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San Joaquin Valley Local Government Planning Support Grants Program

This program provides one-time funding to support planning activities in the San Joaquin Valley, enabling jurisdictions to meet regional housing needs and spur affordable housing production. $250 million was allocated for this program, with $20.3 million available for the San Joaquin Valley. The program will be administered by the Housing and Community Development Department (HCD) of the State of California. The Housing Trailer Bill also includes provisions to revamp the regional housing needs allocation process and impose fines for non-compliance. The San Joaquin Valley Multiagency Working Group will oversee the planning and administration of the program.

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San Joaquin Valley Local Government Planning Support Grants Program

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  1. Local Government Planning Support Grants MPO HOUSING Planning Grant Funds for the San Joaquin Valley

  2. Background • In August 2019, the Governor signed the $1.7 billion housing "trailer bill” as part of the 2019-2020 budget. • The Local Government Planning Support Grants Program was established for the purpose of providing regions and jurisdictions with one-time funding, including grants for planning activities to enable jurisdictions to meet the sixth cycle of the regional housing need assessment, and to spur affordable housing production. • $250,000,000 million was allocated to this program. • $125,000,000 was allocated to Council of Governments (MPOs) • $125,000,000 was allocated to Cities and Counties • An estimated $20.3 million will be available to San Joaquin Valley Council of Governments, which includes an additional allocation from the state legislature for the San Joaquin Valley. • The Local Government Planning Support Grants Program will be Administered by the Housing and Community Development Department (HCD) of the State of California.

  3. RHNA “Revamped” • The Housing Trailer Bill included provisions to revamp the existing regional housing needs allocation process (RHNA) • HCD and OPR will go through a stakeholder process and make recommendations by the end of 2022 • Create a fair, transparent, and objective process • Strategically plan for housing growth according to statewide priorities • Encourage increased development to address housing affordability • Housing Element non-compliance - Some of the biggest news in the Housing Package is that a local agency could be fined for non-compliance up to $10,000 a month, which could grow to $600,000 per month, and finally result in a city’s housing policy being placed in the hands of a receiver (think failing school district) for substantial noncompliance. • Cities can challenge these findings, and the court must consider mitigating factors and good faith efforts of the agency.

  4. San Joaquin Valley Multiagency Working Group • The planning and administration of the Local Government Planning Support Grants Program shall be conducted through the to-be-formed San Joaquin Valley Multiagency Working Group consisting of the: • Fresno Council of Governments • Kern Council of Governments • Kings County Association of Governments • Madera County Transportation Commission • Merced County Association of Governments • San Joaquin Council of Governments • Stanislaus Council of Governments • Tulare County Association of Governments

  5. San Joaquin Valley Multiagency Working Group • The San Joaquin Valley Multiagency Working Group shall consist of the following members: • One County representative from each county. • Two city representatives from each county appointed by the city selection committee for that county. • The city representatives shall include one representative of a larger city within the county, and one representative of a smaller city within the county. • Of the three representatives from each county serving on the multiagency working group, one of the representatives shall also be a member of the governing body of the applicable council of governments representing the county. • The San Joaquin Valley multiagency working group shall be formed by November 30, 2019.

  6. Immediate Next Steps • Form Regional Working Group (by November 30, 2019) • At least one member per county must serve on COG board • The San Joaquin Valley Regional Planning Agencies Policy Council is “hosting” the Regional Working Group as a Standing Committee. • Notify all member cities and counties • Select a COG to be fiscal Agent • Fresno COG has volunteered to be the fiscal agent • Conduct outreach and seek input from San Joaquin Valley housing stakeholders

  7. Application to HCD • Until January 31, 2021, the San Joaquin Valley Multiagency Working Group may request an allocation of funds by submitting an application to HCD that includes the following information: • An allocation budget for the funds. • The amounts retained by the council of governments, regional entity, or county, and any suballocations to jurisdictions. • An explanation of how proposed uses will increase housing planning and facilitate local housing production. • Identification of current best practices at the regional and statewide level that promote sufficient supply of housing affordable to all income levels, and a strategy for increasing adoption of these practices at the regional level, where viable. • An education and outreach strategy to inform local agencies of the need and benefits of taking early action related to the sixth cycle regional needs allocation. • HCD shall approve the initial application within 30 days and award funding.

