R112481
City Council Meeting: May 26, 2020 Santa Monica, California
RESOLUTION NUMBER 11248 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF SANTA MONICA
AUTHORIZING AND ADOPTING THE 302(C)(4) PLAN FOR THE PERMANENT LOCAL
HOUSING ALLOCATION PROGRAM FOR FUNDING ALLOCATION YEARS 2019-2023
WHEREAS, the State of California (“State”), Department of Housing and Community
Development (“HCD”) is authorized to provide up to $195 million under the Senate Bill 2
Permanent Local Housing Allocation (“PLHA”) 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, HCD issued a Notice of Funding Availability (“NOFA”) dated 02/26/2020
under the PLHA Program; and
WHEREAS, the City of Santa Monica (“City” or “Applicant”) is an eligible Local government
applying for the program to administer one or more eligible activities; and
WHEREAS, HCD may approve funding allocations for the PLHA Program, subject to the
terms and conditions of the PLHA Guidelines, NOFA, Program requirements, the Standard
Agreement, and other contracts between HCD and PLHA grant recipients; and
WHEREAS, Section 302(c)(4) of the PLHA Guidelines requires applicants to submit a plan
detailing the manner in which allocated funds will be used, 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, and a description of how the Plan is
consistent with the programs set forth in the Local government’s Housing Element; and
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WHEREAS, Section 302(c)(4) of the PLHA Guidelines also requires that the plan be
authorized and adopted by resolution by the Local government and that the public should have
an adequate opportunity to review and comment on the content of the plan; and
WHEREAS, City staff prepared a plan consistent with the requirements of Section
302(c)(4) of the PLHA Guidelines (“302(c)(4) Plan”) and shared it with the public on May 6, 2020.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES
RESOLVE AS FOLLOWS:
SECTION 1. The document attached hereto marked as Exhibit A is hereby authorized and
adopted as the 302(c)(4) Plan for Funding Allocation Years 2019-2023 for the City of Santa
Monica.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth
and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
___________________________
GEORGE S. CARDONA
Interim City Attorney
Exhibit A: 302(c)(4) Plan for Funding Allocation Years 2019-2023
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City of Santa Monica Housing Division
Permanent Local Housing Allocation
302(c)(4) Plan
(Funding Allocation Years 2019-2023)
1
Public Input Opportunity
On February 26, 2020, the State of California Department of Housing and Community
Development (“HCD”) released a Notice of Funding Opportunity for the Permanent Local
Housing Allocation (“PLHA”) program. As an entitlement jurisdiction, the City of Santa
Monica is eligible for grant funding through the program’s formula component. The
formula allocates $547,516 to the City for Funding Allocation Year 2019 and an estimated
$3,285,096 over five years. Actual funding in future years will vary based on the amount
of total PLHA funding.
Section 302 of the PLHA Final Guidelines identifies the threshold requirements
jurisdictions must meet to participate in the funding formula allocation. The City prepared
the attached Plan in accordance with Section 302(c)(4) to meet the threshold
requirements and to inform the public how the City intends to spend the allocation of
PLHA funds. The Plan uses the template form provided by HCD.
The 302(c)(4) Plan establishes that the City intends to spend the allocation of PLHA funds
for the predevelopment, development, acquisition, rehabilitation, and/or preservation of
multi-family rental housing affordable to extremely low-, very low-, or low-income
households and in accordance with the City’s Housing Trust Fund Plan and Guidelines,
as well as in accordance with the PLHA Final Guidelines.
Public comments on the Plan can be submitted by e-mail to smhousing@smgov.net with
the subject line “PLHA Plan” prior to May 25, 2020. Staff anticipates presenting a final
draft Plan to City Council at the May 26th meeting.
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§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's Housing Element contains the goal of producing housing for all income categories (Goal 2.0), including objectives to develop new affordable housing finance programs to
enable continued provision of technical and financial assistance for housing production (Objective 2.c) and to facilitate the development of special needs housing (Objective 2.f). Other
goals in the Housing Element include to protect the existing supply of affordable housing (Goal 3.0) and rehabilitate and continue to maintain the existing housing stock (Goal 4.0) with
a focus on low income housing (Objective 4.a). Yet another goal is to provide housing assistance and supportive services to very low-, low-, and moderate-income households and
households with special needs (Goal 5.0), including facilitating the reduction of the number of homeless individuals living on the streets of Santa Monica through the provision of a
range of housing options, with an emphasis on affordable, permanent supportive housing (Objective 5.f). The City will use 100% of its PLHA funds for Activity 301(a)(1), which is
consistent with all of these goals, objectives, and related programs.
