FROM:
Housing
SUBJECT:
Title
2023 Permanent Local Housing Allocation (PLHA) Award and Revised Plan
End
RECOMMENDATION:
Recommendation
1. Approve the proposed revised Permanent Local Housing Allocation (PLHA) plan;
2. Adopt Resolution No. 2024-109, authorizing the City Manager to submit an application for the projects utilizing Permanent Local Housing Allocation (PLHA) Funds from the California Department of Housing and Community Development (HCD).
3. Authorize the City Manager, or City Manager’s designee, to enter into and transmit any documents necessary or desirable, including but not limited to purchase agreements that may include acquisitions costs up to the full amount of the allocated funds, to ensure the City's timely receipt and execution of Permanent Local Housing Allocation (PLHA) programs;
4. Authorize the City Manager, or City Manager’s designee, to enter into and transmit any documents necessary or desirable, including but not limited to purchase agreements that may include acquisitions costs up to the full amount of the allocated funds, to facilitate the timely administration of the Permanent Local Housing Allocation (PLHA) Acquisition, Rehabilitation, and Rental Program including but not limited to property purchase agreements;
5. Authorize the City Manager, or City Manager’s designee, to award and enter into any construction contracts up to $200,000 to facilitate the timely administration of the Permanent Local Housing Allocation (PLHA) Acquisition, Rehabilitation, and Rental Program.
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COUNCIL GOALS:
• Practice sound fiscal management by producing timely and accurate financial information.
• Practice sound fiscal management by pursing grant opportunities.
• Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by promoting diverse range of housing projects and levels of affordability.
• Concentrate on Inter-governmental relations by pursuing financial participation from county, state and federal governments.
DISCUSSION:
In 2020, the California Department of Housing and Community Development (HCD) released a Notice of Funding Availability (NOFA) of approximately $195 million for the Permanent Local Housing Allocation (PLHA) program. Funding for the NOFA is provided pursuant to Senate Bill 2 (SB 2).
SB 2 was signed into law by Governor Brown on September 29, 2017, established the Building Homes and Jobs Trust Fund in order to allocate 70 percent of the moneys collected and deposited in the Fund, beginning in 2019, to local governments for eligible housing activities. The intent of SB 2 is to provide a permanent source of funding to local governments for housing-related projects and programs that address the unmet housing needs in their communities.
The City of Fontana approved a revised five-year plan on September 28, 2021, and June 13, 2023. In late 2023, HCD announced Formula Allocation Round 4 awards and the City of Fontana was allocated $841,109.00. Total funding received by the City to date is $5,025,379.00.
Since the May 2024 when Council originally approved the 2023 PLHA plan, staff has reevaluated funding needs and has adjusted the plan to include the following activities:
• Acquisition, Rehabilitation, Rental program
• Homelessness Assistance
• Program Administration
The following PLHA activity budgets are identified for the above-mentioned activities for the remaining funding:
|
Project/Activity |
Year 1 Expended |
Year 2 Budget |
Year 3 Budget |
Year 4 Budget |
|
Acquisition/ Rehabilitation for rental-occupied units |
$466,033 |
$1,014,104 |
$956,563 |
$639,243 |
|
Homelessness Assistance |
$466,033 |
$434,616 |
$637,708 |
$159,811 |
|
Administration |
$49,056 |
$76,248 |
$83,909 |
$42,055 |
The PLHA Acquisition, Rehabilitation, and Rental Program is designed to increase the City’s affordable housing stock by purchasing, rehabilitating, and renting single-family properties to income eligible households at or below 80% Area Median Income (AMI). The Housing staff bids on and purchases properties that are available on the market for sale and then rehabilitates them, in order to offer suitable living conditions for low-income families.
In order to have a successful program and to ensure that staff is able to compete with private purchasers, the following processes have been established:
• The Housing Development Manager would be authorized to submit offers on potential properties;
• The Deputy City Manager (for purchases up to $50,000) or the City Manager (for all purchases over $50,000 and up to the full amount of allocated funds) would be authorized to finalize any contractual and/or escrow documents in order to purchase the properties;
• Only the City Manager would be authorized to sign the Certificate of Acceptance that is attached to the Grant Deed to complete the acquisition.
Lastly, if a property that is purchased through the PLHA Acquisition, Rehabilitation, and Rental Program requires any rehabilitation to bring it up to suitable living conditions, Housing staff would create and bid out the necessary items to satisfy any necessary codes and/or regulations. Authorizing the City Manager, or their designee, to award and enter into construction contracts up to $200,000 would facilitate the timely administration of the program and provide homes to income-eligible families expediently.
The PLHA Homelessness Assistance program will fund street outreach, case management, support services, and the renovation of a navigation center to serve homeless individuals and families within the City of Fontana.
Notice of availability of the revised plan and invitation to comment was published in the Press Enterprise, the San Bernardino Sun and El Chicano newspapers on September 5, 2024.
FISCAL IMPACT:
Expenditure and revenue budgets for the State Permanent Local Housing Allocation (PLHA) were already included in the FY2024-25 budget. Funds were appropriated to the following: Projects: 30200008-295 & 30200009-295.
MOTION:
Approve Staff Recommendation.