DRAFT 10/5/2022 ____
T-CDD-220086/64586 1
Council Agenda:
Item No.:
RESOLUTION NO. ______
A RESOLUTION OF THE COUNCIL OF THE CIT Y OF
SUNNYVALE AUTHORIZING THE APPLICATION AND
ADOP
TING A PLAN FOR THE STATE OF CALIFORNIA
DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT PERMANENT LOCAL HOUSING
ALLOCATION
(PLHA) PROGRAM, AND AUTHORIZING
THE CITY MANAGER TO EXECUTE DOCUMENTS
RELATED TO THE PLHA PROGRAM AND GRANT
WHEREAS, the State of California (the “State”). Department of Housing and Community Development (“HCD”) is authorized to provide up to $335 million under the SB 2 Permanent Local Housing Allocation (“PLHA”) Program Formula Component form 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(SB2); and WHEREAS, HCD issued a Notice of Funding Availability (“NOFA”) dated August 17, 2022 under the PLHA Program; and
WHEREAS, the City of Sunnyvale (“City”) is an eligible Local government who applied for program funds to administer one or more eligible activities; and WHEREAS, HCD may approve funding allocations for PLHA Program, subject to the terms and conditions of the PLHA Final Guidelines (“Guidelines”), NOFA, Program requirements, the Standard Agreement, and other contracts between HCD and PLHA grant recipients;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SUNNYVALE THAT:
1. The City 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 the City may have with HCD.
2. The City 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 C of the current NOFA $3,198,138.00 in accordance with all applicable rules and laws.
3. The City hereby agrees to use the PLHA funds for eligible activities as approved by HCD 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 City and HCD.
Attachment 2
DRAFT 10/5/2022 ____
T-CDD-220086/64586 2
Council Agenda:
Item No.:
4. Pursuant to Section 302(c)(4) of the Guidelines, the City’s PLHA Plan for the 2019-2023 Allocations is attached as Exhibit A to this resolution, and the City hereby adopts this PLHA Plan and certifies compliance with all public notice, public comment, and public hearing requirements in accordance with the Guidelines.
5. The City certifies that it has or will subgrant some or all of its PLHA funds to another entity or entities. Pursuant to Guidelines Section 302(c)(3), “entity” means a housing develo
per or program operator, but does not mean an administering Local government to whom a local government may delegate its PLHA allocation.
6. The City certifies that its selection process of these subgrantees was or will be accessible to the public and avoided or shall avoid any conflicts of interest.
7. Pursuant to the City’s certification in this resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements
8. The City certifies that, if funds are used for the acquisition, construction or rehabilitation of for-sale housing projects or units within for-sale housing projects, the grantee shall record a deed restriction against the property that will ensure compli ance with one of the requirements stated in Guidelines Section 302(c)(6)(A),(B), and (C).
9. The City certifies that, if funds are used for the development of an Affordable Rental Housing Development, the City shall make PLHA assistance in the form of a low- interest, deferred loan to the Sponsor of the Project, and such loan shall be evidenced through a Promissory Note secured by a Deed of Trust and a Regulatory Agreement shall
restrict occupancy and rents in accordance with a City-approved underwriting of the Project for a term of at least 55 years.
10. The City 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 HCD.
11. The City Manager or designee is 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 Pro
gram or the PLHA grant awarded to the City, as the HCD may deem appropriate.
Attachment 2
T-CDD-220086/64586 3
Council Agenda:
Item No.:
Adopted by the City Council at a regular meeting held on ___________, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
RECUSAL:
ATTEST: APPROVED:
__________________________________ _________________________________ City Clerk Mayor
(SEAL)
APPROVED AS TO FORM:
___________________________________
City Attorney
Attachment 2
§302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government’s Housing Element.
The City's 2015-2023 Housing Element (and Draft 2023-2031 Housing Element) highlights the need for each of these programs:
1. The development, predevelopment, or rehabilitation of affordable rental housing aligns with Program 3: Affordable Housing Development Assistance. The City will use PLHA funds (along with other local sources) to support the development affordable housing.
2. Operating assistance for emergency youth shelters aligns with Program 24: Programs to Address Homelessness. This program will provide supportive services in the form of operating support for the Bill Wilson Center's Safety Net Shelter, allowing the emergency shelter to continue to serve youth who are experiencing homelessness.
3. Rental assistance for seniors at-risk of homelessness also aligns with Program 24: Programs to Address Homelessness. This program will target seniors who are at-risk of homelessness (extremely low-income) or currently experiencing homelessness. Rental assistance will help seniors who are currently experiencing homelessness to obtain housing and help seniors who are at-risk of homelessness to retain their housing, so they do not fall into homelessness.
4. Accessibility modifications for lower-income senior households aligns with Program 5: Home Improvement Program and Program 23: Accessible Housing. This program will provide funding for minor accessibility improvements to help lower-income senior households stay in their current homes and improve accessibility for seniors with disabilities. §302(c)(4) Plan Rev. 2/16/22
§302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.
