CITY OF POMONA
COUNCIL REPORT
April 15, 2024
To: Honorable Mayor and Members of the City Council
From: Anita D. Gutierrez, City Manager
Submitted By: Beverly Johnson, Acting Neighborhood Services Director SUBJECT: APPROVING AND ADOPTING AN AMENDMENT TO THE PERMANENT LOCAL HOUSING ALLOCATION (PLHA) PLAN FOR YEARS 2020, 2021, 2022 AND 2023, AWARDING AN ADDITIONAL $800,000 OF YEAR 2021 FUNDS TO NATIONAL CORE FOR THE PRISMA ARTIST LOFTS HOUSING PROJECT, AND DELEGATING FUNDS TOTALING $1,431,000 FOR THE PROJECT TO THE SAN GABRIEL VALLEY REGIONAL HOUSING TRUST (SGVRHT) RECOMMENDATION:
It is recommended that the City Council take the following actions:
Conduct a public hearing to receive public comments on the amendment to the Permanent Local Housing Allocation (PLHA) Plan for years 2020, 2021, 2022 and 2023; After receiving public comment and testimony, close the Public Hearing and adopt the following resolution:
RESOLUTION NO. 2024-45 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, APPROVING AND ADOPTING THE AMENDMENT TO THE PERMANENT LOCAL HOUSING ALLOCATION (PLHA) PLAN FOR YEARS 2020, 2021, 2022 AND 2023 AND AUTHORIZING SUBMITTAL TO THE STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (ATTACHMENT NO. 1) Adopt the following resolution:
RESOLUTION NO. 2024-46 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AWARDING AN ADDITIONAL $800,000 OF YEAR 2021 PLHA FUNDS TO THE NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA (NATIONAL CORE) FOR THE PRISMA ARTIST LOFT PROJECT AND DELEGATING PLHA FUNDS AWARDED FOR THE PROJECT TOTALING $1,431,000 TO THE SAN GABRIEL VALLEY REGIONAL HOUSING TRUST (ATTACHMENT NO. 2) Authorize the City Manager, or her designee, to execute the Delegation Agreement of PLHA Funds for Prisma Artist Lofts Affordable Housing Project with the San Gabriel Valley Regional Housing Trust and any subsequent amendments or modifications thereto, after review by the City Attorney’s Office and approval by State HCD EXECUTIVE SUMMARY:
On February 26, 2020, the California Department of Housing and Community Development (HCD) awarded the City of Pomona with Permanent Local Housing Allocation (PLHA) Program funding of up to $6,410,670 for five years (FYs 2019-2023). Based on the 5-Year Plan, funds will be used for three eligible activities: a1) the development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including accessory dwelling units; 2) matching portions of funds placed into local or regional housing trust funds; and, 3) homeownership opportunities, including down payment assistance.
On December 29, 2023, State HCD released the Notice of Funding Availability (NOFA) for 2022 or Year 4 of the PLHA Program. The City of Pomona’s 2022 Allocation is $915,970. Staff is returning to the City Council to amend the remaining four years of the Plan to re-distribute funding among the three eligible activities.
Relatedly, on February 27, 2023, the City Council approved the award of Year 2020 PLHA funds of $631,000 to National Core for the Prisma Artist Lofts Housing Project. This is a 75-unit affordable housing project, which will serve households with incomes at or below 60% of the Los Angeles County median income. Staff recommends awarding another $800,000 of Year 2021 funds to the project and delegating awarded funds totaling $1,431,000 to the San Gabriel Valley Regional Housing Trust (SGVRHT). In doing so, the SGVRHT will match PLHA funds dollar for dollar, thus doubling funding for this affordable housing development.
SB1439/GOVERNMENT CODE §84308 APPLICABILITY:
☐ When this box is checked, it indicates the agenda item is subject to the Levine Act SB1439 requirements. Councilmembers are reminded to check their campaign contributions and determine whether they have received a campaign contribution of $250 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $250 or more made 1) by any person or entity who is identified in the agenda report as the applicant or proposer or 2) on behalf of the applicant or participant, including a parent, subsidiary or otherwise related business entity, or 3) by any person who has a financial interest in the agenda item requires a councilmember to comply with SB1439.
FISCAL IMPACT: The Plan amendment involves future award of funds and will have no impact on current revenue and expenditures. Once State HCD approves the amendment, staff will return to Council to receive and appropriate the 2022 PLHA allocation of $915,970. On the award of funds for Prisma Artist Lofts, funding for this project is budgeted in the FY 2023-‘24 City Operating Budget under Permanent Local Housing Allocation (143-1791-52285-40103).
