Discussion:
The PLHA funding for the City is approximately $700,000, distributed over five years. In order to receive PLHA funding, the City must submit a plan as part of its application package that identifies how it will use the funding. Provided below is a list of proposed eligible activities.
1. Aliso Viejo Town Center: 85% of the PLHA funding will be allocated towards the predevelopment efforts of the Aliso Viejo Town Center (AVTC) concept plan.
Specifically, the consulting efforts to further develop and implement the AVTC concept plan for the future mixed-use building, which will include a percentage of affordable housing at varying income levels. To date, the consultants and City attorney reviewed feasibility studies, conducted additional research, prepared revised design concepts and detailed proforma, and participated in meetings with City staff and certain Town Center property owners. Currently, efforts are pending to remove land use encumbrances to allow for residential uses in addition to existing uses, among other things. Additional work will be needed over the next few years to partner with private property owners, hire a developer, and go through the local entitlement process leading to eventual construction.
2. Repair and Maintenance of City-Owned Affordable Units: 10% of the PLHA funding will be allocated towards the annual maintenance of the three City-owned affordable units, HOA dues, and property taxes.
3. Administrative Costs: 5% of the PLHA funding will be allocated for associated administrative costs.
Environmental:
CEQA Guidelines Section 15378 defines a project as an action which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The proposed request is to apply for state funding. Any future projects associated with PLHA funding will be reviewed independently for compliance with CEQA.
Public Notice:
A public hearing notice was published in the Laguna Niguel News on February 29, 2024.
Attachments:
1. Resolution
2. PLHA Plan
112
RESOLUTION NO. 2024-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALISO
VIEJO, CALIFORNIA, AUTHORIZING THE APPLICATION AND
ADOPTING THE PLHA PLAN FOR THE PERMANENT LOCAL HOUSING
ALLOCATION PROGRAM
WHEREAS, the Department is authorized to provide up to $296 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assistance to Cities and Counties (as described in Health and Safety Code section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)); and WHEREAS, the State of California (the “State”), Department of Housing and Community Development (“Department”) issued a Notice of Funding Availability (“NOFA”) dated 12/29/2023 under the Permanent Local Housing Allocation (PLHA) Program; and WHEREAS, the City of Aliso Viejo is an eligible Local government who has applied for program funds to administer one or more eligible activities, or a Local or Regional Housing Trust Fund to whom an eligible Local government delegated its PLHA formula allocation; and
WHEREAS, the Department may approve funding allocations for PLHA Program, subject to the terms and conditions of the Guidelines, NOFA, Program requirements, the Standard Agreement, and other contracts between the Department and PLHA grant recipients;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALISO VIEJO AS FOLLOWS:
Section 1: If Applicant receives a grant of PLHA funds from the Department pursuant to the above referenced PLHA NOFA, it represents and certifies that it will use all such funds in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including without limitation all rules and laws regarding the PLHA Program, as well as any and all contracts Applicant may have with the Department.
Section 2: Applicant is hereby authorized and directed to receive a PLHA grant, in an amount not to exceed the five-year estimate of the PLHA formula allocations, as stated in Appendix B of the current NOFA ($715,062) in accordance with all the applicable rules and laws.
Section 3: Applicant hereby agrees to use the PLHA funds for eligible activities as approved by the Department and in accordance with all Program requirements, Guidelines, other rules and laws, as well as in a manner consistent and in compliance with the Standard Agreement and other contracts between the Applicant and the Department.
113
Section 4: Pursuant to Section 302(c)(4) of the Guidelines, Applicant’s PLHA Plan for the 2019-2023 Allocations is attached to this resolution, and Applicant hereby adopts this PLHA Plan and certifies compliance with all public notice, public comment, and public hearing requirements in accordance with the Guidelines.
Section 5: Applicant certifies that it has or will subgrant some or all of its PLHA funds to another entity or entities. Pursuant to Guidelines Section 302(c)(3), “entity” means a housing developer or program operator but does not mean an administering Local government to whom a Local government may delegate its PLHA allocation.
Section 6: Applicant certifies that its selection process of these subgrantees was or will be accessible to the public and avoided or shall avoid any conflicts of interest.
Section 7: Pursuant to Applicant’s certification in this resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements.
Section 8: Applicant shall be subject to the terms and conditions as specified in the Standard Agreement, the PLHA Program Guidelines and any other applicable SB 2 Guidelines published by the Department.
Section 9: The City Manager is authorized to execute the PLHA Program Application, the PLHA Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the PLHA grant awarded to Applicant, as the Department may deem appropriate.
