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(Section 601(c) of the Guidelines). <br />Refer to Section 301 of the Guidelines for a list of all ineligible activities. <br />Vill. Threshold Requirements <br />In accordance with Article II, Section 201 of the Guidelines, all applicants must meet the <br />following threshold requirements: <br />(1) Housing element compliance: The applicant must have a housing element that <br />has been adopted by the jurisdiction's governing body by the date the applicant <br />submits the application package, and is subsequently determined to be in <br />substantial compliance with state housing element law pursuant to Gov. Code <br />Section 65585 by the time of award. A jurisdiction's current housing element <br />compliance status can be obtained by referencing the Department's website at <br />http://www.hcd.ca.gov/community-development/housing-element/index.shtml or <br />emailing the Department at sb2plan ninggrantCa-)hcd.ca.gov. For more information on <br />housing element requirements, please contact Paul McDougall at <br />paul.mcdougallahcd.ca.gov. <br />Pursuant to Section 201(a)(2) of the Guidelines, applicants not meeting housing <br />element requirements may be considered to meet this threshold requirement at the <br />discretion of the Department on a case by case basis by applying factors such as <br />significant progress in meeting housing element requirements (e.g., a draft found tc <br />meet statute, rezoning near completion), proposing activities to meet housing <br />element requirements (e.g., rezoning to accommodate housing needs pursuant to <br />Gov. Code Section 65583(c)(1)) and adoption of a compliant element prior to the <br />award of funds. <br />(2) Annual Progress Report (APR) on the housing element: The applicant must <br />submit the APR to the Department, as required by Gov. Code section 65400, for the <br />current or prior year by the date the applicant submits the application package. <br />(3) Nexus to accelerating housing production: The applicant must propose and <br />document plans or processes that accelerate housing production. The application <br />must demonstrate a significant positive effect on accelerating housing production <br />through timing, cost, approval certainty, entitlement streamlining, feasibility, <br />infrastructure capacity, or impact on housing supply and affordability. An application <br />not utilizing Priority Policy Areas must include an explanation and documentation of <br />the nexus plans or processes impact on accelerating housing production based on <br />a reasonable and verifiable methodology and must utilize the Department's form <br />(see Attachment 2 in the Application). A verifiable methodology may include a <br />statement of support from a non-profit or for -profit developer that is active in the <br />locality. <br />Applicants proposing Priority Policy Areas do not require a nexus demonstration <br />and are automatically deemed to accelerate housing production without any <br />documentation. Pursuant to Section 102(q) of the Guidelines, Priority Policy Areas <br />means any of the following: <br />CA HCD Notice of Funding Availability 559-27 SB 2 Planning Grants NOFA Year-1 <br />