The City of Sunnyvale will use the allocated funds for four eligible activities:
1. The development, predevelopment, and/or rehabilitation of a multifamily rental housing project that will serve extremely low-, very low-, and low-income households. The City will use PLHA funds to support development, predevelopment, and/or rehabilitation costs for two affordable rental housing developments that are estimated to serve 306 lower-income households;
2. Assisting persons who are experiencing or At risk of homelessness by supporting operating costs for emergency shelters. The City will use PLHA funds to support operating costs for the Bill Wilson Center's Safety Net Shelter, an emergency shelter for children experiencing homelessness;
3. Assisting persons who are experiencing or At risk of homelessness by providing rental assistance for seniors who are experiencing or at risk of homelessness. The City will use PLHA funds to launch a new program providing rental assistance to seniors (age 55 and older) who are experiencing homelessness or considered at-risk of homelessness;
4. Accessibility modifications for lower-income owner-occupied housing. The City will use PLHA funds to expand the existing Home Access Grant program, which provides accessibility modifications for lower-income households. PLHA funds will be used to target these repairs to lower-income seniors who own their homes.
The City will use up to 5% of allocated funds for administrative costs associated with the activities above. §302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income (AMI).
The City will use PLHA funding to increase the supply of housing for households with incomes at or below 60% AMI in the following ways:
1.PLHA funds will be used to support two of four projects that have recently been awarded funding through the City's 2022 Notice of Funding Availability (NOFA) for housing development projects. The City's NOFA scoring process prioritized projects that included a higher percentage of units that are affordable to extremely lo w-income households. Based on the awarded projects, it is estimated that the 2019 PLHA funds will assist in the creation or rehabilitation of 114 extremely low-income units and 132 very low-income units.
2. The City will use PLHA funds to begin a new rental assistance program that will exclusively serve extremely low-income senior households. This rental assistance program will help extremely low- income senior households retain and obtain housing for a term of 12 months (with the potential for annual renewal) and help ensure housing stability for this special needs population. This program is estimated to assist 33 extremely low-income households annually.
3. PLHA funds will be used to provide operating support for an emergency shelter for youth (ages 12-17) who are currently experiencing homelessness. The shelter serves an estimated 200 youth per year.
City of Sunnyvale
Permanent Local Housing Allocation (PLHA) Application
DRAFT Five-Year Expenditure Plan
DRAFT Five-Year PLHA Expenditure Plan Page 1 of 5
Exhibit A Exhibit A
Attachment 2
Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301)) §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. §302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for each proposed Affordable Rental Housing Activity.
Allocated funds will be used to support development, predevelopment, or rehabilitation costs for two affordable multifamily rental housing projects that have been awarded in the City's 2022 Notice of Funding Availability (NOFA). As part of the City's 2022 NOFA, City staff has recommended awarding four housing development projects with funding assistance. The City will use PLHA funding to support two of these projects. Each project is 100% affordable to lower-income households (excluding manager's units) and will be deed-restricted for a minimum of 55 years. The City will select projects that will enter into a loan agreement with the City prior to expenditure deadlines for Allocation Years 2019 and 2020. Based on staff recommendations, the City estimates that PLHA funding for this program will serve 306 lower-income households. The City will use a maximum of 5% of funds allocated to this activity for staff administrative costs.
Complete the table below for each proposed Affordable Rental Housing Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting).
Funding Allocation Year
2019 2019 2019 2020 2020 2020
§302(c)(4)(E)(i) Percentage of
Funds Allocated for the Proposed
Affordable Rental Housing
Activity
94.0% 0.0% 0.0% 60.0% 0.0% 0.0%
§302(c)(4)(E)(ii) Area Median
Income Level Served 30% 50% 80% 30% 50% 80% TOTAL
§302(c)(4)(E)(ii) Unmet share of
the RHNA at the AMI Level
Note: complete for years 2019,
2020, 2021 only
763 763 845 754 754 845 4724
§302(c)(4)(E)(ii) Projected
Number of Households Served 57 66 30 57 66 30 306
§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 55 Years 55 Years 55 Years §302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.
In Fall 2022, City Council will approve NOFA funding awards. City Staff will work with developers to determine the two projects that will be most appropriate for PLHA funding and allow the City to meet expenditure deadlines. The City will enter into loan agreements with the developers by the end of years 2023 and 2024. Following execution of each loan agreement, PLHA funds will be disbursed and work will commence on the respective projects. The City expects the development projects to complete construction by the end of 2025 and 2027 respectively. 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years
DRAFT Five-Year PLHA Expenditure Plan Page 2 of 5
Attachment 2
§301(a)(6) Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
§302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for the proposed Activity.