PASSED, APPROVED AND ADOPTED this 20th day of March, 2024. __________________________
Mike Munzing
Mayor
APPROVED AS TO FORM: ATTEST:
__________________________ __________________________
Scott C. Smith, City Attorney Mitzi Ortiz, MMC, City Clerk 114
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ALISO VIEJO )
I, MITZI ORTIZ, City Clerk of the City of Aliso Viejo, California, DO HEREBY CERTIFY that the foregoing is the original of Resolution No. 2024-__ duly passed and adopted by the City Council of the City of Aliso Viejo at their regular meeting held on the 20th day of March 2024, by the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
___________________________
MITZI ORTIZ, MMC
CITY CLERK
(SEAL)
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2023 Allocation
Admin 5%
Funds Allocated 95%
Total Percentage of Funds
Allocated for 2023 100%
Total Percentage of Funds Allocated Calculator (2020 - 2023) 2022 Allocation
Admin 5%
Funds Allocated 95%
Total Percentage of Funds
Allocated for 2022 100%
Admin
Funds Allocated
Total Percentage of Funds
Allocated for 2021
5%
95%
100%
2021 Allocation2020 Allocation
Admin 0%
Funds Allocated 95%
Total Percentage of Funds
Allocated for 2020 95%
§302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government’s Housing Element.
This Plan is consistent with the following programs identified in the City's Housing Element which outline housing goals and policies:
1) Policy H-1.1: Identify sites appropriate for the development of a variety of housing types and price ranges to meet the needs of all socioeconomic segments of the community; 2) Policy H-1.4: Ensure that a portion of future residential development is affordable to low- and very low-income households; 3) Policy H-1.6: Encourage the use of grant funds to purchase available residential units in order to increase the supply of units affordable to low- and moderate- income households; and 4) Goal H-3b: Increase the supply of affordable housing in high opportunity areas. §301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-,very low-, low-, or moderate-income households, including necessary Operating subsidies.
§302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for each proposed Affordable Rental Housing Activity. §302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.
The City of Aliso Viejo (City) plans on utilizing its allocated PLHA funds for the following two activities:
1) preservation of rental housing opportunities for low-income households; and 2) development of rental housing opportunities.
§302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income (AMI).
The City’s PLHA funds will focus on subsidizing rental housing for households at or below 60% of the AMI.
The City will allocate 10% of their PLHA allocation towards Activity #1 for the repair and maintenance of three recently purchased single family rental housing units which will be affordable for households earning 60% of Area Median Income (AMI) or below.
Funding Allocation Year 2020 2021 2022 2023
Complete the table below for each proposed Affordable Rental Housing Activity to be funded with 2020-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting). §302(c)(4) Plan Rev. 02/01/24
2 §302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity. §302(c)(4)(E)(i) Percentage of Funds Allocated
for the Proposed Affordable Rental Housing
Activity
10% 10% 10% 10%
§302(c)(4)(E)(ii) Area Median Income Level
Served 60% 60% 60% 60%
214 n/a
TOTAL
642
§302(c)(4)(E)(ii) Unmet share of the RHNA at
the AMI Level
Note: complete for years 2020, 2021, 2022
only
The project will include the following stages:
1. Rehabilitation design for rental property;
2. Publish an RFP for construction rehabilitation; and
3. Construction over a six-month period.
§301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days. 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years
§302(c)(4)(E)(iv) Period of Affordability for the
Proposed Affordable Rental Housing Activity
(55 years required for rental housing
projects)
55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years §302(c)(4)(E)(ii) Projected Number of
Households Served 0011
214 214
Complete the table below for each proposed Affordable Rental and Ownership Housing Activity to be funded with 2020-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting).
Type of Affordable Housing Activity Rental:
Development
Rental:
Acquisition
Rental:
Development
Rental:
Development
642
§302(c)(4)(E)(ii) Area Median Income Level
Served
60% 60% 60% 60% TOTAL
214 214
§302(c)(4)(E)(ii) Unmet share of the RHNA at
AMI Level
Note: complete for years 2020, 2021, 2022
only
214
§302(c)(4)(E)(ii) Projected Number of
Households Served 000 2 0 20
§302(c)(4)(E)(i) Percentage of Funds Allocated
for Each Affordable Housing Activity 85% 85% 85% 85%
n/a
Anticipated major steps: 1. Prepare an MOU with property owners; 2. Publish an RFP for project developer pro
3. Construct the AVTC project.
§302(c)(4)(E)(iv) Period of Affordability for the
Proposed Activity (55 years required for
rental housing projects)
55 Years 55 Years 55 Years 55 Years
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of each Affordable Rental and Ownership Housing project. §302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for each proposed Affordable Rental and Ownership Housing Activity. Enter Percentage of Funds Allocated for Affordable Owner-occupied Workforce Housing 0%
The City is working on the Aliso Viejo Town Center (AVTC) Concept Plan, which includes a mixed-use building and affordable rental housing at varying income levels. Currently, the consultants and City attorney have reviewed feasibility studies, conducted additional research, prepared revised design concepts and detailed proforma, and participated in meetings with City staff and AVTC property owners. These meetings have recently gained more traction and the team is now at the stage of finding opportunities to incentivize the remaining property owners to participate in the future implementation of the Town Center Vision Plan.
Funding Allocation Year 2020 2021 2022 2023
File Name: Plan Adoption Reso §302(c)(4)(D) Evidence that the Plan was authorized and adopted by resolution by the Local jurisdiction and that the public had an adequate opportunity to review and comment on its content. Uploaded to HCD? Yes PLHA Page 1 302(c)(4) Plan116
PLHA Page 2 302(c)(4) Plan117