SB 2 GRANT HOUSING ELEMENT CONTRACT July 21, 2020 City Council Meeting
2 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 v v
3 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: v v • 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) ordinance 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
4 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 v v 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
5 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 v v • 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
6 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 v v • 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.
7 LEAP PROJECTS 1. 2021-2029 Housing Element Update (supplementing previously- approved SB 2 grant funds) $55,000 2. Inclusionary Housing Program v v $70,000 3. General Plan Amendment and Zoning Actions Necessary to Implement the Housing Element $375,000
8 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. v v 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
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