MEETING DATE:
February 27, 2024
SUBJECT:
Title
RESOLUTION NOS. 2024-9266 & 2024-9267 - AUTHORIZING THE APPLICATION FOR PERMANENT LOCAL HOUSING ALLOCATION (PLHA) FUNDS, ADOPTING THE PLAN FOR THE PLHA PROGRAM, AUTHORIZING THE ESTABLISHMENT OF A NEW FUND, AND AMENDING THE CITY’S ADOPTED ANNUAL OPERATIONS AND CAPITAL IMPROVEMENT BUDGET AS NEEDED
Body
Recommendation
Recommendation
ADOPT the following resolutions:
1. Resolution No. 2024-9266 authorizing the City Manager or designee(s) to execute on behalf of the City of San Marcos all documents including, but not limited to, applications, agreements, amendments, and requests for payment(s), necessary to secure Permanent Local Housing Allocation (PLHA) funds and adopting the PLHA Plan.
2. Resolution No. 2024-9267 authorizing the establishment of a new fund and amending the City's adopted Annual Operations and Capital Improvement Budget as needed.
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Planning for the Future
Executive Summary
The California Department of Housing and Community Development (HCD) recently announced the Permanent Local Housing Allocation (PLHA) program for 2020-2023. The PLHA program is funded with moneys deposited in the Building Homes and Jobs Trust Fund (Fund) established from Senate Bill 2 (SB 2) which authorized a recording fee on real estate documents beginning in 2019 to provide funding to local governments for housing-related projects and programs that assist in addressing the unmet housing needs of local communities. The City of San Marcos ("City") has been allocated a grant amount not to exceed a five-year estimate of $1,915,068.
Jurisdictions receiving PLHA grant funds are required to have a five (5) year plan in place to determine how those grant funds will be spent. This five-year plan does not necessarily need to identify specific projects to qualify; however, the plan must result in expenditure of a portion of the grant funds each year to receive the following year's allocation. This item is being presented to the City Council for action to approve resolutions that: 1) authorizes the City Manager and/or designee(s) to execute on behalf of the City, all documents including, but not limited to, applications, agreements, amendments, and requests for payment(s) necessary for the PLHA funds and execution of the PLHA Plan and adopts the PLHA Plan for the City of San Marcos, and 2) authorizes the establishment of a new fund, and amends the City’s adopted Annual Operations and Capital Improvement Budget if and as needed.
Discussion
The draft PLHA Plan presented for Council consideration (Attachment A) identifies that the PLHA funds would be utilized to support and create affordable housing to address the community’s housing needs. The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to Extremely low, Very low-, Low-, or Moderate-income households, including necessary operating subsidies, is an eligible expense, per PLHA guidelines. Relocation expenses are not an eligible expense under this program activity.
The City will prioritize investments that assist in public-private partnerships, increase the supply of housing for households at or below 60% of area median income, are successful in a competitive application process, and/or are identified on the City’s long-range property management plan.
The proposed plan’s use of PLHA funds is consistent with the City's Adopted 2021 - 2029 Certified Housing Element.
Program 5: Facilitate Affordable and Special Needs Housing Construction
• The City will continue to encourage qualified housing developers to pursue development of affordable housing and housing that addresses populations with special housing needs in the City and utilize the following funding and regulatory incentives, among others, to encourage affordable housing production in San Marcos.
• The City will evaluate the opportunity to prioritize the use of other funding sources, such as funds made available through the Permanent Local Housing Allocation (PLHA) or former redevelopment housing funds, as a local source of funding for affordable housing.
In order to apply for the PLHA funds, the City must first adopt the PLHA Plan, which is being presented at this time. Then the City may proceed with submitting the PLHA funding application that is due no later than February 29, 2024.
Public Comment Period:
The City published the draft plan for a 10-day public review period from February 15, 2024 to
February 25, 2024 at <https://www.san-marcos.net/departments/neighborhood-programs/housing-programs/housing-resources>. Other methods of soliciting public comment
included the following:
• Publishing a public notice in the Union-Tribune on February 15, 2024
• Posted notice in the City’s Display Case
Comments received during the public comment period, or presented at the Public Hearing on February 27, 2024 at 6:00 p.m., will be incorporated into the final plan.
Funding Estimates:
The chart below summarizes the actual amounts allocated to the City of San Marcos for the program’s calendar years 2020, 2021, and 2022. The five-year total allocation is a projection, and the actual annual funding allocation for the five-year plan will later be determined by HCD. The chart also shows a 5% allocation for administration costs that is allowed by PLHA grant requirements.
City Council approval will authorize to establishment of a new fund to track PLHA funding activity separate from all other City Funds, and amend the City's Adopted Annual Operations and Capital Improvement Budget as needed. PLHA is a permanent revenue stream where funds are will be tracked accordingly with this separate fund. Subsequent funding years will be requested as resources are committed.
|
PLHA FUNDING |
Total 5-year Allocation Estimate |
CY2019 Allocation* |
CY2020 Allocation |
CY2021 Allocation |
CY2022 Allocation |
CY2023 Allocation Estimate |
|
Allocation |
$ 1,915,068 |
n/a |
$ 496,102 |
$ 545,945 |
$ 273,629 |
$ 299,696 |
|
5% Admin |
$ 95,753 |
n/a |
$ 24,805 |
$ 27,297 |
$ 13,681 |
$ 14,985 |
|
95% Project Funding |
$ 1,819,315 |
n/a |
$ 471,297 |
$ 518,648 |
$ 259,948 |
$ 284,711 |
*CY2019 application period has closed
Environmental Review
The activity performed under this action is not itself a “Project” as defined under Section 15378 of the CEQA Guidelines, and is therefore not subject to environmental review pursuant to CEQA Guidelines section 15060(c)(3).
Fiscal Impact
Approval of the proposed actions will result in an update to the City’s Chart of Accounts for the establishment of a new City Fund to track PLHA funds separate from all other City Funding sources. The new fund will require an amendment to the City’s adopted annual Operations and Capital Improvement Budget to appropriate up to $1,915,068 to the new fund only. The City is not required to match funds for PLHA grant funds.
Attachment(s)
Resolution 2024-xxxx
Resolution 2024-xxxx
Attachment A: Permanent Local Housing Allocation (PLHA) Plan and Grant Application
Prepared by: Beth Herzog, Administrative Services Manager
Submitted by: Sylvia Solis Daniels, Housing & Neighborhood Services Manager
Reviewed by: Tess Sangster, Community & Economic Development Director
Approved by: Michelle Bender, City Manager