PLHA Grant ‐ 5 Year Plan
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.
At the beginning of every calendar year, the City solicits proposals for its HUD Funds (CDBG and HOME Investment Partnership) to prepare the Annual Action Plan. In 2020, the City received two proposals for gap financing for the Parkside (Senior Housing) and Sun Rose (Permanent Supportive Housing) Apartments. Sun Rose Apartments was awarded funding through a No Place Like Home Grant. Parkside Apartments submitted a TCAC application in March that was not awarded, but will re-submit on July 1st. This is the first phase of a two- phase project that will net eighty (80) units. The City anticipates providing financing to these developments, which already have received entitlement approval in the first year. The City anticipates following the same process established with HUD program funding and will transmit a Request for Proposal (RFP) in January/February of each calendar year. Proposals will be evaluated for readiness and then formally rated and ranked. The City will submit funding recommendations to City Council in May in conjunction with HUD recommendations.
In this way, the PLHA funding can be fully leveraged with other City sources. In addition, the City will proactively recruit developers for two City sites and one County property and will host sessions to highlight these areas for interested developers in the Fall of 2020. RFPs for these sites will be circulated in early 2021. 210
§302(c)(4)(E)(iv) Period of Affordability for the Proposed Affordable Rental Housing Activity (55 years required for rental housing projects)
55 Years 55 Years 55 Years 55 Years 55 Years
§302(c)(4) Plan
§301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-,very low-, low-, or moderate-income households, including necessary Operating subsidies. §302(c)(4)(E)(i) Provide a description of how allocated funds will be used for each proposed Affordable Rental Housing Activity.
The City will allocate PLHA funding to provide gap financing for construction of multi-family and senior affordable rental housing projects targeted to households that are 60% AMI or below. These projects must be “shovel-ready” and have already applied for or secured other financing, such as applying to the California Tax Credit Allocation Committee (TCAC) for either 4% or 9% tax credits. If multiple projects meet these criteria, the City will conduct a formal Request for Proposal and each application will be rated and ranked similar to the City’s HUD HOME Investment Partnership Program. Qualified projects may be recommended for future years. In addition, the City may use its HUD funding (CDBG & HOME) to complement the PLHA funding. Any committed PLHA funding will not be distributed until all other financing is in place. For Activity 1, gap financing for multi-family or senior housing, the City will allocate 75% of the PLHA funds in the first year, 40% in the second year, 50% in the third year, and 40% in the fourth and fifth years. 224
§302(c)(4)(E)(ii) Projected Number of Households Served 50 40 40 40 40 TOTAL
§302(c)(4)(E)(ii) Unmet share of the RHNA at the AMI Level 50 40 50 40 44 §302(c)(4)(E)(ii) Area Median Income Level Served 60% 60% 60% 60% 60% §302(c)(4)(E)(i) Percentage of Funds Allocated for the
Proposed Affordable Rental Housing Activity 75.00% 40.00% 50.00% 40.00% 40.00% §302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.
The City of Salinas (City) will allocate HCD Permanent Local Housing Allocation (PLHA) funds to four (4) activities: 1) providing gap financing for construction of multi-family and senior affordable rental housing projects within the City, targeted to households that are 60% AMI or below; 2) creating an ADU Program which provides revolving loans to moderate or low-income households to accelerate ADU production; 3) contributing funds, beginning in the second year, for a Regional Housing Trust Fund to be established through the HCD Local Housing Trust Fund (“LHTF”) Program, in collaboration with the County of Monterey; 4) supporting the implementation of the Continuum of Care’s 10 Year Plan to Reduce Homelessness, including rapid rehousing, rental assistance, and supportive/case management services to assist in securing or retaining housing; operational and capital costs for the Chinatown Navigation Center and the emergency shelter; and new construction, rehabilitation, and preservation of permanent and transitional housing. §302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income (AMI).
The City will allocate all Activity 1 funding to provide gap financing for construction of multi-family and senior affordable rental housing projects within the City, targeted to households that are 60% AMI or below. Similarly, funding allocated for Activity 3, the Regional Trust Fund, will provide loans and/or grants to affordable housing developers producing affordable rental housing also targeted to households that are 60% AMI or below. There are multiple affordable housing projects in our 5-year pipeline including Parkside Apartments (Senior Housing), Sun Rose Apartments (Permanent Supportive Housing), Laurel on Monterey County property (Permanent Supportive Housing), Division Street Mixed-Use Project on City property (Family Housing), and Alisal Marketplace Apartments (Family Housing) on City property. All units produced through these projects that receive PLHA funding will be occupied by households at or below 60% AMI. Over the next five (5) years, the City anticipates this funding will contribute to the production of at least five (5) affordable housing complexes for Activity 1 and three (3) housing complexes for Activity 3. All new units will have an affordability restriction of 55 years. The City will prioritize affor dable housing projects at 60% AMI or below that are essentially “shovel ready”. If multiple projects meet these criteria, the City will conduct a formal Request for Proposal and each application will be rated and ranked similar to the City’s HUD HOME Investment Partnership Program.
