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Community Development Agency <br />www.santa-ana.org/community-development <br />Item # 9 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />November 19, 2024 <br />TOPIC: Permanent Local Housing Allocation <br />AGENDA TITLE <br />Appropriation Adjustment Recognizing Permanent Local Housing Allocation Round 4 <br />(Non-General Fund) <br />RECOMMENDED ACTION <br />Approve an appropriation adjustment recognizing $2,403,595 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 4 expenditure account <br />to address homelessness in the City of Santa Ana. (Requires five affirmative votes) <br />GOVERNMENT CODE §84308 APPLIES: No <br />DISCUSSION <br />In 2017, the California Legislature approved Senate Bill 2, known as the Building <br />Homes and Jobs Act (Act), which established a $75 recording fee on real estate <br />documents to increase housing production in California. The Act establishes the <br />Permanent Local Housing Allocation (PLHA) program administered by the California <br />Department of Housing and Community Development. Under the PLHA, funding is <br />provided through formula grants to entitlement jurisdictions such as the City of Santa <br />Ana (City). The grants are based on the formula prescribed under federal law for the <br />Community Development Block Grant (CDBG) program over a five-year funding period, <br />as well as through a competitive grant program to non-entitlement jurisdictions. Real <br />estate transactions that are recorded vary from year to year, directly affecting the grant <br />amount the City receives annually. Over the last four years, the City has received a total <br />of $14,360,783 including this current award of $2,403,595. <br />The City utilized the first-year PLHA allocation for the Santa Ana Navigation Center <br />tenant improvement expenses. Second- and third-year allocations were used for the <br />purchase of that property. This fourth-year allocation will be used for the operating <br />expenses of the Santa Ana Navigation Center and homeless services. Utilizing the <br />funds in this manner will meet the State’s requirements of entitlement jurisdictions to <br />use PLHA funds to increase the supply of affordable housing, specifically in the <br />category of assisting those who are homeless.