REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHIL SKEI, Assistant Director
Planning and Development Department
BY: JILLIAN GAYTAN, Senior Management Analyst
Housing and Community Development Division
SUBJECT
Title
RESOLUTION - Approving an Amendment to the Five-Year Plan to the California Housing and Community Development Department application for funding from the Permanent Local Housing Allocation (PLHA) 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 to sign all necessary implementing documents.
Body
RECOMMENDATION
Staff recommends the City Council approve the PLHA 5-Year Plan Amendment to increase the maximum Area Median Income (AMI) for the development of affordable multifamily and single-family housing.
EXECUTIVE SUMMARY
In order to receive its allocations of PLHA funds, the City submitted the required PLHA 5-Year Plan to the California Housing and Community Development Department's (Cal HCD) that included the activities it would fund and the maximum Area Median Income (AMI) percentage for each activity. Since submission of the PLHA 5-Year Plan, the costs of construction have increased so dramatically that there is a need to increase the maximum AMIs for the development of affordable multifamily rental and single-family housing. In order to change the AMIs for these activities, the City must submit a PLHA 5-Year Plan Amendment.
BACKGROUND
California Senate Bill 2 was signed by the Governor on September 29, 2017, creating a source of funding for the PLHA from a recording fee imposed on real estate documents, and providing the framework for allocating and administering the funds. CalHCD uses the formula developed to allocate the Community Development Block Grant (CDBG) funds administered by the U.S. Departme...
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