SR 02-28-2023 5F
City Council
Report
City Council Meeting: February 28, 2023
Agenda Item: 5.F
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To: Mayor and City Council
From: David Martin, Director, City Planning
Subject: Adoption of Resolutions Authorizing the City Manager to Submit Applications
to Participate in the California Department of Housing and Community
Development's Prohousing Designation Program and a Prohousing
Incencentive Program (PIP) Grant in the Amount of $500,000
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section
15061(b)(3) (Common Sense Exemption) of the California Environmental Quality
Act (CEQA) Guidelines and find that uses of grant funding for affordable housing
are consistent with the certified 6th Cycle Housing Element Environmental Impact
Report.
2. Adopt the attached resolution authorizing the City Manager to submit an
application to participate in the California Department of Housing and Community
Development’s Prohousing Designation Program;
3. Adopt the attached resolution authorizing the City manager to submit an
application for grant funds in the amount of $500,000 from the California
Department of Housing and Community Development’s Prohousing Incentive
Program (PIP) for planning and implementation activities related to housing and
community development, to support implementation of the certified Housing
Element;
4. Authorize the City Manager to execute all necessary documents to apply for the
grant, accept the grant, if awarded, and accept all grant renewals and
modifications, if awarded; and
5. Authorize budget changes as outlined in the Financial Impacts and Budget
Actions section of this report, in the event the grant is awarded.
Summary
Staff seeks authorization to apply for and participate in the State of California’s Housing
and Community Development (HCD) Prohousing Designation Program and to apply for
grant funding through HCD’s Prohousing Incentive Pilot (PIP) Program. The Prohousing
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Designation program creates incentives for jurisdictions that are compliant with Housing
Element requirements and that have enacted Prohousing Policies. These incentives
include additional points or other preference in the scoring of applications for
competitive housing and infrastructure programs.
Discussion
On October 14, 2022, HCD certified the City’s 6th Cycle 2021-2029 Housing Element. A
key focus of the certified Housing Element is housing production, with substantial
emphasis on affordable housing production, to meet Santa Monica’s Regional Housing
Needs Allocation (RHNA) as mandated by Government Code Section 65584.05.
The City’s 6th Cycle RHNA for the next 8 years is 8,895 units, of which 69% are to be
affordable units.
Income
Category
RHNA Target
(# units)
% of
RHNA
Very Low 2,794 31%
Low 1,672 19%
Moderate 1,702 19%
Above Moderate 2,727 31%
Total 8,895 100%
The certified 6th Cycle Housing Element is a State-mandated plan for meeting the City’s
share of regional housing needs. State law requires that the Housing Element include
an inventory of land that demonstrates the City’s capacity to realistically accommodate
its RHNA of 8,895 units, of which 69% must be affordable to lower income households.
Government Code section 65589.9 established HCD’s Prohousing Designation
Program, which provides incentives to cities and counties in the form of additional points
or other preference in the scoring of competitive housing, community development, and
infrastructure programs. The Prohousing Incentive Pilot (PIP) Program is a state
investment from the Building Homes and Jobs Trust Fund, established by Chapter 364,
Statutes of 2017 (SB 2, Atkins) to create and conserve affordable housing. The PIP
program provides awards for eligible jurisdictions to use towards planning and
implementation activities related to housing and community development. Award
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amounts are based on population estimates. With a population of approximately 93,000,
the City is eligible for $500,000 in award funding.
The PIP program awards funds to encourage cities and counties to obtain Prohousing
Designation. This round of program funding provides awards for eligible jurisdictions to
use towards planning and implementation activities related to housing and community
development. To support implementation of the certified Housing Element, grant funds
would be used in the category of predevelopment, development, acquisition,
rehabilitation, and preservation of 100% affordable housing on City-owned sites.
