AGENDA REPORT
Meeting Date: March 4, 2025
Item Number:
To: Honorable Mayor & City Council
From: Logan Phillippo, Real Property Development Manager Jessica Garcia, Management Analyst
Subject: RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY HILLS
AUTHORIZING THE APPLICATION AND PARTICIPATION IN THE
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM ISSUED
BY THE LOS ANGELES COUNTY DEVELOPMENT AUTHORITY
Attachments: 1. Resolution
RECOMMENDATION
Staff recommends the City Council approve a Resolution of the Council of the City of Beverly Hills authorizing the application and participation in the Permanent Local Housing Allocation Program (PLHA), administered by the Los Angeles County Development Authority (LACDA) to receive the City’s funding allocation in the amount of $81,385.00.
INTRODUCTION
The County of Los Angeles (County) through the Los Angeles County Development Authority (LACDA) is in Year-5 of the PLHA Program funded through the California Department of Housing and Community Development (HCD). Revenue for the PLHA Program is generated through recording fees on real estate transactions and, therefore, varies from year to year depending on activity.
Cities who have a State-certified Housing Element are invited to submit a non-competitive counter application to receive PLHA funds. Funding award amounts are calculated through the use of a formula, and as such, each jurisdiction has a prescribed funding amount. The funding amount earmarked for Beverly Hills in Year-5 of the program is $81,385.00. This is a reimbursable grant, and there is no matching requirement. PLHA Year-5 grant funds must be expended within three years after award of the grant funds.
Meeting Date: March 4, 2025
DISCUSSION
To receive PLHA Program funds, cities must have a State-certified Housing Element and agree to spend program funds on eligible activities. In addition, the PLHA program requires that cities commit to be reimbursed for funds expended on housing-related projects and programs that assist in addressing unmet housing needs for their communities. Eligible activities include but are not limited to, acquisition, predevelopment, rehabilitation, and preservation of affordable rental housing, including multi-family residential units, owner occupied units and accessory dwelling units.
As part of the application process, LACDA requires a program input form outlining the eligible activities proposed to utilize program funds. The form requires the City to outline the eligible activities as well as their associated budgets and program administration plans.
Once the application is approved by LACDA, the City would then enter into a reimbursement agreement with the County in order to receive reimbursement for eligible expenses on those eligible activities.
PLHA Eligible Activities
Staff is recommending PLHA funding be utilized for the advancement of the development of affordable housing on City-owned property as outlined in the Implementation Section
10.6 of the approved and adopted 2021-2029 Housing Element.
There are three identified opportunity sites, two of which are already owned by the City and one the City is considering purchasing, that are identified for affordable housing development. The project funds will be utilized to further investigate the feasibility of these sites for affordable housing. In addition to the sites provided for in the Housing Element, the City actively seeks acquisition opportunities for affordable housing development and the project funds could also be utilized in the event new property is acquired and due diligence activities are necessary for site analysis in connection with the proposed acquisition. Funds would not go directly to the purchase price, but rather towards the assessment of the proposed acquisition site.
The PLHA allocation will be utilized for predevelopment expenses including, but not limited to, consulting services and due diligence activities as follows:
Surveys: The City intends to conduct surveys to identify the legal description and encumbrances on various City-owned sites or sites for potential acquisition by the City;
Financial and Real Estate Advisory Consultant Services: The City intends to engage financial and real estate advisors to perform financial analysis on site proformas for proposed affordable housing projects and to assist in negotiations with developers;
Environmental/Seismic Consultant Services: The City intends to conduct predevelopment geotechnical and environmental analysis (Phase 1 and Phase 2 environmental site assessments) for affordable housing projects; and Architectural Consultant Services: The City intends to engage architectural consultants to analyze site conditions, peer-review site plans and drawings proposed by developers and provide related recommendations.
Meeting Date: March 4, 2025
Consultants engaged by the City for these activities will be procured in as required by the City’s procurement policies and practices. Staff will subsequently work with LACDA to set up a reimbursable agreement for the expenses incurred on predevelopment costs considered as eligible activities.
