Agenda Item Wording:
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Authorization to accept and appropriate funding for a State of California Housing and Community Development Local Early Action Planning (LEAP) Grant for various community development programs in the amount of $246,000.00.
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Deadline for Action: 4/4/2022
Submitting Department: Community Development
Contact Name and Phone Number:
Paul Bernal, Community Development Director, paul.bernal@visalia.city <mailto:paul.bernal@visalia.city>, (559)713-4025
Department Recommendation:
City staff recommends that the City Council authorize the City of Visalia Community Development Department to accept and appropriate funding for a State of California Department of Housing and Community Development Local Early Action Planning (LEAP) grant in the amount of $246,000.00 for various community development activities consisting of:
1. Preparation and adoption of the 2023-2031 Housing Element Update (6th Cycle),
2. Zoning Ordinance update improving the City of Visalia's Accessory Dwelling Unit ordinance in compliance with Section 65852.2 of the Government Code.
3. Update the City of Visalia’s Planned Unit Residential Ordinance.
Summary:
The California Department of Housing and Community Development (HCD) announced the release of the 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). LEAP provides one-time grant funding to cities and counties to update their planning documents and implement process improvements that will facilitate the acceleration of housing production and help local governments prepare for their 6th cycle RHNA much like the SB2 Planning Grants. The City submitted the grant application on January 4, 2021. On June 29, 2021, the City received notification that the Community Development Department was approved for funding and a conditional commitment of an award in the full amount of $246,000.00. The grant application is now in the awarding process, wherein the State has submitted to the City the Standard Agreement.
Background Discussion:
The City of Visalia is proposing use of the Local Early Action Planning (LEAP) grant funds for the City’s preparation of three unique projects, all of which will assist with streamlining housing approvals.
The first project the City of Visalia intends to use grant funding for is the preparation and adoption of the 2023-2031 Housing Element Update (6th Cycle) with the help of a consultant. Based on future estimated RHNA allocation housing units for the City of Visalia, and the opening of the City’s Tier 2 Urban Growth Boundary in July 2021, the City will need to ensure that Tier 2 provides adequate land uses to facilitate our housing needs. The City’s physical growth has been occurring under Growth Tier I since the adoption of the General Plan Update in 2014, and forecasting indicates that residential growth will reach the trigger for expanding into Tier II by the end of 2021 if current building trends continue. The opening of Tier II, with a capacity of 4,408 additional single and multi-family units, is critical to enabling more land for various affordability levels to be developed within the City.
The housing element will:
• Identify and analyze the current and projected housing needs for all economic segments of the community.
• Evaluate the current and potential constraints to meeting those needs.
• Inventory and assess availability of land suitable for residential use.
• Establish a series of goals, objectives, policies and programs aimed at responding to housing needs, and housing opportunities.
Visalia is seeking to have the housing element adopted prior to December 2023 deadline to be placed back on an 8-year planning housing element update cycle. Through the LEAP grant, $155,000 has been budgeted for this task.
The second project would be a Zoning Ordinance update improving the City of Visalia's accessory dwelling unit ordinance in compliance with Section 65852.2 of the Government Code. The City is currently in the process of working with a local design firm to develop pre-designed Accessory Dwelling Unit (ADU) plans. However, the City’s current ADU ordinance, and other zoning ordinance provisions related to ADU’s and accessory structures requires revisions to the City's current ADU ordinance and other components of the Zoning Ordinance to bring it into compliance with Section §65852.2 of the Government Code. With the adoption of an updated ADU ordinance, and permit ready ADU plans, the City of Visalia would seek ways to encourage the construction of ADU’s that could be counted towards the City’s affordable housing inventory. Through the LEAP grant, $28,500 has been budgeted for this task.
The third project would be an update to the City of Visalia’s Planned Unit Development Ordinance. With current growth trends, developers are seeking ways to maximize density by implementing various design techniques including “cluster” housing units, reduced number of units on street frontages, and incorporation of private open space. To ensure that future residential PUD’s can be analyzed and evaluated based on a set of reliable codified design standards that are in keeping with the PUD Ordinance objectives, staff would seek ways to develop and incorporate these standards into the ordinance so that developers have a clear understanding on the development standards required of these unique projects that seek to develop housing units at a higher density range. Through the LEAP grant, $62,500 has been budgeted for this task.
Fiscal Impact:
Staff is requesting to appropriate $246,000.00 from the General Fund to fully fund the three projects described in the grant application (i.e., Housing Element 6th Cycle Update $155,000; ADU Ordinance Update $28,500; PRD Ordinance Update $62,500). The LEAP Grant Program does not require matching funds. This grant provides a secure source of funding the preparation and adoption of the 2023-2031 Housing Element Update (6th Cycle), Zoning Ordinance update improving the City of Visalia's ADU ordinance in compliance with Section 65852.2 of the Government Code, and update to the City of Visalia’s Planned Unit Residential Ordinance.
Prior Council Action:
On January 4, 2021, the City Council approved Resolution No. 2020-70, authorizing the Community Development Department to submit a grant proposal under the LEAP Planning Grants Program. The approval also authorized staff to appropriate grant funds. The staff report associated with this action is included as an attachment.
Alternatives: Deny the grant award and the funding for the three proposed projects.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City of Visalia Community Development Department to accept and appropriate funding for a State of California Housing and Community Development LEAP grant in the amount of $246,000 for various community development activities.
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Environmental Assessment Status: None.
CEQA Review: No CEQA is required for the grant acceptance.
Attachments:
1. City Council staff report requesting authorization to submit grant proposal, January 4, 2021.
2. State of California Housing and Community Development grant approval letter, June 29, 2021.