Report Prepared by: Scott McBride, Director of Development Services, Development Services Department
Title
SUBJECT: Approval to Accept and Appropriate Grant Funds from the State of California Department of Housing and Community Development (HCD) from the SB2 Planning Grants Program in the Amount of $310,000, Approval to Accept and Appropriate Grant Funds from the State of California HCD Local Early Action Planning Grant Program (LEAP) in the Amount of $300,000, and Approval to use Pooled Cash to Cover the Appropriation until Grant Funds are Reimbursed
REPORT IN BRIEF
Considers accepting and appropriating grant funds from the State of California Department of Housing and Community Development (HCD) from the SB2 Planning Grants Program in the amount of $310,000, accepting and appropriating grant funds from the State of California HCD Local Early Action Planning Grant Program (LEAP) in the amount of $300,000, using pooled cash to cover the appropriation until grant funds are reimbursed, authorizing the Finance Officer to make necessary budget adjustments, and authorizing the City Manager or Deputy City Manager to execute all documents including any amendments.
RECOMMENDATION
City Council - Adopt a motion:
A. Accepting SB2 Grant Funds in the amount of $310,000; and,
B. Increasing revenue account 090-0804-324-02-00 in the amount of $310,000 and appropriating the same to 090-0804-512-17-00 for expenditures; and,
C. Accepting LEAP Grant Funds in the amount of $300,000; and,
D. Increasing revenue account 091-0804-324-02-00 in the amount of $300,000 and appropriating the same to 091-0804-512-17-00 for expenditures; and,
E. Authorizing the use of pooled cash to cover the appropriation until grant funds are reimbursed; and,
F. Authorizing the Finance Officer to make the necessary budget adjustments; and,
G. Authorizing the City Manager or Deputy City Manager to execute all documents, including any amendments.
Body
ALTERNATIVES
1. Approve, as recommended by staff;
2. Approve, subject to other than recommended by staff, identify specific findings;
3. Refer to staff for reconsideration of specific items as requested by Council, or,
4. Continue to a future City Council Meeting; or,
5. Deny request.
AUTHORITY
Charter of the City of Merced, Sections 200, 405, and 1105.
CITY COUNCIL PRIORITIES
Fiscal Year 2021/2022 Adopted Goals and Priorities, 4. Housing & Homelessness.
DISCUSSION
SB2 Application
The City Council of the City of Merced considered a City Council Resolution on August 5, 2019, to support the submittal of an application under the SB2 Program to the State of California HCD. The City elected to apply for the full eligible amount of $310,000. The Administrative Report considered by the Council is attached to this report.
Major activities of the Grant included off the shelf or predesigned ADU plans, update of the City’s ADU ordinance - completed, Off the Shelf Duplex and Triplex updates to the City’s Zoning Code to provide for Tiny Homes, In-Fill Overlay Study, Pre-Entitlement Work for Downtown Housing, Rental Inspection Program- completed, but direction provided to not implement, 20 Year SB2 plan.
SB2 Extension
The original award for the grant had a deadline for activities to be completed and reimbursement requests to be submitted in February 2022. Due to COVID 19, HCD has extended the deadline for one year, activities are now due to be completed in February 2023.
LEAP Application
The City Council of the City of Merced considered a City Council Resolution on January 19, 2021, to support the submittal of an application under the Local Early Action Plan Grant (LEAP) to the State of California HCD. The City elected to apply for the full eligible amount of $300,000. The Administrative Report considered by the Council is attached to this report.
Since April 2021 the City Council has received several administrative reports and provided direction to Staff on various policies related to support housing production and affordable housing. Many of these activities which will involve amendments to the City’s Zoning Code and Subdivision, or Map Code were contemplated in the LEAP Application. Some of these include the following:
Tentative Map - Final Map Process Update
Zoning Code Updates - expand duplex by right in single family districts, streamline small lot single family approvals, formalize mixed use districts, update appeal process
Create Objective Zoning Standards
Review CFD Policies
Update of Administrative Policy A32 - Impact Fee Deferral for Multi Family Projects
Other policy direction that the Council provided to support affordable by design, encouraging infill development, reducing costs, streamlining development, and increasing housing choices can be accomplished through the implementation of the grant activities.
IMPACT ON CITY RESOURCES
Accepting and appropriating the grant funds would allow the City to perform or contract the work associated with each grant. Costs must be expended first by the City then reimbursed by HCD. The City will used pooled cash until reimbursement from the grants is received. To implement the Grant revenues and expenditures the following appropriation are needed:
• SB2 - $310,000 to account 090-0804-324-02-00 in revenue and 090-0804-512-17-00 for expenditures; and,
• LEAP - $300,000 to account 091-0804-324-02-00 in revenue and 091-0804-512-17-00 for expenditures.
ATTACHMENTS
1. SB2 Award Letter
2. SB2 Standard Contract
3. SB2 Administrative Report
4. LEAP Award Letter
5. LEAP Standard Contract
6. LEAP Administrative Report