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HIP - AG City Council Presentation Council Presentation City of Arroyo Grande 7.25.23 Introduce team Agency staff (City/County Managers, staff, elected - whoever involved) SLOCOG - Sara Sanders, PM of entire HIP, REACH - Russ Levanway, Michael Foote, Koble Collaborative - Carolyn Berg Presentation Agenda 2 Background & Highlights Stakeholder Engagement Project Overview & Key Findings Future Phases of Regional Strategy Recommended Support Photo from MFI Design Background and highlights Stakeholder engagement Project overview and key findings Future phases of regional strategy We will close with today’s recommended action(s) Today, your City Council will be asked to consider support for the HIP, essentially embracing this as a living tool to support the region moving towards Arroyo Grande Housing Highlights Housing & Infrastructure: the basic building blocks essential to supporting the workforce needed to fuel the expansion of existing companies, proliferation of start-ups and overall economic resilience of our communities. 63 affordable units coming to Oak Park Adopted an ordinance to allow Tiny Homes on Wheels Pursuing multiple water projects to meet current and future needs Streamlined permitting and reviews to provide some certainty for developers Russ We’ve gathered this from both your developer community and staff STATE Sets broad policy, determines growth projections (RHNA) and provides grant funding BUILDING Build units & infrastructure to meet community needs DEVELOP & DESIGN Develop land, design housing to standards and assemble financing structures SLOCOG Divides RHNA between county/cities, prioritizes funding COUNTY & CITIES Control land use planning and policies that direct housing production and direct funding to community benefits AGENCIES’ PLANNING & PERMITTING As a subset of Cities/County, outline standards + process, approve development Major Housing Roles Housing & Infrastructure Regional Phased Strategy Our region believes that a united framework is necessary to unlock our potential to develop an adequate supply of housing and resilient infrastructure that support our economic prosperity. Regional Collaboration Align Land Use Planning Documents Strategic Action Plan Goal 1 Goal 2 Goal 3 Key Regional Steps Inventory infrastructure barriers to and priorities for housing Identify funding to implement infrastructure needs Develop foundational information for the future 2027 RHNA Plan’s Purpose Stakeholders Engagement Builders & Developers 20-35 attendees, 3 meetings Builders, Developers, Architects, Real Estate, etc. Housing Advocacy Group 15-20 attendees, 2 meetings Nonprofit builders, Chambers, HBA, LWV Housing Action Team 15-20 attendees, monthly meetings City/County/COG Planners and Directors Regional Managers / Key Staff 30 attendees, 3 meetings City/County/COG Leaders City & County Elected Officials Phases 1, 3 & 4 Phase 4 Phases 2 & 3 Phases 2 & 3 Phases 2 & 3 Steering Committee 10 members, mix of public and private experts City Manager, Elected Officials, County Regional Planner, Developer, Architect, Engineer, Advocate, Water Resources, Cal Poly CIP HIP Presentations HIP Toolkit Collection of 440 projects across the County and Seven Cities Considered Housing Efficient if area has: Transportation Access Water Capacity Wastewater Capacity Project Prioritization considered: (1) if project is needed for new housing, (2) benefit/cost (investment cost per additional potential housing units served), (3) barriers to development Regional Infrastructure Projects & Data Housing Efficient Areas Low Priority Medium Priority High Priority Infrastructure Prioritization 80 Housing Efficient Projects 10 Key Findings Broad St/Tank Farm Rd Intersection, SLO Water/Sewer Improvements, Cal Poly Water Reclamation Facility North Coast Central County South County Snapshot of Prioritized Projects North County Central Coast Blue, South County Transit connection to Urban Reserve, Interchange Improvements at Willow Rd Morro Bay water/wastewater improvements, Cayucos Wastewater Water treatment facility (PFAs), North County Charging Facility, 101/Del Rio interchange improvements 12 Funding Priority Infrastructure Current Findings: Assessed the list of HIP projects to determine estimate of funding requirements Map of funding needs to prioritized projects List of existing grant funding opportunities Next Steps: Create funding hierarchy based on suitability for each HIP project Develop grant calendar with deliverable and submission schedule Identifying other broad based funding mechanisms Calculating funding gap for each HIP project Proposing strategies to bridge the funding gap Rental: Market is close, regulatory change could help ABD is possible with smaller units and cost-effective development For-Sale: Market not close, longer-term approach needed Increasing housing production overall can help bring supply and demand into balance, make ABD achievable over the longer term Affordable-by-Design Study Study Elements: Identified common physical characteristics for ABD housing Financial feasibility analysis of “prototypical” development examples that could work in regions Identified regulatory barriers to development of ABD housing Highlighted potential policy measures to support ABD housing 14 Next Steps: Deeper analysis of up to 6 policies and localized implications Streamline development review and permitting Align development standards to support ABD housing Allow ABD housing in cost-effective locations Adjust fee rates and policies to incentivize ABD housing Potential Policy Options Study will include a menu of possible policies for consideration: 15 Future Phases of Regional Strategy Our region believes that a united framework is necessary to unlock our potential to develop an adequate supply of housing and resilient infrastructure that support our economic prosperity. Regional Collaboration Align Land Use Planning Documents Regional Housing & Infrastructure Plan Goal 1 Goal 2 Each agency and stakeholder voluntarily takes actions Future Goal 3 Council Action Photo from MFI Design Consider support for the Regional Housing and Infrastructure Plan, as a recommitment to the 2020 Regional Compact. THANK YOU