REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
THROUGH: PHIL SKEI, Assistant Director
Planning and Development Department
BY: MAYRA MERINO, Senior Management Analyst
Housing Finance Division
SUBJECT
Title
***RESOLUTION - Adopt a resolution authorizing submission of an application and acceptance of funding from the State of California Department of Housing and Community Development Local Housing Trust Fund Grant program to provide matching funds to the City of Fresno Local Housing Trust Fund and authorizing the City Manager or designee to sign and submit the application and all necessary implementing documents (Subject to Mayor’s veto)
Body
RECOMMENDATION
Staff recommends that the City Council adopt a resolution authorizing and directing the City Manager, or designee, to submit the application and accept funding from the State of California Department of Housing and Community Development (HCD) under the Local Housing Trust Fund Grant Program. This resolution will also authorize the City Manager or designee to execute all necessary documents required for the implementation of this grant, which will provide matching funds to the City’s Local Housing Trust Fund.
EXECUTIVE SUMMARY
The State of California Department of Housing and Community Development (HCD) is offering a substantial opportunity for matching grant funds through its Local Housing Trust Fund Program. On July 9, 2024, HCD announced the availability of approximately $53 million in funding intended to support the creation, rehabilitation, or preservation of affordable housing, traditional housing, and emergency shelters. The City of Fresno is eligible to apply for up to $5,000,000 in matching funds, which will significantly strengthen our Local Housing Trust Fund. The application deadline is September 17, 2024.
BACKGROUND
HCD’s Local Housing Trust Fund Program is designed to support jurisdictions with establish Housing Trust Funds by providing matching grants. These grants are granted based on availability and application rating score.
On July 29, 2021, City Council established the City of Fresno Local Housing Trust Fund (LHTF) through resolution number 2021-201, which allocated $1,500,000 annually from the real estate transfer tax to support his fund. Additionally, the LHTF has benefited from contributions from General Fund, American Rescue Plan Act (ARPA), and Prohousing Incentive Pilot program (PIP).
With the recent Notice of Funding Availability (NOFA) released by HCD on July 9, 2024, for approximately $53 million in funding, the City has an opportunity to apply for $5,000,000 in matching funds. Funding will be made available through a City-issued NOFA for a competitive application of eligible projects. Loan terms, loan amounts, and scoring criteria will be established for each funding round made available, in compliance with the Program’s underwriting guidelines. NOFA scoring criteria will be developed through a community-supported process, with input garnered through open forums such as surveys, interactive workshops, town halls, etc.
ENVIRONMENTAL FINDINGS
This action is not a project pursuant to the definition in the California Environmental Quality Act (CEQA) Guidelines section 15378.
LOCAL PREFERENCE
Local preference is not applicable as the resolution provides support for a state funding application.
FISCAL IMPACT
There is no cost to the City as a result of this proposed action. Approval of the resolution will allow the City to apply for and receive up to $5,000,000 in matching funds for the City of Fresno LHTF. The annual designation of up to $1.5 million from the City’s Real Estate tax revenue to Fund 10502 has been appropriated in resolution number 2021-201.
Attachment:
Resolution - CA LHTF Matching Funds