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Home My Public Portal About21-153 - Authorizing the Application and Adopting the Permanent Local Housing Allocation PlanRESOLUTION NO. 21-153 A RESOLUTION OF THE CITY OF CARSON, CALIFORNIA, AUTHORIZING THE APPLICATION AND ADOPTING THE PERMANENT LOCAL HOUSING ALLOCATION PLAN FOR THE PERMANENT LOCAL HOUSING ALLOCATION PROGRAM A necessary quorum and majority of the Council Members of the City of Carson, California hereby consents to, adopts, and ratifies the following resolution: WHEREAS, the State of California (the “State”), Department of Housing and Community Development (“Department”) issued a Notice of Funding Availability (“NOFA”) dated May 3, 2021 under the Permanent Local Housing Allocation (PLHA) Program; WHEREAS, the Department is authorized to provide up to $304 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assistance to Cities and Counties as described in Health and Safety Code Section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)). WHEREAS, the City of Carson (“Applicant”) is an eligible Local government who has applied for program funds to administer one or more eligible activities. WHEREAS, the Department may approve funding allocations for the PHLA Program, subject to the terms and conditions of the Guidelines, NOFA. Program requirements, the Standard Agreement, and other contracts between the Department and PLHA grant recipients; NOW THEREFORE BE IT RESOLVED THAT: Section 1. If Applicant receives a grant of PLHA funds from the Department pursuant to the above referenced PLHA NOFA, it represents and certifies that it will use all such funds in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including without limitation all rules and laws regarding the PLHA Program, as well as any and all contracts Applicant may have with the Department. Section 2. Applicant is hereby authorized and directed to receive a PLHA grant, in an amount not to exceed the five-year estimate of the PLHA formula allocations, as stated in Appendix C of the current NOFA in accordance with all applicable rules and laws. Section 3. Applicant hereby agrees to use the PLHA funds for eligible activities as approved by the Department and in accordance with all Program requirements, Guidelines, other rules and laws, as well as in a manner consistent and in compliance with the Standard Agreement and other contracts between the Applicant and the Department. Section 4. Pursuant to Section 302 (c) (4) of the Guidelines, Applicant’s PLHA Plan for the 2019- 2023 Allocations is attached to this Resolution, and Applicant hereby adopts this PLHA Plan and certifies RESOLUTION NO. 21-153 Page 1 of 3 Sy Sa SS A SE TT a IO AS Ee compliance with all public notice, public comment, and public hearing requirements in accordance with the Guidelines. Section 5. Applicant certifies that it has or will subgrant some or all of its PLHA funds to another entity or entities. Pursuant to Guidelines Section 302 (c) (3), “entity” means a housing developer or program operator, but does not mean an administering Local government to whom a Local government may delegate its PLHA allocation. Section 6. Applicant certifies that its selection process of these subgrantees was or will be accessible to the public and avoided or shall avoid any conflicts of interest. Section 7. Pursuant to applicant’s certification in this Resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements. Section 8. Applicant certifies that, if funds are used for the acquisition, construction or rehabilitation of for-sale housing projects or units within for-sale housing projects, the grantee shall record a deed restriction against the property that will ensure compliance with one of the requirements stated in Guidelines Section 302 (c) (6) (A), (B) and (C). Section 9. Applicant certifies that, if funds are used for the development of an Affordable Rental Housing Development, the Local government shall make PLHA assistance in the form of a low-interest, deferred loan to the Sponsor of the Project, and such loan shall be evidenced through a Promissory Note secured by a Deed of Trust and a Regulatory Agreement shall restrict occupancy and rents in accordance with a Local government-approved underwriting of the Project for a term of at least 55 years. Section 10. Applicant shall be subject to the terms and conditions as specified in the Standard Agreement, the PLHA Program Guidelines and any other applicable SB2 Guidelines published by the Department. Section 11. The City Manager is authorized to execute the PLHA Program Application, the PLHA Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the PLHA grant awarded to Applicant, as the Department may deem appropriate. RESOLUTION NO. 21-153 Page 2 of 3 SS SL SS SS a FT EE I ES TE SS Rg BF SF SE RT = PASSED, APPROVED, and ADOPTED this 7“ day of December, 2021. APPROVED