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Home My WebLink AboutRESOLUTION 2024-011 N.C.S. 02/05/2024 DocuSign Envelope ID: FA3D55BE-68A1-4C8C-9A6D-28850159304A Resolution No. 2024-011 N.C.S. of the City of Petaluma, California RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA AUTHORIZING APPLICATION TO THE STATE OF CALIFORNIA HOUSING AND COMMUNITY DEVELOPMENT ("DEPARTMENT") PERMANENT LOCAL HOUSING ALLOCATION PROGRAM TO RECEIVE THE 2022 CITY OF PETALUMA FUNDING ALLOCATION,SUBMISSION OF REVISED 5-YEAR CITY OF PETALUMA PLHA PLAN TO HCD,AND AUTHORIZING THE CITY MANGER TO EXECUTE ANY CONTRACTS FOR PROGRAM WHEREAS, the Department is authorized to provide up to $296 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assistance to Cities and Counties (as described in Health and Safety Code section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)); and WHEREAS, the State of California (the "State"), Department issued a Notice of Funding Availability ("NOFA") dated December 29, 2023 under the Permanent Local Housing Allocation(PLHA) Program; and WHEREAS,the City of Petaluma("Applicant")is an eligible Local government who has applied for program funds to administer one or more eligible activities,or a Local or Regional Housing Trust Fund to whom an eligible Local government delegated its PLHA formula allocation; and WHEREAS, the Department may approve funding allocations for PLHA Program, subject to the terms and conditions of the Guidelines,NOFA,Program requirements,the Standard Agreement,and other contracts between the Department and PLHA grant recipients; and WHEREAS,in accordance with Section 302(c) of the Department's Local Guide, the City's PLHA Program Plan("Plan"), attached to the Resolution as Exhibit A, details the manner in which funds will be used for eligible activities, describes how the Plan is consistent with the programs set forth in the City's Housing Element, and describes how the City will prioritize investments that increase the supply of affordable housing; and WHEREAS,this item was agenized in compliance with state and local laws; and WHEREAS, the proposed action is exempt from the requirements of the California Environmental Quality Act ("CEQA") in accordance with CEQA Guidelines Section 15378, as the action does not meet CEQA's definition of a"project,"because applying for a grant is not a project as it does not commit the City to a definite course of action (See City of Irvine v. County of Orange (2013) 221 Cal 41h 846, 865) and because this action constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment; further any use of the grant funds if received will have its own analysis for compliance with CEQA. NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of Petaluma as follows: 1. Declares the above recitals to be true and correct and are incorporated herein by reference. 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, as the action does not meet CEQA's definition of a"project,"because applying for a grant is not a project as it does not commit the City to a definite course of action (See City of Irvine v. County of Orange (2013) 221 Cal 4ffi 846, 865) and Resolution No. 2024-011 N.C.S. Page 1 DocuSign Envelope ID: FA3D55BE-68A1-4C8C-9A6D-28850159304A because this action constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment; further any use of the grant funds if received will have its own analysis for compliance with CEQA. 3. Authorizes the City Manager or other authorized representative to execute a City of Petaluma 5-Year PLHA Program Plan revision, the PLHA Annual Program Funding Application,the PLHA Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the PLHA grant awarded to Applicant, as the Department may deem appropriate. The amount shall not exceed the five-year estimate of the PLHA formula allocations, as stated in the current NOFA of$1,106,142 in accordance with all applicable rules and laws. 4. Agrees to use the PLHA Program funds for eligible activities as approved by the Department and in accordance with all Program requirements, Guidelines, other rules and laws, as well as in a manner consistent and in compliance with the Standard Agreement and other contracts between the Applicant and the Department. 