Community Development Agency
www.santa-ana.org/community-development
Item # 9
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 19, 2024
TOPIC: Permanent Local Housing Allocation
AGENDA TITLE
Appropriation Adjustment Recognizing Permanent Local Housing Allocation Round 4 (Non-General Fund)
RECOMMENDED ACTION
Approve an appropriation adjustment recognizing $2,403,595 in funds from the State of California, into the Permanent Local Housing Allocation (PLHA) Program revenue account and appropriate the same amount into the PLHA Round 4 expenditure account to address homelessness in the City of Santa Ana. (Requires five affirmative votes) GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
In 2017, the California Legislature approved Senate Bill 2, known as the Building Homes and Jobs Act (Act), which established a $75 recording fee on real estate documents to increase housing production in California. The Act establishes the Permanent Local Housing Allocation (PLHA) program administered by the California Department of Housing and Community Development. Under the PLHA, funding is provided through formula grants to entitlement jurisdictions such as the City of Santa Ana (City). The grants are based on the formula prescribed under federal law for the Community Development Block Grant (CDBG) program over a five-year funding period, as well as through a competitive grant program to non-entitlement jurisdictions. Real estate transactions that are recorded vary from year to year, directly affecting the grant amount the City receives annually. Over the last four years, the City has received a total of $14,360,783 including this current award of $2,403,595.
The City utilized the first-year PLHA allocation for the Santa Ana Navigation Center tenant improvement expenses. Second- and third-year allocations were used for the purchase of that property. This fourth-year allocation will be used for the operating expenses of the Santa Ana Navigation Center and homeless services. Utilizing the funds in this manner will meet the State’s requirements of entitlement jurisdictions to use PLHA funds to increase the supply of affordable housing, specifically in the category of assisting those who are homeless.
Permanent Local Housing Allocation
November 19, 2024
4 6
7 1
FISCAL IMPACT
Approval of the appropriation adjustment will recognize $2,403,595 in funds from the State of California in PLHA Program revenue account (No. 15818002-52025 State Grant-Direct) and appropriate the same amount to the expenditure accounts as follows:
Fiscal
Year
Accounting
Unit-Account
Fund Description Accounting Unit,
Account Description
Amount
FY 24-25 15818703-
69135
Permanent Local
Housing Allocation
2023 Round 4
PLHA Round 4,
Payment to Subagent
$ 2,283,415.25
FY 24-25 15818703-
61XXX
Permanent Local
Housing Allocation
2023 Round 4
PLHA Round 4, Salary
and Benefits
$120,179.75
Total: $2,403,595.00
Any remaining balances not expended at the end of the fiscal year will be presented to the City Council for approval of carryovers to FY 2025-26.
EXHIBIT(S)
1. Award Announcement - Permanent Local Housing Allocation Program Round 4 Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nuñez, City Manager