AS TO FORM: CITY OF CARSON: Sunny K. Soltani, City Attorney tba Davis-Holmes, Mayor ATTEST: Dey xLinare yp Joy Simarago, Deputy City Clerk STATE OF CALIFORNIA ) COUNTY OF LOSANGELES )) ss. CITY OF CARSON ) |, Joy Simarago, Deputy City Clerk of the City of Carson, California, hereby attest to and certify that the foregoing resolution, being Resolution No. 21-153, adopted by the Carson City Council at its meeting held on the 7th day of December 2021, by the following vote: AYES: COUNCIL MEMBERS: Davis-Holmes, Dear, Hilton, Hicks, Rojas NOES: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMEBES: None ABSENT: COUNCIL MEMBERS: None BW|\ A rtf Joy Simarago, Deputy City Clerk RESOLUTION NO. 21-153 Page 3 of 3 §302(c)(4) Plan | Rev. 5/14/21 302(c}(4}(A) Describe the manner in which allocated funds will be used for eligible activities. The City of Carson praposes to utilize its PLHA funding for the following activities: a first-time home buyer program; rehabilitation and preservation of affordable ownership housing; and assisting persons and households who are experiencing or are at risk of homelessness. At present, it is estimated that the funding will be evenly distributed between the three activities. §302(c)(4}(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median income (AMD. The first-time homebuyer program will provide down payment assistance to income eligible households to enable them to enter the home ownership market. The City formerly operated a first-time home buyer program utilizing HOME and housing successor funds, and the PLHA funds will enable the City to resume such a program. Housing rehabilitation and preservation are key priorities for the City, as 90% of its housing stock is 30 years or older. The City has an existing owner-occupied rehabilitation program supported by CDBG funds, but the demand far exceeds the available funding. The PLHA fund would enable the City to meet this excess demand. Homelessness in Carson has fluctuated markedly as measured by the annual point-in time count, which between 2015 and 2020 (no count was taken i 2021 due to the Covid pandemic) ranged from a low of 157 to ahigh of 462. The situation promises to be exacerbated by the imminent closure of four mebilehome parks in Carson, placing some 465 households at risk of homelessness. WT $302(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government's Housing Element. The Plan addresses the following goals in the City's Housing Element: maintain and rehabilitate Carson's existing housing stock; encourage the development of a variety of housing to meet needs of the broad spectrum of the community, with a particular emphasis on multifamily housing and development standards that facilitate housing production; and promote and preserve housing opportunities for persons with special needs, including lower-income households, large families, single parent households, disabled persons. the elderly, and persons experiencing homelessness. Activities Detail (Activities | Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301)) §301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-,very low-, low-, or moderat income households, including necessa rating subsidies. R= §301(a)(2) The predevelopment, development, acauisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shail be available for occupancy for a term of no less than 30 days, §302(c)(4}(E){i) Provide a detailed and complete description of how allocated funds will be used for each praposed Affordable Rental and Percentage of Funds Allocated for Affordable Owner- Ownership Housing Activity. occupied Workforce Housing 100% The City would initiate a housing rehabilitation program for the owner occupied properties located within the city. The eligibility for participation would be based on the income of the resident household(s), While the program is intended to be open to all eligible income levels up to 150% of AMI. Complete the table below for each proposed Affordable Rental and Ownership Housing Activity to be funded with 2019-2023 PLHA allocationsif a single Activity will be assisting households at more than one level of Area Median income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting). Funding Allocation Year 2019 2020 2021 2022 2023 Ownership| Ownership| Ownership| Ownership Type of Affordable Housing sakes : : Activity en Rehabilitat} Rehabilitat| Rehabilitat| Rehabilitat ion ion ion ion eet Median | 150% 150% | 150% | 150% | 150% TOTAL §302(c)(4)(E){ii) Unmet share of the RHNA at AMI Level el 181 Note: complete for year 2019 = “ry. ge & 2020 only §302(c)(4})(E}{i) Percentage of Funds Allocated for Each 33.33% 33.33% | 33.33% | 33.33% 33.33% Affordable Housing Activity PLHA Page 1 302(c){4) Plan §302(c)4)(E)(ii) Projected INumber of Households Seved | '° @ % % % {§302(c}(4)(EXiv) Period of Affordability for the Proposed Activity (55 years required for rental housing projects) TBD TBO TBD TBO TBD §302(c){4}{E}(iii) A description of major steps/actions and a proposed schedule far the implementation and completion of each Affordable Rental and Ownership Housing project. Rehabilitation program would likely use same or similar application as existing CDBG-funded rehabilitation program. These applications would have to be updated accordingly. §301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds. ew ast §301(a}(4 Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176. 