COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: April 7, 2026
SUBJECT: Adoption of a Resolution Approving a Partnership with People’s Self- Help in Support of an Affordable Housing and Sustainable Communities Grant Application and Authorization to Submit a Partnership Letter
Description:
The City Council will consider adopting a Resolution authorizing the City to partner with People’s Self-Help Housing (PSHH) in support of an Affordable Housing and Sustainable Communities (AHSC) grant application to the California Strategic Growth Council for the Heritage View affordable housing development and associated trans portation improvements.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required
RECOMMENDATION:
1. Adopt a Resolution authorizing the City of Santa Maria to partner with People’s Self-Help Housing in support of an Affordable Housing and Sustainable Communities grant application and authorizing submission of a partnership support letter; and
2. Authorize the City Manager, or designee, to execute and submit a partnership support letter and any related documentation necessary to support the Affordable Housing and Sustainable Communities grant application.
BACKGROUND:
The State of California’s Affordable Housing and Sustainable Communities (AHSC) Program provides funding for projects that integrate affordable housing with transportation improvements that reduce greenhouse gas emissions and vehicle miles traveled.
People’s Self-Help Housing (PSHH) is preparing an AHSC grant application to support the proposed Heritage View affordable housing development in Santa Maria , along with associated transportation investments designed to improve multimodal access to housing, employment centers, schools, and regional destinations.
2 The AHSC program requires local agency support and partnership commitments when transportation improvements are located within the public right -of-way or when transit capital assets will be owned or implemented by a local agency.
To support PSHH’s application, the City of Santa Maria is proposing to partner on several transportation-related improvements that would enhance bicycle, pedestrian, and transit connectivity in the area. The City’s particip ation would be formalized through a partnership letter to the California Strategic Growth Council supporting the AHSC application.
DISCUSSION:
The proposed AHSC application includes several transportation improvements that align with the City’s adopted plans and policies, including the General Plan, Climate Action and Adaptation Plan, and Active Transportation Plan.
Sustainable Transportation Infrastructure
Transit Bus/Coach Procurement – Acquisition of transit vehicles to support a regional transit route connecting Santa Maria and Santa Barbara, improving access to jobs, education, and services while reducing vehicle miles traveled.
These transportation investments are intended to support reduced greenhouse gas emissions, improved access to affordab le housing, and expanded mobility options for residents.
College Drive Class I Bicycle Path – Construction of a separated Class I bicycle path along College Drive from Main Street (SR-166) to Stowell Road. The project will provide a dedicated off-street bicycle facility designed to accommodate users of all ages and abilities and will improve connections between residential neighborhoods, Allan Hancock College, commercial areas along Main Street (SR- 166), and existing regional bicycle facilities. Where feas ible, the project may incorporate landscaping enhancements such as shade trees and pedestrian-scale lighting to improve comfort and safety for users.
Bradley Road and Jones Street Sidewalk Gap Closure – Construction of a continuous ADA-compliant sidewalk along Bradley Road from Cypress Street to Jones Street and along Jones Street where pedestrian facilities currently do not exist. This project will close a critical gap in the City’s pedestrian network and improve safe access between residential neighborho ods, Allan Hancock College, and commercial destinations along Main Street (SR -166). Where feasible, pedestrian-oriented streetscape improvements such as landscaped parkways, drought-tolerant shade trees, and pedestrian -scale lighting may also be incorporated.
If the AHSC application is successful, the City would take subsequent actions necessary to implement the improvements, including entering into required agreements and 3 completing design, environmental review, and construction consistent with AHSC program requirements.
4 Alternative(s)
The City Council may choose not to support the AHSC application. In that case, PSHH would need to pursue the application without the City’s partnership for the transportation improvements, which could reduce the competitiveness of the grant application.
Environmental Review
The proposed action is administrative in nature and does not constitute a project under CEQA pursuant to CEQA Guidelines Section 15378(b)(5). Environmental review for any transportation improvements fu nded through the AHSC program will occur at the time individual projects are designed and implemented.
Fiscal Considerations
Approval of the partnership letter does not obligate the City to expend local funds at this time.
If the AHSC application is successful, grant funding would support design and construction of the transportation improvements and acquisition of transit assets. Any future City commitments related to project implementation, maintenance responsibilities, or grant administration would be brought to the City Council for approval as part of future agreements.
Under AHSC, Sustainable Transportation Improvement components must be placed in service or become operational no later than five years from the date of t he award letter, and transit operation expenditures must be disbursed within 10 years from the date of the award letter. AHSC does not require a separate local share for STI components, though supplemental non -AHSC funding may be necessary where total proj ect costs exceed award limits or include ineligible expenses. Eligible bicycle and pedestrian STI costs may include both the primary transportation facility and publicly accessible supportive amenities or urban greening improvements, such as bicycle parkin g, shelters, benches, street trees, landscaping, and related water -efficiency capital improvements, when included as part of an otherwise eligible STI project.
Impact on the Community
The proposed improvements would provide several community benefits, including:
Improved connectivity between neighborhoods, schools, and regional destinations Improved pedestrian and bicycle safety
Enhanced access to affordable housing and employment centers Expanded multimodal transportation options
Reduced vehicle miles traveled and greenhouse gas emissions
5 Other Agency Review
The AHSC application is being prepared by People’s Self -Help Housing in coordination with the City of Santa Maria and will be submitted to the California Strategic Growth Council for consideration.
ATTACHMENT(S)
A. Resolution
B. Partnership Letter Supporting AHSC Application