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HomeMy WebLinkAboutD-1 Staff Report - Public Hearing for PLHA fundsPLHA Year 4 Allocation June 3, 2024 Page 1 PUBLIC HEARING D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: LUCY DEMIRJIAN, SENIOR PROJECT MANAGER DATE: JUNE 3, 2024 SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING PARTICIPATION IN THE LOS ANGELES URBAN COUNTY PERMANENT LOCAL HOUSING ALLOCATION PROGRAM BACKGROUND: In 2017, the State of California approved Senate Bill (SB 2), which created the Building Homes and Jobs Act and the Permanent Local Housing Allocation (PLHA) program. The PLHA program is the State’s first permanent source of funding for affordable housing, something cities have not had since the elimination of Redevelopment. Revenue is generated through recording fees on real estate transactions and, therefore, will vary from year to year depending on activity. The PLHA funds, allocated by the County of Los Angeles, provides a stable funding source for local governments to address affordable housing stock shortages by increasing the supply of affordable housing, increasing assistance to affordable owner-occupied workforce housing, assisting persons experiencing or at risk of homelessness, facilitating housing affordability; and promoting projects and programs to meet the local government’s unmet share of regional housing needs allocation. The City of Azusa has been allocated $212,152 for the PLHA Year 4 program. 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. Otherwise, the allocations will be used to fund Countywide programs. RECOMMENDATION: Approved City Council June 3, 2024 PLHA Year 4 Allocation June 3, 2024 Page 2 ANALYSIS: On June 5, 2023, in accordance with Article II of the Azusa Municipal Code, the City Council adopted a resolution proclaiming the existence or threatened existence of a local emergency due to the impacts of the homeless crisis. The City Council adopted resolutions extending the emergency declaration every 60 days since, with the most recent extension adopted April 15, 2024 and pending extension on June 3, 2024. The emergency declaration allows the City to take necessary action in response to impacts of the escalating homelessness crisis. The declaration provides the ability to waive standard procurement procedures to expeditiously contract for needed services, material and labor. As the City moves forward with the development of the Azusa Resource Center to assist persons experiencing homelessness locally, the following eligible activities are recommended to be funded by PLHA Year 4 allocation: 1.Resource Center Operations: Portion of contract for administration, 24/7 support services, and case management for local interim housing project in Azusa. Total funding proposed: $212,152 of $212,152 total annual funds The public hearing notice was published on April 15, 2024 in the San Gabriel Valley Tribune. FISCAL IMPACT: The PLHA funds are restricted funds provided by the California State Department of Housing and Community Development and will supplement the city’s efforts to address the homelessness crisis. No matching funds are required. Year 4 funds must be expended by December 31, 2026. It is recommended City Council: 1) Open the public hearing, receive testimony and closed public hearing; 2)Review and adopt the following Resolution No. 2024-C26: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, APPROVING PARTICIPATION IN THE LOS ANGELES URBAN COUNTY PERMANENT LOCAL HOUSING ALLOCATION PROGRAM BY AUTHORIZING THE MAYOR, OR HIS/HER DESIGNEE, TO SIGN A REIMBURSABLE CONTRACT WITH THE LOS ANGELES COUNTY DEVELOPMENT AUTHORITY (LACDA) ACTING ON BEHALF OF THE COUNTY 3)Authorize the City Manager to execute the grant Agreement between the City of Azusa and the California State Department of Housing and Community Development in a form acceptable to the City Attorney. PLHA Year 4 Allocation June 3, 2024 Page 3 Prepared By: Reviewed and Approved: Lucy Demirjian Sergio Gonzalez Senior Project Manager City Manager Attachment: 1. Resolution No. 2024-C26 Upon Council approval and once the agreement is fully executed, staff will prepare a budget amendment and increase the budget by $212,152 under account 2810110005-XXXX for resource center operational cost. RESOLUTION NO. 2024-C26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, APPROVING PARTICIPATION IN THE LOS ANGELES URBAN COUNTY PERMANENT LOCAL HOUSING ALLOCATION PROGRAM BY AUTHORIZING THE MAYOR, OR HIS/HER DESIGNEE, TO SIGN A REIMBURSABLE CONTRACT WITH THE LOS ANGELES COUNTY DEVELOPMENT AUTHORITY (LACDA) ACTING ON BEHALF OF THE COUNTY WHEREAS, Senate Bill (SB 2) created the Building Homes and Jobs Act and the Permanent Local Housing Allocation (PLHA) Program, which is the first permanent source of funding for affordable housing; and WHEREAS, revenue is generated through recording fees on real estate transactions and, therefore, will vary from year to year depending on activity; and WHEREAS, the PLHA funds, allocated by the County of Los Angeles, provides a stable funding source for local governments to address affordable housing stock shortages by increasing the supply of affordable housing, increasing assistance to affordable owner-occupied workforce housing, assisting persons experiencing or at risk of homelessness, facilitating housing affordability; and promoting projects and programs to meet the local government’s unmet share of regional housing needs allocation; and WHEREAS, the City o f Azusa desires to participate in the Los Angeles Urban County PLHA Program; and WHEREAS, the City of Azusa authorizes the execution of a of a Reimbursable Contract with the County of Los Angeles in order to receive said PLHA funds; and WHEREAS, the City Council of the City of Azusa authorizes County staff to administer all aspects of the PLHA on behalf of the City for the eligible activity: Resource Center Operations and Support Services: Administration and 24/7 support services and case management for the local interim housing project in the City of Azusa. These funds will go toward funding a portion of the annual contract. Total funding proposed: $212,152 of $212,152 total annual funds NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCLL OF THE CITY OF AZUSA AS FOLLOWS: SECTION 1. The City Council authorizes the Mayor, or his/her designee, to execute any and all documents necessary for participation in the Los Angeles Urban County PLHA Program on behalf of the City of Azusa. Attachment 1 PASSED, APPROVED and ADOPTED this 3rd day of June, 2024. Robert Gonzales Mayor ATTEST: Jeffrey Lawrence Cornejo, Jr. City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 2024-C26 was duly adopted by the City Council of the City of Azusa, at a meeting thereof held on the 3rd day of June, 2024, by the following vote of the Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: Marco A. Martinez City Attorney Best Best & Krieger LLP