REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHILIP SKEI, Assistant Director
Planning and Development Department
BY: JENNIFER DAVIS, Sr. Management Analyst
Housing Finance Division
SUBJECT
Title
***RESOLUTION - Authorizing application for and acceptance of funding from the Permanent Local Housing Allocation (PLHA) Program of the California Housing and Community Development Department for the development of Affordable multifamily and single-family housing, owner-occupied home rehabilitation, and down payment assistance to benefit Low- and Moderate-Income persons, and authorizing the City Manager, or designee, to sign all necessary implementing documents. (Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends the City Council approve the resolution authorizing submission of an application for and acceptance of funding from the Permanent Local Housing Allocation (PLHA) Program and authorizing the City Manager, or designee, to sign all necessary implementing documents as approved as to form by the City Attorney’s Office.
EXECUTIVE SUMMARY
The City of Fresno (City) is eligible for a fourth round of PLHA (CY 2022) funding in an amount of $2,921,311 to be used for the development of Affordable multifamily and single-family housing, owner-occupied home rehabilitation, and down payment assistance to benefit Low- and Moderate-Income persons. The California Housing and Community Development Department (HCD) requires all eligible and formally awarded applicants to submit a streamlined application for a fourth round of PLHA funding. By submitting the streamlined application, the City will receive the CY 2022 entitlement of funds.
BACKGROUND
On December 29, 2023, the California Housing and Community Development Department (HCD) announced the PLHA Program’s Local Government Formula Component Notice of Funding Availability (2023 NOFA). Funding for the 2023 NOFA is provided pursuant to Senate Bill 2 (SB 2) (Chapter 364, Statutes of 2017). SB 2 established the Building Homes and Jobs Trust Fund (Fund), thereby creating a source of funding for the PLHA Program from a recording fee imposed on real estate documents and providing the framework for allocating and administering the funds. The revenue from SB 2 will vary from year to year, as revenue is dependent on real estate transactions with fluctuating activity.
HCD uses 70 percent of the revenue collected, beginning in the calendar year 2019, to provide financial assistance to local governments, including the City of Fresno (City), for eligible housing-related projects and homelessness activities to assist in addressing unmet housing needs of their local communities. The 2023 NOFA represents the fourth allocation of monies deposited into the Fund. The City’s estimated five-year allocation may not exceed $20,445,618. In the prior three years, the City has been awarded grant activity amounts of $3,407,603 for CY 2019, $5,296,470 for CY 2020, and $5,828,601 for CY 2021. The City is eligible to apply for the CY 2022 entitlement in the amount of $2,921,311.
On August 20, 2020, City Council approved the City’s PLHA 5-Year Plan that included the development of Affordable multifamily and single-family housing, owner-occupied home rehabilitation, and down payment assistance to benefit Low- and Moderate-Income persons. On April 8, 2021, City Council approved a resolution authorizing the City Manager to enter into the Standard Agreement with HCD to accept PLHA funding. Given the significant increase in the costs of construction, on April 21, 2022, City Council approved an amendment to the PLHA 5-Year Plan to increase the maximum Annual Median Income (AMI) percentage of multifamily and single-family housing projects to 80% AMI. Amendment to increase the AMI does not affect the goal of PLHA or the activities identified by the City in the adopted 5-Year Plan.
To receive the City’s CY 2022 PLHA entitlement, the City is required, as an eligible and formally awarded applicant, to submit a streamlined application for the 2023 PLHA Formula Allocation. Staff requests authority to submit a streamlined application and accept the CY 2022 entitlement in the amount of $2,921,311 to be used for the activities approved in the City’s PLHA 5-Year Plan and that are consistent with the City’s Housing Element.
ENVIRONMENTAL FINDINGS
A resolution applying for grant funding is not a project for the purposes of the California Environmental Quality Act.
LOCAL PREFERENCE
Local preference was not implemented because the resolution provides support for a state funding application.
FISCAL IMPACT
The General Fund is not impacted by this action. Approval of the resolution will allow the City to apply to receive its fourth allocation of PLHA grant funds in the amount of $2,921,311.
Attachment: Resolution Authorizing Application to PLHA 2023 NOFA