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CC SR 20201215 G - LEAP Grant CITY COUNCIL MEETING DATE: 12/15/2020 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA DESCRIPTION: Consideration and possible action to apply for Local Early Action Planning (LEAP) grant funds to facilitate and streamline the development process for housing production in certain commercial zoning districts through the establishment of a mixed-use overlay control district. RECOMMENDED COUNCIL ACTION: 1) Adopt Resolution No. 2020-__, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AUTHORIZING THE CITY MANAGER TO FILE APPLICATION FOR, AND RECEIPT OF, LOCAL EARLY ACTION PLANNING (LEAP) GRANT PROGRAM FUNDS. 2) Authorize Blais & Associates to prepare the grant application, on behalf of the City, for the development, including environmental assessment, of a potential mixed-use overlay control district to facilitate and streamline the development process for housing production in certain commercial zoning districts, at a cost not to exceed $6,930. FISCAL IMPACT: The recommended action will result in grant writing services on behalf of Blais & Associates, Inc at $6,930. Amount Budgeted: $50,000 Additional Appropriation: N/A Account Number(s): 101-400-2999-5101 (General Fund - Non-Department/Professional Services) ORIGINATED BY: Jaehee Yoon, Senior Planner REVIEWED BY: Ken Rukavina, P.E., Director of Community Development APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Resolution No. 2020-__ (page A-1) B. Resolution No. 2019-56 (page B-1) C. Blais & Associates, Inc. Proposal (page C-1) D. LEAP Grant Program Information (page D-1) To view the November 6, 2019, City Council meeting staff report, click on the following link: https://rpv.granicus.com/MetaViewer.php?view_id=5&clip_id=3527&meta _id=76649 1 BACKGROUND AND DISCUSSION: In 2017, then-Governor Brown signed into law a package of 15 housing-related bills. Included among these was Senate Bill No. 2 (SB 2), known as the “Building Homes and Jobs Act,” to increase the supply of affordable housing in California. On November 6, 2019, the City Council adopted Resolution No. 2019-56 (Attachment B), authorizing the City to apply for a SB 2 Planning Grant to facilitate and streamline the development process for mixed-use projects in certain commercial zoning districts. On April 10, 2020, the City was awarded $160,000 in funding through this non-competitive grant program, which is administered by the California Department of Housing and Community Development (HCD). Staff plans to utilize the funds from the SB 2 Planning Grant to retain the services of a planning consultant in creating a mixed-use overlay control district along Western Avenue and prepare a program-level California Environmental Quality Act (CEQA) document. The Local Early Action Planning (LEAP) Grant Program is a secondary one-time grant funding to cities and counties in California to update their planning documents and implement process improvements that will facilitate the acceleration of housing production and help prepare for their 6th cycle Regional Housing Needs Assessment (RHNA), similar to the SB 2 Planning Grant. The main difference between the LEAP Grant Program and the SB 2 Planning Grant is the amount of funding available for the City (i.e., up to $160,000 with SB 2 and $150,000 with LEAP), the eligibility threshold (i.e., compliance with an adopted housing element and submittal of an annual progress report on implementing the housing element are not required with LEAP), and annual report requirements (i.e., LEAP requires annual reports while SB 2 requires a one-time report at project/program close-out). Eligible activities covered by the LEAP Grant Program must be related to facilitate the streamlining and acceleration of housing production . Considering previous costs of program-level CEQA analyses conducted in the City, Staff anticipates that supplemental funds will be necessary to develop a mixed-use overlay control district and associated CEQA analysis aside from that allocated by the SB 2 Planning Grant. As such, the City’s LEAP Grant Program application will largely propose to utilize the funds in the same manner as the SB 2 Planning Grant application with a focus on the environmental review associated with developing a mixed-use overlay control district, which will help streamline CEQA review for future projects and accelerate housing production. As the SB 2 Grant Program required the submittal of a fully executed resolution by the City Council included with the application package, a draft resolution (Attachment A) is presented tonight based on the template provided by HCD. The deadline for submitting the grant application and draft resolution to HCD is January 31, 2021. Funds must be expended by December 31, 2023. 2 Authorize Blais & Associates to Prepare the Grant Application Staff recommends the City Council authorize Blais & Associates to prepare the application and supporting documents to apply for this grant. The grant application requires the submission of the following items: • Proposed project description (high level tasks and sub-tasks), timeline, and budget • Demonstration of nexus to how the proposed activity will accelerate housing production • Resolution by City Council authorizing submittal of the application • Certification of state and other planning priorities • Government agency taxpayer ID form Due to the complex nature of the grant, Staff believes that Blais & Associates’ successful grant-writing skills will enhance the City’s chances of obtaining these grant funds in a timely manner. The proposed preparation cost is $6,930. This proposal, including the scope of work, is included in this report as Attachment B. The City’s contract with Blais & Associates includes a sub-budget of $39,165 for grant-writing services. ADDITIONAL INFORMATION: Both the SB 2 and LEAP grants support the City Council housing goals by providing funding to study and plan for housing opportunities in compliance with RHNA and other state legislation and initiatives. ALTERNATIVES: In addition to the Staff recommendations, the following alternative action is available for the City Council’s consideration: 1. Do not adopt the resolution; and do not authorize Blais & Associates to prepare the grant application on behalf of the City. 3 RESOLUTION NO. 2020- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AUTHORIZING THE CITY MANAGER TO FILE APPLICATION FOR, AND RECEIPT OF, LOCAL EARLY ACTION PLANNING (LEAP) 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 by the Department as the Local Early Action Planning Grants program or (LEAP)); and WHEREAS, the City Council of the City of Rancho Palos Verdes 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 compliance to implement the sixth cycle of the Regional Housing Need Assessment (RHNA); 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; NOW, THEREFORE, the City Council of the City of Rancho Palos Verdes (“Applicant”) resolves as follows: Section 1. The City Manager is hereby authorized and directed to apply for and submit to the Department the Application package; Section 2. In connection with the LEAP grant, if the Application is approved by the Department, the City