CITY OF COMMERCE
AGENDA REPORT
TO: The Honorable City Council
FROM: City Manager
SUBJECT: PUBLIC HEARING TO CONSIDER AND ADOPT A RESOLUTION APPROVING PARTICIPATION IN THE LOS ANGELES URBAN COUNTY PERMANENT LOCAL HOUSING ALLOCATION PROGRAM AND AUTHORIZING THE EXECUTION OF A REIMBURSABLE CONTRACT WITH THE LOS ANGELES COUNTY DEVELOPMENT AUTHORITY MEETING DATE: February 11, 2025
RECOMMENDATION:
Conduct the public hearing.
Adopt the proposed Resolution approving participation in the Los Angeles Urban County Permanent Local Housing Allocation (PLHA) Program and authorizing the Mayor, or designee, to sign a Reimbursable Contract with the Los Angeles County Development Authority (LACDA).
BACKGROUND:
The California Department of Housing and Community Development (HCD) announced the release of funding for the Permanent Local Housing Allocation (PLHA) program. Funding for this program is provided pursuant to Senate Bill 2 (SB 2), which established a permanent source of funding intended to increase the affordable housing stock in California. The PLHA program is intended to increase supply of housing for households at or below 60% of area median income; increase assistance to affordable owner-occupied workforce housing; assist persons experiencing or at-risk of homelessness; facilitate housing affordability; and promote projects and programs to meet regional housing need allocations.
On behalf of the County of Los Angeles, the Los Angeles County Development Authority (LACDA) applied for the County’s allocation of funding and is responsible for administering the PLHA funds for the Los Angeles Urban County which is comprised of all unincorporated areas of the County and 46 cities, including the City of Commerce.
Staff received a letter dated December 3, 2024, from LACDA informing the City that its tentative Year 5 PLHA funding allocation is $59,326. The letter also stated the following:
The City of Commerce will be required to enter a contract with 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.
To receive funding, the City must have a State approved Housing Element at the time of the award commitment from the State to LACDA.
The City must submit a letter of intent, complete an exhibit form, provide a city council approved resolution, and provide proof of 30-day Public Notice by February 14, 2025.
ANALYSIS:
The City is interested in using its Year 5 PLHA allocation to provide grants up to $25,000 to rehabilitate owner-occupied housing units that meet the needs of a growing workforce earning up to 120% of Area Median Income (AMI).
In response to the letter received from LACDA, the proposed Resolution is being brought to City Council. The Resolution approves the City’s participation in the Los Angeles Urban County PLHA Program and authorizes the execution of a contract with the County of Los Angeles to allow the City to receive the PLHA funds.
Additionally, the City must allow the public an adequate opportunity to review and comment on the City’s Year 5 activity plan. The activity plan details the manner in which the allocated funds will be used on eligible activities. To meet LACDA’s requirement, a Public Notice was published in the Los Cerritos Community News Digital Edition on January 10, 2025 allowing for a 31-day public review and comment period of the Year 5 activity plan. The notice and plan were also published on the City’s website.
As of writing this report, no comments were received by staff. Any comments received after the publication of this report will be delivered to the City Council and made available to the City Council and the public at the Public Hearing on February 11, 2025.
FISCAL IMPACT:
None. The estimated funding amount of $59,326 will provide grants to residents earning up to 120% AMI for rehabilitation of owner-occupied housing. The PLHA program does not require any matching funds.
ALTERNATIVES:
Approve Staff’s recommendation
Disapprove Staff’s recommendation
Provide Staff with alternative direction
ATTACHMENTS:
Resolution
Year 5 Activity Plan
Prepared By: Megan LeNoue, Consultant
Reviewed By: Louis Morales, Director of Economic Development and Planning Approved as to Form: Noel Tapia, City Attorney
Respectfully submitted: Ernie Hernandez, City Manager