The City will fund two separate programs for this proposed activity:
1. The City will use allocated funds to provide operating support for an emergency shelter for teenagers and youth who are experiencing homelessness. The City will provide operating support funds in the amount of $48,500 for Bill Wilson Center’s Safety Net Shelter (SNS), which currently serves approximately 200 children (ages 12 to 17) each year, including children from Sunnyvale. SNS has experienced rising operational costs and must increasing costs associated with facility maintenance. PLHA funds will allow SNS to maintain operations, while completing needed repairs and meeting existing debt obligations.
2. The City will use allocated funds to provide rental assistance for seniors who are at-risk of homelessness. This new program will target seniors who are experiencing homelessness and extremely low- income seniors who are at-risk of losing their housing. Senior households (age 55 and up) who meet income certification requirments will be provided rental assistance in the amount of $1,000 per month (payable to property owner). Additional rental assistance will be provided for security deposits, as necessary. The minimum term of assistance will be 12 months and qualifying households will be eligible for renewal on an annual basis. The City estimates that this program will serve 33 extremely low-income households annually.
The City will use a maximum of 5% of funds allocated to these activities for staff administration costs. These funds will be used to supplement an additional full-time staff member to administer the new senior rental assistance program or to support operating by a qualified non-profit agency in Sunnyvale or Santa Clara County if additional staffing cannot be obtained.
Complete the table below for each proposed Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting).
Funding Allocation Year
2019 2020 2020 2021 2022 2023
Type of Activity for Persons
Experiencing or At Risk of
Homelessness
Emergency
Shelter
Operating
Emergenc
y Shelter
Operating
Rental
Assistanc
e (term of
six
months)
Rental
Assistanc
e (term of
six
months)
Rental
Assistanc
e (term of
six
months)
Rental
Assistanc
e (term of
six
months)
§302(c)(4)(E)(i) Percentage of
Funds Allocated for the Proposed
Activity
1.00% 5.00% 22.00% 85.00% 85.00% 85.00%
§302(c)(4)(E)(ii) Area Median
Income Level Served 30% 30% 30% 30% 30% 30% TOTAL
§302(c)(4)(E)(ii) Unmet share of
the RHNA at AMI Level
Note: complete for years 2019,
2020, 2021 only
763 754 754 714 2985
§302(c)(4)(E)(ii) Projected
Number of Households Served 200 200 33 33 33 33 532
DRAFT Five-Year PLHA Expenditure Plan Page 3 of 5
Attachment 2
§302(c)(4)(E)(iv) Period of
Affordability for the Proposed
Activity (55 years required for
rental housing projects)
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.
1. Upon disbursement of PLHA funding, the City will enter into a funding agreement with Bill Wilson Center for operating support for the Safety Net Shelter.
2. Senior Rental Assistance: Beginning in January 2023, the City will scope and prepare the senior rental assistance program by reaching out to current contacts at the Sunnyvale Nightly Shelter and Sunnyvale Senior Center. In July 2023, the City will begin recruiting an additional full time staff member to oversee the program or select a qualified non-profit agency to administer the program. The City currently works with an outside agency to administer the Tenant Based Rental Assistance (TBRA) Program. The City will use the TBRA program's existing procedures, income verification forms, and other documentation and adapt them to the new senior rental assistance program. No later than January 2024, the City will begin using PLHA funds for rental assistance. Households that receive rental assistance will be monitored annually to verify household information and to determine eligibility for annual renewal. §301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing. §302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for the proposed Activity. Enter Percentage of Funds Allocated for 10% The City will use allocated funds to complete accessibility modifications in lower-income senior households as part of the City's existing Home Access Grant program. The Home Access Grant program provides grants of up to $6,500 for seniors and/or disabled lower-income homeowners. Funds will be used to provide home accessibility repairs and installation of items such as grab bars, handrails, wheelchair lifts, and ramps. The City estimates that this program will serve 12 lower-income households per year. The City will use a maximum of 5% of funds allocated to this activity for staff administrative costs.
Complete the table below for each proposed Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please Funding Allocation Year
2020 2021 2022 2023
§302(c)(4)(E)(i) Percentage of
Funds Allocated for the Proposed
Activity
8.00% 10.00% 10.00% 10.00%
§302(c)(4)(E)(ii) Area Median
Income Level Served 80% 80% 80% 80% TOTAL
§302(c)(4)(E)(ii) Unmet share of
the RHNA at AMI Level
Note: complete for years 2019,
2020, 2021 only
845 795 1640
§302(c)(4)(E)(ii) Projected
Number of Households Served 12 12 12 12 48
§302(c)(4)(E)(iv) Period of
Affordability for the Proposed
Activity
DRAFT Five-Year PLHA Expenditure Plan Page 4 of 5
Attachment 2
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.
The City will use PLHA funds to augment the existing Home Access Grant program. The Home Access Grant is currently managed by the City's Senior Housing Rehab Specialist, who reviews applications, performs in-home assessments, works with homeowners to facilitate the repair process, and conducts community outreach for the program. Beginning in 2023, PLHA funds will be used to expand the current program to increase total households served.
DRAFT Five-Year PLHA Expenditure Plan Page 5 of 5
Attachment 2