DATE: May 7, 2024
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director By: Jeramie Brogan, Management Analyst
SUBJECT: RESOLUTION NO. 7 560 APPROVING PARTICIPATION IN YEAR 4 OF
THE LOS ANGELES URBAN COUNTY PERMANENT LOCAL HOUSING
ALLOCATION ( “PLHA”) PROGRAM; IDENTIFYING PROPOSED
ACTIVITIES FOR $966,044 IN PLHA FUNDING; AND AUTHORIZING THE
MAYOR, OR DESIGNEE, TO SIGN A REIMBURSABLE CONTRACT
WITH THE LOS ANGELES COUNTY DEVELOPMENT AUTHORITY
(“LACDA”)
CEQA: Not A Project
Recommendation: Adopt
SUMMARY
In Fiscal Year s 2020-21, 2021-22, and 2022- 23, the City of Arcadia was allocated a combined total of $ 799,154 in Permanent Local Housing Allocation (“PLHA”) Program funding, as part of the S enate Bill (“SB”) 2 legislation signed into law in 2017. The City Council previously approved two resolutions, in October 2020 and June 2021, authorizing use of these funds for homeless ness programs and/or towards affordable housing development in partnership with the San Gabriel Valley Regional Housing Trust. In May 2023, the City Council approved a third resolution, approving the third year of funding, and incorporating the previous years’ funding. Due to a PLHA requirement that participating cities have a State- approved Housing Element, Arcadia’s funds have been inaccessible to date. However, in February 2024, the City fulfilled this requirement, and Arcadia’s previously held PLHA funding will be released pending the execution of a reimbursable contract with the Los Angeles County Development Authority (“LACDA”).
For Year 4 of the program, the City of Arcadia’s PLHA allocation is $166,890 in new funding, which will be added to previous years’ funding balance. It is recommended that the City Council adopt Resolution No. 7560 approving participation in Year 4 of the Los Angeles Urban County PLHA Program; identifying the use of $966,044 in combined PLHA funding to assist persons in Arcadia who are experiencing or at -risk of homelessness , and/or as matching funds to the San Gabriel Valley Regional Housing Trust ; and authorizing the Mayor, or designee, to sign a reimbursable contract with the Los Angeles County Development Authority (“LACDA”).
Resolution No. 7560 – PLHA Funds
May 7, 2024
BACKGROUND
The PLHA is a Senate Bill 2 (“SB 2”) funded program that was approved by the State legislature in 2017. It is designed to provide an ongoing annual source of funding through State Property Transfer Fees. Funds can be used for construction of affordable housing, programs to assist persons who are experiencing or at risk of homelessness, or other housing-related assistance programs for low-to-moderate income households. Similar to the Community Development Block Grant program for non- entitlement cities , PLHA funding is first allocated to a regional entity, in this case the LACDA. The funding is then distributed annually to individual participating cities according to an allocation formula over a five- year period. Unexpended program funds may be carried over from year to year but must be used within five years of their original allocation date.
The City has previously adopted three resolutions relating to PLHA funds. Resolution No. 7336 was adopted in October 2020, approving participation in Year 1 of the program, and allocating $182,505 in funding for homelessness-related programs. Resolution No. 7374 was adopted in June 2021, approving participation in Year 2 of the program , and allocating an additional $283,670 in PLHA funds for homelessness programs and adding the optional use of funds for work with the San Gabriel Valley Regional Housing Trust on a future affordable housing project. In May 2023, the City Council approved Resolution No. 7494 allocating the carryover of Year 1 and 2 PLHA funding totaling $799,154, which also included the new Year 3 PLHA funding of $332,979, for the activity of homelessness services and prevention programs . All of this combined funding has been targeted to support the City’s ongoing contract with Los Angeles Centers for Alcohol and Drug Abuse (“LA CADA”) for homeless supportive case management services. The use of any remaining PLHA funds not spent on homelessness services and prevention programs is allocated as matching funds for the San Gabriel Valley Regional Housing Trust (“SGVRHT”).