Manager of the City of Rancho Palos Verdes 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 $150,000, 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 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. A-1 PASSED, APPROVED and ADOPTED this 15th day of December 2020. ___________________ Eric Alegria, Mayor Attest: ____________________ Emily Colborn, City Clerk State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I, Emily Colborn, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2020-_ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on December 15, 2020 ____________________ Emily Colborn, City Clerk A-2 RESOLUTION NO. 2019-56 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AUTHORIZING APPLICATION FOR, AND RECEIPT OF, SB 2 PLANNING GRANTS PROGRAM FUNDS 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 Planning Grants Program (PGP); and, WHEREAS, the City Council of the City of Rancho Palos Verdes desires to submit a project application for the PGP program to accelerate the production of housing and will submit a 2019 PGP grant application as described in the Planning Grants Program NOFA and SB 2 Planning Grants Program Guidelines released by the Department for the PGP Program; and, WHEREAS, the Department is authorized to provide up to $123 million under the SB 2 Planning Grants Program from the Building Homes and Jobs Trust Fund for assistance to Counties (as described in Health and Safety Code section 50470 et seq. Chapter 364, Statutes of 2017 (SB 2)) related to the PGP Program. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES RESOLVES AS FOLLOWS: Section 1: The Rancho Palos Verdes City Council is hereby authorized and directed to apply for and submit to the Department the 2019 Planning Grants Program PGP) application in the amount of $160,000. Section 2: 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$160,000, 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"). Section 3: The City shall be subject to the terms and conditions as specified in the Standard Agreement, the SB 2 Planning Grants Program 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 Rancho Palos Verdes 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 Planning Grants B-1 NOFA, the Planning Grants Program Guidelines, and 2019 Planning Grants Program Application. Section 4: The City Manager is authorized to execute the City of Rancho Palos Verdes Planning Grants Program 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 6th day of November 2019. 111 Mayor ATTEST: 411i, rk STATE OF CALIFORNIA COUNTY OF LOS ANGELES ss CITY OF RANCHO PALOS VERDES ) 111 I, EMILY COLBORN, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2019-56 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held o=-_er 6, 2019. 111" erk Resolution No. 2019-56 Page 2 of 2B-2 Quote Prepared by: Andrea Owen 949-525-5674 aowen@blaisassoc.com 7545 Irvine Center Drive Irvine Business Center, Suite 200 Irvine, CA 92618 www.blaisassoc.com Client Name Client Contact Copy Grant Program / Proposal Proposal Due Project Name (if known) Date Prepared Grant/Revenue Potential Grant Development Cost Cost to Develop Grant as % of Revenue Potential Hourly Rate Hours Cost 5 525.00$ 20 2,100.00$ 10 1,050.00$ 5 525.00$ 5 525.00$ 1 105.00$ 20 2,100.00$ 66 6,930.00$ -$ -$ -$ -$ -$ -$ -$ -$ -6,930.00$ Signature of Person Approving Costs and Authorizing Notice to Proceed Date Printed Name of Authorized Person Express Delivery Mail or Courier Services, only if needed Internal quality control reviews; strategy calls with client; provide 80% draft and 100% final documents for client to review and provide feedback; collate final application and submit via e-mail. 1) $119 million available statewide. 2) Funds must be expended by December 31, 2023. SUBTOTAL Classification Materials (USB drive--not needed) Direct Costs (charged at cost, no mark-up) SUBTOTAL Reproduction (not applicable). Please note that this quote is an estimate for services based on current conditions and understandings. Many factors often change during the development of a grant application that may or may not increase the amount of labor and materials necessary to perform the services successfully. If during the course of work, B&A believes the work is taking longer than originally estimated, B&A will immediately notify the contract point of contact and either mutually agree to a change order or discuss alternatives. Additionally, B&A only charges for actual work performed. The total cost to perform the tasks may be less than quoted herein. TOTAL Please see "notes and assumptions" section for more detail. Notes and Assumptions Work performed by B&A that is outside of the scope of this estimate will be billed at $105 per hour. Develop draft resolution and circulate to client for execution. Develop Application Form. Includes: 1) Applicant information; 2) Applicant certification (signature); 3) Threshold requirements; 4) Proposed activities checklist (19 to choose from); 5) Project description and scope of work; 6) Legislative information. Signature Required. Develop Attachment 1: Project Timeline and Budget Develop Attachment 2: Nexus to Accelerating Housing Projection. Develop Attachment 3: State and Other Planning Priorities Certification. Signature Required. Grant Development Quote Preparatory work including reviewing guidelines and application materials; developing Timeline & Checklist; hosting a kick-off conference call with Client; attending to follow-up action items from kick-off call; preparing internal e-file system City of Rancho Palos Verdes Meghan Barnes, Senior Administrative Analyst HCD: Local Early Action Planning (LEAP) OTC Grant Program Western Avenue Mixed-Use Overlay Zone and Environmental November 20, 2020 $150,000 $6,930.00 4.62% $105 Activity January 31, 2021 RPV: HCD LEAP Program 11/20/2020 1 of 1C-1 STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY Gavin Newsom, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF FINANCIAL ASSISTANCE 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2771 / FAX (916) 263-2763 www.hcd.ca.gov January 27, 2020 MEMORANDUM FOR: All Potential Applicants FROM: Zachary Olmstead, Deputy Director Division of Housing Policy Development SUBJECT: NOTICE OF FUNDING AVAILABILITY - LOCAL EARLY ACTION PLANNING GRANTS PROGRAM The California Department of Housing and Community Development (Department) is pleased to announce the release of this Notice of Funding Availability (NOFA) for approximately $119,040,000 as part of the Local Early Action Planning Grants Program (LEAP or Program). LEAP is made available as a portion of the Local Government Planning Support Grants Program pursuant to Chapter 3.1 of Health and Safety Code (Sections 50515 to 50515.05) (Chapter 159, Statutes of 2019). LEAP provides funding to jurisdictions for the preparation and adoption of planning documents, process improvements that accelerate housing production, and facilitate compliance in implementing the sixth cycle of the regional housing need assessment (RHNA). In order to be eligible for grant funding, an applicant must submit a completed, signed original application and an electronic copy on CD or USB flash drive. Applications will be accepted on an Over-the-Counter (OTC) basis as of the date of this NOFA through July 1, 2020. The Department encourages early applications and will accept applications post-marked by the July 1, 2020 deadline. Applicants may utilize various carrier services, such as the U.S. Postal Service, UPS, FedEx, or other carrier services. All applications must be submitted to the Department at the following address: California Department of Housing and Community Development Division of Housing Policy Development 2020 West El Camino Ave, Suite 500 Sacramento, CA 95833 Program applications, forms and instructions are available on the Department’s website at https://www.hcd.ca.gov/grants-funding/active-funding/leap.shtml. If you have questions regarding this NOFA, please email the Department at EarlyActionPlanning@hcd.ca.gov. Attachment D-1 LOCAL EARLY ACTION PLANNING GRANTS PROGRAM (LEAP) 2020 NOTICE OF FUNDING AVAILABILITY State of California Governor Gavin Newsom Alexis Podesta, Secretary Business, Consumer Services and Housing Agency Douglas R. McCauley, Acting Director California Department of Housing and Community Development Zachary Olmstead, Deputy Director California Department of Housing and Community Development Division of Housing Policy Development 2020 West El Camino Avenue, Suite 500 Sacramento, CA 95833 Telephone: (916) 263-2911 Website: https://www.hcd.ca.gov/grants-funding/active-funding/leap.shtml Email: EarlyActionPlanning@hcd.ca.gov January 27, 2020 D-2 Table of Contents I. Introduction............................................................................................................. 1 II. Authority and Scope ............................................................................................... 1 III. Program Summary ................................................................................................. 2 IV. Program Timeline ................................................................................................... 2 V. Award Amounts ...................................................................................................... 3 VI. Eligible Applicants .................................................................................................. 3 VII. Eligible Activities ..................................................................................................... 4 VIII. Ineligible Activities .................................................................................................. 6 IX. Eligible Uses ........................................................................................................... 7 X. Ineligible Uses ........................................................................................................ 7 XI. Application Requirements....................................................................................... 7 XII. Application Submission Requirements ................................................................... 8 XIII. Application Review ................................................................................................. 8 XIV. Award Letter and Standard Agreement .................................................................. 9 XV. Appeals .................................................................................................................. 9 XVI. Administration ....................................................................................................... 10 XVII. Right to Modify or Suspend the NOFA, and Final Decision-making ..................... 13 XVIII. Definitions............................................................................................................. 14 D-3 CA HCD Notice of Funding Availability 1 Local Early Action Planning Grants 2020 2019 NOTICE OF FUNDING AVAILABILITY LOCAL EARLY ACTION PLANNING GRANTS PROGRAM I. Introduction The California Department of Housing and Community Development (Department) is pleased to announce the release of this Notice of Funding Availability (NOFA) for approximately $119,040,000 as part of the Local Early Action Planning Grants Program (LEAP or Program). LEAP is made available as a portion of the Local Government Planning Support Grants Program pursuant to Chapter 3.1 of Health and Safety Code (Sections 50515.03 (Chapter 159, Statutes of 2019). The Program provides funding to jurisdictions for the preparation and adoption of planning documents, process improvements that accelerate housing production, and facilitate compliance in implementing the sixth cycle of the RHNA. II. Authority and Scope This NOFA is authorized pursuant to Chapter 3.1 of Health and Safety Code (Sections 50515 to 50515.05). The NOFA implements, interprets, and makes specific provisions for purposes of implementing planning grants to jurisdictions pursuant to 50515.03 (hereinafter “LEAP”). This NOFA establishes terms, conditions, forms, procedures and other mechanisms as the Department deems necessary to exercise the powers and perform the duties conferred by Chapter 3.1. The matters set forth herein are regulatory mandates, and are adopted in accordance with the authorities set forth below: Quasi-legislative regulations … have the dignity of statutes … [and]… delegation of legislative authority includes the power to elaborate the meaning of key statutory terms… Ramirez v. Yosemite Water Co., 20 Cal. 4th 785, 800 (1999) Further, the Department may implement the Program through the issuance of forms, guidelines, and one or more NOFAs, as the Department deems necessary, to exercise the powers and perform the duties conferred on it by this chapter. Any forms, guidelines, and notices of funding availability adopted pursuant to this section are hereby exempted from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (Health and Safety Code Section 50515.04(f)). The Department reserves the right, at its sole discretion, to suspend or amend the provisions of this NOFA, including, but not limited to, grant award amounts. D-4 CA HCD Notice of Funding Availability 2 Local Early Action Planning Grants 2020 III. Program Summary The Local Early Action Planning Grants Program (LEAP or Program) is part of the broader Program formerly known as the Local Government Planning Support Grants Program, which was established as part of the 2019-20 Budget Act. The 2019-20 Budget Act provides a spectrum of support, incentives, resources and accountability to meet California’s housing goals. Some specific elements include: • Planning Support (local and regional planning grants) • Incentives (Prohousing preference and infill incentive grants) • Funding Resources • Accountability (penalties for noncompliant housing plans) • Reform (collaborative processes to reform regional housing needs) The Local Government Planning Support Grants Program provides one-time grant funding to regions and jurisdictions for technical assistance, preparation and adoption of planning documents, and process improvements. The over-arching goals of the Program are to (1) accelerate housing production; and (2) facilitate compliance to implement the sixth cycle of the regional housing need assessment (RHNA). IV. Program Timeline Grants will be available to eligible applicants on a noncompetitive, Over-the- Counter (OTC) basis. Applications