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HomeMy WebLinkAbout031720-06.6 ADMINISTRATIVE STAFF REPORT 6.6 TO: Mayor and Town Council March 17, 2020 SUBJECT: Resolution No. 19-2020, appropriating $160,000 in reimbursable funding to develop the Permit-Ready Granny Unit Program BACKGROUND In 2017, the California State Legislature passed Senate Bill 2 (SB 2), part of the 15 -bill "housing package" adopted in 2017 aimed at addressing the state' s housing shortage and high housing costs. SB 2 established a permanent source of funding that is derived from a new fee imposed on document recordation associated with property transfers. Half of the first year's revenue was assigned to the State Department of Housing and Community Development (State HCD) to establish the Planning Grants Program (PGP). Danville is eligible for up to $160,000 in PGP grant funds. DISCUSSION In December 2019, Danville submitted its PGP application to develop a Permit-Ready Granny Unit Program that encourages the construction of Accessory Dwelling Units (ADUs) by offering property owners a selection of pre-approved ready-to-construct ADU building plans that meet the State unit size qualifications (≤ 850 SF). The grant would also fund the plan review services necessary to pre-approve these ADU plans as well as the development of an ADU construction guide. In early February 2020, the Town received notification from State HCD that Danville’s application has received preliminary approval with a formal funding award letter forthcoming by mid-March 2020. Consistent with PGP guidelines and affirmed by State HCD, the Town is now able to incur eligible program costs. An appropriation of funds is necessary to pay for upcoming program development costs, which are eligible for reimbursement by the SB 2 Planning Grants Program. PUBLIC CONTACT Posting of the meeting agenda serves as notice to the general public. Appropriating Funds for the 2 March 17, 2020 Permit-Ready Granny Unit Program FISCAL IMPACT There is no impact to the General Fund. The Town expects to receive $160,000 in funding reimbursement from State HCD through the SB 2 Planning Grants Program. RECOMMENDATION Adopt Resolution No. 19-2020, appropriating $160,000 in reimbursable funding to develop the Permit-Ready Granny Unit Program. Prepared and Reviewed by: Tai J. Williams Assistant Town Manager Attachment: Resolution No. 19-2020 RESOLUTION NO. 19-2020 APPROPRIATING $160,000 IN REIMBURSABLE FUNDING TO DEVELOP THE PERMIT-READY GRANNY UNIT PROGRAM WHEREAS, the State of California, Department of Housing and Community Development (State HCD) is authorized to provide up to $123 million under the SB 2 Planning Grants Program from the Building Homes and Jobs Trust Fund for assistance to Counties (as described in Health and Safety Code section 50470 et seq. Chapter 364, Statutes of 2017 (SB 2)) related to the PGP Program; and WHEREAS, State HCD has issued a Notice of Funding Availability (NOFA) dated March 28, 2019, for its Planning Grants Program (PGP); and WHEREAS, the Town of Danville is eligible to receive up to $160,000 in PGP grant funds to accelerate the production of housing; and WHEREAS, the Town of Danville submitted a project application for the PGP program to develop a Permit-Ready Granny Unit Program that encourages the construction of Accessory Dwelling Units (ADUs) by offering property owners a selection of pre- approved ready-to-construct ADU building plans that meet the State unit size qualifications; and WHEREAS, State HCD has notified the Town of Danville that its PGP grant application has received preliminary approval with a formal funding award letter forthcoming by mid-March 2020; and WHEREAS, consistent with PGP guidelines and affirmed by State HCD, the Town is now able to incur eligible program costs to develop the Permit-Ready Granny Unit Program; now, therefore be it RESOLVED, that the Danville Town Council appropriates $160,000 in Building and Planning Special Revenue Funds to pay for upcoming program development costs, which are eligible for reimbursement by the SB 2 Planning Grants Program. DocuSign Envelope ID: 49388A0B-F695-4232-973F-D88D7E29846E PAGE 2 OF RESOLUTION NO. 19-2020 APPROVED by the Danville Town Council at a regular meeting on March 17, 2020 by the following vote: AYES: NOES: ABSTAINED: ABSENT: ______________________________ MAYOR APPROVED AS TO FORM: ATTEST: _______________________________ ______________________________ CITY ATTORNEY CITY CLERK DocuSign Envelope ID: 49388A0B-F695-4232-973F-D88D7E29846E