By Michelle Audenaert, AICP Associate Planner at M-Group

A great opportunity is available to California cities and counties through November 30, 2019. The Department of Housing and Community Development, “HCD,” is offering a non-competitive grant to accelerate housing production through encouraged Priority Policy Areas. Cities and counties can request up to $160,000; $310,000; or $625,000 depending on their recorded populations of less than 60,000, between 60,001 to 199,999 or over 200,000 respectively. Grant monies have been gathered through a $75 real estate transaction fee enacted by State Bill 2 in 2017.

Cities and counties may use the funds for a wide variety of activities such as updates to plans or zoning ordinances, planning and building process improvements (including new permit software), and new ordinances that allow for by-right housing permits or objective design standards. Applications that focus on Priority Policy Areas will require less paperwork and possibly have a shortened review time after submittal.

Another aspect to note is the minimal requirements for official reporting. These SB2 grant applications only require one report at close-out to trigger reimbursement of the funds, which must be spent by June 30, 2022. At the conclusion of each project activity, jurisdictions can submit funding reimbursement requests to HCD. Entities that are concerned about internal funding availability may incorporate several smaller projects into one application to allow for earlier multi-part reimbursements.

APPLICATION COMPONENTS

Cities and counties wishing to apply for SB2 grant funding must have an HCD-compliant housing element and have submitted Annual Progress Reports for 2017 and 2018. Once these pieces are in place, applications must include a list of application activities, certification that these activities fall under State or Other Planning Priorities, a project narrative and a budget. A standard resolution authorizing staff to enter into a contract with HCD must be ratified before the application deadline. “The application must demonstrate a significant positive effect on accelerating housing production through timing, cost, approval certainty, entitlement streamlining, feasibility, infrastructure capacity, or impact on housing supply and affordability.”

Priority Policy Areas:

(a) Rezone to Permit By-right housing;

(b) Objective Design and Development Standards;

(d) Accessory Dwelling Units (ADU) or Other Low-Cost Building Strategies;

(e) Expedited Processing;

(f) Housing Related Infrastructure Financing and Fee Reduction Strategies.

State Planning Priorities:

1) Promote Infill and Equity

2) Promote Resource Protection- ag lands, natural lands, recreation lands, locally unique landscapes

3) Encourage Efficient Development Patterns

Other Planning Priorities:

4) Affordability and Housing Choices

5) Conservation of Existing Affordable Housing Stock

6) Climate Change/ Climate Adaptation – flood, fire, vulnerable populations

NEXT STEPS

Given the short timeframe for application submittal, focusing on the adoption of HCD’s standard resolution at the City Council or Board of Supervisors and on determining project focus is key. The application paperwork is not overly complicated, and HCD has indicated a desire to work with cities and counties toward mutually indicated goals (through an “over-the-counter process”). Once this initial non-competitive grant round has ended, HCD has the option to open a new round of applications that would be competitive for remaining funds. Don’t miss out on this chance for funding for your city’s or county’s projects.

M-GROUP planners are well-versed in the SB2 grant process, having provided support for the following grant applications:

· City of Cotati: $160,000 funding approved

· City of Sebastopol: $160,000 in process

· County of San Benito: $160,000 in process

· City of Petaluma: $310,000 application in process

Contact M-GROUP today to get your jurisdiction’s grant application started.

408.340.5642 x111

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