HomeMy WebLinkAboutItem 13e - Permanent Local Housing Allocation Program Funds
DATE: June 15, 2021
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. 7374 APPROVING PARTICIPATION IN THE LOS
ANGELES URBAN COUNTY PERMANENT LOCAL HOUSING
ALLOCATION (PLHA) PROGRAM FOR FISCAL YEAR 2021-22;
IDENTIFYING PROPOSED ACTIVITIES FOR USE OF $466,175 IN PLHA
FUNDING; AND AUTHORIZING THE MAYOR, OR DESIGNEE, TO SIGN
A REIMBURSABLE CONTRACT WITH THE LOS ANGELES COUNTY
DEVELOPMENT AUTHORITY (LACDA)
Recommendation: Adopt
SUMMARY
In Fiscal Year 2020-21, the City of Arcadia received $182,505 in Permanent Local
Housing Allocation (“PLHA”) Program funding as part of the SB 2 legislation signed into
law in 2017. However, due to delays at the County and State levels, this funding was not
released in time to be used in Fiscal Year 2020-21 and it has been rolled over into the
upcoming Fiscal Year. The City of Arcadia is estimated to receive $283,670 in additional
PLHA funding for Fiscal Year 2021-22 for a combined total of $466,175 in funding from
both years. To make these funds eligible for use, the City is required to adopt an annual
Resolution for participation in the Los Angeles Urban County PLHA Program and identify
the activities to be funded.
It is recommended that the City Council adopt Resolution No. 7374 approving
participation in the Los Angeles Urban County Permanent Local Housing Allocation
Program for Fiscal Year 2021-22; identifying $466,175 in PLHA funding to be used for
assisting persons in Arcadia who are experiencing or are at risk of homelessness, and/or
activities related to the construction or preservation of affordable housing in the City; and
authorizing the Mayor, or designee, to sign a reimbursable contract with the Los Angeles
County Development Authority (“LACDA”).
BACKGROUND
The PLHA is an SB 2 funded program that began in Fiscal Year 2020-21. It is designed
to provide an ongoing annual source of funding through State Property Transfer Fees.
Resolution No. 7374 – PLHA Funds
June 15, 2021
Page 2 of 4
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”). The funding is 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 a five-year period. Unexpended program funds
may be carried over from year to year.
On October 6, 2020, the City adopted Resolution No. 7336 approving participation in the
Los Angeles Urban County PLHA Program for Fiscal Year 2020-21 with a PLHA funding
allocation amount of $182,505. The City identified this funding to be used towards
programs to assist persons in Arcadia who are experiencing or at risk of homelessness.
It was originally anticipated to be available for use beginning in January 2021; however,
due to delays at the County and State levels, the City was informed in early 2021 that all
Fiscal Year 2020-21 PLHA funding would be rolled over to the following year. For the
upcoming fiscal year, the City of Arcadia is eligible to receive an additional $283,670 in
PLHA funds.
On May 13, 2021, the LACDA issued a bulletin requesting that each participating city
adopt and submit a resolution to them by June 30, 2021, specifying participation in the
program and the activities to be funded with the combined Year 1 and Year 2 funds, which
for Arcadia total $466,175. After receiving resolutions from each participating city, 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 the fall of 2021. A copy of the May 13,
2021, LACDA bulletin with additional details on PLHA funding and eligible activities is
included as Attachment No. 2.
DISCUSSION
The SB 2 legislation relating to PLHA funds specifies different eligible activities that these
funds can be used to finance. These 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.
Resolution No. 7374 – PLHA Funds
June 15, 2021
Page 3 of 4
Of the activities eligible to be funded by the PLHA program, it is recommended that the
City combine the $182,505 in PLHA funds carried over from Fiscal Year 2020-21 with the
$283,670 in Fiscal Year 2021-22 PLHA funds to allocate toward:
1. Assisting persons in the City who are experiencing or at risk of homelessness;
and
2. Activities related to the construction of preservation of affordable housing.
With regard to activities assisting homeless individuals, the Recreation and Community
Services Department was awarded a number of grants in 2020 for specific activities
related to homelessness. Continuing to designate PLHA funds towards homelessness
assistance and prevention would allow the City to supplement these or other
homelessness programs in the coming year, including potentially extending one or more
programs beyond the life of the current grants. Any unspent homelessness assistance
funding is eligible to be carried over into Fiscal Year 2022-23.
It is further recommended that the City designate all available PLHA funds toward
activities related to the construction or preservation of affordable housing. Specifically, it
is recommended that the City begin accumulating funds over several years to use towards
a future affordable housing development project in the City. There is also the potential to
leverage accumulated PLHA funds with a matching grant either through the City’s
partnership with the San Gabriel Valley Regional Housing Trust or another affordable
housing entity.
