Item No. 6.
| MEETING DATE: August 17, 2020 |
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| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Andrew Ho, Director of Community & Economic Development |
| SUBJECT: | APPROVE A RESOLUTION AUTHORIZING SUBMITTAL OF AN APPLICATION TO THE STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR PERMANENT LOCAL HOUSING ALLOCATION FUNDS AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE APPLICATION AND MAKE ANY SUBSEQUENT AMENDMENTS OR MODIFICATIONS, AS NECESSARY, RELATED TO THE APPLICATION |
RECOMMENDATION:
That the City Council:
A. Authorize the submittal of an application to the State Department of Housing and Community Development for Permanent Local Housing Allocation Funds and authorize the City Manager to execute the application and make any subsequent amendments or modifications, as necessary, related to the application; and
B. APPROVE AND ADOPT RESOLUTION NO. ____ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA AUTHORIZING PROJECTS UTILIZING PERMANENT LOCAL HOUSING ALLOCATION FUNDS.
DISCUSSION:
In 2017 Governor Brown signed a 15-bill housing package aimed at addressing the state’s housing shortage and high housing costs. That legislative effort included the Building Homes and Jobs Act (SB 2, 2017), which established a $75 recording fee on real estate documents to help fund the production of affordable homes in California.
The State Department of Housing and Community Development (HCD) created several new grant programs to disburse the funding collected, including the Permanent Local Housing Allocation (PLHA) program for allocation to Local Governments. Ninety percent of PLHA will be distributed to Entitlement Jurisdictions, based on the 2017 Community Development Block Grant (CDBG) Formula Allocation and ten percent will be disbursed through a competitive process for Non-Entitlement Jurisdictions. La Habra is eligible to apply for the Formula Allocation as an entitlement jurisdiction.
On April 27, 2020, HCD released the Notice of Funding Availability (NOFA) for PLHA funds. Jurisdictions are required to submit an application along with a five-year plan outlining the use of PLHA funds over the five-year period. La Habra’s 2019 allocation is $388,867. Due to fluctuations in the number of recorded real estate documents from year to year, HCD has provided a five-year maximum allocation for each jurisdiction. La Habra’s estimated five-year total funding amount will be up to $2,333,202.
On June 15, 2020, City Council approved Resolution No. 5957 authorizing the City Manager to execute the PLHA application and submit the application, five-year Plan and resolution to HCD. The five-year Plan outlines the collaboration of North Orange County cities and the County of Orange's efforts to provide two new navigation centers for persons experiencing homelessness. The cities of Brea, Buena Park, Cypress, Fullerton, La Habra, La Palma, Los Alamitos, Orange, Placentia, Stanton, Villa Park and Yorba Linda have all agreed to provide at least 50 percent of their PLHA funds to support the construction and continued operations of the two new navigation centers located in Buena Park and Placentia. The navigation centers will providing housing and services for up to six months in an effort to assist persons experiencing homeless to get on a path to permanent housing.
The State Department of Housing and Community Development (HCD) created several new grant programs to disburse the funding collected, including the Permanent Local Housing Allocation (PLHA) program for allocation to Local Governments. Ninety percent of PLHA will be distributed to Entitlement Jurisdictions, based on the 2017 Community Development Block Grant (CDBG) Formula Allocation and ten percent will be disbursed through a competitive process for Non-Entitlement Jurisdictions. La Habra is eligible to apply for the Formula Allocation as an entitlement jurisdiction.
On April 27, 2020, HCD released the Notice of Funding Availability (NOFA) for PLHA funds. Jurisdictions are required to submit an application along with a five-year plan outlining the use of PLHA funds over the five-year period. La Habra’s 2019 allocation is $388,867. Due to fluctuations in the number of recorded real estate documents from year to year, HCD has provided a five-year maximum allocation for each jurisdiction. La Habra’s estimated five-year total funding amount will be up to $2,333,202.
On June 15, 2020, City Council approved Resolution No. 5957 authorizing the City Manager to execute the PLHA application and submit the application, five-year Plan and resolution to HCD. The five-year Plan outlines the collaboration of North Orange County cities and the County of Orange's efforts to provide two new navigation centers for persons experiencing homelessness. The cities of Brea, Buena Park, Cypress, Fullerton, La Habra, La Palma, Los Alamitos, Orange, Placentia, Stanton, Villa Park and Yorba Linda have all agreed to provide at least 50 percent of their PLHA funds to support the construction and continued operations of the two new navigation centers located in Buena Park and Placentia. The navigation centers will providing housing and services for up to six months in an effort to assist persons experiencing homeless to get on a path to permanent housing.
On July 23, 2020, staff submitted the PLHA application, five-year Plan and Resolution to HCD. On July 27, 2020, HCD contacted staff to request updates and re-approval of a new resolution. HCD requested the updates to the resolution include additional information regarding the timeframe for public comments, that no public comments were received, and that City Council authorized, approved and adopted the PLHA five-year Plan. The resolution template that HCD originally released did not include the above information so HCD is providing jurisdictions the opportunity to revise their resolutions to include the newly requested additional information. The revised resolutions are due to HCD no later than August 26, 2020. The revised resolution attached to this agenda report now includes the requested information.
FISCAL IMPACT/SOURCE OF FUNDING:
During the first year of the five-year Plan, La Habra will receive $388,867 in PLHA funds, of which five percent, or $19,443, is available for administrative expenses. Over the five-year term of the Plan, it is estimated that La Habra will receive an allocation not to exceed $2,333,202, of which $116,660 will be available for administrative expenses.
GENERAL PLAN RELEVANCE:
H 1.1 Support State Housing Policy
H 1.4 Variety of Housing
H 3.4 Special Needs Housing
H 3.5 Special Needs of the Homeless
H 1.4 Variety of Housing
H 3.4 Special Needs Housing
H 3.5 Special Needs of the Homeless