REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 14, 2022
FROM
SUPRIYA BARROWS, Deputy Executive Officer, Community Development and Housing Department
SUBJECT
Title
Resolution and Amendment to the California Department of Housing and Community Development Standard Agreement for the Permanent Local Housing Allocation Program
End
RECOMMENDATION(S)
Recommendation
1. Adopt Resolution amending Resolution No. 2020-139, as required by the California Department of Housing and Community Development, authorizing the Chairman of the Board of Supervisors, Chief Executive Officer, Deputy Executive Officer of Community Revitalization, or Director of Community Development and Housing Department to execute the Permanent Local Housing Allocation Program documents on behalf of San Bernardino County.
2. Authorize Amendment No. 1 to Contract No. 21-49 (State Agreement No. 20-PLHA-15185), increasing the award by $5,376,577, from $3,459,141 up to the maximum amount of $8,835,718, for the Permanent Local Housing Allocation Program.
3. Authorize the Chairman of the Board of Supervisors, Chief Executive Officer, Deputy Executive Officer of Community Revitalization, or the Director of Community Development and Housing Department to execute any ancillary documents, including any non-substantive amendments necessary, on behalf of San Bernardino County, in relation to the Permanent Local Housing Allocation Program, subject to review by County Counsel.
4. Direct the Director of Community Development and Housing Department to transmit all grant award documents and amendments in relation to the Permanent Local Housing Allocation Program to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Supriya Barrows, Deputy Executive Officer, 387-4717)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Create, Maintain and Grow Jobs and Economic Value in the County.
Provide for the Safety, Health, and Social Service Needs of County Residents.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
This item does not impact Discretionary General Funding (Net County Cost). The grant amount of $8,835,718 is administered by the State of California Department of Housing and Community Development (HCD) and does not require a match. Adequate appropriation and revenue have been included in the Community Development and Housing Department’s (CDH) 2022-2023 recommended budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
On July 14, 2020 (Item No. 22), the Board of Supervisors (Board) approved the submission of the application to HCD and adopted Resolution No. 2020-139 (Resolution), certifying that the County of San Bernardino (County) is authorized and directed to receive a grant in an amount not to exceed the five-year estimate of the formula allocations derived by the State of $20,754,846. Approval of the item accepted the PLHA Program grant award, authorized execution of the agreement and delegated authority to the Director of CDH to execute any ancillary documents, including any non-substantive amendments necessary on behalf of the County, in relation to the PLHA Program, subject to review by County Counsel.
Adoption of the amended Resolution will amend section seven of Resolution No. 2020-139 to allow the Chairman of the Board, Chief Executive Officer, , Deputy Executive Officer of Community Revitalization or Director of Community Development and Housing Department to execute the Permanent Local Housing Allocation (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 PLHA Program or the PLHA grant awarded to San Bernardino County, as HCD may deem appropriate, subject to County Counsel review.
Approval of this item also accepts PLHA Program grant award (round 2). The California Legislature has recognized the critical need for funding at the local level to implement plans to increase the total number of affordable housing units. The PLHA Program was designed to be very flexible to allow local governments to target funding based on regional needs. The PLHA program makes funding available for housing related projects and programs that assist in addressing the unmet housing needs of the County. The PLHA Program is to provide a permanent source of funding to help the County increase the supply of housing for households at or below 60% of Area Median Income (AMI).
Funds can be used for the following eligible use categories:
a. 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.
b. 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% of AMI, or 150% of AMI in high-cost areas.
c. Matching portions of funds placed into Local or Regional Housing Trust Funds.
d. Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund.
e. Capitalized Reserves for services connected to the preservation and creation of new permanent supportive housing.
f. Assisting persons who are experiencing or at-risk of homelessness, including, but not limited to, providing rapid re-housing, 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.
g. Accessibility modifications in lower-income owner-occupied housing.
h. Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments.
i. Homeownership opportunities, including, but not limited to, down payment assistance.
j. Fiscal incentives made by a county to a city within the County to incentivize approval of one or more affordable housing projects.
On January 26, 2021 (Item No. 29), the Board approved Contract No. 21-49, State Agreement No. 20-PLHA-15185, of round 1 funds from HCD in the amount of $3,459,141 for the PLHA funding for a term commencing fiscal year 2020-21 and running through June 30, 2030. The County was eligible to receive an amount not to exceed the five-year formula allocation estimate of $20,754,846. The five-year estimate of funds to be received by the County is derived by multiplying the first-year allocation amount by five (the number of years of annual allocation for the program) and adding a 20% cushion to the cumulative allocation amount.
CDH and the County Administrative Office will continue to evaluate submissions for affordable housing developments that align with and support the County’s Homeless Strategic Action Plan, and will return to the Board to recommend future projects.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on May 23, 2022; Finance (Christopher Lange, Administrative Analyst, 386-8393) on May 31, 2022; and County Finance and Administration (Cheryl Adams, Deputy Executive Officer, 388-0238) on May 31, 2022.