HomeMy WebLinkAboutItem 10b - Permanent Local Housing Allocation Program Funds
DATE: October 6, 2020
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director
By: Tim Schwehr, Senior Economic Development Analyst
SUBJECT: RESOLUTION NO. 7336 APPROVING PARTICIPATION IN THE LOS
ANGELES URBAN COUNTY PERMANENT LOCAL HOUSING
ALLOCATION PROGRAM AND AUTHORIZING THE MAYOR, OR
DESIGNEE, TO SIGN A CONTRACT FOR FUNDING FOR THIS
PROGRAM FROM THE COUNTY OF LOS ANGELES
Recommendation: Adopt
SUMMARY
The City of Arcadia is eligible to receive $182,505 in Permanent Local Housing Allocation
(“PLHA”) Program funding in Fiscal Year 2020-21 as part of the SB 2 legislation signed
into law in 2017. In order to receive these funds, the City is required to adopt a Resolution
for participation in the Los Angeles Urban County PLHA Program and identify the activity
or activities to be funded under the program. It is recommended that the City Council
adopt Resolution No. 7336 approving participation in the Los Angeles Urban County
Permanent Local Housing Allocation Program and specifying that the PLHA funding will
be used for programs to assist persons in Arcadia who are experiencing or at risk of
homelessness.
BACKGROUND
The PLHA is a new SB 2 funded program designed to provide an ongoing annual source
of funding through State Property Transfer Fees. Funds can be used for construction of
affordable housing, programs to assist persons who are experiencing or at risk of
homelessness, or other housing-related assistance programs for low-to-moderate income
households. Similar to the Community Development Block Grant program for non-
entitlement cities, the PLHA funding is first allocated to a regional entity, in this case the
Los Angeles County Development Authority (“LACDA”), and then distributed to individual
participating cities according to an allocation formula. Under the provisions of SB 2,
Arcadia will receive a similar allocation amount on an annual basis over the next five
years. Unexpended program funds are allowed to be carried over from year to year.
On August 31, 2020, the City received a bulletin from the LACDA outlining the new PLHA
Program and allocation process. The bulletin includes a list of eligible program activities
Resolution No. 7336 – PLHA Funds
October 6, 2020
Page 2 of 3
that can be funded under the PLHA Program, and the amount each partner city will
receive. For the current fiscal year, the City of Arcadia is eligible to receive $182,505 in
PLHA funds. A copy of the letter, eligible activities, and City funding amounts is included
as Attachment No. 2. In order to receive these funds, the LACDA is requesting that each
participating city adopt and submit a resolution to them by October 15, 2020, specifying
participation in the program and the activity or activities to be funded. After receiving this
information, the LACDA will assemble and submit a final package of all its partner city
PLHA activities to the State for final approval and funding distribution. It is anticipated
that these funds will be received and available to use beginning in January 2021.
DISCUSSION
The SB 2 legislation relating to PLHA funds specifies 10 different eligible activities that
these funds can be used to finance. These 10 activities can be broadly categorized as
follows:
1. Activities related to the construction or preservation of affordable housing or
supportive housing;
2. Homelessness services and prevention programs;
3. Accessibility modifications for lower-income, owner-occupied housing; and
4. Programs that expand homeownership opportunities, including but not limited to
down-payment assistance programs.
Of note, the County of Los Angeles will also receive its own PLHA funding in the amount
of $5,417,739. The County has stated it intends to utilize all of its funding for an Eviction
Defense Program for the PHLA activity of preventing homelessness. As outlined in the
August 31, 2020, LACDA bulletin, one option is for the City to contribute its PLHA funding
to this countywide program as well. However, in speaking with LACDA staff, the County’s
Eviction Defense Program will be made available to all Los Angeles County residents
regardless of whether an individual city contributes its PLHA funds to the program. Rather
than allocate Arcadia’s PLHA funds to this program, it is recommended that the City
instead fund a program that provides more immediate tangible benefits to Arcadia
residents or those in the City.
