09 Attachment 2 - Notice of Funding Availablity -LEAP Grants Program STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY Gavin Newsom, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF FINANCIAL ASSISTANCE
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2771 / FAX (916) 263-2763
www.hcd.ca.gov
January 27, 2020
MEMORANDUM FOR: All Potential Applicants
FROM: Zachary Olmstead, Deputy Director
Division of Housing Policy Development
SUBJECT: NOTICE OF FUNDING AVAILABILITY -
LOCAL EARLY ACTION PLANNING GRANTS PROGRAM
The California Department of Housing and Community Development (Department) is
pleased to announce the release of this 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 to 50515.05) (Chapter 159, Statutes of 2019). LEAP provides funding
to jurisdictions for the preparation and adoption of planning documents, process
improvements that accelerate housing production, and facilitate compliance in
implementing the sixth cycle of the regional housing need assessment (RHNA).
In order to be eligible for grant funding, an applicant must submit a completed, signed
original application and an electronic copy on CD or USB flash drive. Applications will
be accepted on an Over-the-Counter (OTC) basis as of the date of this NOFA through
July 1, 2020. The Department encourages early applications and will accept
applications post-marked by the July 1, 2020 deadline. Applicants may utilize various
carrier services, such as the U.S. Postal Service, UPS, FedEx, or other carrier services.
All applications must be submitted to the Department at the following address:
California Department of Housing and Community Development
Division of Housing Policy Development
2020 West El Camino Ave, Suite 500
Sacramento, CA 95833
Program applications, forms and instructions are available on the Department’s website
at https://www.hcd.ca.gov/grants-funding/active-funding/leap.shtml. If you have
questions regarding this NOFA, please email the Department at
EarlyActionPlanning@hcd.ca.gov.
Attachment
ATTACHMENT 2
LOCAL EARLY ACTION PLANNING GRANTS PROGRAM
(LEAP)
2020 NOTICE OF FUNDING AVAILABILITY
State of California
Governor Gavin Newsom
Alexis Podesta, Secretary
Business, Consumer Services and Housing Agency
Douglas R. McCauley, Acting Director
California Department of Housing and Community Development
Zachary Olmstead, Deputy Director
California Department of Housing and Community Development
Division of Housing Policy Development
2020 West El Camino Avenue, Suite 500
Sacramento, CA 95833
Telephone: (916) 263-2911
Website: https://www.hcd.ca.gov/grants-funding/active-funding/leap.shtml
Email: EarlyActionPlanning@hcd.ca.gov
January 27, 2020
Table of Contents
I. Introduction............................................................................................................. 1
II. Authority and Scope ............................................................................................... 1
III. Program Summary ................................................................................................. 2
IV. Program Timeline ................................................................................................... 2
V. Award Amounts ...................................................................................................... 3
VI. Eligible Applicants .................................................................................................. 3
VII. Eligible Activities ..................................................................................................... 4
VIII. Ineligible Activities .................................................................................................. 6
IX. Eligible Uses ........................................................................................................... 7
X. Ineligible Uses ........................................................................................................ 7
XI. Application Requirements....................................................................................... 7
XII. Application Submission Requirements ................................................................... 8
XIII. Application Review ................................................................................................. 8
XIV. Award Letter and Standard Agreement .................................................................. 9
XV. Appeals .................................................................................................................. 9
XVI. Administration ....................................................................................................... 10
XVII. Right to Modify or Suspend the NOFA, and Final Decision-making ..................... 13
XVIII. Definitions............................................................................................................. 14
CA HCD Notice of Funding Availability 1 Local Early Action Planning Grants 2020
2019 NOTICE OF FUNDING AVAILABILITY
LOCAL EARLY ACTION PLANNING GRANTS PROGRAM
I. Introduction
The California Department of Housing and Community Development (Department)
is pleased to announce the release of this 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). The
Program provides funding to jurisdictions for the preparation and adoption of
planning documents, process improvements that accelerate housing production,
and facilitate compliance in implementing the sixth cycle of the RHNA.
II. Authority and Scope
This NOFA is authorized pursuant to Chapter 3.1 of Health and Safety Code
(Sections 50515 to 50515.05). The NOFA implements, interprets, and makes
specific provisions for purposes of implementing planning grants to jurisdictions
pursuant to 50515.03 (hereinafter “LEAP”).
This NOFA establishes terms, conditions, forms, procedures and other
mechanisms as the Department deems necessary to exercise the powers and
perform the duties conferred by Chapter 3.1.
