FROM:
Housing
SUBJECT:
Title
Permanent Local Housing Allocation (PLHA) Year 5 Allocation Acceptance and Application
End
RECOMMENDATION:
Recommendation
1. Accept the State of California Permanent Local Housing Allocation (PLHA) Year 5 Funds in the amount of $644,681;
2. Authorize the City Manager, or City Manager’s designee, to execute and transmit any documents necessary or desirable to ensure the City's timely receipt and execution of Permanent Local Housing Allocation (PLHA) programs;
3. Authorize the City Manager, or City Manager’s designee, to execute 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;
4. Authorize the City Manager, or City Manager’s designee, to award and execute any construction contracts up to $200,000 to facilitate the timely administration of the Permanent Local Housing Allocation (PLHA) Acquisition, Rehabilitation, and Rental Program.
End
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.
• Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by address Homelessness through proactive programs, including the efforts of the COAST and MET teams.
• 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 2024, HCD announced Formula Allocation Round 5 awards and the City of Fontana was allocated $644,681.00. This final revision to the five-year plan will include the following activities:
• Acquisition, Rehabilitation, Rental program
• Homelessness Assistance
• Program Administration
The following PLHA activity budgets are identified for the above-mentioned activities:
|
Project/Activity |
Percentage |
Budget |
|
Acquisition/Rehab/Rental |
10% |
$ 61,244.70 |
|
Homelessness Assistance |
85% |
$551,202.26 |
|
Administration |
5% |
$ 32,234.05 |
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 process has been established:
• The Housing Development Manager would be authorized to submit offers with any necessary related documents 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 execute construction contracts up to $200,000 would facilitate the timely administration of the program and provide homes to income-eligible families expediently.
FISCAL IMPACT:
The fiscal impact associated with the approval of this item is $644,681 of State Permanent Local Housing Allocation (PLHA) and is not included in the 2024-25 budget. It will be submitted in the next quarterly budget report and will be appropriated to the following Fund 295 projects: 30200008-295 & 30200009-295.
MOTION:
Approve Staff Recommendation.