Ci
ty Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00935 May 24, 2022 Consent Item 07
T
itle: Approval to Apply for and Accept Local Housing Trust Funds from the California Department of Housing and Community Development
Loc
ation: Citywide
R
ecommendation: Adopt a Council Resolution authorizing: 1) the Sacramento Housing and Redevelopment Agency (SHRA) on behalf of the City to match, on a dollar-for-dollar basis, the Low Income Housing Trust Fund award pursuant to LHTF Guidelines Section 104; 2) SHRA to act as the manager in connection with the California Department of Housing and Community Development (HCD) funds pursuant to HCD’s Notice of Funding Availability in an amount not to exceed $3,084,534 million; 3) SHRA to submit on behalf of the City an application to the California Department of Housing and Community Development (HCD) for up to $3,084,534 million for funding under the Local Housing Trust Fund program; 4) execute a Standard Agreement for such funding when made available by HCD and execute any documents necessary to participate in the Local Housing Trust Fund Program, and any amendments thereto; and 5) amending the SHRA Budget to receive and expend the up to $3,084,534 million in Local Housing Trust Fund funds for the construction of new, affordable multifamily rental housing.
C
ontact: Christine Weichert, Director, 916-440-1353, [email protected]; Sacramento Housing and Redevelopment Agency
P
resenter: Not applicable.
A
ttachments:
1-Description/Analysis
2-Resolution
3-Ex A – Summary of Use of Funds
Description/Analysis
Issue Detail: HCD announced a Notice of Funding Availability (NOFA) for the Local Housing Trust Fund (LHTF) Program on April 5, 2022. HCD awards LHTF funds to eligible applicants to enhance local housing trust funds by providing a dollar-for-dollar match. Applications under the NOFA are due to HCD no later than May 25, 2022.
The City has two trust funds created by in-lieu fees, one on new residential development (Mixed Income Housing Ordinance), and one on commercial development (Housing Trust Fund). These funds are administered by SHRA and are eligible to serve as a match to the State LHTF funds.
SHRA will utilize a combination of these funds at the time of application to serve as the required match so that the City will be able to apply for $3,084,534 million from the LHTF program.
LHTF-funded units will be restricted to households earning 60 percent or less of area median income (AMI), with a minimum of 30 percent of the LHTF funds being used for households earning 30 percent or less of AMI. LHTF funds will be administered using the Multifamily Housing and Mortgage Revenue Bond Policies in addition to LHTF Guidelines and the LHTF application. The Policies describe the priorities when funding new multifamily developments.
Policy Considerations: The actions requested in this report will allow SHRA to apply for LHTF funds to increase the resources available through SHRA’s multifamily lending program.
All projects funded with LHTF funds will comply with the City-adopted Multifamily Lending and Mortgage Revenue Bond Policies in addition to any State-specific LHTF requirements. The LHTF program contributes to goals in the City’s 2021-2029 Housing Element by increasing the production of affordable rental housing.
Economic Impacts: Not applicable.
Environmental Considerations: California Environmental Quality Act (CEQA): The proposed action is not considered a project under CEQA pursuant to CEQA Guidelines Section 15378(b)(4).
Sustainability Considerations: Not applicable.
Commission Action: Sacramento Housing and Redevelopment Commission: At its May 4, 2022 meeting, the Sacramento Housing and Redevelopment Commission reviewed the staff recommendation for this item. The votes were as follows:
AYES: Amanfor, Boyd, Morgan, Nunley, Osmany, Staajabu, Starks, Woo
NOES: None
ABSENT: Griffin, Ross
Rationale for Recommendation: If SHRA’s application for LHTF funds is successful, the additional funds will support construction of affordable housing developments and increase the number of affordable housing units created in the City of Sacramento.
Financial Considerations: The LHTF application will request $3,084,534 million in funding.
The program allows for five percent of the award to be used for administrative costs. In accordance with the LHTF Program Guidelines, funding will be in the form of deferred payment loans with simple interest of no higher than three percent. Loan repayments revolve into an LHTF reuse account which is used to fund future SHRA loan programs for LHTF eligible activities.
Local Business Enterprise ( LBE)- M/WBE and Section 3 requirements: Local Business Enterprise requirements do not apply to this report. Minority and Women’s Business Enterprise (M/WBE) requirements and Section 3 will be applied to all activities to the greatest extent feasible and as required by federal funding and in accordance with SHRA’s Section 3 Economic Opportunity Plan.
