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R11523City Council Meeting: May 9, 2023 Santa Monica, California RESOLUTION NUMBER _______ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR LOCAL HOUSING TRUST FUND PROGRAM MATCHING GRANT FUNDING WHEREAS, the State of California (the "State"), Department of Housing and Community Development (the "Department") is authorized to provide up to $53 million under the Local Housing Trust Fund ("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"); WHEREAS, the Department issued a Notice of Funding Availability ("NOFA") dated March 7, 2023, under the LHTF Program; WHEREAS, the City 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 Health and 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. NOW, THEREFORE, BE IT RESOLVED THAT: SECTION 1. If the City of Santa Monica ("City") 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 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 City may have with the Department. 11523 DocuSign Envelope ID: 3FEF1BFF-0017-452D-8552-739B3D40A475 SECTION 2. The City is hereby authorized to act as the manager 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 $5,000,000 (the "LHTF Award"). SECTION 3. The City hereby agrees to match on a dollar-for-dollar basis the LHTF Award pursuant to Guidelines Section 104, and the City hereby agrees to utilize matching funds on a dollar-for-dollar basis for the same Eligible Project for which Program Funds are used, as required by Health and Safety Code Section 50843.5(c). SECTION 4. Pursuant to the City of Santa Monica Housing Division Local Housing Trust Fund Expenditure Plan (Exhibit A) and the City's certification in this resolution, the LHTF funds will be expended only for Eligible Projects and consistent with all program requirements. SECTION 5. The City shall be subject to the terms and conditions as specified in the Standard Agreement, Health and Safety Code Section 50842.2, and LHTF Program Guidelines. SECTION 6. The City Manager 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 City, as the Department may deem appropriate. SECTION 7. 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: DOUGLAS SLOAN City Attorney DocuSign Envelope ID: 3FEF1BFF-0017-452D-8552-739B3D40A475 Exhibit A City of Santa Monica Housing and Human Services Division Local Housing Trust Fund Expenditure Plan The City of Santa Monica (“City”) commits to use Local Housing Trust Fund (“LHTF”) Program Funds and Matching Funds as follows: •100% of Program Funds and Matching Funds received will be spent to provide construction/permanent financing loans at simple interest rates of no higher than three percent per annum with deferred payments based on residual receipts, for payment of predevelopment costs, acquisition, construction, or rehabilitation of multifamily rental housing serving Lower-Income (80% of Area Median Income (“AMI”)), Very Low-Income (50% of AMI), and Extremely Low-Income Households (30% of AMI). •At least 30% of Program Funds and Matching Funds received will be spent on assistance to Extremely Low-Income Households. •100% of Program Funds and Matching Funds received will be spent on loans for the new construction of multifamily rental housing developments with average household income restrictions of no more than 60% of AMI. •No more than 5% of Program Funds and Matching Funds received will be spent on administrative expenses. All activities and projects funded by Santa Monica’s LHTF Program Funds and Matching Funds will be located within the City. To meet the Matching Funds requirement of the LHTF Program, the City will contribute City-owned land and/or matching funds from the Redevelopment Replacement Housing Trust Fund, for which the funding sources are: 1) transaction and use taxes approved by Measure GSH and 2) 80% of the loan repayments owed by the former Santa Monica Redevelopment Agency to the City, or other locally-generated funds, which are dedicated and restricted for housing use solely by City action and not by state or federal law. DocuSign Envelope ID: 3FEF1BFF-0017-452D-8552-739B3D40A475 Adopted and approved this 9th day of May 2023. Gleam Davis, Mayor I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that Resolution No. _______(CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 9th day of May 2023, by the following vote: AYES: Councilmembers de la Torre, Brock, Zwick Mayor Pro Term Negrete, Mayor Davis NOES: None ABSENT: Councilmembers Torosis, Parra ATTEST: Denise Anderson-Warren, City Clerk 11523 DocuSign Envelope ID: 3FEF1BFF-0017-452D-8552-739B3D40A475