The matters set forth herein are regulatory mandates, and are adopted in
accordance with the authorities set forth below:
Quasi-legislative regulations … have the dignity of statutes … [and]… delegation of
legislative authority includes the power to elaborate the meaning of key statutory
terms…
Ramirez v. Yosemite Water Co., 20 Cal. 4th 785, 800 (1999)
Further, the Department may implement the Program through the issuance of
forms, guidelines, and one or more NOFAs, as the Department deems necessary,
to exercise the powers and perform the duties conferred on it by this chapter. Any
forms, guidelines, and notices of funding availability adopted pursuant to this
section are hereby exempted from the rulemaking provisions of the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2 of the Government Code). (Health and Safety Code Section
50515.04(f)).
The Department reserves the right, at its sole discretion, to suspend or amend the
provisions of this NOFA, including, but not limited to, grant award amounts.
CA HCD Notice of Funding Availability 2 Local Early Action Planning Grants 2020
III. Program Summary
The Local Early Action Planning Grants Program (LEAP or Program) is part of the
broader Program formerly known as the Local Government Planning Support
Grants Program, which was established as part of the 2019-20 Budget Act. The
2019-20 Budget Act provides a spectrum of support, incentives, resources and
accountability to meet California’s housing goals. Some specific elements include:
• Planning Support (local and regional planning grants)
• Incentives (Prohousing preference and infill incentive grants)
• Funding Resources
• Accountability (penalties for noncompliant housing plans)
• Reform (collaborative processes to reform regional housing needs)
The Local Government Planning Support Grants Program provides one-time grant
funding to regions and jurisdictions for technical assistance, preparation and
adoption of planning documents, and process improvements. The over-arching
goals of the Program are to (1) accelerate housing production; and (2) facilitate
compliance to implement the sixth cycle of the regional housing need assessment
(RHNA).
IV. Program Timeline
Grants will be available to eligible applicants on a noncompetitive, Over-the-
Counter (OTC) basis. Applications will be accepted from the date of the release of
this NOFA and up until July 1, 2020. See Table 1 below for the anticipated
timeline for awards for the OTC period.
Event Date
NOFA Release January 27, 2020
NOFA Application Webinar February 14, 2020
NOFA Application Workshops February and March 2020
Final Due Date for OTC Applications July 1, 2020
Technical Assistance February 2020 through
December 31, 2023
Expenditure Deadline December 31, 2023
CA HCD Notice of Funding Availability 3 Local Early Action Planning Grants 2020
The Department will review applications within 30 days and target award of
applications within 60 days, with subsequent Standard Agreements processed
within 60 days of award. Applicants are encouraged to submit early in the
application window.
The Department will hold workshops and a webinar to review the LEAP NOFA
and application and will be conducting technical assistance to aid applicants
throughout the OTC period and implementation of the grant. For a list of dates,
times, and locations for the workshops as well as information on technical
assistance, please visit the Department’s website at
https://www.hcd.ca.gov/grants-funding/active-funding/leap.shtml.
V. Award Amounts
This Program will make $119,040,000 dollars available to jurisdictions for Program
implementation, including state operations and expenditures, and technical
assistance. Maximum award amounts are based on population estimates as of
January 1, 2019.1 The minimum award amount is $25,000. The maximum amount
that a jurisdiction may receive pursuant to this subdivision shall be as follows:
Jurisdiction Size (in population) Maximum Award
Amount
750,000 or greater $1,500,000
300,000 to 749,999 $750,000
100,000 to 299,999 $500,000
60,000 to 99,999 $300,000
20,000 to 59,999 $150,000
Less than 20,000 $65,000
Applicants seeking partnerships with other local governments will be additive. For
example, two jurisdictions between 100,000 and 299,999 people could submit a
proposal for up to $1.0 million.
VI. Eligible Applicants
Eligible applicants are limited to local governments, i.e., cities and counties.
However, local governments may partner through legally binding agreements with
other forms of governments or entities where the proposal will have a direct effect
1 Population estimates, posted as of January 1, 2019, are based on the Department of Finance E-1 report. Official
maximum amounts per jurisdiction can be found at the Department’s website at https://www.hcd.ca.gov/grants-
funding/active-funding/leap.shtml.
CA HCD Notice of Funding Availability 4 Local Early Action Planning Grants 2020
on land-use or development within the participating localities. This includes, but is
not limited to, partnerships with other localities, regional governments, housing
authorities, school districts, special districts, community-based organizations, or
any duly constituted governing body of an Indian Reservation or Rancheria.
