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R112491 City Council Meeting: May 26, 2020 Santa Monica, California RESOLUTION NUMBER 11249 (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF SANTA MONICA AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR PERMANENT LOCAL HOUSING ALLOCATION PROGRAM FUNDING 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 February 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. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. If Applicant receives a grant of PLHA funds from HCD pursuant to the above referenced PLHA NOFA, it represents and certifies that it will use all such funds in a manner DocuSign Envelope ID: 13CEB960-9034-445B-9918-A8E2D916878C 2 consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including without limitation all rules and laws regarding the PLHA Program, as well as any and all contracts Applicant may have with HCD. SECTION 2. Applicant is hereby authorized and directed to receive a PLHA grant, in an amount not to exceed the five-year estimate of the PLHA formula allocations, as stated in Appendix C of the current NOFA [$3,285,096] in accordance with all applicable rules and laws. SECTION 3. Applicant hereby agrees to use the PLHA funds for eligible activities as approved by HCD 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 HCD. SECTION 4. Applicant certifies that, if it subgrants or allocates some or all of its PLHA funds to another entity or entities, its selection process of these subgrantees will be accessible to the public and shall avoid any conflicts of interest. SECTION 5. Pursuant to Applicant’s certification in this resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements. SECTON 6. Applicant 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 PLHA Guidelines Section 302(c)(6)(A),(B) and (C). SECTION 7. Applicant certifies that, if funds are used for the development of an Affordable Rental Housing Development, the City 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 th rough a Promissory Note secured by a Deed of Trust, and a Regulatory Agreement shall restrict occupancy and rents in accordance with a City-approved underwriting of the Project for a term of at least 55 years. DocuSign Envelope ID: 13CEB960-9034-445B-9918-A8E2D916878C 3 SECTION 8. 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 HCD. SECTION 9. The City Council of the City of Santa Monica authorizes the City Manager 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 HCD may deem appropriate. SECTION 10. 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 DocuSign Envelope ID: 13CEB960-9034-445B-9918-A8E2D916878C 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. 11249 (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 DocuSign Envelope ID: 13CEB960-9034-445B-9918-A8E2D916878C