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Planning and Building Department, Planning Services Division, Long Range Planning Unit staff, recommending the Board of Supervisors (Board):
1) Accept a grant award, in accordance with Board Policy A-6, in the amount of $90,000 for Local Government Planning Support Grants Program funding from the California Department of Housing and Community Development allocated through the Sacramento Area Council of Governments (SACOG) under a Regional Early Action Planning (REAP) Grants Program Memorandum of Understanding (MOU);
2) Authorize the Planning and Building Department Director, or designee, to execute a Memorandum of Understanding with SACOG for the grant funding;
3) Authorize the Planning and Building Department Director, or designee, to execute subsequent amendments thereto that do not affect the dollar amount or the term, and to act on the County’s behalf in all matters pertaining to this MOU contingent upon approval by County Counsel and Risk Management; and
4) Approve and authorize the Chair to sign a budget transfer adjusting the budget for FY 2021-22 to accommodate the grant fund and related expenses (4/5 vote required).
FUNDING: California Department of Housing and Community Development Local Government Planning Support Grants Program, Regional Early Action Planning Grants.
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DISCUSSION / BACKGROUND
California Assembly Bill 101 established the Local Government Planning Support Grants Program to provide regions and jurisdictions with one-time funding to establish priorities that increase housing planning and accelerate housing production. The State’s Local Government Planning Support Grants Program will bring almost $14 million to the region for housing planning related activities. Under this program, the funding going directly to regions is called the Regional Early Action Planning (REAP) program. The REAP program funding is available to the County through SACOG as the regional Council of Governments.
The REAP program funds must be used to increase housing planning and accelerate housing production through an improved Regional Housing Needs Allocation (RHNA) methodology established by SACOG, provide technical assistance to cities and counties, and support local efforts to accelerate housing production.
The SACOG Board approved a plan for the REAP funds that include a non-competitive grant program to distribute REAP funds to local jurisdictions based on their Cycle 6 RHNA. Based on SACOG's RHNA formula, El Dorado County is eligible for a second round of REAP funding of up to $90,000 to assist with development of an Affordable Housing Incentive Ordinance to support the acceleration the production of affordable housing.
Staff is requesting Board approval to accept the REAP grant funding, as required by the Board Policy A-6, Grants - Application and Administration, and authorize the Planning and Building Department Director to designate the Deputy Director of Planning, or successor, to execute a Memorandum of Understanding with SACOG for the grant funding.
REAP grant funds were awarded to help the County develop an Affordable Housing Ordinance that will encourage and assist the development of housing that is affordable to extremely low-, very low-, low-, and moderate-income households by considering a variety of housing policy tools, including inclusionary housing.
The Affordable Housing Ordinance will incorporate and expand upon existing affordable housing incentives prescribed by state law and shall incorporate the affordable housing provisions from the County's Land Development Manual (LDM), Residential Development Processing Procedures; and Infill Incentives Ordinance with an emphasis on promoting incentives to encourage development of affordable housing in high resource areas to improve economic mobility between high and low resource areas that improve equity and affirmatively further fair housing. The County anticipates being able to streamline the approval process and increase affordable housing development while promoting anti-displacement policies through adoption of the Affordable Housing Ordinance.
In order to accommodate the REAP grant funding, the FY 2021-22 Budget will need to be adjusted as follows:
Budgeted appropriations in the Long Range Planning budget need to be increased in Professional Services by $90,000. This is offset by an increase in State - Other Revenue in the amount of $90,000 in the Long Range Planning budget.
ALTERNATIVES
The Board may reject staff recommendation to accept the state REAP program from SACOG which would result in forfeiting the funding allocation to the County which would delay the development of an Affordable Housing Ordinance until other funding resources can be identified.
PRIOR BOARD ACTION
On November 10, 2020, the Board accepted $35,000 in REAP funding from SACOG to assist with the General Plan Housing Element Update 2021-2029 land inventory process required to meet the County’s RHNA allocation. (See Agenda item No. 32, Legistar No. 20-1320.) At that time the Board authorized the Planning and Building Department Director, or designee, to execute a Memorandum of Understanding with SACOG for the grant funding.
April 13, 2021, the Board of Supervisors endorsed the Long Range Planning Project Prioritization Matrix for Fiscal Year 2021/22 (Legistar Text (Agenda Item No. 21, Legistar No. 21-0502) and directed staff to prioritize an Affordable Housing Ordinance as a Tier 1 (highest) priority on the work plan.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and SACOG.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no net County cost related to approval of this item. The REAP funds will supplement General Fund allocated to the Planning and Building Department FY 2021-22 Budget for development of an Affordable Housing Incentive Ordinance.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Obtain the Chair’s signature on the original budget transfer and forward the budget transfer to the Auditor/Controller for processing.
2) Provide a copy of the executed budget transfer to Long Range Planning, attn.: C.J. Freeland.
STRATEGIC PLAN COMPONENT
Good Governance - "Promote the development of resources to identify and purse additional revenue including local, state, federal and private funding for new and existing projects.”
Healthy Communities - "Achieve sufficient and attainable housing for all El Dorado County residents.”
Economic Development - "Provide attainable housing options - balance jobs with housing.”
CONTACT
Robert Peters, Deputy Director of Planning
Planning and Building Department