will be accepted from the date of the release of this NOFA and up until July 1, 2020. See Table 1 below for the anticipated timeline for awards for the OTC period. Event Date NOFA Release January 27, 2020 NOFA Application Webinar February 14, 2020 NOFA Application Workshops February and March 2020 Final Due Date for OTC Applications July 1, 2020 Technical Assistance February 2020 through December 31, 2023 Expenditure Deadline December 31, 2023 D-5 CA HCD Notice of Funding Availability 3 Local Early Action Planning Grants 2020 The Department will review applications within 30 days and target award of applications within 60 days, with subsequent Standard Agreements processed within 60 days of award. Applicants are encouraged to submit early in the application window. The Department will hold workshops and a webinar to review the LEAP NOFA and application and will be conducting technical assistance to aid applicants throughout the OTC period and implementation of the grant. For a list of dates, times, and locations for the workshops as well as information on technical assistance, please visit the Department’s website at https://www.hcd.ca.gov/grants-funding/active-funding/leap.shtml. V. Award Amounts This Program will make $119,040,000 dollars available to jurisdictions for Program implementation, including state operations and expenditures, and technical assistance. Maximum award amounts are based on population estimates as of January 1, 2019.1 The minimum award amount is $25,000. The maximum amount that a jurisdiction may receive pursuant to this subdivision shall be as follows: Jurisdiction Size (in population) Maximum Award Amount 750,000 or greater $1,500,000 300,000 to 749,999 $750,000 100,000 to 299,999 $500,000 60,000 to 99,999 $300,000 20,000 to 59,999 $150,000 Less than 20,000 $65,000 Applicants seeking partnerships with other local governments will be additive. For example, two jurisdictions between 100,000 and 299,999 people could submit a proposal for up to $1.0 million. VI. Eligible Applicants Eligible applicants are limited to local governments, i.e., cities and counties. However, local governments may partner through legally binding agreements with other forms of governments or entities where the proposal will have a direct effect 1 Population estimates, posted as of January 1, 2019, are based on the Department of Finance E-1 report. Official maximum amounts per jurisdiction can be found at the Department’s website at https://www.hcd.ca.gov/grants- funding/active-funding/leap.shtml. D-6 CA HCD Notice of Funding Availability 4 Local Early Action Planning Grants 2020 on land-use or development within the participating localities. This includes, but is not limited to, partnerships with other localities, regional governments, housing authorities, school districts, special districts, community-based organizations, or any duly constituted governing body of an Indian Reservation or Rancheria. Applicants forming partnerships, must submit separate, completed and signed application packages, including resolutions and a copy of the signed agreement between partners to the Department in order to be awarded funds. VII. Eligible Activities Eligible activities must demonstrate an increase in housing related planning activities and facilitate accelerated housing production. Eligible activities may be part of a larger planning effort (e.g., a comprehensive zoning code update) if proposed activities have not been completed prior to the NOFA date, are distinct, and demonstrate a nexus to accelerating housing production. Eligible activities are not necessarily jurisdiction-wide and may include a smaller geography with a significant impact on housing production. For example, eligible activities may include a housing development-related project with a significant community level impact, or planning or process improvement for a project with an ongoing community impact beyond the project. Eligible activities may include a variety of planning documents and processes, including, but not limited to, the following as set forth in Health and Safety Code section 50515.03(c): 1. Rezoning and encouraging development by updating planning documents and zoning ordinances, such as General Plans, community plans, specific plans, implementation of sustainable communities’ strategies, and local coastal programs; 2. Completing environmental clearance to eliminate the need for project- specific review; 3. Establishing housing incentive zones or other area-based housing incentives beyond State Density Bonus Law such as a workforce housing opportunity zone pursuant to Article 10.10 (commencing with Section 65620) of Chapter 3 of Division 1 of Title 7 of the Government Code, or a housing sustainability district pursuant to Chapter 11 (commencing with Section 66200) of Division 1 of Title 7 of the Government Code; 4. Performing infrastructure planning, including for sewers, water systems, transit, roads, or other public facilities necessary to support new housing and new residents; 5. Planning documents to promote development of publicly-owned land, such as partnering with other local entities to identify and prepare excess or surplus property for residential development; 6. Revamping local planning processes to speed up housing production; 7. Developing or improving an accessory dwelling unit ordinance in compliance with Section 65852.2 of the Government Code; 8. Planning documents for a smaller geography (less than jurisdiction-wide) with a significant impact on housing production, including an overlay district, project level specific plan, or development standards modifications proposed for significant areas of a locality, such as corridors, downtown or priority growth areas; D-7 CA HCD Notice of Funding Availability 5 Local Early Action Planning Grants 2020 9. Rezoning to meet requirements pursuant to Gov. Code Section 65583(c)(1), and other rezoning efforts to comply with Housing Element requirements, including Gov. Code Section 65583.2(c) (AB 1397, Statutes of 2018); 10. Upzoning or other implementation measures to intensify land use patterns in strategic locations, such as close proximity to transit, jobs or other amenities; 11. Rezoning for multifamily housing in high resource areas (according to Tax Credit Allocation Committee/Housing Community Development Opportunity Area Maps); 12. Establishing pre-approved architectural and site plans; 13. Preparing and adopting Housing Elements of the General Plan that include an implementation component to facilitate compliance with the sixth cycle RHNA; 14. Adopting planning documents to coordinate with suballocations under Regional Early Action Planning Grants (REAP) pursuant to Health and Safety Code Section 50515.02(f) that accommodate the development of housing and infrastructure, and accelerate housing production in a way that aligns with state planning priorities, housing, transportation equity and climate goals, including hazard mitigation or climate adaptation; 15. Zoning for by-right supportive housing, pursuant to Gov. Code section 65651 (Chapter 753, Statutes of 2018); 16. Zoning incentives for housing for persons with special needs, including persons with developmental disabilities; 17. Planning documents