REPORT TO COUNCIL
SUBJECT
Title
Accept Housing Incentive Pool (HIP) Program Grant Funds, Approve Budget Modification No. 12 to Appropriate $836,000 of the HIP Program Funds and $373,507 from the General Fund for the Sunnyvale Avenue at California Avenue Traffic Signal Upgrade Project, Authorize the City Manager to Execute a Grant Agreement and Related Documents, and Find that the Project is Exempt from the California Environmental Quality Act (CEQA) Pursuant to Section 15301 of the CEQA Guidelines
Report
GRANT SUMMARY
The Housing Incentive Pool (HIP) program is a federally funded transportation grant program administered by the Metropolitan Transportation Commission (MTC) that provides funding to jurisdictions demonstrating strong housing production and preservation outcomes. The program was established under the One Bay Area Grant Cycle 2 (OBAG 2) framework to align regional transportation investments with local housing production performance and is administered in accordance with OBAG 2 grant requirements and reporting obligations. The City of Sunnyvale was identified by the MTC as one of the 15 eligible jurisdictions and allocated a total of $1,836,000 in HIP funds.
At its December 3, 2024 meeting, the City Council first adopted Resolution No. 1269-24 (Attachment 1) declaring the City's compliance with applicable State housing laws, including requirements related to surplus lands, accessory dwelling units and density bonus regulations, which is a prerequisite for eligibility to receive HIP funding. At the same meeting, the City Council adopted Resolution No. 1270-24 (Attachment 2) authorizing the filing of Letters of Interest and related grant applications to the MTC for the City's multiple transportation projects, including the Sunnyvale Avenue/California Avenue Traffic Signal Upgrade Project.
Consistent with HIP program requirements, the City submitted multiple project recommendations totaling 200 percent of its total HIP allocation for MTC consideratio...
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