Keeping the use of these funds flexible for both of the above-mentioned uses provides
the City the ability to direct funds towards the most important and timely use related to
affordable housing and homeless services, which is the focus of the funds. Because the
decision on the use of PLHA funds is made on an annual basis, there is also flexibility to
choose a different use of the accumulated PLHA funds 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 SB 2 funded program that provides an ongoing annual source of
funding through State Property Transfer Fees. The City will receive $466,175 through
the PLHA Program over these first two fiscal years of the Program. No additional funding
is required to participate in the program. Participation will result in either no fiscal impact
Resolution No. 7374 – PLHA Funds
June 15, 2021
Page 4 of 4
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. 7374 approving participation in the Los Angeles
Urban County Permanent Local Housing Allocation Program (PLHA) for Fiscal Year
2021-22; identifying $466,175 in PLHA funding to be used for assisting persons in Arcadia
who are experiencing or are at risk of homelessness, and/or activities related to the
construction or preservation of affordable housing in the City; and authorizing the Mayor,
or designee, to sign a reimbursable contract with the Los Angeles County Development
Authority (LACDA).
Attachment No. 1: Resolution No. 7374
Attachment No. 2: May 13, 2021 LACDA Bulletin
Attachment No. 3: PLHA Proposed Activities Form
pages 1
Attachment A
Permanent Local Housing Allocation 2020 Total Urban County Entitlement $17,136,461
Less Administration (5%) ($856,823)
Total 2021-2022 to be Allocated $16,279,638
Population Poverty Overcrwding
City 2015 2015 2015 Factor Allocation
AGOURA HILLS 20,697 1194 65 0.004345193 $70,738
ARCADIA 57,564 5486 735 0.017424818 $283,670
AVALON 3,777 539 313 0.002380354 $38,751
AZUSA 48,033 7569 1,758 0.023293918 $379,217
BELL 35,998 9947 2,394 0.027934862 $454,769
BELL GARDENS 42,842 11935 3,556 0.035962885 $585,463
BEVERLY HILLS 34,663 3100 317 0.009723729 $158,299
CALABASAS 24,075 1897 62 0.005785489 $94,186
CLAREMONT 35,762 2591 300 0.009000859 $146,531
COMMERCE 13,017 2052 724 0.007213434 $117,432
COVINA 48,587 5245 1,042 0.017183349 $279,739
CUDAHY 24,138 7527 1,922 0.021198893 $345,110
CULVER CITY 39,469 3491 803 0.012618399 $205,423
DIAMOND BAR 56,471 3919 322 0.013396981 $218,098
DUARTE 21,769 3313 535 0.009425774 $153,448
EL SEGUNDO 16,929 1224 208 0.004496691 $73,204
HAWAIIAN GARDENS 14,475 4426 806 0.011318428 $184,260
HIDDEN HILLS 1,557 76 2 0.000295148 $4,805
HERMOSA BEACH 19,747 783 79 0.003660287 $59,588
IRWINDALE 1,426 178 31 0.000542803 $8,837
LA CANADA-FLINTRIDGE 20526 518 129 0.003520497 $57,312
LA HABRA HEIGHTS 5,425 186 39 0.001023701 $16,665
LA MIRADA 49,182 3453 1,257 0.015277139 $248,706
LA PUENTE 40,496 5853 1,911 0.020385377 $331,867
LA VERNE 31,920 2576 352 0.008744464 $142,357
LAWNDALE 33,231 5915 1,639 0.018693836 $304,329
LOMITA 20,622 3009 479 0.008629249 $140,481
MALIBU 12,856 1339 95 0.003815106 $62,109
MANHATTAN BEACH 35,603 1416 90 0.006415414 $104,441
MAYWOOD 27,739 8284 2,405 0.024512447 $399,054
MONROVIA 37,164 3738 685 0.012315745 $200,496
RANCHO PALOS VERDES 42,464 1799 277 0.008437302 $137,356
ROLLING HILLS ESTS 8188 444 43 0.001738249 $28,298
SAN DIMAS 34,073 2283 223 0.008062317 $131,252
SAN FERNANDO 24,296 4563 947 0.013120635 $213,599
SAN GABRIEL 40,198 5492 1,402 0.017948713 $292,199
SAN MARINO 13,353 740 108 0.002996815 $48,787
SANTA FE SPRINGS 17,162 2153 660 0.007591641 $123,589
SIERRA MADRE 11,084 636 62 0.002420530 $39,405
SIGNAL HILL 11,332 2041 515 0.006251968 $101,780
SOUTH EL MONTE 20,483 4200 995 0.012318315 $200,538
SOUTH PASADENA 25,999 2025 319 0.007127353 $116,031
TEMPLE CITY 36,079 3414 745 0.011916778 $194,001
WALNUT 29,970 1999 223 0.007175079 $116,808
WEST HOLLYWOOD 35,332 5408 311 0.013320883 $216,859
WESTLAKE VILLAGE
TOTAL PARTICIPATING
8,471 512 16 0.001775713 $28,908
CITIES 1,234,244 150,488 31,901 0.482737559 $7,858,793
Supervisorial Districts (Unincorporated Area only) *
I. 262483 52,187 13,007 0.156276164 $2,544,119
II. 253210 64,961 12,653 0.173593546 $2,826,040
III. 21,410 1,826 60 0.005377334 $87,541
IV. 223783 24,416 6,599 0.086079046 $1,401,336
V. 279396 31,613 4,587 0.095936351 $1,561,809
TOTAL DISTRICTS 1,040,282 175,002 36,907 0.517262441 $8,420,845
TOTAL ALLOCATIONS 2,274,526 325,490 68,808 100% $16,279,638
ATTACHMENT B
PERMANENT LOCAL HOUSING ALLOCATION (PLHA)
LIST OF ELIGIBLE ACTIVITIES
Eligible activities for the formula allocations are:
1.The predevelopment, development, acquisition, rehabilitation, and preservation of
multifamily, residential live-work, or rental housing that is affordable to extremely low-,
very low-, low-, or moderate-income households (up to 120 percent of Area Median Income
(AMI), or 150 percent of AMI in High-cost areas, see appendix B for a list of High-cost
areas ), including necessary Operating subsidies.
