SB 2 Planning Grants

Background

In 2017, Governor Brown signed a 15-bill housing package aimed at addressing the state’s housing shortage and high housing costs.

Specifically, it included the Building Homes and Jobs Act (SB 2, 2017), which establishes a $75 recording fee on real estate documents to increase the supply of affordable homes in California.

Because the number of real estate transactions recorded in each county will vary from year to year, the revenues collected will fluctuate.

The chart below shows how revenues will be allocated.


Year 1 State-Administered
50% Planning Grants*


*5% for Technical Assistance in coordination with OPR
State-Administered
50% homelessness programs
Year 2 and Beyond Locally Administered
70% Affordable Housing
State-Administered
15% middle-income rental
5% production incentive
10% farmworker housing

Purpose

Provide funding and technical assistance to all local governments in California to help cities and counties prepare, adopt, and implement plans and process improvements that streamline housing approvals and accelerate housing production.

Funding will help cities and counties:

  • Accelerate housing production
  • Streamline the approval of housing development affordable to owner and renter households at all income levels
  • Facilitate housing affordability, particularly for lower- and moderate-income households
  • Promote development consistent with the State Planning Priorities (Government Code Section 65041.1)
  • Ensure geographic equity in the distribution and expenditure of the funds

Technical Assistance

Coming soon.

Application Review and Threshold Requirements

The program will provide grants to cities and counties through a noncompetitive, over-the-counter process, to those localities that can demonstrate that their eligible activity has a nexus to accelerating housing production.

Eligible applicants must meet these requirements:

  1. Have an HCD-compliant housing element.
  2. Have submitted a recent Annual Progress report.
  3. Must demonstrate a nexus to accelerating housing production*.
  4. Must demonstrate that the applicant is consistent with State Planning Priorities (Government Code Section 65041.1) or other planning priorities.

*Applicants proposing activities in priority policy areas are automatically deemed to demonstrate a nexus to accelerating housing production. Details about priority policy areas coming soon.

Eligible Activities

Eligible activies may include:

  • Updates to general plans, community plans, specific plans, local planning related to implementation of sustainable communities strategies, or local coastal plans.
  • Updates to zoning ordinances.
  • Environmental analyses that eliminate the need for project-specific review.
  • Local process improvements that expedite local planning and permitting.

Eligible Applicants

Limited to local governments (cities and counties). Local governments may partner through legally binding agreements with other forms of governments or entities where the proposal will have a direct effect on land use or development within the locality.

Please refer to the guidelines below for more information.

Program Timeline

Technical assistance Beginning early 2019
NOFA release March 2019
Over-the-counter period 8 months from NOFA release date
Awards Beginning summer 2019 and ongoing with potential for supplemental round

Guidelines

Get Funding

Coming March 2019.

Applications are invited through the issuance of a Notice of Funding Availability (NOFA).

Coming summer 2019.

Close Out Reports

Coming soon.