Applicants forming partnerships, must submit separate, completed and signed
application packages, including resolutions and a copy of the signed agreement
between partners to the Department in order to be awarded funds.
VII. Eligible Activities
Eligible activities must demonstrate an increase in housing related planning
activities and facilitate accelerated housing production. Eligible activities may be
part of a larger planning effort (e.g., a comprehensive zoning code update) if
proposed activities have not been completed prior to the NOFA date, are distinct,
and demonstrate a nexus to accelerating housing production. Eligible activities
are not necessarily jurisdiction-wide and may include a smaller geography with a
significant impact on housing production. For example, eligible activities may
include a housing development-related project with a significant community level
impact, or planning or process improvement for a project with an ongoing
community impact beyond the project. Eligible activities may include a variety of
planning documents and processes, including, but not limited to, the following as
set forth in Health and Safety Code section 50515.03(c):
1. Rezoning and encouraging development by updating planning documents
and zoning ordinances, such as General Plans, community plans, specific
plans, implementation of sustainable communities’ strategies, and local
coastal programs;
2. Completing environmental clearance to eliminate the need for project-
specific review;
3. Establishing housing incentive zones or other area-based housing
incentives beyond State Density Bonus Law such as a workforce housing
opportunity zone pursuant to Article 10.10 (commencing with Section
65620) of Chapter 3 of Division 1 of Title 7 of the Government Code, or a
housing sustainability district pursuant to Chapter 11 (commencing with
Section 66200) of Division 1 of Title 7 of the Government Code;
4. Performing infrastructure planning, including for sewers, water systems,
transit, roads, or other public facilities necessary to support new housing
and new residents;
5. Planning documents to promote development of publicly-owned land, such
as partnering with other local entities to identify and prepare excess or
surplus property for residential development;
6. Revamping local planning processes to speed up housing production;
7. Developing or improving an accessory dwelling unit ordinance in
compliance with Section 65852.2 of the Government Code;
8. Planning documents for a smaller geography (less than jurisdiction-wide)
with a significant impact on housing production, including an overlay district,
project level specific plan, or development standards modifications
proposed for significant areas of a locality, such as corridors, downtown or
priority growth areas;
CA HCD Notice of Funding Availability 5 Local Early Action Planning Grants 2020
9. Rezoning to meet requirements pursuant to Gov. Code Section 65583(c)(1),
and other rezoning efforts to comply with Housing Element requirements,
including Gov. Code Section 65583.2(c) (AB 1397, Statutes of 2018);
10. Upzoning or other implementation measures to intensify land use patterns in
strategic locations, such as close proximity to transit, jobs or other
amenities;
11. Rezoning for multifamily housing in high resource areas (according to Tax
Credit Allocation Committee/Housing Community Development Opportunity
Area Maps);
12. Establishing pre-approved architectural and site plans;
13. Preparing and adopting Housing Elements of the General Plan that include
an implementation component to facilitate compliance with the sixth cycle
RHNA;
14. Adopting planning documents to coordinate with suballocations under
Regional Early Action Planning Grants (REAP) pursuant to Health and
Safety Code Section 50515.02(f) that accommodate the development of
housing and infrastructure, and accelerate housing production in a way that
aligns with state planning priorities, housing, transportation equity and
climate goals, including hazard mitigation or climate adaptation;
15. Zoning for by-right supportive housing, pursuant to Gov. Code section
65651 (Chapter 753, Statutes of 2018);
16. Zoning incentives for housing for persons with special needs, including
persons with developmental disabilities;
17. Planning documents related to carrying out a local or regional housing trust
fund;
18. Environmental hazard assessments; data collection on permit tracking;
feasibility studies, site analysis, or other background studies that are
ancillary (e.g., less than 15 percent of the total grant amount) and part of a
proposed activity with a nexus to accelerating housing production; and
19. Other planning documents or process improvements that demonstrate an
increase in housing related planning activities and facilitate accelerating
housing production; and
20. Establishing Prohousing Policies, as follows:
Prohousing Policies
The Department encourages applicants to consider LEAP funds to facilitate
designation as a Prohousing jurisdiction.
The 2019-20 Budget Act requires the Department to develop the
Prohousing designation emergency regulations by no later than July 1,
2021. This program will allow the Department to designate jurisdictions as
“Prohousing,” when they demonstrate policies and strategies to accelerate
housing production. In turn, Prohousing jurisdictions will be awarded
additional points or preference in programs such as the Affordable Housing
and Sustainable Communities (AHSC), Transformative Climate
Communities (TCC), Infill Infrastructure Grant (IIG) programs and other
state funding programs. The Department anticipates developing emergency
regulations and Prohousing designations prior to July 1, 2021, and will seek
to designate jurisdictions prior to future rounds of AHSC, TCC and IIG
CA HCD Notice of Funding Availability 6 Local Early Action Planning Grants 2020
programs.