RESOLUTION NO. 2022 -
Adopted by the Sacramento City Council
AUTHORIZATION FOR SACRAMENTO HOUSING AND REDEVELOPMENT
AGENCY TO APPLY FOR, ACCEPT, AND ADMINISTER THE LOCAL HOUSING
TRUST FUND PROGRAM IN THE NAME OF AND ON BEHALF OF THE CITY OF SACRAMENTO; RELATED BUDGET AMENDMENT; ENVIRONMENTAL FINDINGS
BACKGROUND
A. The Department of Housing and Community Development ( “Department”) is authorized to provide up to $57 million under the Local Housing Trust Fund (“LHTF”) Program from the Veterans and Affordable Housing Bond Act of 2018 (Proposition 1) (as described in Health and Safety Code (“H&S Code”) section 50842.2 et seq. (Chapter 365, Statutes of 2017 (SB 3)) (Program).
B. The State of California (the “State”), Depa rtment of Housing and Community Development (“Department”) issued a Notice of Funding Avai lability (“NOFA”) dated 4/5/22 under the LHTF Program.
C. The City of Sacramento (“ Applicant”) is an eligible Local or Regional Housing Trust Fund applying to the Program to administer one or more eligible activities using Program Funds.
D. The Department may approve funding allocations for the LHTF Program, subject to the terms and conditions of H&S Code Section 50842.2, the LHTF Program Guidelines, NOFA, Program req uirements, the Standard Agreement and other related contracts between the Department and LHTF award recipients.
E. The Sacramento Housing and Redevelopment Agency (“Agency”) administers the City’s Housing Trust Fund and the City’s Mixed Income Housing Ordinance Fund both of which are used to fund the Agency’s Affordable Multifamily Rental Development Program which follows the City-adopted Multifamily Rental and Mortgage Revenue Bond Policies.
F. The proposed action is not considered a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(4).
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, A NECESSARY
QUORUM OF THE CITY COUNCIL OF THE CITY OF SACRAMENTO HEREBY CONSENTS TO, ADOPTS AND RATIFIES THE FOLLOWING RESOLUTION:
Section 1. All evidence presented having been duly considered, the findings, including environmental findings regarding this action, as stated above, are found to be true and accurate and are hereby approved adopted.
Section 2. If Applicant, through the Agency, receives an award of LHTF funds from the Department pursuant to the above referenced LHTF NOFA, it represents and certifies that it will use all such funds on Eligible Projects in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including, without limitation, all rules and laws regarding the LHTF Program, as well as any and all contracts Applicant may have with the Department (“Eligible Project”).
Section 3. The Applicant, through the Agency, is hereby authorized to act as the manager in connection with the Department's funds to Eligible Projects pursuant to the above-described Notice of Funding Availability in an amount not to exceed $3,084,534 million (the "LHTF Award").
Section 4. Applicant, through the Agency, hereby agrees to match on a dollar-for- dollar basis the LHTF Award pursuant to Guidelines Section 104. Applicant hereby agrees to utilize matching finds on a dollar-for-dollar basis for the same Eligible Project for which Program Funds are used, as required by HSC Section 50843.5(c).
Section 5. Pursuant to Attachment 1 and the Applicant’s certification in this resolution, the LHTF funds will be expended only for Eligible Projects and consistent with all program requirements.
Section 6. Applicant shall be subject to the terms and conditions as specified in the Standard Agreement, H&S Section 50842.2 and LHTF Program Guidelines.
Section 7. La Shelle Dozier, Executive Director of Agency acting on behalf of Applicant, is authorized to execute the LHTF Program Application, the LHTF Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the LHTF Award to Applicant, as the Department may deem appropriate.
Section 8. If the application for funding is approved, the Agency’s budget is hereby amended to incorporate any LHTF funding up to $3,084,534 million for the Multifamily Lending Program.
Table of Contents:
Exhibit A – Summary of Use of Funds
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Sacramento on this 24th day of May, 2022 by the following vote:
AYES: _____
ABSTENTIONS: _____
NOES: ____
ABSENT: _____
Approving Officer: _______________________
Signature of Approving Officer __________________________________________
CERTIFICATE OF THE ATTESTING OFFICER
The undersigned Officer of the City of Sacramento does hereby attest and certify that the foregoing Resolution is a true, full and correct copy of the resolution duly adopted at a meeting of the City Council of the Ci ty of Sacramento which was duly convened and held on the dat e stated t hereon, and that said document has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof.
ATTEST:
Clerk, City Council
Name and Title of Attesting Officer
Mindy Cuppy, City Clerk of the City of Sacramento
Attachment 1
Summary of Use of Funds
Identification of the percent of the total funds requested that will be used for each activity/project, including area median income
Program Funds and Matching Funds will be used for permanent loans to subsidize the new construction of multifamily rental housing. The Sacramento Housing and Redevelopment Agency (Agency) will retain five percent of Program Funds for program administration. The remainder of the Program Funds (95 percent) will be used on a dollar for dollar match basis with locally-generated housing trust fund dollars to support the development of affordable rental housing in the City of Sacramento.
All project funding mentioned above will be used to support households at or below 60 percent of area median income. A minimum of 30 percent of program funds will be used to support households at or below 30 percent of Area Median Income.
List of jurisdictions where activities/project will be delivered – City of Sacramento only.