5. Finds that this item was noticed in compliance with state and local laws and that the public had an adequate opportunity to review and comment on its content. Certifies that the proposed Revised PLHA Program Plan, attached to the Resolution as Exhibit A, is: a. in accordance with Section 302(c)(4)of the PLHA Final Guidelines ("Guidelines"), and b. for a term of five years (2019-2023) and agrees to inform the Department if changes are made to the Plan in each succeeding year of the term of the Plan in accordance with Section 302(c)(5) of the Guidelines. 6. Authorizes and approves the Revised PLHA Program Plan. 7. Certifies that it has or will subgrant some or all of its PLHA funds to another entity or entities. Pursuant to Guidelines Section 302(c)(3), "entity" means a housing developer or program operator but does not mean an administering Local government to whom a Local government may delegate its PLHA Program allocation. 8. Certifies that its selection process of these subgrantees was or will be accessible to the public and avoided or shall avoid any conflicts of interest. 9. Certifies the PLHA Program funds will be expended only for eligible Activities and consistent with all program requirements. 10. Certifies that if funds are used for the acquisition, construction or rehabilitation of for-sale housing projects or units within for-sale housing projects, the grantee shall record a deed restriction against the property that will ensure compliance with one of the requirements stated in Guidelines Section 302(c)(6)(A),(B) and(C). 11. Certifies, if applicable, that if funds are used for the development of an Affordable Rental Housing Development, the Local government shall make PLHA assistance in the form of a low-interest, deferred loan to the Sponsor of the Project, and such loan shall be evidenced through a Promissory Note secured by a Deed of Trust and a Regulatory Agreement shall restrict occupancy and rents in accordance with a Local government-approved underwriting of the Project for a term of at least 55 years. 12. Certifies that Applicant shall be subject to the terms and conditions as specified in the Standard Resolution No. 2024-011 N.C.S. Page 2 DocuSign Envelope ID: FA3D55BE-68A1-4C8C-9A6D-28850159304A Agreement, the PLHA Program Guidelines and any other applicable SB 2 Guidelines published by the Department. 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 Approved as to Council of the City of Petaluma at a Regular meeting on the 5'day of February Docusigned firm: 2024,by the following vote: City Attorney AYES: McDonnell,Barnacle,Cader Thompson,Healy,Nau,Pocekay NOES: None ABSENT: Shribbs ABSTAIN: None DocuSigned by: (IDocuSigned by: ATTEST: �€sreaa ee247 City Clerk Mayor Resolution No. 2024-011 N.C.S. Page 3 DocuSign Envelope ID: FA3D55BE-68A1-4C8C-9A6D-28850159304A Exhibit A Permanent Local Housing Allocation (PLHA) Formula Allocation 5-Year Plan Amendment Form El leg .. o n • State of California Governor, Gavin Newsom Melinda Grant, Undersecretary Business, Consumer Services and Housing Agency Gustavo Velasquez, Director Department of Housing and Community Development Program Design and Implementation, PLHA Program 2020 West El Camino Avenue, Suite 150, Sacramento, CA 95833 Website: https://www.hcd.ca.gov/grants-and-funding/programs-active/permanent- local-housing-allocation Email: PLHA hcd.ca.gov Final Filing Date: June 30, 2027 at 4:00 P.M. PST DocuSign Envelope ID: FA3D55BE-68A1-4C8C-9A6D-28850159304A PLHA Formula-Amendment for years 2020,2021,2022,2023 Rev.01123124 §301 Eligible Activities §301(a)Eligible activities are limited to the following: Select below: §301(a)(1)The predevelopment,development,acquisition,rehabilitation,and preservation of multifamily,residential live-work,rental housing that is affordable No to Extremely low-,Very low-,Low-,or Moderate-income households,including necessary operating subsidies. §301(a)(2)The predevelopment,development,acquisition,rehabilitation,and preservation of affordable rental and ownership housing,including Accessory Dwelling Units(ADUs),that meets the needs of a growing workforce earning up to 120 percent of AMI,or 150 percent of AMI in high-cost areas.ADUs shall be No available for occupancy for a term of no less than 30 days. §301(a)(3)Matching portions of funds placed into Local or Regional Housing Trust Funds. No §301(a)(4)Matching portions of funds available through the Low-and Moderate-Income Housing Asset Fund pursuant to subdivision(d)of HSC Section 34176. No §301(a)(5)Capitalized Reserves for services connected to the preservation and creation of new permanent supportive housing. No §301(a)(6)Assisting persons who are experiencing or