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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />DECEMBER 15, 2020 <br />TITLE: <br />APPROVE APPROPRIATION <br />ADJUSTMENT TO RECOGNIZE $2,803,706 <br />IN PERMANENT LOCAL HOUSING <br />ALLOCATION PROGRAM FUNDS AND <br />AGREEMENT WITH THE STATE OF <br />CALIFORNIA <br />(NON -GENERAL FUND) <br />/s/ Kristine Ridge <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />❑ <br />As Recommended <br />❑ <br />As Amended <br />❑ <br />Ordinance on V Reading <br />❑ <br />Ordinance on 2nd Reading <br />❑ <br />Implementing Resolution <br />❑ <br />Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />RECOMMENDED ACTION <br />1. Approve an appropriation adjustment recognizing $2,803,706 in funds from the State of <br />California, in revenue account (No. 15818002-52025) and appropriate the same amount to <br />expenditure account (No.15818700-various) to address homelessness in the City of Santa Ana. <br />2. Authorize the City Manager to execute the standard agreement with the State of California <br />Department of Housing and Community Development to receive Permanent Local Housing <br />Allocation funds in the amount of $2,803,706, subject to non -substantive changes approved by <br />the City Manager and City Attorney. <br />DISCUSSION <br />In 2017, the California Legislature approved Senate Bill (SB 2), known as the Building Homes and <br />Jobs Act, which established a $75 recording fee on real estate documents to increase the supply <br />of affordable homes in California. The Act establishes the Permanent Local Housing Allocation <br />(PLHA) program administered by the California Department of Housing and Community <br />Development (HCD). Under the PLHA, funding is provided through formula grants to entitlement <br />jurisdictions based on the formula prescribed under federal law for the Community Development <br />Block Grant (CDBG) program over a five-year funding period, as well as through a competitive <br />grant program to non -entitlement jurisdictions. The City of Santa Ana is an entitlement jurisdiction <br />and is eligible to receive an estimated $14 million, or approximately $2.8 million annually. As the <br />number of real estate transactions recorded will vary from year to year, the revenues collected will <br />fluctuate. In June, 2020, City Staff submitted the official plan to the State of California noting that <br />allocated funds will be used for the new homeless navigation center. <br />On June 16, 2020, the City Council approved an operational agreement with Illumination <br />Foundation to operate a year-round homeless navigation center and recuperative care facility at <br />1815 Carnegie Avenue. The shelter will provide a total of 200-250 beds, for individuals, families <br />20A-1 <br />