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HomeMy WebLinkAboutItem 4.2 - 2870 SB 2 Planning Grant Page 1 of 4 STAFF REPORT CITY COUNCIL DATE: October 15, 2019 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Senate Bill 2 (SB 2) Planning Grant Prepared by: Michael P. Cass, Principal Planner EXECUTIVE SUMMARY: The City Council will consider adoption of a resolution allowing for the submittal of an application for SB 2 grant funds. The Housing Package included the Building Homes and Jobs Act (SB 2), which establishes a permanent source of funding int ended to increase affordable housing stock in California. SB 2 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 assi stance to local governments to update planning documents and zoning ordinances to streamline housing production. As a medium-sized locality, the City of Dublin is entitled to a maximum award of $310,000. STAFF RECOMMENDATION: Adopt a Resolution Authorizing Application for, and Receipt of, Funding under the SB 2 Planning Grants Program. FINANCIAL IMPACT: There would be a minimal fiscal impact to the City associated with the SB 2 Planning Grants Program for Staff time preparing the application. The SB 2 Planning Grants Program does not require a local financial commitment or matching from jurisdictions requesting grant funding. The City is eligible for a maximum of $310,000 which will be put towards the reimbursement of a consultant(s) and/or Staff time. DESCRIPTION: The primary goal of the SB 2 Planning Grants Program is to make funding available to all local governments in California for the preparation, adoption and implementation of plans that streamline housing approvals and accelerate housing p roduction. The program is meant to facilitate planning activities that will foster an adequate supply of homes affordable to Californians at all income levels and has been designed to help Page 2 of 4 local governments meet the challenges of preparing and adopting lan d use plans and implementing strategies to promote housing development. In response to this opportunity, Staff has been working to identify potential planning projects that demonstrate a nexus to accelerating housing production. Applications that propose projects in one of the State’s pre-determined priority policy areas are automatically deemed to accelerate housing production. Staff intends to apply for grant funding for the following three projects, which are further described below: 1. Creation of Objective Design Standards for multi-family developments; 2. Streamline Accessory Dwelling Units; and 3. Prepare site analysis of vacant and underutilized sites in advance of the next Regional Housing Needs Allocation (RHNA) cycle. Creation of Objective Design Standards for Multi-Family Residential Developments As part of the Housing Package, SB 35 requires that local jurisdictions provide a streamlined ministerial approval process for multi-family residential developments that meet specific eligibility requirements. Eligible developments must include a specified level of affordability, be on an infill site, comply with existing residential and mixed -use general plan or zoning provisions, and comply with other requirements such as locational and demolition restrictions. In addition, the Housing Accountability Act (Government Code Section 65589.5(j)) prohibits the City from disapproving a housing project that “complies with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards” unless it finds that the project would have “specific, adverse impact upon the public health or safety” that cannot be mitigated. The City of Dublin has objective development standards for which to evaluate projects such as height limits, setbacks, lot coverage, etc. However, the way in which the City regulates the design of buildings happens in various ways depending on the building’s location within Dublin. There are specific plans and planned development zoning regulations that provide design guidelines that speak to the look and feel of a building. However, design guidelines can be subjective and, therefore, the City will need to evaluate its existing design guidelines and prepare objective design standards for which to evaluate projects. Streamline Accessory Dwelling Units In addition to the Housing Package, there are have been numerous bills in recent years which focus on promoting the development of accessory dwelling units (ADUs). ADUs have the potential to increase housing affordability (both for homeowners and tenants), create a wider range of housing options within the community, enable seniors to stay near family as they age, and facilitate better use of the existing housing fabric in established neighborhoods. Page 3 of 4 On July 16, 2019, the City Council provided direction to Staff to further evaluate a variety of policy matters associated with ADUs. Table 1 provides an overview of various policy matters City Council directed Staff to pursue, which through a variety of methods, encourage and streamline the development of ADUs. Table 1. Potential ADU Streamlining Projects PROJECT STATUS OF CITY POLICY NEW ELIMINATION MODIFICATION ADU Prototype Plans X Deed Restriction (affordability level) X Junior ADUs X Impact Fee Reduction X Required Setbacks X Lot Coverage X Owner Occupancy Requirements X Parking Standards X Front Entry X Prepare Site Analysis of Vacant and Underutilized Sites in Advance of Next RHNA Cycle State law requires local jurisdictions to plan for the housing needs of the community. This State-mandate requires cities and counties to have a certified Housing Element as part of their General Plan that addresses the Regional Housing Need Allocation (RHNA). As part of RHNA, HCD determines the total number of new homes that need to be built – and how affordable those homes need to be – in order to meet the housing needs of people at all income levels. The Association of Bay Area Governments (ABAG) then distributes a share of the housing need to each city and county in the region. Each jurisdiction must then update their Housing Element to show the locations where housing can be built and the policies and strategies necessary to meet the community’s housing needs. Recent legislation has increased scrutiny of Housing Element sites and introduced limits on whether sites can be carried over from one RHNA cycle to the next to meet lower - income need. With only seven percent of sites from the previous RHNA cycle available for reuse in the upcoming RHNA cycle, local jurisdictions will need to identify new sites and/or re-zone previously used sites for by-right development at default densities to meet the needs identified in the upcoming RHNA. Jurisdictions are encouraged to use SB 2 funds to identify sites to facilitate meeting future Housing Element requirements. While the next RHNA cycle is a couple years away, Staff anticipates that the City’s RHNA will be much higher than the last cycle and recommends utilizing the remaining available funding to p repare an analysis of vacant and underutilized sites for next Housing Element. Page 4 of 4 ENVIRONMENTAL REVIEW: The Resolution authorizing City staff to submit an SB 2 Planning Grants Program application is exempt from the requirements of the California Environmen tal Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 as the application does meet CEQA’s definition of a “project” and would not result in either a direct physical change, or a reasonably foreseeable indirect physical change in the environment. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution Authorizing Application for, and Receipt of, Funding under the SB 2 Planning Grants Program RESOLUTION NO. xx-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN RESOLUTION AUTHORIZING APPLICATION FOR, AND RECEIPT OF, FUNDING UNDER THE SB 2 PLANNING GRANTS PROGRAM 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 Senate Bill 2 (SB 2) Planning Grants Program (PGP); and WHEREAS, the City Council of the City of Dublin desires to submit a n application for the PGP to accelerate the production of housing as described in the NOFA and SB 2 PGP Guidelines released by the Department; and WHEREAS, the Department is authorized to provide up to $123 million under the SB 2 PGP from the Building Homes and Jobs T rust Fund for assistance to jurisdictions (as described in Health and Safety Code section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)) related to the PGP. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DUBLIN HEREBY RESOLVES AS FOLLOWS: A. The City Council authorizes and directs staff to apply for and submit to the Department a 2019 PGP application in the amount of $310,000. B. 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 Agreement (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 obligations related thereto, and all amendments thereto (collectively, the “PGP Grant Documents”). C. The City shall be subject to the terms and conditions as specified in the Standard Agreement, the SB 2 PGP 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 NOFA, the PGP Guidelines, and 2019 PGP Application. D. The City Manager is authorized to execute the City of Dublin PGP application, the PGP Grant Documents, and any amendments thereto, on behalf of the City as required by the Department for receipt of the PGP Grant. PASSED, APPROVED, AND ADOPTED this 15th day of October, 2019 by the following vote: AYES: 2 NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: ______________________________ City Clerk