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DATE: June 18, 2018
TO:
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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
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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.
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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
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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
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