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BACKGROUND HCD has released a Notice of Funding Availability (NOFA) for approximately $123 million in grant funding available to all local governments in California under SB 2's PGP. The PGP program is intended to help local jurisdictions prepare, adopt, and implement plans and process improvements that can streamline housing approvals and accelerate housing production. SB 2 was part of the 15 bill "housing package" adopted by the State in 2017, aimed at addressing the state's housing shortage and high housing costs. Specifically, SB 2 established a permanent source of revenue intended to increase the affordable housing stock in California. PGP grants are funded through 50 percent of the revenues collected during the first calendar year (January through December, 2018). HCD, in conjunction with the Governor's Office of Planning and Research, is also providing technical assistance to localities pursuant to the PGP Guidelines. PGP applications are due by November 30, 2019. Applications must include an executed Resolution (included as Attachment 1) from the City Council authorizing the application for, and receipt of, PGP funds. Medium sized localities such as Pleasanton, defined as those with a population of 60,000 to 200,000 people, are eligible for up to $310,000 in grant funds. As part of the application submittal, each City must propose and document plans or processes that accelerate housing production consistent with the established PGP guidelines. The PGP guidelines established five Priority Policy Areas (PPAs) with applications qualifying in one of these areas automatically deemed to accelerate housing production: 1. Rezoning to permit by-right; 2. Objective design and development standards; 3. Accessory dwelling unit or other low-cost building strategies; 4. Expedited processing; and 5. Housing related infrastructure financing and fee reduction strategies. Staff is proposing to apply for grant funds to utilize projects within two of the established PPAs: #2 Objective design and development standards and #4: Expedited processing. DISCUSSION Staff is applying for a total $310,000 in PGP funds to assist the City in creating objective design and development standards as well as expedite processing by upgrading the City's permit system (Accela) to further streamline the development review process. As noted, the applications are due to HCD by November 2019. Staff will be working to refine the scope of work for both elements prior to submittal of the application, but preliminarily expects them to include the following key elements: Objective Design Standards: Consistent with the requirements of recent and pending legislation (Senate Bill 35, and others), objective design standards are intended to provide a basis for review and approval of residential projects based on objective, measurable, and verifiable design criteria that can ensure that new residential development is attractive, compatible, appropriately scaled, and visually harmonious Page 2 of 3