Pursuant to Gov. Code Section 65589.9(f)(2), “Prohousing” policies mean
policies that facilitate the planning, approval, or construction of housing.
These policies may include, but are not limited to, the following:
A. Planning for local financial incentives for housing, including, but not
limited to, establishing a local housing trust fund;
B. Reducing parking requirements for sites that are zoned for residential
development;
C. Adoption of zoning allowing for use by right for residential and mixed-
use development;
D. Zoning more sites for residential development or zoning sites at
higher densities than is required to accommodate the minimum
existing RHNA for the current Housing Element cycle;
E. Adoption of accessory dwelling unit ordinances or other mechanisms
that reduce barriers for property owners to create accessory dwelling
units beyond the requirements outlined in Section 65852.2, as
determined by the Department;
F. Process improvements that reduce permit processing time;
G. Creating of objective development standards;
H. Studies and implementing actions that reduce development impact
fees; and
I. Establishing a Workforce Housing Opportunity Zone, as defined in
Section 65620, or a housing sustainability district, as defined in
Section 66200.”
VIII. Ineligible Activities
1. Activities unrelated to preparation and adoption of planning documents, and
process improvements to accelerate housing production and facilitate
compliance to implement the sixth cycle of the RHNA;
2. Activities that obstruct or hinder housing production, e.g., moratoriums,
downzoning, planning documents with conditional use permits that
significantly impact supply, cost, approval certainty and timing, planned
development, or other similarly constraining processes; and
3. Project specific planning documents that do not have a significant impact on
accelerating housing production or significant community level or re-
occurring benefit beyond the project.
4. The Department may consider proposals that are combined with larger
proposals that have a positive housing component and the net effect on
accelerating housing production is significant. For example, an applicant
may propose combining an open-space designation, downzoning, or anti-
displacement measures with by-right upzoning that has a significant net
gain in housing capacity.
CA HCD Notice of Funding Availability 7 Local Early Action Planning Grants 2020
IX. Eligible Uses
1. Grant funds may cover the costs of temporary staffing or consultant needs
associated with eligible activities;
2. Grant funds shall be used for the costs of preparing and adopting the proposed
activity;
3. A jurisdiction that receives funds under this Program may use a subcontractor.
The subcontract shall provide for compliance with all the requirements of the
Program. The subcontract shall not relieve the jurisdiction of its responsibilities
under the Program;
4. Eligible expenditures may be incurred and expended for the project(s) subject
to the terms and conditions of the Standard Agreement; and
5. Only approved and eligible costs incurred for work after the NOFA date,
continued past the date of the Standard Agreement, and completed during the
grant term, will be reimbursable.
X. Ineligible Uses
1. Program grant funds may not be used for administrative costs of persons
employed by the grantee for activities not directly related to the preparation and
adoption of the proposed activity;
2. No more than 5 percent of the grant amount may be used for administrative costs
for any proposed use, to be approved by the Department upon disbursement;
and
3. Approved and eligible costs incurred prior to the NOFA date are ineligible.
XI. Application Requirements
Until July 1, 2020, a jurisdiction may request an allocation of funds pursuant to this
section by submitting a complete application to the Department that demonstrates:
1. A budget, including timelines, deliverables, sub-steps and adoption, that
demonstrates funds will be utilized for eligible activities and uses;
2. How proposed activities will increase housing planning and facilitate
accelerating local housing production;
3. Completed or proposed activities consistent with the state or other planning
priorities; and
4. All other required information contained in the Department’s application
Applicants will demonstrate consistency with these requirements utilizing the
forms and manner prescribed in the Department application.
Accelerating Housing Production: Applicants must propose and document plans
or processes that increase housing planning and facilitate accelerating local
housing production. The application must demonstrate a significant positive effect
on accelerating housing production through timing, cost, approval certainty,
entitlement streamlining, feasibility, infrastructure capacity, or impact on housing
CA HCD Notice of Funding Availability 8 Local Early Action Planning Grants 2020
supply and affordability. An application must include an explanation and
documentation of the nexus to accelerating housing production based on a
reasonable and verifiable methodology and must utilize the Department’s form
(see the Department’s application). A verifiable methodology may include a
statement of support from a non-profit or for-profit developer that is active in the
locality.