related to carrying out a local or regional housing trust fund; 18. Environmental hazard assessments; data collection on permit tracking; feasibility studies, site analysis, or other background studies that are ancillary (e.g., less than 15 percent of the total grant amount) and part of a proposed activity with a nexus to accelerating housing production; and 19. Other planning documents or process improvements that demonstrate an increase in housing related planning activities and facilitate accelerating housing production; and 20. Establishing Prohousing Policies, as follows: Prohousing Policies The Department encourages applicants to consider LEAP funds to facilitate designation as a Prohousing jurisdiction. The 2019-20 Budget Act requires the Department to develop the Prohousing designation emergency regulations by no later than July 1, 2021. This program will allow the Department to designate jurisdictions as “Prohousing,” when they demonstrate policies and strategies to accelerate housing production. In turn, Prohousing jurisdictions will be awarded additional points or preference in programs such as the Affordable Housing and Sustainable Communities (AHSC), Transformative Climate Communities (TCC), Infill Infrastructure Grant (IIG) programs and other state funding programs. The Department anticipates developing emergency regulations and Prohousing designations prior to July 1, 2021, and will seek to designate jurisdictions prior to future rounds of AHSC, TCC and IIG D-8 CA HCD Notice of Funding Availability 6 Local Early Action Planning Grants 2020 programs. Pursuant to Gov. Code Section 65589.9(f)(2), “Prohousing” policies mean policies that facilitate the planning, approval, or construction of housing. These policies may include, but are not limited to, the following: A. Planning for local financial incentives for housing, including, but not limited to, establishing a local housing trust fund ; B. Reducing parking requirements for sites that are zoned for residential development; C. Adoption of zoning allowing for use by right for residential and mixed- use development; D. Zoning more sites for residential development or zoning sites at higher densities than is required to accommodate the minimum existing RHNA for the current Housing Element cycle; E. Adoption of accessory dwelling unit ordinances or other mechanisms that reduce barriers for property owners to create accessory dwelling units beyond the requirements outlined in Section 65852.2, as determined by the Department; F. Process improvements that reduce permit processing time; G. Creating of objective development standards; H. Studies and implementing actions that reduce development impact fees; and I. Establishing a Workforce Housing Opportunity Zone, as defined in Section 65620, or a housing sustainability district, as defined in Section 66200.” VIII. Ineligible Activities 1. Activities unrelated to preparation and adoption of planning documents, and process improvements to accelerate housing production and facilitate compliance to implement the sixth cycle of the RHNA; 2. Activities that obstruct or hinder housing production, e.g., moratoriums, downzoning, planning documents with conditional use permits that significantly impact supply, cost, approval certainty and timing, planned development, or other similarly constraining processes; and 3. Project specific planning documents that do not have a significant impact on accelerating housing production or significant community level or re - occurring benefit beyond the project. 4. The Department may consider proposals that are combined with larger proposals that have a positive housing com ponent and the net effect on accelerating housing production is significant. For example, an applicant may propose combining an open-space designation, downzoning, or anti- displacement measures with by-right upzoning that has a significant net gain in housing capacity. D-9 CA HCD Notice of Funding Availability 7 Local Early Action Planning Grants 2020 IX. Eligible Uses 1. Grant funds may cover the costs of temporary staffing or consultant needs associated with eligible activities; 2. Grant funds shall be used for the costs of preparing and adopting the proposed activity; 3. A jurisdiction that receives funds under this Program may use a subcontractor. The subcontract shall provide for compliance with all the requirements of the Program. The subcontract shall not relieve the jurisdiction of its responsibilities under the Program; 4. Eligible expenditures may be incurred and expended for the project(s) subject to the terms and conditions of the Standard Agreement; and 5. Only approved and eligible costs incurred for work after the NOFA date, continued past the date of the Standard Agreement, and completed during the grant term, will be reimbursable. X. Ineligible Uses 1. Program grant funds may not be used for administrative costs of persons employed by the grantee for activities not directly related to the preparation and adoption of the proposed activity; 2. No more than 5 percent of the grant amount may be used for administrative costs for any proposed use, to be approved by the Department upon disbursement; and 3. Approved and eligible costs incurred prior to the NOFA date are ineligible. XI. Application Requirements Until July 1, 2020, a jurisdiction may request an allocation of funds pursuant to this section by submitting a complete application to the Department that demonstrates: 1. A budget, including timelines, deliverables, sub-steps and adoption, that demonstrates funds will be utilized for eligible activities and uses; 2. How proposed activities will increase housing planning and facilitate accelerating local housing production; 3. Completed or proposed activities consistent with the state or other planning priorities; and 4. All other required information contained in the Department’s application Applicants will demonstrate consistency with these requirements utilizing the forms and manner prescribed in the Department application. Accelerating Housing Production: Applicants must propose and document plans or processes that increase housing planning and facilitate accelerating local housing production. 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 D-10 CA HCD Notice of Funding Availability 8 Local Early Action Planning Grants 2020 supply and affordability. An application must include an explanation and documentation of the nexus to accelerating housing production based on a reasonable and verifiable methodology and must utilize the Department’s form (see the Department’s application). A verifiable methodology may include a statement of support from a non-profit or for-profit developer that is active in the locality. State and Other Planning Priorities: Consistency with state or other planning priorities may be demonstrated through proposed activities in the application OR activities that were completed within the last five years. Applicants must self - certify utilizing the Department’s form (see Department’s application). XII. Application Submission Requirements In order to be eligible for grant funding, an applicant must submit a completed, signed original application and an electronic copy on CD or USB flash drive. Applications will be accepted on an OTC basis as of the date of this NOFA through July 1, 2020. The Department encourages early applications and will accept applications post-marked by the July 1, 2020 deadline. Applicants may utilize various carrier services, such as the U.S. Postal Service, UPS, FedEx, or other carrier services. All applications must be submitted to the Department at the following address: California Department of Housing and Community Development Division of Housing Policy Development 2020 West El Camino Ave, Suite 500 Sacramento, CA 95833 Applications must be on Department forms and cannot be altered or modified by the applicant. Program applications and forms are available on the Department’s website located at https://www.hcd.ca.gov/grants-funding/active- funding/leap.shtml. XIII. Application Review 1. The Program will not utilize a competitive process to award funds. 