HomeMy WebLinkAboutItem 19 - Approve Appropriation Adjustment to Recognize Permanent Local Housing Allocation Community Development Agency
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Item # 19
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
February 7, 2023
TOPIC: Approve Appropriation Adjustment to Recognize Permanent Local Housing
Allocation
AGENDA TITLE:
Approve Appropriation Adjustment to Recognize Permanent Local Housing Allocation
(Non-General Fund)
RECOMMENDED ACTION
Approve an appropriation adjustment recognizing $4,795,654 in funds from the State of
California, into the Permanent Local Housing Allocation (PLHA) Program revenue
account and appropriate the same amount into the PLHA Round 3 expenditure account
to address homelessness in the City of Santa Ana. (Requires five affirmative votes)
DISCUSSION
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 housing production in California. The Act establishes the Permanent Local
Housing Allocation (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 such as the City of Santa Ana (City).
The grants are 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 is an
entitlement jurisdiction and is eligible to receive annual awards. As the number of real
estate transactions that are recorded varies from year to year, so will the grant amount
to the City. Over the last three years, the City has received a total of $11,957,188,
including this current award of $4,795,654.
The City utilized the first year PLHA allocation for Navigation Center tenant
improvement expenses. The remaining four (4) allocations are earmarked for the
operation and future purchase of this site. The allocation also allows for a portion of the
funds to be used for the administration of the Homeless Plan. 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, including, operating and capital costs for navigation
Approve Appropriation Adjustment to Recognize Permanent Local Housing Allocation
February 7, 2023
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centers and emergency shelters.
Further these PLHA funds will build upon the City’s existing efforts to prevent and
combat homelessness, to address the needs of homeless and unstably housed
residents.
FISCAL IMPACT
Approval of the appropriation adjustment will recognize $4,795,654 in funds from the
State of California, in PLHA Program revenue account (No. 15818002-52025 State
Grant and appropriate the same amount to expenditure account (No. 15818702-
various).
Any remaining balances not expended at the end of the fiscal year will be presented to
the City Council for approval of carryovers to FY 23-24.
EXHIBIT(S)
1. Award Announcement - Permanent Local Housing Allocation Program Round 3
Submitted By: Michael L. Garcia, Executive Director of Community Development
Approved By: Kristine Ridge, City Manager
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF STATE FINANCIAL ASSISTANCE
2020 W. El Camino Avenue, Suite 670, 95833
P. O. Box 952054
Sacramento, CA 94252-2054
(916) 263-2771
www.hcd.ca.gov
November 15, 2022
Terri Eggers, Homeless Services Manager
City of Santa Ana
20 Civic Center Plaza, M-25
Santa Ana, CA 92701
Dear Terri Eggers:
RE: Award Announcement – Permanent Local Housing Allocation Program
Round 3, Notice of Funding Availability, Fiscal Year 2021/2022
City of Santa Ana
Contract No. 20-PLHA-15193
The California Department of Housing and Community Development (Department) is
pleased to announce that the City of Santa Ana has been awarded a Permanent Local
Housing Allocation (PLHA) program award in the amount of $4,795,654. This letter
constitutes notice of the designation of PLHA program funds for use in Orange County
for the following activity:
•Operating and Capital Costs for Navigation Centers
The City of Santa Ana will be required to enter into a Standard Agreement that will set
forth conditions for funding and milestones that are required to be met. Reimbursement
of eligible expenses are subject to the terms outlined in Section 304(d) of the PLHA
adopted program guidelines.
Congratulations on your successful application. For further information, please contact
Doniell Cummings, PLHA Program Manager, Program Design and Implementation
Branch, at (916) 695-9006 or Doniell.Cummings@hcd.ca.gov.
Sincerely,
Jennifer Seeger
Deputy Director
Division of State Financial Assistance
EXHIBIT 1