State and Other Planning Priorities: Consistency with state or other planning
priorities may be demonstrated through proposed activities in the application OR
activities that were completed within the last five years. Applicants must self-
certify utilizing the Department’s form (see Department’s application).
XII. Application Submission Requirements
In order to be eligible for grant funding, an applicant must submit a completed,
signed original application and an electronic copy on CD or USB flash drive.
Applications will be accepted on an OTC basis as of the date of this NOFA
through July 1, 2020. The Department encourages early applications and will
accept applications post-marked by the July 1, 2020 deadline. Applicants may
utilize various carrier services, such as the U.S. Postal Service, UPS, FedEx, or
other carrier services. All applications must be submitted to the Department at
the following address:
California Department of Housing and Community Development
Division of Housing Policy Development
2020 West El Camino Ave, Suite 500
Sacramento, CA 95833
Applications must be on Department forms and cannot be altered or modified by
the applicant. Program applications and forms are available on the Department’s
website located at https://www.hcd.ca.gov/grants-funding/active-
funding/leap.shtml.
XIII. Application Review
1. The Program will not utilize a competitive process to award funds.
2. Funds will be available to eligible applicants on a rolling OTC basis that
begins as of the date of this NOFA and ends July 1, 2020.
3. An application form will be available upon release of the NOFA and will
include forms to demonstrate meeting eligibility requirements such as, among
other forms, a resolution, a proposed budget and timeline table and self-
certified attachments demonstrating a nexus to housing production and
consistency with state planning and other priorities;
4. Applications will first be reviewed for, among other things, completeness,
eligibility requirements, and accuracy;
5. In order to be considered complete, an application must contain requested
CA HCD Notice of Funding Availability 9 Local Early Action Planning Grants 2020
information and supporting documentation where appropriate;
6. All applications must meet the eligibility requirements as specified in this
NOFA;
7. If the application is ineligible, it will not be considered for funding, but may be
amended and resubmitted;
8. The Department may request additional information to complete and approve
the application for funding;
9. Applications recommended for funding are subject to conditions specified by
the Department;
10. Applications will be reviewed within 30 days from the date the Department
receives the application; and
11. All applicants not meeting the eligibility requirements will be informed within
30 days from the date the Department receives the application.
XIV. Award Letter and Standard Agreement
Successful applicants will receive an Award Letter from the Department and will be
awarded funds. Applicants will enter into a state Standard Agreement (Standard
Agreement) for distribution of funds. The Standard Agreement process will specify,
among other things, the amount of funds granted, timeline for expenditure of funds, and
the approved use of funds. Expenditure report dates and other requirements will also be
identified in the Standard Agreement.
XV. Appeals
1. Basis of Appeals:
A. Upon receipt of the Department’s notice deeming an application
incomplete or ineligible, applicants under this NOFA may appeal such
decision(s) to the Department Director.
B. The decision of the Director is final and not subject to further
administrative or judicial review.
C. No applicant shall have the right to appeal a decision of the Department
relating to another applicant’s eligibility, award, denial of award, or any
other related matter.
2. Appeals Process and Deadlines:
A. Process. In order to lodge an appeal, applicants must submit to the
Director by the deadline set forth in subsection (b) below, a written
appeal which states all relevant facts, arguments, and evidence upon
which the appeal is based. No new or additional information will be
accepted. Once the written appeal is submitted to the Director, no further
information or materials is required to be accepted or considered
thereafter. Appeals are to be submitted to the Director at following
address:
CA HCD Notice of Funding Availability 10 Local Early Action Planning Grants 2020
California Department of Housing and Community Development
Division of Housing Policy Development
2020 W. El Camino Avenue, Suite 500
Sacramento, California 95833
EarlyActionPlanning@hcd.ca.gov
The Director will accept appeals delivered through a carrier service such
as the U.S. Postal Service, UPS, Fed-Ex, or other carrier services that
provide date stamp verification of delivery. Deliveries must be received
during the Department’s weekday (non-state holiday) business hours of
9:00 a.m. to 5:00 p.m. Pacific Standard Time. Additionally, emails to the
email address listed above will be accepted if the email time stamp is
prior to the appeal deadline.
B. Filing Deadline. Appeals must be received by the Director no later than
(5) five business days from the date of the Department’s determination.
3. Decision:
Any request to amend the Department’s decision shall be reviewed for
compliance with this NOFA and its application. The Director shall render
his/her decision in writing within fifteen (15) business days of receipt of the
applicant’s written appeal. The decision of the Director shall be the
Department’s final decision, and shall not be appealable to any court or
tribunal.
