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Home My WebLink AboutItem 09 - Appropriation Adjustment Recognizing Permanent Local Housing Allocation Round 4 Community Development Agency www.santa-ana.org/community-development Item # 9 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 19, 2024 TOPIC: Permanent Local Housing Allocation AGENDA TITLE Appropriation Adjustment Recognizing Permanent Local Housing Allocation Round 4 (Non-General Fund) RECOMMENDED ACTION Approve an appropriation adjustment recognizing $2,403,595 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 4 expenditure account to address homelessness in the City of Santa Ana. (Requires five affirmative votes) GOVERNMENT CODE §84308 APPLIES: No DISCUSSION In 2017, the California Legislature approved Senate Bill 2, known as the Building Homes and Jobs Act (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. 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. Real estate transactions that are recorded vary from year to year, directly affecting the grant amount the City receives annually. Over the last four years, the City has received a total of $14,360,783 including this current award of $2,403,595. The City utilized the first-year PLHA allocation for the Santa Ana Navigation Center tenant improvement expenses. Second- and third-year allocations were used for the purchase of that property. This fourth-year allocation will be used for the operating expenses of the Santa Ana Navigation Center and homeless services. 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, specifically in the category of assisting those who are homeless. Permanent Local Housing Allocation November 19, 2024 Page 2 4 6 7 1 FISCAL IMPACT Approval of the appropriation adjustment will recognize $2,403,595 in funds from the State of California in PLHA Program revenue account (No. 15818002-52025 State Grant-Direct) and appropriate the same amount to the expenditure accounts as follows: Fiscal Year Accounting Unit-Account Fund Description Accounting Unit, Account Description Amount FY 24-25 15818703- 69135 Permanent Local Housing Allocation 2023 Round 4 PLHA Round 4, Payment to Subagent $ 2,283,415.25 FY 24-25 15818703- 61XXX Permanent Local Housing Allocation 2023 Round 4 PLHA Round 4, Salary and Benefits $120,179.75 Total:$2,403,595.00 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 2025-26. EXHIBIT(S) 1. Award Announcement - Permanent Local Housing Allocation Program Round 4 Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nuñez, City Manager STATE OF CAL IEORNIA -BUSINESS CONSUMER SERVICES AND HOUSING AGENCY DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF STATE FINANCIAL ASSISTANCE 651 Bannon Street, Suite 800 Sacramento, CA 95811 (916)263-2771 www.hcd.ca.gov October 8, 2024 Michael Garcia, Executive Director of Community Development City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 Dear Michael Garcia: RE: Conditional Award Commitment and Acceptance of Terms and Conditions Permanent Local Housing Assistance, Round 4, Notice of Funding Availability, Fiscal Year 2023/2024 City of Santa Ana -City of Santa Ana Contract No. 20-PLHA-15193 The California Department of Housing and Community Development ("Department" or "HCD") issued a Permanent Local Housing Assistance (PLHA), Round 4, Notice of Funding Availability on December 29, 2023. The Department is now pleased to inform you of this conditional award to City of Santa Ana "Awardee". This conditional award is a grant in the amount of $2,403,595 (the "Conditional Award") for the above-referenced project (the "Project") and includes the following activity/activities awarded: •Operating and Capital Costs for Navigation Centers •Five Percent (5%) Administrative Costs The Conditional Award is based on and subject to the Applicant Representations and the Terms and Conditions of Conditional Award, both as further specified and described in this notice of the Conditional Award (the "Conditional Award Commitment"). This Conditional Award may only be accepted by timely delivery of a fully executed Acceptance of Terms and Conditions of Conditional Award form to the Department (an executed copy of this form is enclosed herein). I.Applicant Representations -Basis of Conditional Award In response to the above-mentioned NOFA, the Awardee(s) submitted an application for grant funding of the Project (that application, and all communications and documentation submitted to the Department in support thereof, the "Application"). The Department is making this Conditional Award to the Awardee(s) on the basis of, and in reliance upon, the representations, warranties, projections, and descriptions that the Awardee(s) submitted as part of the Application (the "Applicant Repres entations"). The Department may rescind this Conditional Award if the Department discovers, at any time prior to disbursement of the Conditional Award, that the Applicant Representations EXHIBIT 1 Permanent Local Housing Assistance, NOFA, Round 4, Conditional Award Commitment City of Santa Ana -City of Santa Ana Contract No. 20-PLHA-15193 October 8, 2024 Page 2 included material misrepresentations or omissions, regardless of whether or not such misrepresentations or omissions were innocent, unintentional, and/or based upon belief. II.Terms and Conditions of Conditional Award TIME IS OF THE ESSENCE IN THE SATISFACTION OF THESE TERMS AND CONDITIONS OF CONDITIONAL AWARD. The Department may rescind this Conditional Award if any of the terms and conditions enumerated in this Section II (the "Terms and Conditions of Conditional Award") are not timely satisfied. The Terms and Conditions of this Conditional Award and their corresponding timelines are described below. If the Terms and Conditions of this Conditional Award are timely satisfied, the Department will (i) promptly provide a written notification to the Awardee via electronic mail; and (ii) circulate an executed copy of an STD 213, Standard Agreement, for all appropriate signatures and approvals in accordance with the timeline specified in Section 111 of this Conditional Award Commitment. All timelines shall be calculated in calendar days. Any deadline falling on a weekend or State of California holiday shall be extended to the next business day. A.Timely Execution of Acceptance of Terms and Conditions of Conditional Award Form The Awardee shall execute and deliver a copy of the enclosed Acceptance of Terms and Conditions of Conditional Award to the Department within ten (10) calendar days of the date of this Conditional Award Commitment. The Department will deem this condition to be unsatisfied if it receives an executed Acceptance of Terms and Conditions of Conditional Award that has been substantively modified, altered, or amended in any way. The signed Acceptance of Terms and Conditions of Conditional Award form must be submitted to PLHA@hcd.ca.gov. Ill. Delivery of Standard Agreement In an effort to be responsive to each Awardee's closing needs and to ensure timely commitment of funds, the Department commits to delivering an executed copy of the Standard Agreement relative to this Conditional Award within ninety (90) calendar days of receiving all required documents, including all legally sufficient Authorization and Organizational Documents, in connection with this Project and as applicable. EXHIBIT 1 Permanent Local Housing Assistance, NOFA, Round 4, Conditional Award Commitment City of Santa Ana -City of Santa Ana Contract No. 20-PLHA-15193 October 8, 2024 Page 3 Congratulations on your successful application. For further information, please contact Kelsey Barraza, PLHA Program Manager, Program Design and Implementation Branch, at (916) 820-1287 or Kelsey.Barraza@hcd.ca.gov. Sincerely, rR� Jennifer Seeger Deputy Director Division of State Financial Assistance Enclosure: Acceptance of Terms and Conditions of Conditional Award form EXHIBIT 1 California Department of Housing and Community Development Permanent Local Housing Assistance, Round 4 Notice of Funding Availability Acceptance of Terms and Conditions of Conditional Award City of Santa Ana ("Awardee") City of Santa Ana ("Project") Permanent Local Housing Assistance NOFA award totaling $2,403,595 ("Conditional Award"), activity/activities awarded as detailed below: •Operating and Capital Costs for Navigation Centers•Five Percent (5%) Administrative Costs By signing this Acceptance of Terms and Conditions of Conditional Award, the Awardee acknowledges having read and fully understood the terms and conditions of the Conditional Award Commitment, dated October 8, 2024, in connection with this Project. In addition, the Awardee must acknowledge that it has reviewed and verified the accuracy of the projec� report prepared b� the Department no later than N/A. _ / � ��!C/1�!.3:t?:;2-'f Michael Garcia, Executive Director of Community Development Date City of Santa Ana ••For HCD Use Only •• □Authorized Representatives Verified □All Parties Signed Date Received: _______ _ EXHIBIT 1