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BACKGROUND The State of California Department of Housing and Community Development (HCD) issued a Notice of Funding Availability in November 2016, under its Housing -Related Parks (HRP) Program. The HRP Program provides grant funds to cities and counties for documented housing "starts" (i.e. building permits or certificates of occupancy) of newly constructed, substantially rehabilitated, converted or preserved rental and ownership housing units with affordability restrictions for very low (50% of Area Median Income) and low (80% of Area Median Income) households. Funds awarded may be used for park and recreation facility improvements within the applicant's jurisdiction. The City submitted its HRP Program application in March 2017 for the expansion of the parking lot at Cubby's Dog Park. In this application, City staff, as instructed by the HCD, estimated $187,200 as the amount of funding the City is eligible to receive based on the affordable housing starts in Designated Program Year (DPY) 2016, a period covering January 1, 2010 through December 31, 2016. DISCUSSION In June 2017, the City received formal notification from HCD that its DPY 2016 HRP Program application has been awarded $196,925 of HRP Program funds. In addition to the $187,200 funding estimate City staff initially calculated, HCD awarded the City an extra $9,725 for a "RHNA Bonus". This Regional Housing Needs Allocation (RHNA) bonus award was based on the City's significant progress in permitting the housing needed to meet its overall RHNA. For Kottinger Gardens Phase 1, the City was awarded a $50 bonus for each of the 10 low-income units ($500) and $75 bonus for each of the 123 very low- and extremely -low income units ($9,225). Consequently, HCD contacted the City in October 2017 and HCD is requiring a new City resolution that accurately reflects the final award amount of $196,925. The originally adopted resolution with $187,200 HRP Program funds does not meet HCD's requirements, as the amount stated in the resolution must be exactly the amount of the final award. The resolution is provided by HCD, and HCD prohibits any deviation from its resolution template. HCD has specifically instructed that only the HRP Program funding amount needs to be revised. Sub �Yutted by: Reviewed by: rian Dolan Tina Olson Assistant City Manager Finance Director Attachments: 1. Resolution Ap ro d by: Nelson Fialho City Manager