CITY OF POMONA
COUNCIL REPORT
October 3, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Benita DeFrank, Neighborhood Services Director SUBJECT: APPROVING AND ADOPTING THE SECOND AMENDMENT TO THE FIVE-YEAR PERFORMANENT LOCAL HOUSING ALLOCATION (PLHA) PLAN AND AUTHORIZING SUBMITTAL TO THE STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT RECOMMENDATION:
It is recommended that the City Council take the following actions:
Conduct a Public Hearing to receive public comments on the Second Amendment to the Five-Year Permanent Local Housing Allocation Plan:
Adopt the following Resolution:
RESOLUTION 2022-175 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, APPROVING AND ADOPTING THE SECOND AMENDMENT TO THE FIVE-YEAR PERMANENT LOCAL HOUSING ALLOCATION (PLHA) PLAN AND AUTHORIZING SUBMITTAL TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNNITY DEVELOPMENT (ATTACHMENT NO. 1) EXECUTIVE SUMMARY:
In 2021, the California Department of Housing and Community Development (HCD) awarded the City of Pomona with Permanent Local Housing Allocation (PLHA) Program funding. To be eligible for this funding, the City Council approved and adopted a 5-Year PLHA Plan. This plan included two eligible activities: the development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including accessory dwelling units; and, homeownership opportunities, including down payment assistance. In August 2021, the City Council amended the 5-Year Plan to add a new activity, providing matching portion of funds to the San Gabriel Valley Regional Housing Trust (SGVRHT).
On August 17, 2022, the HCD released a Notice of Funding Availability (NOFA) for the Year 3 PLHA Program. The City of Pomona’s 2022 allocation is $1,827,543. Staff is again requesting the City Council to amend the 5-Year Plan, which will be submitted to HCD together with the Year 3 PLHA application. The amended plan for Year 3, will re-allocate the funding from providing match funds to SGVRHT, to a focus on the development, acquisition, rehabilitation and preservation of affordable rental and ownership housing.
FISCAL IMPACT: This action involves future PLHA award of funds and will have no impact on current revenue and expenditures. Once the Amended 5-Year Plan has been approved by State HCD, Housing Staff will return to Council to receive and appropriate the 2022 PLHA Allocation of $1,827,543.
PREVIOUS RELATED ACTION: On July 20, 2020, the City Council approved and adopted the 5-Year PLHA Plan and authorized the submittal of a request for funding of up to $6,410,670 over a five-year period. On June 21, 2021, the City Council appropriated the 2020 PLHA Program award of $1,068,445 in the FY 2021-22 City Operating Budget. On August 2, 2021, the City Council amended the 5-Year Plan to add matching portions of funds to SGVHT as an eligible activity. On February 28, 2022, the City Council appropriated the 2021 PLHA Program award of $1,660,695 in the FY 2021-22 City Operating Budget.
PUBLIC NOTICING REQUIREMENTS: PLHA guidelines established by the State require that reallocations of more than ten percent of funds among activities require a substantial amendment to the PLHA Plan. The Second Amendment to the 5 Year PLHA Plan was posted in the City’s website and the City Bulletin Boards for inspection and public comment. The comment period will conclude on October 2, 2022.
DISCUSSION:
On February 4, 2021, the California Department of Housing and Community Development (HCD) awarded the City of Pomona with $1,068,445 in Permanent Local Housing Allocation (PLHA) Program funding.
To be eligible for this funding, the City Council approved and adopted a 5-Year PLHA Plan on July 20, 2020, and authorized its submission to the California HCD. The 5-Year funding for the PLHA Program is $6,410,670. Based on the 5-Year Plan, funds were proposed to be used for two eligible activities: the development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including accessory dwelling units; and, homeownership opportunities, including down payment assistance.
On August 2, 2021, the City Council amended the 5-Year Plan to add a new activity, providing matching portion of funds to the San Gabriel Valley Regional Housing Trust (SGVRHT). The SGVRHT will provide 100% match to our PLHA funds, thus doubling funding for affordable housing projects in the City. The first Amendment was submitted to HCD together with the City’s 2021 or Year 2 PLHA Program application for $1,660,695.
