City of Gonzales
COMMUNITY DEVELOPMENT DEPARTMENT
ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 4, 2024
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Regional Early Action Planning Grant Amendment
RECOMMENDATION
It is Recommended that the City Council approve Amendment 1 to grant funds and authorize execution of the agreement for Regional Early Action Planning Grant (REAP 2.0 Program).
BACKGROUND
On June 29, 2021, Governor Newsom signed the Budget Act of Fiscal Year 2021-2022 which established the Regional Early Action Planning Grants Program of 2021 (REAP 2.0 or Program) which allocated $600 million in one-time funds to accelerate infill housing development, affirmatively further fair housing, and reduce Vehicle Miles Traveled (VMT).
Purposes of the Grant. In the City’s application through AMBAG, the City of Gonzales described its expected implementation efforts to rezone and upzone core downtown mixed uses and the surrounding single family zoning designations to accommodate the 6th Cycle Regional Housing Needs Assessment (RHNA) for the City of Gonzales Housing Element. The City anticipated preparing an RFP for planning consulting services to evaluate and customize a rezoning proposal to broadly increase zoning densities and allow for the spectrum of housing types and affordability levels over a substantial portion of the City.
Additionally, there will be a need for environmental evaluation of the impacts to fire and police services, schools and daycare systems, healthcare opportunities and other social amenities.
Following a City Council Meeting on September 18, 2023, to consider the matter as described in Resolution 2023-058, the City Manager on October 25, 2024, entered an Agreement with the Association of Monterey Bay Area Governments (AMBAG) to receive a portion of AMBAG’s REAP 2.0 funds according to an allocation method approved by the AMBAG Board. The City was awarded $128,750.
AGENDA
ITEM
6 The award would be drawn down proportionately against activities performed and invoices charged to the effort.
Modification of the State Budget 2024-2025. Leading into the preparation of the Governor’s May 2024 revision for the State of California budget, the ~$600 million REAP 2.0 program was potentially being considered for elimination. After extensive lobbying efforts by many municipalities who had been planning for and programming for the use of the REAP 2.0 funds to further housing efforts, the REAP 2.0 budget was mostly restored to $560 million.
Revised Allotment to the City of Gonzales. The maximum that the City of Gonzales may encumber from the REAP 2.0 program is now $121,153.75, down 5.9% from the initial award of $128,750.
Through HCD, additional consulting services have been provided to the City of Gonzales through Placeworks Inc. to complete the second draft of the 6th Cycle Housing Element for HCD re-submittal.
Placeworks and the Community Development Director have been engaged in zoom consultations, policy considerations and several draft efforts to address HCD’s concerns with the City’s Initial Draft 6th Cycle Housing Element Document.
REVIEW AND ANALYSIS
How close is the City to Certification of the 6th Cycle Housing Element? On Friday, October 25, 2024, the City began another 60-day state HCD review of our second draft 6th Cycle Element. Prior to or up to December 25, 2024, the City will receive our response from HCD and that will be our measure of how close we are to certification. If comments are minimal at that point and HCD certifies the 6th Cycle Housing Element, the City may adopt the housing element with or without changes. City adoption and completion of this process will require public hearings through the Planning Commission and City Council.
Once the 6th Cycle Housing Element is certified by HCD and adopted by the City, the City will then shift to implementation mode and be able to draw upon the REAP 2.0 grant monies for those efforts. The City anticipates preparing an RFP for planning consulting services to customize a rezoning proposal to broadly increase zoning densities and allow for the spectrum of housing types and affordability levels over a substantial portion of the City. REAP 2.0 is mainly attributable to existing City areas (infill development) and is not necessarily attributable to our developer-led efforts in the Sphere of Influence areas.
This report serves to inform the City Council and the public that the maximum that the City of Gonzales may encumber from the REAP 2.0 program is now $121,153.75, down 5.9% from the initial award of $128,750.
Explain the Recommendation and How it Supports the Vision Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: Implementation of the 6th Cycle Housing Element is purposely dedicated to formalizing policies and programs for inclusion of all income groups and housing needs in the community. By increasing housing supply in the manner anticipated in the policies and programs of the 6th Cycle Housing Element, Gonzales will continue to be a safe, clean, family-friendly community.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.
Explain: By utilizing state funding opportunities to assist the City in preparing its 6th Cycle Housing Element through the REAP 2.0 grant program, the City of Gonzales has leveraged limited, but available financial resources necessary to begin implementation of the 6th Cycle Housing Element. Implementation of the Housing Element will enhance the quality of life of our diverse community.
City services will be delivered in a cost-effective, respectful, and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.
Explanation: Please see the Vision and Mission explanations above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes No X N/A
• Housing X Yes No N/A
• Recreation Yes No X N/A
• Environment Yes No X N/A
• Education Yes No X N/A
Explain: Please see the Vision and Mission explanations above.
ALTERNATIVES
The Council could choose not to amend the contract and not receive the funding, which is not recommended.
BUDGET IMPACT
There should be no impact to the budget up to the amount of the REAP 2.0 grant of $121,153.75. As the City recovers a 10% staff administrative services surcharge on consultant contracts, staff anticipates circulating an RFP for what Planning Services we can accomplish with approximately $109,000. Such a contract amount would allow the City to recover our administration of the consultant contract without impact to the budget.
Other Housing Element implementation activities of the Director and Department will need to be absorbed, unless additional financial resources are found or allotted.
CONCLUSION
It is Recommended that the City Council approve Amendment 1 to grant funds and authorize execution of the agreement for Regional Early Action Planning Grant (REAP 2.0 Program).
Attachments:
• Resol No. 23-58 Accepting Grant Funds &Agrmt for Grant 2.0 Program • REAP 2 LSGP MOU AMENDMENT 14H Ext2
Attachments:
1. Resolution No. 23-58 Agrmt for Grant 2.0 Program
2. REAP 2 LSGP MOU AMENDMENT 1 4H Ext2