  8. Regional Priorities and Funding • The region shall establish priorities and use funding to increase housing planning and accelerate housing production, as follows: • Developing an improved methodology for the distribution of the sixth cycle regional housing need assessment. • Suballocating moneys directly and equitably to jurisdictions or other subregional entities in the form of grants, to accelerate housing production in a way that aligns with state planning priorities, housing, transportation, equity, and climate goals. • Providing jurisdictions and other local agencies with technical assistance, planning, temporary staffing or consultant needs associated with updating local planning and zoning documents, expediting application processing, and other actions to accelerate additional housing production. • Covering the costs of administering any programs.

  9. Suballocation Activities • An entity (city of county) that receives a suballocation of funds shall only use that suballocation for housing-related planning activities, including, but not limited to, the following: • Technical assistance in improving housing permitting processes, tracking systems, and planning tools. • Facilitating technical assistance between jurisdictions. • Establishing regional or countywide housing trust funds for affordable housing. • Performing infrastructure planning, including sewers, water systems, transit, roads, or other public facilities necessary to support new housing and new residents. • Performing feasibility studies to determine the most efficient locations to site housing. • Performing feasibility studies for affordable housing projects on surplus properties owned by school districts of county offices of education. • Covering the costs of temporary staffing or consultant needs associated with the activities described above.

  10. Annual Reporting • The Regional Working Group shall submit a report 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. • A summary of building permits, certificates of occupancy, or other completed entitlements issued by entities within the region. • A city or county that receives program funds shall provide the information as part of its annual progress report. • No later than December 31, 2024, each council of governments, other regional entity, or county that receives an allocation of funds shall submit a final report on the use of those funds to the department. The report shall include an evaluation of jurisdiction actions taken in support of the entity’s proposed uses of those funds, as specified in the entity’s application, including which actions had greatest impact on housing production.

  11. Additional Provisions of the Housing Trailer Bill – Prohousing • One of the most powerful parts of the Governor’s bill may be the provision that authorizes HCD to identify communities as “Prohousing.” To earn the “Prohousing” label, a local agency must adopt a combination of policies listed in the accompanying box. Those communities will then get preference in funding programs like Affordable Housing Sustainable Communities, Transformative Climate Communities, and Infill Infrastructure Grants. Other state agencies (e.g., like California State Transportation Agency and California Transportation Commission) are also encouraged to provide priority points. • EXAMPLES OF "PRO-HOUSING" ACTIONS • Have fiscal incentives to encourage housing • Reduced parking for residential sites • Use by right for residential and mixed use • Exceed RHNA requirements • Reduce barriers for ADUs • Reduce permit processing time • Use objective development standards • Reduce impact fees • Create Workforce Housing Opportunity Zones

  12. Additional Provisions of the Housing Trailer Bill – Direct allocations to cities and counties • The Housing Trailer Bill also included an allocation of $125,000,000 million directly to jurisdictions (cities and counties) to conduct housing planning activities. • The maximum amount a jurisdiction may receive under this program is: • $1,500,000 – population greater than 750,000 • $750,000 – population from 300,000 to 749,999 • $500,000 – population from 100,000 to 299,999 • $300,000 - population from 60,000 to 99,999 • $150,000 – population from 20,000 to 59,999 • $65,000 – population less than 19,999 • Applications will be accepted until July 1, 2020. Eligible activities include: • Rezoning, general plans, specific plans • Associated environmental clearance • Establishing workforce opportunity zones • Infrastructure planning • Surplus property identification • Accessory dwelling unit ordinances • Staffing and consultant cost

  13. Questions • Moderator: • Bill Higgins, Executive Director • California Association of Councils of Governments • bhiggins@calcog.org • Panel:

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