Until recently, Arcadia’s PLHA funding has been inaccessible due to the City’s lack of a certified Housing Element. SB 2 states that a city must have an adopted, certified Housing Element to receive PLHA funding. The City fulfilled th e certification requirement in February 2024, when the California Department of Housing and Community Development found Arcadia’s Housing Element to be in substantial compliance with State law ; therefore, the City can begin the process of executing a contract with the County to receive access to all of the funds.
On April 1, 2024, LACDA issued a bulletin listing the Year 4 PLHA funding allocations for each participating city. Arcadia is listed as eligible to receive $166,890 in Year 4 PLHA funding. To allocate these funds, the City is required to adopt and submit a resolution to LACDA by May 31, 2024, listing the program activities that will be funded. A copy of the April 1, 2024, LACDA bulletin is included as Attachment No. 2. To ensure that the City’s previously approved Year 1-3 PLHA funds totaling $799,154 remain active and available
Resolution No. 7560 – PLHA Funds
May 7, 2024
for future use, allocation and re-approval of this funding is also recommended as part of the approval of Year 4 PLHA funds.
DISCUSSION
The SB 2 legislation relating to PLHA funds specifie s what eligible activities these funds can be used to finance. Activities can be broadly categorized as follows:
1. Activities related to the construction or preservation of affordable housing or supportive housing;
2. Matching funds to regional housing trusts;
3. Homelessness services and prevention programs;
4. Accessibility modifications for lower-income, owner-occupied housing;
5. Acquisition and rehabilitation of foreclosed or vacant homes; and
6. Programs that expand homeownership opportunities including but not limited to down-payment assistance programs.
Of the eligible activities, it is recommended that the City continue to allocate its carryover Year 1-3 PLHA funding totaling $799,154, and allocate its new Year 4 PLHA funding totaling $166,890, for the activity of homelessness services and prevention programs.
Specifically, it is recommended that these monies be used to fund the City’s ongoing contract with LA CADA for homeless supportive case management . It is further recommended that the City Council authorize the use of any remaining PLHA funds not spent on homelessness services and prevention programs for matching funds for the SGVRHT. The City’s Year 1 and Year 2 PLHA funds have a spending deadline of December 31, 2024. Year 3 PLHA funds hav e a spending deadline of December 31, 2025, and Year 4 funds have a spending deadline of December 31, 2026. Using any unspent PLHA funds as matching funds is recommended in lieu of allowing these funds to expire and be returned to the State.
Once the City’s pending contract with LACDA is finalized, reimbursement will be requested for past homeless supportive case management services provided by LA CADA, beginning at the start of their contract in July 2022. C urrent and future contract costs will be submitted on an ongoing basis, subject to funding availability. Any remaining PLHA funds not expended by the respective deadlines will be provided as matching funds to the SGVRHT , in support of their efforts to create affordable housing within the San Gabriel Valley region.
In its April 1, 2024, bulletin, LACDA acknowledged that PLHA funding has experienced a significant change from previous years due to real estate transactions in 2022. While
Resolution No. 7560 – PLHA Funds
May 7, 2024
considered to be a permanent funding source, the revenue from SB 2 will vary from year to year, as revenue is dependent on real estate transactions with fluctuating activity.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), based on Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that it will have no impact on the environment.
FISCAL IMPACT
The PLHA Program is a SB 2 funded program that provides an ongoing annual source of funding through State Property Transfer Fees. The City has been allocated a combined $966,044 of funding for Years 1-4 of the PLHA Program based on the State’s allocation formula. No additional funding is required to participate in the program . If the City does not request the funds and identify a purpose for them, the funds will be returned to the State. Participation in the program will result in a positive impact in that other existing funds would not need to be utilized for this portion of homeless case management and/or future coordination with the San Gabriel Valley Housing Trust. If PLHA funding is not utilized, it is likely that these types of programs would need to be supported with General Fund monies.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7560 approving participation in Year 4 of the Los Angeles Urban County Permanent Local Housing Allocation (“PLHA”) Program, identifying proposed activities for $966,044 in PLHA Funding, and authorizing the Mayor, or designee, to sign a reimbursable contract with the Los Angeles County Development Authority (“LACDA”).
