PermanentLocalHousingCCmtg11-18-24(klk)
CITY OF SIMI VALLEY
MEMORANDUM
N
ovember 18, 2024
T
O: City Council
F
ROM: Department of Environmental Services
S
UBJECT: ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER
TO EXECUTE ASSOCIATED DOCUMENTS FOR PERMANENT LOCAL
HOUSING ALLOCATION (PLHA) FOR NOTICE OF FUNDING
AVAILABILITY (NOFA) YEAR 2024 GRANT FUNDS, AND APPROVAL OF
A SUPPLEMENTAL BUDGET REQUEST TO ESTABLISH BUDGET
AUTHORITY FOR NOFA YEAR 2024 GRANT FUNDS
STAFF RECOMMENDATION
I
t is recommended that the City Council:
1. Adop
t Resolution No. 2024-49 (page 4) authorizing the City Manager to execute associated documents related to the streamlined application for PLHA NOFA Year 2024;
2. Approve a Supplemental Budget Request to establish budget authority for NOFA Year 2024.
BACKGROUND AND OVERVIEW
T
he State of California’s Senate Bill 2 (SB 2) passed in 2017, is part of a housing package aimed at addressing the state’s housing shortage and high housing costs.
Specifically, SB 2 established a permanent funding source to increase California's affordable housing stock . PLHA entitlements are specifically funded through the Building Homes and Jobs Act of SB 2, which established a $75 recording fee on real estate documents. Revenues are expected to fluctuate annually based on the real estate market’s activity.
P
LHA provides financial assistance to local governments to help implement plans to facilitate housing affordability , particularly for lower -income households , assisting persons experiencing, or at risk of homelessness, and increase assistance to affordable owner-occupied workforce housing. The City’s PLHA funds are designated for support of the City’s Homebuyer’s Assistance Program to provide households, earning up to 150% of the Area Median Income, with equity share loans up to 20% of the purchase price for a home of their choosing.
AGENDA ITEM NO.
Consent (13)
PermanentLocalHousingCCmtg11-18-24(klk)
FINDINGS AND ALTERNATIVES
In October 2022, the City Council adopted Resolution No. 2022-56 approving a five-year PLHA p lan (Plan) amendment dedicating PLHA funds to provide down payment assistance and adopted Resolution No. 2022- 57 approving the City’s Homebuyer Assistance Program. To date, the City has received funding for NOFA Year 2020 and has submitted the Request for Funds (RFF) for NOFA Years 2021, 2022, and 2023, as summarized in Table 1 below. The allocations for NOFA Year 2024 were released on October 15, 2024, $190,789 was allocated to the City of Simi Valley.
Table 1 – Summary of PLHA Plan for the 2019-2024 Allocations by NOFA Year
NOFA Year Allocation Amount Status Budget Authority
2020 $290,357 Received Yes
2021 $451,305 RFF Submitted Yes
2022 $496,647 RFF Submitted Yes
2023 $254,876 RFF Submitted Yes
2024 $190,789 Application Pending Requested
The amount of funding allocated during each NOFA is determined by the prior calendar year’s real estate transactions by county. T he City’s total allocation over the Plan’s five- year period ( NOFA Years 2020- 2024) is $1,683,974. Due to the current market conditions, inclusive of high prices and high interest rates, the NOFA Year 2024 allocation reflects a reduction in real estate activity and the lowest allocation amount to date. Upon receiving funds for the 2024 NOFA, the City’s five -year Plan period will be complete.
During the 2025 NOFA cycle, the City Council will be presented with a new five-year Plan with identified activities for that Plan’s expenditures.
Currently, all PLHA funding is allocated to the Homebuyers Assistance Program . This includes utilizing the maximum of five (5%) percent of the annual grant amount to offset the City’s administrative costs. While the Homebuyer ’s Assistance Program was launched in April 2024, no assistance has been provided to homebuyers yet. This is likely due to the combination of prices and interest rates; however, it is anticipated that recent decreases in mortgage rates will stimulate additional interest from eligible homebuyers.
Staff has, and will continue to, actively promote the Program. The City's website includes an application and Frequently Asked Questions for households interested in receiving assistance. Additional outreach efforts including flyers, email notifications, workshops , social media, and presentations are also being used to promote the P rogram. All funds are expected to be spent as soon as eligible applications are submitted and approved by the City.
The Supplemental Budget Request establishing budget authority in Fund 208 for the receipt of the NOFA Year 2024 revenues and expenditures (including City’s administrative costs) is detailed in the Table 2 below.
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Table 2 – Supplemental Budget Request
T
he following alternatives are available to the City Council:
1. A
dopt Resolution No. 2024-49 authorizing the City Manager to execute documents associated with the 2024 NOFA streamlined application;
2. A
pprove a Supplemental Budget Request in Fund 208 to establish budget authority for NOFA Year 2024 allocation;
3. P
rovide alternate direction.
