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HomeMy WebLinkAbout _ 4.2(b)--Accept Subaward of REAP 2.0 funds from the Shasta Regional Transportation Agency � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: December 19, 2023 FROM: Steve Bade, Assistant City ITElVI NO. 4.2(b) Manager ***APPROVED BY*** n � t��� ; s' �r ]'�,`1»I�C�?�§ rS' �P�it�,C�i ��t t� 1��'1�,{'2{}?* sbade@cityofredding.org btippin@cityofredding.org SUBJECT: 4.2(b)--Accept REAP 2.0 Funds froin the Shasta Regional Transportation Agency and Authorize the Release of RFP Schedule Number 5423. Recommendation Authorize the following actions relative to the Regional Early Action Planning Program funds from the Shasta Regional Transportation Agency: (1) Authorize the Mayor to execute the Sub-Applicant Agreement for $750,000 and appropriate the funds to assist tivith the development costs of a 12-unit, income- qualifying, mixed-use building on vacant lots located at 815 Parkview Avenue (Assessor's Parcel Number 104-350-019-000), 825 Parkview Avenue (Assessor's Parcel Number 104-350-018-000) and 2520 Leland Avenue (Assessor's Parcel Number 104- 350-020-000); (2) Authorize the City Manager to negotiate a property transfer agreement for the City of Redding's Successor Housing Agency to acguire the property located at 2520 Leland Avenue at no cost; authorize �Iousing Division staff to submit the purchase agreement to the Shasta County Consolidated Oversight Board for consideration and approval; and if approved, authorize the Mayor to execute the required documentation to complete the property transaction; (3) Approve and authorize the release of the Request for Proposals - Schedule Number 5423; and (4) Find that applying for and accepting grant funding is not considered a project under the California Environmental Quality Act. PiscaZ fmpact Regional Early Actian Planning Program funds (REAP 2,0) are grant funds with no match obligation. REAP 2.0 funds will be leveraged along with $800,000 of Who1e Person Care funds approved by City Council(Council) on June 20, 2023 for the development. There is no impact to the General Fund. Report to Redding City Council December 14, 2023 Re: 4.2(b)--Accept Subaward of REAP 2.0 funds from the Shasta Regional Transportation Agency Page 2 Alternative Action The Council could choose not to accept the REAP 2.0 funds, and Housing Division staff would search for replacement funds to assist with funding the proposed development. Background/Analysis On February 1, 2012, the Redding Redevelopment Agency (RRA) was dissolved pursuant to Health and Safety Code Sections 34161-34166 and the Council elected for the City of Redding (City) to serve as the Successor Housing Agency to the former RRA pursuant to Resolution 2012-0007. A11 former RRA housing property assets were transferred to the City — 815 and 825 Parkview Avenue were both former RRA assets. The 2520 Leland Avenue property is a City of Redding as the Successor Agency asset of which the transfer and sale of the property need to be approved by the Oversight Board to the City of Redding as Successor to the Redding Redevelopment Agency. The next Oversight Board meeting is scheduled in January 2024. On June 1, 2021, through Resolution 2021-061, the Council declared the parcels located at 815 and 825 Parkview Avenue, and 2520 Leland Avenue (collectively, the Property) were surplus and pursuant to the Surplus Land Act, they have been cleared for disposition by the California Department of Housing and Community Development(HCD). On February 7, 2023, Council adopted a resolution authorizing staff to apply for REAP 2.0 Higher Impact Transformative (HIT) funds. Tf awarded, the funds were to be utilized to assist in the development of 12 units of income-qualifying housing, which would be situated above retail/commercial space to be located on the Property (Project). A portion of the income- qualifying housing units would be made available to assist unsheltered households. Staff's HIT application was not successful. In a quest to secure funding for the Project, staff applied to the Shasta Regional Transportation Agency(SRTA) for a subaward of their REAP 2.0 fund allocation- staff was successful in securing $750,000 of grant funding from SRTA. To facilitate the development of the Project, staff requests that Council review and approve the attached Request for Proposals - Schedule Number 5423 (IZFP) for publishing. All proposals received will be evaluated and ranked according to the agreed upon criteria contained in the RFP. At a future date, staff wi11 return to Council for consideration of a disposition and development agreement with the successful proposer. Environmental Review Applying for and accepting funding is not considered a project under the California Environmental Quality Act (CEQA). Any project that is developed will be reviewed for CEQA compliance once the details are known. No further environmental review action is required at this time. Report to Redding City Council December 14, 2023 Re: 4.2(b)--Accept Subaward of REAP 2.0 funds from the Shasta Regional Transportation Agency Page 3 Council P�^iority/City Manage� Goals • Government of the 21St Century — `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." • Economic Development-"Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community." Attachments REAP 2.0 Sub-applicant Agreement RFP for Parkview Infill Final REGIONAL EARLY ACTION PROGRAM (REAP 2.0) SUB-APPIICANT AGREEMENT BETWEEN THE SHASTA REGIONAL TRANSPORTATION AGENCY AND CITY OF REDDING This agreement is entered inta between the Shasta Regionai Transportation Agency("SRTA"j and the City of Redding("Sub-recipient")for the purpose of building a mixed-use infill development in the city of Redding, located at Shasta County Assessors Parcels 104-350-018, 104-350-019, and 104-250-020 hereinafter referred to as the Mixed-use Infil) Development in the City of Redding. EXHIBIT A-AUTHORII`Y,PURPOSE.AND SCOPE OF WORK 1. Authoritv The Regional Early Action Planning Grants Program of 2021 is established for the purpose of providing regions with one-time funding, including grants for transformative planning and implementation activities. Up to six hundred million dollars ($600,000,000) shall be distributed statewide under the Program in accordance with Chapter 3.15 of the Health and Safety Code (Statute). Of this amount, approximately 85 percent ($510,000,000) is available to Metropolitan Planning Organizatians (MPOs). The California Department of Housing and Community Development (HCD) shall administer the Regional Early Action Planning Grants Program of 2021 (referred to herein as "Program", or "REAP 2.0") to MPOs and other regional entities in accordance with the Statute and Guidelines, pursuant to Health and Safety Code section SQ515.10(h). A maximum award of$2,243,909.07 in REAP 2.0 program grant funds has been awarded to the Shasta Region, which will be administered by the Shasta Regional Transportation Agency(SRTA).SRTA will use five percent of the funds($112,195.45)for the administration of the program,while the remaining arnount of$2,131,713.62 will be suballocated to HCD- approved projects (Sub-recipients). This Standard Agreement (Agreement) authorizes the encumbrance of the total funds available to the Sub-recipient, subject to all statutory requirements and all applicable provisions, including but not limited to the Guidelines, approved full application, and any subsequent modifications. The Sub-recipient shall consult with the STRA on any amendment, modification or other provision related to the implementation of the Program. The HCD's decisions related to the administration of the Program shall be final pursuant to Health and Safety Code section 50515.10(ij. 1 � P � c� e 2. Puraose in accordance with the authority cited above, the Sub-recipient has been awarded financial assistance in the form of a grant from the Program.SRTA has agreed to make the grant for planning and implementation activities pursuant to the Guidelines and this Agreement. By entering into this Agreement and thereby accepting the award of the Program funds, the Sub-recipient agrees to comply with the terms and conditions of the Guidelines, application, as well as this Agreement, subsequent amendments or modifications to this Agreement and the requirements of the authority cited abave.Based on all representations made by the Sub-recipient, the State shall encumber the full amount pursuant to the Guidelines and subsequent payments in accordance with Exhibit B. Alf terms, conditions and other relevant provisions will be subject to amendments as a result of subsequent applications and awards for remaining funds as described in Exhibit B. 3. Definitians Terms herein shall have the same meaning as defined by the Guidelines and Statute. 4. Scone of Work The Sub-recipient sha11 use the awarded funds in accordance with the approved scope of work as contained in the timeline and budget and related information outlined in the approved application for tota)funding (Attachments A and B). The scope of work may be amended in compliance with Program statutory requirements subject to approva) by SRTA and HCD. 5. Monitorin� A. The Sub-recipient shall maintain books, records, documents, and other evidence that demonstrates the funding was used for the appropriate purposes, as described in the Statute, Guidelines, Scope of Work, approved application, and all other pertinent documents. These books, records, documents, and other evidence shall be available for audit and inspection by SRTA and HCD at any point during the term of the Agreement and subject to any amendments to this Agreement. B. SRTA may request additional information, as needed, to demonstrate statutory compliance, satisfaction of program requirements and necessary amendments to this Agreement, including but not limited to reporting or audit requirements, implementing payment(s), or award amount to the Sub-recipient. 2 � �' a � e C. SRTA may monitor expenditures and activities of the Sub-recipient, as SRTA deems necessary,to ensure compliance with statutory or HCD requirements. D. SRTA may,as it deems appropriate or necessary, request the repayment of funds from a Sub-recipient or pursue any other remedies available to it by law for failure to comply with Program requirements pursuant to Health and Safety Code section 50515.10(g). E. HCD's decision to approve or deny an application or request for funding pursuant to the pragram, and its determination of the amount of funding to be provided,shall be final pursuant to Health and Safety Code section 50515.10(i). F. Monitoring provisions may be amended and are subject to additional provisions in accordance with this Agreement or subsequent amendments. 6. SRTA Contract Coordinator A. The Contract Coordinator of this Agreement for SRTA is the Chief Fiscal Officer, or the Executive Director's designee. Unless otherwise informed, any notice, report, or other communication required by this Agreement shall be submitted under the penalty of perjury by email to srta@srta.ca.gov. 3 � PaJ �� EXHIBIT B-BUDGET DETAIL AND PAYMENT PROVISIONS 1. Application for Funds A. SRTA is entering into this Agreement on the basis of, and in reliance upon, facts, information, assertions and representations contained in any application or award or any subsequent modifications or additions to such thereto approved by SRTA and HCD. All awarded applications for funding and any approved modifications and additions thereto are hereby incorporated into this Agreement. B. The Sub-recipient warrants that all information,facts,assertions and representations contained in any approved application, award or approved modifications and additions thereto are true, correct, and complete to the best of the Sub-recipient's knowledge. In the event that any part of an application and any approved modification and addition thereto is untrue, incorrect, incomplete, or misleading in such a manner that would affect the SRTA or HCD's approval, disbursement, or monitoring of the funding and the grant or activities governed by this Agreement, SRTA may declare a breach hereof and take such action or pursue such remedies as are provided for breach hereof. 2. Grant and Reimbursement limit A. The maximum total amount encumbered to the 5ub-recipient pursuant to this Agreement shall not exceed $750,000. B. This Agreement authorizes subsequent awards up to the total award amount as described in Section 2A of this Exhibit and is subject to SRTA and HCD approval. C. The Sub-recipient shall submit and follow a schedule for the expenditure prior to disbursement of funds.The schedule is subject to SRTA and HCD approval and may be revised as SRTA deems necessary. 3. Grant Timelines A. This Agreement is effective upon approval by all parties and SRTA,which is evidenced by the date signed by the SRTA on page one, Standard Agreement, STD (the "Effective Date"). B. All Grant funds must be obligated no later than June 30, 2024, and expended by lune 30, 2026, pursuant to Health and Safety Code section 50515.10(e)(1). 4 � Pac� e C. Final invoices must be submitted to SRTA four months prior to the expenditure deadline. Under special circumstances, approved by HCD and in accordance with the expenditure deadline,SRTA may modify the invoice deadline and may provide exception to carry out the terms of this Agreement. D. It is the responsibility of the Sub-recipient to monitor the progress and timeliness of grant fund obligations, including invoicing and reimbursements within the specified dates. 4. Allowable Uses of Grant Funds A. 5RTA shall not award or disburse funds unless it determines that the grant funds shall be expended in compliance with the terms and provisions of the Statute and Guidelines which includes associated forms and guidelines, approved applications, and this Agreement. B. Grant funds shall only be used by the Sub-recipient for project aetivities approved by the SRTA and HCD that involve planning and implementation activities in accordance with the Statute and Guidelines. C. The Sub-recipient shall not use the grant funds for costs related to administration af the project. D. A Sub-recipient that receives funds under this Program may use a subcontractor and Sub-recipient shall be accountable to SRTA and HCD to ensure subcontractor's performance of the subcontract shall comply with all the requirements of the Program. The subcontract shall not relieve the Sub-recipient of its responsibilities under the Program. E. After the Agreement has been executed by SRTA and all parties,approved and eligible costs for eligible activities may be reimbursed for the project upon completion of deliverables in accordance with the scope of work and subject to the terms and conditions of this Agreement. S � P � c� e EXHIBIT C—REAP 2.0 TERMS AND CONDITIONS 1. Accountine and Records A. The Sub-recipient, its employees, contractors, and subcontractors shall establish and maintain an accounting system and reports that properiy accumulate incurred project costs by line. The accounting system shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support far payment vouchers and invoices. Sub-recipients may establish and maintain an accounting system and reports,as described above,on behalf of contractors and subcontractors. B. The Sub-recipient must establish a separate ledger account for receipts and expenditures of grant funds and maintain expenditure details in accordance with the budget and timeline. Separate bank accounts are not required. As appropriate, Sub- recipients must establish separate ledgers for State General funds and other funds associated with proposed uses not provided by the REAP 2.0 Program. C. The Sub-recipient shall maintain documentation of its normal procurement policy and competitive bid process (including the use of sole source purchasing), and financial records of expenditures incurred during the course of the project in accordance with GAAP. D. The Sub-recipient agrees that SRTA or designated representative, and HCD or designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of the Agreement. E. The Sub-recipient agrees to maintain such records for a possible audit after the final payment for at least five years after all funds have been expended or returned to the State unless a longer period af recards retention is stipulated. Wherever practicable, such records should be collected, transmitted, and stored in open and machine- readable formats. F. Contractors and subcontractors employed by the Sub-recipient and paid with moneys under the terms of this Agreement shall be responsible for maintaining accounting records as specified above. 2. Invoicin� A. Grant funds cannot be disbursed until the Agreement has been fully executed. 6 � P � � e B. The Sub-recipient will be responsible for compiling and submitting all invoices and reporting documents. C. The Sub-recipient must bill SRTA based on clear deliverables outlined in the Agreement or budget timeline. Generally, approved and eligible costs incurred for work after execution of the Agreement and completed during the grant term will be reimbursable. D. Project invoices may be submitted to SRTA by the Sub-recipient on a quarterly basis or upon completion of a deliverable, subject to the SRTA's approval. E. SRTA may alternative arrangements to reimbursement and payment methods based on demonstrated need.SRTA may consider factors such as available funds for eligible activities.The Sub-recipient must report progress according to an implementation and expenditure timetable. F. Supporting documentation may indude, but is not limited to, purchase orders, receipts, progress payments, subcontractor invoices,timecards, reports, or any other documentation as deemed necessary by SRTA or HCD to support the reimbursement to the Sub-recipient for expenditures incurred. G. Invoices must be accompanied by supporting documentation where appropriate. Invoices without supporting documentation will not be paid. SRTA may withhold up to 10 percent of the grant until grant terms have been fulfilled,including all required reporting. 3. Audits A. At any time during the term of the Agreement, SRTA or HCD may perform or cause to be performed a financial audit of any and all phases of the award. At SRTA's request, the Sub-recipient shall provide, at its own expense, a financial audit prepared by a certified public accountant. SRTA has the right to review project documents and conduct audits during project implementation and throughout the project life. B. The Sub-recipient agrees that SRTA or their designee and HCD or their designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining ta performance of this Agreement. C. The Sub-recipient agrees to provide SRTA, ar SRTA's designee, with any relevant information requested. D. The Sub-recipient agrees to permit SRTA or their designee and HCD or their 7 � P � ge designee access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with statutes, REAP 2.0 Guidelines, and the Agreement. E. SRTA may request additional information,as needed,to meet other applicable audit requirements. F. SRTA may monitor expenditures and activities of a Sub-recipient or its designees, contractors or subcontractors,as SRTA deems necessary,to ensure compliance with REAP requirements. G. If there are audit findings, the Sub-recipient must submit a detailed response accepta6�e to SRTA and HCD for each audit finding within 90 days from the date of the audit finding report. H. The Sub-recipient agrees to maintain such records for possible audit after the final payment for at least five years after all funds have been expended or returned to the State unless a longer period of records retention is stipulated. Wherever practicable, such records should be collected, transmitted, and stored in open and machine- readable formats. I. If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started before the expiration of the required record retention period, all records must be retained by the Sub-recipient and its designees, contractors, and sub- contractors until completion of the action and resolution of all issues which arise from it. In any contract that it enters into in an amount exceeding$10,000,the Sub-recipient shall include SRTA and HCD's right to audit the contractor's records and interview their employees. J. The Sub-recipient shall comply with and be aware of the requirements and penalties for violations of fraud and for obstruction of investigation as set forth in California Public Contracts Code Section 10115.10. 4. Remedies and Non-performance A. Any dispute cancerning a question of fact arising under this Agreement that is not . disposed of by agreement shall be decided by SRTA's Executive Director, or the Executive Director's designee, who may consider any written or verbal evidence submitted by the Sub-recipient.The decision of the SRTA's Executive Director, or the 8 � P � g � Executive Director's designee, shail be STRA's final decision regarding the dispute, not subject to appeal. B. Neither the pendency of a dispute nor its consideration by SRTA will excuse the Sub- recipient from full and timely performance in accordance with the terms of this Agreement. C. In the event that it is determined,at the sole discretion of SRTA,that the Sub-recipient is not meeting the terms and conditions of the Agreement,immediately upon receiving � a written notice from SRTA to stop work, the Sub-recipient shall cease all work under the Agreement. SRTA has the sole discretion to determine that the Sub-recipient meets the terms and conditions after a stop work order,and to deliver a written notice to the Sub-recipient to resume work under the Agreement. D, SRTA has the right to terminate the Agreement at any time upon 30 days written notice. The notice shall specify the reason for early termination and may permit the Sub-recipient or SRTA to rectify any deficiency(ies) prior to the early termination date.The Sub-recipient will submit any requested documents to SRTA within 30 days of the early termination notice. E. The Sub-recipient must demonstrate a clear and significant nexus to REAP 2.0 Program goals and objectives and must carry out provisions to meet the Program goals and objectives and other requirements.Any lack of action or action inconsistent with REAP 2.0 requirements may result in review and could be subject to repayment of the grant. F. At any time, if SRTA finds the Sub-recipient included false information in the application or as part of the application review, SRTA may require the repayment of funds. G. Sub-recipients are responsible for subcontracts meeting all REAP 2.0 requirements. H. Examples of a breach of this Agreement: 1. Sub-recipient's failure to comply with any term or condition of this Agreernent. 2. Use of,or permitting the use of,grant funds provided under this Agreement for any ineligible costs or for any activity not specified and approved under this Agreement. 3. Any failure to comply with the deadlines set forth in this Agreement unless approved by the SRTA and HCD's Program Managers in writing. 9 � Paye I. SRTA may, as it deems appropriate or necessary, require the repayment of funds from a Sub-recipient, or pursue any other remedies available to it by law for failure to comply with all REAP 2.0 Program requirements. J. In addition to any other remedies that may be available to SRTA in law or equity for breach of this Agreement, SRTA may at its discretion, exercise a variety of remedies, including but not limited to: 1. Revoke existing REAP 2.0 award to the Sub-recipient; 2. Require the return of unexpended REAP 2.0 funds disbursed under this Agreement; 3. Require repayment of REAP 2.0 Funds disbursed and expended under this Agreement; 4. Seek a court order for specific performance of the obligation defaulted upon, or the appointment of a receiver to complete the obligations in accordance with the REAP 2.0 Program requirements; and 5. Other remedies available at law, by and through this Agreement. All remedies available to SRTA are cumulative and not exclusive. 6. SRTA may give written notice to the Sub-recipient to cure the breach or violation within a period of not less than 15 days. K. The Sub-recipient may be subject to amendment of this section as a result of subsequent applications and awards. 5. Reportin� A. At any time during the term of the Agreement, SRTA may request a performance report that demonstrates satisfaction of all requirements identified in the Agreement with emphasis on eligible activities, eligibfe uses, and expenditures according to timelines and budgets referenced in the Agreement. B. Sub-recipients shall submit a report, in the form and manner prescribed by SRTA and HCD, to be made publicly available on its website, by April 1 of the year following the receipt of those funds,and annually thereafter until those funds are expended,that contains the following information: 1. The status of the project and expenditures listed in the Sub-recipient's 10 � Page application for funding and progress of the project toward all the objectives of the REAP 2.0 program as provided in the Guidelines and explained in the applications. 2. An explanation and quantification, where appropriate, of the progress achieved toward all of the objectives of the REAP 2.0 program, barriers, and solutions for the project that is consistent with and incorporates the metrics in the application, including, but not limited to: i. Housing units accelerated, ii. Reductions in Vehicle Miles Traveled Per Capita, iii. Location of investment, iv. Socioeconomic statistics about the irnpacted geography,and v. Regional impact explanation The repart must identify whether the project overlaps with other programs that share the same objectives as REAP 2.0.The Sub-recipient should also identify any measurement challenges that persist and highlight any administrative barriers that prevent it from obtaining the information it needs to perform better analysis of progress made achieving REAP 2.0 Objectives and make adjustments to the extent possible in subsequent reporting years. 