Cities Index.
item 16 Adoption of a Resolution authorizing an application for, and receipt of, SB2 Permanent Local Housing Allocation Grant Program funds. (Grant amount: $2,553,236) (Action Item)

Garden Grove City Council
May 14, 2024

Document
item 16 Adoption of a Resolution authorizing an application for, and receipt of, SB2 Permanent Local Housing Allocation Grant Program funds. (Grant amount: $2,553,236) (Action Item)
Meeting
May 14, 2024
Body
Garden Grove City Council
Original file
224 KB
Text extracted from the city's file for reading and search. Open the original on agendasuite.org. That file is the official record.

PLHA Page 1 302(c)(4) Plan
§302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government’s Housing Element.

The City of Garden Grove's 2021-2029 Housing Element includes 18 Programs, six (6) of which are consistent with the activities contained herein. The applicable Programs are: Program 3: Multi-Family Acquisition and Rehabilitation, Program 4: Affordable Housing Construction; Program 6: Home Ownership Assistance, Program 7: Preservation of Affordable Rental Housing, Program 12: Mixed Use Development, and Program 13: Special Needs Housing. All PLHA Grant funds received will be used for purposes that further the priority goals identified in the City's State-approved Housing Element.

Activities Detail (Activities Detail (Must make a selection on Formula Allocation Application worksheet under Eligible Activities, §301)) §301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-,very low-, low-, or moderate-income households, including necessary Operating subsidies. §302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for each proposed Affordable Rental Housing Activity.

The City of Garden Grove will utilize PLHA grant funds to develop multi-family rental housing targeted to households earning incomes at or below 80% of Area Median Income.

Complete the table below for each proposed Affordable Rental Housing Activity to be funded with 2020-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting).

Funding Allocation Year 2020 2021 2022 2023
TOTAL
§302(c)(4)(E)(ii) Unmet share of the RHNA at the
AMI Level
Note: complete for years 2020, 2021, 2022
only
§302(c)(4) Plan Rev. 03/18/24
§302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.

City of Garden Grove plans to amend their five year plan as follows:

1. Remove funds from Activity 4 and redistribute to two activities: Activity 1 and Activity 9.

2. Adjust percentage of funds allocated to Activity 1 and 9.

3. CY 2020 Amendment - Shift the remaining funds from Activity 4 to Activity 9.

4. Increase income level served for Activity 9 to 120%.

5. Increase income level served for Activity 1 to 80%.
§302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income (AMI).

The City of Garden Grove plans to use Activity 1 funds for households with incomes at or below 80% of Area Median Income. §302(c)(4)(E)(i) Percentage of Funds Allocated
for the Proposed Affordable Rental Housing
Activity
75%
75% 8
5% 85%
2801 2801 2801 2801
§302(c)(4)(E)(ii) Area Median Income Level
Served 80% 80% 80% 80%
112
§302(c)(4)(E)(iv) Period of Affordability for the
Proposed Affordable Rental Housing Activity (55
years required for rental housing projects)
55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 11204
§302(c)(4)(E)(ii) Projected Number of
Households Served 28 28 28 28
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.

The City of Garden Grove released a Request for Proposals for affordable and permanent supportive housing developers in December 2023 . This RFP process identified 3 developers that the City is working with to identify specific sites for affordable housing. The City anticipates identifying a project site and negotiating with these developers over the next year to identify a PLHA eligible project. 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years
The City will use PLHA funds for a first time homebuyer program that provides downpayment assistance loans of up to $50,000 to households earning at or below 120% of Area Median Income. This is a continuation of a program using CalHome Reuse funds for nine loans over the past two years. Since our CalHome Reuse funds are spent, the PLHA funds allows for the continuation of this assistance program.

Complete the table below for each proposed Activity to be funded with 2020-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting).

Funding Allocation Year 2020 2021 2022 2023
§301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance. §302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for the proposed Activity. Enter Percentage of Funds Allocated for Affordable Owner- occupied Workforce Housing (AOWH) 15%
§302(c)(4)(E)(i) Percentage of Funds Allocated
for the Proposed Activity 20% 20% 1
0% 10%
Type of Homeowner Assistance Down Payment
Assistance
Down Payment
Assistance
Down Payment
Assistance
Home Buyer
Assistance
TOTAL
§302(c)(4)(E)(ii) Unmet share of the RHNA at
AMI Level
Note: complete for years 2020, 2021, 2022
only
3211 3211 3211 3211
§302(c)(4)(E)(ii) Area Median Income Level
Served 120% 120% 120% 120%
19 §302(c)(4)(E)(iv) Period of Affordability for the
Proposed Activity N/A N/A N/A N/A
12844
§302(c)(4)(E)(ii) Projected Number of
Households Served 6 9 2 2
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.

The City currently administers an HCD-approved first time homebuyer program with loan servicing, reuse account, and homebuyer education. The City is ready to begin administering the program as soon as funds are approved. The City received approval from HCD for no period of affordability on the proposed project. See attached HCD approval.

File Name: Plan Adoption Reso §302(c)(4)(D) Evidence that the Plan was authorized and adopted by resolution by the Local jurisdiction and that the public had an adequate opportunity to review and comment on its content. Uploaded to HCD? Yes PLHA Page 2 302(c)(4) Plan

← All documents from this meeting