SB 2 GRANT HOUSING ELEMENT CONTRACT July 21, 2020 City Council - - PowerPoint PPT Presentation

SB 2 GRANT HOUSING ELEMENT CONTRACT July 21, 2020 City Council Meeting

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HOUSING ELEMENT UPDATE PROCESS

• The City must prepare and adopt a compliant Housing Element certified

by HCD by October 2021

• SB 2 funds must be expended by the end of the grant term period which

will run from March 28, 2019 to June 30, 2022

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SB 2 GRANT

• The City of Costa Mesa was awarded the maximum amount of

$310,000 for a medium size City under the SB-2 Grant program.

• On November 5, 2019, the City Council approved the City’s SB-2 grant

funding application, which included the following projects:

• 6th Cycle Housing Element Update (2021–2029 planning period) to meet

the City’s Regional Housing Needs Assessment - $155,000

• Zoning Code Amendment to update the City’s Accessory Dwelling Unit (ADU)
• rdinance in keeping with current State law - $89,000
• Purchase and update to software and hardware equipment to expedite

electronic plan check and planning review - $66,000

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REGIONAL HOUSING NEEDS ASSESSMENT (RHNA)

• Through the Draft Regional Housing Needs Assessment (RHNA), Costa

Mesa has been allocated 11,727 housing units for the next Housing Element planning period

• The RHNA process was initiated by the South California Association of

Government (SCAG) in 2018

• The Draft RHNA Methodology was approved by the SCAG Regional

Council at its meeting on November 7, 2019. The SCAG RHNA Sub- Committee is expected to take final action on the Final RHNA Allocation Methodology and the RHNA Appeal Procedures this fall

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RFP AND EVALUATION

• On May 4, 2020, a Request for Proposal (RFP) was released requesting

proposals from qualified consultants with experience preparing Housing Elements

• Two Proposals were received: Kimley-Horn and Assoc. and Realty Planners

Group

• The proposals were evaluated and staff is recommending a contract with

Kimley-Horn and Assoc. because of its high-quality proposal and extensive experience with Housing Element updates, as well as its team of well- qualified professionals

• The cost to complete the Housing Element update will be entirely

funded by SB-2 grant funds

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LOCAL EARLY ACTION PLANNING (LEAP) FUNDS

• HCD released a Notice of Funding Availability (NOFA) on January 27,

2020, identifying that approximately $119 million would be available to local governments under the LEAP Grant Program

• Funding for each locality is based on population estimates published by

the Department of Finance. The City of Costa Mesa is defined as a medium size City and could receive up to $500,000

• Application for LEAP grant was approved by the Council and submitted on

June 26, 2020.

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LEAP PROJECTS

• 1. 2021-2029 Housing Element Update (supplementing previously-

approved SB 2 grant funds) $55,000

• 2. Inclusionary Housing Program

$70,000

• 3. General Plan Amendment and Zoning Actions Necessary to

Implement the Housing Element $375,000

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RECOMMENDATION

• Accept a $310,000 Senate Bill (SB) 2 Planning Grant from California Department of

Housing and Community Development (HCD) for the 2021-2029 Housing Element Update, planning software update; and zoning code amendment

• Approve a budget adjustment recognizing and appropriating $310,000 in grant revenue
• Award a Professional Services Agreement (PSA) to Kimley-Horn and Associates, Inc.

in the amount of $154,920 with a term of two years with three optional one-year extensions for the preparation of the 2021-2029 Housing Element Update

• Authorize the City Manager and City Clerk to sign and execute the agreement
• Authorize the City Manager to execute future amendments to this agreement, including

a potential increase in compensation as long as the amendment is funded by grant funds, thereby not affecting the City’s General Fund

SB 2 GRANT HOUSING ELEMENT CONTRACT July 21, 2020 City Council Meeting