Agenda Item No: 1.g
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: November 5, 2024
Submitted by: Lesley Whittaker
From: Development Services
Subject:
Consideration of a Resolution Authorizing Application to, and Participation in the Prohousing Designation Program with the State Department of Housing and Community Development (HCD); and Consideration of a Resolution Authorizing Application for, and Receipt of Prohousing Incentive Program Funds.
Financial Impact:
Fiscal Impact:
There is no immediate financial impact; however, the Prohousing Designation qualifies the City to apply for State funding. On August 15, 2024, HCD released the NOFA for the third round of the Prohousing Incentive Program (PIP Round 3). PIP Round 3 makes approximately $8 million available for jurisdictions with a Prohousing Designation.
Summary:
The City of Placentia is in the process of applying to the HCD to obtain a Prohousing designation. The two attached Resolutions will authorize application to and participation in the Prohousing Designation Program (PDP) and will make Placentia eligible to apply for the Prohousing Incentive Program grant funds. The Notice of Funding Available (NOFA), released August 15, 2024, makes approximately $8 million available to jurisdictions with a Prohousing Designation.
Recommendation:
Recommended Action: It is recommended that the City Council:
1. Adopt Resolution No. R-2024-70, a Resolution of the City Council of the City of Placentia, California, authorizing application to and participation in the Prohousing Designation Program.
2. Adopt Resolution No. R-2024-71, a Resolution of the City Council of the City of Placentia, California, authorizing application for, and receipt of, Prohousing Incentive Program funds.
Strategic Plan Statement:
This item is consistent with the City Council approved 5 -Year Strategic Goal to achieve the following:
Implementation of Housing Element Strategies, Objective Number 3.10. This agenda item will specifically create opportunities for the development of more housing in the city, including a 196
mix of housing at various price points. Also, this item will serve to enhance affordable housing production efforts in general as it will create potential funding mechanisms and other incentives to attract and promote affordable housing in the community.
Discussion:
The State has determined that increasing the availability of housing is critical to bettering the quality of life of all Californians. The 2019-2020 Budget Act provided a spectrum of support, incentives, and accountability measures to meet California's housing goals, and provided for the establishment of the Prohousing Designation Program. The intent of this State program is to encourage jurisdictions to enact regulations, adopt policies, and establish local programs that go beyond current state laws and conventional standards and will accelerate the production of housing, both market rate and affordable at all density levels.
In return for adopting such pro -housing regulations, policies, and programs, local governments can receive an official designation and receive an advantage such as priority processing or funding points when applying for various funding programs. Current eligible funding programs that prioritize those with Prohousing designation include Affordable Housing & Sustainable Communities (AHSC), Infill Infrastructure Grant (IIG), and Transformative Climate Communities (TCC). However, the State is actively looking to add additional programs, particularly those that are only open to those with a Prohousing designation. A successful Prohousing designation could potentially lead to receipt of Prohousing Incentive Program funds. The amount of State funds under this program for 2024 is approximately $8 million.
The attached Resolution (PC -2024-70) is a required component of the Prohousing Designation Program application. Upon the City Council's approval of the Resolution, City Staff will submit the entire Prohousing Designation Program application to HCD for review and approval.
The second attached Resolution (PC -2024-71) is authorizing application for, and receipt of, Prohousing Incentive (PIP) Program funds. Receipt of these funds is contingent upon receiving the Prohousing Designation from HCD. Adoption of this Resolution would make Placentia eligible to apply for the PIP grant funds in a total amount not to exceed $1,000,000.
Said funds may be used for the development, acquisition, rehabilitation, and preservation of multifamily, residential live -work, rental housing that is affordable to low- and moderate - income households, including necessary operating subsidies. The funds could be utilized to help finance an affordable housing development in Placentia, or for assisting those at risk of homelessness, including funding for navigation centers and emergency shelters, among other eligible expenses.
Fiscal Impact Summary:
Approval of a Prohousing Designation and access to the resulting PIP grant funds could result in Placentia receiving up to $1,000,000 in grant funds to generate affordable housing.
Attachments
1.Prohousing Designation Resolution - 2024-70.docx
2.PIP Resolution 2024-71.docx
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RESOLUTION NO. R-2024-70
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLACENTIA,
AUTHORIZING APPLICATION TO AND PARTICIPATION IN THE PROHOUSING
DESIGNATION PROGRAM
WHEREAS, Government Code section 65589.9 established the Prohousing Designation Program ("Program"), which creates incentives for jurisdictions that are compliant with state housing element requirements and that have enacted Prohousing local policies; and
WHEREAS, such jurisdictions will be designated Prohousing, and, as such, will receive additional points or other preference during the scoring of their competitive applications for specified housing and infrastructure funding; and WHEREAS, the California Department of Housing and Community Development ("Department") has adopted regulations (Cal. Code Regs., tit. 25, § 6600 et seq.) to implement the Program ("Program Regulations"), as authorized by Government Code section 65589.9, subdivision (d); and
WHEREAS, the CITY OF PLACENTIA ("Applicant") desires to submit an Application for a Prohousing Designation ("Application").