S
taff recommends Alternative Nos. 1 and 2.
SUGGESTED CITY COUNCIL MOTION
I mo
ve to adopt Resolution No. 2024-49 and approve a Supplemental Budget Request in the amount of $190,789 in Fund 208 (PLHA Fund) to establish budget authority for the NOFA Year 2024 allocation.
SUMMARY
SB
2 provides funding for the Permanent Local Housing Allocation ( PLHA), which is an annual allocation that provides financial assistance to local governments to help implement plans to facilitate housing affordability, particularly for low-income to moderate- income households . I t is recommended that the City Council adopt a resolution authorizing the City Manager to execute associated documents for the 2024 NOFA streamlined application and approve a Supplemental Budget Request to establish budget authority for the NOFA Year 2024 allocation.
___
_______________________
Stratis Perros
Environmental Services Director
Prepared by: Daniel Franco, Management Analyst
INDEX Page
Re
solution No. 2024-49………………………………………………………………..4
Attachment A – 2024 NOFA Streamlined Application……………………………...6 Account Amount
2089306-36002 $190,789
2089306-44120 $181,250
2089306-41861 $9,539
1003005-41860 $9,539
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RESOLUTION NO. 2024-49
A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SIMI VALLEY APPROVING THE 2024 NOTICE OF
FUNDING AVAILABILITY STREAMLINED APPLICATION
AND AUTHORIZING THE CITY MANAGER TO EXECUTE
ASSOCIATED DOCUMENTS
W
HEREAS, the State of California Department of Housing and Community Development (Department) is authorized to provide up to $296 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assistance to Cities and Counties (as described in Health and Safety Code section 50470 et seq.(Chapter 364, Statutes of 2017 (SB 2)); and W
HEREAS the Department issued a Notice of Funding Availability (NOFA) dated December 29, 2023, and amended on October 15, 2024 , under the Permanent Local Housing Allocation (PLHA) Program; and
W
HEREAS, the City of Simi Valley (Applican t) is either an eligible Local government which has applied for program funds to administer one or more eligible activities or a Local or Regional Housing Trust Fund to whom an eligible Local government delegated its PLHA formula allocation; and
W
HEREAS, the Department may approve funding allocations for the PLHA Program, subject to the terms and conditions of the Guidelines, NOFA, Program requirements, the Standard Agreement and other contracts between the Department and PLHA grant recipients; and
W
HEREAS, pursuant to Section 302(c)(4) of the Guidelines, Applicant’s current PLHA Plan for the 2019- 2023 allocations was adopted on October 24, 2022, by Resolution 2022- 56 and complied with all public notice, public comment, and public hearing requirements in accordance with the Guidelines.
NO
W, THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI VALLEY DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. If Applicant receives a grant of PLHA funds from the Department, pursuant to the above referenced PLHA NOFA, it represents and certifies that it will use all such funds in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including without limitation all rules and laws regarding the PLHA Program, as well as any and all contracts Applicant may have with the Department.
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SECTION 2. Applicant is hereby authorized and directed to receive a PLHA grant, in an amount not to exceed the five-year estimate of the PLHA formula allocations, as stated in Appendix B of the current NOFA in the amount of $1,742,142 in accordance with all applicable rules and laws.
SECTION 3. Applicant hereby agrees to use the PLHA funds for eligible activities as approved by the Department and in accordance with all Program requirements, Guidelines, other rules and laws, as well as in a manner consistent and in compliance with the Standard Agreement and other contracts between the Applicant and the Department.
SECTION 4. Pursuant to Applicant’s certification in this resolution, the PLHA funds will be expended only for eligible a ctivities and consistent with all program requirements.
SECTION 5. Applicant shall be subject to the terms and conditions as specified in the Standard Agreement, the PLHA Program Guidelines and any other applicable SB 2 Guidelines published by the Department.
SECTION 6. The City Manager and/or his/her designees are authorized to execute the PLHA Program Application, the PLHA Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the PLHA grant awarded to Applicant, as the Department may deem appropriate.
SECTION 7. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.
PASSED and ADOPTED this 18th day of November 2024.
