HomeMy WebLinkAboutItem 10b - Los Angeles Urban County Permanent Local Housing Allocation Funds
DATE: May 16, 2023
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director
By: Tim Schwehr, Economic Development Manager
SUBJECT: RESOLUTION NO. 7494 APPROVING PARTICIPATION IN YEAR 3 OF
THE LOS ANGELES URBAN COUNTY PERMANENT LOCAL HOUSING
ALLOCATION (“PLHA”) PROGRAM; IDENTIFYING PROPOSED
ACTIVITIES FOR $799,154 IN PLHA FUNDING; AND AUTHORIZING THE
MAYOR, OR DESIGNEE, TO SIGN A REIMBURSABLE CONTRACT
WITH THE LOS ANGELES COUNTY DEVELOPMENT AUTHORITY
(“LACDA”)
CEQA: Not A Project
Recommendation: Adopt
SUMMARY
In Fiscal Years 2020-21 and 2021-22, the City of Arcadia was allocated a combined total
of $466,175 in Permanent Local Housing Allocation (“PLHA”) Program funding as part of
the Senate Bill (“SB”) 2 legislation signed into law in 2017. The City Council has previously
approved two resolutions, in October 2020 and June 2021, authorizing use of these funds
for homelessness programs and/or towards affordable housing development in
partnership with the San Gabriel Valley Regional Housing Trust. However, due to
extensive delays at the County and State levels, this funding has not yet been made
available to the City. Similarly, the allocation of Year 3 PLHA funding was delayed and is
only now being allocated to the County and its partner cities. For Year 3 of the program,
the City of Arcadia’s allocation is $332,979 in additional PLHA funding.
It is recommended that the City Council adopt Resolution No. 7494 approving
participation in Year 3 of the Los Angeles Urban County PLHA Program; identifying the
use of $799,154 in combined PLHA funding for the activities of assisting persons in
Arcadia who are experiencing or at risk of homelessness and/or as matching funds to the
San Gabriel Valley Regional Housing Trust; and authorizing the Mayor, or designee, to
sign a reimbursable contract with the Los Angeles County Development Authority
(“LACDA”).
Resolution No. 7494 – PLHA Funds
May 16, 2023
Page 2 of 4
BACKGROUND
The PLHA is an SB 2 funded program that was approved by the State legislature in 2017.
It is 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”). 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, but must be used within five years of their original
allocation date.
The City has previously adopted two resolutions relating to PLHA funds. Resolution No.
7336 was adopted in October 2020, approving participation in Year 1 of the program and
allocating $182,505 in funding for homelessness-related programs. Resolution No. 7374
was adopted in June 2021, approving participation in Year 2 of the program and allocating
an additional $283,670 in PLHA funds for homelessness programs and/or towards a
future affordable housing project (specifically mentioning working with the San Gabriel
Valley Regional Housing Trust). However, due to numerous administrative delays and
decisions at both the State and County levels, many cities in Los Angeles County,
including the City of Arcadia, have not yet received, or been authorized by LACDA to use
any of its Year 1 or Year 2 PLHA funds.
The City’s Year 1 and 2 PLHA funding is currently being held up by LACDA based on
their interpretation of a requirement relating to Housing Element compliance. Specifically,
SB 2 authorizing legislation states that a city must have adopted a Housing Element
“determined to be in substantial compliance with state Housing Element Law” in order to
receive PLHA funding. The City’s position is that Arcadia currently meets this requirement
and its Year 1 and 2 PLHA funding should be made available to fund the City’s ongoing
program for homeless supportive case management. LACDA’s position, however, is that
the City must be listed as having a fully certified Housing Element on the State Housing
and Community Development Department website before they will release PLHA funding
to the City. The City is currently discussing and seeking resolution on this issue with both
LACDA and the County Supervisor’s Office to free up these funds. The City has expended
funds towards case management that will need to be backfilled from other sources should
this funding not be released.
On April 6, 2023, LACDA issued a bulletin listing the Year 3 PLHA funding allocations for
each participating city. Arcadia is listed as eligible to receive $332,979 in Year 3 PLHA
funding. To allocate these funds, the City is required to adopt and submit a City Council
resolution to LACDA by June 30, 2023, listing the program activities that will be funded.
A copy of the April 6, 2023, LACDA bulletin is included as Attachment No. 2. To ensure
Resolution No. 7494 – PLHA Funds
May 16, 2023
Page 3 of 4
that the City’s previously approved Year 1 and Year 2 PLHA funds totaling $466,175
remain active and available for future use, allocation and approval of this funding is also
recommended as part of the approval of Year 3 PLHA funds.