THEREFORE, IT IS RESOLVED THAT:
1. Applicant is hereby authorized and directed to submit an Application to the Department.
2. Applicant acknowledges and confirms that it is currently in compliance with applicable state housing law.
3. Applicant acknowledges and confirms that it will continue to comply with applicable housing laws and to refrain from enacting laws, developing policies, or taking other local governmental actions that may or do inhibit or constrain housing production.
Examples of such local laws, policies, and actions include moratoriums on development; local voter approval requirements related to housing production; downzoning; and unduly restrictive or onerous zoning regulations, development standards, or permit procedures. Applicant further acknowledges and confirms that the Prohousing Policies in its Application comply with its duty to Affirmatively Further Fair Housing pursuant to Government Code sections 8899.50 and 65583.
Applicant further acknowledges and confirms that its general plan is in alignment with an adopted sustainable communities strategy pursuant to Public Resources Code sections 21155- 21155.4. Applicant further acknowledges and confirms that its policies for the treatment of homeless encampments on public property comply 198
do and will continue to comply with the Constitution and that it has enacted best practices in its jurisdiction that are consistent with the United States Interagency Council on Homelessness' "7 Principles for Addressing Encampments" (June 17, 2022, update).
4. If the Application is approved, Applicant is hereby authorized and directed to enter into, execute, and deliver all documents required or deemed necessary or appropriate to participate in the Program, and all amendments thereto (the "Program Documents").
5. Applicant acknowledges and agrees that it shall be subject to the Application; the terms and conditions specified in the Program Documents; the Program Regulations; and any and all other applicable law.
6. The CITY ADMINISTRATOR is authorized to execute and deliver the Application and the Program Documents on behalf of the Applicant for participation in the Program.
PASSED, ADOPTED and APPROVED this 5th day of November 2024.
Jeremy Yamaguchi, Mayor
ATTEST:
Robert S. McKinnell, City Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Placentia, held on the 5th day of November 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmembers:
Councilmembers:
Councilmembers:
Councilmembers:
Robert S. McKinnell, City Clerk
199
APPROVED AS TO FORM:
Christian Bettenhausen, City Attorney
200
RESOLUTION NO. R-2024-71
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLACENTIA,
CALIFORNIA AUTHORIZING APPLICATION FOR, AND RECEIPT OF,
PROHOUSING INCENTIVE PROGRAM FUNDS
WHEREAS, pursuant to Health and Safety Code 50470 et. Seq, the Department of Housing and Community Development ("Department") is authorized to issue Guidelines as part of an incentive program (hereinafter referred to by the Department as the Prohousing Incentive Program or "PIP"); and
WHEREAS, the City Council of the City of Placentia desires to submit a PIP grant application package ("Application"), on the forms provided by the Department, for approval of grant funding for eligible activities toward planning & implementation activities related to housing and community development as a result of meeting eligibility criteria including but not limited to Prohousing Designation; and WHEREAS, the Department has issued Guidelines and Application on August 15 2024 in the amount of $8,000,000 for PIP;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA ("APPLICANT") RESOLVES AS FOLLOWS:
SECTION 1. The City Administrator is hereby authorized and directed to submit an Application to the Department in response to the NOFA, and to apply for the PIP grant funds in a total amount not to exceed $1,000,000;
SECTION 2. In connection with the PIP grant, if the Application is approved by the Department, the City Administrator of the City of Placentia is authorized and directed to enter into, execute, and deliver on behalf of the Applicant, a State of California Agreement ("Standard Agreement") for the total amount not to exceed $1,000,000, and any and all other documents required or deemed necessary or appropriate to evidence and secure the PIP grant, the Applicant's obligations related thereto, and all amendments thereto; and
SECTION 3. The Applicant shall be subject to the terms and conditions as specified in the Guidelines, and the Standard Agreement provided by the Department after approval. The Application and any and all accompanying documents are incorporated in full as part of the Standard Agreement. Any and all activities funded, information provided, and timelines represented in the Application will be enforceable through the fully executed Standard Agreement. Pursuant to the Guidelines and in conjunction with the terms of the Standard Agreement, the Applicant hereby agrees to use the funds for eligible uses and allowable expenditures in the manner presented and specifically identified in the approved Application.
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PASSED, ADOPTED and APPROVED this 5th day of November 2024.
Jeremy Yamaguchi, Mayor
ATTEST:
Robert S. McKinnell, City Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE
1, Robert S. McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Placentia, held on the 5th day of November 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmembers:
Councilmembers:
Councilmembers:
Councilmembers:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
Christian Bettenhausen, City Attorney
202