2. Funds will be available to eligible applicants on a rolling OTC basis that begins as of the date of this NOFA and ends July 1, 2020. 3. An application form will be available upon release of the NOFA and will include forms to demonstrate meeting eligibility requirements such as, among other forms, a resolution, a proposed budget and timeline table and self - certified attachments demonstrating a nexus to housing production and consistency with state planning and other priorities; 4. Applications will first be reviewed for, among other things, completeness, eligibility requirements, and accuracy; 5. In order to be considered complete, an application must contain requested D-11 CA HCD Notice of Funding Availability 9 Local Early Action Planning Grants 2020 information and supporting documentation where appropriate; 6. All applications must meet the eligibility requirements as specified in this NOFA; 7. If the application is ineligible, it will not be considered for funding , but may be amended and resubmitted; 8. The Department may request additional information to complete and approve the application for funding; 9. Applications recommended for funding are subject to conditions specified by the Department; 10. Applications will be reviewed within 30 days from the date the Department receives the application; and 11. All applicants not meeting the eligibility requirements will be informed within 30 days from the date the Department receives the application. XIV. Award Letter and Standard Agreement Successful applicants will receive an Award Letter from the Department and will be awarded funds. Applicants will enter into a state Standard Agreement (Standard Agreement) for distribution of funds. The Standard Agreement process will specify, among other things, the amount of funds granted, timeline for expenditure of funds, and the approved use of funds. Expenditure report dates and other requirements will also be identified in the Standard Agreement. XV. Appeals 1. Basis of Appeals: A. Upon receipt of the Department’s notice deeming an application incomplete or ineligible, applicants under this NOFA may a ppeal such decision(s) to the Department Director. B. The decision of the Director is final and not subject to further administrative or judicial review. C. No applicant shall have the right to appeal a decision of the Department relating to another applicant’s eligibility, award, denial of award, or any other related matter. 2. Appeals Process and Deadlines: A. Process. In order to lodge an appeal, applicants must submit to the Director by the deadline set forth in subsection (b) below, a written appeal which states all relevant facts, arguments, and evidence upon which the appeal is based. No new or additional information will be accepted. Once the written appeal is submitted to the Director, no further information or materials is required to be accepted or considered thereafter. Appeals are to be submitted to the Director at following address: D-12 CA HCD Notice of Funding Availability 10 Local Early Action Planning Grants 2020 California Department of Housing and Community Development Division of Housing Policy Development 2020 W. El Camino Avenue, Suite 500 Sacramento, California 95833 EarlyActionPlanning@hcd.ca.gov The Director will accept appeals delivered through a carrier service such as the U.S. Postal Service, UPS, Fed-Ex, or other carrier services that provide date stamp verification of delivery. Deliveries must be received during the Department’s weekday (non-state holiday) business hours of 9:00 a.m. to 5:00 p.m. Pacific Standard Time. Additionally, emails to the email address listed above will be accepted if the email time stamp is prior to the appeal deadline. B. Filing Deadline. Appeals must be received by the Director no later than (5) five business days from the date of the Department’s determination. 3. Decision: Any request to amend the Department’s decision shall be reviewed for compliance with this NOFA and its application. The Director shall render his/her decision in writing within fifteen (15) business days of receipt of the applicant’s written appeal. The decision of the Director shall be the Department’s final decision, and shall not be appealable to any court or tribunal. XVI. Administration 1. Grant Execution and Term A. The Department will notify the grantee if they have been selected for a grant award; B. After the Standard Agreement has been drawn, the grantee will be provided instructions for signing all required documents. The grantee must submit all supporting materials and a signed Standard Agreement within the timeline provided in the instructions, or risk forfeiting the grant award; C. The grant term begins on the day the Department and the grantee have fully executed the Standard Agreement. The Department will notify the grantee and partners when work may proceed under the agreement. However, eligible activities that are approved by the Department may be retroactively reimbursed to the date of the NOFA; and D. The end of the grant term will be determined by the state based on the availability of grant funds and the administrative requirements for liquidation. D-13 CA HCD Notice of Funding Availability 11 Local Early Action Planning Grants 2020 2. Payment and Accounting of Grant Funds A. Grant funds cannot be disbursed until the Standard Agreement has been fully executed; B. The grantee will be responsible for compiling and submitting all invoices and reporting documents. Grantees will submit for reimbursements to the Department based on actual cost incurred; C. The grantee must bill the state based on clear deliverables outlined in the Standard Agreement or budget timeline. Only approved and eligible costs incurred for work after the NOFA date, continued past the date of the Standard Agreement, and completed and processed prior to the expenditure deadline, will be reimbursable. Approved and eligible costs incurred prior to the NOFA date are ineligible; D. Work must be completed prior to requesting reimbursement; E. Grant fund payment will be made on a reimbursement basis; advance payments are not allowed. The grantee and partners must have adequate cash flow to pay all grant-related expenses prior to requesting reimbursement from the Department. Project invoices will be submitted to the Department by the grantee on a quarterly basis; F. In unusual circumstances, the Department may consider alternative arrangements to reimbursement and payment methods based on documentation demonstrating cost burdens, including the inability to pay for work; G. Supporting documentation may include, but is not limited to: receipts, progress payments, subcontractor invoices, time cards, etc.; H. Invoices must be accompanied by reporting materials where appropriate. Invoices without the appropriate reporting materials will not be paid. The Department may withhold 10 percent of the grant until gra nt terms have been fulfilled; and I. Each recipient of funds under the Program shall expend those funds no later than December 31, 2023. 