DATE: May 14, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: FRANCISCO BRAMBILA, ACTING PLANNING MANAGER
BY: 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 to approve a Resolution authorizing:
submission of the City’s annual application for 2023 Permanent Local Housing Allocation to the California Department of Housing and Community Development; and submission of an amended Permanent Local Housing Allocation 5-Year Plan; and appropriation of PLHA funds to General Ledger account fund SB2 (2951); and the Interim City Manager or designee to execute all applicable agreements.
EXECUTIVE SUMMARY:
On December 29, 2023, the California Department of Housing and Community Development (HCD) released the 2023 Permanent Local Housing Allocation Program (PLHA) Program Local Government Formula Component Notice of Funding Availability (NOFA) advising of an intended Salinas allocation of $863,162. In response staff has prepared an application for these funds and is proposing an amendment to the City of Salinas (City) PLHA 5-Year Plan to allow for utilization of the funds in alignment with the City Council’s goals and commitments.
BACKGROUND:
In May 2021, 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 application after the release of yearly NOFAs in order to award funds. The City has submitted applications for the first three years of NOFAs 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). As a compliant jurisdiction, the City anticipates an allocation of $863,162 for year four (2023 NOFA).
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 varying 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 funding, staff recommend the submission of an allowable Plan amendment reflective of the current, critical homeless needs within the community and funding towards the development of low-income multifamily rental units. 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 the Homeless service assistance projects and to continue the commitment of funding towards the development of low-income multifamily rental units. Plan years 1, 2 and 3 remained unchanged.
The tables below better illustrate the proposed amendment to the Plan.
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 received an initial presentation and review of this item on April 30, 2024, in anticipation of the required Council public hearing scheduled for May 14, 2024. City will submit application and amendment to HCD by May 31, 2024.
CEQA CONSIDERATION:
The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
Application and acceptance of the City’s 2023 PLHA allocation and amendment to the City’s 5-Year PLHA Plan supports City of Salinas 2022-2025 Strategic Plan Goals and Strategies of Housing/Affordable Housing and Effective and Culturally Responsive Government.
DEPARTMENTAL COORDINATION:
This agenda item is administered by the CDD’s Housing and Community Development Division in consultation with the City Attorney and in coordination with the Finance Department.
FISCAL AND SUSTAINABILITY IMPACT:
This item has no impact to the City’s General Fund. PLHA funds will be appropriated to existing General Ledger account fund SB2 (2951).
ATTACHMENTS:
Resolution
HCD PLHA Resolution
2023 PLHA Streamlined Application
PLHA 5-Year Plan Amendment
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