24-86291 {{section.number}}1
CITY OF GLENDALE, CALIFORNIA
JOINT REPORT TO THE CITY COUNCIL AND HOUSING AUTHORITY
AGENDA ITEM
Report: Commitment of Funding to the Burbank-Glendale-Pasadena Regional Housing Trust (BGPRHT) for use as Matching Funds for the 2024 Local Housing Trust Fund Program
1. Council Motion Authorizing the Execution of a Funding Commitment Letter to the Burbank-Glendale-Pasadena Regional Housing Trust for use as Matching Funds for the 2024 Local Housing Trust Fund Program.
2. Housing Authority Motion Concurring with the Execution of a Funding Commitment Letter to the Burbank-Glendale-Pasadena Regional Housing Trust for use as Matching Funds for the 2024 Local Housing Trust Fund Program.
COUNCIL ACTION
Item Type: Action Item
Approved for August 20, 2024 calendar
EXECUTIVE SUMMARY
The State of California Department of Housing and Community Development (HCD) has issued a NOFA for approximately $54M in funds for their Local Housing Trust Fund (LHTF) Program. The LHTF Program provides matching grants for the development of affordable housing projects. Eligible use of program funds includes acquisition, construction, and permanent loan financing of an eligible housing project.
Under the program guidelines, 15% of the funding is reserved for new housing trust fund organizations. As such, the Burbank Glendale Pasadena Regional Housing Trust (BGPRHT) has indicated their willingness to prepare and recommend sponsoring a Glendale application for an award of funds. Based upon discussions, staff is recommending an application for up to $4M in matching funds.
For the BGPRHT to apply and to fund a Glendale project, the City of Glendale must identify and approve a commitment to provide funding that would then be matched by HCD. Based upon NOFA guidelines, that matching amount must come from funding sources not restricted for affordable housing by federal or state law. Accordingly, Community Development staff has identified $3.3M in previously designated Measure S funding for affordable housing and $700,000 in Affordable Housing Trust funding for the required match.
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RECOMMENDATION
That the Glendale City Council authorize execution of a Commitment Letter to the BGPRHT for use as Matching Funds for the 2024 Local Housing Trust Fund Program through HCD, and that the Housing Authority concur with the execution of the Commitment Letter.
ANALYSIS
HCD has issued a NOFA for approximately $54M in funds for their Local Housing Trust Fund (LHTF) Program. The LHTF Program provides matching grants for the development of affordable housing projects. Eligible use of program funds includes acquisition, construction, and permanent loan financing of an eligible housing project.
Under the program guidelines, 15% of the funding is reserved for new housing trust fund organizations. As such, BGPRHT has indicated their willingness to prepare and recommend sponsoring a Glendale application for an award of funds.
For the BGPRHT to apply and to fund a Glendale project, the City of Glendale must identify and approve a commitment to provide funding that would then be matched by HCD. Based upon NOFA guidelines, that matching amount must come from funding sources not restricted for affordable housing by federal or state law. Accordingly, Community Development staff has identified $3.3M in previously designated Measure S funding for affordable housing and $700,000 in Affordable Housing Trust funding.
If a matching funding award is made by HCD, CDD staff will them come back before the City Council and Housing Authority seeking adoption of a Resolution of Appropriation for the required match funding. The $4M in matching funds will then be distributed to the BGPRHT and combined with the LHTF awarded $4M, for a total of $8M for a Glendale sponsored affordable housing project. The $8M combined amount would then be loaned back to the City of Glendale for an eligible affordable housing project at no more than a 3% simple interest rate.
If no funds are awarded by HCD, then no match will be required by the City of Glendale and the commitment of funding to the BGPRHT is voided.
While not specifically identified at this time, an eventual Glendale project would be an affordable, new construction, rental housing project with:
•A minimum of 30 percent of program funds and matching funds, after deducting administrative expenses, shall be expended on assistance to Extremely Low- Income Households, no more than 30 percent of Area Median Income (AMI). •The remaining program funds and matching funds shall be expended on assistance to Lower-Income Households, no more than 80 percent AMI. 24-86291 3{{section.number}}1
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•The project units will have an average Area Median Income of 60 percent or less.
STAKEHOLDERS/OUTREACH
No stakeholder outreach was made or is necessary for this report.
FISCAL IMPACT
Authorization to execute a Commitment Letter will tentatively reserve $4M towards a matching grant amount that will be remitted to, and distributed by, the BGPRHT.
Such $4M will only be distributed upon the notification of a successful application by HCD and an award of funds from HCD to BGPRHT. Such notification is not expected to be awarded until December 2024 or January 2025.
In the event that a matching award is granted, staff will then return to the City Council and Housing Authority with a Resolution of Appropriation allowing the transfer of the $4M City of Glendale match funding to the BGPRHT.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
Not applicable.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: The City Council and Housing Authority take no action on the execution of the Commitment Letter to the BGPRHT for LHTF Matching Funds.
ADMINISTRATIVE ACTION
Submitted by:
Bradley Calvert, Director of Community Development
Prepared by:
Peter Zovak, Assistant Director of Community Development Mike Fortney, Deputy Director
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
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1. BGPRHT Commitment of Funding Letter