1 TO: City Council
FROM: Ryan Smoot, City Manager
PREPARED BY: Gary Y. Sugano, Assistant City Manager
MEETING DATE: January 17, 2023
SUBJECT: Resolution Approving and Authorizing Participation in the Permanent Local Housing Allocation (PLHA) Grant Program for Year 3
RECOMMENDATION
Adopt resolution approving and authorizing participation in the Los Angeles County Permanent Local Housing Allocation (PLHA) Program once it becomes available for the PLHA Program Year 3.
BACKGROUND
In 2017, the State of California approved Senate Bill (SB 2), which created the Building Homes and Jobs Act and the Permanent Local Housing Allocation (PLHA) Grant program. The PLHA program is the State’s first permanent source of funding for affordable housing, something cities have not had since the elimination of Redevelopment. Revenue is generated through recording fees on real estate transactions and, therefore, will vary from year to year depending on activity. The methodology for the allocation of funds is based on population, poverty and overcrowding.
The City Council previously approved the above action for two programs (prior 2 funding years) – Lomita Manor improvements and acquisition/rehabilitation for foreclosed or vacant units. The funding range approved was up to $140,481 annually.
The Year 3 allocation is estimated at $158,181. It is recommended that the funds be allocated towards Lomita Manor operations and capital improvements which will offset future costs associated with a possible RAD Repositioning.
LACDA has indicated that changes to program budgeting will be flexible if the City’s needs change in the future.
Item No. 7j
CITY OF LOMITA
CITY COUNCIL REPORT
2 FISCAL IMPACT
No impact. The PLHA funds are restricted funds provided by the California State Department of Housing and Community Development and will supplement the City’s resources to increase the supply of affordable housing. No matching funds are required.
OPTIONS
1. Approve Staff’s recommendation.
2. Provide alternative direction.
ATTACHMENTS
1. Resolution No. 2023-01
2. Proposed Activities Form
Reviewed by: Approved by:
_______________________ ______________________
Gary Y. Sugano Ryan Smoot
Assistant City Manager City Manager
RESOLUTION NO. 2023-01
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOMITA,
CALIFORNIA, APPROVING AND AUTHORIZING THE PARTICIPATION
IN THE LOS ANGELES URBAN COUNTY PERMANENT LOCAL
HOUSING ALLOCATION PROGRAM
WHEREAS, Senate Bill (SB 2) created the Building Homes and Jobs Act and the Permanent Local Housing Allocation (PLHA) Program, which is the first permanent source of funding for affordable housing; and
WHEREAS, revenue is generated through recording fees on real estate transactions and, therefore, will vary from year to year depending on activity; and WHEREAS, the PLHA funds, allocated by the County of Los Angeles, provides a stable funding source for local governments to address affordable housing stock shortages by increasing the supply of affordable housing, increasing assistance to affordable owner-occupied workforce housing, assisting persons experiencing or at risk of homelessness, facilitating housing affordability; and promoting projects and programs to meet the local government’s unmet share of regional housing needs allocation; and WHEREAS, the City Council of the City of Lomita desires to participate in the Los Angeles Urban County Permanent Local Housing Allocation (PLHA) Program for the period beginning in 2021 and identifies the program and allocation for Year 3 of the program; and
WHEREAS, the City Council of the City of Lomita authorizes County staff to administer all aspects of the PLHA on behalf of the City for these eligible activities:
Capital and/or operating cost at Lomita Manor - $158,181 WHEREAS, the city authorizes the execution of a contract with the County of Los Angeles in order to receive said PLHA funds.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LOMITA AS FOLLOWS:
Attachment No. 1
Resolution No. 2023-01
SECTION 1. The City Council of the City of Lomita hereby finds that the above recitals are true and correct and incorporated them herein by this reference.
SECTION 2. The City Council authorizes the City Manager, to execute any and all documents necessary for participation in the Los Angeles Urban County Permanent Local Housing Allocation (PLHA) Program for the period beginning in 2021.
SECTION 3. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon its approval.
PASSED, APPROVED and ADOPTED this 17th day of January 2023.
Barry Waite, Mayor
ATTEST:
_________________________________
Kathleen Horn Gregory, MMC
City Clerk
APPROVED AS TO FORM:
_________________________________
Trevor Rusin, City Attorney
PROPOSED ACTIVITY OR ACTIVITIES
FOR THE STATE PERMANENT LOCAL HOUSING ALLOCATION PROGRAM City Name: Lomita Date 1/17/23
Name and Description of the Eligible Activity or Activities the City would like to Implement Using PLHA funds:
Capital and/or operating cost at Lomita Manor $158,181
Budget (s) Proposed for Activity or Activities:
Capital and/or operating costs in the amount of $158,181 at Lomita Manor a HUD subsidized affordable housing development.
Pertinent Facts and Information about the Priority Need for this Activity or Activities in your City:
The City manages Lomita Manor, a 78-unit HUD subsidized affordable housing development constructed in 1985. There is needed to supplement the operating subsidy to maintain the facility as well as assist in upgrading deferred capital maintenance.
Submitted to LACDA By: Gary Sugano Date: 1/17/23
Title: Assistant City Manager
Attachment No. 2