HomeMy WebLinkAboutStaff Report 3.B 06/19/2017DATE: June 19, 2017
Agenda Item #3.B
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. 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 1,300 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 3 693 5, 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 "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. In order to build up reserves in both the In Lieu Housing Fund and the
Commercial Linkage Housing Fund, staff allocates funds according to estimated future revenue
knowing that the revenue received is only contingent on how much development is constructed
during the fiscal year.
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 2017 -2018 Housing budget
(Exhibit #A) was presented to the City Council and discussed at the May 8, 2017 workshop and
the May 15, 2017 City Council meeting, and was approved at June 5, 2017 City Council
meeting. As of July 1, 2017, the City will enter into subrecipient agreements with all nonprofits
receiving funds for Fiscal Year 2017 -2018.
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
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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 the 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 5, 2017 which included the
appropriations for affordable housing programs and projects as specified in Ordinance No. 2610
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 2017-
2018 Housing Program and directs and authorizes the City Manager to execute subrecipient
agreements and related documents to implement those projects and programs.
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Exhibit A
2017 -2018
HOUSING PROGRAM BUDGET
In Lieu Housing Fund:
ATTACHMENT #2
Beginning Balance Funds available 7/1/17 $2,583,044
Estimated 17 -18 Revenue $ 900,000
$3,483,044
State Controller's "Clawbacic" to Successor Agency ($1,700,000)
Funds Available for 17 -18 Allocation $ 1,783,044
Annronriations:
PPSC Rental Assistance & Fair Housing $ 80,000
Boys & Girls Club at affordable housing sites 80,000
Committee on the Shelterless 150,000
Administrative Costs 52,000
Intragovernmental Transfers 16,152
Total Appropriations $ 378,152
Balance of Funds 6/30/18 $ 1,404,892
Commercial Linkage Fund:
Beginning Balance of Funds available 7/1/17 $ 1,277,341
Estimated 17 -18 Revenue $ 228,458
Funds Available for 17 -18 Allocation $ 1,505,799
Anoronriations:
Housing Land Trust of Sonoma County — First Time Homebuyer Admin 60,000
Administrative Costs 25,000
Intragovernmental Transfers 12,538
Total Appropriations $ 97,538
Balance of Funds 6/30/18 $ 1,408,261
Housing Successor Fund:
Beginning Balance of Funds available 7/1/17 $ 133,829
Estimated 17 -18 Revenue $ 136,500
Funds Available for 17 -18 Allocation
$ 270,329
0
Appropriations:
Intragovernmental Transfers 88,939
Salary & Benefits 98,038
Supplies & Services 8,400
Total Appropriations $ 195,377
Balance of Funds 6/30/18 $ 77,952