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HomeMy WebLinkAboutReso 2024-162 RESOLUTION NO. 2024-162 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE APPLICATION AND ADOPTING THE PLHA PLAN FOR THE PERMANENT LOCAL HOUSING ALLOCATION 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 of Housing and Community Development (“Department”) issued a Notice of Funding Availability (“NOFA”) dated 12/29/2023 under the Permanent Local Housing Allocation (PLHA) Program; and WHEREAS, the City of Chula Vista 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. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that if Applicant receives a grant of PLHA funds from the Department pursuant to the above referenced PLHA NOFA, it represents and certifies that it will use all such funds 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 PLHA Program, as well as any and all contracts Applicant may have with the Department. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that 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 B of the current NOFA, $6,356,898.00 in accordance with all applicable rules and laws. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that Applicant hereby 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. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that pursuant to Section 302(c)(4) of the Guidelines, Applicant’s PLHA Plan for the 2019-2023 Allocations is attached to this resolution as Exhibit 1, incorporated herein by reference, and Applicant hereby adopts this PLHA Plan and certifies compliance with all public notice, public comment, and public hearing requirements in accordance with the Guidelines. Docusign Envelope ID: 94975AF2-7FEF-44A9-95E0-887E8F496F09 Resolution No. 2024-162 Page No. 2 BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, 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. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the City Manager, or designee, 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. [SIGNATURES ON THE FOLLOWING PAGE] Docusign Envelope ID: 94975AF2-7FEF-44A9-95E0-887E8F496F09 Resolution No. 2024-162 Page No. 3 Presented by Approved as to form by Stacey Kurz Marco A. Verdugo Director of Housing and Homeless Services City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 6th day of August 2024 by the following vote: AYES: Councilmembers: Chavez, Gonzalez, Morineau, Preciado, and McCann NAYS: Councilmembers: None ABSENT: Councilmembers: None John McCann, Mayor ATTEST: Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2024-162 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 6th day of August 2024. Executed this 6th day of August 2024. Kerry K. Bigelow, MMC, City Clerk Docusign Envelope ID: 94975AF2-7FEF-44A9-95E0-887E8F496F09 Funding will be allocated to support the operations of the homeless bridge shelter and/or other emergency housing and wrap-around supportive services, which may include case management, street outreach, housing navigation, meals, laundry, bathroom/shower and laundry facilities as well as coordinated service linkages. Improvements include the installation of water, sewer, electrical, grading and foundation. For the remainder of the years, funding will be allocated to support the operations of the homeless bridge shelter wrap-around supportive services with include case management, housing navigation, meals, laundry, bathroom/shower and laundry facilities as well as coordinated service linkages. Emergency Shelter Operating and Supportive /Case Manageme §302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for the proposed Activity. §302(c)(4)(E)(ii) Unmet share of the RHNA at AMI Level Note: complete for year 2019 & 2020 only N/A N/A 0 30% 30% 30% Type of Activity for Persons Experiencing or At Risk of Homelessness Emergency Shelter Operating and Supportive/ Case Managemen §301(a)(5) Capitalized Reserves for Services connected to the preservation and creation of new permanent supportive 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. Emergency Shelter Operating and Supportive /Case Manageme Emergency Shelter Operating and Supportive /Case Manageme Emergency Shelter Operating and Supportive /Case Manageme TOTAL§302(c)(4)(E)(ii) Area Median Income Level Served 30% 30% §302(c)(4)(E)(i) Percentage of Funds Allocated for the Proposed Activity 100.00% 100.00% 100.00% 100.00% 100.00% Funding Allocation Year 2019 2020 2021 2022 2023 Complete the table below for each proposed 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). §301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds. §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. §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. §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) Plan Rev. 5/7/21 §302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities. §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). Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301)) The City of Chula Vista is proposing 100% of its PLHA funding towards housing opportunities for those earning up to 30 percent of the San Diego County Area Median Income (AMI) through funding of a minimum 65 bed Bridge Shelter as well as associated wrap-around services for homeless persons. In response to the City's declaration of a shelter crisis in 2018 and the public health crisis of COVID-19, Chula Vista intends to prioritize its PLHA funding to fund in part the operation of a Bridge Shelter that will provide an opportunity for those most vulnerable within the community safe and stable shelter. Chula Vista will continue to seek funding for other activities as described based upon leveraging and the most efficient and effective use of various funding sources that may be available at that time. Use of PLHA funds for this unmet housing need through beds in a Bridge Shelter is consistent with the City’s 2013-2021 Certified Housing Element. PLHA funding will only be allocated to an activity (e.g. homeless shelter) seeking to benefit households that are homeless with household incomes at or less than 30% of the Area Median Income services and, as such, serving the homeless meets the requirement to prioritize investments that increase the supply of housing for households with incomes at or below 60% AMI. The City has experience in leveraging HOME funds and Housing Successor funds to support acquisition and rehabilitation and new construction projects serving households at 30% to 60% AMI that have been funded with tax credits, Multifamily Housing Revenue bonds, State Multifamily Housing funds and other state and county funds. This existing plan will be utilized for administering PLHA funds as well. The funding of homeless services and shelters requires the leveraging of multiple layers of financing. The City and its Housing Authority proposes to combine its available CDBG, ESG, HOME and remaining Housing Successor funds with PLHA funds to maximize the services and beds available. As outlined within Chula Vista's 2013 Housing Element, Objective H-6 specifically calls for the City to "promote the development of a variety of housing choices, coupled with appropriate services, to meet the needs of special population groups, including the homeless, those “at-risk” of becoming homeless, persons with disabilities, and seniors." With over 312 homeless persons within Chula Vista as of the 2020 Point in Time Count and 68% of those being unsheltered and as further detailed within the Housing Element there is a significant gap of the number of unsheltered within the community and the beds available for the general population of homeless. §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. PLHA Page 1 302(c)(4) Plan Resolution No. 2024-162 Page No. 4 Exhibit 1 Docusign Envelope ID: 94975AF2-7FEF-44A9-95E0-887E8F496F09 §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. §301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance. §301(a)(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments. §302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity. 325 §302(c)(4)(E)(iv) Period of Affordability for the Proposed Activity (55 years required for rental housing projects) N/A N/A N/A N/A N/A §302(c)(4)(E)(ii) Projected Number of Households Served 65 65 65 65 65 §301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing. The homeless bridge shelter is currently under construction and is scheduled to be complete by January 2023. A qualified shelter operator has been selected and is currently under a three-year contract with the City of Chula Vista to begin the ramp-up of the facility to prepare for incoming clients as early as January 2023. PLHA Page 2 302(c)(4) Plan Exhibit 1 Resolution No. 2024-162 Page No. 5 Docusign Envelope ID: 94975AF2-7FEF-44A9-95E0-887E8F496F09