City Council Agenda Report
February 20, 2024
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: John P. Ramirez, Director of Community Development
Amanda Moreno, Senior Management Analyst
SUBJECT: PUBLIC HEARING - RESOLUTION NO. 24-11 – APPLICATION FOR GRANT
FUNDING FOR A PERMANENT LOCAL HOUSING ALLOCATION PROGRAM Background:
In 2017, Governor Brown signed a 15-bill housing package aimed at addressing the State’s housing shortage and high housing costs. This included Senate Bill 2, known as the Building Homes and Jobs Act (Act) that became effective in January 2018, establishing a $75 recording fee on real estate documents to increase the supply of affordable housing. The Act establishes the Permanent Local Housing Allocation (PLHA) program, administered by the California Department of Housing and Community Development (HCD). The PLHA provides a permanent source of funding to cities and counties to help meet the unmet need for affordable housing and increase the supply of affordable housing units.
In December 2023, the HCD announced the release of the 2023 PLHA Notice of Funding Availability (NOFA) for approximately $296 million. Funding is provided through formula grants to entitlement jurisdictions based on the formula prescribed under federal law for the Community Development Block Grant (CDBG) program over a five-year funding period. The City is an entitlement jurisdiction, and is eligible to receive an estimated $3,556,572 over the five-year funding period. The annual PLHA amounts are subject to change as funding is generated through a fee on real estate transactions, which may fluctuate from year to year.
Five-Year PLHA Plan
To access the funds, the City must submit a five-year plan (plan) that will describe how funds will be allocated for the selected eligible activity; additional threshold requirements must be met for first-time applicants as detailed in the application (Attachment No. 2). Staff reviewed the list of eligible activities and propose the use of grant funds for:
City Council February 20, 2024
Resolution No. 24-11 – Application for PLHA Program Page No. 2 7 8
9 “§301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent pof Area Median Income (AMI), or 150 percent of AMI in High-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days.”
Specifically, the City will contract with a qualified consultant through the Request for Proposals process to develop a Permit-Ready ADU program. The consultant activities may include, but are not limited to: compiling local data/inventory, conducting outreach to confirm ADU needs, develop policies, prepare pre-approved concept designs and full build designs, and prepare ADU guidelines. The intended use of PLHA funds is consistent with the City’s Certified Housing Element, Program 1.4 Affordable Housing Development Assistance that allows the City to provide incentives to residents to encourage the development of ADUs to facilitate housing production and affordability goals set forth in the 2013-2021 Regional Housing Needs Allocation.
PLHA applications must be submitted by February 29, 2024.
Fiscal Impact:
Staff expects the City will receive a total of $3,556,572 over the five-year funding period and is not required to provide any matching funds. There is no impact to the general fund.
Citizens Advised:
The draft PLHA application was posted on the City’s website from February 7, 2024 to February 20, 2024 for public review. Notice of Public Hearing was published in The Norwalk Patriot and posted at the City’s three designated posting places and City’s website on February 9, 2024.
Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan Goal 2: Work in Partnership with our Community to Achieve Safe and Livable Neighborhoods.
Recommended Action:
Staff recommends City Council adopt Resolution No. 24-11, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF NORWALK APPROVING THE APPLICATION FOR GRANT
FUNDING FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT’S PERMANENT LOCAL HOUSING ALLOCATION PROGRAM, AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL RELATED DOCUMENTS.
Attachments:
1. Resolution No. 24-11
2. 2023 PLHA Formula Allocation Application