On August 17, 2022, the State HCD released a NOFA for the 2022 or Year 3 PLHA Program. The City of Pomona’s 2022 Allocation amounts to $1,827,543. Staff is again returning to the City Council to amend the 5-Year Plan, which will be submitted to HCD together with the Year 3 PLHA application. Beginning Year 3 of the 5-Year PLHA Plan, the amended plan will re-allocate the funding from providing match funds to SGVRHT, to a focus on the development, acquisition, rehabilitation and preservation of affordable rental and ownership housing.
The Amended Five-Year PLHA Plan will fund the following activities:
Pre-development, Development, Acquisition, Rehabilitation and Preservation of Affordable Rental and Ownership Housing, including Accessory Dwelling Units East End Village Housing Project - Year 1 (40% of 2020 PLHA Allocation) The City Council awarded $400,000 of PLHA funding to Cesar Chavez Foundation during its meeting on November 15, 2021. This project involves the development of 125 housing units dispersed among three buildings, a community clinic, a pocket park and a community center. The project will benefit previously homeless individuals, veterans and families earning no more than 60% of Los Angeles County’s area median income (AMI).
Rehabilitation of 252 E. 4th Street, Pomona – Year 3 (40% of 2022 Allocation) This is a 12-unit rental property owned by the Pomona Housing Successor Agency. The project involves the major rehabilitation/development of the property as interim housing with supportive services for families earning no more than 60% of AMI. The project is envisioned to provide a more stable housing alternative vis-à-vis, hotels with a longer stay. PLHA funding of $694,432 will be used to defray construction cost. Other funding sources are HOME-ARP and Project Homekey.
For Years 4 and 5, similar affordable housing projects that supports families with incomes at or below 60% of AMI will be funded by the PLHA Program.
Accessory Dwelling Units – Years 1 to 5 (40% of 2020 to 2025 Allocation) The Accessory/Junior Accessory Dwelling Loan Program is intended to expand the supply of affordable rental housing through the creation or conversion of existing structures into accessory dwelling units (ADUs). The ADUs must be rented to tenants whose income does not exceed 80% of AMI. At the same time, the program will provide homeowners earning up to 80% of AMI with an income stream through monthly rental payments. Some 3 to 4 homeowners will benefit from this program annually.
2. Matching Funds for the San Gabriel Valley Regional Housing Trust Projects Prisma Artist Loft Apartments – Year 2 (40% of 2021 Allocation) This development covers 75 residential apartment units and a community space that can accommodate supportive services, classes, programs and a community artist gallery. This project will benefit families earning no more than 60% of AMI, with 8 units reserved as permanent supportive housing and 10 units for developmentally disabled individuals. PLHA funding available for this project is $631,000. The project developer is National CORE.
3. Homebuyer Assistance - Years 1 to 5 (20% of 2020 to 2025 PLHA Allocation) Up to $95,000 will be available as down payment assistance to first time homebuyers earning up to 120% of AMI. PLHA funds will target families earning from 81% to 120% of AMI, or families not eligible for federal assistance. It will also supplement federal funding for families earning up to 80% of AMI to allow families with lower incomes to afford a home. PLHA funding will benefit two to three families annually.
Additionally, the City will use five percent of the PLHA funding for the administration of the PLHA Plan.
COUNCIL PRIORITIES & GOALS:
This item supports 2021-2022 City Council Priority 1 – Fiscal and Operational Responsibility ATTACHMENT(S):
Attachment No. 1: Resolution No. 2022-175
Attachment No. 2: 2nd Amendment to the PLHA Plan Public Notice Attachment No. 3: Second Amendment to the Five -Year PLHA Plan Prepared by:
Maria A. Siacunco, Housing Grants Supervisor
Approving the Second Amendment to the Five Year Permanent Local Housing Allocation Plan