CITY OF POMONA
COUNCIL REPORT
February 27, 2023
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Benita DeFrank, Neighborhood Services Director SUBJECT: ADOPTION OF A RESOLUTION AWARDING PERMANENT LOCAL HOUSING ALLOCATION (PLHA) FUNDS IN THE AMOUNT OF $631,000 TO NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA (NATIONAL CORE) FOR THE PRISMA ARTIST LOFTS AFFORDABLE HOUSING PROJECT RECOMMENDATION:
It is recommended that the City Council take the following actions:
Adopt the following resolution:
RESOLUTION NO. 2023-29 (ATTACHMENT NO. 1) – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AWARDING PERMANENT LOCAL HOUSING ALLOCATION (PLHA) FUNDS IN THE AMOUNT OF $631,000 TO NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA (NATIONAL CORE) FOR THE PRISMA ARTIST LOFTS AFFORDABLE HOUSING PROJECT Authorize the City Manager, or his designee, to negotiate with National CORE for the execution of an Affordable Housing Agreement with the Developer and execute all necessary documents for the award of funds.
EXECUTIVE SUMMARY:
On October 3, 2022, the National Community Renaissance of California (National CORE) submitted an application to the City of Pomona, for funding of $631,000 from the Permanent Local Housing Allocation (PLHA) Program for the Prisma Artist Lofts Housing Project. This proposed 75-unit affordable housing project (the “Project”) will serve households with incomes at or below 60% of the Los Angeles County median income guidelines. The project will be located at 501 E. Mission Boulevard, Pomona, and will include a public pocket park, leasing office, art room, and a community center that will accommodate a range of supportive services, classes and gatherings.
FISCAL IMPACT: Funding for this project is budgeted in the FY 22-23 City Operating Budget from PLHA Program funds (143-1791-52285-40103).
PREVIOUS RELATED ACTION: On May 16, 2022, the City Council, sitting as Governing Board of the City of Pomona Housing Authority, approved the allocation of eight Section 8 Housing Choice Vouchers to National CORE for the Prisma Artist Lofts Housing Project. On October 3, 2022, the City Council approved the City of Pomona’s 5-Year PLHA Plan, which included funding of $631,000 for this project.
PUBLIC NOTICING REQUIREMENTS: No public notice is required as this action does not constitute a substantial amendment to the 5-Year PLHA Plan.
DISCUSSION:
National CORE is a non-profit 501(c) (3) organization with in-house construction, property and asset management, accounting and social programs/services departments. This integrated structure allows for better quality control and cost-savings. Over the past 5 years, National CORE has completed and leased-up 1,080 new affordable housing units throughout Southern California, including 533 units for families and 547 units for seniors. Among their projects are: Veterans Park in Pomona with 61 housing units for families, homeless and veterans; Day Creek Villas in Rancho Cucamonga, with 140 housing units for seniors; and, Crestwood Terrace, involving 184 transit-oriented, affordable housing units for families.
The Prisma Artist Lofts Housing Project, proposed to be located at 501 E. Mission Boulevard, is a 75-unit affordable housing development for families and artists, with one unit set-aside for the property manager. This project is reserved for families with incomes up to 60% of the Los Angeles County median income guidelines. The units will consist of 31 one-bedroom (BR) units, 27 two-BR units (1 will be the manager’s unit), and 21 3-BR units. Monthly rents, including utility allowance, will range from $670 for a 1-BR unit to $1,858 for a 3-BR unit.
The development will include several landscaped areas, amenities with a tot lot, drought-tolerant and native ground covers, walkways for residents to access community spaces, an outdoor lounge with a fireplace, and a pocket park for use by residents and the surrounding community. It will also include approximately a 985 square foot (sf) leasing office, 817 sf art room, and 1,964 sf community center to accommodate supportive services, classes, gatherings, and to host art openings. “Hope Through Housing Foundation” (HTHF), is an incorporated non-profit organization that functions as an affiliate to National CORE to provide on-site social services. Their programs focus on developmental, educational, social, health, and workforce opportunities for children, youth and families living in and around its development projects.
The total project cost is $47.6 million and will be funded from a number of different sources. The funding sources include the City of Pomona PLHA Program ($631,000), Pomona Land Loan ($4.5 million), Pomona Impact Fee Note ($755,000), Permanent Loan ($6.6 million), 9% Tax Credit ($27.2 million), San Gabriel Valley Regional Housing Trust (SGVRHT) ($2.0 million), HCD Infill Infrastructure Grant Program ($4.5 million), Federal Earmark ($800,000), and ARP ($550,000). By receiving PLHA funding through the City, National CORE also becomes eligible to apply for and receive additional funding of $631,000 from the SGVHT, since SGVHT will match PLHA funding by 100%.
PLHA funding will be used to assist with construction costs. At this time, National CORE is still in the process of securing financing and permits. Start of construction is scheduled in March 2024, with project completion targeted for September 2025.
Staff reviewed the proposal submitted by National CORE. Based on the amount of the City’s investment, two affordable units will be PLHA’s share in the total project. Rents for these units cannot exceed the maximum rent limits published by the State HCD Multi-Family Housing Program. Per National CORE’s proposal, rents for all housing units will meet the HCD’s maximum rent limits. Staff proposes that 2 housing units, comprising of a 1-BR unit and a 2-BR unit for tenants with incomes at 30% of AMI be designated as PLHA units. These units must remain affordable for 55 years, per PLHA Program requirements. In this regard, a regulatory agreement must be recorded against the property restricting the PLHA units for rent to low income families and at affordable rents.
COUNCIL PRIORITIES & GOALS:
This item supports 2021 City Council Priority #3 – Increased Opportunity and Housing Stability and Goal J – Encourage the development and maintenance of quality housing opportunities for all.
Prepared by:
Maria Siacunco
Housing Grants Supervisor
ATTACHMENT:
Attachment No. 1 – Resolution No. 2023-29
Awarding PLHA funds to National CORE
For Prisma Artist Lofts Housing Project