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January 17, 2023
ITEM TITLE
Grant Application and Appropriation: Authorize Submittal of a State of California Permanent Local Housing Allocation (PLHA) Grant Application, Approve an Amended Plan for Homeless-Related Services, and Appropriate Funds
Report Number: 23-0010
Location: No specific geographic location
Department: Housing and Homeless Services
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Adopt resolutions: (A) authorizing the 2022 annual application for funds of the Permanent Local Housing Allocation (PLHA) grant from the State of California Department of Housing and Community Development (HCD) and approving an amended five-year Plan to fund homeless shelter operations and associated wrap- around services with these funds for all five years; and (B) authorizing the acceptance and appropriation of PLHA Program Grant Funds. (4/5 Vote Required)
SUMMARY
In February 2020, the California Department of Housing and Community Development (HCD) issued a Notice of Funding Availability under the Permanent Local Housing Allocation (PLHA) Grant Program. As an entitlement jurisdiction, the City of Chula Vista applied for the funds in July 2020 and submitted an initial Plan for use of the funds. The PLHA Grant Program requires annual application and additionally requires that the City’s Plan be amended (the “P lan Amendment”) if funding priorities change. This action requests approval of the Plan Amendment, authorization to apply for all available fund allocation s, and acceptance and appropriation of the 2019 PLHA Grant funds ( agreement executed in May 2021 ) and all future PLHA Grant Program funds.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under P a g e | 2
Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
Senate Bill 2 Planning Grants Pro gram (SB 2) was passed by California Legislature in 2017 establishing a permanent source of funding to increase affordable housing in California. This program is funded by certain real estate transactions and estimated to generate between $250 and $300 million annually to be distributed among local jurisdictions throughout the State. The City of Chula Vista is an entitlement jurisdiction and is therefore allocated a certain percentage of funding from the program per year, with an estimated 5 -year allotment of $6,356,898. In 2020, the State required that the City apply and provide a plan for how the funds would be spent (the “Plan”). City submitted an initial application in July 2020 and submitted an initial Plan for how the funds would be spent. In accordance with the program requirements, City is required to submit an additional streamlined application in each of the remaining five years for funds allocated in previous years. City’s 2022 streamlined application requesting additional PLHA fund year a llocations is attached as Attachment 1. The amount ultimately awarded to City for each allocation year depends on the amount of State funds available. To date, the City has been awarded funding in the amount of $1,059,483 from the 2019 fund allocation; City received that 2019 allocation notice in May 2021.
The initial Plan submitted by City to HCD in July 2020 outlined the City’s intent to use the funds for 3 different activities: 1) Bridge Shelter Operations ; 2) Permanent Supportive Housing development; and 3) Accessory Dwelling Unit financing for Chula Vista homeowners. These funding priorities were identified through public participation for the City’s Housing Element 2021-2029 goals. The plan outlined the funding distribution as follows:
Initial Plan Funding Allocation by Year
Activities &
Funding
Commitment
2019 2020 2021 2022 2023
Permanent
Supportive
Housing
80%
ADU
20%
Permanent
Supportive
Housing
80%
ADU
20%
Emergency
Shelter
100%
Emergency
Shelter
100%
Emergency
Shelter
100%
Since then, the City has been able to identify alternative funding methods for activities 2 and 3 through the HOME American Rescue Plan and San Diego Association of Governments Housing Acceleration Program funds. In addition, the City has been awarded County funding to assist with activity 1, an item that will come before the Council in the near future, to assist with capital costs to complete the City’s first Homeless Bridge Shelter. As a result of these changes, staff has determined that it would be appropriate to amend the City’s initial Plan to allow for the allocation of the full PLHA Grant award amount for activities related to emergency and transitional shelter operations and associated wrap -around services in pursuit of placing home less individuals and families in permanent housing.
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As outlined in Chula Vista's Housing Element, the City intends to promote the development of a variety of housing choices, tied to appropriate services to meet the needs of special population groups including the homeless, those “at -risk” of becoming homeless, persons with disabilities, and seniors. With over 312 homeless persons within Chula Vista as of the 2020 Point in Time Count and 68% of those being unsheltered and, as further detailed within the Housing Element, there is a significant gap of the number of unsheltered within the community and the beds available for the general population of homeless.
The construction of the Bridge Shelter has already begun accruing costs in the development phase and the additional PLHA funds are necessary for its operation s in the coming year. The shelter is intended to serve approximately 65 individuals at a time, each of these individuals having an annual income at or below 30% of the area median income, in compliance with PLHA fund requirements. PLHA funds will be used to support the operations of emergency and transitional housing such as the B ridge Shelter and wrap-around supportive services w hich may include case management, street outreach, housing navigation, m eals, bathroom/shower and laundry facilities as well as coordinated service linkages. The Plan Amendment , Attachment 2, now outlines funds to be used as follows:
Plan Amendment Funding Allocation by Year
Activities &
Funding
Commitment
2019 2020 2021 2022 2023
Emergency
Shelter
100%
Emergency
Shelter
100%
Emergency
Shelter
100%
Emergency
Shelter
100%
Emergency
Shelter
100%
Conclusion
There is a significant gap in services being provide to the unsheltered residents of Chula Vista. PLHA Grant funds can be utilized to reduce this gap by providing necessary resources to individuals and families experiencing homelessness. Dedicating 100% of PLHA funds towards emergency shelters and wrap-around services is a commitment from the City to address the issues faced by the unhoused community and provide much needed resources for eventual permanent housing.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Approval of this resolution will accept and appropriate PLHA G rant funds received in the amount of $1,059,483 in the fiscal year 2022-23 budget to fund shelter operations and services. There is no fiscal impact to the General Fund as a result of accepting this grant as funding for this project will come from HCD and will completely offset the project costs.
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ONGOING FISCAL IMPACT
The PLHA Grant will be used to continue funding operations and wrap -around services for emergency housing. Additionally, if the application is successful, these funds may provide program administration costs of up to 5 percent. This allowable administration allocation provides funding for City staff costs that are needed to carry out the proposed activities. It is estimated that the total 5-year allocation will be $6,356,898, as identified below. This action further authorizes the acceptance and appropriation of future funding year allocations.
Estimated 5-Year PLHA Allocation
Allocation Year Amount
2019 $1,059,483
2020 $1,646,765
2021 $1,812,214*
2022 *
2023 *
TOTAL ESTIMATED $6,356,898*
*Estimated or unknown at this time.
ATTACHMENTS
1. PLHA Annual Streamlined Application Submitted in 2022
2. Plan Amendment
Staff Contact: Stacey Kurz, Director of Housing and Homeless Services Dania Gonzalez, Principal Management Analyst