| | | | | | | | Agenda Item - 4.b.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C Stiles
| From: | Lisa L Kim
| | Dept.: | City Manager
| Dept.: | Community and Economic Development
| | Subject: | Approval of the Permanent Local Housing Allocation 5-Year Plan, and adoption of a Resolution authorizing an application for, and receipt of, Permanent Local Housing Allocation Grant Program funds. (Grant amount estimate: $5,996,058) (Action Item) | Date: | 7/14/2020 |
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| | | | | | | | OBJECTIVE
The purpose of this memorandum is to request that the City Council conduct a Public Hearing for the Permanent Local Housing Allocation (PLHA) 5-Year Plan for the use of PLHA Program funds, and adopt a Resolution authorizing the City Manager to execute the PLHA Grant Application (Attachment No. 3), the PLHA Grant Standard Agreement and associated documents. |
| | | | | | | | BACKGROUND
In 2017, Senate Bill 2 created the first permanent source of funding for affordable housing in the State of California. Revenue is generated through recording fees on real estate transactions and will, therefore, vary from year to year depending upon activity. Year 2 (2019) of the program and onward, the majority of funding will flow to local jurisdictions through the Permanent Local Housing Allocation or PLHA. PLHA funds flow to local governments using the same formula as the federal Community Block Grant Program. The State Department of Housing and Community Development (HCD) has estimated that the City’s annual allocation will be approximately $1.2 million.
On February 26, 2020, HCD released a Notice of Funding Availability for approximately $195,000,000 as part of the PLHA Grants Program. This funding provides grants to Entitlement and Non-entitlement Local governments in California for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities. PLHA funds can be used for a broad variety of affordable housing activities including, but not limited to, new construction or rehabilitation of multifamily or single-family homeownership housing. |
| | | | | | | | DISCUSSION
The City’s PLHA Grant Application requests $5,966,058 in grant funding over a five (5) year period (FY 2019-2023) for the following activities to address the unmet housing needs in the community:
- $5,000,000 in matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund (LMIHAF) to produce affordable housing for households at or below 60% of the Area Median Income (AMI);
- $472,255 for a First-Time Home Buyer (FTHB) Program offering down payment assistance loans to approximately 10 low-income home buyers; and,
- $224,000 for assistance to the County for homeless support services in the Central Service Planning Area.
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| | | | | | | | FINANCIAL IMPACT
There is no impact to the General Fund. However, a successful grant application will generate approximately $5,966,058 to the City to help address the unmet housing needs in the community. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Conduct a Public Hearing for the PLHA 5-Year Plan;
- Approve the PLHA 5-Year Plan for the use of PLHA Grant Program funds;
- Adopt the Resolution authorizing the City Manager to execute the PLHA Grant Application, the PLHA Grant Standard Agreement and associated documents, and any amendments thereto; and,
- Appropriate any funds received from the PLHA Grant Application for the purposes designated therein.
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