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Community Development Agency <br />www.santa-ana.org/community-development <br />Item # 19 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />February 7, 2023 <br />TOPIC: Approve Appropriation Adjustment to Recognize Permanent Local Housing <br />Allocation <br />AGENDA TITLE: <br />Approve Appropriation Adjustment to Recognize Permanent Local Housing Allocation <br />(Non-General Fund) <br />RECOMMENDED ACTION <br />Approve an appropriation adjustment recognizing $4,795,654 in funds from the State of <br />California, into the Permanent Local Housing Allocation (PLHA) Program revenue <br />account and appropriate the same amount into the PLHA Round 3 expenditure account <br />to address homelessness in the City of Santa Ana. (Requires five affirmative votes) <br />DISCUSSION <br />In 2017, the California Legislature approved Senate Bill (SB 2), known as the Building <br />Homes and Jobs Act, which established a $75 recording fee on real estate documents <br />to increase housing production in California. The Act establishes the Permanent Local <br />Housing Allocation (PLHA) program administered by the California Department of <br />Housing and Community Development (HCD). Under the PLHA, funding is provided <br />through formula grants to entitlement jurisdictions such as the City of Santa Ana (City). <br />The grants are based on the formula prescribed under federal law for the Community <br />Development Block Grant (CDBG) program over a five-year funding period, as well as <br />through a competitive grant program to non-entitlement jurisdictions. The City is an <br />entitlement jurisdiction and is eligible to receive annual awards. As the number of real <br />estate transactions that are recorded varies from year to year, so will the grant amount <br />to the City. Over the last three years, the City has received a total of $11,957,188, <br />including this current award of $4,795,654. <br />The City utilized the first year PLHA allocation for Navigation Center tenant <br />improvement expenses. The remaining four (4) allocations are earmarked for the <br />operation and future purchase of this site. The allocation also allows for a portion of the <br />funds to be used for the administration of the Homeless Plan. Utilizing the funds in this <br />manner will meet the State’s requirements of entitlement jurisdictions to use PLHA <br />funds to increase the supply of affordable housing, and specifically in the category to <br />assist those who are homeless, including, operating and capital costs for navigation