01(a}(5) Capitalized Reserves for Services connected to the preservation and creation of new permanent supportive housing. §301(a}(6) Assisting persons who are experiencing or At risk of homelessness, including, but not imited to, srovinG rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for perpencr centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. §302(c)(4(E)(i) Provide a detailed and complete description of now allocated funds will be used for the proposed Activity. The funding would be used to supplement existing cantracts with providers for outreach, counseling, navigation, and placement services for existing homeless, and for services (including rental assistance within PLHA guidelines) for households at risk of homelessness. Complete the table below for each proposed Activity to be funded with 2019-2023 PLHA allocations. !f a single Activity will be assisting households at more than one level of Area Median [ncome, please Ipt ithe Activity as many times as needed to capture ail of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting). Funding Allocation Year 2019 2020 2021 2022 2023 Rental Rental Rental Rental Rental Type of Activity for Persons Ansletaree | ist Assist Assistance] Assist Experiencing or At Risk of fern tae (term of | (termof | (termof | (term of | Homelessness months) six six six six manths) | months) | months) | months) 1§302(c}(4)(E)(i) Percentage of Funds Allocated for the 33.33% 33.33% | 33.33% | 33.33% | 33.33% Proposed Activity 1§302(c)(4)(E}(ii) Area Median income Level Served 30% 30% 30% 30% 30% TOTAL 1§302(c}(4){E}{ii}) Unmet share 5 of the RHNA at AMI Level 361 facto 351 Note: complete for year 2019 d) ee & 2020 only 1§302(c)(4)(E){ii) Projected Number of Households Served a” a a a ” 1% 1§302(c}(4)(E}iv) Period of Affordability for the Proposed Activity (55 years required for al ms uh mn wh rental housing projects) {§302(c)(4)(E){iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity. PLHA Page 2 302(c)(4) Plan intake and screening processes would need to be developed. Service provider contracts would need to be drafted or amended as appropriate. After these steps, the program(s) would vamp up as soon as possible during the PLHA 5-year plan. . Accessibility modifications in Lower-income Owner-occupied housing. 1{a){8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments. t not limited fo, down payment assistance. |Percentage of Funds Allocated for Affordable Owner- occupied Workforce Housing (AOQW#H) 100% The first-time homebuyer program provides down payment assistance to income-qualifying households toward the purchase of a home within the city. Complete the table below for each proposed Activity to be funded with 2019-2023 PLHA allocations. Ifa single Activity will be assisting households at more than one level of Area Median Income, please | the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting). st Funding Allocation Year 2019 2020 2021 2022 2023 Down Down Down Down Down Type of Homeowner Assistance} Payment | Payment | Payment | Payment | Payment Assistance |Assistance] Assist Assistance] Assistance |s302(c)(4) E){i) Percentage of Funds Allocated for the 33.33% 33.33% | 33.33% | 33.33% | 33.33% Proposed Activity $302(cX4)(E)Gl) Area Median | cow 150% | 150% | 150% | 150% TOTAL Income Level Served {§302(¢}{(4)(E)(ii) Unmet share of the RHNA at AMI Level 190 (2019 40 40 Note: complete for year 2019 figure) & 2020 only §302(c)(4)(EN(ii) Projected Number of Households Served * $ 3 5 $ % fs202%ey anew Period of Affordability for the Proposed TBD TBD TaD TBD TBO Activity 302(c)(4)}(E{iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity. The City formerly had a down-payment assistance program and will use that program as a starting point to initiate the new PLHA funded downpayment assistance program. Guidelines and application materials will need to be updated. The pragram would commence shortly after. §301(a)}(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested by a county in an affordable housir jdevelopment Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The county fiscal incentives shall be in the form of a grant or low-interest loan an affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred joan to the affordable housing Project, «2 to PLHA Page 3 302(c){4) Plan