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HomeMy WebLinkAboutRESOLUTION 2025-104 N.C.S. 07/07/2025Resolution No. 2025-104 N.C.S. Page 1 Resolution No. 2025-104 N.C.S. of the City of Petaluma, California RESOLUTION AUTHORIZING THE CITY MANAGER TO APPLY TO THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT PERMANENT LOCAL HOUSING ALLOCATION (PLHA) PROGRAM TO RECEIVE THE CALENDAR YEAR 2023 PROGRAM ENTITLEMENT ALLOCATION, 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)). WHEREAS, the State of California (the “State”), Department issued a Notice of Funding Availability (“NOFA”) dated October 15, 2024 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; WHEREAS, in accordance with Section 302(c) of the Department’s Local Guide, the City’s PLHA Plan (“Plan”) attached to this Resolution as Exhibit A was approved by Resolution No. 2024-011 N.C.S. on February 5, 2024 and 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 provide community programs; and WHEREAS, this item was agendized 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 4th 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 Docusign Envelope ID: C79DCE30-498A-4B83-AF49-EBCBFEC7DAA3 Resolution No. 2025-104 N.C.S. Page 2 not commit the City to a definite course of action (See City of Irvine v. County of Orange (2013) 221 Cal 4th 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. 3. Authorizes the City Manager or other authorized representative to execute a City of Petaluma PLHA Annual Program Application to receive the Calendar Year 2023 funding allocation, 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 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. 6. Certifies that the City of Petaluma PLHA Program application is attached to this Resolution as Exhibit A, and 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. 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 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 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 Docusign Envelope ID: C79DCE30-498A-4B83-AF49-EBCBFEC7DAA3 Resolution No. 2025-104 N.C.S. Page 3 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 Agreement, the PLHA Program Guidelines and any other applicable SB 2 Guidelines published by the Department. 13. Certifies that the City Manager is authorized to execute the PLHA Program 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. 14. This resolution shall take effect immediately upon its adoption. 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 7th day of July 2025, by the following vote: Approved as to form: __________________________ City Attorney AYES: McDonnell, Barnacle, Cader Thompson, DeCarli, Nau, Quint, Shribbs NOES: None ABSENT: None ABSTAIN: None ATTEST: ______________________________________________ City Clerk ____________________________________________ Mayor Docusign Envelope ID: C79DCE30-498A-4B83-AF49-EBCBFEC7DAA3 No End of Document ***Please note the following change was made in the Amended NOFA*** All Applicants requesting an amendment to the 5-Year Plan with this application must redirect 40% of each allocation year being changed towards a homeownership Activity. Ownership activities are 2,3,4,7,8,9 (activities 2,3,4, & 8 will only count as ownership if the funds will go towards ownership sub activities as opposed to rental housing sub activities including ADU's) n/a Petaluma 2021 PLHA Formula Allocation Amount:n/a §300(a) and (b) Eligible Applicants for the Entitlement and Non-Entitlement formula component described in Section §100(b)(1) and (2) are limited to the metropolitan cities and urban counties allocated a grant for the federal fiscal year 2017 pursuant to the federal CDBG formula specified in 42 USC, Section §5306 and Non-entitlement local governments. Applicant: City of Petaluma Which Allocation(s) are you applying for with this application?2023 Only n/a n/a $121,138 Allowable Local Admin (5%): Allowable Local Admin (5%): Allowable Local Admin (5%): Admin requested? Eligible Applicant Type: EntitlementLocal Government Recipient of PLHA Formula Allocation: Admin requested? Admin requested?2023 PLHA Formula Allocation Amount:$6,057 2022 PLHA Formula Allocation Amount: §302(c)(5) Is the applicant submitting a plan amendment with this application? (If you wish to reallocate more than 10 percent of funds among Activities from the previously approved 5-Year Plan included in the PLHA program Standard Agreement, Exhibit E you must submit an updated plan and resolution approving the new plan) 40% of each allocation being changed must go towards an ownership activity.N/A CA Kshimizu@cityofpetaluma.org Peggy Flynn City: Address: County: Instructions: If the Local Government Recipient of the PLHA Formula Allocation delegated its PLHA formula allocation to another Local Government in any prior round, the Applicant (for which information is required below) continues to be the administering Local Government, which received the award. The PLHA award will be made to the Applicant (upon meeting threshold requirements) and the Applicant is responsible for meeting all program requirements throughout the term of the Standard Agreement. §300 Eligible Applicants 11 English Street §503(b) Applicant certifies that they are in compliance with the State Grants Management Section and are current with any required PLHA Annual Reporting Requirements.Yes Zip Code: 11 English StreetAddress: Karen Shimizu CA City:94952 Yes §302(a) Housing Element compliance: Applicant and Delegating Local Government's if applicable Housing Element was adopted by the Local Government’sgoverning body by the application submittal date and subsequently determined to be in substantial compliance with state Housing Element Law pursuant to Government Code Section 65585. Petaluma Yes Contact Name: Address: Local Government Formula Allocation for Returning Applicants Rev. 10/28/24 This streamlined application form is limited to Applicants who applied for and received an award under one or more of the previous Formula Allocation NOFA's (2020, 2021, 2022, or 2023). Yes If a reallocation of more than 10 percent of funds was made (and Applicant is amending their plan with this application) Applicant has attached an amended Plan and resolution that has been discussed and approved at a publicly-noticed meeting of the governing body. CA Zip:94952 Sonoma CountyState: §302(c)(2) Applicant certifies that submission of the application was authorized by the governing board of the Applicant. §302 Threshold Requirements Title: 94952 §302(b) Applicant or Delegating Local Government has submitted the Annual Progress Report(s) to the Department of Housing and Community Development pursuant to Government Code Section 65400 for the allocations being requested.Yes Did Applicant receive an award under one or more of the previous NOFA's? (2020, 2021, 2022 or 2023) Title:Housing Manager State: Contact Email: City Manager 11 English Street (707) 778-4563 Date Certifications Peggy Flynn Authorized Representative Printed Name City Manager Title On behalf of the entity identified below, I certify that: The information, statements and attachments included in this application are, to the best of my knowledge and belief, true and correct and I possess the legal authority to submit this application on behalf of the entity identified in the signature block. Signature §302(c)(8) If a program income reuse plan was not submitted with the 2020 application, has Applicant attached a program income reuse plan describing howrepaid loans and/or accrued interest will be reused for eligible activities specified in Section 301? File Name:Application and Plan Adoption Reso Petaluma PFlynn@cityofpetaluma.orgAuth Rep. Email:Phone: N/A File Name:Reuse Plan Program Income Reuse Plan describing how repaid loans or accrued interest will be used for eligible activities in Section 301.Uploaded to HCD? Auth Rep Name: N/A N/A §302(c)(4)(D) Evidence that the Plan was authorized and adopted by resolution by the Local jurisdiction and that the public had an adequate opportunity to review and comment on its content. PLHA webpage for Application and Plan Adoption Resolution Document Uploaded to HCD? Contact Phone: PetalumaCity: Yes Zip Code: (707) 778-4345 State: PLHA Page 1 Formula Allocation Application Exhibit ADocusign Envelope ID: C79DCE30-498A-4B83-AF49-EBCBFEC7DAA3