Complete the table below for each proposed Affordable Rental Housing Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting).
Funding Allocation Year 2019 2020 2021 2022 2023
§302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government’s Housing Element.
The Housing Element aims to expand the City’s affordable housing inventory by a minimum of 700 units (50 extremely low, 100 very low, 150 low, and 400 moderate income units) by 2023. Through Action H-9, the City’s aims to provide gap-financing for nonprofit housing developments. For this reason, the City will allocate 75% of the HCD PLHA grant funding in year one (1), 40% in years two (2), four (4) and five (5), and 50% in year three. The aforementioned Division Street project, falls within the Alisal Neighborhood Revitalization Strategy Area, supporting Action H-5 of the City’s Housing Element. Additionally, Policy H-3.5 encourages the provision of housing and services for individuals experiencing homelessness through the use of state and federal programs. The City is proposing to leverage 15% of HCD PLHA funds for best practices such as rapid rehousing that reduce homelessness. A Regional Housing Trust Fund will also support Action H-9 of the City’s housing element, which encourages the City’s participation in regional/multi-jurisdictional agreements and activities to facilitate housing development. Moreover, a Regional Trust Fund will assist the City in producing the additional 2,093 units needed to meet the City’s Regional Housing Needs Assessment (RHNA) goal.
Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301))
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.
The City has committed to participating in the County of Monterey’s Application to HCD for the Local Housing Trust Fund Program (LHTF) in order to establish a Regional Housing Trust Fund (RHTF). The application is due after the submittal of the City PLHA application. For this reason, the City has allocated $200,000 of unrestricted funds toward the required match for the RHTF in the first year. Prior to application submittal, the City will work with the County and participating jurisdictions to refine the trust fund guidelines, determine administrative support, and establish funding parameters based upon contribution. The City and County have already agreed that the Regional Trust Fund will provide loans and/or grants for affordable rental housing targeted to households that are 60% AMI or below. It is anticipated the County will submit the application for the LHTF before the August 3rd deadline. If funding is awarded, the City will work with the County to promote the RHTF as a funding resource for affordable housing. Similar to PLHA development funding, the Regional Housing Trust Fund will be geared toward shovel-ready multi-family affordable rental housing projects. All new units created with these funds will maintain a 55-year affordability period. If the Regional Housing Trust Fund is not established, PLHA funds for this activity will get shifted towards activity one, the development of multi-family and senior affordable housing rental projects.
100
§302(c)(4)(E)(iv) Period of Affordability for the Proposed Activity (55 years required for rental housing projects) 55 55 55 55 224
§302(c)(4)(E)(ii) Projected Number of Households Served 20 20 30 30 TOTAL
§302(c)(4)(E)(ii) Unmet share of the RHNA at AMI Level 50 40 50 40 44 §302(c)(4)(E)(ii) Area Median Income Level Served 60% 60% 60% 60% §302(c)(4)(E)(i) Percentage of Funds Allocated for the
Proposed Activity 30.00% 30.00% 30.00% 30.00%
Type of Affordable Housing Activity
Rental
Rental
Rental
Rental
This year the City will partner with the County in submitting an application through the HCD’s Local Housing Trust Fund (LHTF) Program to establish a Regional Housing Trust Fund (RHTF). The City will contribute $200,000 of unrestricted funding for the required match this year. Once established, the City will allocate 30% of future PLHA funding in the 2nd through 5th year to the RHTF.
Complete the table below for each proposed Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting).
Funding Allocation Year 2019 2020 2021 2022 2023
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of each Affordable Rental and Ownership Housing project.
