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Rules & Legislation Committee
December 12, 2024

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December 12, 2024
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APPROVED AS TO FORM AND LEGALITY

_______________________________________
CITY ATTORNEY’S OFFICE

OAKLAND CITY COUNCIL

RESOLUTION NO. ______________ C.M.S.

RESOLUTION:

(1) ACCEPTING, APPROPRIATING, AND AUTHORIZING

AGREEMENTS FOR THE RECEIPT OF PERMANENT LOCAL

HOUSING ALLOCATION (PLHA) FUNDING FROM THE COUNTY OF
ALAMEDA IN AN AMOUNT ESTIMATED TO BE $21,023,384 FOR
FISCAL YEARS 2023-24 THROUGH 2028-29;

(2) ALLOCATING ALL PLHA FUNDS RECEIVED FROM THE COUNTY

OF ALAMEDA TO OPERATING SUBSIDIES FOR THE RAPID
RESPONSE HOMELESS HOUSING PROGRAM (R2H2);

(3) AUTHORIZING THE CITY ADMINISTRATOR TO LOAN OR GRANT

SAID PLHA FUNDS TO AFFORD ABLE HOUSING OR SUPPORTIVE
HOUSING DEVELOPERS CHOSEN THROUGH THE R2H2 PROGRAM,

WITHOUT RETURNING TO COUNCIL, IN ACCORDANCE WITH
RESOLUTION 89977; AND

(4) MAKING APPROPRIATE CALIFORNIA ENVIRONMENTAL

QUALITY ACT (CEQA) FINDINGS

WHEREAS, the Building Homes and Jobs Act of 2018 (SB 2) established an ongoing source of affordable housing funding for local governments known as the Permanent Local Housing Allocation (PLHA); and

WHEREAS, the City of Oakland (City) is an entitlement jurisdiction that receives an annual grant from the PLHA program; and

WHEREAS, the City and the County of Alameda (County) previously entered into an agreement for the County to serve as the City’s grant administrator, as authorized on July 14, 2020 with the adoption of Resolution No. 88211 C.M.S
.; and

Jordan Flanders (Dec 30, 2024 14:44 PST)
Jordan Flanders
2 WHEREAS, under the terms of this agreement, the County draws funds from the State of California for the City’s PLHA program and then provides these funds to projects selected by the City; and

WHEREAS, the City identified the provision of Capitalized Operating Subsidy Reserves (COSR) as the intended use of the City’s PLHA allocation in the 5- year PLHA spending plan; and

WHEREAS, COSR from the PLHA is one of the only City -controlled sources of operating funding, which is necessary to subsidize the ongoing operating cost of Permanent Supportive Housing for the homeless; and

WHEREAS, the 2024 Point in Time Count found 5,485 unhoused residents of Oakland; and

WHEREAS, there is substantial need for the development of Permanent Supportive Housing in the City of Oakland to meet the needs of these homeless residents; and

WHEREAS, on September 17, 2024 the City Council authorized funding programs for multifamily new construction affordable housing via the New Construction Notice of Funding Availability (NOFA) process and for innovative homeless housing solutions via the Rapid Response Homeless Housing (R2H2) Program pursuant to Resolution No. 90419; and

WHEREAS, Resolution No. 88211 did not contain the appropriation language necessary to transfer funds from Oakland’s PLHA allocation to specific affordable housing projects; and

WHEREAS, the City Council seeks to continue to use the City’s PLHA allocation to support COSR in units funded by the New Construction NOFA and R2H2 programs; and

WHEREAS, this action is exempt from the California Environmental Quality Act (“CEQA”) under the following, each as a separate and independent basis, including but not limited to, the following: CEQA Guidelines: Section 15378 (regulatory actions), Section 15061(b)(3) (no significant environmental impact), and Section 15183 (actions consistent with the general plan and zoning); now, therefore be it

RESOLVED: That the City Administrator is authorized to accept, appropriate, and enter into agreements for the receipt of P LHA funding from the County of Alameda in an estimated amount of $21,023,384 for fiscal years 2023-24 through 2028-29; and be it

FURTHER RESOLVED: That the City Administrator is authorized to accept and appropriate any additional PLHA funds that become available from the County of Alameda through fiscal year 2028-29 for the purpose of assisting persons experiencing or at risk of experiencing homelessness; and be it

3 FURTHER RESOLVED: That the City’s PLHA allocation is allocated for the purpose of operating subsidies for the Rapid Response Homeless Housing program , Homekey program and the New Construction Notice of Funding Availability program, and be it

FURTHER RESOLVED: That the City Administrator is authorized to enter into grants and/or loans to provide operating subsidy to projects selected via the City’s R2H2 program , Homekey program and/or the New Construction NOFA program, and be it

FURTHER RESOLVED: That the City Administrator is also authorized to use the PLHA funds allocated to the R2H2 program and/or the New Construction NOFA t o provide operating subsidy to a project selected through other Notice of Funding Availability awards for affordable housing, transitional housing, supportive housing, or interim shelter, provided that the PLHA funds be restricted to units serving people experiencing or at risk of experiencing homelessness, and be it

FURTHER RESOLVED: That any loan shall be for a maximum term of 55 years, with an interest rate to be determined by the City Adm inistrator in their discretion, with repayment to the City from surplus cash flow from the project and other available funds during the term of the loan, with the balance due at the end of the term, or on such other repayment terms and schedule as the City Administrator determines are in the best interests of the City and the project; and be it

FURTHER RESOLVED: That as a condition of each loan or grant, the City will require that appropriate restrictions on project occupancy, rents and operations be recorded against project land and/or improvements; and be it

FURTHER RESOLVED: That each loan or grant shall be secured by a deed of trust on the project land and/or improvements; and be it

FURTHER RESOLVED: That the making of each loan or grant shall be contingent on and subject to such other appropriate terms and conditions as the City Administrator may establish; and be it

FURTHER RESOLVED: That the City Council hereby authorizes the City Administrator to make specific allocations of the loan and/or grant funds approved under this Resolution among the projects without returning to Council; and be it

FURTHER RESOLVED: That the City Council hereby determines that the actions authorized by this Resolution are not subject to CEQA because this Resolution is not committing the City to any specific projects, and the City Administrator will be making the appropriate CEQA determinations before specific projects are authorized for funding; and be it

FURTHER RESOLVED: That the City Administrator is hereby authorized to conduct negotiations, execute and submit all documents, administer the loans or grants, extend or modify the repayment terms and take any other action with respect to the City’s PLHA allocation consistent with this Resolution and its basic purposes; and be it

4 FURTHER RESOLVED: That said agreements shall be reviewed and approved by the City Attorney's Office for form and legality prior to their execution by the City, and copies will be placed on file with the City Clerk.

IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:

AYES – BROWN, FIFE, GALLO, HOUSTON, JENKINS, RAMACHANDRAN, AND UNGER
NOES –
ABSENT –
ABSTENTION –

ATTEST:________________________________

ASHA REED
City Clerk and Clerk of the Council of
the
City of Oakland, California

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