CC 2021-01-26_08i Resolution_Local Early Action Planning Grants Program
MEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY McDONALD, ACTING COMMUNITY DEVELOPMENT
DIRECTOR/ CITY MANAGER
BY: ANDREW PEREZ, ASSOCIATE PLANNER
SUBJECT: CONSIDERATION OF ADOPTION OF A RESOLUTION AUTHORIZING
THE COMMUNITY DEVELOPMENT DIRECTOR TO SUBMIT AN
APPLICATION FOR LOCAL EARLY ACTION PLANNING GRANTS
PROGRAM (STAFF PROJECT 21-002)
DATE: JANUARY 26, 2021
SUMMARY OF ACTION:
Authorizing the submittal of an application for Local Early Action Planning (LEAP) grant
funds from the State allows the City the opportunity to obtain grant funding to streamline
housing approvals and promote housing production.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The City is eligible for $65,000 in funding which will be used to make amendments to the
General Plan and Development Code in order to reduce constraints on residential
development.
RECOMMENDATION:
It is recommended that the City Council adopt a Resolution authorizing the Community
Development Director to submit an application for the Local Early Action Planning Grants
Program.
BACKGROUND:
In the 2019-20 Budget Act, Governor Newsom allocated an additional $119 million to
create a second opportunity for local jurisdictions to fund planning activities through the
Local Early Action Planning (LEAP) Grant Program. The program funds can be used to
prepare and adopt planning documents and process improvements accelerating housing
production and facilitating compliance to implement the sixth cycle of the Regional
Housing Needs Allocation (RHNA). Based upon its population size, Arroyo Grande
qualifies for $65,000 in non-competitive LEAP grant funding. Completed applications are
due to the State Department of Housing and Community Development (HCD) by January
31, 2021. If HCD approves the City’s application, funding must be expended by August
15, 2023.
Item 8.i. - Page 1
CITY COUNCIL
CONSIDERATION OF ADOPTION OF A RESOLUTION AUTHORIZING THE
COMMUNITY DEVELOPMENT DIRECTOR TO SUBMIT AN APPLICATION FOR
LOCAL EARLY ACTION PLANNING GRANTS PROGRAM (STAFF PROJECT 21-002)
JANUARY 26, 2021
PAGE 2
To be eligible for funding, the activities proposed in the LEAP grant application must
demonstrate an increase in housing related planning activities. The activities must be
distinct and demonstrate a nexus to accelerating housing production. Activities may result
in a variety of planning documents and processes. The LEAP grant application requires
a signed resolution (Attachment 1) from the local jurisdiction’s governing body authorizing
the submittal of funding applications to HCD and the ability to enter into an agreement
with HCD to receive funds.
ANALYSIS OF ISSUES:
In November of 2019 and November 2020, the Council authorized staff to submit an
application for funding established by Senate Bill 2 (SB2) and Regional Early Action
Planning Grant Program, respectively. The City was awarded at total of $264,053 to
complete the tasks identified in those applications, 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. Staff is in the initial stages of the project to develop objective design
standards. Upon adoption of the 6th cycle Housing Element, Development Code and
General Plan amendments will be necessary to implement the programs identified in the
updated element. The LEAP application, as currently drafted, proposes to use the funding
to update the Development Code to implement Program A.10-2 identified in the 6th cycle
Housing Element.
Program A.10-2. To encourage higher densities and reduce constraints to
multifamily housing production, the City shall amend the Development Code to
allow densities up to 20 du/ac in the OMU District and up to 25 du/ac in the FOMU
and GMU districts for 100% multifamily housing projects with a Minor-Use Permit
(MUP) subject to design review through the Architectural Review Committee.
Mixed-use projects will continue to have a maximum allowed density of 20 du/ac
in OMU and 25 du/ac in FOMU and GMU.
Implementation of this program would increase residential density and lower the permit
requirements for residential projects in three (3) of the City’s mixed-use zoning districts.
