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Adopt a resolution approving a competitive application totaling $600,000 to the State of California’s Community Development Block Grant (CDBG) program to conduct two Planning Studies of up to $300,000 each for affordable housing developments in the unincorporated areas of the County benefitting low- and moderate-income residents; and Authorize the Director of Resource Management to submit the CDBG grant application, and if awarded, to execute any agreements and amendments to implement the award
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Published Notice Required? Yes ____ No __X_
Public Hearing Required? Yes ____ No __X_
DEPARTMENTAL RECOMMENDATION:
The Department of Resource Management recommends that the Board of Supervisors:
1. Adopt a resolution approving a competitive application totaling $600,000 to the State of California’s Community Development Block Grant (CDBG) program to conduct two Planning Studies of up to $300,000 each for affordable housing developments in the unincorporated areas of the County benefitting low- and moderate-income residents; and
2. Authorize the Director of Resource Management to submit the CDBG grant application, and if awarded, to execute any agreements and amendments to implement the award.
SUMMARY:
The Department of Resource Management proposes to submit an application to the State of California’s Community Development Block Grant (CDBG) program, funded by the California Department of Housing and Community Development (HCD), totaling $600,000 to conduct two Planning Studies for affordable housing development in unincorporated Solano County, each limited to up to $300,000. Staff held a public meeting on November 26, 2024 to seek public input on the two studies, which will 1) assess the development of pocket neighborhoods/cottage housing; and 2) identify lands of up to 50 acres designated “Agriculture” on the 2008 General Plan Land Use Diagram to be changed to a residential designation for the purpose of siting low- and very-low income housing. The County has utilized State CDBG funds in the past but has not had an active grant in over five years.
FINANCIAL IMPACT:
The costs associated with preparing the agenda item are nominal and absorbed by the Department’s FY2024/25 Working Budget. If awarded, the grant would allow reimbursement of up to $39,252 in general staff administration fees and $560,748 for the development of both Planning Studies. There is no impact to the General Fund.
DISCUSSION:
HCD issued a Notice of Funding Availability (NOFA) for the Community Development Block Grant (CDBG) Program on August 30, 2024. CDBG applications are due December 30, 2024 and funds must be used for activities benefitting households at or below the U.S. Department of Housing and Urban Development (HUD) Low- and Moderate-Income limit which is 80% of Area Median Income (AMI), adjusted for family size (Attachment B). However, most funds are targeted to those at the Very Low- or Extremely Low-Income level.
CDBG Competitive Application
The NOFA for the CDBG grant program limits jurisdictions to apply for two activities, totaling up to $300,000 for each grant. This opportunity is a competitive grant and after receiving community input at the November 26, 2024 pre-application meeting, Solano County has prepared its application to include two Planning Studies of $300,000 each, for a total of $600,000, in support of activities to develop affordable housing in the unincorporated area:
1. Pocket Neighborhood/Cottage Housing Development Feasibility Study ($300,000)
This Planning Study will assess restrictions, requirements, and opportunities to establish the development of pocket neighborhoods/cottage housing developments. These neighborhoods would consist of clusters of 4-12 smaller dwelling units sharing common open space. This housing model is designed to create affordable, community-oriented living environments that can contribute to meeting local housing needs, with the aim of benefiting low and moderate income households. This type of development provides an alternative to conventional tract single family housing and +20-unit apartment buildings. The smaller unit size and potential shared infrastructure create an affordable housing option for renters or homeowners that would prefer something other than a multifamily rental living.
The study will analyze the market for this type of housing product and determine the needs of persons that may be interested, such as agricultural workers or small households. The study will examine the minimum number of housing units required for pocket neighborhoods to be financially viable for developers. Different ownership models will be evaluated, including condominium-style ownership, land trusts, or cooperative housing. The aim is to identify models that enhance affordability while maintaining long-term housing stability for low and moderate-income residents. The study will identify any zoning barriers or density regulations that may conflict with the development of pocket neighborhoods and the infrastructure to support a dense living environment.
2. Affordable Housing Development Site Feasibility Study ($300,000)
Solano County adopted its 6th Cycle of the Regional Housing Needs Allocation (RHNA) in November 2023. RHNA requires the County to generate 315 total housing units by 2031. In concert, the 2008 General Plan agricultural policy (AG.P-33) allows for the conversion of 50 acres per year of agriculturally zoned land to residential zoning providing low and very low income units are created. The study will identify the top priority five (5) 50-acre sites including conducting public outreach, developing a market analysis, and determining capacity of special districts and utility providers. Potential financing models will be analyzed for feasibility such as a community services district (CSD) or enhanced infrastructure financing district (EIFD); and will determine whether there may be other impediments to preparing the site for development to create housing for low-income families.
Public Meeting
Solano County is eligible to submit an application to the State of California’s Community Development Block Grant (CDBG) Program after meeting the public participation requirements prior to application submission. The requirements were to host an evening meeting to gather residents’ ideas for possible activities to be included in the CDBG application. Additionally, the meeting notice had to be posted 10-days prior to the November 26, 2024 meeting date in four unique places which included the County website, Office of Emergency Services Facebook, and all County libraries in both English and Spanish (Attachment C). The Department of Resource Management conducted the meeting and provided a presentation on CDBG eligible activities specific to unincorporated Solano County. Staff collected participant feedback on housing and community development needs that included services, facilities and infrastructure to improve livability within the community. The discussions and comments raised during the public meeting contributed to the development of the proposed application consisting of two Planning Studies to further the County’s efforts in supporting the needs of low- and moderate-income residents through the use of State CDBG funds.
ALTERNATIVES:
The Board may choose not to adopt the resolution authorizing the application and acceptance of the award. This is not recommended since these Planning Studies will support the County’s effort towards achieving the adopted Regional Housing Needs Allocation (RHNA), that requires the County generate 315 total housing units by 2031 and furthers the goals identified within the County’s Housing Element.
OTHER AGENCY INVOLVEMENT:
None.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION