REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution to Comply with State Housing Laws in Order to Submit a Letter of Interest for the Housing Incentive Pool Funds
Report
BACKGROUND
The Metropolitan Transportation Commission (MTC) is the metropolitan planning organization for the nine-county San Francisco Bay Area region, which includes Santa Clara County. The MTC administers the federally funded Housing Incentive Pool (HIP), which provides transportation grants to promote the production and preservation of affordable housing. Established by MTC in October 2018, the HIP includes $76 million in funding for transportation projects, including $58 million in flexible federal funds through the second round of the One Bay Area Grant (OBAG 2) program and $18 million in local funds available for project selection by MTC through a funding exchange.
On February 26, 2020, MTC revised Resolution No. 4202 (Attachment 3 to this report) to clarify language within the federally funded One Bay Area Grant 2 (OBAG 2) Project Selection Criteria and Programming Policy to reflect the adoption of the HIP program guidelines per MTC Resolution No. 4348.
On December 20, 2023, MTC revised Resolution No. 4348 (Attachment 2) to define the eligibility and programming guidelines for the distribution of $71 million in HIP grant funds remaining after the $5 million sub-HIP set-aside. The grant is on a per-unit basis to the 15 jurisdictions that issued certificates of occupancy for the greatest number of eligible housing units over the five calendar years 2018 through 2022, and Sunnyvale is one of the 15 jurisdictions. The eligible housing units include both newly-built units and those preserved as affordable to households with low-, very-low- and moderate-incomes.
On March 27, 2024, MTC revised MTC Resolution No. 4202 to reflect the final HIP award amounts to the 15 jurisdictions; Sunnyvale’s allocation is $1,836,000. To be eligible for this fund, MTC requires that local jurisdictions, including charter cities, comply with State Housing Laws related to Surplus Lands, Accessory Dwelling Units, and Density Bonus. The City of Sunnyvale currently complies with these laws.
EXISTING POLICY
General Plan, Chapter 3, Land Use and Transportation Element
• Policy LT-1.1 - Participate in coordinated land use and transportation planning in the region.
General Plan, Chapter 5, Housing Element
• Goal HE-1 Adequate Housing - Assist in the provision of adequate housing to meet the diverse needs of Sunnyvale’s households of all income levels.
• Goal HE-4 Adequate Housing Sites - Provide adequate sites for the development of new housing through appropriate land use and zoning and address the diverse needs of Sunnyvale’s residents and workforce.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
DISCUSSION
The attached resolution (Attachment 1) confirms the City of Sunnyvale’s compliance with State Housing Laws related to Surplus Lands, Accessory Dwelling Units, and Density Bonus, which allows the City to receive $1,836,000 in HIP grant for being one of the top 15 jurisdictions in the San Francisco Bay Area to issue the greatest number of eligible housing units over the five calendar years 2018 through 2022.
Separately, the Council will be asked to approve a resolution of support and authorize filing letters of interest for the HIP funding for the following three projects: Poplar Avenue Sidewalk, Sunnyvale Ave/California Ave Signal Upgrade, and Mary Ave/Maude Ave Signal Upgrade (RTC No. 24-1145).
FISCAL IMPACT
None.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Adopt a Resolution to Comply with State Housing Laws in Order to Submit a Letter of Interest for the Housing Incentive Pool Funds
JUSTIFICATION FOR RECOMMENDATION
Adopting a Resolution to Comply with State Housing Laws related to Surplus Lands, Accessory Dwelling Units, and Density Bonus is a requirement for the City to be eligible for the Housing Incentive Pool funds.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $250 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Lillian Tsang, Principal Transportation Planner
Reviewed by: Angela Obeso, Interim Transportation and Traffic Manager
Reviewed by: Chip Taylor, Director, Public Works
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Resolution to Comply with State Housing Laws
2. MTC Resolution No. 4348, Revised
3. MTC Resolution No. 4202, Revised