Permanent Local Housing Allocation Program
Plan for 2020-2024
The California Department of Housing and Community Development (HCD) has announced the Permanent Local Housing Allocation (PLHA) program for 2020. The PLHA program is funded from moneys deposited in the Building Homes and Jobs Trust Fund (Fund) in calendar year 2019. The City of Santa Rosa has been allocated a grant amount not to exceed the five-year estimate of $4,165,950. On June 2, 2020, the Santa Rosa City Council approved a resolution authorizing the Department of Housing and Community Services to apply for these grant funds. More information about the PLHA program is available on HCD’s website.
Allocation of Funds
The City of Santa Rosa will utilize Permanent Local Housing Allocation program funds for the creation of affordable housing in Santa Rosa to assist in addressing the community’s housing needs. Allocated funds will be loaned to eligible homebuyers through an over-the-counter application process for Affordable Ownership Worker Housing (AOWH) activities, as required and affordable housing developers selected through a competitive process initiated by a Notice of Funding Availability, with applications vetted by staff and selected for award by the Housing Authority of the City of Santa Rosa in conjunction with the City’s other affordable housing resources. Applicants may apply for program funding for predevelopment, development, acquisition, rehabilitation, and preservation of multi-family rental housing that is affordable to Extremely Low-, Very Low-, Low-, and moderate-income households.
Program funds are planned to be distributed to awarded applicants in the form of a deferred loan, at 3% simple interest, with a provision for repayment in the event of project surplus cash. Developer loans will be secured by a Loan Agreement, Deed of Trust, Promissory Note, and Regulatory Agreement.
Homebuyer loans will be secured by a Deed of Trust, Promissory Note, and a Resale Restriction Agreement. Program income (generated through any surplus cash repayment, loan repayment, etc.) will be reused for program-eligible expenses based on applications submitted in response to a subsequent competitive solicitation.
Investment Priorities
Other than the required allocation of funds for AOWH activities, the City of Santa Rosa will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income, by soliciting developer proposals for predevelopment, development, acquisition, rehabilitation and preservation of multifamily rental housing that is affordable to extremely low-, very low-income households through a Notice of Funding Availability (NOFA). The NOFA will identify the funds that are available and will outline the eligible uses of the funds, selection criteria, terms and conditions for the funds, application requirements, and due date for applications. Selection criteria will include a preference for applications which include the highest number of affordable units at the deepest level of affordability.
Exhibit A
City of Santa Rosa | Housing and Community Services Department 90 Santa Rosa Avenue • Santa Rosa, CA 95404
Phone: (707) 543-3300 • Fax: (707) 543-3317
www.srcity.org
Consistency with the Housing Element of the General Plan The City of Santa Rosa operates numerous programs aimed at maintaining and expanding affordable housing opportunities in the community. The City’s Housing Authority was established in 1971 with a goal to provide decent, safe, and sanitary housing in Santa Rosa. The Housing Authority has four basic approaches to meeting this goal: development of new units, rehabilitation of existing units, rental assistance, and special housing projects. In the area of new affordable housing, the City focuses primarily on the development of rental units. The City's Inclusionary Housing Ordinance aligns with the PLHA Plan through the collection of impact fees from residential, market rate developments for affordable housing production and rehabilitation. The City receives Community Development Block Grant (CDBG) funds from the US Department of Housing and Urban Development (HUD), a majority of which are allocated for new development and rehabilitation of affordable housing. Home Investment Partnership Program (HOME) funds are federal funds generally available for acquisition, and new development. The City also designates twenty-five percent of the income from tax on residential properties sold (Real Property Transfer Tax) to support affordable housing and homeless services. Each of these programs is consistent with the Plan by creating and maintaining housing that is affordable to Santa Rosa households that are Extremely-, Very-, and Low-Income.
Proposed Housing Activity
§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.
Funding Allocation Year 2019
(Round 1)
2020
(Round 2)
2021
(Round 3)
2022
(Round 4)
2023
(Round 5)
§302(c)(4)(E)(i) Percentage of
Funds Allocated for the Proposed
Affordable Rental Housing Activity
100% 100% 100% 100% 60%
§302(c)(4)(E)(i) Percentage of
Funds for AOWH Activities
0% 0% 0% 0% 40%
§302(c)(4)(E)(ii) Area Median
Income Level Served
60% 60% 60% 60% 60%
§302(c)(4)(E)(ii) Unmet share of
the RHNA at the AMI Level (units)
556 531 506 481 456
§302(c)(4)(E)(ii) Projected Number
of Households Served
25 25 25 25 25
City of Santa Rosa | Housing and Community Services Department 90 Santa Rosa Avenue • Santa Rosa, CA 95404
Phone: (707) 543-3300 • Fax: (707) 543-3317
www.srcity.org
§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
Upcoming Steps and Preliminary Schedule
Once grant funds are awarded and a Standard Agreement is executed, the PLHA funds will be made available to eligible homebuyers through an over-the-counter application process and developers through the publication of a Notice of Funding Availability (NOFA). Typically, NOFAs are published twice each year and stay open for 30-60 days. Developer applications are then analyzed by staff for completeness and alignment with the NOFA preferences, program funding requirements, and Housing Authority lending guidelines. Applications are reviewed and award determinations are made by the Housing Authority of the City of Santa Rosa, during a public meeting held usually within 30 days of the completion of the staff analysis. Once funds are awarded, loan documents (loan agreement, regulatory agreement, promissory note, deed of trust, resale restriction agreement, etc.) will be executed and recorded against the property as applicable. The developer with then begin the awarded activity and submit invoices for cost reimbursement. For AOWH activities, funds will be deposited into escrow at the time of closing.
We welcome public comment and review on this PLHA Plan through January 28, 2025. Comments may be emailed to Housing Trust at [email protected]
or mailed to:
City of Santa Rosa – Housing and Community Services Department Attn: Housing Trust
90 Santa Rosa Avenue
Santa Rosa, CA 95404