3. All status and impact reports shall be categorized based on the eligible uses specified in Section 50515.08 of the Statute. C. Upon completion of all deliverables within the Agreement, the Sub-recipient shall submit a close out report in a manner and form prescribed by SRTA. 6. Indemnification Neither SRTA nor any officer, employee or designee thereof is responsible f�r any injury, damage or liability occurring by reason of anything done or omitted by the Sub-recipient, its officers, employees, agents, its contractors, its subcontractors under or in connection with any work, authority or jurisdiction conferred upon the Sub-recipient under this Agreement,Guidelines or Statute. lt is understood and agreed that the Sub-recipient shall fully defend,indemnify and save harmless SRTA and all of SRTA's staff from all claims,suits or actions of every name, kind and description brought forth under, including, but nat limited to,tortuous, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by the Sub-recipient, its officers, emplayees, agents, contractors, sub-recipients, or subcontractors under this Agreement, Guidelines or Statute. 11 � �' ac� e 7. Waivers No waiver of any breach of this Agreement shali be held to be a waiver of any prior or subsequent breach. The failure of SRTA to enforce at any time the provisions of this Agreement,orto require at anytime,performance bythe Sub-recipient of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of SRTA to enforce these provisions. 8. Relationship of Parties It is expressly understood that this Agreement is an agreement executed by and between two independent entities and is not intended to,and shall not be construed to, create the relationship of agent, servant, employee, partnership,joint venture or association,or any other relationship whatsoever other than that of an independent party. 9. Third Partv Contracts A. All state-government funded procurements must be conducted using a fair and competitive procurement process. The Sub-recipient may use its own procurement procedures as long as the procedures comply with all City/County laws, rules and ordinances governing procurement, and all applicable provisions of California state law. B. Any contract entered into as a result of this Agreement shall contain all the provisions stipulated in this Agreement and shall be applicable to the Sub-recipient's contractors, and subcontractors. Copies of all agreements with contractors, and subcontractors shall be submitted to SRTA's program manager. C. SRTA does not have a contractual relationship with the Sub-recipient's contractors, or subcontractors,and the Sub-recipient shall be fully responsible for monitoring and enforcement of those agreements and all work performed thereunder. 10. Compliance with State and Federal Laws. Rules.Guidelines and Re�ulations A. The Sub-recipient agrees to comply with all state and federal laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, equal opportunity, and all other matters applicable to the grant,the Sub- recipient, its contractors or subcontractors, and any other grant activity. B. During the performance of this Agreement, the Sub-recipient assures that no otherwise qualified person shall be excluded from participation or employment, 12 � P �, ge denied program benefits, or be subjected to discrimination based on race, color, ancestry, national origin, sex, gender, gender identity, gender expression, genetic information, age, disability, handicap, familial status, religion, or belief, under any program or activity funded by this contract, as required by Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 USC 3601-20) and all irnplementing regulations, and the Age Discrimination Act of 1975 and all implementing regu�ations. C. The Sub-recipient shall include the nondiscrimination and compliance provisions of this clause in all agreements with its contractors,and subcontractors,and shall include a requirement in all agreements that each of them in turn include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts they enter into to perform work under the REAP 2.0 Program. D. The Sub-recipient shall, in the course of performing project work, fully cornply with the applicable provisions of the Americans with Disabilities Act(ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.j E. The Sub-recipient shall adopt and implement affirmative processes and procedures that provide information, outreach and promotion of opportunities in the REAP 2.0 project to encourage participation of all persons regardless of race, color, national origin,sex, religion,familial status, or disability.This includes, but is not lirnited to,a minority outreach program to ensure the inclusion,to the maximum extent possible, of minorities and women, and entities owned by minorities and women, as required by 24 CFR 92.351. 11. Disadvanta�ed Business Enterarise (DBE) A. It is the policy of SRTA, the California Department of Transportation, and the U.S. Department of Transportation, that Disadvantaged Business Enterprises (DBEs), as defined in 49 CFR Part 26, shall have an equal opportunity to receive and participate in the performance of agreements financed in whole or in part with Federal Highway Administration (FHWA)/Federal Transportation Administration (FTA)funds provided under this Agreement. B. The Sub-recipient, its employees, and its sub-contractors shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of FHWA/FTA funds-assisted contract or in the administration of SRTA's DBE program per the requirements of 49 CFR Part 26. Failure to carry out the requirements of this paragraph shall constitute a breach of contract and may result in termination of this Agreement or such other remedy SRTA may deem appropriate. 13 � P � ge C. If Sub-recipient proposed the contract project with Disadvantaged Business Enterprise participation, the Sub-recipient will adhere to the stated participation rate unless otherwise agreed to, in writing, between SRTA and the Sub-recipient for circumstances beyond the control of the Sub-recipient. The Sub-recipient will take all necessary affirmative steps to assure that minority firms, women's business enterprises, and labor surplus area firms are used when possible.Affirmative steps shall include: 1. Placing qualified small and minority businesses and women's business enterprises on solicitation lists; 2. Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; 3. Dividing total requirements,when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority business, and women's business enterprises; 4. Establishing delivery schedules, where the project requirernents permit, that encourage participation by small and minority business, and women's business enterprises; 5. Using the services and assistance of the Small Business Administration, and the Minority Business Development Agency of the Department of Com merce; D. The Sub-recipient shall, as required by 49 CFR part 26, include the language in Attachment C into all contracts funded in whole or in part with funds authorized in this Agreement. 12. Liti�ation A. If any provision of this Agreement, or an underlying obligation, is held invalid by a court of competentjurisdiction,such invalidity,at the sole discretion of SRTA,shall not affect any other provisions of this Agreement and the remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are, and shall be,deemed severable. B. The Sub-recipient shall notify SRTA immediately of any claim or legal action undertaken by or against it, which affects or may affect this Agreement or SRTA, and shall take such action with respect to the claim or legal action consistent with 14 � P� � � the terms of this Agreement and the interests of SRTA. 13. Chanees in Terms/Amendments A. The Sub-recipient may be subject to amendments to this section as a resuit of subsequent applications and awards. B. This Agreement may only be amended or modified by mutual written agreement of both parties. 14. State-Owned Data A. Definitions 1. Work: The work to be direct�y or indirectly produced by the Sub-recipient,its employees, ar by and of the Sub-recipient's contractor's, subcontractor's and/or sub- recipient's employees under this Agreement. 2. Work Product: All deliverables created or produced from Work under this Agreement including, but not limited to, all Work and deliverables conceived or made or, hereafter conceived or made, either solely or jointly with others during the term of this Agreement and during a period of six rnonths after the termination thereof,which relates to the Work commissioned or performed under this Agreement, are considered Wark Product. Work Product includes all deliverables, inventions, innovations, improvements, or other works of authorship Sub-recipient and/or Sub-recipient's contractor subcontractor may conceive of or develop in the course of this Agreement, whether or not they are eligible for patent, copyright, trademark, trade secret or other legal protection. B. Sharing of Work Product and Rights All Work Product shall be shared with SRTA, HCD, and its partners for various purposes, including education, outreach,transparency and future (earning. 15. Special Conditions SRTA reserves the right to add any special conditions to this Agreement it deems necessary to assure that the policy and goals of the Program are achieved. 15 � � a � a IN WITNESS THEREOF, SRTA and Sub-recipient have executed this Agreement on the day and year of the last signature set forth below. By their signatures below,each signatory represents that he/she has the authority to execute this Agreement and to bind the party on whose behalf his/her execution is made. SHASTA REGIONAL TRANSPORTATION AGENCY Date: ��9� �-'� n Tiedg , CP, ecutive Director CITY OF REDDING Date: gy; Michael Dacquisto, Mayor Tax I.D.#: Approved as to form: Approved as to form: 10HN KENNY Barry DeWalt Counsel,Shasta Regional Transportation Agency City Attorney,City of Redding . � i:�' 16 � ;�' �, ;. Attachment A SCOPE OF WORK AND SCHEDULE Acfivity Type Estimated Esfimated Start Date End Date Create and submit plans, obtain permits and approvals 1/15/2024 5/1/2024 Construction 5J1/2024 4/30/2025 Finallnspections 4J30/2025 5/30/2025 Certificate of Occupancy Issued 5/30/2025 5/30/20Z5 Lease up of residential units 6j1/2025 6/30/2025 Obtain all necessary clearances and compliance reports for all 7/1/2025 9/1/2025 funding sources 17 � Pac,� � Attachment B BUDGET Tasks REAP 2.0 Amount 1.1 Complete pre-construction reviews and activities $ 30,000.00 �•2 Construction: 12 affordable housing units $ 720,000.00 Total $ 750,000.00 18 � P �� ge Attachrnent C CPG Subrecipient Responsibilities for DBE CPG Subrecipient Responsibilities for DBE include: • Participation in the race neutral DBE Program when contracting/awarding to subrecipients or planning consultants involving any fraction of federal Consolidated Planning Grant (CPG)funds. • Participation in the race neutral DBE Program even if subrecipients have not contracted out work to sub-recipients or consultants. They must also complete,sign and turn in the FTA DBE Uniform Report form, showing zero dollars.This information will provide necessary data for the federally mandated Caltrans DBE disparity study. � Completion of the FTA DBE Uniform Report form twice a year:April 15t and Octaber 1St. The DBE Uniform Report shows the federal dollar amount provided through contract/s as well as DBE participation in these cantracts. This information will provide necessary data for the federally mandated Caltrans QBE disparity study and reporting to the FTA.The completed forms are sent to the appropriate HQ ORIP liaison. � Development and implementation of a DBE Program following the Caltrans DBE Program Plan, pursuant to the Master Fund Transfer Agreement, Article IV, Section 2. This Plan formally acknowledges the statutory and/or regulatory requirements with its race-neutral measures,and their commitment to comply with all the prescribed responsibilities explained herein. • Development and maintenance of a Bidder's List, consisting of information about all DBE and non-DBE firms that bid or quote on CPG-assisted contracts. The Bidder's List includes the name, address, DBE/non-DBE status, age and annual gross receipts of firms. • Inclusion of the following clause is required, verbatim, in each CPG-assisted contract: o The contractor or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of United States Department of Transportation-assisted contracts. Failure by the contractor ta carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy, as recipient deems appropriate. � Inclusion of contractual language specifying prompt payment clauses are required in the foregoing provisions.These prompt payment clauses benefit all subcontractars equally. o Prompt Progress Payment to Subcontractors—A prime contractor or subcontractor shall pay to any subcontractor not later than 10-days of receipt of each progress payment, in 19 � (� a � e accordance with the provision in Section 7108.5 of the California Business and Professions Code concerning prompt payment to subcontractors. The 10-day rule is applicable unless a longer period is agreed to in writing. Any delay or postponement of payment over 30-days may take place only for good cause and with the agency's prior written approval. Any violation of Section 7108.5 shall subject the violating contractor or subcontractor to the penalties, sanctions, and other rernedies of that Section. This requirement shall not be construed to limit or impair any contractual, administrative, orjudicial remedies, otherwise available to the contractor or subcontractor in the event of a dispute involving late payment or nonpayment by the contractor, deficient subcontractor performance, and/or noncompliance by a subcontractor. This clause applies to both DBE and non-DBE subcontractors. o Prompt Payment of Withheld Funds to Subcontractors—The MPO, RTPA or local government entity shall include either(1), (2), or(3)of the following provisions in their CPG- assisted contracts ta ensure prompt and full payment of retainage (withheld fundsj to subcontractors in compliance with 49 CFR 26.29. 1) No retainage will be held by the agency from progress payments due to the prime contractor. Prime contractors and subcontractors are prohibited from holding retainage from subcontractors. Any delay or postponement of payment may take place only for good cause and with the agency's prior written approval. Any violation of these provisions shall subject the violating contractor or subcontractor to the penalties, sanctions, and other remedies specified in Section 7108.5 of the California Business and Professions Code. This requirement shall not be construed to limit or impair any contractual,administrative,or judicial remedies,otherwise available to the contractor or subcontractor in the event of a dispute involving late payment or nonpayment by the contractor, deficient subcontractor performance, and/or noncompliance by a subcontractor. This clause applies to both DBE and non-DBE subcontractors. 2) No retainage will be held by the agency from progress payments due the prime contractor. Any retainage kept by the prime contractor or by a subcontractor must be paid in full to the earning subcontractor in 30-days after the subcontractor's work is satisfactorily completed.Any delay or postponement of payment may take place only for good cause and with the agency's prior written approval. Any violation of these provisions shall subject the violating contractor or subcontractor to the penalties, sanctions, and remedies specified in Section 7108.5 of the California Business and Professions Code. This requirement shall not be construed to limit or impair any contractual,administrative,or judicial remedies,otherwise available to the contractor or subcontractar in the event of a dispute invalving late payment or nonpayment by the contractor, deficient subcontractor performance, and/or noncompliance by a subcontractor. This clause applies to both DBE and non-DBE subcontractors. 20 � PaJe 3} The agency shall hold retainage from the prime contractor and shall rnake prampt and regular incremental acceptances of portions, as determined by the agency of the contract work and pay retainage to the prime contractor based on these acceptances. The prime contractor or subcantractor shall return all monies withheld in retention from all subcontractors within 30-days after receiving payment for work satisfactorily completed and accepted including incremental acceptances of portions of the contract work by the agency. Any delay or postponement of payment may take place only for good cause and with the agency's prior written approval. Any violation of these provisions shall subject the violating prime contractor to the penalties, sanctions, and other remedies specified in Section 7108.5 of the California Business and Professions Code. This requirement shall not be construed to limit or impair any contractual, administrative, or judicial remedies, otherwise available to the contractor or subcontractor in the event of: a dispute involving late payment or nonpayment by the contractor; deficient subcontractor performance; and/or noncompliance by a subcontractor.This clause applies to both DBE and non-DBE subcontractors. 21 � Pag � REQUEST FOR PROPOSALS PURCHASE AND DEVELOPNIENT OF REAL PROPERTY 815 PARKVIEW AVENUE, 825 PARKVIEW AVENUE AND 2520 LELAND AVENUE REDDiNG, CALIFORNIA (Schedule Number 5423) TABLE OF CONTENTS I. BACKGROUND .........................................................................................................................2 ILOVERVIEW OF PROJECT.......................................................................................................2 III. SCOPE OF SERVICES ............................................................................................................ 3 IV. FUNDING ................................................................................................................................ 4 V. TERM OF AGREEMENT .........................................................................................................4 VI.MINIMUM QUALIFICATIONS ............................................................................................. 6 VII. TENTATIVE TIME SCHEDULE .......................................................................................... 6 VIII. RESPONSE TO RFP ............................................................................................................. 6 IX. SELECTION PROCEDURES & CRITERIA .......................................................................... 8 X. CONTACTS ...............................................................................................................................9 XI. ATTACHMENTS.........................................................................................9 REQUEST FOR PROPOSALS PURCHASE AND DEVELOPNIENT OF REAL PROPERTY 815 PARKVIEW AVENUE, 825 PARKVIEW AVENUE AND 2520 LELAND AVENUE REDDiNG, CALIFORNIA (Schedule Number 5423) I. BACKGROUND The City of Redding {City), incorporated on October 4, 1887, is a ge�e�al law eity formed under state legislative statutes and governed by a body of laws in the California State Constitution. The Redding City Counci3 consists af five cauncil membexs elected at large far stagger�d faur-year terms. Couneil members must be residents af the City and registered voters during the namination period. Redding is ane of many California citi�s operatiilg under the eouncil-manager form of government. Under this system,the Council establishes the policies under which the City operates and appoints a trained and experienced City Manager to administ�r the affairs of the Czty.The City Manager's responsibilihes include hiring City staff, preparation af the Annual Budget, admznistration and coordinatian of th� City's aperatians, �;enexal supervision aver a11 praperty under the eantrol of the City, and enforcement of City ordinances and applicable state laws. The City Manager appoints staff ta assist him or her in carrying out specified duties. The City of Redding's I�ousing Division (I�ousing}is under the City Manager's Department. Additional City departments include the City Attorney's Office, City Clerk's Office, and City Treasurer's Office, as well as Community Services, Development Services, Electric, Financial Services, Fire, Information Technology, Personnel, Police, and Public Works Departments. IL OVERVIEW OF PROJECT Housing is publishing this RFP for the creation of a mixed-use development in the Parkview Neighborhood on parcels located at 815 Parkview Avenue (A.P.N: 104-350-019-000), 825 Parkview Avenue(A.P.N: 104-350-180-000)and 2520 Leland Avenue(A.P.N: 104-350-020-000) (Property). These parcels, when combined, are approximately.48-acre in development size. Qualified developers should demonstrate experience in constructing, financing, and operating income-eligible housing projects and show evidence of financial capability for funding pre- development costs, have access to equity, construction financing, experience with permanent project financing as well as long term operation experience. Once a qualified developer is selected, Housing anticipates entering into a Disposition and Development Agreement (DA) for the acquisition of the property and development of a Project that will include agreements regarding Property purchase; project design, planning and building permit process; and construction of the mixed-use development consisting of at least 12 residential units with retail/commercial space (��Proj ect). The Project outcome is expected to conform with the City of Redding's planning, zoning and use requirements, in addition to the Parkview Neighborhood Strategic Revitalization Plan (PNSRP), which emphasizes design standards that addresses building arientation,entrances,landscaping and screening, general building design and neighborhood compatibility. The PNSRP is available for review at the following web address: S�r��� ,i� �1��� 2 REQUEST FOR PROPOSALS PURCHASE AND DEVELOPNIENT OF REAL PROPERTY 815 PARKVIEW AVENUE, 825 PARKVIEW AVENUE AND 2520 LELAND AVENUE REDDiNG, CALIFORNIA (Schedule Number 5423) III. SCOPE OF SERVICES The following are possible design elements of the Project that may be incorporated due to funding source or other requirements. The Project will have design elements that reduce vehicle miles traveled and assist the tenants or occupants of the commercial spaces such as: � Bicycle lockers provided for tenants (mandatory in proposal) �� Bicycle or e-bike sharing program provided for tenants �� Minimum spaces for car parking �� On-site laundry or laundry hookups in units � Bus passes available at no charge for tenants �� High-speed internet provided for tenants (opens up work-at-home opportunities) The Project will also have design elements that incorporate a blending of the Parkview Avenue business corridor and existing residential areas that make up the Parkview Neighborhood. The Project should enhance the quality of life for the tenants of the Project and the neighborhood in general. A minimum of 12 residential units must be provided. The Project may consist of permanent, permanent supportive and transitional units. The twelve units will be income-qualifying and operators of the units will use housing first principles. Additional units may be incorporated in the Project if feasible with zoning and other requirements. The Project will have commercial spaces but a minimum of 65% of the Project total floor area must be utilized for residential use. For a period of at least twenty years, a minimum of two (2) of the housing units must be utilized to house Medi-Cal beneficiaries who are mentally ill and are experiencing homelessness or are at risk of homelessness. In addition, another two units must be transitional/pern�anent supportive in nat�ure and house tenants experiencing homelessness or at risk of homelessness. Final affordability requirements will be negotiated with the chosen developer but it is anticipated that for a period of at least twenty(20) years the affordable housing units must remain affordable to income-qualifying tenants earning less than eighty percent (80%) of inedian income for our area. It is anticipated that developers may need to partner with a non-pro�t entity to provide supportive services for the tenants occupying the units restricted for homeless or at risk of homelessness tenants. The supportive services must continue as long as required by the funding source(s). 3 REQUEST FOR PROPOSALS PURCHASE AND DEVELOPNIENT OF REAL PROPERTY 815 PARKVIEW AVENUE, 825 PARKVIEW AVENUE AND 2520 LELAND AVENUE REDDiNG, CALIFORNIA (Schedule Number 5423) A minimum of two (2) units must comply with the Americans with Disabilities Act including but not limited to accessible doors and entrances, reachable light switches, thermostats and electrical outlets, reinforced walls with grab bars, accessible bathrooms and accessible doors and windows. Please note that the City Planning Department, Building Department, Fire Department or other City departments may have requirements in addition to these requirements for the Project. It is estimated that construction will be completed and a Certi�cate of Completion issued by June 2025 in order to utilize all of the available grant funds for construction. The Project that most closely aligns with funding source priorities and timeline may be selected to enter into a Disposition and DA. Priorities include housing of marginalized unhoused individuals, economic development, sustainability, reducing vehicle miles traveled, and a completed Project that is a shining example of mixed-use development. IV. FUNDING Housing has been awarded $750,000 of Regional Early Action Planning funds (REAP 2.0)that wi11 be used to accelerate infill development(and reduce vehicle miles traveled). More information for REAP can be found at: h��ps://��eh�d,��,��vl�r��t�-��d�f��din-�/t�r��s� ��tiv�lr°� ic�r�al-�a�l -��t�s�r�- l���r� - z��r�t�-�f-202.1. �Iousing also has been awarded $800,000 in Whole Person Care funds that wi11 be used a11 or in part for this Project. As a condition of this funding, for a minimum of twenty years, at least two residential units must be used far Medi-Cal beneficiaries who are mentally ill and experiencing homelessness or at-risk of homelessness. As a condition of these funds, the developer must also make available and allow supportive services for 20 years for the tenants that occupy these units. Final job speci�cations will be negotiated with the chosen developer. It is anticipated that these funding sources (REAP 2.0 and Whole Person Care funds) will be utilized as below market rate loans for the infrastructure and construction needs of the Project in exchange for affordable units that benefit the most vulnerable populations in our community. At the City's discretion, other public funding sources may be utilized for this Project along with developer provided funds. V. TERMS OF AGREEMENT Affordable units must assist income-qualifying households earning eighty percent (80%) of the Area Median Income level established by �IUD, or less. Tenants may be families, seniors, veterans, special needs, or homeless (or at-risk of homelessness), and/or other eligible groups. The borrower shall sign loan documents with the City,including but not limited to: DA,Regulatory Agreements, Promissory Note(s), Deeds of Trust, and any other necessary documents. 