DATE: February 4, 2025
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director By: Jeramie Brogan, Management Analyst
SUBJECT: RESOLUTION NO. 7612 APPROVING PARTICIPATION IN YEAR 5 OF
THE LOS ANGELES URBAN COUNTY PERMANENT LOCAL HOUSING
ALLOCATION ( “PLHA”) PROGRAM; IDENTIFYING PROPOSED
ACTIVITIES FOR $130,263 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 Years 2020-21 through 2023-24, the City of Arcadia was allocated a combined total of $966,044 in Permanent Local Housing Allocation (“PLHA”) Program funding, as part of the 2017 Senate Bill (“SB”) 2 legislation. The City Council has previously approved the use of these funds for homelessness programs and supporting affordable housing development in partnership with the San Gabriel Valley Housing Trust.
For Year 5 of the program, the City of Arcadia’s PLHA allocation is $130,263 in new funding. Due to the reduced funding allocation for Year 5, it is recommended that the entirety of Year 5 funds be used toward the City’s homeless supportive case management and housing navigation services, consistent with their use to date . Therefore, it is recommended that the City Council adopt Resolution No. 7612 approving participation in Year 5 of the Los Angeles Urban County PLHA Program; identifying the use of $130,263 in PLHA funding to assist persons in Arcadia who are experiencing or at -risk of homelessness; and authorizing the Mayor, or designee, to sign a reimbursable contract with the Los Angeles County Development Authority (“LACDA”).
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
Resolution No. 7612– PLHA Funds
February 4, 2025
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 , 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 four resolutions related to PLHA funds, authorizing use of these funds for homelessness programs and/or to support affordable housing development, in partnership with the San Gabriel Valley Housing Trust. In practice, all funding from Year 1 -4 of the program has been used to support the City’s ongoing contract with Los Angeles Centers for Alcohol and Drug Abuse (“LA CADA”) for homeless supportive case management services. To date, no funding has been allocated as matching funds to the San Gabriel Valley Regional Housing Trust (“SGVRHT”).
Arcadia’s PLHA funding was inaccessible until last year when the City was able to fulfill a requirement under SB 2, which stated that participating cities must have an adopted, certified Housing Element to receive PLHA funding. After the City’s Housing Element was certified by the State of California Department of Housing and Community Development in February 2024, contracts were executed for the first 3 years of PLHA funding, and reimbursement for past and current LA CADA contract costs are in progress. Arcadia’s Year 4 PLHA contract is pending.
On December 3, 202 4, LACDA issued an Award Letter announcing the Year 5 PLHA funding allocation for Arcadia. Arcadia is eligible to receive $130,263 in Year 5 PLHA funding. To allocate these funds, the City is required to adopt and submit a resolution to LACDA by February 14, 2025, listing the program activities that will be funded. A copy of the December 3, 2024, Award Letter is included as Attachment No. 2.
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;
Resolution No. 7612– PLHA Funds
February 4, 2025
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 Year 5 PLHA funding for homelessness services and prevention programs. Specifically, it is recommended that the $130,263 be used to fund the City’s ongoing contract with LA CADA for homeless supportive case management . The City’s Year 5 PLHA funds have a spending deadline of June 30, 2028.
In previous years, the City Council authorized use of any funds not spent on the LA CADA contract as matching funds to the SGVRHT, in support of their efforts to create affordable housing within the San Gabriel Valley region; however, based on the current trend of decreased PLHA allocations, those funds may not be able to cover the entirely of LA CADA’s projected contract costs beginning in Fiscal Year 2025- 26, and supplemental funding may be necessary to fully fund the contract at current service levels. The revenue from SB 2 will vary from year to year, as revenue is dependent on real estate transactions with fluctuating activity . Should PLHA allocations increase in future years, providing matching funds to the SGVRHT may be revisited.
LACDA requires a 30-day Public Notice to provide the public an opportunity to comment on the proposed use of funds. This item was noticed to the public on January 2, 2025, and no public comments have been received.
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 an SB 2 funded program that provides an ongoing annual source of funding through State Property Transfer Fees. Arcadia has been allocated a total of $130,263 for Year 5 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. To date, PLHA funds have been used to fund LA CADA’s contract with the City, beginning in July 2022. As previously mentioned, supplemental funding for the contract may be necessary beginning in Fiscal Year 2025- 26, or the number of case managers will need to be reduced.
