HomeMy WebLinkAboutItem No. 03 - Resolution Authorizing Submittal of an Application for Permanent Local Housing Allocation Funds
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Consent Calendar
City of San Bernardino
Request for Council Action
Date: April 15, 2020
To: Honorable Mayor and City Council Members
From: Teri Ledoux, City Manager
By:Michael Huntley, Community & Economic Development Director
Subject: Authorize the Submittal of an Application for Permanent Local
Housing Allocation Funds
Recommendation
Adopt Resolution No. 2020-60 of the Mayor and City Council of the City of San
Bernardino, California, authorizing the City Manager or Assistant City M anager to
submit an application for the projects utilizing Permanent Local Housing Allocation
Funds from the California Department of Housing and Community Development.
Background
The California Department of Housing and Community Development (HCD) has
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 and took effect January 1, 2018. It creates a $75 fee on certain
real estate transaction documents when they are recorded, capped at $225 per
transaction. The fee does not apply to sales of residential and commercial properties
but instead to other transactions like mortgage refinancing and county fixture filings.
SB 2 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.
Discussion
Under the PLHA program, HCD is required to allocate 90 percent of the funds based on
the federal Community Development Block Grant (CDBG) formula. The remaining 10
percent is required to be distributed through a competitive grant program for
communities that do not receive CDBG allocations. The current NOFA covers the first
year of the program and the subsequent four annual allocations.
In the first year’s allocation, HCD has allocated $1,622,027 to the City of San
Bernardino. Over the five years covered by the current NOFA, the City of San
Bernardino could receive up to a total of $9,732,162. The City can use five percent of
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its annual allocation for administrative costs, or $81,101 of the first year allocation.
Based on the needs identified in the City’s 5-Year Consolidated Plan, staff proposes to
utilize PLHA fund for the following activities:
1. The development, acquisition rehabilitation, and preservation of rental and
ownership housing.
a) This activity could increase funding the City’s Owner Occupied
Rehabilitation Program; and
b) Fund a new Consolidated Plan program that would make low interest
loans available to owners of multi-family rental housing, in exchange
for preservation of a number of their units as affordable.
2. Homeownership opportunities, including but not limited to, down payment
assistance.
a) This activity could increase funding for the City’s Infill Housing
Ownership Program.
3. Funds to capitalize reserves for services needed in new permanent
supportive housing (such as case management, subst ance abuse
rehabilitation and mental health counseling).
4. Assisting persons who are experiencing or are at risk of homelessness,
including rapid rehousing, rental assistance, operating and capital costs for
navigation services to locate housing and for emergency shelters.
a) This activity would provide additional funding for the City’s Emergency
Solutions Grant (ESG) non-profit sub recipients and the work they
undertake on behalf of the city’s homeless.
The proposed resolution is a state -approved template. Minimal changes have been
made by City staff to ensure the state accepts the application. As a result, the
resolution will not resemble the City’s standard template.
2020-2025 Key Strategic Targets and Goals
Submittal of application for the PLHA program aligns with Key Target No. 1: Financial
Stability, by securing a permanent funding allocation for housing and Key Target No. 3:
Improved Quality of Life, by securing additional funds to reduce the burden of
homelessness through engagement, collaboration, and alignment with other entities
Fiscal Impact
No fiscal impact to the City
Conclusion
Adopt Resolution No. 2020-60 of the Mayor and City Council of the City of San
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Bernardino, California, authorizing the City Manager or Assistant City Manager t o
submit an application for the projects utilizing Permanent Local Housing Allocation
Funds from the California Department of Housing and Community Development.
Attachments
Attachment 1 Resolution 2020-60
Ward: All
Synopsis of Previous Council Actions:
February 19, 2020 Mayor and City Council adopted Resolution No. 2020-37
Authorizing application for, and receipt of, SB 2 Planning Grants
Program funds.
Rev. 3-10-20
RESOLUTION NO. 2020-60
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER OR ASSISTANT
CITY MANAGER TO SUBMIT AN APPLICATION FOR PROJECTS UTILIZING
PERMANENT LOCAL HOUSING ALLOCATION FUNDS FROM THE CALIFORNIA
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
The City Council of the City of San Bernardino (“Applicant”) hereby consents to, adopts,
and ratifies the following resolution:
A. WHEREAS, the State of California (the “State”), Department of Housing and
Community Development (“Department”) is authorized to provide up to $195 million to
Cities and Counties for assistance under the SB 2 Permanent Local Housing Allocation
Program Entitlement Jurisdiction Component from the Building Homes and Jobs Trust
Fund (as described in Health and Safety Code section 50470 et seq. (Chapter 364,
Statutes of 2017 (SB 2));
B. WHEREAS, the Department issued Permanent Local Housing Allocation Final
Guidelines (“PLHA Program Guidelines”) in October 2019;
C. WHEREAS, the Department issued a Notice of Funding Availability (“NOFA”) dated
02/26/2020 under the Permanent Local Housing Allocation (“PLHA”);
D. WHEREAS, Applicant is a City eligible to submit an application for and administer
Permanent Local Housing Allocation Funds; and
E. WHEREAS, the Department may approve funding allocations for the PLHA
Program, subject to the terms and conditions of the PLHA Program Guidelines, NOFA,
Program requirements, the Standard Agreement, and other contracts between the
Department and PLHA grant recipients;
NOW , THEREFORE, BE IT RESOLVED THAT:
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.
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 C of the current NOFA $9,732,162 in accordance with all applicable rules
and laws.
Rev. 3-10-20
3. Applicant hereby agrees to use the PLHA funds only for Eligible Activities as
approved by the Department and in accordance with all Program requirements, PLHA
Program Guidelines, other rules and laws, as well as in a manner consistent and in
compliance with the Standard Agreement, its Application, and other contracts between
the Applicant and the Department.
4. 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.
5. Assistant City Manager Rebekah Kramer or City Manager Teri Ledoux 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.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of San
Bernardino this day of April, 2020 by the following vote:
AYES: ABSTENTIONS: NOES: ABSENT:
APPROVE:
Signature of Approving Officer
John Valdivia, Mayor
CERTIFICATE OF THE ATTESTING OFFICER
The undersigned, Genoveva Rocha does hereby attest and certify that the foregoing
Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of the
City Council of the City of San Bernardino which was duly convened and held on the
date stated thereon, and that said document has not been amended, modified, repealed
or rescinded since its date of adoption and is in full force and effect as of the date hereof.
ATTEST:
Signature of Attesting Officer
Genoveva Rocha, Acting City Clerk