Agenda Report
Fullerton City Council
MEETING DATE: June 7, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: ERIC J. LEVITT, CITY MANAGER
PREPARED BY: KELLEE FRITZAL, COnsultant / specialist
TAYLOR SAMUELSON, ADMINISTRATIVE ANALYST II
SUBJECT: APPLICATION AND RECEIPT OF SB 2 PERMANENT LOCAL HOUSING ALLOCATION FUNDS
SUMMARY
City Council consideration of a resolution authorizing application and receipt of SB 2 funding for projects utilizing permanent local housing allocation funds and granting City Manager or Director of Community and Economic Development authority to execute related documents.
RECOMMENDATION
Adopt Resolution No. 2022-XXX.
RESOLUTION NO. 2020-XXX - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, AUTHORIZING APPLICATION AND RECEIPT OF FUNDING FOR PROJECTS UTILIZING PERMANENT LOCAL HOUSING ALLOCATION FUNDS Authorize appropriation of SB 2 allocations.
PRIORITY POLICY STATEMENTS
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
Funding varies by fiscal year (FY). In FY 2019-20 (referred to by the state as 2019) the City received $688,452 and expended funds in compliance with the PHLA grant. Adoption of the resolution allows the City to apply for and accept $1,070,068 for FY 2020-21. Future allocations shift according to a state formula based on real estate transactions with fluctuating activity.
The program is a reoccurring formula-based annual grant program which requires entitlement cities to re-apply as well as recertify for funds annually. This item has no fiscal impact to the General Fund and no match requirement for this program.
DISCUSSION
The State of California, Department of Housing and Community Development (HCD) has approved an authorization to award the City of Fullerton $1,070,068 in funds for the Permanent Local Housing Allocation program (PLHA). The Building Homes and Jobs Act (SB 2) established the PLHA in 2017.
The program increases supply of housing for households at or below 60% of the area median income, assists with affordable housing, promotes geographic equity, helps meet Regional Housing Needs Allocation (RHNA) figures and addresses homeless issues.
The City of Fullerton utilizes funds to address regional homeless challenges and cooperates with various North Orange County cities and nonprofits to operate Navigation Centers which provide shelter opportunities for the homeless.
Due to staff transitions, HCD requires the City to complete a new resolution to authorize the City Manager to certify receipt of funds as an authorized representative. The City has already agreed to receive SB 2 funds as identified in an April 2020 staff report and resolution.
Background
The City partners with several North Orange County cities to fund Navigation Centers. The project, known as the North Orange County Service Planning Area (SPA), provides a collaborative approach to comply with legal precedents set in 2018 case law. Nonprofit organizations manage these centers which serve homeless individuals throughout the region. The PLHA funds support the Buena Park Navigation Center and Placentia Navigation Center. Both facilities provide significant housing opportunities to our homeless community members and allow our Homeless Case Managers to accurately assist and provide shelter opportunities for them.
The Mercy House nonprofit manages the Buena Park center and PATH of Los Angeles operates the Placentia center. The Placentia center works with the County Public Defender’s Office to resolve court issues and address homeless related issues. With over 250 beds, the facilities provide a major resource and exemplify Fullerton’s participation in regional homeless mitigation programs.
For the current 2020 allocation year, or FY 2020-21, the City is entitled to $1,070,068 in PLHA funds which it will use to cover costs relating to the North SPA. Buena Park, which acts as Treasurer for the program, has an outstanding $634,825 invoice.
Fullerton has led the way in funding the North SPA program among participating agencies and has remained timely and responsive in supporting the project. The City’s Homeless Outreach Case Managers regularly coordinate with the Navigation Centers to shelter homeless individuals and reduce the number of individuals on the streets of Fullerton.
Due to the transition between City Managers, City Council needs to adopt a new resolution with signing authority given to the City Manager and Director of Community and Economic Development.
Attachments:
Attachment 1 – Draft Resolution No. 2022-XXX
Attachment 2 – 2020 Allocation Signed Request for Funding SB 2 Permanent Local Housing Allocation Funds
June 7, 2022 - Page 4