Attachment No. 1: Resolution No. 7560
Attachment No. 2: April 1, 2024, LACDA Bulletin
Attachment No. 1
TO: PARTICIPATING CITIES
The purpose of this bulletin is to provide our Participating Cities (Cities) an update on the Permanent Local Housing Allocation Program (PLHA) funding for Year 4.
The State of California Department of Housing and Community Development released the NOFA for Year 4 in December 2023 and announced th at the County of Los Angeles (County) will receive an allocation of $9,451,755.00. Fund ing has experienced a significant change from previous years due to the real estate transact ions in 2022. Cities who have a State-approved Housing Element are invited to follow the inst ructions below to program their PLHA Year 4 allocation to implement eligible affordable housing programs. Cities can continue to fund existing projects using funding from multiple years.
Attachment A provides the new PLHA Year 4 allocation amounts available to Cities that qualify and wish to utilize these funds for current or new eligible activities. To receive PLHA Year 4 funding, Cities with a State-approved Housing Element who wish to use their available allocation for PLHA Eligible Activities, must submit a Letter of Intent and proposed Exhibit A form to opt-in and receive funding. If applicable, the Letter of Intent must include concise details of the proposed Activity and Sub-Activity and describe how the City will spend the funds by December 31, 2026.
Please consider the complexity of the project being proposed, available resources, and whether the funding amount can be expended by the expenditure deadline. Because the shared allocation limits the amount of funding available to each jurisdiction, PLHA may not be the best funding source for all eligible activities. If you intend to make a change to an existing project that will reallocate funding by 10% or more, LACDA cann ot guarantee a timely reimbursement and you may experience a delay in funding. If a city does not submit a Letter of Intent, the available allocation will be retained by the County and reallocated to Countywide program(s).
Community Development Division – Grants Management Unit (CDD-GMU) Putting Dollar$ into Action
NUMBER: PLHA-24-004
2022 PROGRAM ALLOCATIONS, YEAR 4 FOR THE
PERMANENT LOCAL HOUSING ALLOCATION (PLHA)
PROGRAM FOR URBAN COUNTY PARTICIPATING CITIES
DATE: April 1, 2024
PAGE 1 OF 2
Attachment No. 2
To All Participating Agencies
April 1, 2024
Page Two
Please adhere to the following deadlines to receive funding:
April , 2024 - The Letter of Intent must be completed and submitted to the LACDA (Attachment E).
April 30, 2024 - Proposed Exhibit A form must be submitted (Attachment C); and May 31, 2024 - City Council approval resolution must be submitted (Attachment D).
Please be aware that the County cannot issue PLHA funding to Cities until all conditions for funding and program/regulatory requirements have been met and LACDA receives an executed agreement for PLHA Year 4 funds from the State. It is also important to note that certain activity costs for projects receiving PLHA funding are eligible for reimbursement as long as the expenses are incurred no more than 12-months prior to execution of Standard Agreement between the State and the County.
Should you need assistance in this matter or have any questions related to the PLHA program, you may contact JoAnn Eros-Delgado, Contract Management Supervisor at (626) 586-1749 or [email protected] or Jenny Salazar, PLHA Specialist, at (626) 586-1633 or [email protected].
