PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.E
Meeting Date: May 21, 2024
TITLE:
Authorization of a Grant Application to the California Department of Housing and Community Development (HCD) for Funding under the Competitive Permanent Local Housing Allocation (CPLHA)
RECOMMENDATION:
Adopt a Resolution to (1) authorize the City to submit an application to the California Department of Housing and Community Development (HCD) for $5,000,000 in funding under the Competitive Permanent Local Housing Allocation (CPLHA) and, if selected, authorize the Community Development Director to execute a Standard Agreement, any amendments thereto, and any related documents necessary to participate in the CPLHA Program.
DISCUSSION:
People’s Self-Help Housing Corporation (PSHHC), an affordable housing developer, has requested that the City apply for Competitive Permanent Local Housing Allocation (CPLHA) funds to assist with the rehabilitation work for their 12-unit multifamily affordable rental development, Sea Haven Apartments, located at 211 Addie Street.
CLPHA is a grant funding program under the State Department of Housing and Community Development (HCD) available to non-entitlement local governments to assist in various categories including rehabilitation of multifamily rental housing. Eligible activities for the grant program include substantial rehabilitation of multifamily housing projects where households are at or below 60% of Area Medium Income ($67,860 for a family of 4, per 2023 HCD data for San Luis Obispo County). The Notice of Funding Availability (NOFA) for the CPLHA Program was released by HCD on March 6, 2024 with applications due by June 6, 2024. HCD staff has confirmed that the City is an eligible applicant for funding under this program. The minimum application amount set by HCD is $500,000 and the maximum application amount is $5 million.
Should the Council adopt the Resolution authorizing the grant application for up to $5 million, PSHHC would prepare the grant funding application for submittal by June 6, 2024.
HCD CLPHA funding awards are based on a competitive program. If the application is awarded, the anticipated timeline for funding decisions would be August 2024.
Conclusion and Recommendation
Staff recommendation is to adopt a Resolution (Attachment 1) to (1) authorize the City to submit an application to the California Department of Housing and Community Development (HCD) for up to $5 million in funding under the Competitive Permanent Local Housing Allocation (CPLHA) and, if selected, authorize the Community Development Director to execute a Standard Agreement, any amendments thereto, and any related documents necessary to participate in the CPLHA program.
Council Agenda 5-21-2024 9.E-1
FISCAL IMPACT:
There is no immediate fiscal impact of approving this Resolution. The CLPHA funding available from HCD does not require a City financial match or in-kind support. In the event that the grant is awarded, staff will come back to the Council to accept the grant and appropriate the grant revenues and corresponding expenditures in the Housing In Lieu Fee Fund for a net fiscal impact of $0.
ATTACHMENTS:
1. Resolution
Prepared by:
Cindy Jacinth, Planning Manager
Submitted by: Scot Graham, Community Development Director City Manager Approval:
Council Agenda 5-21-2024 9.E-2
RESOLUTION NO. R-2024-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA TO (1) AUTHORIZE THE CITY TO SUBMIT AN APPLICATION TO THE
CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD) FOR FUNDING UNDER THE COMPETITIVE PERMANENT LOCAL HOUSING
ALLOCATION (CPLHA) AND, IF SELECTED, AUTHORIZE THE COMMUNITY
DEVELOPMENT DIRECTOR TO EXECUTE A STANDARD AGREEMENT, ANY
AMENDMENTS THERETO, AND ANY RELATED DOCUMENTS NECESSARY TO
PARTICIPATE IN THE CPLHA PROGRAM
WHEREAS, the State Department of Housing and Community Development (HCD or Department) is authorized to provide up to $12.5 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)); and WHEREAS, HCD released a Notice of Funding Availability (NOFA) on March 6, 2024 for the Competitive Permanent Local Housing Allocation (CPLHA) Program with funding applications due June 6, 2024; and
WHEREAS, the City of Pismo Beach is an eligible non entitlement local government who has applied for program funds to administer an eligible activity; for Seahaven Apartments and the amount of CPLHA funds not to exceed $5,000,000; and WHEREAS, HCD 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 the City Council of the City of Pismo Beach hereby approves and resolves as follows:
1. If the City 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 the City may have with the Department.
2. The City hereby agrees to use the PLHA funds for the eligible activity for which the City 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 Council Agenda 5-21-2024 9.E-3
Attachment 1
in compliance with the Standard Agreement and other contracts between the City and the Department.
3. Pursuant to the City’s certification in this resolution, the PLHA funds will be expended only for the eligible Activity for which the City has submitted an application, and consistent with all program requirements.
4. The City certifies that, if funds are awarded for the development of new multifamily housing at or below 60 percent of area medium income (AMI) or substantial rehabilitation of multifamily rental housing at or below 60 percent of AMI, the City 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. The City certifies that, if funds are awarded for the development of an Affordable Rental Housing Development, the City 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. The City 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. The Community Development Director is 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 the City, as the Department may deem appropriate.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 21st day of May 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Council Agenda 5-21-2024 9.E-4
Attachment 1
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Pismo Beach, California, on _______________________. ________________________
Erica Inderlied, City Clerk
CERTIFICATE AND SIGNATURE OF THE ATTESTING OFFICER
The undersigned, Officer of the City of Pismo Beach does hereby attest and certify that the foregoing Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of the City Council of the City of Pismo Beach 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.
________________________
Erica Inderlied, City Clerk
Council Agenda 5-21-2024 9.E-5
Attachment 1