HomeMy WebLinkAboutItem 11b - PLHA Program
DATE: May 7, 2024
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director
By: Jeramie Brogan, Management Analyst
SUBJECT: RESOLUTION NO. 7560 APPROVING PARTICIPATION IN YEAR 4 OF
THE LOS ANGELES URBAN COUNTY PERMANENT LOCAL HOUSING
ALLOCATION (“PLHA”) PROGRAM; IDENTIFYING PROPOSED
ACTIVITIES FOR $966,044 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, 2021-22, and 2022-23, the City of Arcadia was allocated a
combined total of $799,154 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 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. In May
2023, the City Council approved a third resolution, approving the third year of funding,
and incorporating the previous years’ funding. Due to a PLHA requirement that
participating cities have a State-approved Housing Element, Arcadia’s funds have been
inaccessible to date. However, in February 2024, the City fulfilled this requirement, and
Arcadia’s previously held PLHA funding will be released pending the execution of a
reimbursable contract with the Los Angeles County Development Authority (“LACDA”).
For Year 4 of the program, the City of Arcadia’s PLHA allocation is $166,890 in new
funding, which will be added to previous years’ funding balance. It is recommended that
the City Council adopt Resolution No. 7560 approving participation in Year 4 of the Los
Angeles Urban County PLHA Program; identifying the use of $966,044 in combined PLHA
funding to assist 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. 7560 – PLHA Funds
May 7, 2024
Page 2 of 4
BACKGROUND
The PLHA is a Senate Bill 2 (“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, PLHA
funding is first allocated to a regional entity, in this case the LACDA. The funding is then
distributed annually to individual participating cities according to an allocation formula
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 three 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 adding
the optional use of funds for work with the San Gabriel Valley Regional Housing Trust on
a future affordable housing project. In May 2023, the City Council approved Resolution
No. 7494 allocating the carryover of Year 1 and 2 PLHA funding totaling $799,154, which
also included the new Year 3 PLHA funding of $332,979, for the activity of homelessness
services and prevention programs. All of this combined funding has been targeted to
support the City’s ongoing contract with Los Angeles Centers for Alcohol and Drug Abuse
(“LA CADA”) for homeless supportive case management services. The use of any
remaining PLHA funds not spent on homelessness services and prevention programs is
allocated as matching funds for the San Gabriel Valley Regional Housing Trust
(“SGVRHT”).
Until recently, Arcadia’s PLHA funding has been inaccessible due to the City’s lack of a
certified Housing Element. SB 2 states that a city must have an adopted, certified Housing
Element to receive PLHA funding. The City fulfilled the certification requirement in
February 2024, when the California Department of Housing and Community Development
found Arcadia’s Housing Element to be in substantial compliance with State law;
therefore, the City can begin the process of executing a contract with the County to
receive access to all of the funds.
On April 1, 2024, LACDA issued a bulletin listing the Year 4 PLHA funding allocations for
each participating city. Arcadia is listed as eligible to receive $166,890 in Year 4 PLHA
funding. To allocate these funds, the City is required to adopt and submit a resolution to
LACDA by May 31, 2024, listing the program activities that will be funded. A copy of the
April 1, 2024, LACDA bulletin is included as Attachment No. 2. To ensure that the City’s
previously approved Year 1-3 PLHA funds totaling $799,154 remain active and available
Resolution No. 7560 – PLHA Funds
May 7, 2024
Page 3 of 4
for future use, allocation and re-approval of this funding is also recommended as part of
the approval of Year 4 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 continue to allocate its carryover
Year 1-3 PLHA funding totaling $799,154, and allocate its new Year 4 PLHA funding
totaling $166,890, 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 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
SGVRHT. The City’s Year 1 and Year 2 PLHA funds have a spending deadline of
December 31, 2024. Year 3 PLHA funds have a spending deadline of December 31,
2025, and Year 4 funds have a spending deadline of December 31, 2026. Using any
unspent PLHA funds as matching funds is recommended in lieu of allowing these funds
to expire and be returned to the State.
Once the City’s pending contract with LACDA is finalized, reimbursement will be
requested for past homeless supportive case management services provided by LA
CADA, beginning at the start of their contract in July 2022. Current and future contract
costs will be submitted on an ongoing basis, subject to funding availability. Any remaining
PLHA funds not expended by the respective deadlines will be provided as matching funds
to the SGVRHT, in support of their efforts to create affordable housing within the San
Gabriel Valley region.
