HomeMy WebLinkAboutCD Senate Bill 2 Planning Grants Program____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 04/15/2019
Disposition: Resolution 14656
Agenda Item No: 4.b
Meeting Date: April 15, 2019
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community Development
Prepared by: Paul A. Jensen,
Community Development Director
City Manager Approval: ______________
TOPIC: SENATE BILL 2 PLANNING GRANTS PROGRAM
SUBJECT: RESOLUTION ENDORSING AND AUTHORIZING STAFF TO FILE APPLICATIONS
FOR THE SENATE BILL 2 PLANNING GRANTS PROGRAM; CASE NO. P19-004
RECOMMENDATION:
Adopt a resolution endorsing and authorizing staff to file applications for Senate Bill 2 Planning Grants.
BACKGROUND:
Senate Bill 2 (SB2)
In 2017, Governor Brown signed Senate Bill 2 (SB 2). Referred to as the “Building Homes and Jobs Act,”
this law establishes a permanent, on-going source of funding dedicated to promoting and facilitating
affordable housing development. The source of funding is secured through a fee that is imposed at the
time of the recording of every real estate instrument, paper or notice for each single real estate transaction
on a parcel of property. The recording fee ranges from $75.00 to $225.00 depending upon the nature
and scope of the property transaction. Sales transactions for single-family homes are exempt from this
fee. Effective January 1, 2018, the fee is collected by the County Recorder, who, in turn forwards
(quarterly) the fee revenues to the State Controller. The fee is projected to generate $200 million in annual
revenue statewide.
The law prescribes that the revenue collected for the 2018 calendar year be deposited into two funds: a)
50% of the revenue is to be placed in a fund made available to local governments for planning grants;
and b) 50% of the revenue is to be placed in a fund made available to the Department of Housing and
Community Development (HCD) to assist persons experiencing or at risk of homelessness. For revenues
collected after January 1, 2019, the allocation changes. The revenue allocated to local governments is
to be used for planning to promote and facilitate the production of affordable housing throughout
California. The local government share of this revenue is to be administered through a grant program.
SB 2 Planning Grants Program
On March 28, 2019, HCD launched the SB 2 Planning Grants Program. A Notice of Funding Availability
(NOFA) was released for approximately $123 million, the statewide revenue earmarked for local
government grants. Under this grant program, local governments are provided an eligibility allowance
based on community population. The City of San Rafael falls within the “medium localities” category
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
(defined as a locality with a population between 60,000 and 200,000), which is eligible for up to $310,000
in grant funding. The purpose of the Planning Grants Program is to provide financial and technical
assistance to local governments to update planning documents to:
• Accelerate housing production;
• Streamline the approval of housing development;
• Facilitate housing affordability;
• Promote the development of housing; and
• Ensure geographic equity in the distribution and expenditure of allocated funds.
The website for the SB 2 Planning Grants Program can be accessed here. The administration of this
Planning Grant Program is governed by guidelines which can be accessed here. A summary of the
guidelines is as follows:
• The call for applications for grant funding is open for eight months, through November 30, 2019.
During this eight-month period, the local government agency can file one or multiple applications
for grant funding.
• HCD anticipates that the time frame for awarding the grant is approximately two-three months
from the date of application filing.
• Activities eligible for the grant funds include, among others: a) updates to General Plans and
zoning to promote or accelerate housing production; b) environmental analyses that eliminate the
need for project review; c) local improvements to the permit process to expedite local planning
review; d) establishing and implementing special districts and zones such as a workforce housing
opportunity zone; and e) rezoning for “by-right” supportive housing, for special needs populations
and for multi-family housing in high resource areas.
• To be eligible for grant funds, the local government agency must: a) have a certified and compliant
Housing Element; b) have completed the required, Annual Progress Report (APR) on the Housing
Element and submitted the APR to HCD; and c) demonstrate that the project will support a nexus
to accelerate housing production.
ANALYSIS:
The Planning Grants Program provides several excellent opportunities for the City of San Rafael. At
present, the following planning projects would be eligible to meet the criteria for grant funding, and are
ready for application:
1. Homeward Bound of Marin – 190 Mill Street. Homeward Bound, who currently operates the
permanent emergency housing shelter at 190 Mill Street. This non-profit organization is
proposing to demolish the existing, one-story housing shelter and construct a new building and
expanded facility. The facility would contain a new, 64-bed permanent emergency housing shelter
and 32 single-resident-occupancy units (supportive and transitional housing). The project
requires a General Plan Amendment and property rezoning as residential use is currently not
permitted at this location. Environmental review is also required. As the goal of the project would
be to establish “by-right” zoning for the property, it would qualify for the grant funding. It is
estimated that $75,000-80,000 would be requested to hire a consultant to manage this project
through the City process and construction.
