance through a zone code amendment and codified for implementation purposes. Activity 4 Under current law (SB 35), projects eligible for streamlining are required to be processed by the city as a ministerial review (i.e., similar to a building permit). The city will utilize grant funding to develop forms, marketing brochures and other outreach tools to let project applicants know whether they are eligible for faster processing and to provide clear guidance on objective standards and permitting requirements. In addition, administrative procedures will be updated to enable city staff to efficiently process eligible applications within statutory timelines. Fiscal Analysis There is no anticipated fiscal impact. There are no matching funds required and this is a noncompetitive grant process. Funds up to $310,000 may be awarded to the city to complete the work set forth in this staff report. However, if grant obligations are not fulfilled according to the HCD grant agreement, monies may have to be refunded to HCD. Next Steps The City Council's action on this item is final. Staff will submit the grant application package to the Department of Housing and Community Development for consideration before the November deadline. Environmental Evaluation (CEQA) Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to scheduled meeting date. Exhibits 1. City Council Resolution August 20, 2019 Item #3 Page 3 of 5 RESOLUTION NO. 2019-139 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY TO APPLY FOR SB 2 PLANNING GRANTS PROGRAM FUNDS FROM THE STATE OF CALIFORNIA, TO ACCEPT ANY AWARD, AND AUTHORIZING THE DEPUTY CITY MANAGER OF ADMINISTRATIVE SERVICES TO APPROPRIATE ANY FUNDS RECEIVED. EXHIBIT 1 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 Carlsbad 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 Grants Program NOFA and SB 2 Planning Grants Program Guidelines released by the Department for the PGP; 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 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 by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. The city manager is hereby authorized and directed to apply for and submit to the Department the 2019 Planning Grants Program application in the amount of $310,000 according to the Department NOFA released March 28, 2019. 3. That the City Council accepts any award of grant funds and authorizes the deputy city manager of administrative services to appropriate all received funds to Community Economic Development's operating budget. 4. In connection with the PGP grant, if the application is approved by the Department, the city manager is authorized to enter into, execute, and deliver a State of California Standard Agreement for the amount of $310,000, and any and all other documents required or deemed necessary or appropriate to evidence and secure the PGP grant, the city's August 20, 2019 Item #3 Page 4 of 5 EXHIBIT 1 obligations related thereto, and all amendments thereto (collectively, the "PGP Grant Documents"). 5. 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. The application in full is incorporated as part of 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 Council 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. 6. The city manager is authorized to execute the City of Carlsbad SB2 Planning Grants Program application, the PGP Grant Documents, and any amendments thereto, on behalf of the City of Carlsbad as required by the Department for receipt of the PGP Grant. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 20th day of August 2019, by the following vote, to wit: AYES: NOES: ABSENT: Bhat-Patel, Blackburn, Schumacher, Hamilton. None. Hall. ey , Mid1t4tt yii:::t!Mayor "han, b<A !!mm~ ~RBARA ENGLESON, City Clerk (SEAL) ,,,,1111111111,,,,,, ~,,,,, ot:. CA b,,,,,,. ~ .... ol~ rt~ ~~ ~ \ ,•··~~-I\ ~ ~~--~·-.U~~ f'u(J~t~_:~;··jt\ i \.~W~.: I ~ "'•. ~ .•· ~ ¾;:tt;·• ..... ! .... •·:::i.\.,.J '11,,,<;-IFQP.'l' ,,,,,,~ ''"111111111111111' August 20, 2019 Item #3 Page 5 of 5 SB 2 Planning Grant Melanie Saucier, Associate Planner August 20, 2019 SB 2 Planning Grant Background •Funding from California Department of Housing and Community Development (HCD) •To implement plans and process improvements that accelerate housing production 2 SB 2 Planning Grant Background •City is eligible for up to $310,000 to accelerate and streamline the production of housing •There are no matching funds required and this is a noncompetitive grant process •Grant funds must be expended by June 30, 2022 3 Proposed Grant Activities 1.Examine rezoning of available parcels 2.Create objective design standards for multi-family housing projects 3.Develop applicable Municipal Code regulations and zone code amendments 4.Produce forms, administrative procedures, marketing brochures and other outreach tools 4 Activity 1 •Further study of appropriate sites to meet new RHNA allocation •Identify current vacant and underdeveloped land and constraints •Determine specific property characteristics and landowner interest 5 Activity 2 •Prepare objective multi-family residential design standards citywide and for the VBMP area •Incorporate consultation with stakeholders •Maintain city’s objective of high quality, cohesive architectural design 6 Activity 3 •Integrate objective design standards into city’s zoning ordinance through a zone code amendment 7 Activity 4 •Develop forms, marketing brochures and other outreach tools to let project applicants know if they are eligible for faster processing •Update administrative procedures to enable city staff to efficiently process eligible applications within statutory timelines 8