DATE: APRIL 30, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: FRANCISCO BRAMBILA, ACTING PLANNING MANAGER
cRISTINA GONZALEZ, COMMUNITY DEVELOPMENT ANALYST
TITLE: SUBMISSION OF 2023 PERMANENT LOCAL HOUSING ALLOCATION PROGRAM APPLICATION AND 5-YEAR PLAN AMENDMENT TO CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT RECOMMENDED MOTION:
A motion recommending that the City Council approve a resolution:
Directing submission of the City’s 2023 annual application for Permanent Local Housing Allocation (PLHA) and amended PLHA 5-Year Plan to the California Department of Housing and Community Development; and Authorizing the Interim City Manager or designee to execute all applicable agreements.
DISCUSSION:
In May 2021, the California Department of Housing and Community Development (HCD) approved the City’s PLHA 5-Year Plan (Plan) with a potential award of $6,041,082 for the five-year period. HCD requires submission of an annual application after the release of the yearly Notice of Funding Availability (NOFA). The City has submitted applications for the first three years of PLHA funding and has been awarded $1,006,846 for year one (2019), $1,564,592 for year two (2020), and $1,722,182 for year three (2021). On December 29, 2023, HCD released the 2023 PLHA program Local Government Formula Component NOFA advising of an intended Salinas allocation of $863,162.
PLHA program funds are intended to fund housing-related projects and programs that assist in addressing the unmet housing needs of local communities. Based upon engagement and analysis, the City’s current plan includes annual percentage allocations of PLHA funds to four (4) eligible activities:
Extremely low-, very low-, low-, or moderate-income affordable housing development Accessory Dwelling Unit (ADU) production
Matching Funds to Local Housing Trust Funds (LHTF)
Homeless Services Assistance
HCD grants cities with flexibility to craft and amend a Plan that allows jurisdictions to best meet and respond to the immediate and long-term housing needs within the community. With this in mind, and in recognition of the fluid and ever-changing environment of homeless services and funding available for the development of low-income multifamily rental units, staff recommends the submission of an allowable Plan amendment. The Plan amendment will fund three of the four eligible activities, Affordable Housing Development, ADU Production, and Homeless Services assistance. More specifically, the Plan amendment seeks to adjust percentages in years 4 and 5 to recognize and fulfill the City’s prior commitment to Homeless Service Assistance projects and to continue the funding commitments for development of low-income multifamily rental units. Plan years 1, 2 and 3 remained unchanged. The tables below illustrate the proposed Plan amendment for year 4 (current application) and year 5.
Current PLHA 5-Year Plan Allocation
Activity Description
Percent Budget Per Year
1 2
3 4
5 Program Administration
5%
5%
5%
5%
5%
Affordable Housing Development
75%
0%
70%
40%
40%
ADU Production
0%
10%
0%
10%
10%
Matching Funds to LHTF
0%
0%
0%
30%
30%
Homeless Services Assistance
20%
85%
25%
15%
15%
Totals
100%
100%
100%
100%
100%
Proposed Amendment to PLHA 5-Year Plan
Activity Description
Percent Budget Per Year
1 2
3 4
5 Program Administration
5%
5%
5%
5%
5%
Affordable Housing Development
75%
0%
70%
40%
55%
ADU Production
0%
10%
0%
10%
10%
Matching Funds to LHTF
0%
0%
0%
0%
0%
Homeless Services Assistance
20%
85%
25%
45%
30%
Totals
100%
100%
100%
100%
100%
Fourth Year Allocation Application
Activity Description
Year 4
Amount
Program Administration
5%
$43,158
Affordable Housing Development
40%
$345,265
ADU Production
10%
$86,316
Homeless Services Assistance
45%
$388,423
Total
100%
$863,162
As required by HCD, the City initiated the required 10-day public notice on April 26, 2024, inviting public review and comment. Copies of applicable documents were made available online, in person at the City’s Permit Center, and through email request. The City’s Housing and Land Use Committee is receiving this presentation to review this item in anticipation of the required Council public hearing scheduled for May 14, 2024. City will submit the PLHA 2023 application and 5-year Plan amendment to HCD by May 31, 2024.
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CITY OF SALINASHOUSING AND LAND USE COMMITTEECITY OF SALINASHOUSING AND LAND USE COMMITTEE
CITY OF SALINAS
HOUSING AND LAND USE COMMITTEE
CITY OF SALINAS
HOUSING AND LAND USE COMMITTEE