Report Prepared by: Leah Brown, Management Analyst Development Services and Scott McBride, Director of Development Services
Title
SUBJECT: Approval to Accept and Appropriate Grant Funds from the State of California Department of Housing and Community Development from the Permanent Local Housing Allocation Program in the Amount of $1,324,969
REPORT IN BRIEF
Consider accepting and appropriating grant funds from the State of California Department of Housing and Community Development (HCD) from the Permanent Local Housing Allocation (PLHA) program in the Amount of $1,324,969.
RECOMMENDATION
City Council - Adopt a motion:
A. Accepting PLHA grant funds in the amount of $1,324,969; and,
B. Increasing revenue account 099-1301-324.02-00 in the amount of $1,324,969 and appropriating the same to 099-1301-512.17-00 for expenditures; and,
C. Authorizing the use of pooled cash to cover the appropriation until grant funds are reimbursed; and,
D. Authorizing the Finance Officer to make the necessary budget adjustments; and,
E. Authorizing the City Manager or Deputy City Manager to execute all documents, including any amendments.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to other than recommended by staff, identify specific findings; or,
3. Refer to staff for reconsideration of specific items as requested by Council, or,
4. Continue to a future City Council Meeting (date and time to be specified in Council motion); or,
5. Deny request.
AUTHORITY
Charter of the City of Merced, Sections 200, 405, and 1105.
CITY COUNCIL PRIORITIES
Fiscal Year 2021/2022 Adopted Goals and Priorities, 4. Housing & Homelessness.
DISCUSSION
The Permanent Local Housing Allocation (PLHA) funding is provided pursuant to Senate Bill 2 (SB 2) (Chapter 364, Statutes of 2017). SB 2 established the Fund and authorizes the Department to allocate 70 percent of moneys collected and deposited in the Fund, beginning in calendar year 2019, to local governments for eligible housing and homelessness activities. The intent of the bill is to provide a permanent, on-going source of funding to local governments for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities.
Funding is part of the Building Homes and Jobs Act (SB2). The funding was intended to help cities:
• Increase the supply of housing for households at or below 60% of area median income
• Increase assistance to affordable owner-occupied workforce housing
• Assist persons experiencing or at risk of homelessness
• Facilitate housing affordability, particularly for lower- and moderate-income households
• Promote projects and programs to meet the local government’s unmet share of regional housing needs allocation
• Ensure geographic equity in the distribution of the funds
In December of 2021, City Council adopted a resolution authorizing and adopting the PLHA Plan and a resolution authorizing the submittal of an application to the PLHA program of HCD (See Attachments). The City of Merced is eligible for approximately $3,112,314 over 5 years, 2019 - 2023. This includes $806,250 for 2020 and $518,719 in carry forward from 2019. Ninety-five percent (95%) of the 2019 and 2020 allocations will be used to support a project on Park Avenue proposed by UPHoldings and Self-Help Enterprises. The funds will be used as a gap loan for construction of affordable multifamily housing in the City, which will be operated as affordable housing serving families at 30% Area Median Income (AMI) or below. Five percent (5%) of the granted funds will be used to cover Administrative Expenses
IMPACT ON CITY RESOURCES
No appropriation of funds is needed.
ATTACHMENTS
1. PLHA Plan
2. City Council Resolution 2021-113 - PLHA Plan adoption
3. City Council Resolution 2021-114 - PLHA application
4. Standard Agreement from HCD for PLHA