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HomeMy WebLinkAboutStaff Report 3.A 06/18/2018p,L�r aw � zss$ DATE: June 18, 2018 TO: ' • ►i Honorable Mayor and Members of the City Council through City Manager Sue Castellucci, Housing Administrat 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. 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 potential "clawback" from the State Controller's Office, the City has limited funding options to offer to the nonprofits who provide vital services and programs to the low income households in Petaluma. 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, money is allocated 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 2018-2019 Housing budget (Exhibit #A) was presented to the City Council and discussed at the May 14, 2018 workshop and was approved at the June 4, 2018 City Council meeting. As of July 1, 2018, the City will enter into subrecipient agreements with all nonprofits receiving funds for Fiscal Year 2018-2019. FINANCIAL IMPACTS The FY 18/19 City Budget was adopted on June 4th, and included the appropriations for affordable housing programs and projects. The Housing funds committed to the nonprofit agencies are to be used for affordable housing opportunities and are not expended from the General Fund. The nonprofit agencies are aware that future funding is not guaranteed. ATTACHMENTS 1. Resolution 2. Exhibit A — Housing Program budgets 2 ATTACHMENT #I 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. 2018-081 N.C.S., and WHEREAS, the City budget was adopted on June 4, 2018 which included the appropriations for affordable housing programs and projects as specified in Ordinance No. 2653 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 2018- 2019 Housing Program and directs and authorizes the City Manager to execute subrecipient agreements and related documents to implement those projects and programs. 3 ATTACHMENT #2 Exhibit A 2018-2019 HOUSING PROGRAM BUDGET In Lieu Housing Fund: Beginning Balance Funds available 7/1/18 $4,098,929 Estimated 18-19 Revenue $ 258,000 State Controller's "Clawback" to Successor Agency Funds Available for 18-19 Allocation Appropriations: PPSC Rental Assistance & Fair Housing PEP Housing — rehabilitation repair at 575 Vallejo Committee on the Shelterless PEP Housing — pre-dev funds for 951 PBS Administrative Costs Intragovernmental Transfers Total Appropriations Balance of Funds 6/30/18 Commercial Linkage Fund: . Beginning Balance of Funds available 7/1/18 Estimated 18-19 Revenue Funds Available for 18-19 Allocation Appropriations: Housing Land Trust of Sonoma County — Fust Time Homebuyer Admin Housing Land Trust — subsidy for older FTHB property Administrative Costs Intragovernmental Transfers Total Appropriations Balance of Funds 6/30/18 $4,356,929 ($1,700,000) $ 2,656,929 $ 95,000 88,000 80,000 60,000 88,500 17,992 $ 433,492 $ 2,223,437 $ 1,277,341 $ 228,458 $ 1,505,799 60,000 75,000 48,000 7,329 $ 190,329 $ 1,315,470 4 Housing Successor Fund: Beginning Balance of Funds 7/1/18 Estimated 18-19 Revenue Funds Available for 18-19 Allocation Apnronriations: Intragovernmental Transfers Salary & Benefits Supplies & Services Total Appropriations Balance of Funds 6/30/18 $ 180,706 $ 200,000 $ 380,706 95,365 98,636 37,400 $ 231,401 $ 149,305 5