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G.11 - JHD Housing Element ContractPlanning Commission Professional Services Agreement for the Preparation of the 2021-2029 Housing Element March 23, 2021 2030 VISION Goal #1 & Goal #3 •Ensuring Fiscal Viability •Promote Economic Development by having an internally consistent General Plan Background California State law requires that the City update the Housing Element every eight years.These frequent updates are required because housing is critical to ensure economic prosperity and quality of life State law requires the adoption of the Housing Element by October 2021 but provides a 120-day grace period to comply.Non-compliance with State Housing Element law could result in fines and loss of sources of funding currently provided by the State What is RHNA? RHNA stands for “Regional Housing Needs Assessment.”Every eight years,the State of California provides the number of housing units that should be accommodated in the Southern California Association of Governments (SCAG)five (5)counties region.SCAG allocates RHNA contributions to the respective counties (San Bernardino,Riverside, Orange,Ventura,Los Angeles)and incorporated cities As a part of the Housing Element Update,the City must demonstrate to the State that there is available capacity for accommodating the County’s RHNA contribution.For the 2021-2029 planning cycle,the City received the allocation below: City of Grand Terrace 2021-2029 RHNA Allocation Income Level Income Level Very Low 189 Low 92 Moderate 106 Above Moderate 243 Total Allocation 630 John H. Douglas (JHD) Contract The cost proposal is $68,950,plus a $6,895 contingency,which will not be used without prior staff approval.The Housing/Safety Element cost will be mostly covered through an approved Local Early Action Planning (LEAP)Grant which the City Council authorized us to pursue.The City subsequently received a grant approval of $65,000 Within the Council packet,attached is: •The proposed Housing Element consultant services contract with Mr. Douglas •the acceptance from the California Department of Housing and Community Development (HCD)for Grand Terrace’s approval of a LEAP Grant for $65,000 •City Council Resolution 2020-18 authorizing City Staff to pursue the grant General Plan Consistency Staff is also seeking,separate from this contract,a Regional Early Action Planning (REAP)Grant that will provide additional support from San Bernardino County Transportation Authority (SBCTA)for the City to ensure General Plan Element consistency.The City has also received an SB2 Planning Grant to satisfactorily incorporate necessary amendments to the affordable housing implementation measures in the Housing Element,General Plan,and/or related CEQA environmental documentation Recommendation 1.Approve a Professional Services Agreement Between the City of Grand Terrace and J.H.Douglas and Associates for Housing Element Consultant for the 2021-2029 Housing Element Preparation in the amount of $68,950 with a 10%contingency of $6,895 2.Authorize the City Manager to Execute the Agreement subject to the City Attorney's approval as to form 3.Authorize the appropriation of the following funding sources:Local Early Action Planning (LEAP)Grant of $65,000 and General Fund of $3,950 Planning Commission Professional Services Agreement for the Preparation of the 2021-2029 Housing Element March 23, 2021