At-risk of homelessness,including,but not limited to,providing rapid re-housing,rental assistance, supportive/case management services that allow people to obtain and retain housing,operating and capital costs for navigation centers and emergency Yes shelters,and the new construction,rehabilitation,and preservation of permanent and transitional housing. §301(a)(7)Accessibility modifications in Lower-income Owner-occupied housing. No §301(a)(8)Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments. No §301(a)(9)Homeownership opportunities,including,but not limited to,down payment assistance. No §301(a)(10)Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects,or matching funds invested by a county in an affordable housing development Project in a city within the county,provided that the city has made an equal or greater investment in No the Project.The county fiscal incentives shall be in the form of a grant or low-interest loan to an affordable housing Project.Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan to the affordable housing Project. PLHA Page 1 Formula Allocation Application DocuSign Envelope ID: FA3D55BE-68A1-4C8C-9A6D-28850159304A §302(c)(4)Plan Rev.01123124 §302(c)(4)(A)Describe the manner in which allocated funds will be used for eligible activities. The City intends to utilize PLHA program funding under the direction of PLHA eligible activity categories 301(a)(5)-Assisting persons who are experiencing or At risk of homelessness,including,but not limited to,providing rapid rehousing,rental assistance,supportive/case management services that allow people to obtain and retain housing,operating and capital costs for navigation centers and emergency shelters,and the new construction,rehabilitation,and preservation of permanent and transitional housing.The City acknowledges that if PLHA funds used to provide rapid rehousing,rental assistance,navigation centers,emergency shelter,and transitional housing activities,those activities must be delivered a manner consistent with the Housing First practices described in 25 CCR,Section 8409,subdivision (b)(1)-(6)and in compliance with WIC Section 8255(b)(8).The City also acknowledges that should PLHA funds be allocated for the new construction,rehabilitation,and preservation of Permanent supportive housing,the City shall incorporate the core components of Housing First,as provided in WIC Section 8255,subdivision(b). §302(c)(4)(B)Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income(AMI). Not applicable-the City does not plan to allocate PLHA funds for Allocation Years 2020,2021,2022 or 2023 to affordable housing development. §302(c)(4)(C)Provide a description of how the Plan is consistent with the programs set forth in the Local Government's Housing Element. The City of Petaluma's plan for the utilization of PLHA funding is consistent with the overall goals and objectives of the City's Housing Element in which the City aims to address and meet the housing needs of all residents within the community.In regards to specific programs outlined in the housing element for which the plan for PLHA funding set forth in this application aligns,the City of Petaluma 2023-2031 approved Housing Element identified a goal/program to promote housing opportunities for persons and households with special needs,including homelessness,and related policies to 1)support efforts to prevent homelessness and to rapidly re-house the recently homeless,2)provide housing and support services for persons experiencing homelessness,and 3) facilitate the development of transitional and supportive housing for those moving from homelessness to independent living. Activities Detail(Activities Detail(Must make a selection on Formula Allocation Application worksheet under Eligible Activities,§301)) §302(c)(4)(D)Evidence that the Plan was authorized and adopted by resolution by the Local jurisdiction and that the public had an File Name: Plan Adoption Reso adequate opportunity to review and comment on its content. Uploaded to HCD? Yes Total Percentage of Funds Allocated Calculator(2020-2023) 2020 Allocation 2021 Allocation 2022 Allocation 2023 Allocation Admin 0% Admin 0% Admin 0% Admin 0 Funds Allocated 0% Funds Allocated 0% Funds Allocated 0% Funds Allocated 0 Total Percentage of Funds 0 Total Percentage of Funds 0 Total Percentage of Funds 0 Total Percentage of Funds 0 Allocated for 2020 Allocated for 2021 Allocated for 2022 Allocated for 2023 PLHA Page 1 302(c)(4)Plan