CC 2020-11-24_08i Jurisdictional REAP Grants ProgramMEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY McDONALD, CITY MANAGER/ACTING COMMUNITY
DEVELOPMENT DIRECTOR
BY: ANDREW PEREZ, ASSOCIATE PLANNER
SUBJECT: CONSIDERATION OF A RESOLUTION AUTHORIZING THE
COMMUNITY DEVELOPMENT DIRECTOR TO SUBMIT AN
APPLICATION FOR REGIONAL EARLY ACTION PLANNING GRANTS
PROGRAM (STAFF PROJECT 20-002) AND APPROVE A
CORRESPONDING BUDGET AMENDMENT REQUEST IN THE
AMOUNT OF $104,053 TO DEPARTMENT 4130-PLANNING FOR
CONSULTING SERVICES
DATE: NOVEMBER 24, 2020
SUMMARY OF ACTION:
Authorizing the submittal of a grant application allows the City the opportunity to apply for
Regional Early Action Planning (REAP) grant funding to streamline housing approvals
and promote housing production.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The City is eligible for $104,053 in funding under the REAP program which is proposed
to be used to hire a consultant to assist staff with the production and implementation of
objective design standards to accelerate housing production.
RECOMMENDATION:
It is recommended that the City Council: 1) Adopt a Resolution authorizing the
Community Development Director to submit an application for the Regional Early
Action Planning Grants Program; and 2) Approve a Budget Amendment Request
in the amount of $104,053 to Department 4130-Planning for consulting services.
BACKGROUND:
The California state budget for fiscal year 2019-20 allocated approximately $250 million
for planning programs that accelerate housing production. With the funding allocation, the
Department of Housing and Community Development (HCD) established the Regional
Early Action Planning (REAP) grant program with $118,750,000 available for regional
jurisdictions throughout the State. The funding to cities and counties is distributed through
councils of governments and regional entities to smaller jurisdictions to be used for the
Item 8.i. - Page 1
CITY COUNCIL
CONSIDERATION OF A RESOLUTION AUTHORIZING THE COMMUNITY
DEVELOPMENT DIRECTOR TO SUBMIT AN APPLICATION FOR REGIONAL EARLY
ACTION PLANNING GRANTS PROGRAM (STAFF PROJECT 20-002)
NOVEMBER 24, 2020
PAGE 2
implementation of plans and processes that accelerate housing production to meet the
sixth cycle Regional Housing Needs Allocation.
The program provides grants through the multi-agency working groups established by
HCD and the maximum award amounts are based on a sliding scale depending on
jurisdiction size. The Central Coast Region Multiagency Working Group consists of the
Association of Monterey Bay Area Governments, the San Luis Obispo Council of
Governments, the Council of San Benito County Governments, and the Santa Barbara
County Association of Governments. The Association of Monterey Bay Area
Governments (AMBAG) has been selected to serve as the REAP fiscal agent of the
multiagency working group. The $1,421,468 allocated to the Multi Agency Working Group
will be distributed through regional allocations for projects recommended by the San Luis
Obispo Council of Governments (SLOCOG). The City is eligible for up to $104,053 of
funding through the REAP grant program.
The REAP Application requires a signed resolution (Attachment 1) from the local
jurisdiction’s governing body authorizing the submittal of funding applications to AMBAG
and the ability to enter into an agreement with SLOCOG and AMBAG to receive funds.
ANALYSIS OF ISSUES:
In November of 2019, the Council authorized staff to submit an application for funding
established by Senate Bill 2 (SB2). The City was awarded $160,000, and entered into an
agreement on August 28, 2020, to use the funding to complete the tasks identified in the
application, which include:
6th cycle Housing Element Update
Update the Accessory Dwelling Unit (ADU) ordinance
Develop objective design standards to streamline housing production
Both the Housing Element update and ADU Ordinance update are under way and nearing
completion. Development of objective design standards has yet to begin. The SB 2 grant
application earmarked $50,000 for the development and implementation of objective
design standards. Staff anticipates the cost to develop and implement the objective
design standards through the use of consultants to augment staff time greatly exceeds
the $50,000 available for the project from SB 2 funds. REAP funds may augment the
available funding and allow for completion of the project.
The funding would be used to hire a consultant to assist the City with the development
and implementation of objective design standards. Objective design standards will
establish specific criteria for housing projects in lieu of discretionary applications. Without
discretion, the degree of uncertainty and staff review time for projects is greatly reduced,
leading to streamlined housing production in compliance with State objectives.
