M 1-4 0.
'FiGVED BY
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUN(271 E- R FROM: OFFICE OF THE CITY MANAGER
BY: ALDO E. SCHINDLER, DEPUTY CITY MANAGER / COMMUNITY
DEVELOPMENT
DATE: FEBRUARY 8, 2022
SUBJECT: STATE OF CALIFORNIA PERMANENT LOCAL HOUSING ALLOCATION
FUNDING
RECOMMENDATION
FA
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KUMrou
On November 9, 2021, the City Council adopted Resolution No. 21-8045 to authorize the application and adopt the Permanent Local Housing Allocation (PLHA) 5-year plan. The State of California has reviewed Resolution No. 21-8045 and has requested the resolution be updated to include language pertaining to affordable housing developments. [a]
Fiscal Responsibility
Efficiency & Adaptability
Economic Vibrancy
Qualit� of Life, Infrastructure & Parks
FISCAL IMPACT
W4 TIT F. 1111 a " ITSTrorl
ATTACHMENTS
1 *&*41 R I i I RU 10
WHEREAS, the State of California (the "State"), Department of Housing and Community Development ("Department") issued a Notice of Funding Availability("NOFA") dated 5/3/2021 under the Permanent Local Housing Allocation (PLHA) Program; WHEREAS, the Department is authorized to provide up to $304 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assistance to Cities and Counties (as described in Health and Safety Code section 50470 et seq.(Chapter 364, Statutes of 2017 (SB2)); WHEREAS, the City of Downey is an eligible Local government who has applied for program funds to administer one or more eligible activities; WHEREAS, the Department may approve funding allocations for the PLHA Program, subject to the terms and conditions of the Guidelines, NOFA, Program requirements, the Standard Agreement, and other contracts between the Department and PLHA grant recipients. m =1=1 V MPY04 11 1 1 *
SECTION 1. If the City of Downey receives PLHA funds from the Department pursuant to the above referenced PLHA NOFA, it represents and certifies that it will use all such funds in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including without limitation all rules and laws regarding the PLHA Program, as well as any and all contracts the City may have with the Department.
SECTION 2. The City of Downey is hereby authorized and directed to receive a PLHA ,irant, in an amount not to exceed the five-year estimate of the PLHA formula allocations, as c-tated in Appendix C of the current NOFA, $3,121,674, in accordance with all applicable rules 2nd laws.
SECTION 4. Pursuant to Section 302(c)(4) of the Guidelines, the City of Downey's PLHA Plan for the 2019-2023 Allocations is attached to this resolution (Exhibit A), and the City hereby adopts this PLHA Plan and certifies compliance with all public notice, public comment, and public hearing requirements in accordance with the Guidelines.
SECTION 6. The City of Downey certifies that it has or will subgrant some or all of it;-� PLHA funds to another entity or entities. Pursuant to Guidelines Section 302(c)(3), "entity" means a housing developer or program operator, but does not mean an administering Local government to whom a Local government may delegate its PLHA allocation.
Attachment "A"
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SECTION 6. The City of Downey certifies that its selection process of these iubgrantees was or will be accessible to the public and avoided or shall avoid any conflicts of - • f♦ - -I . • • • - ■ k
SECTION 8. The City of Downey certifies that, if funds are used for the development of an Affordable Rental Housing Development, the Local government shall make PLHA assistance in the form of a low -interest, deferred loan to the Sponsor of the Project, and such loan shall be evidenced through a Promissory Note secured by a Deed of Trust and a Regulatory Agreement shall restrict occupancy and rents in accordance with a Local government -approved underwriting of the Project for a term of at least 55 years.
SECTION 9. The City of Downey shall be subject to the terms and conditions as specified in the Standard Agreement, the PLHA Program Guidelines and any other applicable SIB 2 Guidelines published ry the Department.
SEMON 10. The City Manager is authorized to execute the PLHA Program Application,the PLHA Standard Agreement . • any subsequent- • - or •• •
BLANCA PACHECO, Mayor
U144ag
MARIA ALICIA DUARTE, CIVIC
City Clerk
I AEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a Regular meeting held on the 8th day of February, 2022 by the following vote, to wit:
AYES:
Council Members:
NOES:
Council Member:
ABSENT:
Council Member:
ABSTAIN:
Council Member:
mmemmmmomm"WOUT 0
City Clerk
W /:11:3 k r�1
302JEMLtlan J_Rev5114,21,
14"2
The City of DDwitey plans to use PLHA funds in the following ways: 1) To assist persons who are expeniiincing or are at risk of tma meEossaless by pravl6q rapid lahousing, rernA assistance, mid supportwek'Ase management services; 2)ln partnership with the County of Los Angeles, to fund predevelopment and construction involving the construction of transitional and supportive housing in the City of Downey, �302(clil4llfllt) Provide a description of the way the Local government will pnoffte investments that increase the supply othousing for households with incomes at or below 60 percent of Area Median Income 'AMI). -
kil funding will be allocated to activity #6 which seeks to benefit those persons at or less than 30% of AW, which includes persons who are wqen4nong or at risk oP horaetessraas$, Sprang the-Kierneless community with PHLA funds meets the requirement to prioritize investments that increase the supply of housing for households at or below 60% AML Ian is cons0aeril with s Houslnt Element,
The activities receiving PLHA allocations is consistent with the programs, potions, and goals of the City's 2014-2021 Htacp9ing Element. Seclion 2 of the City's Hot4ing Element sets forth programs tosuppit ioustnq throughout the City, including Goal 3 : Provide Housing Assistance Where Needed- Through this goal, the City seeks to encourage and facilitate affordable and special needs housing through financial asslvsnce and other means. One of the objectives of this program is to apply for State financing subsidies as feasible.'Using PLHA funds to support homeless services and provide transitional and supportive housing is consistent with the City's Housing Element policies and will achieve the goal to assist a number of groups with special housing needs in finding parent and affordable housing. In addition, the proposed :ILHA activities are consistent with the following goals and policies set forth in the Housing Element: Policy 3, 1; Use public financial resources, as feasible, to support the provision of housing for lower income iousanolds and special needs groups,"which includes extremely low-income households that are less than or equal to 30% AMI, PLHA Page 1 302(c)(4) Plan
PLHA Page 2 302(c)(4) Plan