4 REQUEST FOR PROPOSALS PURCHASE AND DEVELOPNIENT OF REAL PROPERTY 815 PARKVIEW AVENUE, 825 PARKVIEW AVENUE AND 2520 LELAND AVENUE REDDiNG, CALIFORNIA (Schedule Number 5423) It is anticipated that the term of affordability will be twenty(20)years from the date of the Notice of Completion. Projects must have reasonable acquisition, construction and operating costs, as reviewed and determined by Housing staff based on local recent comparable developments. Developer must leverage other financing sources such as,but not limited to,state,federal and other local sources and private funds. Developer must demonstrate readiness for development of the Project. Projects must comply with applicable environmental review requirements. State prevailing wages may apply to the construction of this Project and wi11 be determined during the negotiation of the Disposition and DA. Developer must comply with all applicable funding source requirements, including but not limited to Davis Bacon federal labor standards regulations under 29 CFR Part 5, Section 504 of the Rehabilitation Act of 1973,Americans with Disabilities Act(ADA),Affirmatively Furthering Fair I-Iousing Act, Section 3 of the U.S. I�ousing Act of 1968, Equal Opportunity and related requirements in 24 CFR Section 982.53, as amended,prohibition against eminent domain, federal and state requirements related to Minority Business and Women Business Enterprises (M/VVBE), Duplication of Benefits, the Uniform Relocation Assistance and Real Property Acquisition Act, Article XXXIV, and other applicable regulations. Projects must comply with state and federal regulations; and applicable funding source guidelines and regulations. Projects must comply with the requirements of the California Environmental Quality Act(CEQA) and the National Environmental Policy Act(NEPA). Compliance with CEQA and NEPA must be completed prior to finalization of the funding commitment and start of construction. Successfully funded developments will be required to submit to the Housing an annual audit of the Project prepared by an independent certified public accountant. Completed Project will require compliance monitoring during the period of affordability. Developer understands that under the California Public Records Act, documents that they submit in response to this NOFA are considered public records and may be made available to the public upon request (this does not include credit, bank and financial information which will remain confidential). At the time of the first construction draw, a $20,000 monitoring fee will be required that will be 5 REQUEST FOR PROPOSALS PURCHASE AND DEVELOPNIENT OF REAL PROPERTY 815 PARKVIEW AVENUE, 825 PARKVIEW AVENUE AND 2520 LELAND AVENUE REDDiNG, CALIFORNIA (Schedule Number 5423) paid by the developer to the City for the extended monitoring that will be required by the development funding source(s). Please note that the ability to satisfy these terms and conditions is not a guarantee of Project funding. VI. MINIMUM QUALIFICATIONS Qualified affordable housing developers that meet the RFP requirements are encouraged to submit proposals. Eligible Applicants include for-profit or non-profit entities, individuals, general or limited partnerships, or limited liability companies. Generally, the Applicant/Developer should have completed at least two multifamily developments, one of which included affordable units. Applicants without the necessary experience may enter into joint venture agreements with experienced developers in order to be considered. VIL TENTATIVE TIME SCHEDULE Release RFP December 21, 2023 Questions due by 5 p.m. January 4, 2024 Addendum Issued(if necessary) January 8, 2024 Deadline to Receive Proposal—Before 3 p.m. January 17, 2024 Evaluate Proposals January 19, 2024 Developer Interviews (if necessary)/ Select Developer January 22-23, 2024 Recommendation to City Council for Developer Approval February 6, 2024 Enter into Contract February 29, 2024 Complete predevelopment and obtain permits May 31, 2024 Begin Construction June l, 2024 Complete Construction and Certificate of Completion issued June 30, 2025 VIII. RESPONSE TO RFP A. SUBMITTAL INSTRUCTIONS Submit one (1) unbound original and six (6) color copies of the proposal along with a USB containing a PDF of the proposal in a sealed box or envelope clearly marked with. the name of the development entity and labeled: "RFP Parkview/Leland Property Purchase and Development; Schedule Number: 5423." Proposals shall be delivered to the office of the City Clerk,located at the address and date as noted on the RFP cover sheet. The City reserves the right to reject at its sole discretion proposals received after the stated time and date. Facsimile or electronic submissions will not be accepted. 6 REQUEST FOR PROPOSALS PURCHASE AND DEVELOPNIENT OF REAL PROPERTY 815 PARKVIEW AVENUE, 825 PARKVIEW AVENUE AND 2520 LELAND AVENUE REDDiNG, CALIFORNIA (Schedule Number 5423) B. REQUIRED PROPOSAL CONTENTS At a minimum, proposals shall include the following information, in the order indicated below: 1. Transmittal Letter - Include a cover transmittal letter signed by a member of the firm having the authority to enter into contracts on behalf of the organization and acknowledge receipt of all addenda by number(if any were issued). If unsure as to the status of addenda, contact Michelle Kempley,Purchasing Officer,to confirm. Phone: (530)225-4137; email: ml��m�1��{r��ity���dding.t�r� 2. Company Information - Provide name, address, telephone, fax, and e-mail of the development entity and its principals and describe how the development entity is organized, owned, and controlled. Include full names and biographical summaries of company officers and/or principals. 3. Development EXperience - Describe relevant Project experience/role of the development entity in Project planning, financing, and construction. Provide elevations, site plans, and photographs for the most relevant three Projects completed within the last ten years. Specifically describe what role the development entity or its principals have played in affordable housing Projects from initial planning to build-out. 4. Development Approach - Describe the development entity's Project management and organization approach, including the development team structure for this Project, clearly showing lines of responsibility, including subcontractors and/ar property managers. 5. References - Provide credit, financial, or banking references, including contact names, phone numbers, and e-mail addresses. Reference information obtained for the purposes of this RFP will be kept confidential. 6. Project Description - Provide a description of the proposed development plans for the Project site including the following: a. Basic site plans showing the approximate location of buildings,driveway locations and street orientation of units, fence lines, and fire access; b. Basic elevations of units; c. Basic floor plans including general description of interior and exterior amenities for each unit. (Please note that these plans may be hand drawn or simple but should allow the City to get a feel for the proposed Project); d. An estimate of cost far the Project (this is not a bid, it is just an early estimate of total cost for the proposed development); e. Include any unique elements that your organization can add to the development. These elements may be additional units,nicer site amenities or special services that may assist underserved members of our community or something else Housing has not 7 REQUEST FOR PROPOSALS PURCHASE AND DEVELOPNIENT OF REAL PROPERTY 815 PARKVIEW AVENUE, 825 PARKVIEW AVENUE AND 2520 LELAND AVENUE REDDiNG, CALIFORNIA (Schedule Number 5423) considered. Housing will be looking for a developer that can bring forth the best Project to serve our community with the funding available. 7. Financial Feasibility — Provide a financial proforma describing anticipated sources and uses of public and private financing to be used to construct the mixed-use building and also fund the required supportive services. During the development,public funds will be issued to the chosen developer on a reimbursement basis that may take up to ninety days per draw. 8. Developer Financial Health—Provide verification of the�nancial health of the developer. Also provide verification of City of Redding Business License, verification of compliance/good standing with the California Secretary of State, provide verification registered with Sam.gov and provide business/nonprofit Unique Identification Number. IX. SELECTION PROCEDURES AND CRITERIA Submissions received as requested will be evaluated by the City. Interviews may be scheduled with the entity or entities most closely meeting the City's needs and objectives. Submissions will be eval�uated and reviewed on the basis of the following criteria. 5c�ring Criteria Max Points Experience of development entity� in planning, designing, building, and �20 � marketing the income-qualifying housing Project envisioned in the Re uest for Pro osal. Financial strength of development entity and ability to raise additional 10 ca ital. Project consistency with funding source requirements and City goals, as 20 well as an additional communit benefits. Project understanding, developer ability to complete Project on-time and 20 within bud et. Number of housing units proposed and innovative design of commercial 15 s ace. Ability to manage the property including office/retail space and 15 transitional housin units. �Iousing reserves the right to request at any time that Applicants submit additional information to Housing staff. Housing also reserves the right to suspend, amend or modify the provisions of this RFP, to reject any and all proposals, to negotiate modifications of proposals, or to award less than the available or requested funding. 8 REQUEST FOR PROPOSALS PURCHASE AND DEVELOPNIENT OF REAL PROPERTY 815 PARKVIEW AVENUE, 825 PARKVIEW AVENUE AND 2520 LELAND AVENUE REDDiNG, CALIFORNIA (Schedule Number 5423) X. CONTACTS Technical questions regarding this RFP may be submitted in writing to the contact listed below and be received by 5:00 p.m., PST, on Thursday, January 4, 2024. At the City's sole discretion, clarification deemed material to the understanding of this RFP will be distributed as a formal. addendum to all known Developer's receiving the RFP and be posted online at �Ztt so//wvv�a.��t ��"r�ddi� a �v/ �ve�rar����ld� ar�r��nt�/ a�r�h�si� lbzd � r��t�t�iti��a h . It is the Developer's responsibility to be sure they are in receipt of all addenda, should any be released. Michelle Kempley, Purchasing Officer; r��l��r���al��{a��y�f��ddin�� XI. ATTACHMENTS Exhibit A: Location Map Exhibit B: Whole Person Care Information Exhibit C: REAP 2.0 Information 9 GIS Web Map , ,, � �l; lt� f� r`�'��'� f"� � �� r =:` � ,� �'� r r` .""�. ,""*w,. ME�'� � � t� i f�� J s"",.,.� � lfl t` .' ��"� � I "�,, 7 ��.�3 ' `"'�. r I ., w, � +. � �a.��Q `�, ° r��� $43 " �m� �� r� �35 ,.�b, �`" ^�.-. �..� _� �`�" �2� ',^�� 1' P�C�CVI�W��� '� �'i 5 ,,� �� f' �c'3C'�UI�tN ^` ' ��� �� i-.' � ��" ..� �'ti, �� ��Ct3 ,�- 25�U �' �� �.�fr`IC1C� ' �� �,,„�� 25"6� � 2�4� � $36 �""�..� 74� � 7�5 t `'°^�SCa �5'37 723 �42 ' `� �2� a� 2��� 725 � �34 e �,,� � � ,�53t9� �`"k.„ ��' ��� �� � �. �a '�'45 � � M4� 25d�&' � � December 12, 2023 1:1,128 a0 0.0075 0.015 0.03 mi Parcel � � � 0 0.015 0.03 0.06 km Redding GIS Internal Map Viewer Parkview Infill Project NO WITHHOLDING SUBAWARD AGREEMENT BETWEEN THE COUNTY OF SHASTA AND CITY OF REDDING This subaward agreement ("Subaward") is entered into between the County of Shasta, a political subdivision of the State of California, through its Health and I�uman Services Agency ("County"}, and the City of Redding, a municipal corporation ("Subrecipient"}, (collectively, the "Parties" and individually a "Party"), for the purpose of the partial funding for the building of transitional and permanent housing. RECITALS WHEREAS, in 2016, the California State Legislature adopted Welfare and Institutions Code (WIC) sections 14184 through 14184.80, known as the Medi-Cal 2020 Demonstration Project; and WHEREAS, Welfare and Institutions Code section l�L l$4.60 established'a dem.onstration project known as the Whole Person Care Pilot Prograrn,which is focused on coordinating care for individuals with complex behavioral and physical health condition�,who are horneless or at risk of homelessness; and WIIEREAS, in June 2016, with the County Executive Officer's approval, HHSA-Adult Services submitted a WPC Pilot application to DHCS for consideration; and WHEREAS, on December 6, 2016 the Board of Supervisors approved California Department of Health Care Services (DHCS}revenue Agreement to���:implement the Whole Person Care (WPC) Pilot Program in Shasta County through fiscal year 2021 and due to the COVI�D-19 pandemic, the Pilot Project has been extended t�rough June 2�22; and WHEREAS, �he 2019-202(�the California State Governor's Budget included$100 million State General Fund monies for one-time with multi-year'��spending authority through June 20,2025, of which Shasta County recei�ed$1,198,355.90 ; and WHEREAS, the County wishes to contribute $800,000 of the Whole Person Care funding to the Subrecipient's housingaproject to bui�ld twelve housing units; and WHEREAS, the Subrecipient desires accept the funds and comply with all applicable "Ilousing First"�rinciples as defied in California Welfare and Institution Code Section 8255-8256 NOW THEREFORE, in consideration of the terms and conditions contained herein, the Parties agree as follows: Section 1. DEFINITIONS For the purposes of this Subaward, the following definitions shall apply: A. Funding Source means budgetary resources for programs and projects, which may include grants, federal and state awards, and allocations B. Housing Unit(s) means permitted structures that act as separate living quarters and is intended for occupancy. Agr.EMB.City of Redding,2325 2049-'75-2023-01 CC:41160 Page 1 of 15 C. Participant(s) means adult Medi-Cal beneficiaries with Mental Health Conditions, including those who have self-declared such, living in Shasta County who are experiencing homelessness or at risk of homelessness. D. Subrecipient means a non-federal entity receiving a subaward from a pass-through entity to carry out part of a federal program. E. Whole Person Care ("WPC") means patient-centered coordination of health, behavioral health and social services with the goals of improved beneficiary health and wellbeing through more efficient and effective use of resources. Section 2. RESPONSIBILITIES OF SUBRECIPIENT � A. Pursuant to the terms and conditions of this Subav�rard, Subrecipient shall: (1) Utilize the funds of this Subaward, in conjunction with other funds held by the Subrecipient to build a minimum of 12 I�ousin�Units on the follc�wing parceUlots: a. 815 Parkview Avenue Redding, �A; APN: 104-350-019-000; b. 825 Parkview Avenue Redding, CA,APN: 104-350-018-000; and c. 2520 Leland Avenue Redding, CA; APN:�103-350-002-000. (2) Ensure that Housing Units support both transitianal and permanent housing for low-income individuals and f�milies and that a rninimu`n of two Housing Units are reserved for Medi-Cal bene�ciaries who are mer�tally i11 and are experiencing homelessness or at risk of hotsaelessness. (3) Ensure a rnir�imum of two I�ous�ng Units comply with Title II of the Americans with Di�abilities Aet, or a standard which is�equivalent or stricter, incl�uding but not limited to: a. Accessible doors and entrances; � b. Accessible public use areas, c. Usable doors; d. Access�o and through��a covered dwelling; e. Reachable light switches,thermostats and electrical outlets; f. Reinforced walls with grab bars; g. Accessible bathrooms; and h. Accessible doors and windows. (4) Provide progress reports to County as described in Section 5, for payment. Progress reports shall include the total amount spent on the building of the Housing Units,the progress and expected date of completion. (5) Provide a final report to County no later than July 15, 2025, which shall include the following: a. Itemized disposition of funds. Agr.EMB.City of Redding,2325 2049-'75-2023-01 CC:41160 Page 2 of 15 b. Number of individuals who have benefitted from the use of the funds. c. Number of I�ousing Units occupied. d. Number of Housing Units unoccupied. (6) Ensure that a minimum of 2 Housing Units are utilized for Medi-Cal recipients with a mental health issue (either diagnosed by a medical provider or self- declared), for a minimum of 20 years. B. As required by Government Code section '7550, each document or report prepared by Subrecipient for or under the direction of County pursuant to this Subaward shall contain the numbers and dollar amount of the Subaward and all�subcontracts under the Subaward relating to the preparation of the document �r written report. If multiple documents or written reports are the subject of;the Subaward or subcontracts, the disclosure section may also contain a statement�indicating that the total Subaward amount represents compensation for multipl� document� or written reports. Subrecipient shall label the bottom of the la�t page of the document or xeport as follows; department name, Subaward number, and dollar amount. If more than t�ne document or report is produced under this Subaward, Subrecipient shall add: "This [document or report' is one of[number] produced under tfiis Subawarc�" C. Promulgate and implement written procedures ("Grievance Procedures") whereby recipients of services shall have the opportunity to express and have considered their views, grievances, and compla�t�ts regarding the delivery of`services pursuant to this Subaward. A copy of Subrecipient's Grie�nce Procedur�s shall be provided to County upon request. County's Director o�Health and�-Iuman Services Agency ("Director") shall be notified in writing by Subreci�i�nt within t�n��business days of: (6) Learning of all grievances and the nature thereof; and (7) Resolu�it�n of a grie�vance or conclusion of the grievance process including the results of such. D. Acknt�wiedge the �unding source�f all�activities undertaken pursuant to this Subaward by including in,any educational and training materials, audio visual aids, interviews � with press, flyers, or publicatio�s the following statement: "This activity(or program) has been partially fiinded(ar sponsored)by the County of Shasta through the California 'Department of Health Care Service." Section 3. RESPONSIBILITIES OF COUNTY A. Pursuant to the terms and conditions of this Subaward, County shall: (1) Compensate�Subrecipient as prescribed in sections 4 and 5 of this Subaward and monitor the outcomes achieved by Subrecipient. (2) Monitor Subrecipient's performance to assure compliance with the terms, conditions, and specifications of this Subaward. Section 4. PREVAILING WAGES County shall require Subrecipient and Subrecipient's subcontractor(s) performing any work that constitutes a public works project as defined by California law including, but Agr.EMB.City of Redding,2325 2049-'75-2023-0 l CC:41160 Page 3 of 15 not limited to, construction, improvement, demolition, alteration, renovation, or repair of a publicly leased or operated building or struct�ure, to comply with all provisions of California law regarding construction that constitutes a public warks project. Any Agreement between County, Subrecipient and a third party for work that constitutes a public works project shall include the following provision: A. Subrecipient shall pay, and shall require subcontract to pay, not less than the specified prevailing rates of per diem wages to all laborers, workers, and mechanics employed by them in execution of this Subaward in accordance with Ghe,provisions of Article 2 (commencing with section 1770) of Chapter 1 of Part 7 of Di�ision 2 of the Labor Code. Copies of the prevailing rate of per diem wages care on file at Shasta County's Department of Public Works, located at 1855 Plac�r Street, Redding, California, and are available to Subrecipient upon request. Subrecipi,ent shall also pay and shall require each subcontractor to pay,travel and subsistence p�yrr�ents to each laborer,worker,and mechanic needed to execute the work For purposes of this Subrecipient Agreement,fhe County is acting in the capacity as a pass- through entity for purposes of disbursing funds to the Subrecipient. The Subrecipient agrees that it will comply with any and all enviranrnental laws and regulations, incl�uding but not limited to CEQA, that are applicable to any and all work, expenditure of funds, activities, or projects arising out af or related to the use c��funds disbursed to Subrecipient by this Agreement. Section 5. CALIFORNIA ENVIRONMENTAL'pUALITY ACT ("CEQA"): NOTICE OF EXEMPTION For purposes o���:fhis Subrecipient Agreement,the County is acting in the capacity as a pass- through entity fc�r purposes�����of disbursing funds to the Subrecipient. The Subrecipient agrees that it will camply with any and all environmental laws and regulations, incl�uding but not li,mited to CEQA, that are'��appli�able to any and all work, expenditure of funds, activities; or prcajects arising out of or related to the use of funds disbursed to Subrecipient by this Agreement. Section 6. COMPENSATION A. Sub�ec�pient shall�be paid $800,000, in advance stages, for the services described in this agreement as prescribed in Sections 2 and 5 of this Subaward. B. Subrecipient shal�l be paid via electronic invoice payment, automated clearing house (ACII), County Credit Card, or Commerce Bank virtual card. ACH payments require submission��of the completed Auditor-Controller ACH/Direct Deposit authorization form within five days of execution of this agreement. C. Subrecipient's violation or breach of agreement terms may result in fiscal penalties, withholding of compensation, or termination of Subaward. Agr.EMB.City of Redding,2325 2049-'75-2023-0 l CC:41160 Page 4 of 15 Section 7. BILLING AND PAYMENT A. Subrecipient shall be paid as follows with County's receipt of a County-approved itemized statement or invoice: (1) $200,000 within 30 days of a fully executed agreement; (2) $200,000 when first progress report on the building of the Housing Units has been received from Subrecipient; (3) $200,000 when second progress report on the building of the Housing Units has been received from Subrecipient; and (4) $200,000 when Subrecipient declares that the building is in final stages which means the Certificate of Completion. B. Should County, or the state or federal government, disallow any amount claimed by Subrecipient, Subrecipient shall reimburse County, or the state'or federal government, as directed by County, or the state or federal government, for such disallowed cost. Section 8. TERM OF SUBAWARD A. This Subaward shall commence as of the last date it has been signed by both Parties and shall end June 30, 2025, �;xcept the item listed in Section 2.A.