Additionally, adoption of objective design standards may stimulate production of housing
Item 8.i. - Page 2
CITY COUNCIL
CONSIDERATION OF A RESOLUTION AUTHORIZING THE COMMUNITY
DEVELOPMENT DIRECTOR TO SUBMIT AN APPLICATION FOR REGIONAL EARLY
ACTION PLANNING GRANTS PROGRAM (STAFF PROJECT 20-002)
NOVEMBER 24, 2020
PAGE 3
encouraged in the 6th cycle Housing Element. The project would adapt existing zoning
codes and subjective design standards into objective design standards and guidelines to
encourage residential development.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt the attached Resolution authorizing the Community Development Director
to submit an application for REAP grant funds;
2. Modify and adopt the attached Resolution authorizing the Community
Development Director to submit an application for REAP grant funds; or
3. Provide direction to staff.
ADVANTAGES:
Submittal of the grant application could result in the awarding of funds to develop and
implement objective design standards, which is partially funded by SB 2 grant funds.
Implementation of objective design standards is anticipated to streamline housing
production to meet the City’s 6th cycle RHNA.
DISADVANTAGES:
If the grant is approved, staff time will be necessary to administer the grant. However, if
no application is made, or the grant is not awarded, development of objective design
standards will require additional City resources.
ENVIRONMENTAL REVIEW:
Environmental review is not required for submittal of grant applications.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code 54954.2.
Item 8.i. - Page 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE AUTHORIZING THE COMMUNITY
DEVELOPMENT DIRECTOR TO SUBMIT AN
APPLICATION FOR REGIONAL EARLY ACTION
PLANNING GRANT PROGRAM AND APPROVE A
CORRESPONDING BUDGET AMENDMENT REQUEST IN
THE AMOUNT OF $104,053 TO DEPARTMENT 4130-
PLANNING FOR CONSULTING SERVICES
WHEREAS, Governor Gavin Newsom signed Assembly Bill 101 in September 2019,
which established the Local Government Planning Support Grants Program which
allocates $125 million in housing planning funds to regional entities throughout the State;
and
WHEREAS, the California Department of Housing and Community Development (HCD)
has been assigned as the State agency overseeing this program; and
WHEREAS, the provisions of AB 101 require the California Central Coast’s Councils of
Government to form a multiagency group comprising three representatives from each of
the region’s five counties to administer approximately $8 million in housing planning funds
dedicated to the Central Coast region; and
WHEREAS, the Central Coast Housing Working Group has been established as the
multiagency working group to administer these funds pursuant to AB 101; and
WHEREAS, the Association of Monterey Bay Area Governments (AMBAG) will serve as
the fiscal agent of the Central Coast Housing Working Group and will staff the group; and
WHEREAS, AMBAG will use three percent of the AB 101 Central Coast regional funding
to administer the mega regional grant program, staff the Central Coast Housing Working
Group, provide required reporting, and provide oversight of the grant program from 2020
to 2024; and
WHEREAS, AMBAG will allocate AB 101 housing planning funds to the four COGs in the
Central Coast area: AMBAG, the San Luis Obispo Council of Governments, the Santa
Barbara County Association of Governments, and the Council of San Benito County
Governments; and
WHEREAS, the City of Arroyo Grande (City) is eligible to submit a request for allocation
for a portion of Central California AB 101 housing planning funds from AMBAG; and
Item 8.i. - Page 4
RESOLUTION NO.
PAGE 2
WHEREAS, the amounts allocated to the San Luis Obispo Council of Governments
(SLOCOG) are based on the allocation method approved by the Central Coast Housing
Working Group; and
WHEREAS, the amounts allocated to the City will be based on the allocation method
approved by AMBAG; and
WHEREAS, AMBAG shall approve allocation requests subject to the terms and
conditions of eligibility, guidelines, Notices of Funding Availability, and program
requirements.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande
that:
1. The Community Developer of the City of Arroyo Grande (City) is hereby authorized
to request on behalf of the City (Grantee) an allocation not to exceed $104,053
from the Association of Monterey Bay Area Governments, which acts on behalf of
the Central Coast Housing Working Group, and to enter into all agreements
necessary to receive and administer the AB 101 housing planning funds.
2. The City is hereby authorized to enter into agreements, and take further actions
as may be necessary to give effect to this resolution, such as executing
amendments and approving funding applications with the Association of Monterey
Bay Area Governments and San Luis Obispo Council of Governments for REAP
grant funding.
On motion by Council Member _____________, seconded by Council Member
____________, and by the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted this 24th day of November, 2020.
Item 8.i. - Page 5
RESOLUTION NO.
PAGE 3
______________________________________
CAREN RUSSOM, MAYOR
ATTEST:
______________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
______________________________________
WHITNEY McDONALD, CITY MANAGER
APPROVED AS TO FORM:
______________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.i. - Page 6