08 Staff Report.SB 2 Planning Grants.docx
PREPARED BY: Sally Zarnowitz, AIA, LEED AP
Planning Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 11/05/2019
ITEM NO: 8
DATE: October 22, 2019
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution to Authorize the Application for and Receipt of Planning
Grants Program Funds
RECOMMENDATION:
Adopt a resolution (Attachment 3) to authorize application for and receipt of Planning Grants
Program funds, including execution of an agreement with the California Department of Housing
and Community Development by the Town Manager.
BACKGROUND:
In 2017, Governor Brown signed a 15-bill housing package aimed at addressing the State’s
housing shortage and high housing costs. Specifically, it included the Building Homes and Jobs
Act (SB 2) which established a $75 recording fee on real estate documents to provide a
permanent source of funding intended to increase the supply of affordable homes in California.
The legislation directs the Department of Housing and Community Development (HCD) to use
50 percent of the first year’s revenue (January through December 2018) to establish a non-
competitive Planning Grants Program (PGP) that provides financial and technical assistance to
local governments to update planning documents and land-use ordinances. A maximum award
amount of $160,000 is available for localities with a population of less than 60,000 people.
Eligible local governments (cities and counties) must: have an HCD-compliant Housing Element,
have submitted a recent Housing Element Annual Progress report, and demonstrate that the
local government’s actions are consistent with established State Planning Priorities. The Town
is in compliance with these requirements.
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SUBJECT: Planning Grants Program Funds
DATE: October 22, 2019
BACKGROUND (continued):
To qualify for funding, localities must also demonstrate a nexus of proposed activities to
accelerating housing production. However, activities that fall into at least one of six Priority
Policy Areas identified by HCD are automatically deemed to demonstrate a nexus to
accelerating housing production, without requiring any further documentation by the local
government.
On September 24, 2019, the Town Council Policy Committee discussed the merits of an
application and potential planning activities which could fall into at least one Priority Policy
Area. Attachment 1 contains the Policy Committee staff report with the HCD Notice of Funding
Availability (NOFA) for the PGP.
The Committee noted that while the Town is considering goals, policies, and future action items
through its General Plan update process, the PGP funds could be utilized for consultant services
to assist in completing current action items in the adopted 2015-2023 Housing Element of the
Genera Plan. Following further discussion, this was the Committee’s recommendation (see
Attachment 2 for the Policy Committee minutes).
DISCUSSION:
Housing Element Action item HOU-2.4 includes amending the Town Code to add by right
development findings for affordable housing applications that meet objective standards , as
follows:
Action HOU-2.4 By Right Findings: For multiple family residential development within the
North 40 and the Southbay AHOZ site subject to by right development,
the Town will amend the Town Code to add by right development
findings that, among other items, state that if a project meets the
objective review criteria contained in the AHOZ Design Guidelines or
North 40 Specific Plan design guidelines the deciding body will approve
the affordable housing proposal.
The Planning Grants application would request funds to hire a planning consultant to determine
amendments to the Town Code to add by right development findings and developing objective
standards for development applications. A consultant would be selected after a Request for
Qualifications (RFQ) process and the Council would approve the award of the consultant
contract at a future date.
PAGE 3 OF 3
SUBJECT: Planning Grants Program Funds
DATE: October 22, 2019
CONCLUSION:
Approval of this item would allow Town staff to submit an application for the non-competitive
PGP funds in the amount of $160,000 by November 30, 2019, with the intent of receiving funds
to be used to develop by right findings and objective standards.
COORDINATION:
The preparation of this report was coordinated with the Finance Department and the Town
Manager’s Office.
FISCAL IMPACT:
The receipt of PGP funds would facilitate the completion of an important Housing Element
Action Item. Once received, the funds will be added to the Town’s budget and acknowledged
at the Mid-Year Budget Review.
ENVIRONMENTAL ASSESSMENT:
The project is Categorically Exempt pursuant to the adopted Guidelines for the Implementation
of the California Environmental Quality Act, Section 15061(b)(3), in that it can be seen with
certainty that there is no possibility that the proposed amendments to the Town Code will have
a significant effect on the environment.
Attachments:
1. September 24, 2019 Town Council Policy Committee Staff Report with Attachment 1
2. September 24, 2019 Town Council Policy Committee Minutes
3. Draft Resolution