(5), which shall remain for 20 years. Section 9. TERMINATION OF SUBA�VARD A. If Subrecipient materia�ly fails to perform Subrecipient's responsibilities under this Subaward tc�the satis�ac�ion of County,,or if Subrecipient fails to fulfill in a timely and profession�i manner 5�brecipient's responsibilities under this Subaward, or if Subrecipient vicrlates any of the terms or provisions of this Subaward,then County shall have the right to terminate tY�is Subavvard for cause effective immediately upon the Cc�unty givi�g written notiee tliereof�o Subrecipient. If termination for cause is given '�����by County to Subrecipient and it is later determined that Subrecipient was not in default or the defaul� was excusable, �l�en the notice of termination shall be deemed to have b�en given withaut cause pursuant to paragraph B of this section. B. �t�unty may terminate this Subaward without cause on 30 days written notice to Subrecipient. C. County rnay terminate this Subaward immediately upon oral notice should funding cease or b�materially decreased during the term of this Subaward. D. County's r�ght to terminate this Subaward may be exercised by County's Health and I-Iuman Services Agency("I-II-ISA")Director or any HHSA Branch Director designated by the FIHSA Director. E. Should this Subaward be terminated, Subrecipient shall promptly provide to County any and all finished and unfinished reports,data,studies,photographs,charts,and other documents prepared by Subrecipient pursuant to this Subaward. F. If this Subaward is terminated, Subrecipient shall only be paid for services satisfactorily completed and provided prior to the effective date of termination. Agr.EMB.City of Redding,2325 2049-'75-2023-01 CC:41160 Page 5 of 15 Section 10. ENTIRE SUBAWARD; AMENDMENTS; HEADINGS; EXHIBITS/APPENDICES A. This Subaward supersedes all previous Subawards relating to the subject of this Subaward and constit�utes the entire understanding of the Parties hereto. Subrecipient shall be entitled to no other benefits other than those specified herein. Subrecipient specifically acknowledges that in entering into and executing this Subaward, Subrecipient relies solely upon the provisions contained in this Subaward and no others. B. No changes, amendments, or alterations to this Subaward shall be effective unless in writing and signed by both Parties.However,minor amen�ments,including retroactive, that do not result in a substantial or functional change�����,to the original intent of this Subaward and do not cause an increase to the maximum amount payable under this Subaward may be agreed to in writing between Subrecipient a�ad the County's HHSA Director or any HHSA Branch Director designated by the HI�SA Director, provided that the amendment is in substantially the same fori�at as the County's. standard format amendment contained in the Shasta County Contracts Manual (Administrative Policy 6-101). C. The headings that appear in this Subaward"are for refer`ence purposes only and sha11 not affect the meaning or construction of this Subaward. D. If any ambiguity, inconsistency, or conflict exists or arises between the provisions of this Subaward and the provisions of any of this Subaward's exhibits or appendices,the provisions of this Subaward shall govern. Section 11. NONASSIGNMENT OF SUBAWARD; NON-WAIVER Inasmuch as this Subaward is intended to secure the specialized services of Subrecipient, Subrecipient may not assign,' transfer, dele�at�, or sublet any interest herein without the prior written consent af County. The waiver by County of any breach of any requirement of this Subaward sha11 not be deemed to be a waiver of any other breach. Section 12. EMPLOYMENT STATUS OF SUBRECIPIENT Su�recipient shall, during the entire term of this Subaward, be construed to be an. inde�endent contractor,�nd nothing in this Subaward is intended nor shall be construed to create an employer-ernployee relationship, a joint venture relationship, or to allow County to exerci�e discretion or control over the professional manner in which Subrecipient performs the work or services that are the subject matter of this Subaward; provided, however, that the work or services to be provided by Subrecipient shall be provided in a manner consistent with the professional standards applicable to such work or services. The sole interest of County is to ensure that the work or services shall be rendered and performed in a competent, efficient, and satisfactory manner. Subrecipient shall be fully responsible for payment of all taxes d�ue to the State of California or the federal government that would be withheld from compensation if Subrecipient were a County employee. County shall not be liable far deductions for any amount far any purpose from Subrecipient's compensation. Subrecipient shall not be eligible for coverage under County's workers' compensation insurance plan nor shall Subrecipient be eligible for any other County benefit. Subrecipient must issue W-2 and 941 Forms for income and Agr.EMB.City of Redding,2325 2049-'75-2023-01 CC:41160 Page 6 of 15 employment tax purposes, for all of Consultant's assigned personnel under the terms and conditions of this Subaward. Section 13. INDEMNIFICATION To the fullest extent permitted by law, Subrecipient shall indemnify and hold harmless County, its elected officials, of�cers, employees, agents, and volunteers against all claims, suits, actions, costs, expenses (including, but not limited to, reasonable attorney's fees of County Counsel and counsel retained by County, expert fe,es, litigation costs, and investigation costs),damages,judgments,or decrees arising from�he work or the provision of services undertaken pursuant to this Subaward by Subrecipient, or by any of Subrecipient's subcontractors, any person employed under Subrecipient, or under any subcontractor, or in any capacity, except when the injury or 1c�ss is caused by the sole negligence or intentional wrongdoing of County. Subrecipient sha11 also, at Subrecipient's own expense, defend the County, its elected afficia�s, officers, ernployees, agents, and volunteers,against any claim,suit,action,or proceeding brought against County,its elected officials, officers, employees, agents, and vc�lunteers, arising from t�e work or the provision of services undertaken pursuant to tl�is Subaward by Subrecipient, or any of Subrecipient's subcontractors, any person employed under Subrecipient, or under any Subcontractor, or in any capacity.t Subrecipient sha11 also defend and indemnify County for any adverse determination made by the Internal Reve�ue Service or the State Franchise Tax Board and/or any other taxing'ar regulatory agency and'shall defend, indemnify, and hold harmless County with respect to Subrecip�ent's "independent contractor" status that would establish a liability on County �'or f�ilure �o make social security deductions or contributions or incozrie tax withholding payments,or any�other legally mandated payment. The provisions ��this`paragraph are intencied to be interpreted as broadly as permitted by applicable law. T12is provisi�an shall survive the termination, expiration, or cancellation of this Subaward. ' Section 14. INSIIRANCE i2EQUIREMENTS A.' Prior to cc�mmencing its responsibilities prescribed in this agreement, Subrecipient shall provide to County � Certificate of Self-Insurance, which shall be subject to approval by the County's Risk Manager prior to the effective date of this agreement. B. Coun�y,�understands, acknowledges, and agrees that Subrecipient is self-insured with res�ect to its automobile and general liability exposures and shall remain self- insured��roughout the term of this agreement. C. Subrecipient shall maintain insurance, or participation in program(s) of self- insurance or private insurance,for the 20-year term,in accordance with the I�ousing Units, described in Section 2.A.(5), sufficient to cover structures of this agreement for all types of loss, (other than for County's negligent acts or omissions), including, but not limited to fire, theft, vandalism, and damage caused by acts of nature, in an amount not less than the full replacement value of I-Iousing Units. Agr.EMB.City of Redding,2325 2049-'75-2023-01 CC:41160 Page 7 of 15 Section 15. NOTICE OF CLAIM; APPLICABLE LAW; VENUE A. If any claim for damages is filed with Subrecipient or if any lawsuit is instituted concerning Subrecipient's performance under this Subaward and that in any way, directly or indirectly, contingently or otherwise, affects or might reasonably affect County, Subrecipient shall give prompt and timely notice thereof to County. Notice shall be prompt and timely if given within 30 days following the date of receipt of a claim or 10 days following the date of service of process of a lawsuit. This provision shall survive the termination, expiration, or cancellation of this Subaward. B. Any dispute between the Parties, and the interpretation of tliis Subaward, shall be governed by the laws of the State of California. Any litigation shall be venued in Shasta County. Section 16. COMPLIANCE WITH LAWS; NON-DiSCRIMINATIt?N A. Subrecipient shall observe and comply with all applicable present and future federal laws, state laws, local laws, codes, rules, re,gulations� and/or orders "that relate to the work or services to be provided pursuant ta this Subawar.d. B. Subrecipient shall not discriminate in employment practices or in the delivery of services on the basis of race, color, creed, religion, national origin, sex, age, marital status, sexual orientation, medical condition (inclu�ing cancer, HIV, and AIDS) physical or mental disability, use af family care leave under either the Family & Medical Leave Act or the California Farnil�Rights Act; or on the basis of any other status or conduct protected by law. C. Subrecipient represents that Subre�ipient is in ��compliance with and agrees that Subrecipien�shall continu�e to comply'with the Americans with Disabilities Act of 1990 (42 U.S.C.��� sections 12�101, et seq.), th� Fair Employment and Housing Act (Government Ct�de sectic�ns 12900, et seq.), and regulations and guidelines issued pursu�nt thereto. ' D. '�,No funds o�r���compensati�n received by Subrecipient under this Subaward shall be used � by Subrecipient for sectarian �orship, instruction, or proselytization. No funds or compensation r�ceived by �ubrecipient under this Subaward shall be used to provide direct, immediate,;ar substantial support to any religious activity. E. In addition to an� other provisions of this Subaward, Subrecipient shall be solely responsible for any�and all damages caused, and/or penalties levied, as the result of Subrecipient noneompliance with the provisions of this section. Section 17. ACCESS TO RECORDS; RECORDS RETENTION A. County, federal, and state officials shall have access to any books, documents, papers, and records of Subrecipient that are directly pertinent to the subject matter of this Subaward for the purpose of auditing or examining the activities of Subrecipient or County. Except where longer retention is required by federal or state law, Subrecipient shall maintain all records for five years after County makes final payment hereunder. This provision shall survive the termination, expiration, or cancellation of this Subaward. Agr.EMB.City of Redding,2325 2049-'75-2023-01 CC:41160 Page 8 of 15 B. Subrecipient shall maintain appropriate records to ensure a proper accounting of all funds and expenditures pertaining to the work performed or the services provided pursuant to this Subaward. Subrecipient shall maintain records providing information that account for all funds and expenses related to the provision of services provided pursuant to this Subaward. Access to these records shall be provided to County during working days, 8:00 a.m. to 5:00 p.m. and at other times upon reasonable notice by County, and upon request of state and federal agencies charged with the administration of programs related to the work or services to be provided pursuant to this Subaward. C. Subrecipient agrees to accept responsibility for receivrng, replying to, and/or complying with any audit exception by appropriate federal, 's�ate, or County audit directly related to the provisions of this Subaward. Subreci�ient agrees to repay County the full amount of payment received for duplicate billings, erroneous billings, audit exceptions,or false or deceptive claims. Subrecipient agrees that County may withhold any money due and recover through any appropriate;method any money erroneously paid under this Subaward if evidence exists of less than full cc�mpliance with this Subaward including, but not limited to, exercisin�g a right of set-r�ff against any compensation payable to Subrecipienz. Section 18. COMPLIANCE WITH CHILD, FAMILY, AND SPOUSAL SUPPORT REPORTING OBLIGATIONS Subrecipient's failure to comply with �ta'te and federal child, family, and spousal support reporting requirements regarding Subrecipier�t's employees� or failure to implement lawfully served wage and earnings assignment orders��or notices of assignment relating to child, family, and �pousal support obligations sha�l constitute a default under this Subaward. Subrecipient's failure to cure'�uch default within 90 days of notice by County shall be grounds �or termina�ion of this Sub�ward. Section 19. LICENSES AND PERMITS Subrecipient, and Sub's c�fficers, emplayees, and agents performing the work or services required by thi� Subaward,'��shall possess and maintain all necessary licenses, permits, certificates, and credentials required by the laws of the United States, the State of Ca�ifornia, the County of Shasta, and all other appropriate governmental agencies, inclucling any certification and credentials required by County. Failure to maintain the licenses, �ermits, certificates, and credentials shall be deemed a breach of this Subaward and constiitutes groun�s for the termination of this Subaward by County. Section 20. PERF(}RMANCE STANDARDS Subrecipient shall perform the work or services required by this Subaward in accordance with the industry and/or professional standards applicable to Subreeipient's work or services. Agr.EMB.City of Redding,2325 2049-'75-2023-01 CC:41160 Page 9 of 15 Section 21. CONFLICTS OF INTEREST Subrecipient and Subrecipient's officers and employees shall not have a financial interest, or acquire any financial interest, direct or indirect, in any business, property, or source of income that could be financially affected by or otherwise conflict in any manner or degree with the performance of the work or services required under this Subaward. Section 22. NOTICES A. Except as provided in section 7.C. of this Subaward (oral nofic.e of termination due to insufficient funding), any notices required or permitte� pursu�nt to the terms and provisions of this Subaward shall be given to the appropriate Party at the address specified below or at such other address as the �?arty shall specify in writing. Such notice shall be deemed given: (1) upon personal c�e]ivery; or (�) if sent by first class mail,postage prepaid, two days after the date c�f mailing. If to County: Branch Director HHSA Regional Services Branch Attn: Contracts Unit � 2430 Breslauer Way Redding, CA 96001 Phone: 530-245-7638 Fax: 530-225-5443 If to Subrecipient: Nicole Smith Community Development Manager City of Redding ''!P.O. Box 496�71 ' Redding, CA 9b049 P1�one: 530-225-4336 And CC: City Manager City of Redding P.O. Box 496071 I�edding, CA 96049 Phone: 530-225-4060 Fax: 530225.4044 B. Any aral notice autharized by this Subaward shall be given to the persans specified in Section 20.A. and shall be deemed to be effective immediately. C. Unless otherwise stated in this Subaward, any written or oral notices on behalf of the County as provided for in this Subaward may be executed and/or exercised by the County Executive Officer or designee. Agr.EMB.City of Redding,2325 2049-'75-2023-01 CC:41160 Page 10 of 15 Section 23. SUBAWARD PREPARATION� It is agreed and understood by the Parties that this agreement has been arrived at through negotiation and that neither Party is to be deemed the Party which created any uncertainty in this Subaward within the meaning of section 1654 of'the Civil Code. Section 24. COMPLIANCE WITH POLITICAL REFORM ACT Subrecipient shall comply with the California Political Reform Act (Government Code, sections 81000, et .req.), with all regulations adopted by the Fair Political Practices Commission pursuant thereto, and with the County's Conflict of Inter'est Code,with regard to any obligation on the part of Subrecipient to disclose financial interests and to recuse from influencing any County decision which may affe.ct Sub`recipient's financial interests. If required by the County's Conflict of Interest Code,'Subrecipient shall comply with the ethics training requirements of Government Code se�t,io�s 53234, et se�. Section 25. PROPERTY TAXES Subrecipient represents and warrants that Subrecipient, on �he date of execution of this Subaward, (1)has paid all property taxes far which Subrecipient is obligated to pay, or(2) is current in payments due, under any approved property tax payment arrangement. Subrecipient shall make timely payment c�f�11 property taxes at all times during the term of this Subaward. Section 26. SEVERABILITY If any portion of this'Subaward or application thereof to any person or circumstance is declared invali� by a court of competent jurisdiction or if it is found in contravention of any federal or state statute ar regulation or County ordinance, the remaining provisions of this Subaward, or the�pplication tl�ereof, shall not be invalidated thereby and shall remain in full farce and effecti to the extent that the provisions of this Subaward are severable. Section 27. COUNTY'S;RIGHT OF SETOFF To�'�Che fullest extent permitted by law, County shall have the right but not the obligation, to setoff,;in whole or in part, against-any compensation owed to Subrecipient or any of its subsidiaries under any contract with the County, any amount of any Federal or State audit liability owed by or claimed or asserted against the County or any amounts owed to County by Subrecipient���or its�subsidiaries. Section 28. COUNTERPARTS/ELECTRONIC,FACSIMILE,AND PDF SIGNATURES This agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument. Each Party of this agreement agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ("CUETA") Cal. Civ. Code §§ 1633.1 to 1633.17), for executing this agreement. The Parties further agree that the electronic signat�ures of the Parties included in this agreement are intended to authenticate this writing and to have the same force and effect as manual Agr.EMB.City of Redding,2325 2049-'75-2023-01 CC:41160 Page 11 of 15 signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time. The CUETA authorizes use of an electronic signature for transactions and contracts among Parties in California, including a government agency. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the Parties. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (i) of Section 1633.2 of t1�e Civil Code. Facsimile signatures or signatures transrr�itted via pdf document shall be tre�ted as originals for all purposes. SIGNATURE PAGE FOLLOWS Agr.EMB.City of Redding,2325 2049-'75-2023-01 CC:41160 Page 12 of 15 IN WITNESS WHEREOF, County and Subrecipient have executed this Subaward on the dates set forth below. By their signat�ures below, each signatory represents they have the authority to execute this Subaward and to bind the Party on whose behalf their execution is made. COUNTY OF SHASTA Date: PATRICK JONES, CHAI� Board of Supervisors County of Shasta � State of California ATTEST: Mary Williams Acting Clerk of the Board of Supervisors By: Deputy Approved as to form: RUB1N E. CRUSE, JR County Counsel By: Date: Name: Alan B. Cox �� Title: Senior De�uty County Counsel RISK MANAGEMENT APPROVAL By: � Date: Name: James Johnson ' Title: Risk Management Anal, sy t III SUBRECIPIENT—City of Redding By: Date: Name: Michael DaquistoTitle: Mayor By: Date: Name: Title: Tax I.D.#: On File Agr.EMB.City of Redding,2325 2049-'75-2023-01 CC:41160 Page 13 of 13 STATE OF CALIFORNIA-BUSINESS,CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVE�OPMENT DIVISION OF PO�ICY DEVE�OPMENT �� 2020 W.EI Camino Avenue,Suite 500,95833 � P.O.Box 952054 ���� � �,,,, Sacramento,CA 9A252-205�4 � (916)263-2771 /FAX(916)263-2763 >• wwvu.hcd.c�.qov July 26, 2022 MEMORANDUM FOR: All Metropolitan Planning Organizations FROM: Megan Kirkeby, Deputy Director Division of Housing Policy Development SUBJECT: Notice of Funding Availability and Final Guidelines — Metropolitan Planning Organization Allocation Regional Early Action Planning Grant (REAP 2.0) The California Department of Housing and Community Development (HCD), in collaboration with the Office of Planning and Research (OPR), the Strategic Growth Council (SGC), and the State Air Resources Board (CARB), is pleased to release this Notice of Funding Availability (NOFA) for approximately $510,000,000 for the Regional Early Action Planning Grant Program of 2021 (REAP 2.0). The principal goal of REAP 2.0 is to make funding available to Metropolitan Planning Organizations (MPOs) and other regional entities for Transformative Planning and Implementation Activities that meet Housing and equity goals, reduce Vehicle Miles Traveled (VMT) Per Capita, and advance implementation of the region's Sustainable Communities Strategy (SCS) or Alternative Planning Strategy, as applicable. REAP 2.0 funding will be released in three separate allocations: (1) MPO Direct Allocation, (2) Tribal and Rural Allocation and (3) Higher Impact Transformative Allocation. This Notice of Funding Availability (NOFA) of approximately $510,000,000 addresses the (1) MPO Direct Allocation and is released concurrently with the (2) Tribal and Rural Allocation NOFA. The (3) Higher Impact Transformative Allocation NOFA is anticipated at a later time in 2022. The following Guidelines address allocations for the MPO Direct Allocation and are made available as a portion of the �ocal Government Planning Support Grants Program pursuant to Chapter 3.15 of Health and Safety Code (Sections 50515.06 to 50515.10) (Chapter 111, Statutes of 2021). In order to be eligible for grant funding, the applicant must submit a copy by email to: ��F�2Q21(�h�d.��. �v. For the (1) MPO Direct Allocations, applications will be accepted on an Over-the-Counter (OTC) basis as of the date of this NOFA through December 31, 2022. The Department encourages early applications. REAP 2.0 applications, forms, and instructions are available on the Department's website on the �R� vv�bp�c��. If you have questions regarding this NOFA, please email the Department at �E�P2021 C�h�d.�a.�. For future notifications, please use the Department's email notification sign up at ��b���ib�,���c�v�. ■ ■ e � ona ar c � on . ann � n ran s o . � � � State of California Governor Gavin Newsom � � ���a�������,� « �� ���� � , � �' ���� :? � �� �� ����� a,:,,�"�',';�,��„��' x„r��i�u���"tf����..;. . . ��'��'. �� '�� � � . P�39 :�.z" ��.. ��("A�$ ����' .�t""���� � . '�� , �#}r +�.� � �� 4'73.� ..�, �auN� �. � �"5 � � � � !'�� �"^ � y,��� � � , r � l� � m � � � �� � � � �� � � � I�� � �� w.�� �������CA�����'��� � �19!� S�E�C�"U V��;C�S �CU,�t�'C� July 2022 Website: htt��al�wv�vv.h�d.��,���rl�r��t�-f��ds�q/��#����f�ar�dir�_ /r���a�o�h�rr�l EmaiL R�A�'2021 C�h�d.��,��v Table of Contents Section 100: Introduction.......................................................................................................4 Section 101: REAP 2.0 Program Background......................................................................4 Section �102: Scope and Authority.........................................................................................4 Section 200: REAP 2.0 Goals, Objectives, Threshold Requirements and Eligible Uses..6 Section 201: REAP 2.0 Goals.................................................................................................6 Section 202: REAP 2.0 Objectives.........................................................................................6 Section 203: Threshold Requirements .................................................................................8 Section 204: Eligible Uses ...................................................................................................10 Section 205: Ineligible Uses.................................................................................................12 Section 300: Applicant and Application Provisions..........................................................13 Section 301: Application Requirements and Contents .....................................................13 Section 302: Application Submittal.....................................................................................14 Section 400: Metropolitan Planning Organization Allocation...........................................14 Section 401: Eligible Applicants..........................................................................................14 Section 402: Award Amounts..............................................................................................15 Section 403: Advance Allocation ........................................................................................15 Section 404: Application Review.........................................................................................16 Section 405: Evaluation of Applications.............................................................................16 Section 406: Suballocation ..................................................................................................19 Section 500: Administration ................................................................................................20 Section 501: Grant Execution and Term.............................................................................20 Section 502: Accounting and Records ...............................................................................20 Section503: Invoicing..........................................................................................................21 Section504: Audits...............................................................................................................21 Section 505: Remedies of Non-performance .....................................................................22 Section506: Reporting.........................................................................................................23 Section 600: Right to Modify or Suspend Guidelines and Final Decision Making .........24 Attachment1: Statute...........................................................................................................25 Attachment2: Definitions ....................................................................................................36 Attachment 3: Award Amounts by Eligible Applicant.......................................................41 Attachment 4: Applying Units of Measurement.................................................................42 Section 100: Introduction The REAP 2.0 Program is funded in the amount of$600 million from the State General Fund. The Regional Early Action Planning Grants of 2021 will be administered by the California Department of Housing and Community Development (HCD) (Department), in collaboration with the Governor's Office of Planning and Research (OPR), the Strategic Growth Council (SGC), and the California Air Resources Board (CARB). (Referred hereafter collectively as "State Collaborative Partners".) A majority of the funds (85 percent) will be allocated directly to the state's Metropolitan Planning Organizations (MPOs). The remaining funds are split into a set aside for non- MPO regions for smaller counties and Tribal Entities, as well as a Higher Impact Transformative Allocation for all Eligible Entities. Section 101: REAP 2.0 Program Background California is committed to a future where we all have the option to live closer to our jobs, services, and daily destinations. We can achieve this future through more Housing options and affordability in nearby neighborhoods, which includes transportation options so we can walk our kids to school, ride our bikes to work, or take transit. REAP 2.0 is a key part of the state's strategic investments toward this more sustainable, resilient, and inclusive future for people in all areas of the state. REAP 2.0 builds on the success of 2019's REAP program but expands the focus by integrating Housing and climate goals, and allowing for broader planning and implementation investments, including infrastructure investments that support future Housing development. REAP 2.0 is explicitly intended to meet multiple objectives — Infill development, Housing for all incomes, Vehicle Miles Traveled (VMT) reduction, and Affirmatively Furthering Fair Housing (AFFH) in ways that lead to transformative Policy Outcomes and accelerate the implementation of regional and local plans to achieve these goals. REAP 2.0 provides funds to regional governments to accelerate Housing production and facilitate compliance with the 6t'' cycle of the Housing Element, including Regional Housing Needs Assessment. In addition, REAP 2.0 is specifically designed to provide MPOs and other Eligible Entities with tools and resources to help implement and advance plans, primarily by furthering the Sustainable Communities Strategies (SCS) adopted as part of Regional Transportation Plans to pursue greenhouse gas emission reduction targets through land use and transportation strategies. Section 102: Scope and Authority These Guidelines are authorized pursuant to Chapter 3.15 of Health and Safety Code sections 50515.06 to 50515.10 and implements, interprets, and makes statute specific for purposes of implementing REAP 2.0. These Guidelines establish terms, conditions, forms, procedures, and other mechanisms as the Department deems necessary to exercise the powers and perform the duties conferred by Chapter 3.15. 