§301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-,very
low-, low-, or moderate-income households, including necessary Operating subsidies.
§302(c)(4)(E)(i) Provide a description of how allocated funds will be used for each proposed Affordable Rental Housing Activity.
§302(c)(4) Plan Rev. 2/26/20
§302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.
The City of Santa Monica ("City") plans to use PLHA funds for the predevelopment, development, acquisition, rehabilitation, and/or preservation of multi-family rental housing affordable
to extremely low-, very low-, or low-income households. For Funding Allocation Year 2019, a specific development has been identified: a 58-residence, permanent supportive,
multifamily rental housing project. For future Funding Allocation Years, the City will allocate PLHA funds to multi-family rental housing developments proposed by non-profit affordable
housing developers requesting Housing Trust Fund loans.
The City will use PLHA funds in accordance with its own Housing Trust Fund Plan and Guidelines, as well as in accordance with the PLHA Final Guidelines.
§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).
The rental housing development to be assisted with Funding Allocation Year 2019 PLHA funds will be occupied by households with incomes of no more than 30% AMI. With the City's
loan, 57 new apartments that are restricted to households making no more than 30% AMI will be built. (The additional apartment is a manager's residence that will be occupied by a
household with an income up to 80% of AMI.)
Future years' developments will be funded in accordance with the City's Housing Trust Fund Guidelines, which restrict funding to assist units that will be occupied by households with
incomes of no more than 80% AMI. Furthermore, certain sources of funding in the City's Housing Trust Fund restrict funding further to assist units that will be occupied by households
with incomes of no more than 60% AMI. When it has the option to assist units for households with incomes of no more than 60% AMI and those with incomes between 60% and 80%
AMI, the City will prioritize the PLHA funds to the former.
Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301))
The PLHA funds for Funding Allocation Year 2019 will be used to make a gap loan for new construction of a 58-residence, permanent supportive, multifamily rental housing
development. PLHA funds for future Funding Allocation Years will be used to make gap loans to multifamily rental housing developments proposed by non-profit affordable housing
developers requesting Housing Trust Fund loans.
Funding Allocation Year 2019 2019 2020 2021 2022 2023
Complete the table below for each proposed Affordable Rental Housing Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more
than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual
funding allocated to the Activity one time (to avoid double counting).
198
§302(c)(4)(E)(i) Percentage of
Funds Allocated for the
Proposed Affordable Rental
Housing Activity
100% 100% 100% 100% 100%
§302(c)(4)(E)(ii) Area Median
Income Level Served 30% 80% 80% 80% 80% 80%
91 91 91 91
TOTAL
518§302(c)(4)(E)(ii) Unmet share of
the RHNA at the AMI Level
§302(c)(4)(E)(ii) Projected
Number of Households Served 5 7 1 3 53 53 53 5
63 91
PLHA Page 1 302(c)(4) Plan
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§301(a)(6) 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.
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.
The affordable housing development to be assisted by Funding Allocation Year 2019 is in the process of obtaining entitlements. The Sponsor plans to apply for Multifamily Housing
Program funding in October 2020 and 4% tax credits in February 2021. Construction is anticipated to start in August 2021.
The City has committed funding from its Housing Trust Fund to 11 developments of affordable multi-family rental housing over the last three years, with some developments receiving
commitments of both acquisition/predevelopment financing and construction/permanent financing. The City has an annual revenue source intended for affordable housing
development and rehabilitation/preservation, and expects applications for Housing Trust Fund assistance to continue, providing a steady pipeline of opportunities to use PLHA funding
to develop or preserve affordable multi-family rental housing in a timely way.
§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 available for occupancy for a term of no less than
30 days.
55 Years 55 Years 55 Years 55 Years 55 Years 55 Years
§302(c)(4)(E)(iv) Period of
Affordability for the Proposed
Affordable Rental Housing
Activity (55 years required for
rental housing projects)
55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years
§301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds.
§301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing.
§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.
§301(a)(5) Capitalized Reserves for Services connected to the preservation and creation of new permanent supportive housing.
§301(a)(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments.
§301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance.
§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 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 2 302(c)(4) Plan
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Adopted and approved this 26th day of May 2020.
__________________________
Kevin McKeown, Mayor
I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby
certify that Resolution No. 11248 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 26th day of May 2020, by the following vote:
AYES: Councilmembers Himmelrich, Davis, Jara, Morena, Winterer
Mayor Pro Tem O’Day, Mayor McKeown
NOES: None
ABSENT: None
ATTEST:
_____________________________________
Denise Anderson-Warren, City Clerk
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