BACKGROUND
Local Early Action Planning (LEAP) Grant Funding
In the 2019-20 Budget Act, Governor Gavin Newsom allocated $250 million for all regions, cities, and counties to accelerate housing production. Using this allocation, HCD established the LEAP Grant Program, with $119 million for cities and counties. 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 Regional Housing Needs Allocation (RHNA).
Background
The RHNA occurs every eight years and is mandated by state housing law. The state quantifies the need for housing within each region and sends this to the local Council of Governments—which is the Sacramento Area Council of Governments (SACOG) for the City of Roseville—and then requires each jurisdiction to demonstrate how those units can be accommodated by sites and programs that encourage development. The state released the SACOG housing allocation in July 2019 and, after working with member jurisdictions to develop a methodology for apportioning those units and going through a public hearing process, the SACOG Board adopted the final Regional Housing Needs Plan (RHNP) on March 19, 2020. The City has until May 31, 2021 to adopt an updated Housing Element demonstrating that we can accommodate our unit allocation, and an additional three years after adoption to implement programs and actions identified in the Housing Element.
The City’s total housing allocation is 12,066 units, of which 6,178 units must be affordable to lower incomes. The City is required to demonstrate it has sufficient vacant land to accommodate these units. Staff completed a draft adequate sites inventory for the Housing Element, and concluded the City has substantial excess capacity to accommodate our share of moderate and above moderate income housing, but has an approximately 2,800-unit shortfall of housing to accommodate lower income levels. The City's Housing Element will be required to include programs and policies which will provide the needed units.
Staff prepared a draft project description for the Housing Element which identifies several lower income housing accommodation strategies which may be considered. These include the development of Specific Plans for several of the City's aging commercial corridors, which is partially funded by an SB 2 Planning Grant award of $310,000; a rezone program to identify select vacant properties which could be rezoned to accommodate high density residential uses; and a by-right multi-family housing program which would allow multi-family projects to bypass the requirement for a Design Review Permit if they comply with objective design standards and at least 20% of units are affordable to lower income households.
The grant application requests funding for both the development of the Housing Element and for the implementation of the programs which will be identified in the Housing Element. Funding under this grant will be awarded after the application deadline of July 1, 2020 and must be expended by December 31, 2023.
Grant Proposal
The grant proposal attached to this Council Communication includes a draft project description, information on how the proposal is tied to the goals of the grant program, and a draft timeline and budget. The budget included in the grant proposal documents how the grant amount can be used, but is not intended to be inflexible. The grant proposal allows the City to secure a funding source for the required development of the City's Housing Element, while staff continue to develop strategies to accommodate the City's lower income housing needs for City Council review and input. Staff anticipates returning to City Council with a Housing Element workshop in summer 2020.