Of the 10 activities eligible to be funded by the PLHA program, it is recommended that
the City use its $182,505 in PLHA funds for the activity of assisting persons in the City
who are experiencing or at risk of homelessness. The Recreation and Community
Services Department has recently been awarded a number of grants for specific activities
related to homelessness. This includes a $150,000 grant for a new Homeless Services
Pilot Program, a $30,000 grant for a joint Homeless Services/Diversion Program with the
City of La Canada Flintridge, and a $200,000 grant for implementation of the City’s
Homelessness Plans. These grants are scheduled to be before the City Council for
acceptance at the October 20, 2020, regular meeting. Because PLHA funds are allowed
Resolution No. 7336 – PLHA Funds
October 6, 2020
Page 3 of 3
to be carried over from year to year, designating Arcadia’s PLHA funds towards
homelessness assistance and prevention will create an additional funding source to
supplement these or other homelessness programs, including potential extension of
programs beyond the life of the current grants. A list of existing homelessness programs
proposed to be supplemented or extended using this year’s PLHA funds is included as
Attachment No. 3.
Decisions on the use of future PLHA funds can be made on an annual basis. There is
flexibility to choose a different program in future years as the City Council desires.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), based on Section 15061(b)(3) of the CEQA Guidelines, as it can
be seen with certainty that it will have no impact on the environment. Thus, this matter is
exempt under CEQA.
FISCAL IMPACT
The PLHA Program is a new SB 2 funded program that provides a new ongoing annual
source of funding through State Property Transfer Fees. The City will receive $182,505
through participation in the PLHA Program to address homelessness in the City. No
additional funding is required to participate in the program. Participation will result in
either no fiscal impact to the City, or a small net-positive impact if PLHA funds are used
in place of other existing funding sources.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a
project and is therefore, exempt under the California Environmental Quality Act (“CEQA”);
and adopt Resolution No. 7336 approving participation in the Los Angeles Urban County
Permanent Local Housing Allocation Program and specifying that the funding be used for
programs to assist persons who are experiencing or at risk of homelessness.
Attachment No. 1: Resolution No. 7336
Attachment No. 2: August 31, 2020 LACDA Bulletin
Attachment No. 3: PLHA Proposed Activities Form
Attachment No. 1
Attachment No. 2
ATTACHMENT NO. 3
PROPOSED ACTIVITY OR ACTIVITIES
FOR THE STATE PERMANENT LOCAL HOUSING ALLOCATION PROGRAM
City Name: Arcadia Date: October 6, 2020
Name and Description of the Eligible Activity or Activities the City would like to Implement Using PLHA
funds:
Assisting persons in Arcadia who are experiencing or at risk of homelessness. Funding will be used for one
or more of the following items:
1. Homelessness Services (Pilot) Program – The City will provide various services to the homeless
population in the City. Services would include mobile restrooms and showers, laundry facilities, eye
exams, informational resources alongside a Homeless Case Manager who will be available on site,
workshops covering various topics, light meals, as well as clothing that would be available for
individuals to take with them. The resource hub would occur twice a month and would be located
on City-owned property.
2. Homeless Prevention/Diversion Program – Funding to be used towards implementing homeless
prevention and diversion programs that provide financial assistance to Arcadia residents at risk of
becoming homeless.
3. Homeless Plans Implementation – Funding to help Arcadia implement elements of its completed
Homeless Plans, including:
• Encampment Clean-Up
• First Responder Outreach/HELP Team
• Homeless Case Management
• Emergency Resources
• Program Administration
Budget (s) Proposed for Activity or Activities:
$ 182,505
Pertinent Facts and Information about the Priority Need for this Activity or Activities in your City:
In recent years the City of Arcadia has seen a large increase in homeless individuals and a resulting
increased need to provide homeless services. Several plans and programs have been put into place to
address this issue, including those outlined above. With this year’s COVID-19 pandemic and the resulting
economic impacts, the City of Arcadia has a priority need to allocate additional funding to expand and/or
extend the timeline of these programs. Utilizing PLHA funds towards these programs will allow the City
to better meet the current needs of homelessness assistance and prevention in our community.
Submitted to LACDA By: _________________________ Date: ___________________
Title: _________________________________________