CITY OF POMONA
COUNCIL REPORT
March 3, 2025
To: Honorable Mayor and Members of the City Council
From: Anita Scott, City Manager
Submitted By: Beverly Johnson, Neighborhood Services Director SUBJECT: APPROVING AN AMENDMENT TO THE PERMANENT LOCAL HOUSING ALLOCATION (PLHA) PLAN FOR YEARS 2021, 2022 AND 2023, 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 amendment to the Permanent Local Housing Allocation (PLHA) Plan for years 2021, 2022 and 2023; After receiving public comment and testimony, close the Public Hearing and adopt the following resolution:
RESOLUTION NO. 2025-15 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, APPROVING THE AMENDMENT TO THE PERMANENT LOCAL HOUSING ALLOCATION PLAN FOR YEARS 2021, 2022 AND 2023, AND AUTHORIZING SUBMITTAL TO THE STATE DEPARTMENT OF HOUSING & COMMUNITY DEVELOPMENT
3. Authorize the City Manager, or her designee, to execute the Standard Agreement and any subsequent amendments or modifications thereto, subject to approval as to form by the City Attorney.
EXECUTIVE SUMMARY:
On February 26, 2020, the California Department of Housing and Community Development (HCD) awarded the City of Pomona Permanent Local Housing Allocation (PLHA) Program funding of up to $6,410,670 for five years (FYs 2019 to 2023). Based on the 5-Year Plan, funds will be used for two eligible activities: 1) Development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including accessory dwelling units; and, 2) homeownership opportunities, including down payment assistance.
The City Council approved Plan amendments in August 2021 and April 2024. The amendments added a new activity, matching portions of funds placed into regional housing trust funds. Additionally, the PLHA funding was reallocated among the 3 eligible activities.
On October 15, 2024, HCD released the Notice of Funding Availability (NOFA) for the 2023 or Year 5 PLHA Program. The City of Pomona’s 2023 allocation amounts to $702,059, bringing the total 5- year PLHA Plan funding to $6,174,622. The Housing Staff is returning to City Council to amend Plan for the remaining years of implementation, specifically: 1) to allocate 40% of 2023 funding towards affordable owner-occupied workforce housing (AOWH), and 2) to add an eligible activity, Accessibility Modifications in Lower-Income Owner-Occupied Housing. AOWH means owner-occupied housing that is affordable to persons with incomes not exceeding 120% of Area Median income. The State HCD requires that 20% of PLHA funds be expended for AOWH activities.
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 $500 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 City Council to receive and appropriate the 2023 PLHA allocation of $702,059.
PUBLIC NOTICING REQUIREMENTS:
In accordance with PLHA requirements for public noticing, the amendment to the PLHA Plan for years 2021, 2022 and 2023 was posted on the City’s website and the City Bulletin Board for inspection and public comment (Attachment No 2). The comment period concluded on March 1, 2025.
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 to add an eligible activity to the Plan and re-allocate PLHA funding among the three eligible activities. On April 15, 2024, the Council amended the Plan to increase funding for Prisma Artist Loft Project, from $800,000 (44% of 2021 PLHA allocation) to $1,431,000. The remaining 43% of year 2021 PLHA allocation is for the ADU/JADU program.
DISCUSSION:
The Amended PLHA Plan for years 2021, 2022 and 2023 will fund the following activities:
Pre-development, Development, Acquisition, Rehabilitation of Multi-Family Rental Housing that is Affordable to Extremely Low- to Moderate-Income Households Rehabilitation of 252 E. 4th Street, Pomona – Year 4 (87% of 2022 Allocation) and Year 5 (40% of 2023 Allocation) This is a 12-unit rental property owned by the Pomona Housing Successor Agency. The project involves the major rehabilitation of the property as affordable housing for families earning no more than 80% of AMI. PLHA funding in Year 4 of $800,000 and year 5 of $286,133 will be used to defray construction cost. Other funding sources are HOME-ARP HOME Program and Bond Proceeds.
Accessibility Modifications in Lower-Income Owner Occupied Housing – Year 5 (15% of Allocation) PLHA funds will be used for the Older Adults Home Modification Program. The City will offer a grant of up to $10,000 for low-barrier, high-impact home modifications to allow elderly persons remain in their homes or “age-in-place”, rather than move to nursing homes or other assisted care facilities. These modifications will include, but are not limited to installing ADA ramps, grab bars, stair railings and toilet risers. A licensed occupational therapist will perform the home assessments. To qualify for this program, household income should not exceed 80% of AMI and an elderly individual aged 62 years and older must reside in the property.
3. Homebuyer Assistance - Years 3 to 5 (8% of 2021, 8% of 2022 and 40% of 2023 Allocation) Up to $100,000 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 4 to 5 families for the 3-year period.
Additionally, the City will use five percent of the PLHA funding for the administration and implementation of the PLHA Plan.
COUNCIL PRIORITIES & GOALS:
This item supports 2021-2022 City Council Priority 1 – Fiscal and Operational Responsibility and Priority 3 – Increased Opportunity and Housing Stability ATTACHMENTS:
Attachment No. 1 – Resolution No. 2025-15
Attachment No. 2 – PLHA Amended Plan
Attachment No. 3 - Posting at the City website and Bulletin Board Prepared by:
Maria A. Siacunco, Housing Services Manager
Approving an Amendment to the PLHA Plan
Years 2021, 2022 and 2023