Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Director, Department of Housing
Subject: Resolution Authorizing First Amendment to the Regional Early Action Planning Grants of 2021 (“REAP 2.0”) Agreement
RECOMMENDATION:
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Adopt a resolution authorizing the Department of Housing (“DOH”) Director, or designee(s), to execute a first amendment to the Regional Early Action Planning Grants of 2021 (“REAP 2.0”) agreement with the Association of Bay Area Governments (“ABAG”) to revise the funding suballocated to the County to the amount of $690,000.
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BACKGROUND:
A. REAP 1.0
Pursuant to the State’s 2019-20 Budget Act, Governor Gavin Newsom allocated $250 million for all regions, cities, and counties to facilitate planning activities that accelerate housing production. With a portion of this allocation, the California Department of Housing and Community Department (“HCD”) established the Regional Early Action Planning Grant Program (“REAP 1.0”). REAP 1.0 provided one-time grant funding to regional governments and regional entities for planning and technical assistance activities related to the drafting and submission of Housing Elements.
The Association of Bay Area Governments (“ABAG”) was awarded REAP 1.0 funds from HCD and suballocated this funding to support county-based groups of Bay Area jurisdictions, or “Planning Collaboratives” that share consulting resources and work together to address their Regional Housing Needs Assessment (“RHNA”) planning efforts, including drafting their Housing Elements. The County of San Mateo (“County”) received $807,375 in such REAP 1.0 funds from ABAG to support the County’s Planning Collaborative known as “21 Elements”, which includes all twenty cities and towns in the County and the unincorporated areas of the County.
DOH has selected the consulting firm Community Planning Collaborative (“CPC”) to facilitate 21 Elements. CPC is recognized as an expert in the fields of housing policy, public participation, long-range strategic planning, land use, and affordable housing. CPC was involved in forming 21 Elements and has rendered consulting services to support 21 Elements since its formation. CPC was formerly known as Baird and Driskell Planning. As of December 2023, DOH has fully expended funds from REAP 1.0 on the work of 21 Elements.
B. REAP 2.0
On July 26, 2022, HCD issued a Notice of Funding Availability (“State NOFA”) for Regional Early Action Planning Grants of 2021 (“REAP 2.0”) funds. REAP 2.0 is funded from the State General Fund and builds on the success of the REAP 1.0 program. The funds are explicitly intended to meet multiple objectives - infill development, housing for all incomes, vehicle miles traveled reduction, and affirmatively furthering fair housing in ways that lead to transformative policy outcomes and accelerate the implementation of regional and local plans to achieve these goals. REAP 2.0 provides funds to regional governments to accelerate housing production and facilitate compliance with the 6th cycle of the Housing Element, including the RHNA.
DISCUSSION:
ABAG was awarded REAP 2.0 funds through the State NOFA and received authority to suballocate the funding to support the Planning Collaboratives and their regional housing technical assistance activities. Under REAP 2.0, the County was allocated a $690,000 funding award for the work of 21 Elements. However, because it was unclear whether the State budget would include the full REAP 2.0 funding amount, in January 2024, ABAG limited contract amounts with jurisdictions to only 25% of their original REAP 2.0 award amount. As a result, DOH was only able to receive $172,500 of the County’s REAP 2.0 award and executed an agreement with ABAG for that amount (the “REAP 2.0 Agreement”), a copy of which is submitted with this Board item.
The final State budget fortunately restored all but $40 million of the $600 million REAP 2.0 program, a significantly more limited cut than the $300 million cut proposed in the January draft State budget. On July 26, 2024, ABAG notified jurisdictions to confirm that they were moving forward to amend all REAP 2.0 contracts and restore budgets to 100% of the original REAP 2.0 award amount. A proposed first amendment to the REAP 2.0 Agreement is included with this Board item.
In view of the restored funding, DOH now requests that this Board authorize the Director of DOH, or designee, to execute a first amendment to the REAP 2.0 Agreement with ABAG to revise the amount of funding suballocated to the County to the amount of $690,000.
The County Attorney has reviewed and approved the resolution and proposed first amendment as to form.
PERFORMANCE MEASURES:
1. Ensure that regular meetings, at least monthly, of the 21 Elements Planning Collaborative are planned, promoted, and convened.
Deliverable: Meetings, at least monthly of the Planning Collaborative through March 2026. Meeting notes summarizing each meeting shall be provided to ABAG.
2. Administer the Planning Collaborative by attending regular meetings, sharing technical assistance products, and sharing learning and program information.
Deliverable: Attendance at monthly ABAG meetings. Deliver to ABAG copies of all work products including progress reports.
3. Provide a written Workplan and Budgets for the Planning Collaborative to ABAG.
Deliverable: Provide written Workplans and budgets for the Planning Collaborative to ABAG by outlined milestone dates.
4. Work with Planning Collaborative to create a succession plan that explain what will happen to the Planning Collaborative once REAP 2.0 funding runs out at the end of 2025.
Deliverable: Provide a succession plan to ABAG that includes future funding sources, workplans, and other next steps.
EQUITY IMPACT:
The receipt of $690,000 in REAP 2.0 funds from ABAG will positively impact all jurisdictions in San Mateo County that are working to accelerate housing development and reduce vehicle miles traveled for low-income and moderate-income households. With these funds, Staff will work with jurisdictions to identify communities that lack access to housing opportunity and address any inequity among protected class groups, promote integration and reduce segregation, and transform racially or ethnically concentrated areas of poverty into areas of opportunity. These funds are to be used to affirmatively further fair housing (“AFFH”) or take meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics such as race, sex, and disability.
Staff does not anticipate negative equity impacts associated with the REAP 2.0 funding.
FISCAL IMPACT:
There is no net County cost associated with amending the REAP 2.0 Agreement. The REAP 2.0 funds are State funds that will be received by the County based on quarterly invoicing for covered work for the term ending on December 31, 2025.