55A - RESO FOR PERMANENT LOCAL HOUSING

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 18, 2020 TITLE: ADOPT A RESOLUTION AUTHORIZING THE CITY TO APPLY FOR AND ADMINISTER THE PERMANENT LOCAL HOUSING ALLOCATION PLAN /s/Kristine CITY MANAGER CLERK OF COUNCIL USE ONLY: FREJU-1067fW97 ❑ As Recommended ❑ As Amended ❑ Ordinance on V Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO RECOMMENDED ACTION Adopt a Resolution, amending Resolution No. 2020-047, authorizing the City to apply to the State of California to receive and administer the Permanent Local Housing Allocation funds. DISCUSSION On June 2, 2020, City Council approved a Resolution and authorized the City to apply for and administer the Permanent Local Housing Allocation (PLHA) Plan. Upon submission of the application, the City was contacted by the California Department of Housing and Community Development and asked to amend the Resolution. The amended Resolution (Exhibit 2) adds language to reflect that the PLHA eligible activities to be funded include the allowable five percent administration and the operation of the homeless navigation center. This language was previously mentioned in the PLHA five-year Plan that was available for public comment. In 2017, the California Legislature approved Senate Bill (SB 2), known as the Building Homes and Jobs Act, which established a $75 recording fee on real estate documents to increase the supply of affordable homes in California. The Act establishes the PLHA program administered by the California Department of Housing and Community Development (HCD). Under the PLHA, funding is provided through formula grants to entitlement jurisdictions based on the formula prescribed under federal law for the Community Development Block Grant (CDBG) program over a five-year funding period, as well as through a competitive grant program to non -entitlement jurisdictions. The City of Santa Ana is an entitlement jurisdiction and is eligible to receive an estimated $16 million, over the next five years. As the number of real estate transactions recorded will vary from year to year, the revenues collected will also fluctuate. According to HCD, the City will receive first -year funds in October 2020. To off -set the on -going operations at the new homeless navigation center, the City intends to use PLHA funding. Utilizing the funds in this manner will meet the State's requirements of entitlement jurisdictions to use PLHA funds to increase the supply of affordable housing, and specifically, in the category to assist those who are homeless or at -risk of homelesseness, including but not limited to, providing rapid rehousing, rental assistance, supportive/case 55A-1