XVI. Administration
1. Grant Execution and Term
A. The Department will notify the grantee if they have been selected for a
grant award;
B. After the Standard Agreement has been drawn, the grantee will be
provided instructions for signing all required documents. The grantee must
submit all supporting materials and a signed Standard Agreement within
the timeline provided in the instructions, or risk forfeiting the grant award;
C. The grant term begins on the day the Department and the grantee have
fully executed the Standard Agreement. The Department will notify the
grantee and partners when work may proceed under the agreement.
However, eligible activities that are approved by the Department may be
retroactively reimbursed to the date of the NOFA; and
D. The end of the grant term will be determined by the state based on the
availability of grant funds and the administrative requirements for
liquidation.
CA HCD Notice of Funding Availability 11 Local Early Action Planning Grants 2020
2. Payment and Accounting of Grant Funds
A. Grant funds cannot be disbursed until the Standard Agreement has been
fully executed;
B. The grantee will be responsible for compiling and submitting all invoices
and reporting documents. Grantees will submit for reimbursements to the
Department based on actual cost incurred;
C. The grantee must bill the state based on clear deliverables outlined in the
Standard Agreement or budget timeline. Only approved and eligible costs
incurred for work after the NOFA date, continued past the date of the
Standard Agreement, and completed and processed prior to the
expenditure deadline, will be reimbursable. Approved and eligible costs
incurred prior to the NOFA date are ineligible;
D. Work must be completed prior to requesting reimbursement;
E. Grant fund payment will be made on a reimbursement basis; advance
payments are not allowed. The grantee and partners must have adequate
cash flow to pay all grant-related expenses prior to requesting
reimbursement from the Department. Project invoices will be submitted to
the Department by the grantee on a quarterly basis;
F. In unusual circumstances, the Department may consider alternative
arrangements to reimbursement and payment methods based on
documentation demonstrating cost burdens, including the inability to pay
for work;
G. Supporting documentation may include, but is not limited to: receipts,
progress payments, subcontractor invoices, time cards, etc.;
H. Invoices must be accompanied by reporting materials where appropriate.
Invoices without the appropriate reporting materials will not be paid. The
Department may withhold 10 percent of the grant until grant terms have
been fulfilled; and
I. Each recipient of funds under the Program shall expend those funds no
later than December 31, 2023.
3. Accounting Records and Audits
A. The grantee must establish a separate ledger account for receipts and
expenditures of grant funds and maintain expenditure details in
accordance with the budget and timeline. Separate bank accounts are
not required;
B. The grantee shall maintain documentation of its normal procurement
policy and competitive bid process (including the use of sole source
purchasing), and financial records of expenditures incurred during the
course of the project, in accordance with generally accepted accounting
principles;
C. The grantee agrees that the state or designated representative shall have
the right to review and to copy any records and supporting documentation
pertaining to the performance of the Standard Agreement;
D. The grantee agrees to maintain such records for possible audit for a
minimum of three (3) years after final payment, unless a longer period of
records retention is stipulated;
E. Subcontractors employed by the grantee and paid with moneys under the
CA HCD Notice of Funding Availability 12 Local Early Action Planning Grants 2020
terms of this Standard Agreement shall be responsible for maintaining
accounting records as specified above;
F. At any time during the term of the Standard Agreement, the Department
may perform, or cause to be performed, a financial audit of any and all
phases of the award. At the Department’s request, the awardee shall
provide, at its own expense, a financial audit prepared by a certified
public accountant. The State of California has the right to review project
documents and conduct audits during project implementation and over
the project life;
G. The Department may request additional information, as needed, to meet
other applicable audit requirements; and
H. The Department may monitor expenditures and activities of an applicant,
as the Department deems necessary, to ensure compliance with Program
requirements.
4. Remedies of Nonperformance
A. In the event that it is determined, at the sole discretion of the state, that
the grantee is not meeting the terms and conditions of the Standard
Agreement, immediately upon receiving a written notice from the
Department to stop work, the grantee shall cease all work under the
Standard Agreement. The Department has the sole discretion to
determine that the grantee meets the terms and conditions after a stop
work order, and to deliver a written notice to the grantee to resume work
under the Standard Agreement;
B. Both the grantee and the Department have the right to terminate the
Standard Agreement at any time upon 30 days written notice. The notice
shall specify the reason for early termination and may permit the grantee
or the Department to rectify any deficiency(ies) prior to the early
termination date. The grantee will submit any requested documents to the
Department within 30 days of the early termination notice; and
C. There must be a strong implementation component for the funded activity
through this Program, including, where appropriate, agreement by the
locality to formally adopt the completed planning document. Localities
that do not formally adopt the funded activity could be subject to
repayment of the grant.