With a limited amount of vacant land in Santa Monica, and amid rising construction
costs, the City in recent years has explored the potential for City-owned sites to help
meet its affordable housing needs. Program 2.E of the certified Housing Element
commits City-owned sites for the production of 100% affordable housing, with
consideration of other community-serving purposes, including, but not limited, to green
space, place making, and/ or community-serving commercial and revenue generating
uses. Under Program 2.E, the City has committed to plan for a minimum of 1,880
affordable housing units across available City-owned sites located throughout the city.
Application of this one-time PIP program grant would occur concurrently with application
of the Prohousing Designation program for the City. Grant funding would be used
towards predevelopment, development, acquisition, rehabilitation, and preservation of
100% affordable housing on City-owned sites, in support of the Program 2.E and other
related programs in the Housing Element.
Environmental Review
Application to and participation in the Prohousing Designation Program, and application
and acceptance of the Prohousing Implementation Program grant is exempt from the
California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common
Sense Exemption) in that participation in the programs and acceptance the grant would
have no possibility of significant effects. Furthermore, the proposed uses of grant
funding for affordable housing are consistent with the goals, programs and policies set
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forth in the adopted and certified 6th Cycle Housing Element EIR, including Program
2.E which commits the City to the production of affordable housing on publicly owned
land.
Past Council Actions
Meeting Date Description
10/14/22 City Council adopts the 6th Cycle 2021-2029 Housing
Element
Financial Impacts and Budget Actions
Staff seeks authority to apply for a grant from the Department of Housing and
Community Development’s Prohousing Incentive Program (PIP). If awarded, staff
recommends the following budget changes. If renewals are awarded, budget changes
will be included in subsequent year budgets, contingent on Council budget approval.
FY 2022-23 Grant Budget Changes
Establish Revenue Budget Appropriate Funds
Account Number(s) Amount Account Number(s) Amount
20700002.4XXXXX 500,000 20700002.5XXXXX 500,000
Total 500,000 Total 500,000
Prepared By: Rachel Kwok, Environmental Planner
Approved
Forwarded to Council
Attachments:
A. Council Resolution Prohousing Designation
B. CCD - Reso - Application for Prohousing Incentive Pilot - 021423
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City Council Meeting: February 28, 2023 Santa Monica, California
RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AUTHORIZING THE CITY MANAGER TO SUBMIT AN APPLICATION FOR AND
PARTICIPATION IN THE CALIFORNIA DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT PROHOUSING DESIGNATION PROGRAM
WHEREAS, Government Code section 65589.9 established the Prohousing
Designation Program (“PDP” or “Program”), which creates incentives for jurisdictions that
are compliant with state housing element requirements and that have enacted Prohousing
local policies; and
WHEREAS, such jurisdictions will be designated Prohousing, and, as such, will
receive additional points or other preference during the scoring of their competitive
applications for specified housing and infrastructure funding; and
WHEREAS, the Department of Housing and Community Development
(“Department”) has adopted emergency regulations (Cal. Code Regs., tit. 25, § 6600 et
seq.) to implement the Program (“Program Regulations”), as authorized by Government
Code section 65589.9, subdivision (d); and
WHEREAS, the City of Santa Monica (“Applicant”) desires to submit an application
for a Prohousing Designation (“Application”).
5.F.a
Packet Pg. 211 Attachment: Council Resolution Prohousing Designation [Revision 5] (5588 : Apply for Prohousing Incencentive Program grant for $500,000)
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Manager, or designee, is hereby authorized and directed to
submit an Application to the Department.
SECTION 2. The City acknowledges and confirms that it is currently in compliance
with applicable state housing law.
SECTION 3. The City acknowledges and confirms that it will continue to comply
with applicable housing laws and to refrain from enacting laws, developing policies, or
taking other local governmental actions that may or do inhibit or constrain housing
production. Examples of such local laws, policies, and action include moratoriums on
development; local voter approval requirements related to housing production;
downzoning; and unduly restrictive or onerous zoning regulations, development
standards, or permit procedures.
