Agenda Item No. 8
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: May 28, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director Janet Reese, Associate Planner
SUBJECT: Resolution to Authorize Potential Program/Project for Inclusion in the 2023 Non-Entitlement Competitive Component of the Permanent Local Housing Allocation Application
RECOMMENDATION
Adopt a Resolution authorizing the application for the Non-Entitlement Competitive Component of the Permanent Local Housing Allocation (PHLA) Program for operating costs for navigation centers.
BACKGROUND
In 2017, the Building Homes and Jobs Act (SB2) established a $75 recording fee statewide on real estate documents with the intent to provide a permanent, on-going source of funding to local governments for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities. The program, administered by the State Department of Housing and Community Development (HCD), known as the Permanent Local Housing Allocation (PLHA) Program, has a formula component and competitive component. The competitive component prioritizes assistance to persons experiencing or at risk of homelessness and investments that increase the supply of housing to households with incomes of 60 percent or less of Area Median Income (AMI).
On March 6, 2024, HCD released the 2023 Notice of Funding Availability (NOFA) for funds collected in 2022, announcing the availability of approximately $12.5 million. Eligible uses of the competitive component of PLHA funds include the following:
Programs that provide assistance to persons who are experiencing or at risk of homelessness, including operating costs for navigation centers, rapid rehousing, rental assistance, or supportive and case management services
Development of a navigation center
Development or rehabilitation of transitional rental housing Development or rehabilitation of multifamily housing that will be for households with incomes at or below 60 percent of area median income (minimum construction cost of $40,000 per unit)
Eligible applicants are non-entitlement local governments who do not receive funds directly from the U.S. Department of Housing and Urban Development (HUD), such as the City. Local governments may partner with an organization as a co-applicant. The maximum application amount, including administrative costs, for a program application is $1,000,000, and $5,000,000 Staff Report: Competitive Permanent Local Housing Allocation Funding Application Page 2 May 28, 2024
for a project. Administrative costs to implement the proposed program or project may total up to 5 percent of the grant amount.
In response to the NOFA announcement, 5Cities Homeless Coalition (5CHC) is requesting to partner with the City to apply for $1,000,000 in PLHA program funds to be utilized to assist with services that 5CHC offers to individuals experiencing or at risk of homelessness (see Attachment 2). Since 2013, 5CHC has provided rapid rehousing, subsistence/rental payment assistance, supportive and case management services. In December 2022, 5CHC opened its first housing navigation center called Cabins for Change. Navigation centers like Cabins for Change provide housing navigation case management, supportive services, shelter, and assistance in navigating basic life skills to 20-25 individuals who are housed in the 20 on-site cabins. A second navigation center called Balay Ko on Barca will open shortly with 30 cabins and will provide the same services as Cabins for Change. While 5CHC's request indicates the funding would assist for approximately 4 years, the term of HCD’s contract will be 10 years.
Partnering with 5CHC to apply for PLHA funds is consistent with the Housing and Homelessness Major City Goal. While 5CHC will prepare most of the required documents for the application, the Council must authorize the submission of the application and execution of related agreements or documents. Therefore, staff recommends Council adopt the resolution prepared by the State (see Attachment 1).
FISCAL IMPACT
If the application is successfully awarded, the City would retain 5 percent, or $50,000, in funds for the City’s administration of PLHA activities over the 10-year term of the agreement with HCD.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt the Resolution authorizing the application for the Non-Entitlement Competitive Component of the Permanent Local Housing Allocation Program for operating costs for navigation centers; or
2. Do not adopt Resolution authorizing application; or
3. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Resolution
2. PLHA Request from 5Cities Homeless Coalition
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AUTHORIZING RESOLUTION OF ( )
AUTHORIZING THE APPLICATION FOR THE PERMANENT LOCAL HOUSING
ALLOCATION PROGRAM NON-ENTITLEMENT LOCAL GOVERNMENT
COMPETITIVE COMPONENT
[ ] of the
[ _______________________________________________________ ] of [ ________________________________________________________________ ] (“Applicant”) hereby consents to, adopts and ratifies the following resolution:
WHEREAS, the Department is authorized to provide up to $ million under the SB 2 Permanent Local Housing Allocation Program Competitive 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 (SB 2)).
WHEREAS the State of California (the “State”), Department of Housing and Community Development (“Department”) issued a Notice of Funding Availability (“NOFA”) dated under the Permanent Local Housing Allocation (PLHA) Program Competitive Component;
WHEREAS [ ] is an eligible nonentitlement Local government who has applied for program funds to administer an eligible activity; for [________________________________] and the amount of CPLHA funds not to exceed [_______________________].
WHEREAS the Department may award, subject to selection criteria set forth in PLHA guidelines section 403, funding allocations for applicants recommended for funding, subject to the terms and conditions of the Guidelines, NOFA, Program requirements, the Standard Agreement and other contracts between the Department and PLHA competitive grant recipients;
NOW THEREFORE BE IT RESOLVED THAT:
1. If Applicant is awarded a grant of PLHA funds from the Department pursuant to the above referenced PLHA Competitive Component 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 Applicant may have with the Department.
2. Applicant hereby agrees to use the PLHA funds for the eligible activity for which the Applicant has submitted an application, as set forth in Section 401 of the Guidelines, and as awarded and approved by the Department in accordance with all Program requirements, Guidelines, other rules and laws, as well as in a manner consistent and in compliance with the Standard Agreement and other contracts between the Applicant and the Department.
3. Pursuant to Applicant’s certification in this resolution, the PLHA funds will be expended only for the eligible Activity for which the Applicant has submitted an application, and consistent with all program requirements.
4. Applicant certifies that, if funds are awarded for the development of new multifamily housing at or below 60 AMI or substantial rehabilitation of multifamily rental housing at or below 60 percent of AMI, Applicant shall comply with Uniform Multifamily Regulations Subchapter 19, Title 25, Division 1, Chapter 7, commencing with Section 8300 and the Multifamily Housing Program Guidelines commencing with Section 7300,;
5. Applicant certifies that, if funds are awarded 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 the Department-approved underwriting of the Project for a term of at least 55 years.
6. Applicant shall be subject to the terms and conditions as specified in the Standard Agreement, the PLHA Program Guidelines and any other applicable SB 2 Guidelines published by the Department.
7. If applicable, Applicant proposes allocation of funds for the awarded activity to ( ). Applicant certifies that the selection process
that resulted in the allocation to ( _____________________________) complied with all conflict of interest laws and prohibitions and was accessible to the public throughout the selection process and by request via the Public Records Act.
8. [ ] is/are authorized to execute the PLHA
Competitive Component Program Application, the PLHA Competitive Component Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the PLHA Competitive Component grant awarded to Applicant, as the Department may deem appropriate.
PASSED AND ADOPTED at a regular meeting of the [ ]
this
day of , by the following vote:
AYES: ABSTENTIONS: NOES: ABSENT:
APPROVE:
Signature of Approving Officer
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INSTRUCTION: The attesting officer cannot be the person identified in the resolution as the authorized signor
CERTIFICATE AND SIGNATURE OF THE ATTESTING OFFICER
The undersigned, Officer of [ ] does hereby attest
and certify that the [ ______________ ] Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of the [ ] which
was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof.
ATTEST:
Signature of Attesting Officer
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