In its April 1, 2024, bulletin, LACDA acknowledged that PLHA funding has experienced a
significant change from previous years due to real estate transactions in 2022. While
Resolution No. 7560 – PLHA Funds
May 7, 2024
Page 4 of 4
considered to be a permanent funding source, the revenue from SB 2 will vary from year
to year, as revenue is dependent on real estate transactions with fluctuating activity.
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.
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
$966,044 of funding for Years 1-4 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 in 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. If PLHA funding is not
utilized, it is likely that these types of programs would need to be supported with General
Fund monies.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a
project under the California Environmental Quality Act (“CEQA”); and adopt Resolution
No. 7560 approving participation in Year 4 of the Los Angeles Urban County Permanent
Local Housing Allocation (“PLHA”) Program, identifying proposed activities for $966,044
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. 7560
Attachment No. 2: April 1, 2024, LACDA Bulletin
Attachment No. 1
TO: PARTICIPATING CITIES
The purpose of this bulletin is to provide our Participating Cities (Cities) an update on the
Permanent Local Housing Allocation Program (PLHA) funding for Year 4.
The State of California Department of Housing and Community Development released the NOFA
for Year 4 in December 2023 and announced that the County of Los Angeles (County) will
receive an allocation of $9,451,755.00. Funding has experienced a significant change from
previous years due to the real estate transactions in 2022. Cities who have a State-approved
Housing Element are invited to follow the instructions below to program their PLHA Year 4
allocation to implement eligible affordable housing programs. Cities can continue to fund existing
projects using funding from multiple years.
Attachment A provides the new PLHA Year 4 allocation amounts available to Cities that qualify
and wish to utilize these funds for current or new eligible activities. To receive PLHA Year 4
funding, Cities with a State-approved Housing Element who wish to use their available allocation
for PLHA Eligible Activities, must submit a Letter of Intent and proposed Exhibit A form to opt-in
and receive funding. If applicable, the Letter of Intent must include concise details of the
proposed Activity and Sub-Activity and describe how the City will spend the funds by December
31, 2026.
Please consider the complexity of the project being proposed, available resources, and whether
the funding amount can be expended by the expenditure deadline. Because the shared allocation
limits the amount of funding available to each jurisdiction, PLHA may not be the best funding
source for all eligible activities. If you intend to make a change to an existing project that will
reallocate funding by 10% or more, LACDA cannot guarantee a timely reimbursement and you
may experience a delay in funding. If a city does not submit a Letter of Intent, the available
allocation will be retained by the County and reallocated to Countywide program(s).
Community Development Division – Grants Management Unit (CDD-GMU)
Putting Dollar$ into Action
NUMBER:PLHA-24-004 2022 PROGRAM ALLOCATIONS, YEAR 4 FOR THE
PERMANENT LOCAL HOUSING ALLOCATION (PLHA)
PROGRAM FOR URBAN COUNTY PARTICIPATING CITIES
DATE:April 1, 2024 PAGE 1 OF 2
Attachment No. 2
To All Participating Agencies
April 1, 2024
Page Two
Please adhere to the following deadlines to receive funding:
April , 2024 - The Letter of Intent must be completed and submitted to the LACDA
(Attachment E).
April 30, 2024 - Proposed Exhibit A form must be submitted (Attachment C); and
May 31, 2024 - City Council approval resolution must be submitted (Attachment D).
Please be aware that the County cannot issue PLHA funding to Cities until all conditions for
funding and program/regulatory requirements have been met and LACDA receives an executed
agreement for PLHA Year 4 funds from the State. It is also important to note that certain activity
costs for projects receiving PLHA funding are eligible for reimbursement as long as the expenses
are incurred no more than 12-months prior to execution of Standard Agreement between the
State and the County.
Should you need assistance in this matter or have any questions related to the PLHA program,
you may contact JoAnn Eros-Delgado, Contract Management Supervisor at (626) 586-1749 or
JoAnn.Eros@lacda.org or Jenny Salazar, PLHA Specialist, at (626) 586-1633 or
Jenny.Salazar@lacda.org.