D. The Department may, as it deems appropriate or necessary, request the
repayment of funds from an applicant, or pursue any other remedies
available to it by law for failure to comply with Program requirements
(Health and Safety Code section 50515.04(e).
5. Reporting
A. At any time during the term of the Standard Agreement, the Department
may request a performance report that demonstrates satisfaction of all
requirements identified in the Standard Agreement with emphasis on
eligible activities, eligible uses, ineligible uses, and expenditures,
according to timelines and budgets referenced in the Standard
Agreement;
B. Awardees shall submit a report, in the form and manner prescribed by
CA HCD Notice of Funding Availability 13 Local Early Action Planning Grants 2020
the Department, to be made publicly available on its internet website, by
April 1 of the year following the receipt of those funds, and annually
thereafter until those funds are expended, that contains the following
information:
• The status of the proposed uses listed in the entity’s application
for funding and the corresponding impact on housing within the
region or jurisdiction; and
• A summary of building permits, certificates of occupancy, or other
completed entitlements issued by entities within the region, or by
the jurisdiction, as applicable.
C. The awardee must, in lieu of a separate report, provide the above
described information as part of its annual report pursuant to Gov. Code
Section 65400;
D. The Department may request additional information, as needed, to meet
other applicable reporting requirements;
E. Upon completion of all deliverables within the Standard Agreement, the
awardee shall submit a close out report. See Attachment 1; and
F. The Department shall maintain records of the following and provide that
information publicly on its internet website:
• The name of each applicant for Program funds and the status of
that entity’s application;
• The number of applications for Program funding received by the
Department; and
• The information described in 5(B) above for each recipient of
Program funds.
XVII. Right to Modify or Suspend the NOFA, and Final Decision-making
The Department reserves the right, at is sole discretion, to suspend, amend, or
modify the provisions of this NOFA at any time, including, without limitation, the
amount of funds available hereunder. If such an action occurs, the Department
will notify all interested parties and will post the revisions to the Department’s
website. You may subscribe to the Department’s email list here:
http://www.hcd.ca.gov/HCD_SSI/subscribe-form.html.
Further, the Department’s decision to approve or deny an application or request
for funding pursuant to the Program, and its determination of the amount of
funding to be provided, shall be final.
CA HCD Notice of Funding Availability 14 Local Early Action Planning Grants 2020
XVIII. Definitions
All terms not defined below shall, unless their context suggests otherwise, be
interpreted in accordance with the meanings of terms described in Health and
Safety Code section 50470.
A. “Accelerating Housing Production” means improving the timing, cost,
feasibility, approval and amount of development through various mechanisms
such as zoning incentives (e.g., increased density and heights, reduced
parking requirements), upzoning, zoning amendments to permit residential in
non-residential zones, corridor planning, development standards
modifications, non-discretionary review, financing strategies, sliding scale fee
modifications, facilitating adequate infrastructure to support development,
approval streamlining that addresses quickness and ease of entitlements,
and other mechanisms that promote production or remove or mitigate
regulatory barriers.
B. “Affordability” means a housing unit that satisfies at least one of the following
criteria:
1. It is available at an “affordable rent” as that term is used and defined in
Section 50053 of the Health & Safety Code;
2. It is offered at an “affordable housing cost”, as that term is used and defined
in Section 50052.5 of the Health & Safety Code; or
3. It is available at an “affordable rent” or an “affordable housing cost”
according to the alternative percentages of income for agency-assisted
rental and cooperative housing developments pursuant to Department
regulations adopted under Health and Safety Code section 50462(f).
C. “Annual Progress Report” (APR) means the annual report required to be
submitted to the Department pursuant to paragraph (2) of subdivision (a) of
Section 65400 of the Government Code.
D. “Completed entitlement” means a housing development project that has
received all the required land use approvals or entitlements necessary for the
issuance of a building permit and for which no additional action, including
environmental review or appeals, is required to be eligible to apply for and
obtain a building permit.
E. “Council of governments” means a single or multicounty council created by a
joint powers agreement pursuant to Chapter 5 (commencing with Section
6500) of Division 7 of Title 1 of the Government Code that is responsible for
allocating regional housing need pursuant to Sections 65584, 65584.04, and
65584.05 of the Government Code.