In addition, staff is proposing to use a portion of the LEAP funds to review the City’s Land
Use Element to ensure consistency with the 6th cycle Housing Element.
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 LEAP grant funds;
Item 8.i. - Page 2
CITY COUNCIL
CONSIDERATION OF ADOPTION OF A RESOLUTION AUTHORIZING THE
COMMUNITY DEVELOPMENT DIRECTOR TO SUBMIT AN APPLICATION FOR
LOCAL EARLY ACTION PLANNING GRANTS PROGRAM (STAFF PROJECT 21-002)
JANUARY 26, 2021
PAGE 3
2. Modify and adopt the attached Resolution authorizing the Community
Development Director to submit an application for LEAP grant funds; or
3. Provide direction to staff.
ADVANTAGES:
Submittal of the grant application may result in the awarding of funds to implement
programs from the 6th cycle Housing Element 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, implementation of 6th cycle Housing
Element programs may be delayed due to funding constraints.
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.
Attachments:
1. Draft Resolution
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 AND ENTER INTO A GRANT
AGREEMENT FOR RECEIPT OF LOCAL EARLY ACTION
PLANNING GRANT PROGRAM FUNDS
WHEREAS, pursuant to Health and Safety Code 50515 et seq., the Department of
Housing and Community Development (Department) is authorized to issue a Notice of
Funding Availability (NOFA) as part of the Local Government Planning Support Grants
Program (hereinafter referred to as the “Local Early Action Planning grants program” or
“LEAP”); and
WHEREAS, the City of Arroyo Grande desires to submit a LEAP grant application
package (“Application”), on the forms provided by the Department, for approval of grant
funding for projects that assist in the preparation and adoption of planning documents
and process improvements that accelerate housing production and facilitate
implementation the sixth cycle of the City’s regional housing needs assessment; and
WHEREAS, the Department has issued a NOFA and Application on January 27, 2020 in
the amount of $119,040,000 for assistance to all California Jurisdictions to prepare and
adopt planning documents and process improvements accelerating housing production
and facilitating compliance to implement the sixth cycle of the Regional Housing Needs
Allocation (RHNA); and
WHEREAS, based upon its population size, Arroyo Grande qualifies for $65,000 in non-
competitive LEAP grant funding.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande
as follows:
SECTION 1. The Community Development Director is hereby authorized and directed to
apply for and submit to the Department the Application package; and
SECTION 2. In connection with the LEAP grant, if the Application is approved by the
Department, the Community Development Director of the City of Arroyo Grande is
authorized to submit the Application, enter into, execute, and deliver on behalf of the
Applicant, a State of California Agreement (Standard Agreement) for the amount of
$65,000, and any and all other documents required or deemed necessary or appropriate
to evidence and secure the LEAP grant, the Applicant’s obligations related thereto, and
all amendments thereto; and
ATTACHMENT 1
Item 8.i. - Page 4
RESOLUTION NO.
PAGE 2
SECTION 3. The Applicant shall be subject to the terms and conditions as specified in
the NOFA, and the Standard Agreement provided by the Department after approval. The
Application and any and all accompanying documents are incorporated in full as part of
the Standard Agreement. Any and all activities funded, information provided, and
timelines represented in the Application will be enforceable through the fully executed
Standard Agreement. Pursuant to the NOFA and in conjunction with the terms of the
Standard Agreement, the Applicant hereby agrees to use the funds for eligible uses and
allowable expenditures in the manner presented and specifically identified in the
approved Application.
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 26th day of January 2021.
Item 8.i. - Page 5
RESOLUTION NO.
PAGE 3
______________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
______________________________________
ANNAMARIE PORTER, INTERIM CITY CLERK
APPROVED AS TO CONTENT:
______________________________________
WHITNEY McDONALD, CITY MANAGER
APPROVED AS TO FORM:
______________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.i. - Page 6