DISCUSSION
The SB 2 legislation relating to PLHA funds specifies what eligible activities these funds
can be used to finance. Activities can be broadly categorized as follows:
1. Activities related to the construction or preservation of affordable housing or
supportive housing;
2. Matching funds to regional housing trusts;
3. Homelessness services and prevention programs;
4. Accessibility modifications for lower-income, owner-occupied housing;
5. Acquisition and rehabilitation of foreclosed or vacant homes; and
6. Programs that expand homeownership opportunities including but not limited to
down-payment assistance programs.
Of the eligible activities, it is recommended that the City allocate its carryover Year 1 & 2
PLHA funding totaling $466,175, and its new Year 3 PLHA funding totaling $332,979, for
the activity of homelessness services and prevention programs. Specifically, it is
recommended that these monies be used to fund the City’s ongoing contract with Los
Angeles Centers for Alcohol and Drug Abuse (“LA CADA”) for homeless supportive case
management. It is further recommended that the City Council authorize the use of any
remaining PLHA funds not spent on homelessness services and prevention programs for
matching funds for the San Gabriel Valley Regional Housing Trust (“SGVRHT”). The
City’s Year 1 and Year 2 PLHA funds have a spending deadline of April 2025, with its
Year 3 PLHA funds having a deadline of April 2026. Using any unspent PLHA funds from
the City’s PLHA allocation for this purpose is recommended in lieu of allowing these funds
to expire and be returned to the State.
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.
Resolution No. 7494 – PLHA Funds
May 16, 2023
Page 4 of 4
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 has been allocated a combined
$799,154 in funding for Years 1-3 of the PLHA Program based on the State’s allocation
formula. No additional funding is required to participate in the program. If the City does
NOT request the funds and identify a purpose for them, the funds will be returned to the
State. Participation in the program will result in a positive impact seeing that other existing
funds would not need to be utilized for this portion of homeless case management and/or
future coordination with the San Gabriel Valley Housing Trust.
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 7494 approving
participation in Year 3 of the Los Angeles Urban County Permanent Local Housing
Allocation (“PLHA”) Program; identifying proposed activities for $799,154 in PLHA
Funding; and authorizing the Mayor, or designee, to sign a reimbursable contract with the
Los Angeles County Development Authority (“LACDA”).
Attachment No. 1: Resolution No. 7494
Attachment No. 2: April 6, 2023, LACDA Bulletin
Attachment No. 1
TO:PLHA PARTICIPATING CITIES
This bulletin provides information to our Participating Cities (Cities) on the Permanent Local Housing
Allocation (PLHA) Program and on PLHA Year 3 funding to Cities who meet PLHA regulatory and eligibility
requirements.
We are pleased to announce that the California Department of Housing and Community Development has
announced that the County of Los Angeles (County) will receive an allocation of $18,858,143 for PLHA
Year 3 of this program. Cities who have a State-approved Housing Element are invited to follow the
instructions below to program their PLHA Year 3 allocation to implement eligible affordable housing programs.
Cities can verify compliance with State Housing Element Law pursuant to GC Section 65585 at
https://www.hcd.ca.gov/planning-and-community-development/housing-elements.
Attachment A provides the new PLHA Year 3 allocation amounts available to Cities that qualify and wish
to utilize these funds for current or new eligible activities. To receive PLHA Year 3 funding, Cities with a
State-approved Housing Element who wish to use their available allocation for PLHA Eligible Activities,
must submit a Letter of Intent and proposed Exhibit A form to opt-in and receive funding. If applicable, the
Letter of Intent must include concise details of the proposed Activity and Sub-Activity, and describe how
the City will spend the funds by December 31, 2025.
Please consider the complexity of the project being proposed, available resources, and whether the
funding amount can be expended by the expenditure deadline. Because the shared allocation limits the
amount of funding available to each jurisdiction, PLHA may not be the best funding source for all eligible
activities. If a City does not submit a Letter of Intent, the available allocation will be retained by the County
and reallocated to Countywide program(s).
Please adhere to the following deadlines to receive funding:
1. May 1, 2023 - The Letter of Intent must be completed and submitted to the LACDA.
2. May 31, 2023 - Proposed Exhibit A form must be submitted (Attachment B).
3. June 30,2023 - City Council approval resolution must be submitted (Attachment C - Sample).
23-0005
April 6, 2023
PERMANENT LOCAL HOUSING ALLOCATION (PLHA)
PROGRAM YEAR 3 FUNDING INSTRUCTIONS FOR
PARTICIPATINGCITIES
IMMEDIATELY 1 3
Attachment No. 2