4 The matters set forth herein are regulatory mandates, and are adopted in accordance with the authorities set forth below: Quasi-legislative regulations ... have the dignity of statutes ... [and]... delegation of legislative authority includes the power to elaborate the meaning of key statutory terms... Ramirez v. Yosemite Water Co., 20 Cal. 4th 785, 800 (1999). Further, the Department and State Collaborative Partners may implement REAP 2.0 through the issuance of forms, guidelines, and one or more NOFAs, as the Department deems necessary, to exercise the powers and perform the duties conferred on it by this Chapter 3.15 of Health and Safety Code. Any forms, guidelines, and NOFAs adopted pursuant to this section 50515.10 are specifically exempted from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with section 11340) of Part 1 of Division 3 of Title 2 of the Gov. Code). (Health and Safety Code section 50515.10, (h).) The Department reserves the right, at its sole discretion, to suspend or amend the provisions of these Guidelines in collaboration with the State Collaborative Partners, including, but not limited to, grant award amounts. 5 Section 200: REAP 2.0 Goals, Objectives, Threshold Requirements and Eligible Uses Section 201: REAP 2.0 Goals REAP 2.0 goals include: (A)Invest in ���ir� , planning, and Infill Housing-supportive infrastructure across the entire state in a manner that reduces VMT, increases Housing affordability, and advances equity, consistent with all of the following: 1. Advancing the State Planning Priorities, as described in Section 65041.1 of the Government Code; 2. Affirmatively Furthering Fair Housing pursuant to Section 8899.50 of the Government Code; 3. Facilitating Housing Element compliance and progress for the sixth cycle Regional Housing Needs Assessment pursuant to Section 65302 of the Government Code prepared in accordance with Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code; and, 4. Advancing and implementing the region's SCS, as described in paragraph (2) of subdivision (b) of Section 65080 of the Government Code, or Alternative Planning Strategy, as described in paragraph (2) of subdivision (b) of Section 65080 of the Government Code, as applicable to achieve climate goals. Section 202: REAP 2.0 Objectives REAP 2.0 Objectives include: (A)Accelerating Infill Development that Facilitates Housing Supply, Choice, and Affordability (B)Affirmatively Furthering Fair Housing (C)Reducing Vehicle Miles Traveled (A)Accelerating Infill Development that Facilitates Housing Supply, Choice, and Affordability 1. Accelerating Infill development near jobs and other key destinations to support increasing Housing choices and affordability that effectively reduce VMT and greenhouse gas emissions. 2. Eligible Entities must describe how Proposed Uses prioritize development that increases Housing choice and affordability at Infill sites. Proposed Uses must have Housing affordability components that serve Low- and Moderate-income Households. 3. Affordable Housing development programs —which may involve predevelopment costs (e.g., studies, land acquisition, entitlements), large expenditures and capital investments — are eligible uses if the programs accelerate the supply of long-term Affordable Housing for �ower and moderate- 6 income Households and commit to development within a reasonable time frame (e.g., within 5 years of the expenditure deadline). (B)Affirmatively Furthering Fair Housing (AFFH) 1. Proposed Uses must combat discrimination, overcome patterns of segregation, and foster equitable and inclusive communities. 2. Proposed Uses must include meaningful actions, that taken together, address significant disparities in Housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, and transforming racially and ethnically concentrated areas of poverty into areas of opportunity pursuant to Government Code section 8899.50. 3. Proposed Uses must support regional and local efforts that work towards ensuring all people have full and equal access to opportunities enabling them to lead healthy lives. 4. Actions to Affirmatively Further Fair Housing may include, but are not limited to: i. Enhancing Housing mobility strategies that remove barriers to Housing, Housing-supportive infrastructure, and transportation in areas of opportunity. ii. Encouraging development of new Affordable Housing in high resource areas by promoting Housing, infrastructure, increased transportation options, and affordability in areas of high opportunity and outside of areas of concentrated poverty. iii. Improving place-based strategies to encourage community revitalization. This includes preservation of existing Affordable Housing that involves approaches focused on conserving and improving assets in areas of lower-opportunity and concentrated poverty, such as: targeting investments in neighborhood revitalization, preserving or rehabilitating existing Affordable Housing, improving infrastructure, schools, employment, parks, transportation, and other community amenities. iv. Protecting existing residents from displacement and preserving Housing choices and affordability in areas of lower- or moderate-opportunity and concentrated poverty. 5. Eligible Entities are required to consider AFFH principles and equity in all Proposed Uses. Any Proposed Uses that may have a negative impact on AFFH objectives must have appropriate mitigation efforts. Recipients shall take no action that is materially inconsistent with AFFH. 6. Eligible Entities are required to pursue geographic equity in how the application(s) disburse funding across the region. 7. Eligible Entities shall target funding to benefit Disadvantaged and Historically Underserved Communities. 8. Suballocations must address local, unique equity priorities. (C)Reducing Vehicle Miles Traveled 1. The REAP 2.0 Program provides for investments to support Housing planning and production in Infill areas that reduce VMT towards helping the state meet multiple goals. Eligible Entities must explain how each Proposed Use promotes development and aligns Housing production in Infill locations consistent with the state's climate targets and goals discussed in the ��l�f�r�a� �lir��t� �h�r��� ���pir� Pl�r�. 2. Proposed Uses shall focus on the VMT-reducing elements of the SCS, as 7 applicable, to achieve and maintain the region's greenhouse gas emission reduction targets by supporting or implementing action-oriented plans, policies, and investment strategies broadly described as: i. Land Use Planning, Policies, and Investment Strategies: Encourage Infill development that facilitates Housing supply, choice, and affordability and is serviced by existing and planned expansions of a multimodal transportation system. ii. Transportation Planning, Policies, and Investment Strategies: Increase travel options to homes, jobs, services, and other key destinations that provide, support, or enhance Multimodal Communities and reduce the number or length of vehicle trips. 3. Eligible Entities are encouraged to pursue uses that support new Housing development and shift travel away from driving by implementing or supporting pedestrian, bicycle, transit, and other alternative transportation programs. Section 203: Threshold Requirements (A)Significant Beneficial Impact 1. Applicants must demonstrate that each Proposed Use advances all REAP 2.0 Program goals and objectives, meets the definition of a Transformative Planning and Implementation Activity, and provides a significant beneficial impact. 2. Significant beneficial impacts must lead to substantial changes in land use patterns and travel behaviors. In demonstrating significant beneficial impacts, applicants may consider rates of change (e.g., percent increase over a baseline), the magnitude of impact relative to variables or targets, the proportion of need achieved, and the impact relative to past trends, policies, and practices. Variables or targets may include but are not limited to benefitting households by income group; Regional Housing Needs Assessment; Housing units (new construction, preservation/conservation, and rehabilitation); density; infrastructure; infrastructure capacity and accessibility; public space; community amenities; investments; Vehicle Miles Traveled reduction goals or targets; regional or local equity policies and programs included in an adopted RTP/SCS; and GHG reduction goals or targets. 3. Applicants must explain how each Proposed Use demonstrates a nexus to all REAP 2.0 objectives through Policy Outcomes, provide a reasonable and verifiable methodology, and utilize forms in a manner prescribed by the Department and State Collaborative Partners. 4. Proposed Uses may combine eligible uses. Combined eligible uses must demonstrate a reasonable relationship to each other, including timing and completion. 5. Proposed Uses may combine eligible uses with other non-REAP 2.0 efforts including planning and implementation (e.g., other funding sources). Proposed Uses that combine eligible uses with non-REAP 2.0 efforts must demonstrate a reasonable relationship to each other, including timing and completion. 8 6. Where instructed, applicants must provide clear evidence that demonstrates a nexus between each Proposed Use and REAP 2.0 objectives, utilizing numeric metrics, targets, outputs, or other units of ineasurement that can be measured and evaluated as described by these Guidelines (See Attachment 4: Examples of Units of Measurement). Applicants may propose other units of ineasurement in consultation with the Department and State Collaborative Partners; such other measurements may be subject to a greater level of scrutiny. (B)Equitable Targeted Outreach 1. Eligible Entities must conduct community and stakeholder outreach as part of the development of their application for funds. 2. Eligible Entities must use outreach to develop priorities, Proposed Uses, funding amounts, the appropriate blend of planning and implementation, the amount retained by the Eligible Entity versus suballocations, and various other program components. 3. Outreach must proactively employ a variety of inethods. Eligible Entities must conduct, and must document, targeted outreach to Disadvantaged and Historically Underserved Communities, including Tribal Entities. 4. Eligible Entities shall explain how outreach was incorporated into the application and explain how the Proposed Uses reflect the input received. Eligible Entities are encouraged to provide responses to stakeholder and public input to provide for transparency and demonstrate how input was incorporated into planning and implementation activities. 5. Eligible Entities must use a variety of inethods to reach individuals and organizations representing pertinent interests such as Housing, transportation, infrastructure, climate change, Infill development and equity. Methods may consider community-based surveys and participatory research, advisory or shared decision-making bodies, interviews, focus groups, community and stakeholder meetings, public and quasi-public meetings, community benefit agreements, and committees with representatives of pertinent special interests and neighborhoods. 6. Eligible Entities must make drafts of proposed approaches available to the public with sufficient time (e.g., at least 21 days) to comment. 7. Eligible Entities must conduct outreach throughout the program development and implementation process. This includes outreach in advance of developing Proposed Uses and approaches, in the early stages of program development, throughout program development, and during program implementation. 8. Eligible Entities must employ outreach that is unique to the REAP 2.0 Program. Eligible Entities may utilize closely related outreach efforts but must not solely rely on those efforts. 9. Outreach methods must consider language access and other potential barriers to providing input. 10.Outreach may include coordination with Eligible Entities (including Tribal Entities) within the same region or in other regions. Eligible Entities may wish to consider the potential for joint activities and the coordination of Housing and transportation planning across regions. 9 11.Outreach must include effective and meaningful methods to gather and consider input and partnership with Tribal Entities. Methods must demonstrate a diligent effort to consult with Tribal Entities. Examples include acknowledgement of outreach, demonstration of consultation and incorporation of Tribal interest in priority setting and Proposed Uses. Section 204: Eligible Uses (A)Activities generally may include: 1. Technical assistance, planning, staffing, consultant needs (program-related), 2. Administration costs (see 204(J)), 3. Outreach and engagement activities (see 204(I)), 4. Eligible uses described in 204(E) that meet one or more of the following categories of allowable uses: i. Accelerating Infill Development that facilitates Housing supply, choice, and affordability through various planning programs, services, or Capital Expenditures ii. Realizing Multimodal Communities through programs, plans, and implementation actions iii. Shifting travel behavior by reducing driving through programs, ordinances, funds, and other mechanisms, and iv. Increasing transit ridership through funding, implementation actions, and planning (B)In consultation with the Department and the State Collaborative Partners, applicants may determine the blend of planning and implementation activities, but there should generally be a greater emphasis on implementation activities. The blend of planning and implementation may consider the extent to which planning needs remain in the region after other local, state, and federal planning investments including but not limited to REAP 1.0, SB 2 Planning Grants, LEAP, SB 1 Sustainable Communities Grants and Homeless Housing, Assistance and Prevention (HHAP) Local Homelessness Actions plans. The blend of planning and implementation may also consider Housing and infrastructure needs of the communities and overall region, consideration of outreach and priority setting, including to disadvantaged communities, overall impact of proposed projects on Housing production and VMT reduction, advancing the implementation of VMT- reducing elements of the SCS or Alternative Planning Strategy, and AFFH. Applicants that dedicate at least 70% of funding to implementation activities are generally not subject to consultation with the Department and State Collaborative Partners regarding the blend of planning and implementation activities. (C)The collection of eligible uses in the application should be integrated wherever possible and should lead to greater impact when implemented together. (D)Eligible uses may be coupled with other verifiable and related activities being undertaken that will be completed by the applicant or in coordination with other entities as demonstrated by a formal written agreement or other documentation (e.g., resolution) to the satisfaction of the Department 10 (E)Eligible uses could include but are not limited to: 1. Accelerating Infill Development that facilitates Housing supply, choice, and affordability: a. Affordable Housing development programs —which may involve predevelopment costs (e.g., studies, land acquisition and entitlements), large expenditures and capital investments — are eligible uses if the programs accelerate the supply of long-term Affordable Housing for Lower-Income and Moderate-Income Households in Infill areas, remove barriers to encourage development and commit to development within a reasonable time frame (e.g., within 5 years of the expenditure deadline). Affordable Housing developments can include mixed-uses (e.g., a minimum of 65 percent total floor area is residential use), and Affordable Housing units that are part of mixed income development programs. b. Rezoning and guiding development by updating planning documents, development standards, and zoning ordinances, including general plans, community plans, specific plans, SCS, and local coastal programs. All uses that include the creation of planning documents must be accompanied by a commitment to adopt by the expenditure deadline. c. Revamping local planning processes to accelerate Infill development that facilitates Housing supply, choice, and affordability. d. Completing environmental clearance to eliminate the need for project- specific review for Infill development that facilitates Housing supply, choice, and affordability. e. Establishing and funding an Affordable Housing catalyst fund, trust fund, or revolving loan fund for location efficient projects. f. Performing infrastructure planning and investing in upgrading infrastructure, including for sewers, water systems, transit, active transportation, or other public facilities necessary to enable reduction in Per Capita VMT and accelerate Infill development that facilitates Housing supply, choice, and affordability. 2. Realizing Multimodal Communities: a. Establishing and implementing a vision-zero policy and program, a safety plan, and a slow streets program. b. Developing bicycle and pedestrian infrastructure plans and other multimodal plans or policies. c. Investing in infrastructure projects and other programs to expand active transportation and implement bicycle or pedestrian plans. d. Producing multimodal corridor studies associated with developing specific planning documents or implementation actions. 3. Shifting travel behavior through reducing driving: a. Studying roadway pricing feasibility and implementing road pricing programs. b. Funding the establishment of a local VMT impact fee or catalyzing a regional VMT mitigation bank (seed funding for mitigation is ineligible). c. Funding and implementing parking and transportation demand management programs or ordinances. d. Accelerating Infill Housing production near jobs, transit, and 11 resources. 4. Increasing transit ridership: a. Funding and implementing actions to establish more seamless regional transit systems between and across communities, including establishing common fares systems, sync transit routing systems and schedules, service design, and wayfinding to connect residential neighborhoods with employment centers and other key destinations. b. Developing and implementing multimodal access plans to and from transit facilities. c. Planning for additional Housing near transit. All uses that include the creation of planning documents must be accompanied by a commitment to adopt by the expenditure deadline. (G)Eligible activities under technical assistance may be broadly construed but must demonstrate a clear and significant nexus to all REAP 2.0 objectives. (H)Eligible activities must have a significant geographic or region-wide benefit and are not intended to fund projects that are relatively small in scope. (1) Outreach and engagement activities are eligible as priority setting and components of other Proposed Uses. Program outreach shall not be a stand-alone Proposed Use. (J) Recipients shall use no more than 5 percent of the allocation(s) for costs related to the administration of the activity(ies) for which the allocation(s) were made. Staff and overhead costs directly related to carrying out Proposed Uses are not administrative costs. (K) Tribal Entities or Tribal Governments, as applicable, may propose eligible uses on all types of Tribal lands (e.g., Fee land within Reservation or Rancheria, land held in trust by the Bureau of Indian Affairs, Fee land outside Reservation or Rancheria, etc.) as long as site control is demonstrated. (L) All Proposed Uses must AFFH. Section 205: Ineligible Uses (A)Ineligible uses are uses inconsistent with REAP 2.0 goals and objectives. (B)Ineligible uses apply to suballocations. (C)Ineligible uses include but are not limited to: 1. Roadway or highway capacity increases 2. Advocacy work (direct lobbying for specific bills or local propositions) 3. Bonus payments of any kind 4. Ceremonial expenses 5. Commission fees 6. Real estate brokerage fees or expenses 7. Services, materials, or equipment obtained under any other state program 8. Stewardship of legal defense funds 9. General meetings that do not specifically discuss or advance implementation of awarded REAP 2.0 funds 10.Using funds for mitigation activities already mandated by local or state governing bodies or agencies 11.Ongoing expenses (e.g., routine maintenance or operations of transportation infrastructure associated with transit service expansion) 12.Costs associated with automobile or motorcycle parking (excluding EV 12 charging infrastructure). Proposed Uses with a surface parking component are not eligible. 13.Costs associated with infrastructure related to fossil fuels, including connections to natural gas infrastructure 14.Costs associated with ongoing provisions of internet service 15.In lieu fees for local inclusionary Housing programs 16.Updates to the RTP 17.Organizational membership fees 18.Street construction or repair to benefit vehicular traffic (D)Other items unrelated to the REAP 2.0 Program or application. Section 300: Applicant and Application Provisions Section 301: Application Requirements and Contents (A)Until December 31, 2022, or as otherwise prescribed, an Eligible Entity may request an allocation of funds by submitting an application, in the form and manner prescribed by the Department, and developed with the Department and State Collaborative Partners, that includes all of the following information: 1. An identification of priorities set by outreach that reflects REAP 2.0 goals and objectives and considers all of the following: i. Inter- and intra-regional coordination, ii. Geographic equity, iii. Appropriate blends of planning and implementation activities, iv. Amount retained by the Eligible Entity versus suballocations, v. Eligible uses (e.g., technical assistance and other activities, Accelerating Infill Development that facilitates Housing supply, choice, and affordability), and vi. The goals of suballocations in a manner that addresses the unique needs of the region related to Housing, land use, transportation, climate change, equity, and other planning priorities. 2. An allocation budget for the funds; 3. The amounts retained by the Eligible Entity and any suballocations; 4. An explanation of how the Proposed Uses will meet the definition of Transformative Planning and Implementation Activities and, as applicable, constitute high-impact and innovative projects; 5. An explanation of how the Proposed Uses will implement and achieve Housing goals that also result in Per Capita VMT reductions in furtherance of the region's SCS or Alternative Planning Strategy, as applicable; 6. Sufficient evidence that demonstrates a nexus between a Proposed Use and meeting all REAP 2.0 goals and objectives. 7. An explanation of how each Proposed Use has a significant geographic or region-wide benefit for Disadvantaged and Historically Underserved Communities. 8. An explanation of how each Proposed Use focuses implementation in areas that satisfy an applicable definition of Infill development (See Attachment 2: Definitions). 9. The application shall reference one or more of the following categories of allowable uses of the funds: 13 i. Accelerating Infill Development that facilitates Housing supply, choice, and affordability. ii. Supporting residents through realizing Multimodal Communities. iii. Reducing driving through shifting travel behavior. iv. Increasing transit ridership. 10.An explanation of the targeted outreach the MPO has conducted to Disadvantaged and Historically Underserved Communities and how that outreach was incorporated into the Proposed Uses; and 11.An explanation of how Proposed Uses will advance equity by benefiting Disadvantaged and Historically Underserved Communities. 12.The link to the applicant's webpage where land use maps and Vehicle Miles Traveled generation maps, produced in the development of its adopted SCS are publicly available. (B)The Department and State Collaborative Partners may request additional information and documentation as appropriate. (C)The Department and State Collaborative Partners may consult with and gather relevant information from any individual, entity, or public agency. Section 302: Application Submittal (A)An applicant must submit a complete and signed application under the penalty of perjury by email to ���2021 ,h�da��.