HomeMy WebLinkAboutStaff Report 3.A 07/11/2016DATE
July 11, 2016
Agenda Item #3.A
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Sue Castellucci, Housing Administrator
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 Necessary to Implement the Projects and Programs
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. Per California Gov't code 36935, the council
is required to adopt the attached resolution in order for the City to make payments to
subrecipients.
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 2016 -2017 Housing budget
(Exhibit #A) was presented to the City Council and discussed in May, and was approved at the
June 6, 2016 City Council meeting. As of July 1, 2016, the City will enter into subrecipient
agreements with all nonprofits receiving funds for Fiscal Year 2016 -2017.
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 — Housing Program budgets
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 6, 2016 which included the
appropriations for affordable housing programs and projects as specified in Ordinance No. 2577
N.C.S, 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 2016-
2017 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
2016 -2017
HOUSING PROGRAM BUDGET
In Lieu Housing Fund:
Beginning Balance Funds available 7/1/16 $2,204,935
Estimated 16 -17 Revenue $ 550,000
$2,754,935
State Controller's "Clawback" to Successor Agency ($ 1,700,000)
Funds Available for 16 -17 Allocation $ 1,054,935
Annronriations:
PPSC Rental Assistance & Fair Housing $ 93,175
Boys & Girls Club at affordable housing sites 150,000
Administrative Costs 52,000
Intragovernmental Transfers 16,152
Total Appropriations $ 311,327
Balance of Funds 6/30/17 $ 743,608
Commercial Linkage Fund:
Beginning Balance of Funds available 7/1/16 $ 974,520
Estimated 16 -17 Revenue $ 413,000
Funds Available for 16 -17 Allocation $ 1,387,520
Annronriations:
Housing Land Trust of Sonoma County — First Time Homebuyer Admin 35,000
Administrative Costs 25,000
Intragovernmental Transfers 21,189
Total Appropriations $ 81,189
Balance of Funds 6/30/17 $ 1,306,331
Housing Successor Fund:
Beginning Balance of Funds available 7/1/16 $ 404,656
Estimated 16 -17 Revenue $ 147,781
Funds Available for 16 -17 Allocation $ 552,437
Appropriations:
COTS — Supportive Services $ 150,000
in
Rebuilding Together — Rehab Mary Isaak Center
Intragovernmental Transfers
Salary & Benefits
Supplies & Services
Total Appropriations
31,180
78,183
89,843
10,500
$ 350,256
Balance of Funds 6/30/17 $ 202,181