PREVIOUS RELATED ACTION: On July 20, 2020, the City Council approved and adopted the 5-Year PLHA Plan and authorized submittal of a request for funding of up to $6,410,670 over a five-year period. On August 2, 2021 and October 3, 2022, the City Council amended the 5-Year PLHA Plan and appropriated Years 2 and 3 of PLHA funding in the City Operating Budget. On February 27, 2023, the City Council approved the award of $631,000 to National Core for the Prisma Artist Lofts Housing Project.
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 Amendment to the PLHA Plan for years 2020, 2021, 2022 and 2023 was posted on the City’s website and in the City Bulletin Boards (Attachment No. 3) for inspection and public comment. The comment period will conclude on April 13, 2024.
DISCUSSION:
Years 2020, 2021, 2022 and 2023 PLHA Plan Amendment
The Amended PLHA Plan for years 2020, 2021, 2022 and 2023 will fund the following activities:
Pre-development, Development, Acquisition, Rehabilitation and Preservation of Affordable Rental and Ownership Housing, including Accessory Dwelling Units Accessory Dwelling Units – Years 2 to 5 (36% of 2020 to 2023 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 incomes do 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.
Rehabilitation of 252 E. 4th Street, Pomona – Year 4 (87% 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 affordable housing for families earning no more than 80% of AMI. PLHA funding of $800,000 will be used to defray construction cost. Other funding sources are HOME-ARP and Bond Proceeds.
For 2023 or Year 5, Staff will identify other housing projects that support families with incomes at or below 60% of AMI.
2. Matching Portions of Funds Placed into the San Gabriel Valley Regional Housing Trust Funds Prisma Artist Loft Apartments – Year 2 (38% of 2020 Allocation) and Year 3 (44% 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. At completion, 74 out of the 75 unit development 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. National CORE is the project Developer. PLHA funding available for this project is $631,000 from Year 2 funding and another $800,000 of Year 3 funding is proposed.
3. Homebuyer Assistance - Years 2 to 5 (7% of 2020 to 2023 Allocation) Up to $100,000,000 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.
Additionally, the City will use five percent of the PLHA funding for the administration of the PLHA Plan.
Award of Additional $800,000 Year 2021 PLHA Funds to National CORE for Prisma Artist Lofts Housing Project On February 27, 2023, the City Council approved the award of Year 2020 PLHA Allocation of $631,000 to National Core for the Prisma Artist Lofts Housing Project. To be financially viable, a project must have an allocation of Low-Income Housing Tax Credits from the California Tax Credit Allocation Committee. These tax credits are awarded twice each year in a highly competitive process. Successful applications rely on significant local financial contributions from the host jurisdiction. The amendment increases PLHA funding by $800,000 to enhance the project’s likelihood of securing the needed 9% tax credits in August 2024 TCAC Application Process.
In addition, Staff recommends delegation of the City’s total PLHA funding of $1,431,000 for Prisma Artist Lofts Housing Project to SGVRHT. The delegation of funds will allow SGVRHT to apply for the Local Housing Trust Fund Program that will match the City funding by 100%. It also allows the SGVRHT to administer the funds, on the City’s behalf, subject to execution of a legally binding agreement between SGVRHT and the City, and compliance with PLHA Program requirements. The latter includes imposition of tenant income and rent restrictions through a regulatory agreement for 55 years.
COUNCIL PRIORITIES & GOALS:
This item supports 2021-2022 City Council Priority 1 – Fiscal and Operational Responsibility and Priority 2: Economic Development – Goal J: Encourage the development and maintenance of quality housing opportunities for all.
Attachment No. 1 – Resolution No. 2024-45 Approving and Adopting the PLHA Plan Amendment for Years 2020, 2021, 2022 and 2023 Exhibit A – §302 (c)(4) PLHA Plan Amendment for Years 2020, 2021, 2022 and 2023
Attachment No. 2 – Resolution No. 2024-26 – Awarding An Additional $800,000 to National Core for the Prisma Artist Lofts Housing Project and delegating the $1,431,000 total PLHA funds for the Project to the San Gabriel Valley Regional Housing Trust Attachment No. 3 – Public Notice of the Plan Amendment
Prepared by:
Maria A. Siacunco
Housing Services Manager
Approving An Amendment to the PLHA Plan, Awarding and Delegating Funds for Prisma Artist Lofts Housing Project to SGVRHT