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HomeMy WebLinkAboutItem No. 03 - Resolution Authorizing Submittal of an Application for Permanent Local Housing Allocation Funds Page 1 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 6681 Page 2 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 6681 Page 3 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