CITY OF SIGNAL HILL
STAFF REPORT
2175 Cherry Avenue • Signal
Hill, California 90755-3799
6/27/2023
AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: COLLEEN T. DOAN
COMMUNITY DEVELOPMENT DIRECTOR
SUBJECT:
RESOLUTION APPROVING YEAR THREE PARTICIPATION IN THE LOS ANGELES
URBAN COUNTY PERMANENT LOCAL HOUSING ALLOCATION GRANT
PROGRAM
Summary:
Los Angeles County (County) was granted funding from the State’s five-year Permanent Local Housing Allocation (PLHA) grant program in 2020. Los Angeles County Development Authority (LACDA) was assigned to facilitate and oversee implementation of funded activities. In accordance with its Urban County Agreement with LACDA, the City of Signal Hill chose to participate in the PLHA program through an option to request local funds for alternate local activities related to implementation of the 6th Cycle Housing Element, as well as in the County’s selected Eviction Defense Program. The City previously submitted for Year One and Year Two PLHA grant funds. Staff is recommending City Council approve the resolution for the Year Three PLHA grant funds.
Recommendation:
Adopt a resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA,
APPROVING YEAR THREE PARTICIPATION IN THE LOS ANGELES URBAN COUNTY
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM BY AUTHORIZING THE MAYOR, OR
HIS/HER DESIGNEE, TO SIGN A REIMBURSABLE CONTRACT WITH THE LOS ANGELES
COUNTY DEVELOPMENT AUTHORITY (LACDA) ACTING ON BEHALF OF THE COUNTY Fiscal Impact:
The City’s Year Three funding request is for the amount of $95,683. If approved by the County, the total PLHA funding the City will have requested to date is $262,645 as broken down below:
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· Year One: $65,482
· Year Two: $101,780
· Year Three: $95,383
These funds will continue to be used for completion of site assessment, remediation of property development constraints, and assistance with property acquisition for housing sites selected to meet the City’s 6th Cycle Regional Housing Needs Assessment (RHNA) allocation of 517 units, and to accelerate the production of affordable housing. These efforts may enhance future opportunities to receive housing-related funding.
Funds will be tracked in the Planning Grants Fund (241) with monies transferred to the General Fund (100) as eligible expenditures are incurred.
Strategic Plan Objective:
Goal No. 5: Ensure an enhanced quality of life for residents of the City.
Background:
State Housing Mandates
Housing policy has been a long-standing priority in California. Over the past half-century, the State Legislature approved numerous measures requiring local governments to adequately plan for housing needs in their communities. Municipalities are also required to prepare and update local General Plans which have mandated elements, including a Housing Element. The Housing Element is the only element of the General Plan required to be certified by the State every eight years. In order to secure State certification, the Housing Element must include a plan to accommodate each municipality’s State-mandated RHNA allocation, which is stratified into the following categories:
· Affordable - very low;
· Affordable - low;
· Moderate; and
· Above moderate.
The State holds cities accountable for production within the eight-year cycle, in addition to having zoning in place to accommodate the allocation. More recently, the State has taken more aggressive policy enforcement positions relative to the Housing Element up to and including reducing or removing land use control authority from local governments.
Loss of Redevelopment Funding
Historically, the City used redevelopment funds to acquire properties, assess site development constraints, and remediate and prepare sites for affordable housing development. The Community Redevelopment Law (Health & Safety Code §33400 et seq.) required cities to set aside 20% of their redevelopment funds to be specifically allocated for the development of affordable housing. The redevelopment program was a significant tool the City used to increase the amount of affordable housing. The City successfully used its share of past redevelopment funding to develop a total of 305 CITY OF SIGNAL HILL Page 2 of 4 Printed on 6/23/2023
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housing. The City successfully used its share of past redevelopment funding to develop a total of 305 affordable units at Sea Breeze Manor, Las Brisas, and Zinnia as well as moderate income housing at East Village and Signal Hill Village. In 2011, the State dissolved redevelopment agencies.
Notwithstanding the dissolution or redevelopment, the State continues to require local governments to meet State-mandated housing goals, including the production of affordable housing.
Adoption of the 6th Cycle Housing Element Update
The City Council adopted the 6th Cycle Housing Element, which the Department of Housing and Community Development certified in 2022. The Housing Element period is from October 15, 2021, to October 15, 2029. The City’s required number of additional housing units stands at 517 total units across all income categories, more than three times the previous allocation. The table below illustrates the percent of units required in each income category.
PLHA Funding Program
In 2020, the State Department of Housing and Community Development initiated the PLHA grant funding program offered under SB2 Building Homes and Jobs Act. The PLHA provides approximately $195 million of funding assistance over a five-year period for eligible housing and homelessness activities. Funds are dependent on the volume of real estate activity and associated recording fees collected. LACDA, on behalf of the County, oversees the Eviction Defense Program and serves as the administrator for alternate local activities.
Signal Hill Year Three Alternate Activities
Year Three alternate activities are intended to demonstrate the City’s commitment to affordable housing by focusing on predevelopment activities for affordable and moderate-income housing, as part of the adoption of the 6th Cycle Housing Element.
PLHA Year Three Eligible Alternate Activities Request
The County will continue to offer the Eviction Defense Program. The City has the option to solely participate in this countywide program or participate in the countywide program and request local funds for alternate local activities.
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Analysis:
Year Three Funding Request
The City’s Year Three funding request builds upon the alternate activities pursued during Year One and Year Two in support of identification of necessary predevelopment activities (Attachment A). The PLHA program is expected to extend beyond the initial five-year term. The City is proposing the following alternate activities for Year Three, including:
· Completing City Notice of Funding Availability (NOFA) activity by selecting a qualified affordable housing developer;
· Assisting with property remediation assessments, actions, and costs; and · Financially assisting with property acquisition negotiations and costs.
If approved by the County, the total PLHA funding the City will receive to date is $262,645. In addition to PLHA funds, staff will continue to pursue additional grant funding to further the City’s efforts to deliver affordable housing.
Reviewed:
_________________________
Sharon del Rosario
Attachments:
A. Grant Application
B. Resolution
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