��� . (B)Applications must be on Department forms and cannot be altered or modified by the applicant. REAP 2.0 applications and forms are available on the ����rfirr����'� w������. (C)The Department and State Collaborative Partners encourage early applications and will accept applications up to the date noted in this Notice of Funding Availability. Section 400: Metropolitan Planning Organization Allocation Section 401: Eligible Applicants (A)Eligible applicants are limited to MPOs and Councils of Governments (COGs) listed in Health and Safety Code section 50515.08, subdivision (a), paragraphs (1) to (6). These include: the Metropolitan Transportation Commission, the Sacramento Area Council of Governments, the San Diego Association of Governments, the Southern California Association of Governments, the Association of Monterey Bay Area Governments, the San �uis Obispo Council of Governments, the Santa Barbara County Association of Governments, the Fresno Council of Governments, the Kern Council of Governments, the Kings County Association of Governments, the Madera County Transportation Commission, the Merced County Association of Governments, the San Joaquin Council of Governments, the Stanislaus Council of Governments, the Tulare County Association of Governments, the Butte County Association of Governments, Shasta Regional Transportation Agency, and the Tahoe Regional Planning Agency. (B)Eligible applicants that are COGs may include a single or multicounty Council of 14 Governments. (C)Eligible applicants may partner through legally binding agreements with other forms of governments or entities where the proposal will have a direct effect on land-use, transportation, or development within areas of influence of the eligible applicant. This includes, but is not limited to, partnerships with other localities, regional governments, Housing authorities, school districts, special districts, community-based organizations, Tribal Entities or any duly constituted governing body of an Indian Reservation or Rancheria. Applicants forming partnerships must submit separate, completed, and signed application packages, including resolutions and a copy of the signed agreement between partners. Applicant partners may not submit an application on behalf of the eligible applicant. Section 402: Award Amounts (A)The maximum amount that an eligible applicant may receive shall be based on the most recent Department of Finance P-2A County Population Projections as of July 1, 2021. (B)Amounts shall be calculated based on aggregate 2030 projected population per each eligible applicant as a percentage of projected 2030 statewide population. See Attachment 3. (C)Of the funds available, the amounts for each applicant will be determined according to population-based proportions as described under 402(B). Section 403: Advance Allocation (A)On or after January 1, 2022, an Eligible Entity may request up to 10 percent of funding available in advance of their full application. (B)Any proposed activity for the advanced funding must be used to develop and accelerate implementation of the full application. While funding to accelerate implementation of the full application may be requested, requests to begin program implementation will be subject to scrutiny of full application review standards and require consultation with the Department and State Collaborative Partners. (C)Advanced funding allocations must be used to assist in the evaluation of priorities and potential uses in compliance with REAP 2.0 goals and objectives. (D)Advanced funding requests for outreach must target efforts in Disadvantaged and Historically Underserved Communities. (E)A funding request may include, but is not limited to, administration (5 percent cap), program development, initial priority setting, targeted outreach to Disadvantaged and Historically Underserved Communities, education and outreach and inter- regional engagement in the development of the full application. (F)The Department shall award requested funds in an expeditious manner after receiving the request. (G)To receive an advance allocation, applicants must submit an application, resolution, and invoice. (H)Applicants may submit a request for an advance under this section at any time during the application period ending December 31, 2022, prior to a full application. However, a full application must be received by December 31, 2022. (I) Applicants who received an advance allocation may be required to demonstrate 15 progress in carrying out advance activities according to an agreed upon timetable prior to being awarded the full application amount. While this progress must be demonstrated prior to an award for the balance of funds, the advanced funds do not need to be completely expended prior to applying for and being awarded the remainder of the REAP 2.0 funds. Section 404: Application Review (A)The MPO Direct Allocation will not utilize a competitive process to award funds. (B)Funds will be available to eligible applicants on a rolling OTC basis beginning on the date of this NOFA and ending December 31, 2022. (C)An application form will be available upon release of the NOFA and will include forms to demonstrate eligibility requirements are met such as, among other forms, a resolution, a proposed budget, a proposed timeline table, and self-certified attachments demonstrating compliance with threshold requirements. (D)The Department and State Collaborative Partners shall review each application in an expeditious manner. (E)Applications will first be reviewed for, among other things, completeness, accuracy and threshold and eligibility requirements. (F)An application must contain requested information and supporting documentation where appropriate. (G)All applications must meet the threshold and eligible use requirements as specified in these Guidelines. (H)If the application is ineligible, it will not be considered for funding, but may be amended and resubmitted. (1) The Department may request additional information to complete and approve the application for funding. (J) Applications recommended for funding are subject to conditions specified by the Department and State Collaborative Partners. (K)All applicants not meeting the eligibility requirements will be informed in an expeditious manner. (L) Successful applicants will receive an award letter from the Department and will be awarded funds. Applicants will enter into a Standard Agreement for distribution of funds. The Standard Agreement process will specify, among other things, the amount of funds granted, suballocation amounts, timeline for expenditure of funds, and the approved uses of funds by suballocation. Section 405: Evaluation of Applications (A) The Department and State Collaborative Partners review applications to determine whether Proposed Uses and suballocations are distributed in a manner that satisfies all REAP 2.0 requirements, as applicable, and appropriately address an applicant's unique Housing, land use, transportation, climate change, equity, and other planning priorities consistent with REAP 2.0 goals and objectives. (B)The Department's and State Collaborative Partners' review of an application includes analyzing how each Proposed Use conforms with the REAP 2.0 and relevant funding source requirements. (C)The Department and State Collaborative Partners will review applicants' explanations of how each Proposed Use will meet the definition of Transformative Planning and Implementation Activity and how each Proposed Use will implement 16 and achieve Housing goals that also result in a reduction of VMT in furtherance of the region's SCS or Alternative Planning Strategy, as applicable. In addition, the Department and State Collaborative Partners will review any application's explanation of how each Proposed Use has a geographic or region-wide benefit for Disadvantaged and Historically Underserved Communities, and focuses implementation in areas that satisfy an applicable definition of Infill development. (D)The Department and State Collaborative Partners require that applicants provide sufficient evidence that demonstrates a nexus between a Proposed Use and meeting all REAP 2.0 goals and objectives. (E)Applications must explain how Proposed Uses meet all Program Objectives. Each Proposed Use should be discussed in terms that enable the Department and State Collaborative Partners to assess how the Proposed Use, when implemented, furthers the following (See Attachments 4 for supplemental guidance and materials): 1. Infill Development that Facilitates Housing Supply, Choice, and Affordability: Applicants should discuss the following: i. The Proposed Use's impact on Housing supply, choice, and affordability ii. The Proposed Use located or implemented within Infill areas. iii. The Proposed Use can be measured by, but is not limited to: a. Number of Housing units (total, type, affordable, and per acre), b. Capital investments to support Housing development, c. Mix of Housing unit types or sizes, d. Increasing land use intensities, e. Count of sites developable for future Housing, and/or f. Number of new Housing units supported or provided by the Proposed Use iv. Some examples of a Proposed Use include, but are not limited to: a. Affordable Housing development programs b. Planning activities that lead to increased residential and/or mixed-use zoned capacity in areas identified as infill c. Program-level environmental clearance d. Upgrading infrastructure for sewer, water, and dry utility systems 2. Affirmatively Furthering Fair Housing (AFFH): Applicants should discuss the following: i. The Proposed Use will be located or implemented within: a. Higher Resource communities or Areas (See, Attachment 2: Definitions), or b. Disadvantaged and Historically Underserved Communities ii. The Proposed Use can be measured by, but is not limited to: a. Number of proposed Affordable Housing units, b. Number of existing housing units continued to be made available and affordable, c. Zoning, Streamlined Housing Production (including permit streamlining), fees, incentives, and other approaches to increase housing choices and affordability, d. Increase accessible number of units above state law, e. For Higher Resource Communities or Areas: L Increase in rate of Housing Choice Voucher usage in high opportunity census tracts, f. For Disadvantaged and Historically Underserved Communities: 17 1. New or enhanced public services and community assets such as parks, social service programs, active transportation, infrastructure, and other community amenities, II. Increased access to public services, and III. Housing-supportive infrastructure service in areas of concentrated poverty or similar areas g. Other metrics found in the � �rtrr��r�t'� RFFN ���d���� �m� iii. Some examples of a Proposed Use include, but are not limited to: a. For Higher or Moderate Resource Communities or Areas, and/or areas of lower resource coupled with measures to promote equitable quality of life and access to Higher Resource Communities or Areas: 1. Housing mobility strategies, II. Affordable Housing unit production, III. Reductions to barriers to higher density Housing, buildings with four or more units, and accessibility, andlor IV. Outreach strategies to address local opposition to Proposed Use b. For Disadvantaged and Historically Underserved Communities: I. Affordable Housing unit production or preservation, II. Anti-displacement protections, III. Expanded Housing options, and/or IV. Housing-supportive infrastructure 3. Reducing Vehicle Miles Traveled: Applicants should discuss the following (See, Attachment 4, Applying Units of Measurement for supplemental materials that describe land use and transportation planning, policies, and investment strategies): i. The Proposed Used located or implemented within Infill areas. ii. The Proposed Use, dependent upon what funding source(s) are utilized, can be measured by, but is not limited to: a. Estimate for VMT reduced Per Capita, b. Number of distinct land uses within and around the site, c. Number of internal and surrounding connections to the active transportation and transit networks, d. Mix of Housing unit types or sizes, e. New or enhanced transit services and frequencies, f. Demonstrated transit route optimization, g. Number of new pedestrian and bicycle pathways, or h. �imited number of off-street parking iii. Some examples of a Proposed Use include, but are not limited to: a. Activities that develop, support, or implement land use planning, policies, or investment strategies that result in substantial changes to travel behavior from increasing: I. Population and employment densities, II. �and use mix, 111. Street network connectivity, IV. �inkages and pathways with active transportation infrastructure, V. Accessibility between destinations, and/or VI. Contiguousness of land uses and transportation networks b. Activities, subject to applicable program funding requirements, that would develop, support, or implement transportation planning, 18 policies, and investment strategies that support Infill development that facilitates housing supply, choice, and affordability by: I. Increased transit services and access, II. Building at walkable community scales, I11. Enhanced pedestrian and bicycling safety measures, IV. Protected pedestrian and bicycling amenities, and/or v. Multimodal infrastructure connections with multimodal-mobility transportation systems. Section 406: Suballocation (A)Eligible Entities may suballocate funds to Eligible Entities in the form of grants. (B)Eligible Entities for the purposes of suballocations may be broadly construed and include, but are not limited to, a county, a city, a city and county, a transit agency or district, a county transportation agency, Tribal Entity, community-based organization, Public Housing Authority, academic institution, developers of Affordable Housing, or regional Housing Trust Fund. (C)Proposed evaluation criteria for any suballocation uses are subject to review and approval by the Department and State Collaborative Partners during the application process, and must align with REAP 2.0 Program goals, objectives, and definitions. Evaluation criteria must be approved by the Department and State Collaborative Partners by March 31, 2023, unless an extension is granted by the Department. (D)The amount of funds distributed through suballocations must be based on the applicants' unique Housing, land use, transportation, climate change, equity, and other planning priorities. Additional factors include, but are not limited to, outreach and priority setting, maximization of Policy Outcomes consistent with REAP 2.0 Program goals and objectives, and timeliness of expenditures. (E)Suballocations must consider geographic equity, including rural and urban communities, transformative and collaborative approaches to planning and implementation, and the degree to which the suballocation furthers the REAP 2.0 objectives (i.e., Accelerating Infill Development that facilitates Housing supply, choice, and affordability, reducing VMT, advancing the SCS or Alternative Planning Strategies, and AFFH). (F) Eligible Entities may consider additional criteria tailored to its unique conditions and circumstances as well as planning priorities for the area. All additional criteria must demonstrably promote REAP 2.0 goals and objectives and be developed in consultation with the Department and the State Collaborative Partners. (G)Suballocations must comply with REAP 2.0 Program requirements including but not limited to REAP 2.0 objectives (Section 202). (H)Eligible Entities must award suballocation within 60 days of a complete application received from an applicant for a suballocation. An award is defined by an official notice (e.g., letter) to the grantee and does not include encumbrance or an executed Standard Agreement. (1) Eligible Entities may propose suballocations as part of the application for the REAP 2.0 Program. (J) Eligible Entities shall expeditiously act to execute the Standard Agreement and 19 ensure expenditure deadlines are met throughout the implementation of the REAP 2.0 Program. Section 500: Administration Section 501: Grant Execution and Term (A)The Department will notify the grantee if they have been selected for a grant award. (B)After the Standard Agreement has been sent electronically, the grantee will be provided instructions for signing all required documents. The grantee must submit all supporting materials and a signed Standard Agreement within the timeline provided in the instructions or risk forfeiting the grant award. (C)The grant term begins on the day the Department and the grantee have fully executed the Standard Agreement. The Department will notify the grantee and partners when work may proceed under the agreement. However, eligible activities that are approved by the Department may be retroactively reimbursed to July 1, 2021. (D)Each recipient of funds under REAP must encumber those funds no later than June 30, 2024, and expend those funds no later than June 30, 2026. Fir�al i�v�ic�s must be �ubr�itted to the D�p�rtment thr�e r�onths pr�c�r t� the �xper�diture d�adlan�. Section 502: Accounting and Records (A)The grantee, its staff, contractors, and subcontractors shall establish and maintain an accounting system and reports that properly accumulate incurred project costs by line. The accounting system shall conform to Generally Accepted Accounting Principles (GAAP}, enable the determination of incurred costs at interim points of completion, and provide support for payment vouchers and invoices. Grantees may establish and maintain an accounting system and reports, as described above, on behalf of contractors and subcontractors. (B)The grantee must establish a separate ledger account for receipts and expenditures of grant funds and maintain expenditure details in accordance with the budget and timeline. Separate bank accounts are not required. As appropriate, grantees must establish separate ledgers for State General funds and other funds associated with proposed uses not provided by the REAP 2.0 Program. (C)The grantee shall maintain documentation of its normal procurement policy and competitive bid process (including the use of sole source purchasing),and financial records of expenditures incurred during the course of the project in accordance with GAAP. (D)The grantee agrees that the Department or designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of the Standard Agreement. (E)The grantee agrees to maintain such records for possible audit after the final payment for at least five years after all funds have been expended or returned to the State unless a longer period of records retention is stipulated. Wherever practicable, such records should be collected, transmitted, and stored in open and machine-readable formats. (F) Subcontractors employed by the grantee and paid with moneys under the terms of 20 this Standard Agreement shall be responsible for maintaining accounting records as specified above. Section 503: Invoicing (A)Grant funds cannot be disbursed until the Standard Agreement has been fully executed. (B)The grantee will be responsible for compiling and submitting all invoices and reporting documents. (C)The grantee must bill the Department based on clear deliverables outlined in the Standard Agreement or budget timeline. Generally, approved and eligible costs incurred for work after execution of the Standard Agreement and completed during the grant term will be reimbursable. However, eligible activities conducted prior to award will be reimbursable to July 1, 2021. Approved and eligible costs incurred prior to July 1, 2021, are ineligible. (D)Grantees who received advance funds shall expend all such funds or show substantial progress prior to requesting additional advanced funding by submitting an updated project timeline and budget for their eligible projects from the application and any supporting documentation. (E)Project invoices may be submitted to the Department by the grantee on a quarterly basis or upon completion of a deliverable, subject to the Department's approval. (F)The Department may consider advance payments or alternative arrangements to reimbursement and payment methods based on demonstrated need. The Department may consider factors such as available funds for eligible activities. Suballocations to Jurisdictions must request funds in increments or a schedule for advance payments, and report progress according to an implementation and expenditure timetable. (G)Supporting documentation may include, but is not limited to, purchase orders, receipts, progress payments, subcontractor invoices, timecards, reports, or any other documentation as deemed necessary by the Department to support the reimbursement to the grantee for expenditures incurred. (H)Invoices must be accompanied by supporting documentation where appropriate. Invoices without supporting documentation will not be paid. The Department may withhold up to 10 percent of the grant until grant terms have been fulfilled, including all required reporting. Section 504: Audits (A)At any time during the term of the Standard Agreement, the Department may perform or cause to be performed a financial audit of any and all phases of the award. At the Department's request, the grantee shall provide, at its own expense, a financial audit prepared by a certified public accountant. The State of California has the right to review project documents and conduct audits during project implementation and over the project life. (B)The grantee agrees that the Department or the Department's designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to performance of this Agreement. (C)The grantee agrees to provide the Department, or the Department's designee, with any relevant information requested. (D)The grantee agrees to permit the Department or the Department's designee access 21 to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with statutes, REAP 2.0 Guidelines, and the Standard Agreement. (E)The Department may request additional information, as needed, to meet other applicable audit requirements. (F)The Department may monitor expenditures and activities of a grantee, as the Department deems necessary, to ensure compliance with REAP requirements. (G)Grantees using federal or state transportation planning funds administered through the Overall Work Program (OWP) shall clearly identify the source of funds. (H) If there are audit findings, the grantee must submit a detailed response acceptable to the Department for each audit finding within 90 days from the date of the audit finding report. (1) The grantee agrees to maintain such records for possible audit after the final payment for at least five years after all funds have been expended or returned to the State unless a longer period of records retention is stipulated. Wherever practicable, such records should be collected, transmitted, and stored in open and machine-readable formats. (J) If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started before the expiration of the required record retention period, all records must be retained by the grantee, contractors, and sub-contractors until completion of the action and resolution of all issues which arise from it. In any contract that it enters into in an amount exceeding $10,000, the grantee shall include the Department's right to audit the contractor's records and interview their employees. (K)The grantee shall comply with the caveats and be aware of the penalties for violations of fraud and for obstruction of investigation as set forth in California Public Contracts Code Section 10115.10. Section 505: Remedies of Non-performance (A)In the event that it is determined, at the sole discretion of the Department, that the grantee is not meeting the terms and conditions of the Standard Agreement, immediately upon receiving a written notice from the Department to stop work, the grantee shall cease all work under the Standard Agreement. The Department has the sole discretion to determine that the grantee meets the terms and conditions after a stop work order, and to deliver a written notice to the grantee to resume work under the Standard Agreement. (B)The Department has the right to terminate the Standard Agreement at any time upon 30 days written notice. The notice shall specify the reason for early termination and may permit the grantee or the Department to rectify any deficiency(ies) prior to the early termination date. The grantee will submit any requested documents to the Department within 30 days of the early termination notice. (C)The applicant must demonstrate a clear and significant nexus to REAP 2.0 Program goals and objectives, including, but not limited to, completion of activities toward Policy Outcomes and implementation of eligible use activities funded through a suballocation process. Any action inconsistent with REAP 2.0 Program 22 goals and objectives may result in review and could be subject to repayment of the grant. (D)At any time, if the Department finds the grantee falsely proposed information in the application or as part of the application review, the Department may require the repayment of funds. (E)Grantees are responsible for suballocations meeting all REAP 2.0 requirements. (F)The Department may, as it deems appropriate or necessary, require the repayment of funds from a grantee, or pursue any other remedies available to it by law for failure to comply with all REAP 2.0 Program requirements. Section 506: Reporting (A)At any time during the term of the Standard Agreement, the Department may request a performance report that demonstrates satisfaction of all requirements identified in the Standard Agreement with emphasis on eligible activities, eligible uses, and expenditures according to timelines and budgets referenced in the Standard Agreement. (B)Grantees shall submit a report, in the form and manner prescribed by the Department, to be made publicly available on its website, by April 1 of the year following the receipt of those funds, and annually thereafter until those funds are expended, that contains the following information: 1. The status of the Proposed Uses and expenditures listed in the Eligible Entity's application for funding and the corresponding impact, including, but not limited to: i. Housing units accelerated, ii. Reductions in Vehicle Miles Traveled Per Capita, iii. Location of investment, iv. Socioeconomic statistics about the impacted geography, and v. Regional impact explanation 2. All status and impact reports shall be categorized based on the eligible uses specified in Section 50515.08. (C)Grantees shall post, make available, and update, as appropriate on its internet website, land use maps and Vehicle Miles Traveled generation maps produced in the development of its adopted SCS. (D)Grantees shall collaborate and share progress, templates, and best practices with the Department and fellow recipients in implementation of funds. To the greatest extent practicable, adjacent Eligible Entities shall coordinate in the development of applications, consider potential for joint activities, and seek to coordinate Housing and transportation planning across regions. (E)Upon completion of all deliverables within the Standard Agreement, the grantee shall submit a close out report in a manner and form prescribed by the Department. 1. Grantee may include a line item for advance payment or reimbursement, as part of its administrative costs, for its final report that is due by June 30, 2026. Funding requests for final reports must be submitted no later than March 31, 2026. 23 Section 600: Right to Modify or Suspend Guidelines and Final Decision Making (A}The Department reserves the right, at their sole discretion, to suspend, amend, or modify the provisions of these Guidelines at any time, including, without limitation, the amount of funds available hereunder. If such an action occurs, the Department will notify all interested parties and will post the revisions to the Department's website. You may subscribe to the � �rtrn�r�t �r���l �w����r�, (B)The Department's decision to approve or deny an application or request for funding pursuant to REAP 2.0, and its determination of the amount of funding to be provided or requested for repayment, or other remedies for failure to comply with REAP 2.0 requirements, shall be final. 