Note: Predevelopment and/or acquisition must result in the development,
rehabilitation, or preservation of housing, as otherwise there is no actual housing
outcome of the predevelopment or acquisition assistance.
2.The predevelopment, development, acquisition, rehabilitation, and preservation of
Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that
meets the needs of a growing workforce earning up to 120 percent of Area Median Income
(AMI), or 150 percent of AMI in High-cost areas. ADUs shall be available for occupancy
for a term of no less than 30 days. See Appendix B for a list of High-cost areas in
California.
Note: Predevelopment and/or acquisition must result in the development,
rehabilitation, or preservation of Affordable rental and ownership housing, as
otherwise there is no actual housing outcome of the predevelopment or acquisition
assistance.
3.Matching portions of funds placed into Local or Regional Housing Trust Funds.
Matching funds must be utilized as required by PLHA guidelines Section 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. Matching funds must be
utilized as required by PLHA guidelines Section 301(a).
5.Capitalized Reserves for Services connected to the preservation and creation of new
Permanent Supportive Housing.
6.Assisting persons who are experiencing or At risk of homelessness in conformance with 24
Code of Federal Regulations (CFR Section 578.3),including
Rapid rehousing in conformance with federal rules contained in 24 CFR
Section 576.104, except for legal services;
Rental assistance with a term of at least six (6) months (rental arrears is not
eligible);
Street outreach, and other Supportive/case management services in conformance
with federal rules contained in 24 CFR Section 576.101 that allow people to
obtain and retain housing;
Operating and capital costs for navigation centers and emergency shelters, and the
new construction, rehabilitation, and preservation of permanent and transitional
housing.
a.This Activity may include subawards to Administrative Entities as defined in
HSC Section 50490(a)(1-3) that were awarded California Emergency Solutions
and Housing (CESH) Program or Homeless Emergency Aid Program (HEAP)
funds for rental assistance to continue assistance to these households.
b.Applicants must provide rapid rehousing, rental assistance, navigation centers,
emergency shelter, and transitional housing activities in a manner consistent with
the Housing First practices described in 25 CCR, Section 8409, subdivision
(b)(1)-(6) and in compliance with Welfare Institutions Code (WIC) Section
8255(b)(8). An Applicant allocated funds for the new construction, rehabilitation,
and preservation of Permanent supportive housing shall incorporate the core
components of Housing First, as provided in WIC Section 8255(b).
7.Accessibility modifications in Lower-income (up to 80 percent of AMI) Owner-occupied
housing.
8.Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments.
9.Homeownership opportunities, including, but not limited to, down payment assistance.
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 housing development 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 to an Affordable housing project. Matching
funds investments by both the county and the city also shall be a grant or low interest
deferred loan to the Affordable housing project.
PROPOSED ACTIVITY OR ACTIVITIES
FOR YEAR TWO OF THE STATE
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM
City Name: City of Arcadia Date: June 15, 2021
Name and Description of the Eligible Activity or Activities the City would like to
Implement Using PLHA funds:
1. The predevelopment, development, acquisition, rehabilitation, and preservation of
affordable rental and ownership housing that meets the needs of a growing workforce
earning up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High-
cost areas.
2. Assisting persons who are experiencing or at risk of homelessness (activity continued from
prior year).
Budget(s) Proposed for Activity or Activities:
$182,505 in Fiscal Year 2020-21 funds and $283,670 in Fiscal Year 2021-22 will be utilized
to fund both of the activities listed above.
Pertinent Facts and Information about the Priority Need for this Activity or Activities in
your City:
1. Affordable housing at all income levels is needed in the City of Arcadia as outlined in the
City’s latest Regional Housing Needs Assessment (RHNA)
2. Homelessness continues to be a high priority need in the City of Arcadia with over 100
homeless individuals identified in the most recent homeless count.
Please check box to continue implementing PLHA Eligible Activity from prior year
N/A
Submitted by: Tim Schwehr
Date: June 15, 2021
Title: Senior Economic Development Analyst