F. “Department” means the California Department of Housing and Community
Development.
CA HCD Notice of Funding Availability 15 Local Early Action Planning Grants 2020
G. “Housing” means any development that satisfies both of the following criteria:
1. At least two-thirds of the square footage of the development must be
designated for residential use; and
2. Includes a house, an apartment, a mobile home or trailer, a group of
rooms, or a single room that is occupied as separate living quarters,
or, if vacant, is intended for occupancy as separate living quarters.
Separate living quarters are those in which the occupants live
separately from any other individuals in the building, and which have a
direct access from the outside of the building, or through a common
hall.
Note: accessory dwelling units (ADU) and junior accessory dwelling units
(JADU) pursuant to Gov. Code sections 65852.2 and 65852.22 meet the
definition above.
H. “Housing Element” or “element” means the Housing Element of a
community’s General Plan, as required pursuant to subdivision (c) of Section
65302 of the Government Code and prepared in accordance with Article 10.6
(commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Government Code.
I. “Jurisdiction” means any city, including a charter city, county, including a
charter county or city and county, including a charter city and county.
J. “Local government” or “Locality” means any city, including a charter city,
county, including a charter county or city and county, including a charter city
and county.
K. “Objective zoning standard”, “objective subdivision standard”, and “objective
design review standard” means standards that involve no personal or
subjective judgment by a public official, and are uniformly verifiable by
reference to an external and uniform benchmark or criterion available, and
knowable by both the development applicant or proponent and the public
official prior to submittal. “Objective design review standards” means only
objective design standards published and adopted by ordinance or resolution
by a local jurisdiction before submission of a development application, which
are broadly applicable to development within the jurisdiction.
L. “Other Planning Priorities” means planning, policies, programs or investments
to promote housing choices and affordability to lower and moderate income
households, the encouragement of conservation of the existing affordable
housing stock, and efforts to take into account current and future impacts of
climate change, including hazard mitigation.
M. “Regional housing need assessment” means the existing and projected need
for housing for each region, as determined by the Department pursuant to
Section 65584.01 of the Government Code.
CA HCD Notice of Funding Availability 16 Local Early Action Planning Grants 2020
N. “State Planning Priorities” means priorities which are intended to promote
equity, strengthen the economy, protect the environment, and promote public
health and safety in the state, including in urban, suburban, and rural
communities pursuant to Gov. Code Section 65041.1.
O. “Streamlined Housing Production” means improving the entitlement process
through actions such as removing, mitigating or minimizing local regulatory
requirements, reforming the local approval process to reduce processing
times, the number of local discretionary approvals and permits needed for
projects, improving approval certainty, establishing non-discretionary
processes, modifying development standards, such as reducing parking
requirements and increasing height limits, or other efforts, such as taking the
fullest advantage of existing streamlining mechanisms provided in state law.
CA HCD Notice of Funding Availability 17 Local Early Action Planning Grants 2020
Attachment 1
Close Out Reporting Form
CA HCD Notice of Funding Availability 18 Local Early Action Planning Grants 2020
LEAP Grant Close Out Reporting Template
Brief Summary
• Overview of the project
• Project start date and duration
• Project goals and relevance to LEAP goals
• Quantified outcomes
Lead Agency and Partnerships
• List lead agency and partnerships (including names, titles, organizations, and
roles and responsibilities of each)
• What did those collaborative relationships and processes look like?
Drivers
• Did any local, state, or federal legislation or mandates drive the project? (SB 35,
AB 1397, etc.)
• Was it a community driven effort?
• Were there additional funding opportunities present?
Engagement Process
• Who were your stakeholders?
• What did the engagement process look like?
• What role did stakeholders play in the process? (Keep in mind: training,
education, council formation, technical assistance, etc.)
• What were the outcomes of the engagement process?
Challenges
• What challenges were encountered?
• What solutions were encountered or created?
• Are there areas for improvement of policy alignment at the state or federal level
to help achieve this project more easily?
CA HCD Notice of Funding Availability 19 Local Early Action Planning Grants 2020
LEAP Grant Close Out Reporting Template
Outcomes
• What are the current or projected outcomes? Benefits?
• Were outcomes as anticipated?
• Have new opportunities arisen as a result of this project?
• What are the next steps?
Replicability
• What aspects of the project could be replicated in other communities?
• Useful resources and tools? For a specific region or sector?
Additional Resources
• Links to the project itself
• Links to resources used throughout and any other relevant resources
Further Information
• Who can be reached to ask more questions about this project?
• Name
• Number and/or email