HomeMy WebLinkAboutResolution 2022-128 N.C.S. 08/01/2022 Resolution No. 2022-128 N.C.S. Page 1
Resolution No. 2022-128 N.C.S.
of the City of Petaluma, California
AUTHORIZING THE CITY MANAGER TO APPLY TO AND EXECUTE AN AGREEMENT FOR FUNDING FROM THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT LOCAL HOUSING TRUST FUND PROGRAM
WHEREAS, the State of California (the “State”), Department of Housing and Community Development
(“Department”) issued a Notice of Funding Availability (“NOFA”) dated 4/5/2022 under the Local Housing Trust Fund (“LHTF”); and WHEREAS, the Department is authorized to provide up to $57 million under the LHTF Program from the
Veterans and Affordable Housing Bond Act of 2018 (Proposition 1) (as described in Health and Safety Code
section 50842.2 et seq. (Chapter 365, Statutes of 2017 (SB 3)) (“Program”); and WHEREAS, Applicant is an eligible Local or Regional Housing Trust Fund applying to the Program to administer one or more eligible activities using Program Funds; and
WHEREAS, the Department may approve funding allocations for the LHTF Program, subject to the terms and conditions of California Health & Safety Code Section 50842.2, the LHTF Program Guidelines, NOFA, Program requirements, the Standard Agreement and other related contracts between the Department and LHTF award recipients; and
WHEREAS, the City of Petaluma established the City of Petaluma Local Housing Trust Fund on November 1, 2021 to enable the City to submit matching grant applications to the Department for development of new affordable multifamily rental housing and authorize the City Manager to execute any LHTF grant agreements; and
WHEREAS, the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378, in that establishing a LHTF does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, and
because the action constitutes an administrative and fiscal activity of the governments which does not involve any commitment to any specific project which that may result in direct or indirect physical changes in the environment, and furthermore any use of LHTF funds will result in its own CEQA analysis. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Petaluma as follows:
1. Declares that the above recitals are true and correct and are incorporated as findings of the City Council,
2. Finds that the proposed action is exempt from the requirements of the California Environmental Quality Act
(CEQA) in accordance with CEQA Guidelines Section 15378, in that establishing a LHTF does not meet
CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, and because the action constitutes an administrative and fiscal activity of the governments which does not involve any commitment to any specific project which that may result in direct or indirect physical changes
in the environment, and furthermore any use of LHTF funds will result in its own CEQA analysis. If Applicant
receives an award of LHTF funds from the Department pursuant to the above referenced LHTF NOFA, it represents and certifies that it will use all such funds on Eligible Projects in a manner consistent and in
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Resolution No. 2022-128 N.C.S. Page 2
compliance with all applicable state and federal statutes, rules, regulations, and laws, including, without limitation, all rules and laws regarding the LHTF Program, as well as any and all contracts Applicant may
have with the Department (“Eligible Project”).
3. The City of Petaluma Local Housing Trust Fund is hereby authorized to act as the trustee in connection with the Department's funds to Eligible Projects pursuant to the above-described Notice of Funding Availability in an amount not to exceed $600,000 (the "LHTF Award").
4. Applicant hereby agrees to match on a dollar-for-dollar basis the LHTF Award pursuant to Guidelines Section 104. Applicant hereby agrees to utilize matching finds on a dollar-for-dollar basis for the same Eligible Project for which Program Funds are used, as required by California Health and Safety Code Section 50843.5(c).
5. Pursuant to Exhibit A of this resolution and the Applicant’s certification in this resolution, the LHTF funds
will be expended only for Eligible Projects and consistent with all program requirements. 6. Applicant shall be subject to the terms and conditions as specified in the Standard Agreement, California Health and Safety Code Section 50842.2 and LHTF Program Guidelines.
7. The City of Petaluma City Manager, Peggy Flynn, is authorized to execute the LHTF Program Application, the LHTF Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the LHTF Award to Applicant, as the Department may deem appropriate.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the
Council of the City of Petaluma at a Regular meeting on the 1st day of August 2022,
by the following vote:
Approved as to
form:
__________________________
City Attorney
AYES: Mayor Barrett, Vice Mayor Pocekay, Barnacle, Fischer, Healy, King, McDonnell
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: ______________________________________________
City Clerk
______________________________________________
Mayor
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Resolution No. 2022-128 N.C.S. Page 3
EXHIBIT A USE OF PROGRAM FUNDS AND MATCHING FUNDS If awarded the requested $600,000 in 2022 Local Housing Trust Fund Program (LHTF) funds from the State of
California Department of Housing and Community Development (HCD), the City of Petaluma Local Housing Trust
Fund (LHTF) will use Program Funds and Matching Funds as follows:
1. Of the $600,000 requested from HCD LHTF Program Funds and the $600,000 City of Petaluma LHTF Matching Funds, 95% will be used to provide a deferred payment permanent financing loan at a simple interest rate of 3 percent per annum to Burbank Housing Development Corporation (Burbank Housing) construction costs related to the Studios at Montero permanent supportive housing project.
The Studios at Montero is located at 5135 Montero Way, Petaluma, CA. The property is two-story with two
adjacent buildings connected by a catwalk. All units intended for residents are the same 207 square feet rooms
with no separate bedroom and a single-use bathroom. The City of Petaluma and Burbank Housing are
partnering to convert the site into a supportive housing project providing permanent homes for 60 people
experiencing homelessness. All 60 of the units would be assisted units dedicated to people who meet the
definition of “Chronically Homeless” and who have household income no higher than 30% of Area Median
Income (AMI.) The Studios at Montero project has been awarded HCD Homekey 2 funding of $13.3M.
Upon its completion, the Studios at Montero will provide housing for over 10% of the chronically homeless
population in Sonoma County identified through the 2020 PIT count.
2. Of the $600,000 requested from HCD LHTF Program Funds and the $600,000 City of Petaluma LHTF Matching Funds, 5% will be used to fund administrative costs of the City of Petaluma LHTF.
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