Attest:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
Approved as to Form: Approved as to Content:
Algeria R. Ford, City Attorney Samantha C. Argabrite, City Manager
Stratis Perros
Environmental Services Director
5 RES. NO. 2024-49
Yes
Yes
Yes
End of Document
***Please note the following changes were made in the Amended NOFA*** All Applicants requesting funds must submit a plan amendment with this application if 40% of each allocation being requested is NOT already allocated to an ownership activity. All Applicants requesting an amendment to the 5-Year Plan with this application must redirect 40% of each allocation towards a homeownership Activity. Ownership activities are 2,3,4,7,8,9 (activities 2,3,4, & 8 will only count as ownership if the funds will go towards ownership sub activities as opposed to rental housing sub activities including ADU's)
n/a
Simi Valley
2021 PLHA Formula Allocation Amount: n/a
§300(a) and (b) Eligible Applicants for the Entitlement and Non-Entitlement formula component described in Section §100(b)(1) and (2) are limited to the metropolitan cities and urban counties allocated a grant for the federal fiscal year 2017 pursuant to the federal CDBG formula specified in 42 USC, Section §5306 and Non-entitlement local governments.
Applicant: City of Simi Valley
Which Allocation(s) are you applying for with this application? 2023 Only n/a
n/a
$190,789
Allowable Local Admin (5%):
Allowable Local Admin (5%):
Allowable Local Admin (5%):
Admin requested?
Eligible Applicant Type:
Entitlement
Local Government Recipient of PLHA Formula Allocation:
Admin requested?
Admin requested?2023 PLHA Formula Allocation Amount: $9,539 2022 PLHA Formula Allocation Amount:
§302(c)(5) Is the applicant submitting a plan amendment with this application? (If you wish to or are required to reallocate more than 10 percent of funds among Activities from the previously approved 5-Year Plan included in the PLHA program Standard Agreement, Exhibit E you must submit an updated plan and resolution approving the new plan) 40% of each allocation being changed must go towards an ownership activity.
Yes
CA
[email protected]
Samantha Argabrite
City:
Address:
County:
Instructions: If the Local Government Recipient of the PLHA Formula Allocation delegated its PLHA formula allocation to another Local Government in any prior round, the Applicant (for which information is required below) continues to be the administering Local Government, which received the award. The PLHA award will be made to the Applicant (upon meeting threshold requirements) and the Applicant is responsible for meeting all program requirements throughout the term of the Standard Agreement. §300 Eligible Applicants
2929 Tapo Canyon Road
§503(b) Applicant certifies that they are in compliance with the State Grants Management Section and are current with any required PLHA Annual Reporting Requirements. Yes
Zip Code:
2929 Tapo Canyon RoadAddress:
Mara Malch
CA
City: 93063
Yes
§302(a) Housing Element compliance: Applicant and Delegating Local Government's if applicable Housing Element was adopted by the Local Government’s governing body by the application submittal date and subsequently determined to be in substantial compliance with state Housing Element Law pursuant to Government Code Section 65585.
Simi Valley
Yes
Contact Name:
Address:
Local Government Formula Allocation for Returning Applicants Rev. 10/10/24 This streamlined application form is limited to Applicants who applied for and received an award under one or more of the previous Formula Allocation NOFA's (2020, 2021, 2022, or 2023).
Yes
If a reallocation of more than 10 percent of funds was made (and Applicant is amending their plan with this application) Applicant has attached an amended Plan and resolution that has been discussed and approved at a publicly-noticed meeting of the governing body.
CA Zip: 93063 VenturaState:
§302(c)(2) Applicant certifies that submission of the application was authorized by the governing board of the Applicant. §302 Threshold Requirements
Title:
93063
§302(b) Applicant or Delegating Local Government has submitted the Annual Progress Report(s) to the Department of Housing and Community Development pursuant to Government Code Section 65400 for the allocations being requested. Yes Did Applicant receive an award under one or more of the previous NOFA's? (2020, 2021, 2022 or 2023) Title: Deputy ES Director
State:
Contact Email:
City Manager
2929 Tapo Canyon Road
805-583-6758
Date
Certifications
Samantha Argabrite
Authorized Representative Printed Name
City Manager
Title
On behalf of the entity identified below, I certify that: The information, statements and attachments included in this application are, to the best of my knowledge and belief, true and correct and I possess the legal authority to submit this application on behalf of the entity identified in the signature block.
Signature
§302(c)(8) If a program income reuse plan was not submitted with the 2020 application, has Applicant attached a program income reuse plan describing how repaid loans and/or accrued interest will be reused for eligible activities specified in Section 301? File Name: Application and Plan Adoption
Reso
Simi Valley
[email protected] Rep. Email: Phone:
Yes
File Name: Reuse Plan Program Income Reuse Plan describing how repaid loans or accrued interest will be used for eligible activities in Section 301. Uploaded to HCD? Auth Rep Name:
Yes
Yes
§302(c)(4)(D) Evidence that the Plan was authorized and adopted by resolution by the Local jurisdiction and that the public had an adequate opportunity to review and comment on its content.
PLHA webpage for Application and Plan Adoption Resolution Document Uploaded to HCD?
Contact Phone:
Simi Valley City:
Yes
Zip Code:
805-583-6707
State:
PLHA Page 1 Formula Allocation Application
ATTACHMENT A
6