CITY OF POMONA
COUNCIL REPORT
May 16, 2022
To: Honorable Chairperson and Governing Board of the City of Pomona Housing Authority From: James Makshanoff, Executive Director
Submitted By: Benita De Frank, Neighborhood Services Director SUBJECT: Approve the Selection and Dedication of 24 HOUSING AND URBAN DEVELOPMENT, PROJECT-BASED, SECTION 8 HOUSING CHOICE VOUCHERS TO TWO PROJECTS RECOMMENDATION:
It is recommended that the City Council, sitting as the Governing Board of the City Pomona Housing Authority:
Adopt the following resolution:
RESOLUTION NO. 2022-85 (ATTACHMENT 1) – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, SITTING AS THE GOVERNING BOARD FOR THE CITY OF POMONA HOUSING AUTHORITY, APPROVING THE SELECTION AND DEDICATION OF 24 HOUSING AND URBAN DEVELOPMENT, PROJECT-BASED, SECTION 8 HOUSING CHOICE VOUChers WITH 8 VOUCHERS ALLOCATED TO NATIONAL CORE FOR THE PRISMA ARTIST LOFTS DEVELOPMENT AND 16 VOUCHERS ALLOCATED TO CESAR CHAVEZ FOUNDATION FOR THE EAST END VILLAGE DEVELOPMENT.
Authorize the Executive Director of the Housing Authority or his designee to execute any and all contracts/documents required for the dedication of said project based vouchers, subject to review by the City Attorney.
EXECUTIVE SUMMARY:
The City of Pomona Housing Authority (PHA) issued a Request for Proposals (RFP) soliciting applications for Housing and Urban Development, Project-Based, Section 8 Housing Choice Vouchers (PBV). Two affordable housing developers submitted a proposal, National Community Renaissance of California (National CORE) and Cesar Chavez Foundation. The Committee evaluated and ranked the proposals based on overall project approach, qualifications and experience. After review, staff is recommending awarding the 24 vouchers with 8 vouchers to National CORE and 16 vouchers to Cesar Chavez Foundation.
FISCAL IMPACT:
Approval of this action will award a Housing Assistance Payment Contract to two developers that combined, will receive approximately $369,504 in rental subsidies on an annual basis. The City of Pomona Housing Authority has an Annual Contributions Contract (ACC) with Housing and Urban Development (HUD) providing over $14,373,731 for Housing Assistance Payments which was included in the FY 2021-22 Operating Budget in account (205-1791-52579-00000) to pay for the subsidies. Therefore, no additional budgetary action is required.
PUBLIC NOTICING REQUIREMENTS:
In accordance with Section 2-993.1 - Formal procurement procedure of the City’s Purchasing ordinance, RFP notices were posted on the City’s electronic bidding platform, Planet Bids, on March 1, 2022.
PREVIOUS RELATED ACTION:
On February 1, 2021, the City Council approved an award of 8 Housing and Urban Development, Veterans Affairs Supportive Housing, Project-Based Vouchers to Cesar Chavez Foundation for the East End Village Development.
DISCUSSION:
The Project-Based Voucher (PBV) program allows PHAs, that already administer a tenant-based voucher program under an ACC with HUD, to take up to 20 percent of its authorized annual budget authority and attach the funding to specific units, rather than using it for tenant-based assistance [24 CFR 983.5]. PHAs may only operate a PBV program if doing so is consistent with the PHA’s Annual Plan, and the goal of deconcentrating poverty and expanding housing and economic opportunities [42 U.S.C. 1437f(o)(13)]. Unlike the tenant-based Housing Choice Voucher, PBV rental subsidies are not mobile. The subsidy is tied to a specific project and unit for the term of the Housing Assistance Payment (HAP) contract. The PBV subsidy can be used for newly constructed or rehabilitated units, or for units in existing buildings.
In tight rental markets, the PBV program has proven to be an essential tool in helping to ensure that affordable housing is available to voucher-eligible households. The Housing Authority is currently involved in two Low Income Housing Tax Credit developments targeted for low-income households. The majority of this population will be extremely low-income and, thus, need the additional PBV rental subsidy in order to ensure affordable rent. To that end the PHA published a RFP outlining the availability of PBVs and inviting proposals.
On March 1, 2022, RFP No. 2022-16 – Project Based Housing Choice Vouchers from the U.S. Department of Housing and Urban Development (HUD) – was issued on the City’s electronic bidding platform. The solicitation notified 35 potential suppliers, of which 11 suppliers downloaded the RFP, resulting in the City receiving two (2) proposals from National CORE and Cesar Chavez Foundation. In their proposals, National CORE requested 8 Project-Based Vouchers while Cesar Chavez requested a total of 24 vouchers. After review and out of a possible score of 310, National Core received a combined score of 310 and Cesar Chavez Foundation received a combined score of 296. Both developers were able to demonstrate their significant experience and capacity to provide the requested units. Therefore, staff is recommending an award of 8 vouchers to National CORE and 16 vouchers to Cesar Chavez Foundation. Both awards would provide 24 PBVs to two new rental housing development projects.
A summary of the proposals received in response to the RFPs totaling a request for 24 vouchers is listed below:
Prisma Artist Lofts
East End Village
Type
New Construction
New Construction
Serving
Low-Income Households
Low-Income Households
Total # of units
75 125
# of PBV Vouchers Requested
8 24
Application Review -Total Points out of 310
310
296
Staff is recommending approval of the award of PBVs to the two new construction efforts, with 8 vouchers being awarded to National CORE and 16 vouchers being awarded to East End Village, for a total of 24 PBVs being awarded. This approval will include authorization to enter into a PBV Housing Assistance Payments Contracts with the owner entities at the appropriate time. The two rental unit developments will be adding 200 new affordable rental-housing units to the Pomona market.
Prepared by:
_____________________________
Jacqueline Contreras,
Housing Analyst
ATTACHMENT(S):
Attachment No. 1 – Resolution No. 2022-85
Approving the Selection and Dedication of 24 PBV’s