FISCAL IMPACT
Beverly Hills is eligible for the amount of $81,385.00 under the PLHA Year-5 program funds. These grant funds are reimbursable, meaning they require the City to expend funds on the front end, and to submit for reimbursement up to the allocated amount, and do not require a matching component. These expenditures will be tracked separately and submitted for reimbursement. Once reimbursements are provided by the County, Staff will work with the Finance Department to place the grant funds in the appropriate account.
Ryan Gohlich,
Assistant City Manager
Approved By
-1-
B0785-0001\3065379v3.doc
RESOLUTION NO. 25-R-______
RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY
HILLS AUTHORIZING THE APPLICATION AND PARTICIPATION
IN THE PERMANENT LOCAL HOUSING ALLOCATION
PROGRAM ISSUED BY THE LOS ANGELES COUNTY
DEVELOPMENT AUTHORITY.
WHEREAS, Senate Bill (SB2) created the Building Homes and Jobs Act and the Permanent Local Housing Allocation (“PLHA”) Program (“PLHA Program”) , which is the first permanent source of funding for affordable housing;
WHEREAS, revenue is generated through recording fees on real estate transactions and, therefore, will vary from year to year depending on activity; WHEREAS, the PLHA funds, allocated by the Los Angeles County Development Authority provides a stable funding source for local governments to address affordable housing stock shortages by increasing the supply of affordable housing, increasing assistance to affordable owner-occupied workforce housing, assisting persons experiencing or at risk of homelessness, facilitating housing affordability and promoting projects and programs to meet the local government’s unmet share of regional housing needs allocation; WHEREAS, the City Council of Beverly Hills desires to participate in the PLHA Program for the Year-5 period of the PLHA Program, and work with the County of Los Angeles Development Authority to receive its allocation of PLHA funds, in the amount of $81,385; WHEREAS, the City Council of Beverly Hills authorizes staff to administer all aspects of the PLHA Program on behalf of the City for any and all eligible activities, including but not limited to, predevelopment, preservation and rehabilitation of affordable rental or owneroccupied housing, including rent stabilized housing; WHEREAS, the City authorizes the execution of a Reimbursement Contract with the County of Los Angeles in order to receive the PLHA funds; NOW, THEREFORE, IT IS RESOLVED THAT:
Section1. The City Council authorizes the City Manager, or her designee, to execute any and all documents necessary for participation in the Los Angeles County Development Authority’s PLHA Program on behalf of the City of Beverly Hills.
Docusign Envelope ID: F01BD470-BB8B-447C-9570-5E833A1BF564 -2-
B0785-0001\3065379v3.doc
Section 2. Pursuant to the City’s certification in this resolution, the PLHA Program funds will be expended only for eligible projects and consistent with all PLHA Program requirements.
Section 3. The City shall be subject to the terms and conditions as specified in the Reimbursement Agreement and PLHA Program guidelines.
Section 4. The City Clerk shall certify to the adoption of the Resolution and shall cause the Resolution and her certification to be entered in the Book of Resolutions of the Council of the City.
Adopted:
__________________________
LESTER J. FRIEDMAN
Mayor of the City of Beverly Hills
ATTEST:
_____________________(SEAL)
HUMA AHMED
City Clerk
APPROVED AS TO FORM:
_____________________
LAURENCE S. WIENER
City Attorney
APPROVED AS TO CONTENT:
_____________________
NANCY HUNT-COFFEY
City Manager
Docusign Envelope ID: F01BD470-BB8B-447C-9570-5E833A1BF564 Certificate Of Completion
Envelope Id: F01BD470-BB8B-447C-9570-5E833A1BF564 Status: Sent Subject: Complete with Docusign: CLEAN - 250304 - PLHA Grant Submittal Resolution.DOCX Source Envelope:
Document Pages: 2 Signatures: 1 Envelope Originator:
Certificate Pages: 2 Initials: 0 Jessica Garcia
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455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 107.129.111.208
Record Tracking
Status: Original
2/21/2025 4:33:52 PM
Holder: Jessica Garcia
[email protected]
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Deborah R. Hakman For
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Logan Phillippo
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Real Property Development Manager
City of Beverly Hills
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Nancy Hunt-Coffey
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Lester J. Friedman
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Logan Phillippo
[email protected]
Real Property Development Manager
City of Beverly Hills
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Sent: 2/21/2025 4:40:37 PM
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