Resolution No. 7612– PLHA Funds
February 4, 2025
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. 7612, approving participation in Year 5 of the Los Angeles Urban County Permanent Local Housing Allocation ( “PLHA”) Program, identifying proposed activities for $130,263 in PLHA funding, and authorizing the May or, or designee, to sign a reimbursable contract with the Los Angeles County Development Authority (“LACDA”).
A
ttachment No. 1: Resolution No. 7612
Attachment No. 2: December 3, 2024, LACDA Award Letter
RESOLUTION NO. 7612
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARCADIA APPROVING PARTICIPATION IN YEAR 5 OF THE LOS
ANGELES URBAN COUNTY PERMANENT LOCAL HOUSING
ALLOCATION ("PLHA") PROGRAM; IDENTIFYING PROPO SED
ACTIVITIES FOR $130,263 IN PLHA FUNDING; AND
AUTHORIZING THE MAYOR, OR DESIGNEE, TO SIGN A
REIMBURSABLE CONTRACT WITH THE LOS ANGELES
COUNTY DEVELOPMENT AUTHORITY ("LACDA'')
WHEREAS, the City of Arcadia desires to participate in Year 5 of the Los Angeles Urban County Permanent Local Housing Allocation ("PLHA") Program; and WHEREAS, the City intends to authorize the execution of a contract with the Los Angeles County Development Authority acting on behalf of the County of Los Angeles in order to receive said PLHA funds;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA HEREBY RESOLVES AS FOLLOWS:
SECTION 1. The City Council approves the use of $130,263 in new Year 5 PLHA funds, for the activities of assisting persons in Arcadia who are experiencing or at risk of homelessness.
SECTION 2. The City Council authorizes the Mayor, or his/her designee, to execute any and all documents, including a reimbursable contract with the Los Angeles County Development Authority acting on behalf of the County of Los Angeles, necessary for participation in the Los Angeles Urban County PLHA Program on behalf of the City of Arcadia.
SECTION 3. The City Council determines that 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.
1 Attachment No. 1
SECTION 4. The City Clerk shall certify to the adoption of this Resolution.
Passed, approved and adopted this 4th day of February, 2025.
ATTEST:
City Clerk
APPROVED AS TO FORM:
Michael J�' aur City Attorney
Mayor of the City of Arcadia
2 D
ecember 3, 2024
D
ominic Lazzaretto, City Manager
City of Arcadia
240 W. Huntington Drive
Arcadia, CA 91007
D
ear Dominic Lazzaretto:
A
WARD LETTER NOTICE YEAR 5 (2023 ALLOCATION)
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM
Th
e Los Angeles County Development Authority (LACDA) is pleased to announce that the City’s tentative Year 5 Permanent Local Housing Allocation (PLHA) funding allocation is $130,263 . O verall, LACDA experienced a decreased level of funding for Year 5 PLHA funds, which is why you will see less funding available now compared to prior years.
O
nce the LACDA receives the Year 5 funding from the State of California Department of Housing and Community Development (HCD), the city of Arcadia will be required to enter a contract with the LACDA that will set forth the conditions for funding and program/regulatory requirements that are required to be met for the funding and implementation of the City’s PLHA funded activity. Please note that in order to receive funding, the City must be in compliance, specifically having a State approved Housing Element at the time of the award commitment from the State to LACDA.
I
f you wish to accept these funds for current or new eligible activities, the city of Arcadia must:
1. S
ubmit a Letter of Intent which includes concise details of the proposed Activity and Sub-Activity and describes how the City plans to expend the funds by June 30, 2028;
2. Complete a proposed Exhibit A form for the planned activity;
3. Provide a city council approved resolution; and
4. Provide proof of 30-day Public Notice.
P
lease submit all required documentation on or before February 14, 2025. If the Letter of Intent, including supporting documentation is not received by the due date, the available allocation will be retained by the County and reallocated to Countywide program(s).
Attachment No. 2
Dominic Lazzaretto, City Manager
December 3, 2024
Should you have any PLHA funding allocation questions, please contact Jenny Salazar, PLHA Specialist at (626) 586-1633 or [email protected]. For assistance related to your PLHA program activities, please contact your contract manager, Jeffrey Badre at Jeff[email protected] or (626) 586-1719.
Sincerely,
LINDA JENKINS, Director
Community Development Division
c: Jason Kruckeberg, Primary
Henry Chen, Financial Director
Attachments
LJ:MC:JED:JS:AB:lh
PLHA Award Letter Notice_Year
Micah Chen (Dec 3, 2024 15:23 PST)
Micah Chen