24 Attachment 1 : Statute SEC. 15. Chapter 3.15 (commencing with Section 50515.06) is added to Part 2 of Division 31 of the Health and Safety Code, to read: CHAPTER 3.15. Regional Early Action Planning Grants Program of 2021 50515.06. For purposes of this chapter: (a) "Department" means the Department of Housing and Community Development. (b) "Program" means the Regional Early Action Planning Grants of 2021 established pursuant to this chapter. (c) "Regional housing need assessment" means the existing and projected need for housing for each region, as determined by the department pursuant to Section 65584.01 of the Government Code. (d) "Sustainable Communities Strategies" refers to the plan prepared by each metropolitan planning organization pursuant to paragraph (2) of subdivision (b) of Section 65080 of the Government Code. (e) "Alternative Planning Strategy" refers to the document, if any, prepared by a metropolitan planning organization pursuant to paragraph (1) of subdivision (b) of Section 65080 of the Government Code. (f) (1) "Transformative planning and implementation activities" means housing, planning, infrastructure investments supporting infill housing, and other actions that enable meeting housing goals that also result in per capita vehicle miles traveled reductions, including accelerating infill development, supporting residents through realizing Multimodal Communities, shifting travel behavior through reducing driving, and increasing transit ridership. (2) Transformative planning and implementation activities shall be in furtherance of all of the following: (A) State planning priorities, as described in Section 65041.1 of the Government Code. (B) Affirmatively furthering fair housing pursuant to Section 8899.50 of the Government Code. (C) Facilitating housing element compliance for the sixth cycle regional housing needs assessment pursuant to Section 65302 of the Government Code prepared in accordance with Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. (D) A region's sustainable community strategy, as described in paragraph (2) of subdivision (b)of Section 65080 of the Government Code, or alternative planning strategy, as described in paragraph (2)of subdivision (b)of Section 65080 of the Government Code, as applicable. (g) "Eligible Entity" means any recipient of these funds either through direct allocation from the department or through a suballocation from a recipient. For the purposes of this chapter, an Eligible Entity can include a metropolitan planning organization (MPO), a single or multicounty council of governments (COG), a regional transportation planning agency (RTPA), a county, a city, a city and county, a transit agency or district, a county transportation agency, or a Tribal Entity. (h) "Tribal Entity" means an entity formed by the duly constituted governing body of a California 25 Native American Tribe in Chapter 905 of the Statutes of 2004, as described in Section 21073 of the Public Resources Code. 50515.07. (a) (1) The Regional Early Action Planning Grants Program of 2021 is hereby established for the purpose of providing regions with funding, including grants, for transformative planning and implementation activities. (2) Upon appropriation by the Legislature for this purpose, funds shall be distributed under the program in accordance with this chapter. (b) The department, in collaboration with the Office of Planning and Research, the Strategic Growth Council, and the State Air Resources Board, shall develop and administer the program and, consistent with the requirements of this chapter, provide grants to eligible entities for implementing planning and implementation activities. The department shall seek input from the transportation and housing coordination workgroup established through Section 50407.5. (c) Distribution and expenditures of funds shall be made consistent with the state planning priorities, established pursuant to Section 65041.1 of the Government Code, and shall consider geographic equity among regions of the state. (d) Of the total amount of any moneys appropriated for purposes of this chapter, the department shall set aside up to 5 percent for program administration, including state operations expenditures and technical assistance, as well as expenditures by recipients of funding pursuant to Sections 50515.08 and 50515.09. 50515.08. (a) The funds described in paragraph (2) of subdivision (a) of Section 50515.07 shall be available only to the following entities before any suballocation: (1) The Metropolitan Transportation Commission, representing the Counties of Alameda, Contra Costa, Marin, Napa, San Mateo, Santa Clara, Solano, and Sonoma, and the City and County of San Francisco. (2) The Sacramento Area Council of Governments, representing the Counties of EI Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba. (3) The San Diego Association of Governments, representing the County of San Diego. (4) The Southern California Association of Governments, representing the Counties of Imperial, �os Angeles, Orange, Riverside, San Bernardino, and Ventura. (5) The Association of Monterey Bay Area Governments, representing the counties of Monterey, San Benito and Santa Cruz. (6) The San Luis Obispo Council of Governments, the Santa Barbara County Association of Governments, the Fresno Council of Governments, the Kern Council of Governments, the Kings County Association of Government, the Madera County Transportation Commission, the Merced County Association of Governments, the San Joaquin Council of Governments, the Stanislaus Council of Governments, the Tulare County Association of Governments, the Butte County Association of Governments, Shasta County Regional Transportation Agency, and the Tahoe Regional Planning Agency created by interstate compact and ratified by Title 7.4 (commencing with Section 66800) of the Government Code. Notwithstanding any other provision of this chapter, the eligible entities described in this paragraph may apply directly to the department for funds pursuant to the program. (7) Eligible entities in the Counties of Alpine, Amador, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Inyo, Lake, Lassen, Mariposa, Mendocino, Modoc, Mono, Nevada, Plumas, Sierra, Siskiyou, Tehama, Tuolumne, and Trinity. Notwithstanding any other provision of this chapter, eligible entities within the counties listed in this paragraph or 26 Tribal Entities may apply directly to the department for funds pursuant to the program. The department may approve a fiscal agent to receive funds on behalf of a consortium of entities listed in this paragraph. (b) (1) The department shall calculate the amount of each maximum grant allocation in accordance with the methodology described in subdivision (a) of Section 50515.09. (2) An eligible entity shall, in consultation with the department and consistent with the requirements of this chapter, determine the appropriate use of funds and suballocations within its boundaries in a manner that appropriately addresses its unique housing, land use, transportation, climate change, equity and other planning priorities. (c) (1) Subject to paragraph (5), until December 31, 2022, an eligible entity described in subdivision (a) may request an allocation of funds pursuant to this section by submitting an application, in the form and manner prescribed by the department, developed in collaboration with the Office of Planning and Research, the Strategic Growth Council, and the State Air Resources Board, that includes all of the following information: (A) An allocation budget for the funds provided pursuant to this section. (B) The amounts retained by the eligible entity and any suballocations. (C) An explanation of how the Proposed Uses will meet the definition of transformative planning and implementation activities and, as applicable, constitute high-impact and innovative projects and actions. (D) An explanation of how the Proposed Uses will implement and achieve housing goals that also result in per capita vehicle miles traveled reductions in furtherance of the region's Sustainable Communities Strategies or alternative planning strategy, as applicable. (E) The application shall reference one or more of the following categories of allowable uses of the funds: (i) Accelerating infill development, including housing. (ii) Supporting residents through realizing Multimodal Communities. (iii) Shifting travel behavior through reducing driving. (iv) Increasing transit ridership. (F) An explanation of the targeted outreach the MPO has conducted to disadvantaged and historically underserved communities and how that outreach was incorporated into the Proposed Uses. (2) The department, in collaboration with the Office of Planning and Research, the Strategic Growth Council, and the State Air Resources Board, shall review an application submitted pursuant to this subdivision in an expeditious manner. Upon approval of an application for funds pursuant to this subdivision, the department shall award the moneys for which the eligible entity qualifies. (3) Commencing January 1, 2022, an eligible entity described in paragraphs (1) to (5) of subdivision (a), inclusive, as applicable, may request up to 10 percent of the funding available to it under this section in advance of a full request for funding made pursuant to paragraph (1)to develop and accelerate the implementation of the requirements described in paragraph (1), including, but not limited to, regional engagement in the development of the full application and of an education and outreach strategy. The department shall award funds requested pursuant to this paragraph to the relevant eligible entity in an expeditious manner after receiving that request. (4) The department may develop a streamlined application procedure that accounts for the limited resources generally among the regional entities listed in paragraph (6) of subdivision (a). 27 (5) If an amount of funds described in paragraph (2) of subdivision (a)of Section 50515.07 remains unallocated after December 31, 2022, the department, at its discretion, may make those funds available through a subsequent notice of funding availability in which funds are offered on a competitive basis pursuant to this chapter. An eligible entity described in subdivision (a) may request an allocation of funds made available through the subsequent notice of funding availability by submitting an application, in the form and manner prescribed by the department. (d) In consultation with the department, any entity that receives an allocation of funds pursuant to this section shall establish priorities and use those moneys for eligible transformative planning and implementation activities that include, but are not limited to, all of the following: (1) Providing jurisdictions and other local agencies with technical assistance, planning, temporary staffing, or consultant needs associated with updating local planning and zoning documents and other actions that accelerate infill housing production. (2) Administering any programs described in this subdivision. (3) Covering the costs of temporary staffing or consultant needs associated with the activities described in paragraphs (1) and (2), inclusive. (4) Accelerating infill development, including through all of the following: (A) Rezoning and encouraging development by updating planning documents and zoning ordinances, including general plans, community plans, specific plans, Sustainable Communities Strategies, and local coastal programs. (B) Revamping local planning processes to accelerate infill housing production and other infill development. (C) Completing environmental clearance to eliminate the need for project-specific review for infill development. (D) Establishing and funding an affordable housing catalyst fund, trust fund, or revolving loan fund for location efficient projects. (E) Performing infrastructure planning and investing in upgrading infrastructure, including for sewers, water systems, transit, roads, or other public facilities necessary to enable reduction in per capita vehicle miles traveled, including accelerating housing production. (5) Supporting residents through realizing Multimodal Communities, including through all of the following: (A) Establishing and implementing a vision-zero policy and program, a safety plan, and a slow streets program. (B) Developing bicycle and pedestrian infrastructure plans and other multimodal plans or policies. (C) Investing in infrastructure projects and other programs to expand active transportation and implement bicycle or pedestrian plans. (D) Producing multimodal corridor studies associated with developing specific planning documents or implementation actions. (6) Shifting travel behavior through reducing driving, including through all of the following: (A) Studying and implementing road pricing. (B) Funding the establishment of a local vehicle miles traveled impact fee or regional vehicle miles traveled mitigation bank. (C) Funding and implementing parking and transportation demand management programs or ordinances. (D) Accelerating infill housing production near jobs, transit, and resources. (7) Increasing transit ridership, including through all of the following: (A) Funding and implementing actions to establish more seamless regional transit systems between and across communities, including establishing common fares, 28 schedules, service design, and wayfinding. (B) Developing and implementing multimodal access plans to and from transit facilities. (C) Planning for additional housing near transit. (f) (1) In consultation with the department, any entity that receives an allocation of funds pursuant to this section may suballocate moneys directly to eligible entities in the form of grants. Following awards to eligible entities, eligible entities shall award suballocations within 60 days. (2) All suballocations pursuant to this subdivision shall consider geographic equity, including the needs of rural and urban communities, transformative and collaborative approaches, including through subregions, and the degree to which the suballocation will be in furtherance of all of the requirements of transformative planning and implementation activities described in paragraph (2) of subdivision (f) of Section 50515.06. 50515.09. (a) Of the amount described in paragraph (2) of subdivision (a) of Section 50515.07, 85 percent shall be available to the entities described in paragraphs (1) to (5), inclusive, of subdivision (a) of Section 50515.08 for transformative planning and implementation activities. The maximum amount that an entity may receive pursuant to this subdivision shall be determined as follows: The maximum amount that an Eligible Entity may receive pursuant to this subdivision shall be based on the most recent Department of Finance P-2A County Population Projections as of July 1, 2021. Amounts shall be calculated based on aggregate 2030 projected population per each eligible applicant as a percentage of projected 2030 statewide population. (b) Of the amount described in paragraph (2) of subdivision (a) of Section 50515.07, 5 percent shall be available to the eligible entities described in paragraph (6)of subdivision (a) of Section 50515.08 for transformative planning and implementation activities. (c) Of the amount described in paragraph (2) of subdivision (a) of Section 50515.07, 5 percent shall be available as a competitive set aside available to all eligible entities for transformative planning and implementation activities that demonstrably exceed the requirements of this chapter and further multiple policy objectives. Scoring criteria for this competitive set aside will include, but are not limited to, the extent of acceleration of infill housing production and reduction of per capita vehicle miles traveled. 50515.10. (a) (1) Subject to paragraph (2), an Eligible Entity that receives an allocation of program funds pursuant to Section 50515.08 shall submit a report, in the form and manner prescribed by the department, to be made publicly available on its internet website, by April 1 of the year following the receipt of those funds, and annually thereafter until those funds are expended, that includes, but is not limited to, the following information: (A) The status of the Proposed Uses and expenditures listed in the Eligible Entity's application for funding and the corresponding impact, including, but not limited to, housing units accelerated and reductions in per capita vehicle miles traveled. (B) All status and impact reports shall be categorized based on the Eligible uses specified in Section 50515.08. (2) The department may request additional information, as needed, to meet other applicable reporting or audit requirements. (b) The department shall maintain records of the following and provide that information publicly on its internet website: 29 (1) The name of each applicant for program funds and the status of that entity's application. (2) The number of applications for program funding received by the department. (3) The information described in subdivision (a) for each recipient of program funds. (c) A recipient of funds under this program shall post, make available, and update, as appropriate on its internet website, land use maps and vehicle miles traveled generation maps produced in the development of its adopted Sustainable Communities Strategies. (d) A recipient of funds under this program shall collaborate and share progress, templates, and best practices with the department and fellow recipients in implementation of funds. To the greatest extent practicable, adjacent eligible entities shall coordinate in the development of applications, consider potential for joint activities, and seek to coordinate housing and transportation planning across regions. (e) (1) A recipient of funds under the program shall expend those funds no later than June 30, 2024. (2) No later than June 30, 2025, each Eligible Entity that receives an allocation of funds pursuant to Section 50515.08 shall submit a final report on the use of those funds to the department, in the form and manner prescribed by the department. The report required by this paragraph shall include an evaluation of actions taken in support of the entity's Proposed Uses of those funds, as specified in the entity's application, including, but not limited to, housing units accelerated and per capita reductions in vehicle miles traveled. (f) The department may monitor expenditures and activities of an applicant, as the department deems necessary, to ensure compliance with program requirements. (g) The department may, as it deems appropriate or necessary, request the repayment of funds from an applicant, or pursue any other remedies available to it by law for failure to comply with program requirements. (h) The department, in collaboration with the Office of Planning and Research, the Strategic Growth Council, and the State Air Resources Board, may implement the program through the issuance of forms, guidelines, application materials, funding allocation methodologies, and one or more notices of funding availability, as the department deems necessary, to exercise the powers and perform the duties conferred on it by this chapter. Any forms, guidelines, application materials, funding allocation methodologies, or notices of funding availability prepared or adopted pursuant to this section are exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (i) The department's decision to approve or deny an application or request for funding pursuant to the program, and its determination of the amount of funding to be provided or request for repayment or other remedies for failure to comply with program requirements, shall be final. AB 175 SEC. 8. Section 50515.08 of the Health and Safety Code is amended to read: 50515.08. (a) The funds described in paragraph (2) of subdivision (a) of Section 50515.07 shall be available only to the following entities before any suballocation: (1) The Metropolitan Transportation Commission, representing the Counties of Alameda, Contra Costa, Marin, Napa, San Mateo, Santa Clara, Solano, and Sonoma, and the City and County of San Francisco. (2) The Sacramento Area Council of Governments, representing the Counties of EI 30 Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba. (3) The San Diego Association of Governments, representing the County of San Diego. (4) The Southern California Association of Governments, representing the Counties of Imperial, �os Angeles, Orange, Riverside, San Bernardino, and Ventura. (5) The Association of Monterey Bay Area Governments, representing the counties of Monterey, San Benito and Santa Cruz. (6) The San Luis Obispo Council of Governments, the Santa Barbara County Association of Governments, the Fresno Council of Governments, the Kern Council of Governments, the Kings County Association of Government, the Madera County Transportation Commission, the Merced County Association of Governments, the San Joaquin Council of Governments, the Stanislaus Council of Governments, the Tulare County Association of Governments, the Butte County Association of Governments, Shasta County Regional Transportation Agency, and the Tahoe Regional Planning Agency created by interstate compact and ratified by Title 7.4 (commencing with Section 66800) of the Government Code. Notwithstanding any other provision of this chapter, the eligible entities described in this paragraph may apply directly to the department for funds pursuant to the program. (7) Eligible entities in the Counties of Alpine, Amador, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Inyo, Lake, Lassen, Mariposa, Mendocino, Modoc, Mono, Nevada, Plumas, Sierra, Siskiyou, Tehama, Tuolumne, and Trinity. Notwithstanding any other provision of this chapter, eligible entities within the counties listed in this paragraph or tribal entities may apply directly to the department for funds pursuant to the program. The department may approve a fiscal agent to receive funds on behalf of a consortium of entities listed in this paragraph. (b) (1) The department shall calculate the amount of each maximum grant allocation in accordance with the methodology described in subdivision (a) of Section 50515.09. (2) An Eligible Entity shall, in consultation with the department and consistent with the requirements of this chapter, determine the appropriate use of funds and suballocations within its boundaries in a manner that appropriately addresses its unique housing, land use, transportation, climate change, equity and other planning priorities. (c) (1) Subject to paragraph (5), until December 31, 2022, an Eligible Entity described in subdivision (a) may request an allocation of funds pursuant to this section by submitting an application, in the form and manner prescribed by the department, developed in collaboration with the Office of Planning and Research, the Strategic Growth Council, and the State Air Resources Board, that includes all of the following information: (A) An allocation budget for the funds provided pursuant to this section. (B) The amounts retained by the Eligible Entity and any suballocations. (C) An explanation of how the Proposed Uses will meet the definition of transformative planning and implementation activities and, as applicable, constitute high-impact and innovative projects and actions. (D) An explanation of how the Proposed Uses will implement and achieve housing goals that also result in per capita vehicle miles traveled reductions in furtherance of the region's Sustainable Communities Strategies or alternative planning strategy, as applicable. (E) The application shall reference one or more of the following categories of allowable uses of the funds: (i) Accelerating infill development, including housing. (ii) Supporting residents through realizing Multimodal Communities. (iii) Shifting travel behavior through reducing driving. 