HomeMy WebLinkAboutStaff Report 3.A 06/15/2015DATE: June 15, 2015
Agenda Item #3.A
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Sue Castellucci, Housing Coordinator
SUBJECT: Resolution Approving the Funding Appropriations for the City of Petaluma's
Affordable Housing Program and Authorizing the City Manager to Execute Any
Related Documents.
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Approving the Funding
Appropriations for the City of Petaluma's Affordable Housing Program and Authorizing the City
Manager to Execute Any Documents Necessary to Implement the Projects and Programs.
BACKGROUND
Since 1985 the City Council has developed housing goals to address the broad range of needs
within the community starting with the City's initial Housing Element. Petaluma's Housing
Program is a seasoned one. Since its inception, over 1,760 units have been built, including
senior rentals, any age family rentals and homeownership, as well as two homeless shelters and
five transitional houses. Through the Housing programs, community nonprofits serve over 1,228
low income citizens each year. As community needs change and the City's Housing funds
decrease, the housing program will need to adapt.
DISCUSSION
Annually, the Housing Division sends out a public notice for Requests for Proposals for
programs and /or projects that will utilize funds to implement and address the City Council
Housing goals. Due to the dissolution of the redevelopment agency and the recent "clawback"
from the State Controller's Office, the City now has limited funding options to offer to the
nonprofits who provide vital services and programs to the low income households in Petaluma.
The majority of the community's nonprofit housing and service providers have worked diligently
to adapt to this changing environment by economizing, downsizing, collaborating, and
reinventing their organizations.
Staff reviews each request and prioritizes them by the Housing goals stated in the 2015 -2023
Housing Element and the 2015 -2020 Consolidated Plan. The FY 2015 -2016 Housing budget
(Exhibit #A to the Resolution) was presented to the City Council and discussed in May, and was
initially approved at the May 18, 2015 City Council meeting. As of July 1, 2015, the City will
enter into a subrecipient agreement with all nonprofits receiving funds for Fiscal Year 2015-
2016.
FINANCIAL IMPACTS
The Housing funds committed to the nonprofit agencies are to be used for affordable housing
opportunities and are not expended from the General Fund. Over the past several years, the
amount funded to each program has been reduced by at least 25 -50 %. The nonprofit agencies
are aware that future funding is not guaranteed.
ATTACHMENTS
1. Resolution
2. Exhibit A to the Resolution
2
ATTACHMENT #1
RESOLUTION APPROVING THE FUNDING APPROPRIATION FOR THE CITY OF
PETALUMA'S AFFORDABLE HOUSING PROGRAM AND AUTHORIZING THE
CITY MANAGER TO EXECUTE ANY DOCUMENTS NECESSARY TO IMPLEMENT
THE PROJECTS AND PROGRAMS
WHEREAS, the City Council of the City of Petaluma has developed housing goals to
address the broad range of needs within our community; and
WHEREAS, the City Council of the City of Petaluma adopted the 2015 -2023 Housing
Element on December 1, 2014 with Resolution No. 2014 -190 N.C.S., and
WHEREAS, the City Council of the City of Petaluma adopted the 2015 -2020
Consolidated Plan for the Community Development Block Grant program with Resolution No.
2015 -041 N.C.S., and
WHEREAS, the City budget was adopted on June 1, 2015 which included the
appropriations for affordable housing programs and projects as specified in Ordinance No. xx,
attached hereto as Exhibit A; and
WHEREAS, Requests for Proposals are distributed annually requesting submissions of
programs and projects to implement affordable housing projects and programs which address
City Council goals.
NOW, THEREFORE, BE IT RESOLVED by the City of Petaluma City Council that
those projects and programs, as listed in Exhibit A to this Resolution, be adopted as the 2015-
2016 Housing Program and directs and authorizes the City Manager to execute subrecipient
agreements and related documents to implement those projects and programs.
ATTACHMENT #2
Exhibit A
2015 -2016
HOUSING PROGRAM BUDGET
In Lieu Housing Fund:
Beginning Balance Funds available 7/1/15 $1,179,860
Estimated 15 -16 Revenue $ 748,000
Funds Available for 15 -16 Allocation $1,927,860
Appropriations:
PPSC Rental Assistance & Fair Housing $ 113,175
Administrative Costs 50,000
Intragovernmental Transfers 29,336
Total Appropriations $ 192,511
State Controller's "Clawback" to Successor Agency ($ 1,700,000)
Balance of Funds 6/30/16 $ 37,349
Commercial Linkage Fund:
Beginning Balance of Funds available 7/1/15 $ 903,064
Estimated 15 -16 Revenue $ 355,236
Funds Available for 15 -16 Allocation $ 1,258,300
Appropriations:
Boys & Girls Club - Kids Club at Affordable properties $ 300,000
Housing Land Trust of Sonoma County — First Time Homebuyer Admin 25,000
Administrative Costs 50,000
Intragovernmental Transfers 15,000
Total Appropriations $ 390,000
Balance of Funds 6/30/16 $ 868,300
Housing Successor Fund:
Beginning Balance of Funds available 7/1/15 $ 374,036
Estimated 15 -16 Revenue
$
292,140
Funds Available for 15 -16 Allocation
$
666,176
Appropriations:
COTS — Supportive Services
$
100,000
PEP Housing — Rehab Program
35,500
Intragovernmental Transfers
78,183
Salary & Benefits
79,659
Supplies & Services
23,625
Total Appropriations
$
316,967
Balance of Funds 6130116 $ 349,209
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