In 2018, the City was awarded a Corporation for National Service VISTA Grant in part to facilitate the production of ADUs. Since then, the City adopted a five-year development impact fee exemption for ADUs and have streamlined ADU regulations. The City has also applied for LEAP Funding for the development of pre-approved plans for ADUs and promotional marketing and have assigned a City navigator for interested homeowners. The City would use the PLHA funding to complement these efforts by establishing a new revolving loan fund to help moderate income households finance ADU development. The City also plans to partner with banks to leverage our resources and increase the fund’s loan capacity. The City will create the loan fund guidelines and secure additional funding in the first year. Once the program guidelines have been established and adopted by City Council, the City will begin the pre-qualifying process for top applicants in year two (2) of this plan. Funding will be made available to households at 120% of the AMI or below. The City will award financing to qualified applicants on a “first come first served” basis beginning in Fall of 2021. §301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds. 0%
30 §302(c)(4)(E)(iv) Period of Affordability for the Proposed Activity (55 years required for rental housing projects) Percentage of Funds Allocated for
Affordable Owner-occupied Workforce
Housing
§302(c)(4)(E)(i) Provide a description of how allocated funds will be used for the proposed Activity. §302(c)(4)(E)(ii) Projected Number of Households Served 10 10 10
403
§302(c)(4)(E)(i) Percentage of Funds Allocated for Each Affordable Housing Activity 10% 10% 10%
TOTAL
§302(c)(4)(E)(ii) Unmet share of the RHNA at AMI Level 75 75 75 75 103 §302(c)(4)(E)(ii) Area Median Income Level Served 120% 120% 120% Type of Affordable Housing Activity ADU ADU ADU
The City's HCD PLHA Grant Funds will be used to begin a new Accessory Dwelling Unit (ADU) Financing Program in the second year of this five-year Plan. The PLHA ADU allocation will be used to establish a revolving loan fund for predevelopment costs and/or hard construction costs directly associated with the construction of new ADUs within City limits. The City is proposing to allocate 10% of the HCD PLHA Grant on years two (2), four (4), and five (5).
Complete the table below for each proposed Affordable Rental and Ownership Housing Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting).
Funding Allocation Year 2019 2020 2021 2022 2023
§301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days.
30%
Percentage of Funds Allocated for
Affordable Owner-occupied Workforce
Housing
§302(c)(4)(E)(i) Provide a description of how allocated funds will be used for each proposed Affordable Rental and Ownership Housing Activity.
YesFile Name: Plan Adoption Attached and on USB?
§302(c)(4)(D) Evidence that the Plan was authorized and adopted by resolution by the Local jurisdiction and that the public had an adequate opportunity to review and comment on its content.
§301(a)(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested by a county in an affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The county fiscal incentives shall be in the form of a grant or low-interest loan to an affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan to the affordable housing Project.
§301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance. §301(a)(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments. §302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.
During the first year, the City is focused on expanding services at the Chinatown Navigation Center by providing shelter for up to fifty individuals experiencing homelessness through the installation of a Sprung shelter and five (5) trailers. The City has also partnered with the County on supporting the County’s only emergency shelter and similarly was able to expand capacity through the addition of trailers. PLHA funding would be used to continue support of these efforts. In addition, first year funding will focus on transitioning Project Roomkey motel guests (a state program for medically fragile and elderly homeless individuals to reduce the spread of COVID-19) into stable housing. The City will continue to coordinate with the Coalition for Homeless Service Providers (Continuum of Care, or CoC, Collaborative Applicant) to program funding to address homeless service gaps in the City.
The City is a HUD Emergency Solutions Grant (ESG) entitlement jurisdiction and plans to follow the same application process to support organizations that receive PLHA funds for homeless services. In January/February of each calendar year, the City will circulate a Request for Proposals (RFP) for homeless related services to implement the CoC’s 10 Year Plan to Reduce Homelessness. Proposals will be rated and ranked by late Spring. Based upon these rankings and ESG funding gaps, City staff will send PLHA funding recommendations to City Council for consideration in May. It is anticipated that most PLHA funding will be used for emergency shelter, and the new construction, rehabilitation, and preservation of permanent and transitional housing, since other funding sources for these categories of work are limited. §301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing. 375
§302(c)(4)(E)(iv) Period of Affordability for the Proposed Activity (55 years required for rental housing projects) §302(c)(4)(E)(ii) Projected Number of Households Served 75 75 75 75 75
TOTAL
§302(c)(4)(E)(ii) Unmet share of the RHNA at AMI Level
§302(c)(4)(E)(ii) Area Median Income Level Served 30% 30% 30% 30% 30% §302(c)(4)(E)(i) Percentage of Funds Allocated for the
Proposed Activity 20.00% 15.00% 15.00% 15.00% 15.00%
Type of Activity for Persons Experiencing or At Risk of Homelessness
Emergency
Shelters
Navigation
Centers
Emergency
Shelters
Transitional
Permanent
Complete the table below for each proposed Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting).
Funding Allocation Year 2019 2020 2021 2022 2023
§301(a)(6) Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
§302(c)(4)(E)(i) Provide a description of how allocated funds will be used for the proposed Activity.
The City proposes to use funding to support the implementation of the Continuum of Care’s 10 Year Plan to Reduce Homelessness (currently under development) including rapid rehousing, rental assistance, supportive/case management services to assist in securing or retaining housing; operating and capital costs for the Chinatown Navigation Center and the emergency shelter; and the new construction, rehabilitation, and preservation of permanent and transitional housing. In the first year, the City proposes to use 20% of its funding for these services, particularly to limit the negative impact of the COVID-19 pandemic on housing security. In years two through five, the City will allocate 15% for these services. §301(a)(5) Capitalized Reserves for Services connected to the preservation and creation of new permanent supportive housing. §301(a)(4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176.