DATE:
February 7, 2023
TO:
Paul Buddenhagen, City Manager
FROM:
Charles S. Bryant, Community Development Director
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Authorizing The City Manager To Request An Allocation Of $9,250,000 In Higher Impact Transformative Regional Early Action Planning Grant Funds From The California Department Of Housing And Community Development, Execute The Request For Funds, And Enter Into A California Standard Agreement Recommendation
Staff recommends that the City Council adopt the above-entitled resolution authorizing the City Manager to submit an application, execute a request for funds, and enter into an agreement for up to $9,250,000 in grant funding in response to the California Department of Housing and Community Development (HCD) Regional Early Action Planning Grant of 2021 (REAP 2.0) for Higher Impact Transformative (HIT) Allocation program.
Background
HCD, in collaboration with the Office of Planning and Research, the Strategic Growth Council, and the State Air Resources Board, released a Notice of Funding Availability for approximately $30 million for REAP 2.0 HIT allocation funding. HIT is made available as a portion of the overall REAP 2.0 funds and provides funding to Metropolitan Planning Organizations, Councils of Governments, local governments, transit agencies, tribal entities, and other affected entities on a competitive basis to support novel, unique or innovative approaches that are scalable to meet the state’s housing and equity goals, reduce Vehicle Miles Traveled (VMT) per capita, and advance implementation of the region’s Sustainable Communities Strategy (SCS) or Alternative Planning Strategy.
The program goals consist of the following:
Accelerating housing supply, choice and affordability for all income groups, including facilitating Housing Element compliance and implementation towards the Regional Housing Needs Allocation Advancing the State Planning Priority through infill development Affirmatively Furthering Fair Housing by addressing significant disparities in housing needs and access to opportunity and transforming areas of poverty into areas of opportunity Reducing VMT per capita to advance the State’s climate goals and further the region’s SCS eligible uses of funding include technical assistance, administration costs, and at least one or more of the following:
Accelerating infill development that facilitates housing supply, choice, and affordability through various planning and investments Realizing multimodal communities through programs, plans, and implementation actions Shifting travel behavior by reducing driving through programs, ordinances, funds, and other mechanisms, and Increasing transit ridership through funding, implementation actions, and planning All applications submitted must demonstrate how each proposed use meets the following threshold requirements:
Directly benefits and is located in a Disadvantage and Historically Underserved Community (DAC) Improves place-based strategies and encourages community revitalization in DACs Advances all HIT program goals and objectives and provides significant beneficial impact that leads to substantial changes in land use patterns, housing supply and travel behaviors.
Applications were due December 31, 2022 (Emeryville’s was submitted on December 30th) and an authorizing resolution must be submitted no later than February 15, 2023. All applications will be reviewed on a competitive basis. Those selected for a grant award will be required to enter into a Standard Agreement within the timeline provided. Awards per eligible entity are a minimum of $1 million and maximum of $10 million. Funds awarded must be encumbered no later than June 30, 2024 and expended no later than June 30, 2026.
Discussion
The City is seeking $9,250,000 in REAP 2.0 HIT funding to accelerate the development of housing on the seven underutilized and/or vacant sites identified in the 6th Cycle Housing Element along the 40th Street and San Pablo Avenue corridors, and to reduce VMT and shift travel behaviors by investing in the 40th Street Transit-Only Lanes and Multimodal Enhancement Project along 40th Street.
Accelerate Infill Housing Development
With REAP 2.0 HIT funding, the City will address the economic barriers to redevelopment of underutilized properties as mixed-use housing sites, specifically addressing the auto-oriented commercial properties that hold the greatest opportunity for increasing the housing supply. The City seeks to demystify the capital market’s analysis and approach to redevelopment by creating a model that can transparently show the economic incentive required to accelerate the production of housing on these sites. Armed with this knowledge, the City will develop a catalyst fund to provide those incentives. The City is seeking $4,250,000 to support these activities.
Multimodal Project
The 40th Street Transit-Only Lanes and Multimodal Enhancements Project is designed to improve reliability and overall travel times for transit, improve access for people living in Emeryville, provide safer transit/pedestrian/bicycle pathways and connections, and will ensure that the existing, auto-centric public infrastructure around the housing opportunity sites is repositioned to be supportive of the residential development and provide equity in access to jobs and essential services in the broader community. The City is seeking $5,000,000 to support these activities.
Disadvantage and Historically Underserved Community
The California Environmental Protection Agency is responsible for identifying DACs. DACs are low-income areas that are disproportionately affected by environmental pollution and other hazards that can lead to negative health effects, exposure, or environmental degradation. Census Tract 4251.04, which encompasses the East Bay Bridge shopping center area, the Triangle neighborhood, and the San Pablo Avenue corridor neighborhood, is a DAC and is the target area for the City’s housing and multimodal project REAP 2.0 HIT application.
As noted above, HCD requires that an authorizing resolution be submitted by February 15, 2023 in order to consider applications, which were due by December 31, 2022. The attached draft resolution is based on a template developed by HCD for this purpose.
Fiscal Impact
Adoption of the authorizing resolution has no direct fiscal impact. In the event the City’s application for REAP 2.0 HIT is awarded, $9,250,000 will be available for the activities described above and the funds would be incorporated into the City’s operating budget in and the Capital Improvement Program, as applicable, by future action of the City Council.
Staff Communication with the Public
None.
Conflict of Interest
None.
Conclusion
Staff recommends that the City Council adopt the above-entitled resolution authorizing the City Manager to submit an application, execute a request for funds, and enter into an agreement for up to $9,250,000 in grant funding in response to the HCD REAP 2.0 HIT program.
PREPARED BY: Valerie Bernardo, Economic & Community Development Coordinator II REVIEWED BY: Chadrick Smalley, Deputy Director of Community Development
Approved and Forwarded to the
City Council of the City of Emeryville:
Paul Buddenhagen, City Manager
Attachment
Draft Resolution
REAP 2.0 HIT Resolution
City Council Meeting | February 7, 2023
City of Emeryville
CALIFORNIA
MEMORANDUM