SECTION 4. The City further acknowledges and confirms that it commits itself to
affirmatively furthering fair housing pursuant to Government Code section 8899.50.
SECTION 5. If the Application is approved, the City Manager is hereby authorized
and directed to enter into, execute, and deliver all documents required or deemed
necessary or appropriate to participate in the Program, and all amendments thereto (the
“Program Documents”).
SECTION 6. The City acknowledges and agrees that it shall be subject to the
Application; the terms and conditions specified in the Program Documents; the Program
Regulations; and any and all other applicable law.
5.F.a
Packet Pg. 212 Attachment: Council Resolution Prohousing Designation [Revision 5] (5588 : Apply for Prohousing Incencentive Program grant for $500,000)
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SECTION 7. The City Manager is authorized to execute and deliver the
Application and the Program Documents on behalf of the Applicant for participation in the
Program
SECTION 8. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
DOUGLAS SLOAN
City Attorney
5.F.a
Packet Pg. 213 Attachment: Council Resolution Prohousing Designation [Revision 5] (5588 : Apply for Prohousing Incencentive Program grant for $500,000)
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City Council Meeting: February 28, 2023 Santa Monica, California
RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AUTHORIZING THE CITY MANAGER TO SUBMIT AN APPLICATION FOR AND
ACCEPT RECEIPT OF PROHOUSING INCENTIVE PILOT PROGRAM FUNDS
WHEREAS, pursuant to Health and Safety Code 50470 et seq., the California
Department of Housing and Community Development (“Department”) is authorized to
issue Guidelines as part of an incentive program (hereinafter referred to by the
Department as the Prohousing Incentive Pilot Program or “PIP”); and
WHEREAS, the City Council of the City of Santa Monica desires to submit a PIP
grant application package (“Application”), on the forms provided by the Department, for
approval of grant funding for eligible activities toward planning and implementation
activities related to housing and community development as a result of meeting eligibility
criteria, including, but not limited to, Prohousing Designation; and
WHEREAS, the Department has issued Guidelines and Application on December
15, 2022, in the amount of Twenty-Five Million, Seven Hundred Five Thousand, Five
Hundred Forty-Five Dollars and Sixty-Five Cents ($25,705,545.65) for PIP.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Manager, or designee, is hereby authorized and directed to
submit an Application to the Department in response to the Notice of Funding Availability,
and to apply for the PIP grant funds in a total amount not to exceed $500,000.
5.F.b
Packet Pg. 214 Attachment: CCD - Reso - Application for Prohousing Incentive Pilot - 021423 [Revision 2] (5588 : Apply for Prohousing Incencentive Program
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SECTION 2. In connection with the PIP grant, if the Application is approved by the
Department, the City Manager of the City of Santa Monica, or designee, is authorized
and directed to enter into, execute, and deliver on behalf of the City, as the Applicant, a
State of California Agreement (“Standard Agreement”) for the amount of Five Hundred
Thousand Dollars ($500,000), and any and all other documents required or deemed
necessary or appropriate to evidence and secure the PIP grant, the City’s obligations
related thereto, and all amendments thereto.
SECTION 3. The City, as the Applicant, shall be subject to the terms and
conditions as specified in the Guidelines, and the Standard Agreement provided by the
Department after approval. The Application and any and all accompanying documents
are incorporated in full as part of the Standard Agreement. Any and all activities funded,
information provided, and timelines represented in the Application will be enforceable
through the fully executed Standard Agreement. Pursuant to the Guidelines and in
conjunction with the terms of the Standard Agreement, the City hereby agrees to use the
funds for eligible uses and allowable expenditures in the manner presented and
specifically identified in the approved Application.
SECTION 4. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
DOUGLAS SLOAN
City Attorney
5.F.b
Packet Pg. 215 Attachment: CCD - Reso - Application for Prohousing Incentive Pilot - 021423 [Revision 2] (5588 : Apply for Prohousing Incencentive Program