Sincerely,
LINDA JENKINS, Director
Community Development Division
Community Development Division – Grants Management Unit (CDD-GMU)
Putting Dollar$ into Action
Linda Jenkins (Apr 1, 2024 15:32 PDT)
Linda Jenkins
pages 1 of 2
ATTACHMENT A
Permanent Local Housing Allocation 2022 Total Urban County Entitlement $9,451,755
Redistricting Population Counts Less Administration (5%)($472,588)
Round 4 Total 2022-2023 to be Allocated $8,979,167
Population Poverty Overcrwding
City 2020 2020 2020 Factor Allocation
AGOURA HILLS 21,048 798 84 0.004225596 $37,942
ARCADIA 57,180 4,784 743 0.018586347 $166,890
AVALON 3,873 415 133 0.001750789 $15,721
AZUSA 48,801 6,073 1,653 0.023627161 $212,152
BELL 34,644 7,441 2,262 0.027056320 $242,943
BELL GARDENS 41,770 11,005 2,925 0.037379286 $335,635
BEVERLY HILLS 33,709 2,998 467 0.011416855 $102,514
CALABASAS 23,762 2,110 163 0.007417324 $66,601
CLAREMONT 35,462 1,521 153 0.007513354 $67,464
COMMERCE 13,412 2,068 551 0.007645583 $68,651
COVINA 48,710 4,417 1,443 0.019556588 $175,602
CUDAHY 23,606 6,513 1,453 0.020951076 $188,123
CULVER CITY 38,913 2,382 688 0.011609730 $104,246
DIAMOND BAR 55,904 3,696 724 0.016224415 $145,682
DUARTE 21,399 1,972 556 0.008360926 $75,074
EL SEGUNDO 16,575 834 118 0.003929255 $35,281
HAWAIIAN GARDENS 14,212 2,782 851 0.010274501 $92,256
HERMOSA BEACH 19,147 803 195 0.004443213 $39,896
HIDDEN HILLS 2,156 165 15 0.000620884 $5,575
IRWINDALE 1,365 115 39 0.000525328 $4,717
LA CANADA-FLINTRIDGE 20,078 664 39 0.003684468 $33,083
LA HABRA HEIGHTS 5,305 104 32 0.000913139 $8,199
LA MIRADA 48,286 2,309 1,263 0.014671267 $131,736
LA PUENTE 39,705 4,932 1,468 0.019668708 $176,609
LA VERNE 32,134 2,572 324 0.009862996 $88,561
LAWNDALE 32,533 3,889 1,543 0.017098129 $153,527
LOMITA 20,212 2,602 385 0.008829422 $79,281
MALIBU 12,961 1,297 43 0.004158768 $37,342
MANHATTAN BEACH 35,064 1,114 122 0.006547411 $58,790
MAYWOOD 27,127 5,484 2,298 0.022491713 $201,957
MONROVIA 37,488 3,301 760 0.013538887 $121,568
RANCHO PALOS VERDES 42,333 1,511 396 0.009169113 $82,331
ROLLING HILLS ESTS 7,279 194 21 0.001270181 $11,405
SAN DIMAS 33,874 2,433 366 0.009937575 $89,231
SAN FERNANDO 24,244 2,252 1,017 0.010965432 $98,460
SAN GABRIEL 39,899 4,643 1,349 0.018672693 $167,665
SAN MARINO 13,028 925 150 0.003837386 $34,457
SANTA FE SPRINGS 18,131 2,184 673 0.008857323 $79,531
SIERRA MADRE 10,829 667 43 0.002679876 $24,063
SIGNAL HILL 11,430 1,465 309 0.005324117 $47,806
SOUTH EL MONTE 20,693 4,433 1,062 0.015048759 $135,125
SOUTH PASADENA 25,478 1,734 496 0.008117279 $72,886
TEMPLE CITY 36,161 3,560 842 0.014212469 $127,616
WALNUT 29,764 1,976 242 0.008113872 $72,856
WEST HOLLYWOOD 35,506 4,106 395 0.013532996 $121,515
WESTLAKE VILLAGE 8,110 371 7 0.001657389 $14,882
TOTAL PARTICIPATING CITIES 1,223,296 123,616 30,860 0.495975899 $4,453,451
GMU/GPPA/GPA/Allocations/PLHA Formula Allocations FY 2022 March 2024- Round 4
pages 2 of 2
ATTACHMENT A
Permanent Local Housing Allocation 2022 Total Urban County Entitlement $9,451,755
Redistricting Population Counts Less Administration (5%)($472,588)
Round 4 Total 2022-2023 to be Allocated $8,979,167