Governor Brown signed the 2017 Legislative Housing Package to introduce new regulatory and financial resources to support the development of housing in California. The Package includes funding for new affordable homes; accelerates development to increase housing supply; holds cities and counties accountable for addressing housing needs in their communities; and, creates opportunities for new affordable homes and preserves existing affordable homes.
Included in the 2017 Housing Package is Senate Bill (SB 2), which establishes a permanent source of funding intended to increase the affordable housing stock in California by imposing a fee on recording of real estate documents. 70 percent of the proceeds are directed to local governments in the form of grants.
On March 28, 2019, the State Department of Housing and Community Development (HCD) issued a Notice of Funding Availability (NOFA) for $123 million under the SB 2 Planning Grants Program. The Planning Grants Program provides financial and technical assistance to local governments to update planning documents and land-use ordinances. The Program is intended for the preparation, adoption, and implementation of plans that streamline housing approvals and accelerate housing production. The State has allocated funds based on the size of the local jurisdiction. Carmel is eligible for up to $160,000 in grant funding. Applications are due by November 30, 2019 and must include a Resolution of support from the City Council.
Staff has completed the SB 2 Planning Grants Program Application (Attachment 1, Exhibit A) to fund a feasibility study that will identify barriers to the construction of housing and will inform the City on future policy decisions intended to reduce the identified barriers. Financial barriers, zoning standards (e.g. parking standards, floor area and height limits) and the City's discretionary review process would be evaluated. Specific implementation actions that might result from this study could include Zoning Code amendments to modify development standards and the use of incentive programs to reduce financial barriers. Portions of the grant will also fund zoning code amendments to the City's Accessory Dwelling Unit regulations consistent with recent changes in State legislation.
Additionally, the City intends to study the creation of a Downtown Specific Plan to address conflicts between affordable housing construction and historic preservation. The study would also identify underutilized parcels and their suitability for higher density housing. Modifications to the City's density bonus and bonus density regulations will also be evaluated.
Lastly, the City will undertake the development of a housing program to inventory, monitor and manage existing and future affordable housing units. The program will include an education and outreach component as well as on-line resources for dissemination of information. The full project description can be found on page 6 of the Grant Application (Attachment 1, Exhibit A).
The budget for these projects includes the completion of planning studies and development of implementation measures such as amendments to planning documents and the zoning ordinance. Throughout the process, staff will ensure that any suggested modifications are sensitive to the community character of the village.