3. Accounting Records and Audits A. The grantee must establish a separate ledger account for receipts and expenditures of grant funds and maintain expenditure details in accordance with the budget and timeline. Separate bank accounts are not required; B. The grantee shall maintain documentation of its normal procurement policy and competitive bid process (including the use of sole source purchasing), and financial records of expenditures incurred during the course of the project, in accordance with generally accepted accounting principles; C. The grantee agrees that the state or designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of the Standard Agreement; D. The grantee agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated; E. Subcontractors employed by the grantee and paid with moneys under the D-14 CA HCD Notice of Funding Availability 12 Local Early Action Planning Grants 2020 terms of this Standard Agreement shall be responsible for maint aining accounting records as specified above; F. At any time during the term of the Standard Agreement, the Department may perform, or cause to be performed, a financial audit of any and all phases of the award. At the Department’s request, the awardee shall provide, at its own expense, a financial audit prepared by a certified public accountant. The State of California has the right to review project documents and conduct audits during project implementation and over the project life; G. The Department may request additional information, as needed, to meet other applicable audit requirements; and H. The Department may monitor expenditures and activities of an applicant, as the Department deems necessary, to ensure compliance with Program requirements. 4. Remedies of Nonperformance A. In the event that it is determined, at the sole discretion of the state, that the grantee is not meeting the terms and conditions of the Standard Agreement, immediately upon receiving a written notice from the Department to stop work, the grantee shall cease all work under the Standard Agreement. The Department has the sole discretion to determine that the grantee meets the terms and conditions after a stop work order, and to deliver a written notice to the grantee to resume work under the Standard Agreement; B. Both the grantee and the Department have the right to terminate the Standard Agreement at any time upon 30 days written notice. The notice shall specify the reason for early termination and may permit the grantee or the Department to rectify any deficiency(ies) prior to the early termination date. The grantee will submit any requested documents to the Department within 30 days of the early termination notice; and C. There must be a strong implementation component for the funded activity through this Program, including, where appropriate, agreement by the locality to formally adopt the completed planning document. Localities that do not formally adopt the funded activity could be subject to repayment of the grant. D. The Department may, as it deems appropriate or necessary, request the repayment of funds from an applicant, or pursue any other remedies available to it by law for failure to comply with Program requirements (Health and Safety Code section 50515.04(e). 5. Reporting A. At any time during the term of the Standard Agreement, the Department may request a performance report that demonstrates satisfaction of all requirements identified in the Standard Agreement with emphasis on eligible activities, eligible uses, ineligible uses, and expenditures, according to timelines and budgets referenced in the Standard Agreement; B. Awardees shall submit a report, in the form and manner prescribed by D-15 CA HCD Notice of Funding Availability 13 Local Early Action Planning Grants 2020 the Department, to be made publicly available on its internet website, by April 1 of the year following the receipt of those funds, and annually thereafter until those funds are expended, that contains the following information: • The status of the proposed uses listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdiction; and • A summary of building permits, certificates of occupancy, or other completed entitlements issued by entities within the region, or by the jurisdiction, as applicable. C. The awardee must, in lieu of a separate report, provide the above described information as part of its annual report pursuant to Gov. Code Section 65400; D. The Department may request additional information, as needed, to meet other applicable reporting requirements; E. Upon completion of all deliverables within the Standard Agreement, the awardee shall submit a close out report. See Attachment 1; and F. The Department shall maintain records of the following and provide that information publicly on its internet website: • The name of each applicant for Program funds and the status of that entity’s application; • The number of applications for Program funding received by the Department; and • The information described in 5(B) above for each recipient of Program funds. XVII. Right to Modify or Suspend the NOFA, and Final Decision-making The Department reserves the right, at is sole discretion, to suspend, amend, or modify the provisions of this NOFA at any time, including, without limitation, the amount of funds available hereunder. If such an action occurs, the Department will notify all interested parties and will post the revisions to the Department’s website. You may subscribe to the Department’s email list here: http://www.hcd.ca.gov/HCD_SSI/subscribe-form.html. Further, the Department’s decision to approve or deny an application or request for funding pursuant to the Program, and its determination of the amount of funding to be provided, shall be final. D-16 CA HCD Notice of Funding Availability 14 Local Early Action Planning Grants 2020 XVIII. Definitions All terms not defined below shall, unless their context suggests otherwise, be interpreted in accordance with the meanings of terms described in Health and Safety Code section 50470. A. “Accelerating Housing Production” means improving the timing, cost, feasibility, approval and amount of development through various mechanisms such as zoning incentives (e.g., increased density and heights, reduced parking requirements), upzoning, zoning amendments to permit residential in non-residential zones, corridor planning, development standards modifications, non-discretionary review, financing strategies, sliding scale fee modifications, facilitating adequate