31 (iv) Increasing transit ridership. (F) An explanation of the targeted outreach the MPO has conducted to disadvantaged and historically underserved communities and how that outreach was incorporated into the Proposed Uses. (G) An explanation of how Proposed Uses will advance equity by benefiting disadvantaged and historically underserved communities. (2) The department, in collaboration with the Office of Planning and Research, the Strategic Growth Council, and the State Air Resources Board, shall review an application submitted pursuant to this subdivision in an expeditious manner. Upon approval of an application for funds pursuant to this subdivision, the department shall award the moneys for which the Eligible Entity qualifies. (3) Commencing January 1, 2022, an Eligible Entity described in paragraphs (1)to {-��- (6), inclusive, of subdivision (a), ;nc �c����, as applicable, may request up to 10 percent of the funding available to it under this section in advance of a full request for funding made pursuant to paragraph (1) to develop and accelerate the implementation of the requirements described in paragraph (1), including, but not limited to, regional engagement in the development of the full application and of an education and outreach strategy. The department shall award funds requested pursuant to this paragraph to the relevant Eligible Entity in an expeditious manner after receiving that request. (4) The department may develop a streamlined application procedure that accounts for the limited resources generally among the regional entities listed in paragraph {6-} (7) of subdivision (a). (5) If an amount of funds described in paragraph (2) of subdivision (a)of Section 50515.07 remains unallocated after December 31, 2022, the department, at its discretion, may make those funds available through a subsequent notice of funding availability in which funds are offered on a competitive basis pursuant to this chapter. An Eligible Entity described in subdivision (a) may request an allocation of funds made available through the subsequent notice of funding availability by submitting an application, in the form and manner prescribed by the department. (d) In consultation with the department, any entity that receives an allocation of funds pursuant to this section shall establish priorities and use those moneys for eligible transformative planning and implementation activities that include, but are not limited to, all of the following: (1) Providing jurisdictions and other local agencies with technical assistance, planning, temporary staffing, or consultant needs associated with updating local planning and zoning documents and other actions that accelerate infill housing production. (2) Administering any programs described in this subdivision. (3) Covering the costs of temporary staffing or consultant needs associated with the activities described in paragraphs (1) and (2), inclusive. (4) Accelerating infill development, including through all of the following: (A) Rezoning and encouraging development by updating planning documents and zoning ordinances, including general plans, community plans, specific plans, Sustainable Communities Strategies, and local coastal programs. (B) Revamping local planning processes to accelerate infill housing production and other infill development. (C) Completing environmental clearance to eliminate the need for project-specific review for infill development. (D) Establishing and funding an affordable housing catalyst fund, trust fund, or revolving loan fund for location efficient projects. (E) Performing infrastructure planning and investing in upgrading infrastructure, including for sewers, water systems, transit, roads, or other public facilities necessary 32 to enable reduction in per capita vehicle miles traveled, including accelerating housing production. (5) Supporting residents through realizing Multimodal Communities, including through all of the following: (A) Establishing and implementing a vision-zero policy and program, a safety plan, and a slow streets program. (B} Developing bicycle and pedestrian infrastructure plans and other multimodal plans or policies. (C) Investing in infrastructure projects and other programs to expand active transportation and implement bicycle or pedestrian plans. (D) Producing multimodal corridor studies associated with developing specific planning documents or implementation actions. (6) Shifting travel behavior through reducing driving, including through all of the following: (A) Studying and implementing road pricing. (B) Funding the establishment of a local vehicle miles traveled impact fee or regional vehicle miles traveled mitigation bank. (C) Funding and implementing parking and transportation demand management programs or ordinances. (D) Accelerating infill housing production near jobs, transit, and resources. (7) Increasing transit ridership, including through all of the following: (A) Funding and implementing actions to establish more seamless regional transit systems between and across communities, including establishing common fares, schedules, service design, and wayfinding. (B) Developing and implementing multimodal access plans to and from transit facilities. (C) Planning for additional housing near transit. (f) (1) In consultation with the department, any entity that receives an allocation of funds pursuant to this section may suballocate moneys directly to eligible entities in the form of grants. Following awards to eligible entities, eligible entities shall award suballocations within 60 days. (2) All suballocations pursuant to this subdivision shall consider geographic equity, including the needs of rural and urban communities, transformative and collaborative approaches, including through subregions, and the degree to which the suballocation will be in furtherance of all of the requirements of transformative planning and implementation activities described in paragraph (2) of subdivision (f) of Section 50515.06. SEC. 9. Section 50515.09 of the Health and Safety Code is amended to read: 50515.09. (a) Of the amount described in paragraph (2) of subdivision (a) of Section 50515.07, 85 percent shall be available to the entities described in paragraphs (1) to {-�} (6), inclusive, of subdivision (a) of Section 50515.08 for transformative planning and implementation activities. The maximum amount that an entity may receive pursuant to this subdivision shall be determined as follows: The maximum amount that an Eligible Entity may receive pursuant to this subdivision shall be based on the most recent Department of Finance P-2A County Population Projections as of July 1, 2021. Amounts shall be calculated based on aggregate 2030 projected population per each eligible applicant as a percentage of projected 2030 statewide population. (b) Of the amount described in paragraph (2) of subdivision (a) of Section 50515.07, 5 percent 33 shall be available to the eligible entities described in paragraph {-�} (7) of subdivision (a) of Section 50515.08 for transformative planning and implementation activities. (c) Of the amount described in paragraph (2) of subdivision (a) of Section 50515.07, 5 percent shall be available as a competitive set aside available to all eligible entities for transformative planning and implementation activities that demonstrably exceed the requirements of this chapter and further multiple policy objectives. Scoring criteria for this competitive set aside will include, but are not limited to, the extent of acceleration of infill housing production and reduction of per capita vehicle miles traveled. SEC. 10. Section 50515.10 of the Health and Safety Code is amended to read: 50515.10. (a) (1) Subject to paragraph (2), an Eligible Entity that receives an allocation of program funds pursuant to Section 50515.08 shall submit a report, in the form and manner prescribed by the department, to be made publicly available on its internet website, by April 1 of the year following the receipt of those funds, and annually thereafter until those funds are expended, that includes, but is not limited to, the following information: (A) The status of the Proposed Uses and expenditures listed in the Eligible Entity's application for funding and the corresponding impact, including, but not limited to, housing units accelerated and reductions in per capita vehicle miles traveled. (B) All status and impact reports shall be categorized based on the Eligible uses specified in Section 50515.08. (2) The department may request additional information, as needed, to meet other applicable reporting or audit requirements. (b) The department shall maintain records of the following and provide that information publicly on its internet website: (1) The name of each applicant for program funds and the status of that entity's application. (2) The number of applications for program funding received by the department. (3) The information described in subdivision (a) for each recipient of program funds. (c) A recipient of funds under this program shall post, make available, and update, as appropriate on its internet website, land use maps and vehicle miles traveled generation maps produced in the development of its adopted Sustainable Communities Strategies. (d) A recipient of funds under this program shall collaborate and share progress, templates, and best practices with the department and fellow recipients in implementation of funds. To the greatest extent practicable, adjacent eligible entities shall coordinate in the development of applications, consider potential for joint activities, and seek to coordinate housing and transportation planning across regions. (e) (1) A recipient of funds under the program shall obligate those funds no later than June 30, 2024, and expend those funds no later than June 30, �8�4: 2026. (2) No later than June 30, �8� 2026, each Eligible Entity that receives an allocation of funds pursuant to Section 50515.08 shall submit a final report on the use of those funds to the department, in the form and manner prescribed by the department. The report required by this paragraph shall include an evaluation of actions taken in support of the entity's Proposed Uses of those funds, as specified in the entity's application, including, but not limited to, housing units accelerated and per capita reductions in vehicle miles traveled. (f) The department may monitor expenditures and activities of an applicant, as the department 34 deems necessary, to ensure compliance with program requirements. (g) The department may, as it deems appropriate or necessary, request the repayment of funds from an applicant, or pursue any other remedies available to it by law for failure to comply with program requirements. (h) The department, in collaboration with the Office of Planning and Research, the Strategic Growth Council, and the State Air Resources Board, may implement the program through the issuance of forms, guidelines, application materials, funding allocation methodologies, and one or more notices of funding availability, as the department deems necessary, to exercise the powers and perform the duties conferred on it by this chapter. Any forms, guidelines, application materials, funding allocation methodologies, or notices of funding availability prepared or adopted pursuant to this section are exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (i) The department's decision to approve or deny an application or request for funding pursuant to the program, and its determination of the amount of funding to be provided or request for repayment or other remedies for failure to comply with program requirements, shall be final. 35 Attachment 2: Definitions All terms not defined below shall, unless their context suggests otherwise, be interpreted in accordance with the meanings of terms described in Chapter 3.15 of Health and Safety Code sections 50515.06 to 50515.10. 1. "Accelerating Infill Housing Production" or "Accelerating Infill Development, Including Housing" means planning, infrastructure, and other investment and actions that improve the affordability, timing, cost, feasibility, approval, and amount of Housing development. 2. "Affirmatively Furthering Fair Housing", pursuant to Government Code section 8899.50 means taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, Affirmatively Furthering Fair Housing means taking meaningful actions that, taken together, address significant disparities in Housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with Civil Rights and Fair Housing �aws. 3. "Affordable Housing" means Housing that is affordable (generally 30 percent of gross income) to Lower- and Moderate-Income Households. 4. "Alternative Planning Strategy" refers to the document, if any, prepared by a metropolitan planning organization pursuant to paragraph (1) of subdivision (b) of Section 65080 of the Government Code. 5. "Areas of High Segregation and Poverty" means areas that meet consistent standards for both poverty (30 percent of the population below the federal poverty line) and racial segregation (overrepresentation of people of color relative to the county). 6. "Council of Governments" or "COG" means a single or multicounty council created by a joint powers agreement pursuant to Chapter 5 (commencing with section 6500) of Division 7 of Title 1 of the Government Code that is responsible for allocating regional Housing needs pursuant to sections 65584,65584.04, and 65584.05 of the Government Code. 7. "Department" means the California Department of Housing and Community Development. 8. "Disadvantaged and Historically Underserved Communities" includes concentrated areas of poverty; Areas of High Segregation and Poverty and areas of low to moderate access to opportunity (T�A�/N� ����rt��it�Ar�� � �); Communities of Concern, Disadvantaged Communities (SB 535 �i��dv��t���d ���r��r�iti�� Map), and Low- Income Communities pursuant to Senate Bill 535 (De Leon, Chapter 830, Statutes of 2012) and Assembly Bill 1550 (Gomez, Chapter 369, Statutes of 2016); areas of high Housing cost burdens; areas with high vulnerability of displacement; areas related to Tribal Entities; and other areas experiencing disproportionate impacts of California's 36 Housing and climate crisis. Applicants may propose alternative definitions to Disadvantaged and Historically Underserved Communities in consultation with the Department and the State Collaborative Partners. 9. "Eligible Entity" means any entity that is eligible to be a recipient of these funds either through direct allocation from the Department or through a suballocation from a recipient. For the purposes of this chapter, an Eligible Entity can include a metropolitan planning organization (MPO), a single or multicounty Council of Governments (COG), a regional transportation planning agency (RTPA), a county, a city, a city and county, a transit agency or district, a county transportation agency, or a Tribal Entity. 10. "Higher Resource Communities or Areas" means those areas designated as "highest resource" and "high resource" as defined by the most recent TCA�/F#�� {���c�r���i�y M�,p�. 11."Housing" means any development that includes a house, an apartment, a mobilehome, manufactured home, or trailer, a group of rooms, or a single room that is occupied as separate living quarters, or, if vacant, is intended for occupancy as separate living quarters. Separate living quarters are those in which the occupants live separately from any other individuals in the building, and which have a direct access from the outside of the building or through a common hall. Note: accessory dwelling units (ADU) and junior accessory dwelling units (JADU) pursuant to Government Code sections 65852.2 and 65852.22 meet the definition above. 12."Housing Element" means the Housing Element of a community's General Plan, as required pursuant to subdivision (c) of section 65302 of the Government Code and prepared in accordance with Article 10.6 (commencing with section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. 13."Housing Trust Fund" means a Local or Regional Housing Trust Fund that is required to be a public, joint public and private, or charitable nonprofit organization organized under Section 501(c)(3) of the Internal Revenue Code, which was established by legislation, ordinance, resolution (including nonprofit articles of incorporation), or a public-private partnership organized to receive specific public, or public and private, revenue to address local or regional Housing needs. 14."Infill", for the purposes of the REAP 2.0 Program, means areas where all the following apply: (1) the area consists of unused or underutilized lands (2) within existing development patterns (3) that is or will be accessible to destinations and daily services by transit, walking, or bicycling and located in either: a. An urban center, urban corridor, or area with transit-supportive densities, or b. An established community that meets all the following criteria: i. The area consists or previously consisted of qualified urban uses ii. The area is predominantly surrounded (approximately 75 percent of the perimeter) by parcels that are developed or previously developed with qualified urban uses. In counting this, perimeters bordering navigable bodies of water and improved parks shall not be included, and iii. No parcel within or adjoining the area is classified as agricultural or natural 37 and working lands. c. Under unique circumstances, applicants may propose an alternative definition of "Infill" subject to approval by the Department and State Collaborative Partners. 15."Jurisdiction" means: a. any city, including a charter city, b. county, including a charter county, or c. city and county, including a charter city and county. 16."Lower-income Household" means individual households with either 1) household incomes at or below 80 percent of the statewide median income, or 2) household incomes at or below the threshold designated as low-income by Department of Housing and Community Development's State Income �imits adopted pursuant to Health and Safety Code Section 50093. 17."Moderate-income Households" means either 1) household incomes between 80 and 120 percent of the statewide median income, or 2) household incomes at or below the threshold designated as moderate-income by Department of Housing and Community Development's State Income �imits adopted pursuant to Health and Safety Code Section 50093. 18."Moderate Resource Communities or Areas" means those geographic areas designated as "Moderate Resource" as defined by the most recent `��A�fN�� � �rt�r�it ���. 19."Multimodal Communities" are those which are served by a variety of travel options that accommodate a variety of transportation modes for the public to access daily destinations. Multimodal options can include, but are not limited to, complete street improvements for active transportation, improving access to transit, and creating high- quality transit (CEQA) stops. 20."Policy Outcomes" means measures that are a direct result of and demonstrate efficacy of the REAP 2.0 Program. 21."Program" means the Regional Early Action Planning Grants of 2021 established pursuant to this chapter. 22."Proposed Use" means an eligible use, combination of eligible uses, or a combination of eligible uses with non-REAP 2.0 planning or implementation efforts that demonstrate a reasonable relationship to each other. It does not mean subcomponent, task, or sub-task of an eligible use. 23."Regional Housing Needs Assessment" means the existing and projected need for Housing for each region, as determined by the Department pursuant to Section 65584.01 of the Government Code." 24."State Collaborative Partners" means the California Air Resources Board (CARB), Governor's Office of Planning and Research, and California Strategic Growth Council. 25."State Planning Priorities" means priorities that are intended to promote Infill development and equity, protect environmental and agricultural resources, and 38 encourage efficient development patterns outside of Infill areas pursuant to Government Code section 65041.1. 26."Sustainable Communities Strategies" refers to the plan prepared by each MPO pursuant to paragraph (2) of subdivision (b) of Section 65080 of the Government Code. 27."Streamlined Housing Production" means improving the entitlement process through actions such as removing, mitigating, or minimizing local regulatory requirements, reforming the local approval process to reduce processing times, reducing the number of local discretionary approvals and permits needed for projects, improving approval certainty, establishing non-discretionary processes, modifying development standards such as reducing parking requirements, and increasing height limits or other efforts such as taking the fullest advantage of existing streamlining mechanisms provided in state law. 28."Transformative Planning and Implementation Activities" means Housing, planning, infrastructure investments supporting Infill development that facilitates Housing supply, choice and affordability, and other actions that enable meeting Housing goals that also result in Per Capita vehicle miles traveled reductions, including accelerating Infill development, supporting residents through realizing Multimodal Communities, shifting travel behavior through reducing driving, and increasing transit ridership. Transformative Planning and Implementation Activities are meant to address these goals together and to lead to changes in land use patterns and behaviors. Transformative Planning and Implementation Activities shall be in furtherance of all of the following: a. State Planning Priorities, as described in Section 65041.1 of the Government Code. b. Affirmatively Furthering Fair Housing pursuant to Section 8899.50 of the Government Code. c. Facilitating Housing Element compliance for the sixth cycle Regional Housing Needs Assessment pursuant to Section 65302 of the Government Code prepared in accordance with Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. d. A region's Sustainable Community Strategy, as described in paragraph (2) of subdivision (b) of Section 65080 of the Government Code, or Alternative Planning Strategy, as described in paragraph (2) of subdivision (b) of Section 65080 of the Government Code, as applicable. 29."Tribal Entity" means an entity that meets at least one of the following definitions: a. An entity formed by the duly constituted governing body of a California Native American Tribe in Chapter 905 of the Statutes of 2004, which means a Native American tribe located in California that is on the contact list maintained by the Native American Heritage Commission, as described in Section 21073 of the Public Resources Code. b. A Tribally Designated Housing Entity �� d�fi��d ir� �ct�on 41 3(22) of Titl�; 25 of �he nited tat�s Cc�de �r�d ectaon 5Q�04.6.5, c. An Indian Tribe as defined in Section 4103(13)(B) of Title 25 of the United States Code and Section 50104.6.5. 30."Vehicle Miles Traveled" means a metric to evaluate the total miles of vehicles traveling on a roadway over a period of time. 39 31."Vehicle Miles Traveled Per Capita" or "Per Capita Vehicle Miles Traveled" means the number of Vehicle Miles Traveled, per person. 40 Attachment 3: Award Amounts by Eligible Applicant REAP 2.0 MPO/COG Formula-Based Maximum Allocation Amounts The REAP 2.0 Program makes available 85 percent of funds ($510,000,000) to MPOs and COGs through the "Formula Allocations to MPOs and COGs" funding stream. Maximum award amounts are based on California Department of Finance 2030 Population Projections. Ap�li��nt I�tl�x. aw�rd �mc�ur�� Association of Monterey Bay Area Governments $ 10,133,742.41 Butte County Association of Governments $ 2,944,762.37 Fresno Council of Governments $ 13,633,148.06 Kern Council of Governments $ 12,670,717.96 Kings County Association of Governments $ 2,060,590.24 Madera County Transportation Commission $ 2,213,724.74 Merced County Association of Governments $ 3,912,152.75 Metropolitan Transportation Commission $ 102,842,103.03 Sacramento Area Council of Governments $ 33,727,893.48 San Diego Association of Governments $ 43,037,322.72 San Joaquin Council of Governments $ 10,612,514.62 San Luis Obispo Council of Governments $ 3,539,684.58 Santa Barbara County Association of $ 5,839,412.28 Governments Shasta Regional Transportation Agency $ 2,243,909.07 Stanislaus Council of Governments $ 7,535,242.05 Southern California Association of Governments $ 246,024,084.00 Tahoe Regional Planning Agency $ 604,134.15 Tulare County Association of Governments $ 6,424,861.49 41 Attachment 4: Applying Units of Measurement Applicants must provide sufficient evidence that demonstrates a nexus between a Proposed Use and meeting all REAP 2.0 goals and objectives. This table is meant to illustrate one example of how applicants might demonstrate this nexus and measure Policy Outcomes. Step �I: Meet all REAP 2.0 Pragrarn Th'reshoild Requirements Step �: LocatPonal Measurable Outcames Achieving All Cansideratrons, The Proposed Use can be A 5ample of Pofent�al Uses Prograrn orApp/icable measured by, but is not lirnited to: Objectives Populations -AfFordable Housing development ,������r����� -Number of Housing units(total,type, programs Itlfill affordable, and per acre), - Planning activities that lead to ������ m��� -Capital investments to support Nousing increased residentia) and/or P development, mixed-use zoned capacity in th�t f�Cil'tt�t�s - Infill areas (see -Mix of Housing unit types or sizes, areas identified as infill HOusjllg' Attachment 2) -Increasing land use intensities, -Count of sites developable for future - Program-level environmental ������� ������� clearance �n� Housing,and/or -Number of new Housing units supported - Upgrading infrastructure for affordability or provided by the Proposed Use sewer,water, and dry utility systems -Number of new Affordable Housing units, -Number of existing Housing units - Housing mobility strategies, continued to be made available and -Affordable Housing unit , affordable, pt'oduCtion, -Zonin Streamlined Housin Production Affi�`m�ti�ely -Higher Resource g� g -Accessible Housing unit Furthering Fair Communities or ��ncluding permit streamlining),fees, production, incentives, and other approaches to HOusing Areas (see - Reductions to barriers to higher increase Housing choices and affordability, (AFFH} Attachment 2) _Increase accessible number of units density Housing, buildings with 4 above state law, and/or or more units, and accessibility, -Increase in rate of Housing Choice -Outreach strategies to address Voucher usage in high opportunity census local opposition to Proposed Use tracts 42 -Number of new Affordable Housing units, -Number of existing Housing units continued to be made available and affordable, -Zoning, Streamlined Housing Production (including permit streamlining),fees, - Disadvantaged incentives, and other approaches to ' and Historically increase Housing choices and affordability, -Affordable Housing preservation, Underserved -Increase accessible number of units -Anti-displacement protections, Communities above state law - Expanded Housing options, ', (see Attachment -New or enhanced public services and - Housing-supportive Z� community assets such as parks, schools, infrastructure social service programs, active transportation, infrastructure, and other community amenities, and/or -Increased access to public services, -Housing-supportive infrastructure services in areas of concentrated poverty or similar areas -Estimate for VMT reduced Per Capita Land use planning, policies, or -Number of distinct land uses within the investment strategies that result in site, increasing: -Number of distinct land uses around the -Population and employment site, densities, �������� -Number of surrounding connections, -�and use mix, ������� ��{�� - (nfill areas (see -Mix of Housing unit types or sizes, -Street network connectivity, �.������� AttaChment 2) -New or enhanced transit services, -Linkages and pathways with active -Increased transit frequencies and/or transportation infrastructure, ridership, -Accessibility between destinations, -New pedestrian or bicycle pathways, and/or and/or -Contiguousness of land uses and -Limited off-street parking transportation networks Transportation planning, policies, and investment strategies: -Increased transit services and access, -Building at walkable community scales, -Enhanced pedestrian and bicycling safety measures, -Protected pedestrian and bicycling amenities, and/or -Multimodal infrastructure connections with multimodal-mobility trans ortation s stems. A �r�dix � F�ir�a� �r�virc�r�rr��r�fi�l Ar��l �i� ��. c�v 43