Sincerely,
LINDA JENKINS, Director
Community Development Division
Community Development Division – Grants Management Unit (CDD-GMU) Putting Dollar$ into Action
Linda Jenkins (Apr 1, 2024 15:32 PDT)
Linda Jenkins
pages 1 of 2
ATTACHMENT A
Permanent Local Housing Allocation 2022 Total Urban County Entitlement $9,451,755 Redistricting Population Counts Less Administration (5%) ($472,588) Round 4 Total 2022-2023 to be Allocated $8,979,167
Population Poverty Overcrwding
City 2020 2020 2020 Factor Allocation
AGOURA HILLS 21,048 798 84 0.004225596 $37,942
ARCADIA 57,180 4,784 743 0.018586347 $166,890
AVALON 3,873 415 133 0.001750789 $15,721
AZUSA 48,801 6,073 1,653 0.023627161 $212,152
BELL 34,644 7,441 2,262 0.027056320 $242,943
BELL GARDENS 41,770 11,005 2,925 0.037379286 $335,635
BEVERLY HILLS 33,709 2,998 467 0.011416855 $102,514
CALABASAS 23,762 2,110 163 0.007417324 $66,601
CLAREMONT 35,462 1,521 153 0.007513354 $67,464
COMMERCE 13,412 2,068 551 0.007645583 $68,651
COVINA 48,710 4,417 1,443 0.019556588 $175,602
CUDAHY 23,606 6,513 1,453 0.020951076 $188,123
CULVER CITY 38,913 2,382 688 0.011609730 $104,246
DIAMOND BAR 55,904 3,696 724 0.016224415 $145,682
DUARTE 21,399 1,972 556 0.008360926 $75,074
EL SEGUNDO 16,575 834 118 0.003929255 $35,281
HAWAIIAN GARDENS 14,212 2,782 851 0.010274501 $92,256
HERMOSA BEACH 19,147 803 195 0.004443213 $39,896
HIDDEN HILLS 2,156 165 15 0.000620884 $5,575
IRWINDALE 1,365 115 39 0.000525328 $4,717
LA CANADA-FLINTRIDGE 20,078 664 39 0.003684468 $33,083
LA HABRA HEIGHTS 5,305 104 32 0.000913139 $8,199
LA MIRADA 48,286 2,309 1,263 0.014671267 $131,736
LA PUENTE 39,705 4,932 1,468 0.019668708 $176,609
LA VERNE 32,134 2,572 324 0.009862996 $88,561
LAWNDALE 32,533 3,889 1,543 0.017098129 $153,527
LOMITA 20,212 2,602 385 0.008829422 $79,281
MALIBU 12,961 1,297 43 0.004158768 $37,342
MANHATTAN BEACH 35,064 1,114 122 0.006547411 $58,790
MAYWOOD 27,127 5,484 2,298 0.022491713 $201,957
MONROVIA 37,488 3,301 760 0.013538887 $121,568
RANCHO PALOS VERDES 42,333 1,511 396 0.009169113 $82,331 ROLLING HILLS ESTS 7,279 194 21 0.001270181 $11,405
SAN DIMAS 33,874 2,433 366 0.009937575 $89,231
SAN FERNANDO 24,244 2,252 1,017 0.010965432 $98,460
SAN GABRIEL 39,899 4,643 1,349 0.018672693 $167,665
SAN MARINO 13,028 925 150 0.003837386 $34,457
SANTA FE SPRINGS 18,131 2,184 673 0.008857323 $79,531
SIERRA MADRE 10,829 667 43 0.002679876 $24,063
SIGNAL HILL 11,430 1,465 309 0.005324117 $47,806
SOUTH EL MONTE 20,693 4,433 1,062 0.015048759 $135,125
SOUTH PASADENA 25,478 1,734 496 0.008117279 $72,886
TEMPLE CITY 36,161 3,560 842 0.014212469 $127,616
WALNUT 29,764 1,976 242 0.008113872 $72,856
WEST HOLLYWOOD 35,506 4,106 395 0.013532996 $121,515
WESTLAKE VILLAGE 8,110 371 7 0.001657389 $14,882
TOTAL PARTICIPATING CITIES 1,223,296 123,616 30,860 0.495975899 $4,453,451 GMU/GPPA/GPA/Allocations/PLHA Formula Allocations FY 2022 March 2024- Round 4 pages 2 of 2
ATTACHMENT A
Permanent Local Housing Allocation 2022 Total Urban County Entitlement $9,451,755 Redistricting Population Counts Less Administration (5%) ($472,588) Round 4 Total 2022-2023 to be Allocated $8,979,167