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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 2, 2020 <br />TITLE <br />PUBLIC HEARING — ADOPT A <br />RESOLUTION AUTHORIZING THE CITY TO <br />APPLY FOR AND ADMINISTER THE <br />PERMANENT LOCAL HOUSING <br />ALLOCATION PLAN <br />/s/ Kristine <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />❑ <br />As Recommended <br />❑ <br />As Amended <br />❑ <br />Ordinance on 1s' 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 />Adopt a resolution authorizing the City to apply to the State of California to receive and administer <br />the Permanent Local Housing Allocation (PLHA) funds and provide the public adequate opportunity <br />to review and comment on its content. <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 transactions 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. Because <br />the number of real estate transaction recorded will vary from year to year, the revenues collected <br />will fluctuate. According to HCD, the City will receive first -year funds in October 2020. <br />To off -set the on -going operations at the new homeless navigation center, the City plans to use <br />PLHA funding. Utilizing the funds in this manner will meet the State's requirements of entitlement <br />jurisdictions to use PLHA funds to increase the supply of affordable housing, and specifically in <br />the category to assist those who are homeless, or at -risk of homelesseness including, but not <br />limited to, providing rapid rehousing, rental assistance, supportive/case management services that <br />allow people to obtain and retain housing, operating and capital costs for navigation centers and <br />emergency shelters, and the new construction, rehabilitation, and preservation of permanent and <br />transitional housing are also eligible. <br />In order to receive PLHA funds, the City is required to submit a PLHA Plan detailing the manner in <br />which allocated funds will be used as well as providing evidence that the Plan was authorized and <br />75B-1 <br />