David Mohlenbrok, Community Development Director

Laura Webster, Director of Long Range Planning & Housing

In the 2019-20 Budget Act, Governor Gavin Newsom allocated $250 million for regions, cities and counties to encourage prioritizing planning activities that accelerate housing production. With this allocation, the California Department of Housing and Community Development (HCD) established the Local Early Action Planning (LEAP) Grant Program pursuant to Chapter 3.1 of the California Health and Safety Code (Sections 50515 through 50515.05) (Chapter 159, Statutes of 2019) with $119 million available 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 government agencies prepare for their 6^th cycle Regional Housing Needs Allocation (RHNA).

Based on current population numbers, the City of Rocklin can qualify for up to $300,000 in LEAP Grant Program Funds. The Notice of Funding Availability was released on January 27, 2020. Applications can be submitted anytime through July 1, 2020 and determinations will be made on a rolling basis, within approximately 60 days of application submittal.

For the City of Rocklin, staff has identified several potentially qualifying projects listed briefly below:

Project 1 - 2021-2029 Housing Element Update/Safety Element - Consultant Services ($100,000)

Project 2 - 2021-2029 Housing Element Update/Safety Element - City Staff Costs Associated with Preparation and Processing ($35,000)

Project 3 - Housing Element General Plan Amendments (GPA's) and Rezones (CEQA Technical Studies and Environmental Documents) – Consultant Services ($80,000)

Project 4 - Housing Element GPA's and Rezones (City Staff Costs Associated with Preparation and Processing) ($35,000)

Project 5 - Objective Design Standards for SB 35 Sites (City Staff Costs Associated with Preparation and Processing) ($40,000)

Project 6 - LEAP Grant Administration - Up to 5% of Total Grant Amount - (Requesting 3.3% = $10,000)

The first four projects are items that need to be completed as part of the City’s regular work program. Project 5 – Objective Design Standards, would be a pilot program of sorts leading to the development of non-subjective design standards that could be applied to projects that are subject to SB 35 streamlining mandates. 

In 2017, the California legislature passed a fifteen-bill package to help address what they identified as a housing shortage. SB 35, authored by San Francisco’s State Senator Scott Wiener, was one of the key components of the legislative package at that time. Specifically, SB 35 forces cities which have not met their Regional Housing Needs Allocation (RHNA) construction goals in the Lower Income Category to provide streamlined, ministerial review of qualifying infill housing projects. Without the establishment of Objective Design Standards for those sites, the mandated ministerial review process could require the units be allowed by right without any design related guidance by the City. Creation and application of Objective Design Standards for these sites would give the City some input on design issues within the boundaries of the law. Although staff has not conducted an exhaustive evaluation of where all SB 35 sites may be located, we anticipate that the total number will be relatively small as state criteria for this legislation defines infill very narrowly as sites with existing development on three sides. The law also mandates that projects utilizing SB 35 streamlining provisions be subject to Prevailing Wage, which could be a sizeable deterrent to potential developers. Nonetheless we believe that creation of a quality set of Objective Design Standards is a worthwhile endeavor for the City.

Although staff has recommended that the majority of the funds be applied to projects, we have also suggested that a modest portion be allocated to activities related to administration of the grant as part of the application package.

The total LEAP Grant Funding Request is $300,000. This grant application does not require a financial match. All activities determined to be eligible by the state would be funded initially through the City’s General Fund and then reimbursed by the LEAP Grant Program Funds. 

Two of the more costly items [i.e., Consultant costs associated with the 2021-2029 Housing Element/Safety Element Update ($100,000) and CEQA Technical Studies and document preparation in support of anticipated RHNA ROI General Plan Amendments and Rezones ($80,000)] have already been recommended for funding in the City’s Draft FY 2020-2021 Budget that was recently reviewed by Council during the 5/29/20 City Budget Workshop.  

All remaining tasks would be completed by City staff. If found eligible and approved by the state, the LEAP grant funds would allow the City to be reimbursed for staff costs that would otherwise be paid for from General Fund sources with no reimbursement.