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2. Development of “Objective Design and Development Standards.” In 2017, Senate Bill 35 (SB 35)
was signed by the Governor, establishing a mandated, ministerial (streamlined) review process
for multi-family residential projects. To qualify for this process, an applicant/developer would be
required to pay prevailing wage for construction labor. This law exempts such projects from
environmental (CEQA) review and limits the local government agency’s project review to
compliance with locally-adopted “objective design and development standards.” Developing such
standards is a challenge as design is subjective and not typically prescribed or quantitative.
The Planning Division staff has been working with the Marin Planning Directors on pursuing the
development of an objective design and development standards toolbox and manual that can be
used by all the Marin jurisdictions. As this project meets the criteria for the SB2 grant funding, a
collective application for funding will be filed with HCD by the Marin jurisdictions. The County of
Marin is taking the lead on this grant filing. The grant request would cover the cost of hiring an
urban design consultant to develop this manual.
The Planning Division staff recently completed draft “objective design and development
standards” to comply with the SB 35 law. This work commenced long before the SB 2 opportunity
became available, so staff will proceed with completing this project. The draft standards will be
brought forward to the Design Review Board later this spring. These standards will require the
review of the Planning Commission and adoption by the City Council. Staff does not find that this
will be a duplicated effort to pursuing the toolbox and manual. Rather, should the toolbox manual
present additional or better measures, the adopted standards will be amended/updated.
There are several other potential projects that could be eligible for this funding but have either not been
fully vetted or are not ready to move forward.
The program guidelines require that the grant request be accompanied by an adopted City Council
resolution, which endorses the request. As it is likely that staff will pursue grant requests for several,
individual projects, a resolution has been drafted (attached) that is not project-specific. The resolution
would authorize staff (the City Manager) to file the individual applications on behalf of the City. The
resolution has been drafted in this manner so that each grant request application is not required to obtain
City Council approval prior to filing.
FISCAL IMPACT:
There is no fiscal impact associated with this item.
The Senate Bill 2 Planning Grants Program does not require a local financial commitment or “match”
from local jurisdictions requesting grant funds. City staff time required for processing the grant
applications and administering/managing the projects funded by the grant would absorbed as part of the
staff workload and would have no impact on the City’s General Fund.
RECOMMENDED ACTION:
Adopt a resolution endorsing and authorizing staff to file applications for Senate Bill 2 Planning Grants.
ATTACHMENT:
1. Resolution
1
RESOLUTION NO. 14656
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL
ENDORSING AND AUTHORIZING THE FILING OF APPLICATIONS FOR
THE SENATE BILL 2 (SB 2) PLANNING GRANTS PROGRAM
CASE NO. P19-004
The City Council of the City of San Rafael finds and determines that:
WHEREAS, in 2017, Governor Brown signed Senate Bill 2 (SB 2). Referred to
as the “Building Homes and Jobs Act,” this law establishes a permanent, on-going
source of funding dedicated to promoting and facilitating affordable housing
development. The source of funding is secured through a fee that is imposed on every
real estate transaction, statewide, except for sales transactions for single-family homes.
The fee is projected to generate $200 million in annual revenue statewide; and
WHEREAS, fifty percent (50%) of the annual revenue is to be made available to
local governments for planning grants to promote and facilitate housing development.
As a result, the SB 2 Planning Grants Program has been launched with an allocation of
$123 million. For 2018, the City of San Rafael is eligible for up to $310,000 in grant
funding. The call for applications for grant funding is open through November 30, 2019;
and
WHEREAS, the Community Development Department is working on several
projects that either directly propose or promote housing development, which would
benefit from and meet the qualifications of the SB 2 Planning Grants Programs. These
projects include, among others, a new permanent emergency housing shelter and
supportive/transitional housing for the homeless population (Homeward Bound of Marin)
and the development of “Objective Design and Development Standards” required to
comply with a State mandate (SB 35); and
WHEREAS, given the current housing crisis and the City’s goals and policies that
strongly encourage housing for all income levels, the SB 2 Planning Grants Program is
timely. Further, the Program does not require a “local match” or financial commitment
that would impact the City’s General Fund or Special General Plan Fund #218;
NOW, THEREFORE, BE IT RESOLVED, that the City Council endorses the SB
2 Planning Grants Program and authorizes staff (City Manager) to file applications on
behalf of the City for projects that are focused on promoting housing development and
would benefit from the grant funding.
I, LINDSAY LARA, City Clerk of the City of San Rafael, hereby certify that the foregoing
Resolution was duly and regularly introduced and adopted at a regular meeting of the
City Council held on the 15th day of April 2019 by the following vote, to wit:
AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: Councilmembers: None
ABSENT: Councilmembers: None
LINDSAY LARA, City Clerk