infrastructure to support development, approval streamlining that addresses quickness and ease of entitlements, and other mechanisms that promote production or remove or mitigate regulatory barriers. B. “Affordability” means a housing unit that satisfies at least one of the following criteria: 1. It is available at an “affordable rent” as that term is used and defined in Section 50053 of the Health & Safety Code; 2. It is offered at an “affordable housing cost”, as that term is used and defined in Section 50052.5 of the Health & Safety Code; or 3. It is available at an “affordable rent” or an “affordable housing cost” according to the alternative percentages of income for agency -assisted rental and cooperative housing developments pursuant to Department regulations adopted under Health and Safety Code section 50462(f). C. “Annual Progress Report” (APR) means the annual report required to be submitted to the Department pursuant to paragraph (2) of subdivision (a) of Section 65400 of the Government Code. D. “Completed entitlement” means a housing development project that has received all the required land use approvals or entitlements necessary for the issuance of a building permit and for which no additional action, including environmental review or appeals, is required to be eligible to apply for and obtain a building permit. E. “Council of governments” means a single or multicounty council created by a joint powers agreement pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code that is responsible for allocating regional housing need pursuant to Sections 65584, 65584.04, and 65584.05 of the Government Code. F. “Department” means the California Department of Housing and Community Development. D-17 CA HCD Notice of Funding Availability 15 Local Early Action Planning Grants 2020 G. “Housing” means any development that satisfies both of the following criteria: 1. At least two-thirds of the square footage of the development must be designated for residential use; and 2. Includes a house, an apartment, a mobile home or trailer, a group of rooms, or a single room that is occupied as separate living quarters, or, if vacant, is intended for occupancy as separate living quarters. Separate living quarters are those in which the occupants live separately from any other individuals in the building , and which have a direct access from the outside of the building, or through a common hall. Note: accessory dwelling units (ADU) and junior accessory dwelling units (JADU) pursuant to Gov. Code sections 65852.2 and 65852.22 meet the definition above. H. “Housing Element” or “element” means the Housing Element of a community’s General Plan, as required pursuant to subdivision (c) of Section 65302 of the Government Code and prepared in accordance with Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. I. “Jurisdiction” means any city, including a charter city, county, including a charter county or city and county, including a charter city and county. J. “Local government” or “Locality” means any city, including a charter city, county, including a charter county or city and county, including a charter city and county. K. “Objective zoning standard”, “objective subdivision standard”, and “objective design review standard” means standards that involve no personal or subjective judgment by a public official, and are uniformly verifiable by reference to an external and uniform benchmark or criterion available, and knowable by both the development applicant or proponent and the public official prior to submittal. “Objective design review standards” means only objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submission of a development application, which are broadly applicable to development within the jurisdiction. L. “Other Planning Priorities” means planning, policies, programs or investments to promote housing choices and affordability to lower and moderate income households, the encouragement of conservation of the existing affordable housing stock, and efforts to take into account current and future impacts of climate change, including hazard mitigation. M. “Regional housing need assessment” means the existing and projected need for housing for each region, as determined by the Department pursuant to Section 65584.01 of the Government Code. D-18 CA HCD Notice of Funding Availability 16 Local Early Action Planning Grants 2020 N. “State Planning Priorities” means priorities which are intended to promote equity, strengthen the economy, protect the environment, and promote public health and safety in the state, including in urban, suburban, and rural communities pursuant to Gov. Code Section 65041.1. O. “Streamlined Housing Production” means improving the entitlement process through actions such as removing, mitigating or minimizing local regulatory requirements, reforming the local approval process to reduce processing times, the number of local discretionary approvals and permits needed for projects, improving approval certainty, establishing non -discretionary processes, modifying development standards, such as reducing parking requirements and increasing height limits, or other efforts, such as taking the fullest advantage of existing streamlining mechanisms provided in state law. D-19 CA HCD Notice of Funding Availability 17 Local Early Action Planning Grants 2020 Attachment 1 Close Out Reporting Form D-20 CA HCD Notice of Funding Availability 18 Local Early Action Planning Grants 2020 LEAP Grant Close Out Reporting Template Brief Summary • Overview of the project • Project start date and duration • Project goals and relevance to LEAP goals • Quantified outcomes Lead Agency and Partnerships • List lead agency and partnerships (including names, titles, organizations, and roles and responsibilities of each) • What did those collaborative relationships and processes look like? Drivers • Did any local, state, or federal legislation or mandates drive the project? (SB 35, AB 1397, etc.) • Was it a community driven effort? • Were there additional funding opportunities present? Engagement Process • Who were your stakeholders? • What did the engagement process look like? • What role did stakeholders play in the process? (Keep in mind: training, education, council formation, technical assistance, etc.) • What were the outcomes of the engagement process? Challenges • What challenges were encountered? • What solutions were encountered or created? • Are there areas for improvement of policy alignment at the state or federal level to help achieve this project more easily? D-21 CA HCD Notice of Funding Availability 19 Local Early Action Planning Grants 2020 LEAP Grant Close Out Reporting Template Outcomes • What are the current or projected outcomes? Benefits? • Were outcomes as anticipated? • Have new opportunities arisen as a result of this project? • What are the next steps? Replicability • What aspects of the project could be replicated in other communities? • Useful resources and tools? For a specific region or sector? Additional Resources • Links to the project itself • Links to resources used throughout and any other relevant resources Further Information • Who can be reached to ask more questions about this project? • Name • Number and/or email D-22